Trade Desk forecasts downbeat quarterly revenue, shares fall
Trade Desk forecasts downbeat quarterly revenue, shares fall Aug 6 (Reuters) - Ad-tech firm Trade Desk TTD.O on Thursday forecast third-quarter revenue below Wall Street expectations, anticipating mounting pressure from larger rivals and cautious spending by advertisers, sending its shares down 22.5% in extended trading.
The company also missed estimates for second-quarter revenue and earnings.
Here are some details:
The company projected third-quarter revenue of $650 million, below analysts' average estimate of $805.1 million, according to data compiled by LSEG.
Trade Desk, an independent middleman that helps advertisers run campaigns on websites and apps, is looking to win broader adoption for its newer initiatives amid a highly competitive landscape.
Advertisers tightening marketing budgets and favoring larger platforms, including TikTok and Meta-owned META.O Facebook and Instagram, have put pressure on demand-side platform providers such as Trade Desk, which does not have its own ad inventory.
Trade Desk reported revenue of $715 million for the quarter ended June 30, missing estimates of $751.4 million.
Quarterly adjusted earnings came in at 34 cents per share, compared with estimates of 40 cents.
"This quarter did not meet the standard we set for ourselves," CEO Jeff Green said, adding that marketers are navigating a "complex environment".
French ad giant Publicis Groupe PUBP.PA in March advised its clients against using Trade Desk's platform for digital-media buying following an audit.
Amazon's AMZN.O demand-side platform has emerged as a key competitor for Trade Desk, leveraging its first-party shopper data to attract advertisers.
(Reporting by Arunesh Sinha; Editing by Shreya Biswas)
((Arunesh.Sinha@thomsonreuters.com;))