Key Takeaways The Trade Desk launched Kokai Zuma with agentic AI, upgraded forecasting and simpler measurement.TTD said Kokai ZUMA enhancements delivered an average 32% improvement in CPA performance in initial resultsTTD expects Q3 revenues of at least $650 million and adjusted EBITDA of about $160 million.
The Trade Desk (TTD Quick QuoteTTD – Free Report) recently unveiled Kokai Zuma, the latest release of its Kokai platform, as the ad-tech company steps up investments in artificial intelligence (AI), campaign automation and measurement. Kokai platform aids in planning, buying and measuring advertising across the open internet.
Zuma brings new agentic AI capabilities and a simpler measurement framework to improve navigation on the Kokai platform for buyers and focus more closely on business outcomes. Zuma also builds on the platform’s AI forecasting engine and infrastructure, spanning available inventory prediction, model campaign outcomes, and powering Koa’s agentic capabilities in real time.
The Trade Desk said that the latest enhancements to Kokai have generated an average 32% improvement in cost-per-acquisition (“CPA”) performance in initial results. The release also brings Conversion Lift enhancements, improved reporting, a more flexible Report Builder and workflow upgrades such as refreshed page designs, Applied Settings View and bulk editing functionality.
The launch is consistent with priorities outlined during TTD’s second-quarter 2026 earnings call. Management identified the Kokai upgrade as an initiative to streamline navigation, workflows, and troubleshooting while enhancing user experience.
While these initiatives provide potential growth catalysts, weaker visibility, macroeconomic pressures and execution issues suggest that TTD’s near-term growth trajectory remains challenging. Revenues increased just 3% year over year to $715 million in the second quarter.
The Trade Desk highlighted ongoing pressure in key verticals such as Food & Drink and Home & Garden as consumer-packaged goods (“CPG”) brands face geopolitical tensions, inflation and consumer softness. While automotive is an “area of strength overall”, it is also impacted by tariffs, added management. CPG and autos together account for about 25% of platform spend, increasing exposure to cautious enterprise budgets.
Near-term visibility remains challenging as management’s third-quarter guidance assumes no meaningful improvement in the macro backdrop. For the third quarter, management expects revenues of at least $650 million and adjusted EBITDA of approximately $160 million.
Compounding the issues is the intensifying competition in the ad tech space from the likes of walled gardens like Amazon, Alphabet (GOOGL Quick QuoteGOOGL – Free Report) and smaller rivals like Magnite (MGNI Quick QuoteMGNI – Free Report) .
Mapping the Competitive Terrain
Alphabet dominates the digital ad space with its online ad platform. In the second quarter, total advertising revenues increased 14% year over year, with Search and Other revenues rising 17% and YouTube advertising revenues advancing 13%.
GOOGL is stepping up AI integration across the board amid intensifying competition. The launch of AI Overviews and AI Mode is driving growth in overall search queries. Its AI Max platform has already been adopted by roughly 500,000 advertisers. Management noted that advertisers using AI-powered campaigns such as AI Max or PMax are generating an average 15% more conversions or value on Search at a similar return on ad spend.
Magnite is also expanding its agentic AI capabilities. It recently unveiled Magnite Orchestration and believes the platform can become an infrastructure layer for agentic advertising. Its existing AI suite includes seller agents that create inventory and audience packages and buyer agents that generate custom media plans and activate and discover audience opportunities. Disney Advertising, Publicis Media Exchange, Dentsu and DIRECTV are among the companies working with various components of MGNI’s AI portfolio.
Magnite is entering this transition with strong momentum, with its CTV business continuing to deliver strong performance. Second-quarter 2026 CTV contribution ex-TAC of $97 million was up 36% year over year, now accounting for 51% of total contribution ex-TAC.
TTD Price Performance, Valuation and Estimates
Shares of TTD have plunged 29.7% in the past month, while the Zacks Internet – Services industry has inched up 1.6%.
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In terms of forward price/earnings, TTD’s shares are trading at 10.98X, lower than the Internet Services industry’s ratio of 20.32X.
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The Zacks Consensus Estimate for TTD’s earnings for 2026 has been significantly revised downward over the past 60 days.
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TTD currently carries a Zacks Rank #4 (Sell).
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