The Trade Desk’s quarterly profit falls to 38 million dollars
US advertising technology company The Trade Desk reported a sharp annual decline in third-quarter net income, while revenue slipped only slightly. Adjusted profitability also weakened. The board expanded the amount available for share repurchases to 1 billion dollars, and management issued fourth-quarter revenue and adjusted earnings forecasts after results for the quarter ended in September.
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Revenue slips in the third quarter
The Trade Desk, a US technology platform that helps advertisers buy digital advertising, reported a 0.5 per cent annual decline in third-quarter revenue. Adjusted diluted earnings per share were 0.33 dollars. The company released results on 9 November for the quarter that ended on 30 September.[1], [2]
Revenue was 736 million dollars, compared with 739 million dollars in the previous year’s third quarter. For the first nine months, revenue increased from 2.049 billion dollars to 2.140 billion dollars. Management said customer retention exceeded 95 per cent during the quarter, continuing a record lasting more than a decade.[1]
Net income and margins decline
Quarterly net income fell from 116 million dollars to 38 million dollars and the net margin declined from 16 per cent to 5 per cent. Adjusted earnings before interest, taxes, depreciation and amortization decreased from 317 million dollars to 266 million dollars. The corresponding margin fell from 43 per cent to 36 per cent. Adjusted net income declined from 221 million dollars to 155 million dollars.[1]
Board expands share repurchase authority
The board authorized another 731 million dollars of share repurchases, taking the available total to 1 billion dollars. Management forecast at least 755 million dollars in fourth-quarter revenue and at least 280 million dollars in adjusted earnings before interest, taxes, depreciation and amortization. The company withheld a net income forecast under accounting standards, citing variability in charges, particularly share-based compensation.[1]
