The Trade Desk (TTD) reported actual EPS of $0.59 and revenue of $741.01 million for Q4 2024, which was slightly below the estimate of EPS of $0.57 and revenue of $759.56 million12. The company's earnings fell short of forecasts due to several factors:
- Economic Uncertainties: Despite The Trade Desk's optimism about its future growth prospects, economic uncertainties could have impacted advertiser spending, thereby affecting revenue3.
- Operating Expenses Increase: The company experienced a 24% increase in operating expenses, which could have squeezed margins and impacted profitability3. This increase was due to investments in teams and technology, which may not have been fully reflected in the financial estimates.
- International Market Growth: While The Trade Desk saw significant growth in international markets, particularly in Connected TV (CTV) advertising, this growth may not have been enough to fully offset any domestic market softness. International revenue growth outpaced that of North America for the seventh consecutive quarter, with North America contributing 88% to the total revenue4.
In summary, The Trade Desk's Q4 2024 earnings fell short of forecasts due to economic uncertainties impacting advertiser spending, increased operating expenses, and the shift in revenue mix towards international markets, which may not have been fully anticipated in the estimates.
3/28/2025 12:31am
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