The Trade Desk, a leading ad tech company, reported its first-ever earnings miss as a public company. Despite this, the company’s revenue grew 22% year-over-year to $741 million in Q4, with its net profit line more than doubling from $97 million to $182 million.
CFO Laura Schenkein attributed the miss to “small execution missteps” and said that the company is committed to making adjustments. Founder and CEO Jeff Green added that the miss was not a reflection on the company’s strategy but rather a minor setback.
Green outlined several opportunities for growth, including expanding its brand direct relationships, which he said are growing at 50% faster than other business segments. He also emphasized the importance of audio advertising, citing it as “the most on-sale corner of the internet.”
The company is preparing for a potential shift in Google’s ad tech business, with Green stating that he believes Google will exit the open internet and be forced to restructure its operations. Additionally, Amazon is facing challenges due to its dual role as an advertiser and competitor to many major companies.
Despite the earnings miss, The Trade Desk remains confident in its strategy and is committed to making adjustments to drive growth.
Source: https://www.adexchanger.com/marketers/the-trade-desk-promises-big-changes-after-missing-its-q4-guidance