Shares of streaming TV advertising infrastructure provider
The Trade Desk
are getting hammered in late trading Thursday after the company provided a softer-than-expected outlook for the December quarter.
The report raises fresh questions about the health of the TV advertising market in the final quarter of the year.
In after hours trading, The Trade Desk was off 28.5%, to $54.88.
For the September quarter, The Trade Desk (ticker: TTD) posted revenue of $493 million, up 25% from a year ago, and ahead of Street consensus estimates as tracked by
FactSet
of $487 million. Adjusted profits were 33 cents a share, ahead of consensus at 29 cents. Under generally accepted accounting principles, the company earned 8 cents a share. Adjusted Ebitda, or earrings before taxes, interest, depreciation and amortization, was $200 million, up 23% from the year-ago quarter.
But the company’s outlook fell well shy of Street estimates.
The Trade Desk sees fourth-quarter revenue of “at least $580 million,” which would be well short of consensus at $610 million, and suggests a deceleration in growth to 18%.
The company sees fourth-quarter adjusted Ebitda of “approximately $270 million,” falling short of the Street consensus at $291 million, and slowing to 19% growth.
A spokesperson said via email that the guidance reflects “transitory cautiousness in certain verticals,” in particular the media and entertainment sector, which has continued to be affected by recent labor strikes, and the U.S. automotive market.
Other streaming video plays are also trading lower after hours, with
Roku
down 2.4%, to $79.60, following a 1.5% decline in Thursday’s regular session.
Write to Eric J. Savitz at eric.savitz@barrons.com
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