TTD Stock Sinks Overnight On Weak Outlook, But CEO Feels ‘Best Days Are Ahead’

• Trade Desk’s Q1 revenue grew 12% year-over-year to $689 million.
• Investor concerns grew after Chief Strategy Officer Samantha Jacobson left for OpenAI.
• CEO Jeff Green said The Trade Desk remains profitable and optimistic despite economic uncertainty.

The Trade Desk (TTD) stock plummeted overnight amid a sharp sell-off after its first-quarter (Q1) earnings report disappointed investors and raised concerns about slower growth in digital advertising.

Although revenue topped Wall Street expectations, weaker profitability, softer guidance, and the exit of a senior executive to OpenAI combined to pressure the stock. 

TTD’s Earnings Miss Overshadows Revenue Growth

The Trade Desk reported Q1 revenue of $689 million, representing 12% growth year-over-year. While that figure exceeded analysts' consensus estimate of $678.68 million, earnings per share (EPS) of $0.28 came in below Street expectations of $0.32, according to Fiscal AI data. 

Investors also reacted negatively to the company’s Q2 revenue forecast. The company projected at least $750 million in revenue for the upcoming quarter, trailing analyst expectations of $770.41 million. 

The Trade Desk stock traded nearly 15% lower overnight, late Thursday. 

Leadership Departure Adds Pressure For TTD 

Market concerns intensified after the company confirmed the departure of Chief Strategy Officer Samantha Jacobson, who is leaving for OpenAI. The timing of the announcement, arriving just before earnings, amplified investor worries about competition for top artificial intelligence talent.

Jacobson was a key leader in the company’s AI partnerships and long-term strategy. Her exit comes as The Trade Desk expands its AI-based advertising products.

CEO Stays Confident On TTD’s Growth 

Speaking on the earnings call, CEO and co-founder Jeff Green said that the ad-tech company remains profitable and confident in its future despite mounting geopolitical and economic uncertainty.

Green said that marketers are increasingly shifting toward data-focused advertising strategies as economic pressures force brands to seek measurable performance improvements. He also said emerging channels such as AI-powered search, retail media, and streaming television are expanding the global advertising opportunity faster than previously anticipated.

“The role of data in AI and advertising is increasing, and the need for objective outcome-driven platforms has never been greater. We believe all of those trends are working in our favor. And importantly, we believe we are still early in this opportunity. As a result, our best days are ahead of us,” said Green. 

What Are TTD Retail Traders Saying? 

On Stocktwits, retail sentiment around the stock jumped to ‘extremely bullish’ from ‘neutral’ territory the previous day. 

A user said, “I saw tonnes of bearish comments when $COIN  touched 38 in 2022. I bought $COIN at 295 before it touched 38 and then sold by averaging.  History repeats with  $TTD IMHO.” 

Another user said, “$TTD would be a good add-on for $NFLX.”

TTD stock has declined by over 38% year-to-date.

Also See: GILD Stock Slips After Hours On Sharp Earnings Guidance Hit From Massive M&A Spree

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