The Trade Desk Stock Declines Post Earnings Report: An Overview

The Trade Desk Inc (NASDAQ: TTD) shares have experienced a decline after the company released its financial results for the third quarter after market hours on Thursday. Here are the key highlights from the earnings report.

Financial Results Summary

• Q3 Revenue: $628 million, surpassing estimates of $619.85 million

• Q3 Adjusted EPS: 41 cents, exceeding expectations of 39 cents

In comparison to last year, The Trade Desk reported a total revenue growth of 27% year-over-year. The company also emphasized strong customer retention, maintaining a rate of over 95% in the third quarter.

“The Trade Desk achieved remarkable performance in the third quarter, reporting revenue of $628 million, which represents an acceleration in growth of 27%. This result showcases the value advertisers find in our precision and transparency while working to optimize their campaign impacts,” stated Jeff Green, co-founder and CEO of The Trade Desk.

Looking Ahead

As the company prepares for its busiest season and plans for 2025, Green mentioned that they are positioned better than ever to capture a more significant share of the $1 trillion advertising Total Addressable Market (TAM).

During the quarter, The Trade Desk repurchased $54 million worth of its common stock. As of September 30, the company still had $521 million available for further buybacks. The firm's cash and equivalents totaled $1.22 billion at the end of the quarter.

Future Guidance

For the fourth quarter, The Trade Desk anticipates revenue to be at least $756 million, slightly above forecasts of $749.78 million from analysts according to Benzinga Pro. The expected fourth-quarter adjusted EBITDA is around $363 million.

“Many top media companies are collaborating with us to help clients fully leverage the value of Connected TV (CTV) advertising through programmatic solutions. We are also excited about the growth in retail media and how advertisers are rapidly adopting our retail data marketplace. The performance enhancements that clients are experiencing with Kokai, our most significant platform upgrade to date, highlight the importance of audience-driven and AI-enabled innovations,” Green added.

Market Reaction

Following the earnings announcement, The Trade Desk shares dropped by 10.10% in after-hours trading, reaching $119.15.

Photo: Pixabay.

TradeDesk, Stock, Earnings