The Trade Desk Reports Q3 Revenue of $739 Million, 18% Growth but Slowing Momentum
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6h ago
0mins
Source: NASDAQ.COM
- Slowing Revenue Growth: The Trade Desk reported Q3 revenue of $739 million, reflecting an 18% year-over-year growth, which is a deceleration from 19% in Q2 and 26% for the full year of 2024, indicating challenges in the advertising technology sector.
- Stable Customer Retention: Despite the pressures, The Trade Desk maintained a customer retention rate above 95%, extending an impressive streak of 11 consecutive years, which underscores the resilience of its core business.
- Share Repurchase Program: The company announced an additional $500 million share repurchase authorization in Q3, having already repurchased $310 million worth of shares, aimed at enhancing shareholder value amidst declining stock prices.
- Valuation Risks: Even after a 74% drop in stock price, The Trade Desk's price-to-earnings ratio remains at 42, significantly higher than other fast-growing tech firms, highlighting a disconnect between market expectations for future growth and the current slowdown in revenue growth.
Analyst Views on TTD
Wall Street analysts forecast TTD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TTD is 59.68 USD with a low forecast of 39.00 USD and a high forecast of 90.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
25 Analyst Rating
15 Buy
9 Hold
1 Sell
Moderate Buy
Current: 36.820
Low
39.00
Averages
59.68
High
90.00
Current: 36.820
Low
39.00
Averages
59.68
High
90.00
About TTD
The Trade Desk, Inc. is a global advertising technology company. The Company offers a self-service, cloud-based ad-buying platform that empowers its clients to plan, manage, optimize and measure more expressive data-driven digital advertising campaigns. Its platform allows clients to execute integrated campaigns across ad formats and channels, including connected television (CTV) and other video, display, audio, and native, on a multitude of devices, such as televisions, streaming devices, mobile devices, computers and digital-out-of-home devices. Its platform’s integrations with inventory, publisher and data partners provide ad buyers reach and decisioning capabilities, and its enterprise application programming interfaces (APIs) enable its clients to customize and expand platform functionality. Its platform provides auto-optimization features that allow buyers to automate their campaigns and support them with computer-generated modeling and decision-making.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
