The Trade Desk names Vivek Kundra as new COO

VENTURA, Calif. - The Trade Desk (NASDAQ:TTD), a key player in advertising technology with a market capitalization of nearly $30 billion and impressive gross margins of 81%, has appointed Vivek Kundra as its new Chief Operating Officer, effective March 31st. According to InvestingPro data, the company maintains strong fundamentals with a "GOOD" financial health score, despite recent market volatility. Kundra, who previously held the position of the United States’ first Chief Information Officer, will be responsible for overseeing the company’s global operations and driving operational excellence.

Kundra’s extensive background includes spearheading bipartisan initiatives to enhance government operations’ efficiency and reduce costs during his tenure as the U.S. Government’s CIO from 2009 to 2011. He managed a $80 billion technology investment portfolio, led the transition to cloud computing, improved national cybersecurity, and initiated an open government movement.

After his government service, Kundra joined Salesforce as Executive Vice President, Industries, where from 2012 to 2017 he played a pivotal role in quadrupling the company’s revenue to $8.4 billion. His leadership was instrumental in Salesforce’s expansion into key industry verticals and the development of cloud-based industry-specific solutions.

Prior to joining The Trade Desk, Kundra also served as COO at prominent software organizations, including Sprinklr and project44, further honing his operational leadership skills.

Jeff Green, CEO and Co-Founder of The Trade Desk, expressed confidence in Kundra’s alignment with the company’s long-term growth objectives, citing the need for operational rigor to sustain the company’s significant growth in revenue, personnel, and global reach. The company has demonstrated strong performance with revenue growth of 26% in the last twelve months, though InvestingPro analysis reveals 12 analysts have recently revised their earnings expectations downward for the upcoming period.

Kundra himself commented on the opportunity at The Trade Desk, highlighting his commitment to operational excellence as a catalyst for growth. He noted The Trade Desk’s role in the digital transformation of advertising and expressed enthusiasm for driving the company’s growth ambitions.

The appointment comes as The Trade Desk continues to expand its global presence and capabilities in the dynamic digital advertising market. While the company’s stock has experienced a significant decline of 44% over the past six months, its strong balance sheet position and robust cash flows suggest resilience. Kundra’s track record and expertise are expected to contribute to the company’s strategic growth and operational efficiency. For deeper insights into The Trade Desk’s valuation and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, which are available for over 1,400 US stocks.

This move is based on a press release issued by The Trade Desk.

In other recent news, The Trade Desk’s fourth-quarter earnings report revealed revenues of $741 million, marking a 22.3% year-over-year increase but falling short of the company’s guidance of at least $756 million. This miss in guidance was the first for The Trade Desk in 33 quarters, a significant development for the company. Following these results, DA Davidson adjusted their price target for The Trade Desk to $103, while maintaining a Buy rating. Similarly, Loop Capital reduced their target to $101, also retaining a Buy rating. JMP analysts, however, reaffirmed a Market Outperform rating with a $115 target, citing The Trade Desk’s strong market position despite the recent guidance miss.

Truist Securities maintained a Buy rating with a $130 target, expressing confidence in the company’s fundamentals and long-term growth prospects. Benchmark, on the other hand, retained a Sell rating with a $57 target, pointing to challenges with the Kokai platform and sales execution. Analysts noted that The Trade Desk’s strategic adjustments, including a reorganization of engineering and sales teams, aim to enhance client service and market reach. These developments are part of The Trade Desk’s efforts to address recent operational difficulties and leverage growth opportunities in Connected TV and Retail Media.

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