Those of you that follow The Trade Desk surely saw that their stock dropped -19% at the beginning of this week, the day after Snapchat SNAP warned that “Since we issued guidance on 21 April 2022, the macroeconomic environment has deteriorated further and faster than anticipated,”.
So most every advertising related company went down the following day on Snapchat’s warning, including the big drop in TTD. I had posted on the TTD premium board that I suspected that SNAP’s issues might be more company related and, while the general advertising industry is surely to continue to have it’s share of challenges in coming months and quarters, it felt way overblown how TTD, Google, etc were all getting taken down so harshly in reation to SNAP’s announcement.
Well yesterday, The Trade Desk put out an 8-K filing to reiterate their previous guidance:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1671933/0001…
Item 7.01. Regulation FD Disclosure.
On May 10, 2022, The Trade Desk, Inc. (the “Company”) reported its financial results for the quarter ended March 31, 2022, and provided guidance for the quarter ending June 30, 2022. As of May 26, 2022, the date of the Company’s annual meeting of stockholders, the Company continues to expect revenue to be at least $364 million and Adjusted EBITDA to be approximately $121 million for the quarter ending June 30, 2022.
I believe the filing was already out yesteray morning, and probably part of the reason TTD was up 6%+ yesterday, although it didn’t seem to get much coverage.
This seems like another sign that TTD’s business is so widespread across the industry that, even when a realtively large players sees major headwinds, it doesn’t necessarily mean problems for Trade Desk too, or at least not to the same extend.
Either that or TTD management is much better at factoring in these factors to their guidance, than a company like SNAP did. Either way, good news for TTD.
-mekong