December 31, 2024

Exciting Times for Digital Advertising Stocks as the Market Grows

Real Internet Sales

Real Internet Sales is a digital marketing agency located in Columbia, South Carolina. We specialize in website design and development, SEO, social media management, online advertising, AI integration, and workflow automation. Our services also include affiliate marketing and digital strategy.

Real Internet Sales also offer specialized programming for real estate firms, using IDX and RETS feeds to automatically populate MLS properties on their websites for improved property listings and sales. We also work with clients in the restaurant, tourism, and e-commerce industries to enhance their digital presence and streamline operations.

News Summary

The global digital marketing industry is on the verge of explosive growth, set to increase from $410.70 billion in 2024 to $1.19 trillion by 2033. Key players like Thryv Holdings, The Trade Desk, and HubSpot are making significant strides with strategic acquisitions and impressive revenue increases. These stocks are capturing investors’ attention as they prepare for a promising future in digital advertising. With a compound annual growth rate of 11.2%, the marketing landscape is evolving, making these companies crucial to watch in the coming years.

Exciting Times for Digital Advertising Stocks as the Market Grows

In the ever-changing world of digital marketing, there’s a buzz in the air! Bulging from a solid $410.70 billion in 2024, the global digital marketing industry is poised for a jaw-dropping leap to $1.19 trillion by 2033. With a compound annual growth rate (CAGR) of 11.2%, it’s clear that some key players are catching investors’ attention. In particular, companies like Thryv Holdings, Inc. (THRY), The Trade Desk, Inc. (TTD), and HubSpot, Inc. (HUBS) are shaping up to be quite the contenders in this exciting arena.

Thryv Holdings: A Likeable Player in Digital Solutions

Thryv Holdings, Inc. (THRY) is on a roll! This company is known for its robust digital marketing solutions and handy cloud-based tools specifically designed for small to medium-sized businesses. Think Customer Relationship Management (CRM), search engine optimization (SEO), digital advertising, appointment scheduling, and even payment processing—all at a reasonable price!

Recently, on October 31, 2024, THRY made headlines with its $80 million cash acquisition of Infusion Software, Inc. (Keap). This savvy move significantly boosts its software-as-a-service (SaaS) offerings. And for those following the numbers, in the fiscal third quarter ending September 30, 2024, THRY reported impressive figures with revenues hitting $179.85 million and an adjusted gross profit of $116.84 million, marking a delightful increase of 5.6% year-over-year.

With an adjusted EBITDA of $19.62 million for the same quarter—a whopping increase of 167.7%—THRY’s potential for fourth quarter growth is looking bright, as analysts anticipate an astounding 97.9% year-over-year increase in earnings per share (EPS) and revenues reaching $183.02 million.

The Trade Desk: Boosting Digital Ad Campaigns

Now let’s turn our gaze to The Trade Desk, Inc. (TTD). This powerhouse provides a cloud-based platform that assists advertisers in managing their digital ad campaigns while enhancing performance. In a recent twist, TTD’s stockholders greenlit a reincorporation from Delaware to Nevada on November 14, 2024. This change could be a strong strategic maneuver for future growth.

As if that wasn’t enough, during the third quarter of 2024, TTD reported a significant jump in revenue, growing by 27.3% to reach $628.02 million, while income from operations skyrocketed by a staggering 187.9% to $108.48 million.

Looking ahead to Q4 2024, TTD expects revenues to soar by 25.3% to approximately $759.32 million, with EPS projected to grow 38.6%, reaching $0.57. Stockholders are certainly happy as TTD’s shares have surged by 27.1% over the last six months and a remarkable 65.3% in the past year, closing at $121.67.

HubSpot: Empowering Businesses with CRM Solutions

Last, but certainly not least, is HubSpot, Inc. (HUBS). This star player offers an intuitive cloud-based CRM platform filled with tools that cover marketing, sales, customer service, and operations. HUBS dramatically focuses on mid-market B2B companies, and they’re not slowing down! On October 30, 2024, they made strategic moves by acquiring Cacheflow, which amplifies their Commerce Hub offerings.

In Q3 2024, HUBS boasted a 20.1% year-over-year revenue increase, climbing to $669.72 million. This growth is complemented by non-GAAP operating income, which saw a 35.9% rise to $125.21 million. Analysts are buzzing as expected revenues for Q4 are projected to be $673.96 million—a healthy 15.8% year-over-year increase.

HUBS has demonstrated stellar performance, consistently surpassing consensus EPS and revenue estimates in the preceding four quarters. The stock price recently made waves, climbing by 24.6% in just six months and 22.3% in the last year, settling at $714.96.

Final Thoughts

With these digital advertising stocks showing great promise, it’s fun to think about how the marketing landscape evolves. As we approach 2025, investors and businesses alike will want to keep their eyes glued to Thryv, The Trade Desk, and HubSpot. They may just be the key players to watch as the industry continues its remarkable growth into a new digital age!