The Trade Desk Inc. (NASDAQ:TTD) has been ticking all the boxes to be considered as a solid pick for the growth stock portfolio. The company’s share price has been rallying at a robust pace over the last three years; TTD stock price soared more than 80% over the previous twelve months. Trade Desk shares grew almost 20% today, driven by higher than expected growth in revenue and earnings for the fourth quarter of fiscal 2017.

The company has been aggressively investing in the growth opportunities to expand their market share. In 2017, Trade Desk spent almost $1.55 billion in growth opportunities. It opened offices in France; Paris; Spain; Madrid; China in addition to Seattle and Washington.

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Trade Desk Q4 Results Aids Share Price Movement

The company has beaten revenue and earnings estimates by a wide margin of $0.9 million and $0.11 per share, respectively. Its revenue of $102 million increased 41% from the past year period, while net income grew 63% year over year to $16.8M.

Trade Desk had 657 active customers at the end of the fourth quarter – retention rate stood over 95%.

The CEO said, “Our mission has always been to change the way advertising is bought on our software platform, and 2017 marked a year of great strides toward that goal.  Exiting the year, we had more of the largest brands in the world spending on our platform than ever before as they recognize we are the only purely independent platform buying media at scale, objectively, across digital channels and devices.“

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Outlook for 2018 Improves Stock Price Fundamentals

The company expects to extend the momentum into 2018; thanks to its recent strategic investments and its momentum to adopt programmatic advertising on its platform worldwide.

TTD plans to increase its investment in growth opportunities to $2.1 billion in 2018 from $1.55 billion last year. The revenue is likely to hit a new record level of $403 million in 2018, higher from the previous record annual revenue of $308 million.

“In the year ahead, we are launching an enhanced user experience on our platform based on data visualization, and we are unveiling robust media planning tools that will leverage our data to optimum model campaigns,” the CEO added.

Overall, Trade Desk’s higher revenue and earnings growth appear to support the share price movement.

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