Trade Desk shares plummet on dour Q4 revenue forecast
(Reuters) -Trade Desk forecast fourth-quarter revenue below market expectations on Thursday, in a sign that an uncertain economy could weigh on demand for its digital advertising solutions, sending its shares down about 30% in extended trading.
The downbeat forecast is in contrast with ad industry majors such as Meta Platforms and Alphabet's Google, which benefited from higher advertising spending.
The company said on a post earnings call that in October it had seen a slowdown in ad spending from automakers and media companies impacted by the strikes.
Trade Desk is an ad-buying platform and has what it calls "a marketplace" of over 200 companies, including like ESPN, Hulu and Fox, where advertisers can choose to show their ads.
The ad tech firm expects fourth-quarter revenue of at least $580 million, compared with analysts' average estimate of $610.4 million, according to LSEG data.
Its revenue for the quarter ended Sept. 30 stood at $493.3 million, compared with analysts' estimate of $487 million.
On an adjusted basis, the company, which has partnerships with retailers such as Walmart, earned 33 cents per share in the third quarter. Analysts on average expected 29-cent-per-share profit.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Shilpi Majumdar)
