The Trade Desk Inc. (NASDAQ:TTD) stock was little changed in premarket trading Tuesday after surging more than 15% in the previous session, as investors digested the advertising technology company’s better-than-expected third-quarter earnings and upbeat fourth-quarter forecast.
The company also increased its share repurchase authorization by $731 million to $1 billion.
Third-Quarter Earnings Beat Estimates
The Trade Desk reported third-quarter revenue of $735.97 million, down 0.5% year over year but above analysts’ estimate of $650.29 million.
Revenue included a 3-percentage-point benefit from a strategic partner. However, underlying performance also exceeded expectations.
Adjusted earnings of 33 cents per share topped the 25-cent estimate by 32%.
For the fourth quarter, the company forecast revenue of at least $755 million, above the $685.38 million consensus estimate. It also expects adjusted EBITDA of at least $280 million.
Job Cuts and AI Investments
The Trade Desk reduced its global workforce by about 15% in September. The restructuring is expected to generate more than $100 million in gross savings in 2027.
Management plans to reinvest those savings in artificial intelligence, data, measurement and platform development.
The company also expects expense growth to slow significantly in 2027, supporting stronger operating leverage.
Meanwhile, The Trade Desk launched Zuma, an upgrade to its Koa AI platform, during the third quarter. The update reduced campaign creation time by 9% and ad group creation time by 15%.
The company is also developing AI tools to automate campaign planning and optimization.
Customer Growth and International Expansion
Joint Business Plans increased more than 30% year over year through the third quarter. The company also has over 100 additional agreements in its pipeline.
International markets remained strong. Asia-Pacific revenue grew about 30% during the first nine months of 2026, while China recorded 45% growth in the third quarter.
Revenue in Europe, the Middle East and Africa increased more than 20%.
Video advertising, including connected TV, accounted for slightly more than half of third-quarter business. Meanwhile, audio was the fastest-growing advertising channel.
The Trade Desk estimates its addressable market at roughly $1 trillion, supported by opportunities in digital advertising, connected TV and AI.
TTD Price Action: Trade Desk shares were down 0.54% at $14.85 during premarket trading on Tuesday, according to Benzinga Pro data.
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