Shares of Trade Desk Inc. (TTD) tumbled 7.52% in after-hours trading on Thursday, despite the company reporting better-than-expected third-quarter results. The sharp decline appears to be driven by concerns over the company's fourth-quarter revenue guidance.

Trade Desk reported adjusted earnings per share of $0.45 for Q3, surpassing the analyst consensus estimate of $0.44. Revenue for the quarter came in at $739 million, beating the Street estimate of $718.69 million and representing a 17.74% increase from the same period last year. The company's CEO, Jeff Green, highlighted strong performance driven by new product innovations across their Kokai platform.

However, investors seem to be focusing on the company's Q4 outlook. Trade Desk expects fourth-quarter revenue to be at least $840 million, which, while above the analyst estimate of $830.15 million, may not have met the market's more optimistic expectations. This guidance suggests a potential slowdown in growth rate compared to the previous quarter, which could be causing concern among investors in the highly competitive digital advertising space.