The Trade Desk's Revenue Fell 0.5% as Joint Business Plans Rose Over 30%
Revenue fell 0.5% to about $736 million, and the fourth-quarter floor of $755 million sits about 11% below the same quarter last year. Rival Viant grew 29% in the same quarter.
TL;DR
- The Trade Desk's third-quarter revenue fell 0.5% to about $736 million, and it guided to at least $755 million for Q4.
- The decline points to its sales motion more than its channel, since rivals Viant, Zeta and PubMatic all grew.
- Watch the fourth-quarter result against the $755 million floor, and whether The Trade Desk starts disclosing its take rate.
The Trade Desk's revenue shrank last quarter while its count of joint business plans grew more than 30%.
The Trade Desk reported third-quarter revenue of about $736 million on November 9, down 0.5% from a year earlier. It guided to at least $755 million for the fourth quarter. Digiday counts the drop as only the second in its decade as a publicly listed company, after one during Covid.
One explanation is that open-web programmatic is losing budget to Meta, Google and Amazon. Rival platforms grew in the same quarter, which that explanation can't account for. The quarter says more about how The Trade Desk sells. Its growth now runs through annual deals negotiated with procurement and senior executives, and its revenue is a fee on the spend those deals cover.
Joint business plans now carry the sales motion
On the earnings call, the company said "the number of JBPs was up more than 30% year-over-year." More than 100 more sit in the pipeline. Management said buying decisions are moving to procurement teams and senior executives. CEO Jeff Green said JBP customers are growing faster than the rest.
The new business shows up outside the US and in new accounts:
- Asia-Pacific revenue rose about 30% in the first nine months, with China up 45% in the third quarter.
- EMEA rose more than 20% over the same nine months.
- The growth team's client count is up more than 200% this year, with 23 new clients in the third quarter.
Retention stayed above 95%. The Trade Desk doesn't disclose gross spend or its take rate. PPC Land notes that this makes it impossible to say whether flat revenue reflects flat spend, lower fees or both.
In a procurement-negotiated deal, the buyer usually promises volume and the seller gives something on price to get it. For a platform paid as a percentage of spend, that concession likely lands on the fee.
Political ads and one partner propped up the quarter
The CFO said political ads were a mid-single-digit share of third-quarter revenue. A deal with a strategic partner added about 3 points of growth that won't recur. Adweek's summary: "Political ad spending prevented an even steeper decline."
By PPC Land's calculation, the $755 million floor is about 10.9% below the $847 million reported for the fourth quarter of 2025. That would leave full-year revenue roughly flat with 2025's $2.896 billion. Quarterly revenue has risen through the year, from $689 million to $715 million to $736 million.
Profit fell faster than revenue. Adjusted EBITDA was $266 million, a 36% margin, against $317 million and 43% a year earlier, per Adweek. Platform operations costs rose 23.4%, PPC Land reported. The release carries a $44.3 million restructuring charge, and the company expects more than $100 million in gross savings in 2027.
Rival platforms grew through the same quarter
PPC Land, citing Guideline, puts Amazon's share of tracked programmatic spend near 20%. On that reading, the open web is losing to the walled gardens, and The Trade Desk is simply the largest independent platform caught in it.
Other independent platforms grew in the same quarter, Digiday reported:
- Viant: up 29% to $110.4 million
- Zeta: up 46% to $493 million
- PubMatic: up 17%
Programmatic money kept moving through other platforms while The Trade Desk's revenue slipped.
The Trade Desk's answer is performance. Green said A/B tests across 62 campaigns showed its Koa model improved cost per acquisition by a median 21% against the prior model. Green also said open measurement launches this quarter and should lift growth next year.
The plans kept customers, and procurement now prices the fee
Retention above 95% and a 30% rise in JBPs show customers staying and signing joint plans. If JBP customers keep outgrowing the rest, as Green said they are, the plans bought volume at some cost to the fee. If fourth-quarter revenue lands near the $755 million floor, about 11% below the $847 million The Trade Desk reported a year earlier, the plans held customers while the revenue from them fell.
the number of JBPs was up more than 30% year-over-year.
The Trade Desk reports fourth-quarter revenue against its $755 million guidance floor, about 11% below the $847 million it reported a year earlier.
