Shares of The Trade Desk Inc. (TTD) plummeted 27.19% in the 24 hours leading up to Wednesday's market close, following the company's disappointing Q4 2024 earnings report and weak Q1 2025 guidance.
For Q4 2024, The Trade Desk reported revenue of $741 million, missing analyst expectations of $758.9 million. While its adjusted earnings per share of $0.59 beat estimates of $0.57, the revenue miss overshadowed the earnings beat.
Additionally, the digital advertising company provided Q1 2025 revenue guidance of at least $575 million, lower than the analyst consensus estimate of $582 million. This weak guidance compounded investor concerns about the company's growth prospects.
In other news, The Trade Desk appointed Alex Kayyal, an experienced tech investor and former Salesforce executive, to its board of directors. Separately, prominent investor Baillie Gifford reduced its stake in the company by 9.14%, executing a sale of 3.5 million shares in Q4 2024.
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