The Trade Desk TTD is the 55th fastest growing technology company in North America as per Deloitte's Technology Fast 500. The list ranks 500 fastest growing technology, media, telecommunications, life sciences and energy tech companies in the continent, which had base-year (2012) revenues of at least $50K and current year revenues of at least $5 million.
Per the press release “Deloitte's Fast 500 ranking is based on a percentage of fiscal year growth from 2012 to 2015, a period in which The Trade Desk grew 1,836%.” Overall technology companies in Deloitte’s list achieved revenue growth ranging from 121% to 66,661% over the 2012–2015, with median growth of 290%.
Notably, Trade Desk completed its Initial Public Offering (IPO) on Sep 21, 2016. Net proceeds from the IPO were almost $73.6 million. The company recently announced its third-quarter 2016 results, which were impressive in our view.
Earnings of 23 cents per share surged 58.6% from the year-ago quarter on revenues of $53 million, which soared 84.1%. The strong revenue growth was driven by higher spending through newer channels such as Mobile and Audio.
Trade Desk launched a number of new product features and enhancements during the quarter. This includes new user interface update, a new version of the company’s viewability product and hyperlocal mobile targeting product.
Customer retention remained over 95% during the quarter, which reflects the strength of the company’s product portfolio. In this regard, the company’s frequent product updates are the key catalysts. Moreover, Trade Desk continues to sign partnerships, which will continue to expand its customer base going ahead.
Most recently, DoubleVerify announced the expansion of its pre-bid targeting integration partnerships with Trade Desk. Further, Leading media and marketing company, Meredith Corp announced partnership with the company to launch its first-ever digital programmatic solution for digital shopper marketing.
We believe these are positive developments for Trade Desk will boost its competitive position in the programmatic-ad technology market, which is dominated by established players like Google, Facebook FB and Criteo CRTO.
Additionally, Adobe’s ADBE recent announcement of acquiring TubeMogul will intensify competition in the programmatic-ad technology market, which is anticipated to grow to 62% (of total U.S. display and video spending) by 2019, per data available from Magna Global.
We note that not only the customers but the employees are also happy with Trade Desk. Recently, the company was named as one of the 100 Best Places to Work in New York City by Crain's New York Business and Best Companies Group.
Currently, Trade Desk has a Zacks Rank #3 (Hold). Facebook (FB) with Zacks Rank #2 (Buy) is a better-ranked stock in the sector. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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