The Trade Desk Revenue Rises but Growth Slows and Stock Tanks 30%

The numbers$694 million: Income for Q2 2025, up 19% year-over-year, and above the corporate’s prior steerage of $682 million. 22%: YoY income development for the primary half of 2025. Development was 27% throughout the identical interval final yr.-30%: The Commerce Desk inventory fell in after-hours buying and selling. Three-quarters: The variety of The Commerce Desk shoppers utilizing its core platform Kokai, with the majority of spend operating by it. Expects all shoppers will use it by the top of the yr. Watercooler talkDespite a strong quarter for The Commerce Desk, its inventory tanked as a result of its price of development slowed in comparison with earlier quarters.Shifting on from Wall Road’s histrionics, firm CEO Jeff Inexperienced disregarded the rising competitors coming from Amazon, whose bettering advert enterprise has drawn some advertisers to shift hundreds of thousands of {dollars} away from The Commerce Desk.“Regardless of their blended messages, they don’t seem to be making an attempt to purchase the Open Web objectively. They will’t. They’ve approach an excessive amount of Prime Video provide to promote to ever truthfully pitch massive manufacturers to objectively purchase the Open Web,” Inexperienced mentioned.Amongst notable management adjustments, The Commerce Desk is bringing on Alex Kayyal, beforehand at Lightspeed Enterprise Companions, as chief monetary officer efficient Aug. 21, succeeding Laura Schenkein. The corporate additionally appointed Omar Tawakol, CEO of AI startup Rembrand, to its board of administrators.The Commerce Desk additionally noticed extra use of CTV and OpenPath, its software that connects advertisers immediately with publishers. The corporate can also be rising its enterprise working immediately with manufacturers, which Inexperienced mentioned made up most of the 100 joint enterprise plans it signed just lately.And after a gradual begin, The Commerce Desk appears to be migrating shoppers over to its Kokai interface. Seventy % of consumer spend is on Kokai, in keeping with Schenkein.Some sectors underperformed, together with the house and backyard vertical which makes up 8% of The Commerce Desk’s enterprise, and magnificence and style, which makes up 4%.Key quote Amazon is “extra of a possible associate, truthfully, than it’s a long-term competitor,” Inexperienced mentioned. He pitched The Commerce Desk as a possible associate if Amazon opens Prime Video to exterior demand: “We imagine we’d be a tremendous associate to drive demand to them.”