The Trade Desk reported a modest revenue decline alongside a larger fall in net income for the third quarter, posting $736 million in revenue and $38 million in net income for the three months ended Sept. 30. The advertising technology company disclosed the results in an earnings release filed with the Securities and Exchange Commission (SEC) on Nov. 9.
Revenue declined 0.5% from a year earlier, when net income was $116 million. Diluted earnings per share under generally accepted accounting principles (GAAP) were 8 cents, compared with 23 cents a year earlier. Adjusted EBITDA, a non-GAAP measure, was $266 million, down from $317 million.
Co-founder and CEO Jeff Green said the quarter surpassed management’s initial expectations, although the company still wants to grow faster.
For the fourth quarter, The Trade Desk projected revenue of at least $755 million and adjusted EBITDA of at least $280 million. The board approved a further $731 million for buybacks; the authorization now totals $1 billion for future purchases of Class A shares.
The company said customer retention remained above 95% in the third quarter, continuing a level maintained for more than a decade. Its forward-looking risk disclosures also cited slower or different-than-expected development in programmatic advertising, as well as changes in client demands and retention. The company did not identify those risks as causes of the revenue decline.
The SEC index shows the Form 8-K submission contains 12 documents and lists Items 2.02, 8.01 and 9.01, covering results, other events, and financial statements and exhibits. The company announced Oct. 27 that it would release the results after the U.S. market closed Monday, Nov. 9. EconoTimes had previously covered the scheduled release.
