Trade Desk forecasts downbeat quarterly revenue, shares fall

Aug. 6 (Reuters) - Ad-tech firm Trade Desk on Thursday forecast third-quarter revenue below Wall Street expectations, anticipating mounting pressure from larger rivals and cautious spending by advertisers, sending its shares down 22.5% in extended trading.

The company also missed estimates for second-quarter revenue and earnings.

Here are some details:

• The company projected third-quarter revenue of $650 million, below analysts' average estimate of $805.1 million, according to data compiled by LSEG.
• Trade Desk, an independent middleman that helps advertisers run campaigns on websites and apps, is looking to win broader adoption for its newer initiatives amid a highly competitive landscape.
• Advertisers tightening marketing budgets and favoring larger platforms, including TikTok and Meta-owned Facebook and Instagram, have put pressure on demand-side platform providers such as Trade Desk, which does not have its own ad inventory.
• Trade Desk reported revenue of $715 million for the quarter ended June 30, missing estimates of $751.4 million.
• Quarterly adjusted earnings came in at 34 cents per share, compared with estimates of 40 cents.
• "This quarter did not meet the standard we set for ourselves," CEO Jeff Green said, adding that marketers are navigating a "complex environment".
• French ad giant Publicis Groupe in March advised its clients against using Trade Desk's platform for digital-media buying following an audit.