In This Article:
Trade Desk (NASDAQ:TTD) reported first-quarter revenue of $616 million, up 25% year-over-year and topping the $576.1 million consensus. Adjusted EBITDA came in at $208 millionwell above the $147.8 million estimatedelivering a 34% margin versus Street's 33%.
Net income rose to $50.8 million, or $0.10 per share, versus $31.7 million ($0.06) a year earlier, while adjusted EPS of $0.33 beat expectations by $0.08. Customer retention remained north of 95%, underscoring sticky demand even amid macro volatility.
CEO Jeff Green said KokaiTrade Desk's AI-powered platform adopted by two-thirds of clientsis cutting costs by 24% per conversion and 20% per acquisition, driving major deals in programmatic advertising. Wedbush-style strategic upgrades rolled out in Q4 also fueled momentum, with the company eyeing full Kokai adoption by year-end.
For Q2, Trade Desk expects at least $682 million in revenue and about $259 million in adjusted EBITDA, slightly above consensus of $680.7 million and $254.6 million. The guidance suggests continued strength in AI-enabled targeting and platform leverage.
Why It Matters: Trade Desk's robust metrics and full-year roadmap highlight AI's rising role in adtech and could signal sustained outperformance for software-focused semiconductors.
Investors will watch Q2 resultsdue later this yearfor proof that Kokai can drive the next leg of growth.
This article first appeared on GuruFocus.