Aug 9 (Reuters) - Ad technology firm Trade Desk Inc on Thursday beat Wall Street estimates for second-quarter revenue as more big advertisers signed up on its data-driven platform for targeted campaigns.
Shares of the Ventura, California-based company rose about 4 percent to $96.44 in after-market trading.
The company, which generates revenue by charging its clients a platform fee based on a percentage of a their total spend on the platform, has been benefiting from the shift in media consumption to digital.
“In the last three months, more of the top 200 worldwide advertisers signed up on our platform,” Chief Executive Officer Jeff Green told Reuters.
The company, which provides data-driven insights to advertisers, faces tough competition from similar divisions of internet giants Alphabet Inc and Facebook Inc and complements the needs of traditional advertising firms such as Omnicom Group Inc and WPP Plc.
Trade Desk, which was founded in 2009, said its overseas business accounted for 15 percent of total spend on the platform – the highest percentage ever. The online platform accounts for about 60 percent of its total revenue.
Net income rose to $19.3 million, or 43 cents per share, in the quarter ended June 30, from $18.9 million, or 43 cents per share, a year ago.
Revenue rose 54.3 percent to $112.3 million, beating average analyst estimate of $104.02 million, according to Thomson Reuters I/B/E/S.
Excluding items, the company earned 60 cents per share.
Reporting by Sonam Rai in Bengaluru; Editing by Arun Koyyur