The Trade Desk Q2 Earnings: Stock Slumps Despite Beating Expectations and Raised Guidance

The Trade Desk, Inc.  TTD shares are trading lower in Wednesday's after-hours session after reporting second-quarter earnings.

What To Know: The Trade Desk reported quarterly earnings of 28 cents per share which beat the analyst consensus estimate of 26 cents, a 40% increase over earnings of 20 cents per share from the same period last year. 

The company reported quarterly sales of $464.25 million, which beat the analyst consensus estimate of $455.00 million, a 23.16% increase over sales of $376.96 million in the same period last year.

TTD sees third-quarter 2023 revenue of approximately $485 million versus the $479.61 million estimate.

The Trade Desk also reported that customer retention remained over 95% during the second quarter, as it has for the past nine consecutive years.

"Q2 marked another quarter of outstanding execution and share gains for The Trade Desk, delivering $464 million of revenue and 23% growth. With advances in areas such as CTV, retail and identity, we are helping the world's largest brands buy media on the open internet with more precision and transparency than ever," said Jeff Green, Co-founder and CEO of The Trade Desk.

"With the launch of Kokai, we are surfacing that value more intuitively and putting data next to every decision. We are helping our clients put their first-party data to work, we're making it easier for partners to integrate with us, and we're helping clients get the full value of AI as a co-pilot across many aspects of the campaign process. As a result of these innovations, I'm confident we will continue to gain share, especially in key growth markets such as CTV."

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TTD Price Action: Shares of TTD were down 5.61% at $76.39 in the after-hours session at the time of publication, according to Benzinga Pro.

Image by Photo Mix from Pixabay