Trade Desk reported third-quarter earnings and revenue that edged by estimates as internet TV drove the digital advertising firm's growth. But the company's guidance for TTD stock came in well below views.
For the current quarter ending in December, Trade Desk said it expects earnings before interest, taxes, depreciation and amortization (EBITDA) of $270 million vs. estimates of $291 million. The company predicted revenue of $580 million at the midpoint of its forecast vs. estimates of $610.4 million.
"Management blamed the weaker-than-expected guide on a slowdown that happened in the second week of October," said Jefferies analyst James Heaney in a report. "The slowdown primarily impacted auto and consumer electronics, but also media and entertainment and some other large advertisers. Though TTD has seen stabilization in spend trends and is cautiously optimistic about the outlook, we worry that there could be additional budget cuts ahead."
The company reported September quarter earnings after the market close on Thursday. For the quarter ending Sept. 30, Trade Desk earnings rose 27% to 33 cents. Revenue for TTD stock climbed 25% to $493 million, the company said.
A year earlier, Trade Desk earnings were 26 cents a share on sales of $395 million. TTD stock analysts expected earnings of 29 cents a share on sales of $487 million, according to FactSet.
TTD Stock Tumbles On Outlook
The Ventura, Calif.-based company said EBITDA rose 22% to $200. Analysts estimated EBITDA of $189 million.
On the stock market today, TTD stock plunged 27.7% to 55.55 in early trading.
Heading into the Trade Desk earnings report, TTD stock had advanced 75% in 2023.
The company's automated platform enables brands and ad agencies to buy online and mobile ads in real time, rather than in advance. In addition, Trade Desk helps clients leverage online data to improve their targeted advertising.
Trade Desk stock holds a Relative Strength Rating of 96 out of a best-possible 99.
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