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Dave Pickles, who co-founded the company and served as its technology chief until 2023, is returning in a new leadership role. He will lead a newly formed council to provide direct guidance on the company's core technology and product development.
This is a positive move for the company's technical direction. Having a founder return to oversee the engineering roadmap suggests a focus on maintaining the platform's edge as it navigates the shift away from tracking cookies to new identity standards like UID2.
Source: Business Wire
The Trade Desk is scheduled to report its quarterly performance on November 9. Analysts are looking for revenue of about 650 million dollars and earnings of roughly 4 cents per share. We will be watching for updates on Connected TV, which is the software's biggest growth engine as advertisers move budgets from traditional cable to streaming. We also want to see if the company is winning more business outside of North America, where most of the global ad market still sits untapped.
The company is adding data from Digital Envoy to its platform, giving advertisers more ways to reach specific groups of people. Beyond just knowing where a user is located, brands can now use signals like which mobile carrier or internet provider someone uses to build their target audiences. This is a small but useful addition to the company's data toolkit. By offering more granular ways to find customers on the open internet, The Trade Desk makes its platform more attractive to big brands that might otherwise spend those dollars within the closed systems of Google or Meta.
Source: Business Wire
The company is scheduled to report its latest financial results on November 5. Analysts are looking for revenue of about 650 million dollars and earnings of roughly 5 cents per share. This update will be an important check on how much ad spending is moving to streaming services, which has been the main engine for the company's growth lately.
On October 19, shareholders voted to approve a plan that resets the price of certain employee stock options to $12.26, which was the stock's closing price that day. This process, known as repricing, is used when a company's stock falls so far that existing employee options, which allow staff to buy shares at a set price, become worthless because the market price is lower than the option price.
The reset covers current employees and executives but excludes the board of directors and specific performance-based grants for CEO Jeff Green. To ensure employees stay, the new lower price only sticks if they remain with the company through April 2027. While this helps keep talent from leaving during a rough patch for the stock, it also shows how much the company is leaning on its share price to keep its workforce motivated.
Source: 8-K filing
Management has a habit of clearing the bar they set, though the results can be choppy. They have beaten expectations in five of the last eight quarters.
| Expectation | |
|---|---|
| EPS | $0.04 |
| Revenue | $651M |
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