Shares of The Trade Desk tumbled 25% today after the company reported first-quarter earnings and announced a 10-for-1 stock split in June.
The Trade Desk reported revenue of $220 million, beating consensus estimates of $217 million. The company also reported EBITDA of $70.5 million, up from $39 million a year ago, and EPS at $1.41 compared to a consensus estimate of $0.77.
Despite that performance, the stock's performance reflects a wider worry among investors over whether publishers will accept The Trade Desk's advertiser identity replacement, as well as low opt-in rates from other identifying methods including Apple's Identifier for Advertisers, said Mark Zgutowicz, senior research analyst covering internet at Rosenblatt.
"There’s been a buildup in terms of concerns in their ability to scale the platform," says Zgutowicz. He noted that consent rates for other third-party identifiers have fallen below expectations, worrying investors who see The Trade Desk's ability to dominate in online advertising as critical to the company's future.