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The Trade Desk (NASDAQ:TTD) just delivered a knockout quarter, sending its stock up nearly 21% at 12.32pm today. Revenue hit $616 millionup 25% year-over-yearwhile adjusted earnings per share came in at $0.33, crushing Wall Street's $0.25 forecast. But the real number that matters? GAAP earnings were just $0.10 per share, a reminder that the earnings beat was heavily adjusted. CEO Jeff Green emphasized The Trade Desk's unwavering 95% customer retention rate, a streak it's held for eleven straight years despite market turbulence driven by renewed tariffs.
But not all the news was rosy. Management's Q2 guidance forecasts $682 million in revenuea beat on expectations but a slowdown to just 16.6% growth. For a stock trading at a sky-high 89-times earnings, that kind of deceleration could spark some tough questions about valuation. The stock's sharp rise today might signal optimism around its client retention and earnings beat, but with ad spending in flux, can The Trade Desk keep up the pace?
Investors now face a pivotal decision: Does The Trade Desk's long-standing client loyalty and CEO Green's bullish outlook justify its steep valuation? Or will the market reprice its premium as growth slows?
This article first appeared on GuruFocus.