AI-generated illustration / JBizNews
LOS ANGELES – The Trade Desk expanded its share-buyback authorization to $1 billion Monday as it reported a slight decline in third-quarter revenue and a sharp drop in profit, while setting a fourth-quarter sales target of at least $755 million.
The advertising-technology company added $731 million to its repurchase authorization, on top of approximately $269 million that remained available at the end of September. The $1 billion figure is the amount available for future purchases, not shares already bought.
Third-quarter revenue was $736 million, down 0.5% from $739 million a year earlier. GAAP net income fell to $38 million from $116 million, and diluted earnings per share declined to 8 cents from 23 cents. Its net income margin narrowed to 5% from 16%.
Adjusted EBITDA, a non-GAAP earnings measure, fell to $266 million from $317 million, with its margin dropping to 36% from 43%. Non-GAAP diluted earnings per share were 33 cents, compared with 45 cents a year earlier.
“Q3 represented meaningful progress, with results well ahead of our expectations entering the quarter, but we are still operating below the level of growth we expect from ourselves,” co-founder and Chief Executive Jeff Green said.
Green said the company was strengthening its work with its largest customers and improving its platform through products including Kokai Zuma, Audience Unlimited and agentic AI. He also pointed to a new approach to advertising measurement intended to help marketers assess what drives business growth.
The Trade Desk operates a self-service platform that advertisers and agencies use to buy and manage digital advertising across formats and devices. Its results provide a view of spending and competition in the technology used to place ads across the internet and streaming television.
The company said customer retention remained above 95%, a level it has maintained for more than a decade. It also highlighted an expanded Netflix integration that lets advertisers use first-party and third-party audience data through Kokai beginning in November, with in-platform measurement expected to follow.
For the fourth quarter, The Trade Desk expects revenue of at least $755 million and adjusted EBITDA of at least $280 million. These are management forecasts, not reported results. The company did not provide a GAAP net-income outlook, citing the variability of charges including stock-based compensation.
The Trade Desk reported $1.23 billion in cash and cash equivalents and $420 million in short-term investments at September 30. The expanded buyback authority gives it more capacity to return capital while it works to improve sales and profitability.
Illustration: AI-generated media-technology office, representing the digital advertising industry. It does not show The Trade Desk’s offices or an actual company event.
JBizNews Desk | Los Angeles
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