Trade Desk Predicts Robust Quarterly Revenue, Shares Surge

The latest quarterly report from Meta Platforms suggests a notable resilience in the online advertising market, buoyed by increased ad spending from companies seeking to tap into robust consumer expenditure.

Trade Desk, a prominent player in the sector, projected first-quarter revenue that surpassed market expectations on Thursday, fueled by robust demand for its digital advertising services amidst a strong ad market. This announcement led to a significant 19% surge in its shares during extended trading.

The positive indicators in the online advertising space, mirrored in Meta Platforms’ performance, alleviate concerns surrounding the outlook for the firm. These concerns had arisen following a decline in the company’s stock price in November, attributed to weakened ad spending stemming from strikes in the automotive and media sectors.

Trade Desk operates as an ad-buying platform, boasting a marketplace comprising over 200 companies, including prominent names like ESPN, Hulu, and Fox, providing advertisers with a platform to display their ads.

The ad tech company anticipates first-quarter revenue to reach at least $478 million, surpassing estimates which stood at $451.9 million, according to data from LSEG.

In the quarter ending on December 31, revenue amounted to $605.8 million, surpassing the average analysts’ projection of $582.2 million. On an adjusted basis, the company reported earnings of 41 cents per share, slightly below estimates of 43 cents per share.