8 High Growth Software Stocks That Are Profitable In 2024

6. The Trade Desk Inc. (NASDAQ:TTD)

TTM Net Income: $253.36 Million

5-Year Net Income CAGR: 21.00%

5-Year Revenue CAGR: 31.16%

Number of Hedge Fund Holders: 46

The Trade Desk Inc. (NASDAQ:TTD) is a leading advertising technology company that specializes in advertising solutions for digital marketers. It offers a self-service, transparent software and cloud-based platform that allows advertisers to create, manage, and optimize their digital ad campaigns across various channels and devices.

The company is focused on enhancing its advertising technology with the recent launch of its innovative platform, Kokai. This platform allows clients to utilize data about their most loyal customers to identify and target new audiences. By leveraging AI, Kokai helps advertisers navigate approximately 15 million ad opportunities every second, optimizing their campaigns in line with their unique growth objectives. The company has also made significant progress in Connected TV (CTV) and retail media, strengthening its partnerships with major networks like Netflix and FOX to help engage their audiences and drive results.

In Q2 2024, The Trade Desk Inc. (NASDAQ:TTD) reported impressive financial results, with revenue reaching $585 million, marking a 26% increase year-over-year. Net income also saw substantial growth, rising to $85 million from $33 million in the same quarter last year. The company finished the second quarter with a solid cash and liquidity position, holding $1.5 billion in cash, cash equivalents, and short-term investments. In Q2 2024, The Trade Desk maintained a customer retention rate of over 95%, continuing a trend that has lasted for the past ten years.

TTD ranks among the most profitable high-growth stocks to invest in. Over the past five years, the company has seen its revenue grow at a compound annual growth rate (CAGR) of 31.16%, with net income increasing at a CAGR of 21%.

With ongoing innovations and a strong market position, The Trade Desk Inc. (NASDAQ:TTD) presents a compelling investment opportunity for those looking to capitalize on the evolving landscape of digital advertising.

As of the second quarter of 2024, The Trade Desk Inc. (NASDAQ:TTD) was held by 46 hedge funds, according to Insider Monkey’s database. Parnassus Investments stated the following regarding The Trade Desk Inc. (NASDAQ:TTD) in its “Parnassus Mid Cap Fund” second quarter 2024 investor letter:

“The Trade Desk Inc. (NASDAQ:TTD), a cloud-based media-buying platform for advertisement purchasers, reported a strong quarter based on increasing demand for connected TVs. The stock received another boost after the company announced a partnership with Netflix, which should accelerate Trade Desk’s growth.”