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The Trade Desk (TTD -7%) is trading lower following its Q3 earnings report, despite delivering one of its strongest quarters in years. It has been a roller coaster few months for TTD. The stock sold off in February following disappointing Q4 results with downside revs. Then it gapped higher in May when it beat handily on Q1 EPS and revs. However, its Q2 report/commentary in early August was a letdown, plus its long time CFO Laura Schenkein abruptly stepped down. Today, the stock is lower but we are seeing a more modest move.

• Revenue rose 17.7% yr/yr to $739.4 mln, well above expectations; excluding last year's political spend, growth was about 22% yr/yr.
• EPS delivered the company's largest beat in four years, reflecting solid operating leverage.
• Q4 guidance of "at least $840 mln" topped consensus, signaling confidence heading into the holiday season.
• Connected TV (CTV) remained TTD's largest and fastest-growing channel, outpacing overall company growth as the shift to biddable CTV accelerates.
• International revenue rose to 13% of sales, growing significantly faster than North America as EMEA and APAC momentum builds.
• On the macro front, TTD described a "Tale of Two Cities" — CPG and retail remain pressured, while financial services, healthcare, and auto categories are expanding ad spend.

Briefing.com Analyst Insight:

The Trade Desk delivered an objectively strong quarter with robust top-line growth, impressive EPS outperformance, and upbeat guidance for Q4. That said, the stock's muted reaction likely reflects investors' caution after a volatile year and lingering concerns around ad spend in key CPG and retail verticals heading into the holidays. We view the quarter as a clear step in the right direction — proof that TTD's platform remains the go-to for programmatic and CTV advertising. However, at ~45x forward EBITDA, expectations are still lofty, leaving limited room for macro hiccups or execution risk. Long-term, we continue to see TTD as one of the best-positioned plays in digital advertising, particularly as CTV becomes the default buying model, but near-term volatility may persist until investor confidence fully stabilizes.