Holiday-quarter forecast falls short while third-quarter earnings exceed expectations
- Trade Desk’s stock down over 25% in after-hours trading
- Holiday-quarter forecast disappoints
- Third-quarter earnings beat expectations
- Revenue growth accelerated to 25% in the third quarter
- Trade Desk anticipates lower revenue and earnings for the fourth quarter
Trade Desk Inc. shares took a nosedive of more than 25% in after-hours trading after the company’s holiday-quarter forecast failed to meet expectations. Despite beating expectations for the latest quarter, Trade Desk’s stock suffered a significant decline. The company reported a net income of $39 million, or 8 cents a share, for the third quarter, compared to $16 million, or 3 cents a share, in the same quarter last year. On an adjusted basis, Trade Desk recorded 33 cents in earnings per share, surpassing the estimated 29 cents. Revenue also saw growth, rising to $493 million from $395 million, with a 25% increase in the third quarter. However, Trade Desk’s fourth-quarter forecast fell short, with anticipated revenue of at least $580 million, lower than the expected $610 million. The company also expects adjusted earnings before interest, taxes, depreciation, and amortization to be around $270 million, below the estimated $291 million. This disappointing outlook comes after Roku Inc. posted positive earnings and indicated a rebound in the video-advertising market. Trade Desk shares have seen a 71% increase this year.
Factuality Level: 7
Factuality Justification: The article provides specific financial information about Trade Desk Inc.’s third-quarter net income, earnings per share, and revenue, which can be verified. However, it does not provide any sources for the information or include any analysis or context to support the claims made. The article also includes some opinion and speculation about Disney CEO Bob Iger and the video-advertising market, which may not be based on factual information.
Noise Level: 3
Noise Justification: The article provides relevant information about Trade Desk Inc.’s financial performance and forecasts. It includes quotes from the company’s CEO and compares the results to analysts’ expectations. However, there is some filler content at the beginning and end of the article, such as the mention of text-to-speech technology and the unrelated mention of Disney CEO Bob Iger.
Financial Relevance: Yes
Financial Markets Impacted: Trade Desk Inc.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article pertains to financial topics as it discusses the financial performance and forecast of Trade Desk Inc.
Public Companies: Trade Desk Inc. (TTD), Roku Inc. (ROKU)
Key People: Jeff Green (Chief Executive), Bob Iger (Disney CEO)
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