The Trade Desk shares plunged almost 28% in afterhours trade on Thursday as weak revenue guidance overshadowed an earnings beat for the third quarter.
The digital marketing company guided fourth quarter revenue of at least $580 million. Wall Street analysts were expecting revenue of $612.8 million.
For 3Q, The Trade Desk reported a 25% year-over-year increase in revenue from $395 million to $493 million, above forecasts of $486.9 million.
Its adjusted earnings per share of $0.33 grew from $0.26 in 3Q 2022 and topped estimates of $0.29.
Customer retention was 95% for 3Q, as it has been for the past nine consecutive quarters.
“This performance underlines the premium that advertisers are placing on precision, agility and transparency as they seek to maximize returns from their campaigns,” The Trade Desk CEO Jeff Green said in a statement.
“As we enter our busiest time of year and look ahead to 2024, we have never been in a better position to capture greater share of the $1 trillion advertising total addressable market.”
The Trade Desk shares fell 27.9% to US$55.35 shortly following the release of its earnings report.
Contact the author at emily.jarvie@proactiveinvestors.com
Follow her on X, formerly known as Twitter, @emilyjjarvie