The Trade Desk reported Q2 revenue of $72.8 million, a 54% year-over-year increase from the same period last year, and increased its full-year revenue expectations to $303 million.
The jump was attributed to growth in mobile advertising as well as consolidation in the ad-tech sector, especially among demand-side platforms, Jeff Green, the company’s founder and CEO, noted.
In addition, the firm said it generated $10.7 million in cash from operations and opened its 20th office located in Shanghai.
A wave of consolidation has roiled ad tech over the course of the last year, with Sizmek acquiring Rocket Fuel, Rubicon Project exiting its demand-side business and Amobee snapping up Turn. Most recently, Tremor Video sold its DSP business to Taptica.
But The Trade Desk appears to be holding strong, with its stock price hovering between $50 to $55, which is well above its $18 IPO price. The firm went public a year ago.
Among the company's Q2 earnings highlights:
Mobile (in-app, video, web) increased to more than one-third of gross spend for the quarter, demonstrating the growing importance of mobile to advertisers.
Native spend for the quarter surpassed all native spend in 2016, while mobile in-app grew 87% from Q2 2016 to Q2 2017, mobile video grew 171% from Q2 2016 to Q2 2017, and connected TV grew 167% from Q2 2016 to Q2 2017.
Among The Trade Desk's new products and features released in Q2 were “My Reports,” a reporting stack for campaign insights with enhanced customization capabilities; private marketplace troubleshooting tools; and an integration with Placed that allows customers to measure how their digital advertising drives in-store foot traffic.
The company also expanded a partnership with Integral Ad Science that offers reporting in the user interface for viewability, suspicious activity, and brand safety.
The Trade Desk noted its commitment to the Interactive Advertising Bureau Tech Lab’s Ads.txt initiative, a new open standard and technical specification for increasing transparency across the digital programmatic ecosystem.
For its Q3 outlook, the company said it expects to see momentum as ad dollars shift to programmatic, and it plans to make more investments in mobile, video, and connected TV.
Rob Perdue, COO, commented: “We had massive year-over-year growth rates across the board, and during Q2 had all-time record spend in every office located outside the U.S. Our international spend growth percentage outpaced that of the U.S. by a factor of about 3x.
"The adoption of programmatic and the market growth we are seeing across Asia is accelerating, and we believe the same progress will happen over time in our newest location in Shanghai.”