In light of the company’s notable revenue and EBITDA growth, investors should take a serious look at TTD stock while it’s still priced at a steep discount. Trade Desk is ambitiously pursuing a fast-expanding addressable market that you might not have given much thought to until today. Amazingly, the company has maintained this customer retention rate for the past eight consecutive years. Moreover, during the first quarter, Trade Desk’s customer retention remained over 95%. Not only that, but Trade Desk’s non-GAAP adjusted EBITDA increased from $71 million in the year-earlier quarter to $121 million in Q1 2022.
Within this vast market space, has Trade Desk been able to grow its revenue? The answer is definitely yes, and there’s hard data to prove it.īy delivering $315 million in first-quarter 2022 revenue, Trade Desk exhibited 43% growth in this area.
The company expects this market to expand as businesses seek ad-spend modalities that are digitized but also efficient and cost-effective.Īs Trade Desk succinctly put it, “The pie is getting bigger while waste is being pushed out.” In this vein, Trade Desk’s self-service platform fits the bill perfectly, as it allows agencies to pick from more than 500 billion digital ad opportunities per day.Īll of this leaves open a crucial question, though. At the same time, Trade Desk’s total addressable market (global advertising) is racing toward $1 trillion, according to the company.Ĭurrently, Trade Desk estimates that total global ad spending stands at around $750 billion. Not long ago, they were 50% off compared to the $114 peak price. If you’re just discovering TTD stock now, your timing is fortunate as the shares are trading at a discount. It’s awfully difficult for a stock to maintain gains of that magnitude.
We’re talking about a run-up from $16 at the bottom to $114 at the top. That rally might have been overdone, though. This included the digital advertising market, so it makes sense that TTD stock rallied in 20. After the onset of Covid-19, the market placed a high premium on almost anything and everything digital.