Trade Desk’s Stock Surges on Revenue Outperformance and Robust Outlook

The Trade Desk experienced a significant increase of 18% in its stock value on Thursday due to exceeding revenue expectations and providing positive guidance for the first quarter.

Analysts had predicted earnings per share to be 41 cents, but the company reported 43 cents, while revenue was expected to be $582 million but was $606 million. This marked a 23% increase in sales compared to the previous year’s fourth quarter.

The net income also increased by 37% to $97 million or 19 cents per share, from $71 million or 14 cents in the same quarter last year. The Trade Desk’s first-quarter sales are projected to be at least $478 million, surpassing analyst expectations of $452 million.

Trade Desk
The Trade Desk experienced a significant increase of 18% in its stock value. (Credits: Trade desk)

In addition, the company’s board has authorized a buyback of $647 million in shares, bringing the total amount for future repurchases to $700 million. The fourth quarter saw a buyback of $220 million.

The Trade Desk is a leader in providing advanced advertising technology for businesses looking to target users across the internet.

The company has successfully taken advantage of the shift in corporate ad budgets from traditional TV to connected TVs and streaming platforms.

CEO Jeff Green emphasized the increasing trend of top advertisers gravitating towards precision and premium value at scale, such as Connected TV (CTV) and retail media.

Trade Desk had an increase in the net
Trade Desk had an increase in the net income by 37% to $97 million. (Credits: Trade desk)

CTV is expected to experience growth in 2024, along with a broader recovery in the digital advertising market, which has benefited companies like Meta, Alphabet, and Amazon.

Amazon had the most successful fourth quarter among major digital ad platforms, with a growth rate of 27%. Meta reported 24% growth, largely due to increased spending from Chinese online retailers.

Google’s ad business, on the other hand, lagged behind its competitors, with a growth rate of only 11% compared to the previous year.

Sajda Parveen
Sajda Parveen
Sajda Praveen is a market expert. She has over 6 years of experience in the field and she shares her expertise with readers. You can reach out to her at [email protected]
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