The Trade Desk shares plummet despite solid Q2
Shares of The Trade Desk, an advertising tech company based in Ventura, fell as much as 29% in after-hours trading on Aug. 7 following the company’s announcement of its second-quarter earnings.
Announced after the markets closed Aug. 7, net income for the company was $90 million for the quarter, up from $85 million in the second quarter of 2024.
The Trade Desk reported that revenue climbed 19% to $694 million for the quarter ended June 30. The mark was enough to beat Wall Street’s expectations of $685.5 million, according to FactSet.
Non-GAAP earnings per share also rose 5% to 41 cents per share, meeting analysts’ expectations of 41 cents, according to FactSet, which could have played a role in the stock’s fall in after-hours trading.
Shares closed at $88.33 on Aug. 7, down 1% from the open price. In after-hours trading, shares fell as low as 29% with the stock price at $62.68. Without factoring in the after-hours drop Aug. 7, shares of The Trade Desk are still down 25% since the start of the year, when shares opened at $117.73.
“The Trade Desk reported a solid quarter for revenue, but the beat was likely below investor expectations,” said RBC Capital analyst Matthew Swanson in a note to investors.
Another factor could be the company’s leadership shake-up, as The Trade Desk announced it will be appointing board member Alex Kayyal as its new CFO, effective Aug. 21. Kayyal previously held senior roles at Salesforce and Lightspeed Venture Partners.
Kayyal also succeeds Laura Schenkein, who is stepping down after more than a decade with the company but will be serving as an advisor through the end of the year.
“I could not be more excited to have Alex join our leadership team as CFO. He brings extensive experience and expertise in helping technology companies apply investment and financial strategies that drive significant scale and growth,” said The Trade Desk CEO Jeff Green. “As a current board member and early investor of The Trade Desk, I look forward to working with Alex so we can all leverage his growth mindset from a CFO perspective.”
The Trade Desk also appointed Omar Tawakol to its board of directors.
In regard to the second quarter, Green said he felt it was a strong one for The Trade Desk.
“The first half of 2025 has been defined by meaningful innovation across our platform. Kokai is helping advertisers drive better results by integrating more data into every decision, using AI as a co-pilot, and unlocking the full potential of first-party data,” Green said. “We’ve also made significant progress in CTV, retail media, and the supply chain, empowering the world’s largest brands and agencies to reach audiences across the open internet. “
The Trade Desk also issued third-quarter guidance of revenue of at least $717 million and adjusted EBITDA of approximately $277 million.
“Q3 guidance was more or less in line with consensus estimates for both adjusted EBITDA and revenue,” Swanson said.
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