"For nearly a decade, The Trade Desk built one of the most impressive track records in tech -- more than 30 consecutive quarters of revenue beats, consistent margin expansion, and customer retention above 95%. That reliability became part of the company's identity. But by the end of 2024 and into early 2025, cracks finally appeared. The company reported its first revenue miss in years. Although growth rebounded quickly -- rose in the high teens through 2025 -- the miss altered investor psychology. The Trade Desk showed it is not immune to macro pressures, competitive intensity, or operational growing pains."
"As 2025 comes to a close, The Trade Desk remains one of the most closely watched companies in digital advertising. For years, the company earned its reputation as the independent alternative to Google and Meta Platforms, helping advertisers reach audiences across the open internet with transparency and control. But this year marked a turning point. Competitive dynamics shifted, execution expectations reset, and the industry's center of gravity continued to move toward large ecosystems with rich first-party data."
After years of consistent revenue beats, margin expansion, and retention above 95%, The Trade Desk experienced a revenue miss in late 2024 and early 2025, weakening perceptions of flawless execution. Growth recovered into the high teens through 2025, platform spending increased, and retention stayed high. Amazon Ads significantly intensified competition and reinforced the industry's shift toward large ecosystems with rich first-party data. The Trade Desk continues aggressive investments in AI, identity, and related areas while managing macro pressures and operational growing pains. Investors entering 2026 focus more on forward performance amid heightened competitive risk.
Read at The Motley Fool
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