The Trade Desk stock saw a significant increase on Friday, rising 17% after the release of its latest numbers. It’s time to take a closer look at the figures, forecasts, and analyst predictions.

The Trade Desk: The specialist for digital advertising Digital advertising is a booming market with double-digit growth rates for years to come. The Trade Desk offers automated tools that allow corporate clients to purchase digital ads and optimize their return on investment. Trade Desk’s applications use artificial intelligence (AI) to identify the best websites for ad placement.

This includes not only display ads on the web, but also ads in smartphone apps, video streaming platforms, internet radio and podcasts, and internet TV. Through programmatic advertising, advertisers can select a highly targeted audience and efficiently advertise across all of these online channels.

Platform drives strong growth rates The company has achieved significant growth rates in recent years with its intelligent platform. Revenues have grown from $44 million in 2014 to $1.94 billion in 2023. Unlike many other start-ups, The Trade Desk has been profitable for several years. In the last fiscal year, the company reported a profit of $628 million.

23% revenue increase in Q4 The fourth quarter continued to show strong growth for Trade Desk: revenues totaled $606 million (+23.5% compared to the same quarter last year). This was $23.77 million above expectations (Source: Seeking Alpha).

Meanwhile, the technology company was profitable in the fourth quarter. Adjusted earnings before interest, taxes, and depreciation (EBITDA) rose to $284 million, with an EBITDA margin of 47%, 3 percentage points lower than the previous year.

Adjusted net income for the quarter was $97.3 million, or 19 cents per share. This was significantly higher than the previous year when the company earned 14 cents per share.

Forecast for advertising spending remains uncertain For the first quarter of the 2024 fiscal year, The Trade Desk’s management expects revenues of at least $478 million (+24.8% growth). Adjusted EBITDA is expected to be around $130 million.

Analysts see limited potential for stock price growth Meanwhile, analysts (Source: Marketwatch.com) have mixed opinions. Out of 34 experts covering the stock, 25 recommend buying, 5 recommend holding, and 3 recommend selling. The range of price targets is vast, ranging from $30 to $110 (closing price on Friday, February 16, 2024: $88.93). The average price target of all analysts is currently $93.26, only about 5% higher than the current stock price.

The Trade Desk stock shows signs of life The post concludes by stating that The Trade Desk stock is showing signs of life after the company’s strong performance and positive outlook.