Trade Desk IncTTD
▼ NegativeCapitalrelevance
Weak Q2 revenue and Q3 guidance below expectations
Impact on stocks 3
Communication Services
Trade Desk Inc
Publicis Groupe SAPUB
Mentioned
Artificial Intelligence
ServiceNow IncNOW
Mentioned
The Trade Desk shares plunged 21.9% on Friday, making the company the S&P 500's worst performer, after a weak second-quarter report turned a long-running agency dispute into a harder question about the durability of its business model. Revenue increased just 3% to $715 million, below Wall Street's approximately $753 million estimate and the company's prior outlook of at least $750 million. The third-quarter forecast was more damaging, with management expecting revenue of at least $650 million, compared with the roughly $807 million analysts had expected, and adjusted EBITDA of approximately $160 million. At the $650 million guidance floor, third-quarter revenue would decline approximately 12% year over year. The central question is no longer whether The Trade Desk can repair its relationship with Publicis, as the companies have already reconciled, but whether weaker spending from existing clients reflects temporary execution problems or a loss of leverage with agencies and advertisers.
Trade Desk IncWeak Q2 revenue and Q3 guidance below expectations
Publicis Groupe SAServiceNow Inc