Part 6/10:
The marketplace reacted swiftly to The Trade Desk's Q4 2024 earnings report, which revealed an unexpectedly conservative outlook for Q1 2025: projected revenue of at least $575 million—a stark reduction from the anticipated growth rates that investors had come to expect. Despite a continued expectation of 17% year-over-year revenue growth, the projected decrease in adjusted EBITDA by 10% caught many off guard and triggered a significant decline in the company's stock.
Investors had hoped for robust growth, especially as the digital advertising landscape continues to evolve post-bear market. The revenue forecast signified a slowdown in what had been an impressive performance trajectory, leading to heightened investor anxiety.