Key Takeaways:

  • Ad tech platform The Trade Desk announced in a press release on Thursday that board member Alex Kayyal will become the company's Chief Financial Officer (CFO) starting August 21, succeeding long-time company veteran Laura Schenkein. The Ventura, California-based company, which helps clients run advertising campaigns, said it hired Kayyal as CFO to "drive the company's continued growth and scale."
  • Schenkein is departing after more than a decade at the digital marketing platform. According to her LinkedIn profile, she initially joined the company as Director of Financial Planning and Analysis and became CFO in June 2023. The company said Thursday that Schenkein will remain as a non-executive employee through the end of the year and will work with Kayyal to ensure a "smooth transition of responsibilities."
  • "From our early days to going public, and then joining the S&P 500, I'm proud of what we've accomplished together along the way," Schenkein said Thursday during the company's latest earnings call, reflecting on her 11-year tenure. The company went public in September 2016.

Deep Dive:

According to securities filings, Kayyal joined the company's board in February and has served as a partner at Lightspeed Venture Partners since February 2023. His past experience also includes seven years at software company Salesforce, where he held roles such as Senior Vice President and Managing Partner of Salesforce Ventures, according to his LinkedIn profile.

In connection with his CFO appointment, Kayyal has resigned from the board's special committee, according to a filing with the U.S. Securities and Exchange Commission. As CFO, Kayyal will receive an annual base salary of $600,000, a signing bonus of $600,000, and a relocation allowance of $400,000, the filing shows. He will also receive an initial target bonus of $600,000 and restricted stock awards totaling $15 million.

"I met Alex in 2014 when he was one of the company's earliest investors," Schenkein said Thursday on the company's earnings call. "He is highly respected, and I'm confident he will excel in his new role." The call transcript was provided by Seeking Alpha.

The company's shares plunged about 37% on Friday (August 8), according to Nasdaq data, after it reported second-quarter earnings, amid concerns over tariff uncertainty and the possibility that large enterprises could cut advertising spending. Company executives are closely monitoring the potential impact of U.S. trade policy changes and other economic risks on performance.

"Assuming the macro environment remains stable and we don't see disruption from large global brands, which make up a significant portion of our business due to tariff uncertainty, we expect third-quarter revenue of at least $717 million," Schenkein said Thursday.

The Trade Desk also faces increasing competition in the online advertising space, including from Amazon, which reported last week that its advertising revenue grew 23% in its most recent quarter to $15.7 billion, according to CNBC on Friday.

Although "some of the largest global brands are indeed under pressure and there is a degree of uncertainty," including tariff impacts, that uncertainty also "presents an opportunity for us to gain market share," the company's CEO and founder Jeff Green said Thursday in response to an analyst's question.

For the quarter ended June 30, The Trade Desk reported revenue of $694 million, up 19% year-over-year, with net income rising to $90 million from $85 million in the same period last year, according to its earnings report.

Green and Schenkein also highlighted strong growth in the company's "Connected TV" (CTV) advertising business, a form of advertising targeting streaming or OTT devices. This area remains The Trade Desk's fastest-growing channel. In the second quarter, video, including CTV, "represented close to 50% of our business share and continues to grow as a percentage of our mix," Schenkein said.

Beyond tariffs, Green also pointed to other trends that could impact performance, including artificial intelligence and the growing prevalence of "walled gardens" (i.e., closed systems) in online advertising.

"The digital advertising landscape is evolving rapidly, with walled gardens facing ongoing regulatory scrutiny, the rise of AI, and growing demand for transparency and independence," Green said. "We believe the next decade will be a defining period for winners and losers in our industry, and staying true to our long-term vision is more important than ever."

The Trade Desk declined to comment further beyond its press release.