Trade Desk Inc. shares tanked 28% in after-hours trading Thursday after the advertising-technology company missed the mark with its holiday-quarter forecast, even as results for the latest quarter beat expectations.
The company reported third-quarter net income of $39 million, or 8 cents a share, compared with $16 million, or 3 cents a share, in the year-prior quarter. On an adjusted basis, Trade Desk
recorded 33 cents in earnings per share, while analysts tracked by FactSet were modeling 29 cents.
Revenue rose to $493 million from $395 million, whereas analysts were looking for $487 million. Revenue growth accelerated to 25% in the third quarter from 23% in the second quarter.
“This performance underlines the premium that advertisers are placing on precision, agility and transparency as they seek to maximize returns from their campaigns,” Chief Executive Jeff Green said in a release.
For the fourth quarter, Trade Desk anticipates at least $580 million in revenue, while the FactSet consensus was for $610 million. The company is also looking for about $270 million in adjusted earnings before interest, taxes, depreciation and amortization, while analysts were expecting $291 million.
Trade Desk shares have advanced 71% so far this year.