The Trade Desk (TTD +21%) is trading at all-time highs after the company reported a massive ‘beat and raise' yesterday afternoon.
The advertising technology company has beaten quarterly estimates all three quarters since it sold 4.7 million shares at $18 in its IPO last September.
The Trade Desk is the only purely independent, scaled, omnichannel demand side platform. The company says it is the answer for agencies and brands looking for a data-driven, easy-to-use, platform solution that delivers a better ROI for their ad dollars.
The advertising industry is still in the early stages of its programmatic transformation and The Trade Desk is taking share, powering 7 out of the 10 biggest brands in programmatic advertising, according to an Ad Exchanger report. One of the company's strongest strategic assets is the differentiation from competition provided by the independence and objectivity that comes with not owning media.
The Trade Desk reported first quarter adjusted EBITDA 47% year-over-year to $6.3 million with sales up 76% to $53.4 million. The company had guided for breakeven adjusted EBITDA on sales of $43 million.
Management said that nearly everything went right in the first quarter. The Trade Desk reported a 95% plus customer retention rate for the 13th quarter in a row.
The upside came from new business wins from both brands and agencies. TTD won one of the world's biggest banks as a new customer, one of the major shoe companies, and a couple additional auto manufacturers. The company also confirmed that it won business form Procter & Gamble (PG), the world's largest advertiser.
Management said trends remain extremely positive with the company's biggest growth drivers: international, mobile and video. Mobile spend represented over one third of total business and grew 113% year over year.
The Trade Desk guided second quarter revenue 10% above Wall Street estimates.
For fiscal 2017, the company raised its sales growth forecast to 44% from 33%.
The Trade Desk has a $2.1 billion market cap. The stock trades at just over 7x sales, which is higher than the average cloud stock but cheaper than some of the higher quality ones. What really differentiates TTD from a typical small-cap growing SaaS company is the fact that it has been profitable on a GAAP basis since 2013.