Trade Desk Inc. (NASDAQ: TTD), says that it is a result of “a series of small execution mistakes” which prevented it from meeting its revenue expectations in the fourth quarter. It also predicts continued weakness for Q1.
In a press release issued today, it said that “many [missteps] are people errors which are inappropriate to be discussed publicly. This is especially true when people have already learned from their own mistakes.”
The company is taking the first revenue loss in over eight years very seriously.
Jeff Green, its CEO will share soon a 15 point action plan to fix what went wrong during Q4.
The stock of Trade Desk has fallen by nearly 30 percent following Thursday’s disappointing financial report.
Trade Desk sees a significant opportunity for JBPs
Trade Desk is leveraging joint business plans to improve its relationship with brands by 2025.
According to the chief executive, JBPs are a significant growth opportunity for this advertising technology firm. They tend to grow faster than its other businesses by around 50%.
Jeff Green highlighted connected television and audio advertising as two major pillars of future growth.
The former, while contributing significantly to TTD’s revenues, is only a small portion of the budget.
The Trade Desk share price is down by more than 35% from its peak in the first weeks of December.
TTD expects Sincara acquisition to drive growth
Trade Desk also committed to increasing the efficiency and transparency in the supply chain of advertising to reduce costs and improve the effectiveness of digital campaigns.
According to CEO Jeff Green, the company’s acquisition of Sincara metadata, which is expected to be completed in the first quarter 2025, falls in line with this effort.
The chief executive believes that Google’s antitrust problems will ultimately lead it to exit the open web, and this could benefit TTD, as they are competitors in programmatic advertising.
Please note that Trade Desk doesn’t pay dividends at the time of writing.
TTD estimates have been lowered by analysts
In its fourth quarter, Trade Desk made 59 cents per share on revenue of $741,000,000.
Comparatively, analysts were at 31c per share, but with a revenue of $759m, which was higher.
Adtech’s Q1 revenue guidance was $575m, which is also lower than the $582m that analysts had predicted.
Analysts have already begun to revise estimates for the year 2025 due to TTD’s quarterly report.
Shyam patil, of Susquehanna Securities Inc. maintained his positive outlook on Trade Desk but reduced his target price to $135.
Patil’s new price target still suggests a potential rally of about 50% from the current level – so it might be wise to buy TTD on weakness.
Can this post Inside Trade Desk’s 2025 Strategy regain investor trust? This post may change as new information becomes available
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