The adtech firm missed Q2 revenue estimates and issued disappointing Q3 guidance, triggering a 20% stock drop.
The Trade Desk’s stock plunged nearly 20% to its lowest level since 2019 after reporting Q2 revenue of $715 million, up just 3% year-over-year and below analysts’ $753 million estimate. Adjusted earnings per share fell 17% to $0.34, also missing expectations of $0.18.
The company’s guidance for Q3 revenue of $650 million fell far short of the $807 million consensus, compounding concerns after a streak of disappointing results. The Trade Desk had previously missed its own guidance for the first time in 33 quarters last year, citing execution missteps.
Wall Street responded with a wave of downgrades and price target cuts, reflecting dimming growth prospects in the adtech sector.