Trade Desk's stock melts down as earnings outlook disappoints

By Emily Bary

Earnings for latest quarter beat expectations

Trade Desk Inc. shares tanked 28% in after-hours trading Thursday after the advertising-technology company missed the mark with its holiday-quarter forecast, even as results for the latest quarter beat expectations.

The company reported third-quarter net income of $39 million, or 8 cents a share, compared with $16 million, or 3 cents a share, in the year-prior quarter. On an adjusted basis, Trade Desk (TTD) recorded 33 cents in earnings per share, while analysts tracked by FactSet were modeling 29 cents.

Revenue rose to $493 million from $395 million, whereas analysts were looking for $487 million. Revenue growth accelerated to 25% in the third quarter from 23% in the second quarter.

Opinion: Disney CEO Bob Iger is getting his hands dirty as he focuses on studio woes -- will be it enough?

"This performance underlines the premium that advertisers are placing on precision, agility and transparency as they seek to maximize returns from their campaigns," Chief Executive Jeff Green said in a release.

For the fourth quarter, Trade Desk anticipates at least $580 million in revenue, while the FactSet consensus was for $610 million. The company is also looking for about $270 million in adjusted earnings before interest, taxes, depreciation and amortization, while analysts were expecting $291 million.

Results from Trade Desk come just about a week after Roku Inc. (ROKU) posted earnings and offered commentary that indicated some rebound in the video-advertising market.

Read: Disney may be on the 'precipice' of real change for investors

Trade Desk shares have advanced 71% so far this year.

-Emily Bary

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

11-09-23 2110ET

Copyright (c) 2023 Dow Jones & Company, Inc.