Trade Desk's Technological Innovation Drives Dominance: Analyst Foresees Revenue Surge In Coming Years

William Blair analyst Ralph Schackart initiated coverage on The Trade Desk Inc TTD with an Outperform rating. 

The analyst cites the company's proprietary, technologically forward platform based on a differentiated offering designed to improve client experience.

The analyst is bullish on TTD's high margin profile, robust top-line growth, and vast market opportunity on the domestic and international front. 

Notably, the analyst notes substantial market opportunity for the company, with global ad spending estimated at roughly $840 billion (as per Magna Global), and the global advertising market is projected to surpass $1 trillion by 2027.

However, Schackart sees a weak macroeconomic environment, stringent regulation, and the ability to maintain its roughly 20% take-rate as a matter of concern.

Schackart estimates revenue growth of about 23% to $1.94 billion, EBITDA of $775 million, and the adjusted EBITDA margin of about 40% in FY23.

For FY24, the analyst expects revenue of $2.39 billion and EBITDA of $969 million.  

Also Read: Analyst Sentiments Mixed on Trade Desk: Solid Results but Concerns Over Valuation and UID2 Adoption Loom

Price Action: TTD shares are trading higher by 0.25% at $81.62 on the last check Wednesday.