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The Trade Desk Inc Class A TTD

Morningstar Rating
$94.75 +2.24 (2.42%)
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Company Report

The Trade Desk Earnings: New Partnerships Point to Continued Strong Revenue Growth

Continued strong advertising demand fueled growth at The Trade Desk during the first quarter. Total revenue increased 28% versus a year ago, modestly faster growth than that seen among ad behemoths Alphabet and Meta while handily outperforming Google’s ad network. While we expect ad spending growth will moderate in the coming quarters, we also expect TTD will continue to gain share. Our fair value estimate remains $52 per share. With the shares trading at 17 and 40 times our 2024 revenue and adjusted EBITDA estimates, respectively, we still believe the valuation is stretched.

Price vs Fair Value

TTD is trading at a 96% premium.
Price
$94.75
Fair Value
$38.00
Uncertainty
Very High
1-Star Price
$53.00
5-Star Price
$67.00
Economic Moat
Jspm
Capital Allocation
Ksgptztd

Bulls Say, Bears Say

Bulls

Advertisers will likely shift a percentage of their budgets from social media toward other website publishers, given the improving performance of contextual campaigns, increasing the need for demand-side platforms.

Bears

Growth will be limited in the fragmented non-Google demand-side platform market, given Google’s dominance with a 40% market share (according to Jounce Media). Amazon is also aggressively expanding in this market.

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News

Trading Information

Previous Close Price
$92.51
Day Range
$92.6195.30
52-Week Range
$60.2397.65
Bid/Ask
$94.10 / $94.68
Market Cap
$46.34 Bil
Volume/Avg
4,528 / 3.7 Mil

Key Statistics

Price/Earnings (Normalized)
78.11
Price/Sales
23.19
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
1.04%

Company Profile

The Trade Desk provides a self-service platform that helps advertisers and ad agencies programmatically find and purchase digital ad inventory (display, video, audio, and social) on different devices like computers, smartphones, and connected TVs. It utilizes data to optimize the performance of ad impressions purchased. The firm’s platform is referred to as a demand-side platform in the digital ad industry. The firm generates its revenue from fees based on a percentage of what its clients spend on advertising.
Sector
Technology
Industry
Software - Application
Stock Style Box
Mid Growth
Total Number of Employees
3,115

Competitors

Valuation

Metric
TTD
AMZN
GOOGL
Price/Earnings (Normalized)
78.1149.9226.51
Price/Book Value
21.508.687.34
Price/Sales
23.193.236.90
Price/Cash Flow
63.8717.9919.12
Price/Earnings
TTD
AMZN
GOOGL

Financial Strength

Metric
TTD
AMZN
GOOGL
Quick Ratio
1.770.831.98
Current Ratio
1.791.072.15
Interest Coverage
15.35285.78
Quick Ratio
TTD
AMZN
GOOGL

Profitability

Metric
TTD
AMZN
GOOGL
Return on Assets (Normalized)
14.37%11.69%25.77%
Return on Equity (Normalized)
30.69%31.44%36.64%
Return on Invested Capital (Normalized)
25.60%17.95%32.10%
Return on Assets
TTD
AMZN
GOOGL
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