The Trade Desk, Inc. late Thursday reported its first financial results since it became a public company in late September. The ad-tech platform announced Q3 results that showed an 84% year-over-year increase in revenue for the quarter coming in at $53 million, compared to $28.8 million for the same period a year ago.
“Media buyers find enormous value in the ability to look at millions of ad opportunities every second across devices and formats, using data to make the best decisions in real time,” stated Jeff Green, founder and CEO of The Trade Desk.
The company’s net income was $3.6 million and adjusted EBITDA $16.6 million for the quarter. Green said that the company saw strong “momentum” from customers in their adoption of programmatic advertising.
“The Trade Desk results demonstrate that programmatic adoption continues to grow as marketers seek to reach an increasingly fragmented audience spread across traditional and digital media outlets,” Mark Goldman, CEO of Zypmedia, told Real-Time Daily via email. “This evolutionary shift in media buying is beginning to take hold in more markets, including the local market in which we operate, and incorporate additional advertising formats such as native."
Q3 highlights include:
--Completion of the company’s initial public offering (IPO). The Trade Desk began trading on the NASDAQ on Sept. 21. Net proceeds from the IPO were approximately $73.6 million, after underwriting discounts and other offering costs.
--Continued omnichannel growth: Third quarter gross spend with non-display campaigns increased to more than half of gross spend for the first time, driven by mobile and audio channels. The company said omnichannel solutions remain a focus as the industry tries to shift toward greater transparency and programmatic buying.
--Customer retention rate was more than 95% during Q3.
--The company in Q3 launched a new user interface update, a new version of its viewability product, and hyperlocal mobile targeting. It reported improvements to enterprise APIs, new cross-device targeting capabilities, and audio channel offerings.
--The Trade Desk expanded its presence, opening offices in Hong Kong and Orange County, California. New offices are planned for the European and Asia Pacific markets.
The Trade Desk reported aiming for $62 million in revenue for Q4 and an adjusted EBITDA margin of 30%.