Shares of The Trade Desk Inc. (TTD) plummeted 25.63% in the after-hours session on Wednesday, following the company's fourth-quarter earnings report that missed revenue expectations and disappointing guidance for the first quarter.
The digital advertising software company reported Q4 revenue of $741 million, falling short of the analyst consensus estimate of $758.9 million. While adjusted earnings per share of $0.59 beat expectations of $0.57, the revenue miss overshadowed the earnings beat.
Furthermore, Trade Desk provided weak guidance for the first quarter of 2025. The company projected Q1 revenue of at least $575 million, below the analyst estimate of $582 million. This disappointing guidance added to investor concerns about the company's growth prospects.