The Trade Desk Reports Slowed Q2 Growth and Shares Plunge After Weak Earnings

The Trade Desk posted second‑quarter revenue of $715 million, a 3% year‑over‑year increase and the slowest growth since 2020. Adjusted EBITDA fell to $241 million with a 34% margin, while net income dropped to $64 million and GAAP earnings per share were $0.14. The company guided third‑quarter revenue of at least $650 million, prompting a 19.6% after‑hours sell‑off; the stock had already fallen about 25% in after‑hours trading following the earnings release.

CEO Jeff Green said the results fell short of expectations, citing macroeconomic headwinds, inflation and competition from lower‑cost programmatic buying. Despite the slowdown, the firm expanded its partnership ecosystem, adding Netflix and Samsung Ads to its connected‑TV inventory and integrating commerce‑media partners such as Booking.com, Agoda, Kayak, Priceline, Marriott, Uber and United Airlines. Databricks also named The Trade Desk a launch partner for its CustomerLake data‑AI platform.

The earnings miss and softer outlook raised concerns among investors about execution and cost pressures, despite the company’s strong customer retention rate of over 95% and ongoing share‑repurchase program.