The Trade Desk - Built for What Matters

[Sijoittaja-alokas]

I’ve been regretting for a while that this company doesn’t have its own thread, so I decided to create one now.

The Trade Desk is the world’s largest independent demand-side platform (DSP), offering advertisers the ability to purchase digital ad space in real-time across various channels. The company’s platform leverages advanced data analytics and artificial intelligence to improve ad campaign targeting.

In 2024, the company’s revenue was $2.44 billion and net profit was $393 million. The operating margin is strong, and the cash position is good. Customer loyalty is high within the company, and it has grown well internationally. Trade Desk competes with Google and Meta, among others, but distinguishes itself through transparency and technological advancement.

DSP is not a very familiar concept to me, so I asked AI about it:

DSP (Demand-Side Platform) is a platform used in advertising technology that allows advertisers to purchase digital ads automatically and in real-time from various channels – such as websites, mobile applications, streaming services (like CTV), podcasts, and other digital media.

A DSP connects to multiple ad exchanges and uses data – e.g., users’ browsing behavior, location, or device information – to target ads as precisely as possible to the right audiences, at the right time, and in the right place.

Investor’s Perspective

The Trade Desk operates at the core of digital advertising by efficiently connecting advertisers and thousands of platforms offering ad space online. Its technology enables real-time ad “auctions,” data-driven targeting, and continuous effective optimization of ad campaigns. The company benefits from the growth of digitalization and the open internet; furthermore, its scalable business model and strong cash position support long-term growth.

The biggest risks relate to competition among technology companies, especially concerning closed ecosystems like Google and Meta, which have ample resources. The cyclical sensitivity of advertising and potential regulatory changes can also affect demand. The company’s aggressive growth requires continuous investments, which may temporarily weigh on profitability. The market is also technically complex and constantly changing.

Overall, Trade Desk likely offers a relatively attractive combination of growth potential, profitability, and technological competitive advantage. If the trend continues to shift away from closed platforms towards the open web, The Trade Desk could be one of the biggest winners in the redistribution of “ad spend.”

Further Reading

Collected 29.3.2025

2024

2024/Q4

[Sijoittaja-alokas]

Tässä on vähän erilaisia näkemyksiä TDD:stä.

Here are some different views on TDD.

Oli justiinsa Quality stocksin viikon osakkeena.

It was just Quality Stocks’ stock of the week.

https://x.com/Quality_stocksA/status/1905915736540709010

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Tässä on tviittiketju yhtiöstä, varmaan parempi tapa tutustua yhtiöön, kun mun aloitusviestini. Mukana tviittiketjussa video, joten jos on X-tili, niin kannattaa linkin kautta käydä lukaisemassa.

Here’s a tweet thread about the company, probably a better way to get to know the company than my initial post. The tweet thread includes a video, so if you have an X account, you should check it out via the link.

https://x.com/thexcapitalist/status/1901998534401888486

[details=“Loppuosa tviittiketjusta”]

Rest of the tweet thread

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Alla olevassa tviitissä ilmaistaan, että TTD:n kasvu hidastuu odotuksiin nähden ja vaikka johto on optimistinen, niin tekoäly voi mullistaa mainonnan ja heikentää yhtiön asemaa pitkällä aikavälillä. Arvostusta tviittaja pitää korkeana. .)

The tweet below states that TTD’s growth is slowing compared to expectations, and although management is optimistic, AI could revolutionize advertising and weaken the company’s position in the long term. The tweeter considers the valuation high.

https://x.com/Luce_On_TSLA/status/1903978442280108425

[Sijoittaja-alokas]

The Trade Desk delivered a strong first quarter, with significant revenue growth and very high customer loyalty.

The company also reported that first-quarter results exceeded expectations, influenced by strategic changes made in late 2024.

According to CEO Jeff Green, marketers are now more actively seeking ways to leverage the open internet to reach consumers. The Trade Desk believes it stands out from competitors by offering solutions based on transparency and data that closed systems cannot match.

https://x.com/StockSavvyShay/status/1920570328012763212

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Official Materials

[Sijoittaja-alokas]

Here are the figures conveniently in a comparison table.

https://x.com/ConsensusGurus/status/1920815042502512823

[Sijoittaja-alokas]

The message below provides an overview of TTD.

The tweet highlights how the company has accelerated its share buybacks, enabled by strong revenue and earnings growth. Of course, buybacks often signal management’s confidence in the stock’s valuation and the company’s future, but a reduction in the number of shares can support earnings per share, even though stock-based compensation has had a small “counteracting effect.”

https://x.com/MichaelZero10/status/1920817104879583469

[Sijoittaja-alokas]

This tweet has interesting observations about The Trade Desk.

