The Trade Desk Q1 2023 Results

The Trade Desk released Q1 2023 results earlier. It was the usual beat on top and bottom line for the quarter and raised above expectations for Q2 guidance…

The Trade Desk: Q1

  • Non-GAAP EPS of $0.23 beats by $0.11.
  • Revenue of $382.8M (+21.4% Y/Y) beats by $18.47M.
  • Shares +8.5%.
  • Second Quarter 2023 outlook summary:
    • Revenue at least $452 million vs $445.63M consensus
    • Adjusted EBITDA of approximately $160 million

Of note:-
Growth rates were far ahead of other Ad and Ad tech companies with continued market share gain clearly on display
Non-GAAP profitability was a considerable beat against expectations
They were even GAAP profitable this quarter.
Operating Cashflow and Free Cash Flow were record highs
They even bought so much stock back that share count declined (QoQ)
Q1 and Q2 growth needs to consider like for like comparisons with / without political spend last year so Q2 guidance is for 20% headline growth and 21% ex political spend
They see visibility improving since the beginning of the year
Growth rates expected to accelerate through the year

The earnings call covered the usual mix of questions on “Walled Gardens”, SSP vs DSPs, AI and International growth.
UID2 continued to gain adoption
AI has been built into product development from the start

Overall - lots to like.

Here’s the release:

Here’s the presentation:

Here’s the transcript:


Here are some industry data that one should like:

  1. Digital Ad spending is expected to (almost) double by 2030.

  1. CTV Ad spending is expected to triple by 2030.


  1. Digital Ad spending is expected to rebound a bit in 2023.
  1. TTD revenues are growing nicely, albeit at a slower rate, despite the ad spending slowdown.

  1. TTD consistently delivers what it says it will deliver. Its revenue beats (from the midpoint of guidance) have been consistent.



  1. Adjusted EBITDA Guidance and results has been stellar.




When the digital advertising market turns back up, TTD is well positioned to accelerate revenues due to its focus and competitive position on CTV. Given the extremely long growth runway, TTD should turn in very good results for quite a long time.