Investors of The Trade Desk faced a challenging 2025, as the company's stock declined 33% following a quarterly revenue miss. This marked the first underperformance in 33 quarters, raising concerns about its growth potential. However, the situation brightened with the Q1 2025 results, where revenue increased by 25% to $616 million, outshining expectations. This resurgence is attributed to the adoption of its AI-focused platform, Kokai, with management forecasted full client transition by end of the year, showing promise for clients' improved ad returns and a brighter market position for the company.
Investors of The Trade Desk have endured a terrible year, with the stock down 33% in 2025, first triggered when the company missed its own quarterly revenue in February.
However, positive trends are emerging in the company's Q1 2025 performance, fueled by the rising popularity of its artificial intelligence (AI)-focused programmatic ad platform.
The Trade Desk crushed expectations and expects to corner a bigger share of the digital ad market, with revenue jumping 25% from the year-ago period to $616 million.
Management pointed out on the latest earnings conference call that two-thirds of its clients are now using Kokai, and it expects all of its customers to use this AI-based platform by the end of the year.
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