December 31, 2024

The Exciting Future of Digital Advertising Stocks: What You Need to Know for 2025

Real Internet Sales

Real Internet Sales is a digital marketing agency located in Columbia, South Carolina. We specialize in website design and development, SEO, social media management, online advertising, AI integration, and workflow automation. Our services also include affiliate marketing and digital strategy.

Real Internet Sales also offer specialized programming for real estate firms, using IDX and RETS feeds to automatically populate MLS properties on their websites for improved property listings and sales. We also work with clients in the restaurant, tourism, and e-commerce industries to enhance their digital presence and streamline operations.

News Summary

As digital marketing continues to thrive, key players such as Thryv Holdings, The Trade Desk, and HubSpot are set for significant growth in 2025. Projections indicate an increase in the digital advertising market from $410.70 billion in 2024 to $1.19 trillion by 2033. This article explores these companies’ promising financial performances and upcoming strategies.

The Exciting Future of Digital Advertising Stocks: What You Need to Know for 2025

As we look ahead to 2025, one thing is clear: the digital marketing industry is on the rise. With projections showing a jump from 410.70 billion dollars in 2024 to a whopping 1.19 trillion dollars by 2033, we’re witnessing some serious growth, approximately 11.2% annually.

For those looking to invest in digital advertising, a few stocks are particularly worth paying attention to. Let’s dive into three key players: Thryv Holdings, Inc. (THRY), The Trade Desk, Inc. (TTD), and HubSpot, Inc. (HUBS).

Thryv Holdings, Inc. (THRY)

First up is Thryv Holdings. This company is making waves by providing digital marketing solutions for small to medium-sized businesses. Their offerings include useful tools like Customer Relationship Management (CRM), Search Engine Optimization (SEO), and even appointment scheduling.

In a recent move that raised eyebrows, on October 31, 2024, Thryv completed an $80 million cash acquisition of Infusion Software, better known as Keap. This acquisition is expected to enhance Thryv’s software-as-a-service (SaaS) solutions, which is exciting for its growth trajectory.

In their latest financial report for the fiscal third quarter ending September 30, 2024, Thryv delivered revenues of $179.85 million, marking a 5.6% increase year over year. Even more promising, their adjusted EBITDA jumped by 167.7% compared to last year, sitting at $19.62 million. For Q4, analysts predict a staggering 97.9% year-over-year increase in EPS with anticipated revenues around $183.02 million.

Thryv has an impressive POWR Ratings (a rating system for stocks) with a B in Growth and Value, ranking #25 out of 40 in the Software – Business sector.

The Trade Desk, Inc. (TTD)

Next, we have The Trade Desk, known for its cloud-based platform that helps businesses manage their digital advertising campaigns. They’re all about improving campaign performance, which is what businesses need in today’s competitive landscape.

Recently, shareholders approved the company’s reincorporation from Delaware to Nevada on November 14, 2024, a strategic move for their future.

In the third quarter of 2024, TTD saw revenues climb to $628.02 million, which is a 27.3% increase from the previous year. Their operational income was also impressive, standing at $108.48 million, up a staggering 187.9% year-over-year.

Looking ahead, TTD expects Q4 revenue to hit $759.32 million, an increase of 25.3%, along with an EPS growth of 38.6%. Over the last six months, TTD’s stock has gained 27.1%, and an eye-popping 65.3% over the past year, closing at $121.67.

The Trade Desk enjoys a great reputation, holding an A grade in Growth and a B for Quality in its POWR Ratings, ranked #63 out of 126 in the Software – Application sector.

HubSpot, Inc. (HUBS)

Last but certainly not least is HubSpot, a cloud-based CRM platform that provides a one-stop shop for marketing, sales, customer service, and operations—primarily for those mid-market B2B companies.

On October 30, 2024, HubSpot made headlines by acquiring Cacheflow, seamlessly integrating it into their Commerce Hub offering. This move is sure to bolster their competitive edge.

When looking at numbers, HubSpot reported a solid 20.1% year-over-year revenue increase to reach $669.72 million in Q3 2024. Their non-GAAP operating income also saw strong growth, climbing 35.9% to $125.21 million. Looking forward, they expect revenues of $673.96 million for Q4 2024, which is up 15.8% year-over-year.

HubSpot has been a consistent performer, exceeding consensus EPS and revenue estimates in each of the last four quarters. Their stock price rose 24.6% over the last six months and 22.3% in the past year, closing at $714.96. With an A grade in Growth and a B in Sentiment, HubSpot ranks #21 out of 40 in the Software – Business sector.

A Bright Future Ahead

The landscape of digital advertising stocks looks pretty promising as we move toward 2025. With companies like Thryv, The Trade Desk, and HubSpot leading the charge, it’s an exciting time for both businesses and investors alike. So, whether you’re looking to invest or just curious about the thriving world of digital marketing, these companies are definitely ones to keep on your radar!