What happened
Shares of The Trade Desk (TTD -0.54%) soared 24% over the past week, according to data provided by S&P Global Market Intelligence, after the advertising technology provider's growth proved resilient despite an industrywide downturn.
So what
Investors cheered Trade Desk's fourth-quarter earnings report released on Wednesday. The adtech platform's revenue jumped 24% year over year to $491 million. Trade Desk's performance was much better than that of its larger rivals Meta Platforms and Alphabet, which both saw their ad sales decline in the fourth quarter.
"I don't think we've ever had the level of industry outperformance in our six years or so as a public company as we did in 2022. And it means that we can be very confident that we're gaining share and that our platform continues to gain traction with advertisers," said CEO Jeff Green during a conference call with analysts.
All told, Trade Desk's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) climbed 28% to $245 million. These strong results and encouraging ongoing sales trends prompted Trade Desk to announce a new $700 million share repurchase program.
Now what
Trade Desk is providing marketers the tools to effectively reach consumers at a time when privacy initiatives are weakening Facebook's and Google's data-collection and ad-targeting capabilities. Trade Desk is a leader in the rapidly expanding connected TV market. Its partnerships with leading streaming services, such as Disney and Paramount Global, should continue to fuel the growth of its highly regarded ad platform.
