• by Wayne Friedman , Yesterday

A slowdown in first-quarter revenue growth at The Trade Desk -- and major competition from the Amazon DSP -- has analysts worried about its future prospects.

“We reiterate our sell thesis... as revenue decelerates,” said New Street Research Media Analyst Dan Salmon, with reference to the latest demand-side platform results.

Trade Desk quarterly revenues were up 12% to land at $689 million -- lower than the fourth quarter of 2025, which saw a 19% hike.

Following news of the first quarter, TTD executives during an earnings call gave second-quarter 2026 guidance of an 8% revenue gain year-over-year to around $750 million, due to ad market “headwinds.”

In previous recent earning periods, TTD regularly posted 20% to 30% or more in quarterly in revenue gains.

The company has credited the rising ad spend for its platform to brands' interest in the “open internet” placement of digital media advertising versus “walled garden” media sellers such as Meta Platforms and Google.

Salmon cited increasing competition of gross ad-spend billing going to the Amazon DSP -- as well as headwinds from larger automotive and consumer package goods brands that “are reevaluating their spend on The Trade Desk.”

He added that The Trade Desk can still win “tests” versus Amazon DSP, but lower-cost competition remains an issue.”

Company executives reiterated that video advertising -- especially connected TV (CTV) streaming platforms -- is sill driving business growth.

CTV now represents around a 50% to 52% share of TTD’s business, according to industry estimates, while mobile represents around 25% to 30%, display comprises 11% to 15%, and audio is around 6%.

On Thursday, Trade Desk shares fell 15% to $20.12 after the market closed and the company’s release of its first-quarter earnings.