The company’s research and development investment has grown, but the revenue growth it generates has slowed down. In 2017, R&D investment generated growth more efficiently than in 2024, although the level is still good.

https://x.com/invest091/status/1936167172025577647

[Marmoset]

TTD’s share price is up approximately +15% in pre-market trading today.

The reason is the stock’s inclusion in the S&P 500 index, which is expected to happen this Friday. So, there will be technical buying pressure for some time.

[Sijoittaja-alokas]

The Trade Desk had a good second quarter. Revenue grew significantly and customer loyalty remained very strong – as it has been for years. The company also spent a significant amount of money on share buybacks and reportedly continues to invest in that direction.

CEO Jeff Green stated that the company continues to lead the digital advertising market, especially with the help of AI, data, and new innovations. The development of the Kokai platform, CTV and retail media investments, and strengthening partnerships bring added value to customers and also support the open internet.

https://x.com/YeboahWalee/status/1953552513200009575

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Company’s own materials:

[Marmoset]

At least the quarter went reasonably well… although the stock price in premarket seems to have already dropped by -32%, falling below $60.

Based on market comments, the departure of the long-term CFO (who will continue in their role until the end of the year) has been perceived negatively, as have somewhat subdued estimates for the rest of the year.

[Sijoittaja-alokas]

Yeah, the numbers were fine in themselves: revenue +19 percent, EBITDA margin 39 percent, and customer retention over 95 percent.

The guidance was indeed weak, and I didn’t think about that CFO thing. And it’s possible that those longer-term comments were a bit of fluff and patching up.

And I really didn’t guess that the stock reaction would be so strong, not at all (“surprise” ), but I really didn’t pay enough attention to those things.

Here are some points regarding the stock drop:

https://x.com/wallstengine/status/1953800947479851465

[Sijoittaja-alokas]

The tweet states that Walmart is one of Trade Desk’s most important clients… and according to the news, Walmart is withdrawing from the collaboration.

A potential termination of the agreement would be a big deal for TTD… the partnership was already being renegotiated last year.

https://x.com/samsolid57/status/1955999772856209664

[Sijoittaja-alokas]

The Trade Desk is an independent advertising platform (DSP) that particularly benefits from the growth of streaming television advertising (CTV). The first quarter offered a strong “recovery” in results, but Q2’s sluggishness and cautious Q3 outlook raise questions about the sustainability of growth.

However, the fundamentals have remained strong; customer retention is over 95%, international CTV consumption is growing faster than the domestic market, and the company is recognized as an industry leader.

The stock price has plummeted nearly 68% from its peaks, which creates an opportunity for investors, at least according to a tweet – but the next earnings reports will determine the direction.

https://x.com/SergeyCYW/status/1968677411098345856

[Sijoittaja-alokas]

The Trade Desk’s stock fell today after Amazon was reported to be offering advertising agencies free benchmark tests between its own advertising platform and competitors’.

Amazon plans to fund the tests, where its DSP will be compared to others, adding pressure to The Trade Desk.

https://www.investing.com/news/stock-market-news/the-trade-desk-stock-falls-after-amazon-offers-free-dsp-testing-4308577

[Sijoittaja-alokas]

The Trade Desk had a strong quarter; revenue rose to $739 million and EPS was $0.45. Customer loyalty remained at an impressive over 95 percent, and has been/stayed above that threshold for about 11 years.

According to CEO Jeff Green, growth continues especially due to new Kokai platform innovations. The company believes it is well-positioned to capitalize on the growth of data-driven and AI-powered advertising in the future as well.

https://x.com/earnings_guy/status/1986539452986957948

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Company’s own materials

[Sijoittaja-alokas]

In the “quick overview” below, it is highlighted that the company is still making strong profits and growth looks promising, but on the other hand, the valuation is high and market expectations are slightly missed.

Investors are probably wondering most about whether the company’s direction will remain the same or actually slightly better, which might justify the current valuation.

https://x.com/TheRayMyers/status/1993024389730742573

[Sijoittaja-alokas]

The tweet below highlights that The Trade Desk is the world’s largest independent digital advertising platform and a clear market leader in CTV advertising.

The new Kokai platform utilizes AI and, according to the tweet, brings advertisers up to 24 percent savings in conversion costs, with almost half of ad budgets now directed towards streaming.

Partnerships with industry giants, as well as innovations like OpenPath and Unified ID 2.0, strengthen the company’s position, according to the tweeter, even though the stock is still moderately priced.

https://x.com/BourbonInsider/status/1997295868454555701

[Hessuli]

Interesting that the valuation is at 2019 levels when comparing revenue and profit to current levels. There seems to be a lot of fear about the company’s development, I’ll keep an eye on the price trend in case I open a position here at some point.