The Trade Desk Stock Drops Sharply Following Q4 Revenue Miss and Slower Growth Outlook
The adtech leader reported lower-than-expected Q4 revenue and issued cautious guidance for Q1, raising concerns about growth deceleration and market competition.
- The Trade Desk's Q4 2024 revenue reached $741 million, a 22% year-over-year increase but below analysts' expectations of $759 million.
- The company's Q1 2025 revenue guidance of $575 million reflects a growth rate of 17%, marking continued deceleration and falling short of consensus estimates of $582 million.
- CEO Jeff Green acknowledged internal challenges, including a slower rollout of the Kokai platform and a significant sales reorganization, contributing to the Q4 revenue shortfall.
- Despite the disappointing quarter, The Trade Desk maintained a 95% customer retention rate for the eleventh consecutive year and processed a record $12 billion in ad spend in 2024.
- The stock dropped over 27% following the earnings report, with analysts expressing concerns about intensifying competition and the company's ability to sustain its leadership in the connected TV adtech space.
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