News Summary
The digital marketing industry is booming, projected to reach $1.19 trillion by 2033. Investors are eyeing top stocks like Thryv Holdings, The Trade Desk, and HubSpot as they continue to grow and innovate. This article reviews their recent achievements and forecasts for 2025, emphasizing their potential in the expanding digital space.
Exploring the Exciting World of Digital Advertising Stocks in 2025
The global digital marketing industry is booming and is projected to reach an astonishing $1.19 trillion by 2033. This is a significant leap from the $410.70 billion recorded in 2024, showcasing a compound annual growth rate (CAGR) of 11.2%. With this rapid growth, savvy investors are looking to capitalize on the best digital advertising stocks currently available. Let’s dive in and highlight a few key players making waves in this expanding sector.
1. Thryv Holdings, Inc. (THRY)
First up is Thryv Holdings, Inc. (THRY). Specialized in providing digital marketing solutions to small and medium-sized businesses, THRY is a powerful player in the cloud-based software space. Their offerings range from customer relationship management (CRM) to search engine optimization (SEO) and appointment scheduling.
An exciting development for THRY was its acquisition of Infusion Software, Inc. (Keap), completed for $80 million on October 31, 2024. This move is expected to enhance their suite of software-as-a-service (SaaS) solutions, positioning them even better in the market.
For the fiscal third quarter ended September 30, 2024, THRY reported impressive numbers with $179.85 million in revenue and an adjusted gross profit of $116.84 million, marking a 5.6% year-over-year increase. What’s more, their adjusted EBITDA soared to $19.62 million, reflecting a staggering 167.7% increase over the previous year.
Looking ahead, analysts predict THRY’s earnings per share (EPS) and revenue for Q4 2024 to jump by 97.9% year-over-year, reaching $183.02 million. With a solid performance rated with a B grade in both Growth and Value, THRY ranks #25 out of 40 in the Software – Business industry.
2. The Trade Desk, Inc. (TTD)
Next, we have The Trade Desk, Inc. (TTD). Known for its robust cloud-based platform, TTD helps businesses manage their digital advertising campaigns with ease. On November 14, 2024, TTD’s stockholders approved the company’s reincorporation from Delaware to Nevada, a strategic move for future growth.
In a stellar showing for Q3 2024, TTD’s revenue reached $628.02 million, a remarkable 27.3% growth year-over-year. They reported an income from operations of $108.48 million, which is up an incredible 187.9% compared to the previous year.
Looking forward to Q4 2024, TTD anticipates a revenue increase of 25.3% to $759.32 million and EPS growth of 38.6% to $0.57. Over the past year, TTD has experienced a stock gain of 65.3%, closing recently at $121.67. With an impressive A grade in Growth and a B grade for Quality, TTD ranks #63 out of 126 in the Software – Application industry.
3. HubSpot, Inc. (HUBS)
Last but certainly not least, we have HubSpot, Inc. (HUBS), which offers an all-encompassing cloud-based CRM platform. Designed primarily with mid-market B2B companies in mind, HUBS’s tools cover marketing, sales, customer service, and operations. Just recently, on October 30, 2024, HUBS expanded its capabilities by acquiring Cacheflow, which will be integrated into its Commerce Hub offering.
In Q3 2024, HUBS achieved a 20.1% year-over-year revenue increase, boasting a total of $669.72 million. Their non-GAAP operating income also climbed to $125.21 million, reflecting a healthy 35.9% increase.
HUBS is projected to hit $673.96 million in revenue for Q4 2024, a 15.8% year-over-year rise, with EPS expected to grow by 24.8% to $2.20. With an A grade in Growth and a B for Sentiment, HUBS ranks #21 out of 40 in the Software – Business industry and has consistently exceeded earnings expectations in the past four quarters.
In Conclusion
With the digital marketing landscape evolving rapidly, investing in stocks like Thryv Holdings, The Trade Desk, and HubSpot could offer exciting opportunities. As these companies continue to innovate and grow, they remain solid choices for investors looking to dive into this dynamic industry. Keep an eye on these companies as they are paving the way into 2025 and beyond!
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