The digital marketing industry is set to grow from $410.70 billion in 2024 to $1.19 trillion by 2033, with key players like Thryv Holdings, The Trade Desk, and HubSpot leading the charge. Their innovative strategies and acquisitions are positioned to capitalize on significant market opportunities, making them stocks to watch for investors looking to dive into digital advertising.
The world of digital marketing is heating up! With projections that the global digital marketing industry will skyrocket from $410.70 billion in 2024 to an astounding $1.19 trillion by 2033, it’s clear that now is a fantastic time to pay attention to this sector. That’s a compound annual growth rate (CAGR) of 11.2%, which means businesses are embracing everything that digital advertising has to offer.
For investors interested in capitalizing on this digital revolution, a few key stocks are making waves in the market. Thryv Holdings, Inc. (THRY), The Trade Desk, Inc. (TTD), and HubSpot, Inc. (HUBS) stand out as bright stars in the digital ad universe.
First up is Thryv Holdings, a company that provides a range of digital marketing solutions tailored specifically for small and medium-sized businesses. Their offerings include customer relationship management (CRM), search engine optimization (SEO), digital advertising, appointment scheduling, and payment processing. Quite handy, right?
Recently, on October 31, 2024, Thryv completed an impressive $80 million acquisition of Infusion Software, Inc. (Keap), which enhances their software as a service (SaaS) capabilities. In the fiscal third quarter ending September 30, 2024, Thryv reported revenue of $179.85 million and an adjusted gross profit of $116.84 million, reflecting a nice 5.6% yearly increase. Talk about growth!
Analysts are optimistic, expecting Thryv’s earnings per share (EPS) and revenue for Q4 2024 to jump 97.9% year-over-year to reach $183.02 million. Not surprisingly, Thryv has solid grades in Growth and Value, showcasing its potential in the competitive software industry where it currently ranks #25 out of 40.
Another significant player to consider is The Trade Desk, which is revolutionizing how digital advertising campaigns are managed. Their cloud-based platform really aims to boost the performance of advertising efforts, which is crucial for businesses today.
On November 14, 2024, TTD stockholders approved a strategic move to reincorporate from Delaware to Nevada, indicating a shift in their organizational structure to possibly capitalize on better opportunities. As for their financial performance, in Q3 2024, The Trade Desk achieved revenue growth of 27.3% year-over-year, totaling $628.02 million, with operations income soaring an incredible 187.9%.
Looking ahead, TTD forecasts another revenue surge of 25.3% for Q4 2024, reaching $759.32 million. With a remarkable stock gain of 27.1% over the past six months, it’s clear that investors have been optimistic about TTD’s future. They hold an impressive A grade in Growth and a B for Quality in their POWR Ratings.
Last but definitely not least, we have HubSpot, known widely for its cloud-based CRM platform that perfectly caters to mid-market B2B companies. HubSpot’s recent acquisition of Cacheflow on October 30, 2024, is set to enhance its Commerce Hub offerings, driving further growth.
In their Q3 2024 earnings report, HubSpot announced a 20.1% year-over-year revenue increase to $669.72 million, with non-GAAP operating income rising by 35.9% to $125.21 million. HubSpot consistently exceeds consensus estimates and is expected to report a revenue of $673.96 million in Q4, which translates to a 15.8% increase year-over-year.
With a 24.6% stock increase over the last six months and a steady 22.3% rise over the past year, HubSpot’s growth grades further solidify its reputation, earning an A in Growth and a B in Sentiment.
As the digital marketing landscape evolves, keeping an eye on these exceptional stocks could provide valuable opportunities. With significant growth potential and innovative strategies, organizations like Thryv, The Trade Desk, and HubSpot are well-positioned to thrive in the exciting years to come. Whether you’re a seasoned investor or just dipping your toe into the stock market, these digital advertising stocks are definitely worth watching!
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