The Trade Desk10 Nov 2023 17:13
As you know, The Trade Desk sp took a right knock following their earnings call last night.
Jeff Green, Trade Desk’s CEO, said on the earnings call that “starting about the second week of October, we began to see some transitory cautiousness around certain advertisers.”
“We saw some reduction in brand spend in verticals such as automotive and consumer electronics, for instance, specifically around cell phones and media and entertainment,” Green said. “Some of these industries have been recently impacted by strikes, such as the U.S. auto industry.”
While most independent ad-tech companies have struggled to compete with Google’s systems, Trade Desk has built a business, valued at $38 billion prior to its earnings report, largely by helping companies shift ad budgets from traditional television to the connected TV market.
Green said that spend “stabilized” in the first week in November, and “we’re very confident that we will continue to outpace our industry.”
He added that the company’s “business is largely based on the world’s largest brands,” which means “if there is a little caution due to macro uncertainty facing everyone, we, of course, won’t be immune from that in the short term.”
Trade Desk said third-quarter sales jumped 25% from $493 million a year earlier. Net income increased to $39 million, or 8 cents a share, from $16 million, or 3 cents, a year earlier.
The stock fell to $53.49 in extended trading after closing on Thursday at $76.81. Prior to the after-hours move, the shares were up 71% for the year.
Meta, Snap and Pinterest all noted a softening of the digital advertising market in their latest earnings reports due in part to the Israel-Hamas war.
Susan Li, Meta’s chief financial officer, said the company widened its guidance because of unpredictability surrounding the Middle East Crisis, while Snap said it would not provide official guidance “due to the unpredictable nature of war.”
It doesn't bode well for me. My senses guide me to ask the question...why would Tremor prepare for another buyback if the outlook was good. That is mutually exclusive.
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