Key Points
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The Trade Desk’s revenue growth has slowed recently.
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Management guided for even slower growth in Q4.
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Tough comparisons due to political ad spend in 2024 have been negatively impacting the advertising technology company’s growth rates.
The Trade Desk (NASDAQ: TTD) reported third-quarter revenue of $739 million, up 18% year over year, a slowdown from 19% in Q2 and 26% for the full year of 2024. The company is facing challenges due to significant political ad spending expected in 2024, impacting growth rates. Management has guided for Q4 revenue of at least $840 million, equating to approximately 13% year-over-year growth.
Despite stock losses of around 74% from an all-time high of over $139, customer retention remains strong at above 95%. During Q3, The Trade Desk also authorized $500 million in share repurchases, having spent $310 million in Q3 alone. Adjusted for political spending, third-quarter revenue growth was 22% year over year, driven by the adoption of the AI-powered Kokai platform.
