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Mar 31

Trade Desk Q1 2025 Earnings Report

The Trade Desk reported strong financial performance with significant revenue growth and healthy profitability in Q1 2025.

Key Takeaways

The Trade Desk delivered robust results in Q1 2025, with 25% year-over-year revenue growth, high customer retention, and solid gains in both GAAP and non-GAAP profitability.

Revenue grew 25% year-over-year to $616 million.

GAAP Net Income was $51 million with a margin of 8%.

Adjusted EBITDA reached $207.875 million with a 34% margin.

Customer retention stayed above 95% for the eleventh consecutive year.

Total Revenue
$616M
Previous year: $491M
+25.4%
EPS
$0.33
Previous year: $0.26
+26.9%
Adjusted EBITDA
$208M
Previous year: $162M
+28.5%
Adjusted EBITDA Margin
34%
Previous year: 33%
+3.0%
Net Income Margin
8%
Previous year: 6%
+33.3%
Cash and Equivalents
$1.12B
Previous year: $918M
+21.8%
Total Assets
$5.71B
Previous year: $4.66B
+22.3%

Trade Desk

Trade Desk

Forward Guidance

For Q2 2025, The Trade Desk expects continued strong growth with revenue of at least $682 million and Adjusted EBITDA around $259 million.

Positive Outlook

  • Revenue expected to exceed $682 million.
  • Adjusted EBITDA guidance at $259 million.
  • Momentum from strategic Q4 upgrades continues into Q2.
  • Strong customer demand on the open internet.
  • Ongoing expansion of identity and publisher solutions.

Challenges Ahead

  • No GAAP net income guidance provided due to variability in stock-based compensation.
  • Macroeconomic volatility remains a factor.
  • Limited visibility on long-term impacts of recent acquisitions.
  • Integration costs from Sincera acquisition may weigh on margins.
  • Dependency on rapid adoption of new identity standards like UID2.