News Summary
The digital marketing industry is experiencing tremendous growth, projected to expand from $410.70 billion in 2024 to $1.19 trillion by 2033. As businesses seek effective digital advertising solutions, companies such as Thryv Holdings, The Trade Desk, and HubSpot are emerging as significant players. Each has demonstrated robust financial performance and strategic acquisitions, positioning them well for the future. This article examines the investment potential in these stocks as they capitalize on the evolving digital landscape.
Exciting Times Ahead for Digital Advertising Stocks!
As we step into an exciting new era of marketing and advertising, the digital landscape is booming more than ever. Experts predict that the global digital marketing industry will skyrocket from $410.70 billion in 2024 to a whopping $1.19 trillion by 2033, thanks to an impressive 11.2% compound annual growth rate (CAGR). This growth not only signifies the shift we’re seeing in consumer behavior but also opens up intriguing investment opportunities in digital advertising stocks. So, let’s take a closer look at three standout companies on the rise: Thryv Holdings, The Trade Desk, and HubSpot.
Thryv Holdings, Inc. (THRY)
First up is Thryv Holdings, Inc. (THRY), a company that’s all about empowering small to medium businesses with its comprehensive digital marketing solutions. They offer an array of tools, including customer relationship management (CRM), search engine optimization (SEO), digital advertising, appointment scheduling, and payment processing. Essentially, they help businesses streamline their operations and thrive online!
Recently, on October 31, 2024, Thryv completed an exciting acquisition of Infusion Software, Inc. (Keap) for $80 million. This move boosts Thryv’s SaaS (Software as a Service) offerings even further!
In their fiscal third quarter that wrapped up on September 30, 2024, Thryv reported impressive numbers, with revenues hitting $179.85 million and an adjusted gross profit of $116.84 million, marking a delightful 5.6% year-over-year increase. Their adjusted EBITDA also surged to $19.62 million, indicating a hefty increase of 167.7% over the previous year. Analysts are optimistic that Thryv’s earnings per share (EPS) and revenue for Q4 will soar by a fantastic 97.9% year-over-year, expecting to reach $183.02 million in revenue!
The Trade Desk, Inc. (TTD)
Next, let’s chat about The Trade Desk, Inc. (TTD). This company provides a cutting-edge cloud-based platform that helps businesses manage their digital advertising campaigns effectively. Their primary goal is to enhance campaign performance, ensuring that every marketing dollar spent generates substantial returns.
In a recent development on November 14, 2024, TTD’s shareholders greenlit a significant decision — to reincorporate from Delaware to Nevada. This structural change can have various implications on their future operations.
Now, let’s look at their financials. In Q3 2024, TTD reported a remarkable revenue growth of 27.3% year-over-year, bringing in $628.02 million. Their income from operations skyrocketed to $108.48 million, a staggering increase of 187.9% from the previous year! Looking forward, they expect another solid performance in Q4, predicting a 25.3% revenue increase to $759.32 million and EPS growth of 38.6% to reach $0.57 per share. No wonder investors are buzzing! TTD’s stock gained 27.1% over the past six months alone, with a year-to-date increase of 65.3%, closing at $121.67.
HubSpot, Inc. (HUBS)
Lastly, we can’t forget HubSpot, Inc. (HUBS), a leading player in the cloud-based CRM market. They focus on providing tools that cater to marketing, sales, customer service, and operations, primarily targeting mid-market B2B companies. HubSpot constantly evolves to meet the changing landscape!
Just recently on October 30, 2024, HubSpot acquired Cacheflow, enhancing its Commerce Hub offering. Their Q3 2024 financial report showcased a revenue jump of 20.1% year-over-year, totaling $669.72 million, with non-GAAP operating income at $125.21 million—a remarkable 35.9% increase.
Looking ahead, HUBS anticipates a quarterly revenue of $673.96 million for Q4 2024, representing a solid 15.8% year-over-year rise. They’re also projecting a 24.8% jump in EPS to reach $2.20. HubSpot has consistently exceeded expectations, and its stock price has seen a 24.6% upswing in the past six months and 22.3% over the last year, closing at $714.96.
Wrapping Up
With the digital marketing industry flourishing, it’s an exciting time to explore the potential of stocks like Thryv Holdings, The Trade Desk, and HubSpot. These firms are well-poised to capitalize on the evolving marketing landscape. Whether you’re an investor looking to diversify or simply curious about the future of digital advertising, keeping an eye on these companies could prove to be quite rewarding!
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