# The Trade Desk stock surges 15% despite revenue drop

> The Trade Desk shares jumped 15.5% after Q3 results beat estimates despite revenue decline.
- Title: The Trade Desk stock surges 15% despite revenue drop
- Summary: The Trade Desk shares jumped 15.5% after Q3 results beat estimates despite revenue decline.
- Keywords: the trade desk, q3 results, revenue decline, ai initiatives, customer retention, stock surge, The Economic Times
- Source: The Economic Times — https://economictimes.indiatimes.com/markets/us-stocks/news/why-the-trade-desk-stock-surged-15-despite-revenue-decline/slideshow/135701057.cms
- Read time: 1 min
- Topics: the trade desk, q3 results, revenue decline, ai initiatives, customer retention, stock surge, money, business
## Q3 results beat estimates
The Trade Desk shares jumped 15.5% to $14.93 after reporting third-quarter revenue of $736 million, exceeding expectations despite a 0.5% year-on-year decline.
## Earnings beat analyst expectations
The company reported adjusted earnings of 33 cents per share, beating analyst expectations of 25 cents.
## Profitability declines
Net income dropped to $38 million from $116 million a year earlier, with adjusted EBITDA falling to $266 million.
## AI growth initiatives
CEO Jeff Green sees AI as a major opportunity, expanding agentic AI capabilities to help advertisers manage campaigns and improve targeting.
## Kokai Zuma platform update
The Trade Desk introduced Kokai Zuma, an upgraded platform with agentic AI and a more intuitive interface for automating advertising tasks.
## Customer retention above 95%
Customer retention remained above 95% in the September quarter, extending a decade-long streak.
## Key takeaway

The Trade Desk's stock surged 15% following Q3 results that exceeded revenue expectations while showing progress in AI initiatives and customer retention.