Jeff Green, CEO, The Trade Desk

Scott Mlyn | CNBC

Shares of The Trade Desk jumped over 18% on Thursday after the advertising technology company issued strong first-quarter guidance and beat on revenue.

Here’s what analysts were expecting:

  • Earnings per share: 41 cents, adjusted vs. 43 cents expected by LSEG, formerly known as Refinitiv
  • Revenue: $606 million vs. $582 million expected by LSEG

Fourth-quarter sales jumped 23% from $491 million a year ago. Net income rose 37% to $97 million, or 19 cents a share, from $71 million, or 14 cents, in the same quarter a year earlier.

The Trade Desk said first-quarter sales will be at least $478 million, topping analyst estimates of $452 million, according to LSEG.

The company said its board has approved an additional $647 million in share repurchases, bringing the total amount of future buybacks to $700 million. Repurchases totaled $220 million in the fourth quarter.

The Trade Desk specializes in providing technology to companies that want to target users across the web, and has capitalized on the continuing shift in corporate ad budgets from traditional television to connected TVs and streaming platforms.

“More and more of the world’s leading advertisers are gravitating to channels and partnerships that offer precision and premium value at scale, such as Connected TV (CTV) and retail media,” Trade Desk CEO Jeff Green said in a statement.

The Connected TV market is expected to grow in 2024 alongside a broader recovery in the overall digital advertising market that’s helped bolster Meta, Alphabet and Amazon.

Among the major digital ad platforms, Amazon had the best fourth quarter, with its ad business growing 27%. Meta reported growth of 24%, boosted by increased spending from Chinese online retailers. Google’s ad business lagged its closest rivals, with its ad business expanding 11% from a year earlier.

WATCH: Connected TV is the most effective advertising in the world right now.