Can The Trade Desk Bounce Back After Last Week's 21% Drop?

The Trade Desk (NASDAQ: TTD) may be on the leading edge of programmatic advertising, but last week it was more on the bleeding edge for its investors. Shares of The Trade Desk plunged 21.1% on the week, sliding after effectively lowering its guidance for the fourth quarter. 

The Trade Desk's financial report is impressive if we focus on the third quarter's performance. Revenue soared 50% to $79.4 million, with its mobile and connected TV segments growing even faster. Analysts were only holding out for $76.9 million in revenue, and it's hard to blame them, as The Trade Desk's own guidance was targeting just $76 million for the period. The Trade Desk's profit of $0.35 a share as net income soared 63% blasted through the $0.27 a share that analysts were modeling. 

However, then we get to the problematic guidance. The Trade Desk beat its own revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) forecast for the third quarter by $3.4 million on both fronts, but it only raised them by $3 million and $2 million for all of 2017, respectively. It is effectively lowering its earlier implied guidance for the fourth quarter by $0.4 million in revenue and $1.4 million in adjusted EBITDA. 

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Source: Fool.com