Trade Desk shares plunge about 30% after ad-tech company issues weak guidance


Jeff Green, CEO, The Trade Desk

Scott Mlyn | CNBC

The Trade Desk shares plunged about 30% in after-hours trading on Thursday after the ad-tech company issued fourth-quarter revenue guidance that fell well short of analysts’ estimates.

Third-quarter results topped estimates. Here’s how the company did:

  • Earnings per share: 33 cents, adjusted vs. 29 cents expected by LSEG, formerly known as Refinitiv
  • Revenue: $493 million vs. $487.04 million expected by LSEG

For the December period, Trade Desk projected revenue of at least $580 million, trailing the $610 million that was expected by analysts, according to LSEG.

The company didn’t provide a reason for the shortfall.

Trade Desk said third-quarter sales jumped 25% from $493 million a year earlier. Net income increased to $39 million, or 8 cents a share, from $16 million, or 3 cents, a year earlier.

“This performance underlines the premium that advertisers are placing on precision, agility 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 on Thursday at $76.81. Prior to the after-hours move, the shares were up 71% for the year.

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