2024-04-10 05:54:53 ET
Summary
- FY23 revenue increased by 23% to $1.95 billion, driven by enhanced customer spending, acquisition of new customers, rapid growth in CTV and growth in international markets.
- Strong operating leverage expanded its EBIT margin to 10% from 7% a year ago.
- Projecting revenue of $3 billion by FY26, resulting in a forward EV/Sales ratio of 13.4x, indicating reasonable valuation given it is in line with historical multiples.
- I rate The Trade Desk stock as a buy given its market-leading position, and growth catalysts including CTV.
Investment Thesis
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The Trade Desk: Solid Execution Justifies Premium Valuation