The Trade Desk Stock Tanks Following Q3 Performance And Outlook - Here's Why

The Trade Desk, Inc. TTD shares are trading lower in Thursday's after-hours session after the company reported third-quarter earnings. Here's a look at the numbers.

What To Know: The Trade Desk reported quarterly earnings of 33 cents per share, beating the analyst consensus estimate of 29 cents, a 26.92% increase over earnings of 26 cents per share from the same period last year.

The company posted quarterly sales of $493.27 million, which topped the analyst consensus estimate of $487.16 million, a 24.95% increase over sales of $394.77 million in the same period last year.

Customer retention held over 95% during the quarter, a figure which the company has maintained over the past nine consecutive years.

The Trade Desk anticipates fourth-quarter revenue to be $580 million versus the $610.82 million estimate. Adjusted EBITDA is expected to be approximately $270 million.

The company did not provide GAAP or Non-GAAP net income outlook due to the variability and complexity with respect to the stock-based compensation expenses that are directly impacted by unpredictable fluctuations in share price. 

The company said it expects the variability of the above charges could have a significant and potentially unpredictable impact on future GAAP results.

"Q3 was a strong quarter for The Trade Desk as we delivered revenue of $493 million, accelerating growth to 25%. This performance underlines the premium that advertisers are placing on precision, agility and transparency as they seek to maximize returns from their campaigns," said Jeff Green, Co-founder and CEO.

"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 TAM. With the generational shift to CTV, the growing opportunity in shopper marketing, our leadership in identity, and our most important product release ever with Kokai, we are better positioned than ever to help advertisers leverage data to drive growth and differentiate their brands."

TTD Price Action: Shares of TTD were down 27.1% at $56.01 in the after-hours session at the time of publication, according to Benzinga Pro. 

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