TTD stock surged more than 25% in after-hours trading Wednesday following The Trade Desk’s release of first-quarter earnings that beat Wall Street expectations, breathing new life into investor confidence in the digital advertising market.
The Ventura, California-based adtech firm reported revenue of $491 million for Q1 2025, a 28% year-over-year increase, surpassing analysts’ estimates of around $480 million. Net income also came in strong, with adjusted earnings per share at $0.34, comfortably beating the projected $0.29. The company credited growing demand for programmatic advertising and continued adoption of its platform, Solimar, for the better-than-expected performance.
“We’re seeing the flywheel effect of our investments,” said CEO Jeff Green during the earnings call. “As marketers seek more transparency and value from their ad spend, The Trade Desk continues to emerge as a trusted partner.” Green added that political ad spending ahead of the 2024 U.S. elections and momentum in connected TV (CTV) campaigns were major contributors to growth this quarter.
TTD stock has had a turbulent ride over the past year, reflecting broader volatility in the tech sector and investor uncertainty around digital ad trends. However, Wednesday’s results seemed to reassure shareholders that The Trade Desk remains well-positioned in the evolving ad landscape. The company’s focus on data-driven ad placements and its rejection of traditional tracking methods in favor of its proprietary identity framework, UID2, have helped set it apart from competitors such as Google and Meta.
Analysts responded positively to the news. “The Trade Desk is proving its staying power in a market that’s in transition,” said Tom Forte, senior research analyst at D.A. Davidson. “This isn’t just a one-quarter pop—it shows fundamental strength and disciplined execution.”
Year to date, TTD stock had lagged behind broader tech indexes, but this earnings surprise may shift sentiment. The company also offered optimistic guidance for Q2, expecting revenue between $535 million and $545 million, again ahead of consensus estimates.
Despite broader macroeconomic uncertainties—including interest rate fluctuations and shifts in consumer behavior—The Trade Desk’s performance underscores renewed confidence in digital advertising’s rebound. As brands pivot toward measurable, performance-driven campaigns, platforms like The Trade Desk could continue gaining market share.
With TTD stock climbing and sentiment turning bullish, all eyes will be on whether the adtech company can maintain momentum into the second half of 2025. If trends in connected TV, retail media, and first-party data targeting continue to grow, The Trade Desk could be among the biggest beneficiaries in the next digital advertising wave.
