The Trade Desk (NASDAQ:TTD) reported third-quarter earnings that beat analyst estimates, but shares fell 7.9% as the results and guidance failed to surpass lofty market expectations.
The advertising technology company posted adjusted earnings per share of $0.41, exceeding the analyst consensus of $0.39. Revenue for the quarter came in at $628 million, up 27% YoY and above the $620.01 million estimate.
For the fourth quarter, The Trade Desk expects revenue of at least $756 million, slightly above the analyst consensus of $752.2 million. The company’s adjusted EBITDA guidance for Q4 stands at approximately $363 million.
“The Trade Desk delivered strong performance in the third quarter, with revenue of $628 million, accelerating growth to 27%,” said Jeff Green, Co-founder and CEO of The Trade Desk. “This performance underlines the value that advertisers are placing on precision and transparency as they work with us to maximize the impact of their campaigns.”
Despite the solid results and positive outlook, the 7% drop in share price suggests investors had set even higher expectations for the ad tech firm.
The company highlighted its continued success in customer retention, maintaining a rate of over 95% for the tenth consecutive year.
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