(Reuters) – Ad tech firm Trade Desk projected fourth-quarter revenue above Wall Street estimates on Thursday, boosted by strong demand for its digital advertising technologies in the growing connected TV and retail media markets.
Shares of the company, however, fell 8% in extended trading, signaling that Trade Desk’s growth failed to impress investors in what Evercore analysts predicted would be a “very high-bar quarter” for the company.
Trade Desk stock has surged 84% this year, having added more than 18% to its value in the past month alone, as strong earnings from Google-parent Alphabet, Reddit and Snap lifted expectations for digital ad firms.
Major events like the Paris Olympics and higher political ad spending ahead of the U.S. presidential elections had also driven up expectations for Trade Desk.
Trade Desk provides a platform for advertisers that grants access to a vast network of publishers and media partners across video, audio and retail channels, enabling improved targeted ad campaigns.
The company has partnerships with some of the biggest companies across industries, such as streamers Netflix, Disney+, Hulu and HBO+, as well as major retailers, including Walmart, Target, and Albertsons.
The company forecast revenue of at least $756 million for the fourth quarter, above analysts’ average estimate of $749.8 million, according to data compiled by LSEG.
Trade Desk reported a 27% jump in revenue to $628 million in the third quarter ended Sept. 30, beating expectations of $619.9 million. It posted a profit of 41 cents per share on an adjusted basis, compared with estimates of 39 cents per share.
(Reporting by Deborah Sophia in Bengaluru; Editing by Mohammed Safi Shamsi)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.