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Jeff Green, CEO, the Trading Desk
Scott Mlyn | CNBC
The Trade Bureau Shares fell about 30% in after-hours trading Thursday after the ad tech company issued fourth-quarter revenue guidance that fell far short of analyst estimates.
Third quarter results exceeded expectations. Here’s how the company did it:
- Profit per share: 33 cents, adjusted versus 29 cents expected by LSEG, formerly known as Refinitiv
- Gain: $493 million versus $487.04 million expected by LSEG
For the December period, Trade Desk forecast revenue of at least $580 million, lower than the $610 million analysts expected, LSEG said.
The company gave no reason for the shortage.
Trade Desk said revenue rose 25% in the third quarter, compared to $493 million a year earlier. Net income rose to $39 million, or 8 cents per share, from $16 million, or 3 cents, a year earlier.
“This achievement underscores the value advertisers place on precision, flexibility and transparency as they seek to maximize returns from their campaigns,” CEO Jeff Green said in a statement.
The stock fell to $53.49 in extended trading after closing at $76.81 on Thursday. Before the after-hours move, shares were up 71% this year.
Trade Desk’s technology helps brands reach relevant potential customers via the Internet and has taken off in the world of streaming and online video. While most independent ad tech companies struggle to compete with Google’s systems, Trade Desk has built a business valued at $38 billion prior to earnings reporting, largely by helping companies shift their advertising budgets from traditional television to the market for connected TV.
Meta, Snap And Pinterest all pointed to a weakening of the digital advertising market in their latest earnings reports, partly due to the war between Israel and Hamas.
Meta Chief Financial Officer Susan Li said the company expanded its guidance due to the unpredictability surrounding the Middle East crisis, while Snap said it would not provide official guidance “due to the unpredictable nature of war.”
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