Shares of The Trade Desk (NASDAQ:) are down almost 5% in premarket trading Wednesday after the company’s Q2 forecast missed estimates.

TTD Q1 adjustedEPS of 21c beat consensus estimates of 15c. The revenue came in at $315million, an increase of 43% YoY. This was higher than the analyst’s expectations of $304.2 million.

The company anticipates an adjusted EBITDA figure of $121 million for Q2, which is less than the $127.1 million expected. Revenues are expected to reach $364 million. This is lower than the estimate of $365.1 Million.

“With this innovation focus, along with strong growth across all channels, led by CTV, we are reinforcing our position as the default demand-side platform for the open internet,” the company said in a press release.

Raymond James analyst Andrew Marok reiterated a Market Perform rating as TTD is “fairly valued” at current levels.

“The 2H22 setup is encouraging for the company, with political spend shaping up to be a solid contributor to both top line and EBITDA, though macro worries (which contributed to some weakness in Europe around the start of the Russia/Ukraine conflict) are weighing on the space more broadly. In all, 1Q was a solid if not spectacular quarter,” Marok said in a client note.

After earnings, Justin Patterson of KeyBanc is more optimistic than Marok about TTD stock. He sees risk-reward as “more compelling”.

“We see several positive trends playing out: 1) CTV becoming a larger % of the business, with Europe inflecting (>100% y/y growth); 2) OpenPath driving broad publisher and UID2 adoption; and 3) retail media and political remaining 2H catalysts. While bears may be skeptical of 2Q guidance, we believe share gains support 30% y/y growth,” Patterson wrote in a note.

By Senad Karaahmetovic