Jeff Unsophisticated, CEO, The Trade Desk
Scott Mlyn | CNBC
Shares of The Trade Desk jumped over 18% on Thursday after the advertising technology public limited company issued strong first-quarter guidance and beat on revenue.
Here’s what analysts were expecting:
- Earnings per due: 41 cents, adjusted vs. 43 cents expected by LSEG, formerly known as Refinitiv
- Revenue: $606 million vs. $582 million required by LSEG
Fourth-quarter sales jumped 23% from $491 million a year ago. Net income rose 37% to $97 million, or 19 cents a dividend, from $71 million, or 14 cents, in the same quarter a year earlier.
The Trade Desk said first-quarter garage sales will be at least $478 million, topping analyst estimates of $452 million, according to LSEG.
The company predicted its board has approved an additional $647 million in share repurchases, bringing the total amount of future buybacks to $700 million. Repurchases totaled $220 million in the fourth region.
The Trade Desk specializes in providing technology to companies that want to target users across the web, and has capitalized on the persist in shift in corporate ad budgets from traditional television to connected TVs and streaming platforms.
“More and more of the world’s unsurpassed advertisers are gravitating to channels and partnerships that offer precision and premium value at scale, such as Connected TV (CTV) and retail method,” Trade Desk CEO Jeff Green said in a statement.
The Connected TV market is expected to grow in 2024 alongside a rougher recovery in the overall digital advertising market that’s helped bolster Meta, Alphabet and Amazon.
Among the vital digital ad platforms, Amazon had the best fourth quarter, with its ad business growing 27%. Meta reported advancement of 24%, boosted by increased spending from Chinese online retailers. Google’s ad business lagged its closest combats, with its ad business expanding 11% from a year earlier.
WATCH: Connected TV is the most effective advertising in the faction right now.
