The Trade Desk Shares Plunge After Revenue Miss
The Trade Desk shares fell up to 25% after the company missed revenue expectations and issued weak third-quarter guidance.
Shares of The Trade Desk Inc. dropped between 21.5% and 25% in after-hours trading following a second-quarter financial report that missed revenue targets and provided disappointing future guidance. The company reported revenue of $715 million, falling short of the $752.61 million consensus estimate, although earnings per share of $0.34 exceeded analyst expectations of $0.18.
Investor concern intensified as the company issued third-quarter revenue guidance of $650 million, a figure significantly lower than the market expectation of approximately $804 million to $805 million. CEO Jeff Green attributed the results to a complex environment for marketers, stating the quarter did not meet the company's internal standards.
Despite the financial miss, the company maintained a customer retention rate above 95%. The Trade Desk announced new integrations with partners including Uber, United Airlines, and Booking.com, and appointed several new executives. Green stated the company is taking action to upgrade its platform and strengthen execution to better support the shift of media budgets toward the open internet.
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