The ad-tech sector has taken it on the chin over the last couple years, with the ever-growing dominance of Facebook and Google, early stage investors impatient for an exit and increased public scrutiny over the use of personal data for ad targeting.
However, The Trade Desk, which primarily offers a programmatic media buying tool known as a demand-side platform (DSP), continues to post impressive financials since listing publicly in 2016.
Last week the company reported revenues of $112 million for the three months to June 30, representing a rise of 54 percent year-over-year, with the California-based outfit further increasing its full-year forecast to $456 million, up from its earlier $433 million estimate.
Speaking on the company’s subsequent earnings call, The Trade Desk CEO Jeff Green commented that his company was able to benefit from some of the headwinds faced by the rest of the industry such as the EU’s General Data Protection Regulations (GDPR) and marketers’ increased focus on transparency in programmatic trading practices.
These numbers clearly impressed investors with its stock pricing rising by more than 36.4 percent, valuing it at circa $5 billion within the 24-hour period after the filing.
However, despite the prolonged success of The Trade Desk on the public markets, some have questioned whether or not its much-vaunted success and market valuation is overinflated, especially in the long term.