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The Trade Desk Tops Q3, Raises Q4 Outlook as Shares Whipsaw and Board OKs $500 Million Buyback

Investor skepticism persists despite improved profitability, with shares down about 59% this year.

Overview

  • The company reported Q3 earnings of $0.45 per share on revenue of $739.43 million, beating Wall Street forecasts.
  • Shares swung sharply after the release, jumping about 13% before reversing to nearly a 5% decline in after-hours trading.
  • Management guided for at least $840 million in Q4 revenue and projected adjusted EBITDA of roughly $375 million.
  • Profitability strengthened as adjusted EBITDA rose 23% to $317 million for a 43% margin, with net income at $116 million or $0.23 per share.
  • Customer retention stayed above 95%, and the board authorized a new $500 million share repurchase as the stock carries a Zacks Rank of #4 (Sell).