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Trade Desk Sinks as Q2 Outlook Disappoints Despite Revenue Beat

Analysts warn growth could slow due to strained agency ties.

Overview

  • Trade Desk shares fell about 15% in Friday premarket trading after mixed first‑quarter results and a weak second‑quarter outlook.
  • Q1 adjusted EPS was 28 cents, below the 32‑cent estimate, and revenue was $689 million, above forecasts, with customer retention staying above 95%.
  • Management guided second‑quarter revenue to at least $750 million and projected about $260 million in adjusted EBITDA, trailing the roughly $771 million revenue consensus.
  • KeyBanc, Oppenheimer and William Blair cut their ratings after the release, citing weak guidance, tougher competition and signs of market‑share loss.
  • Publicis said in March an independent audit found Trade Desk did not pass and it stopped recommending the platform, a blow given how much ad spend flows through big agency groups.