The Trade Desk cracks the programmatic code
In 3Q17 The Trade Desk (Nasdaq: TTD) delivered $79.4 million in revenue, with growth of 50% year-to-year. The company’s combination of revenue growth and net income ($10.2 million in the quarter) is a testament to its consistent go-to-market strategy whereby the majority of its business is generated by global agencies via a SaaS delivery model. The Trade Desk is a significant demand-side platform (DSP) vendor in the $32 billion advertising technology (ad tech) sector, a subsegment providing key infrastructure that supports the larger $200 billion digital ad industry. Despite being in growth mode and recently going public, The Trade Desk’s quarterly business performance has been consistent compared to publicly traded programmatic peers such as Rocket Fuel (taken private by Vector Capital in 3Q17), Telaria Inc. (Nasdaq: TLRA, formerly Tremor Video) and Marin Software (Nasdaq: MRIN), which have struggled to sustain revenue growth, scale and profits.