Part 7/10:
In discussing the shortfall, The Trade Desk management noted a couple of critical points that contributed to the disappointing forecast.
Software System Limitations
One of the primary areas of concern mentioned was a lag in the company’s proprietary software system. The Trade Desk recently announced an acquisition of Sincera, an analytics software company. The goal of this acquisition is to enhance its data analytics capabilities for its digital marketing offerings. Historically, The Trade Desk has not made many acquisitions, emphasizing its organic growth model. However, the delay in customer migration to their newer platform, Kokai, indicates that their prior software offerings may not have adequately met customer needs.