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
TTD,
-2.57%
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.
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“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.
Results from Trade Desk come just about a week after Roku Inc.
ROKU,
-1.52%
posted earnings and offered commentary that indicated some rebound in the video-advertising market.
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Trade Desk shares have advanced 71% so far this year.
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