This quarter's performance marked a significant improvement compared to the previous quarter's weak results, alleviating investor concerns.

The company's sales grew by 25%, driven by increased adoption of its open-internet tools and identity technology, including Kokai and UID2, by major publishers globally.

In Q1 2025, Trade Desk's revenue increased by 25% year-over-year, maintaining a customer retention rate of 95% and improving its adjusted EBITDA margin by approximately 100 basis points to 34%.

For Q2 2025, the company forecasts revenue of $682 million and an adjusted EBITDA of $259 million, slightly above consensus estimates, indicating continued growth expectations.

Despite today's gains, The Trade Desk's stock is down 40.2% year-to-date and remains 49.6% below its 52-week high of $139.51 from December 2024.

TTD stock has declined nearly 50% since the beginning of 2025, contrasting with a 3.5% decrease in the S&P 500 during the same timeframe.

The decline in TTD stock was influenced by a disappointing Q4 report and negative outlook shared in February 2025, which affected investor confidence.

The Trade Desk's stock has shown significant volatility, with 23 movements greater than 5% over the past year, indicating heightened market sensitivity to news about the company.

Recent bullish sentiment in the market was fueled by positive earnings reports from other tech firms, suggesting resilience in the sector despite macroeconomic uncertainties.

The current trading price of TTD stock at $68 reflects a price-to-sales (P/S) ratio of 14x, lower than its three-year average of 19x, suggesting potential for a strong rally.

Investors who purchased $1,000 worth of The Trade Desk shares five years ago would now see their investment grow to approximately $2,305.

Shares of The Trade Desk (NASDAQ: TTD) surged 17.4% following the release of strong first quarter 2025 results, which exceeded analysts' revenue and EBITDA estimates.