The Trade Desk (TTD) IPO Opens Up 60%

Today's IPO for The Trade Desk (NASDAQ: TTD) opened for trading at $28.75 after pricing its initial public offering of 4,666,667 shares of its Class A common stock at a price to the public of $18 per share, the top end of the $16-$18 range which was recently raised from $14-$16.

Citigroup, Jefferies and RBC are acting as joint book-running managers for the offering. Needham & Company and Raymond James are acting as co-managers.

The underwriters have been granted a 30-day option to purchase an additional 700,000 shares of Class A common stock from certain selling stockholders.

The Trade Desk is a technology company that empowers buyers of advertising. The Trade Desk provides a self-service platform that enables ad buyers to manage data-driven digital advertising campaigns using their own teams across various advertising formats, including display, video, and social, and on a multitude of devices, including computers, mobile devices, and connected TV.

The company's revenue was $113.8 million in 2015, representing a growth rate of 156% over $44.5 million in 2014, while programmatic advertising spend in the industry grew from $10 billion to $14 billion, according to Magna Global, representing a growth rate of 40% over 2014.

The company generated net income of $5,000 in 2014 and $15.9 million in 2015. They generated $5.7 million of Adjusted EBITDA in 2014 and $39.2 million in 2015. Net income was $5.7 million for the six months ended June 30, 2015 and $6.6 million for the six months ended June 30, 2016. Adjusted EBITDA was $11.1 million for the six months ended June 30, 2015 and $20.1 million for the six months ended June 30, 2016.

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