The Trade Desk(US:TTD) ZACKSยท2025-08-22 14:15Core Insights - The Trade Desk launched Kokai in 2023, a next-generation platform that integrates advanced AI, measurement, partner integrations, and user experience for programmatic advertising [1] - Kokai has shown significant performance improvements, with clients like Samsung and Cash Rewards reporting increases in campaign effectiveness [2][11] - The adoption of Kokai is accelerating, with three-quarters of clients using it and full adoption expected by the end of 2025 [3][11] Performance Metrics - Samsung achieved a 43% increase in reaching its target audience for an omnichannel campaign in Europe, while Cash Rewards saw a 73% improvement in cost-per-acquisition for campaigns in Asia [2] - Campaigns on Kokai are showing over a 20-point increase across key performance indicators [2][11] - Clients shifting their spend to Kokai are increasing overall investment in The Trade Desk by more than 20% faster than others [3] Revenue and Growth Projections - The Trade Desk reported a 19% year-over-year revenue growth, driven by Kokai and strength in connected TV [5] - The company forecasts a 14% revenue increase for the third quarter, projecting at least $717 million in revenue [5] Competitive Landscape - Taboola.com Inc. is expanding its performance advertising platform, targeting a $55 billion market with its new offering, Realize [6][7] - Magnite operates as a leading supply-side platform, with significant growth driven by its partnerships and ad server technology [8][9] Valuation and Market Performance - The Trade Desk's shares have declined 49.3% over the past year, contrasting with the S&P 500's rise of 15.2% [12] - The company trades at a forward price-to-sales ratio of 8.02X, higher than the industry average of 5.38X [13]