Shares of Trade Desk Inc. (TTD) plunged 29.24% in pre-market trading on Friday, following the company's second-quarter earnings report and announcement of a major leadership change. Despite beating revenue expectations, the ad-tech firm faced investor concern over decelerating growth and an unexpected shift in its executive team.

Trade Desk reported Q2 revenue of $694 million, surpassing analyst estimates of $685.3 million. However, this represented a sharp slowdown in growth to 19% year-over-year, compared to 26% in the same quarter last year and 25% in Q1 2025. The company's outlook for Q3 revenue of at least $717 million, while in line with expectations, failed to impress investors hoping for more robust guidance.

Adding to the market's unease, Trade Desk announced that Laura Schenkein would be stepping down as Chief Financial Officer after more than a decade with the company. Alex Kayyal, a board member with experience leading Salesforce's venture operations, was named as her successor effective August 21. This unexpected leadership transition during a period of slowing growth appears to have rattled investor confidence.

The steep stock decline reflects growing concerns about Trade Desk's ability to maintain its growth trajectory in the face of economic uncertainty and increased competition in the digital advertising space. CEO Jeff Green acknowledged volatility affecting some of the company's largest clients, particularly in the auto and consumer packaged goods sectors. As advertisers tighten marketing budgets and increasingly favor larger platforms like TikTok, Facebook, and Instagram, demand-side platform providers like Trade Desk are feeling the squeeze.