The Trade Desk's CFO Is Leaving. Is it a Red Flag?
Shares of The Trade Desk (NASDAQ: TTD) took a dive last week, plunging 39% on Friday after the ad tech company reported numbers that were in line with expectations, but showed that revenue growth was decelerating.
The Trade Desk's revenue rose 19% year over year in Q2 to $694 million, which was its slowest growth rate in its history aside from a brief dip when the pandemic started. For the third quarter, the company indicated revenue growth would slow further, forecasting at least $717 million in revenue or growth of at least 14%. In an environment where digital advertising spend has been strong, that forecast sparked several downgrades from Wall Street analysts.
However, there was another item in the earnings report that likely compounded the Friday sell-off. The Trade Desk said that Laura Schenkein was stepping down as CFO to be replaced by Alex Kayyal, who is joining the company after serving as a board member for several years. Kayyal was previously an executive at Salesforce and was a co-founder of Hermes Growth Partners, a venture capital firm that was one of The Trade Desk's earliest investors.
Source Fool.com
