(Reuters) -Trade Desk forecast fourth-quarter revenue below market expectations on Thursday, in a sign that an uncertain economy could weigh on demand for its digital advertising solutions, sending its shares down about 30% in extended trading.
The downbeat forecast is in contrast with ad industry majors such as Meta Platforms and Alphabet’s Google, which benefited from higher advertising spending.
The ad tech firm expects fourth-quarter revenue of at least $580 million, compared with analysts’ average estimate of $610.4 million, according to LSEG data.
Its revenue for the quarter ended Sept. 30 stood at $493.3 million, compared with analysts’ estimate of $487 million.
On an adjusted basis, the company, which has partnerships with retailers such as Walmart, earned 33 cents per share in the third quarter. Analysts on average expected 29-cent-per-share profit.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Shilpi Majumdar)
