The Trade Desk(TTD) GlobeNewswire News Room·2025-04-04 00:00Core Viewpoint - The Trade Desk, Inc. is facing a federal securities class action due to misleading statements regarding the rollout of its generative AI forecasting tool, Kokai, which has resulted in significant revenue misses and a sharp decline in stock price [1][4]. Group 1: Company Performance and Developments - On June 6, 2024, Trade Desk launched Kokai, transitioning clients from its older platform, Solimar, and claimed a seamless transition [3]. - On February 12, 2025, Trade Desk reported fourth quarter revenue of $741 million, missing guidance of $756 million and analysts' estimates of $759.8 million [3]. - The company’s revenue guidance for Q1 2024 was at least $575 million, which also fell short of analysts' expectations of $581.5 million [3]. - CEO Jeff Green acknowledged that the rollout of Kokai was slower than anticipated, stating that the company was still maintaining both systems, which hindered progress [3][4]. - Following the earnings call, Trade Desk's stock price dropped by approximately 32%, from $121.23 to $81.92 per share [3]. Group 2: Legal Implications - The class action complaint alleges that Trade Desk made materially misleading statements about the rollout of Kokai, failing to disclose significant execution challenges [4]. - The complaint highlights that these challenges delayed the rollout and negatively impacted the company's business and revenue growth [4].