Shares of The Trade Desk, an advertising technology company, experienced a significant jump of over 18% in extended trading on Thursday. The surge came after the company issued robust first-quarter guidance and exceeded revenue expectations.

In the fourth quarter of the previous year, The Trade Desk reported sales of $491 million, marking a notable 23% increase compared to the same period a year ago. Furthermore, the company's net income saw a substantial rise of 37%, reaching $97 million, or 19 cents per share, up from $71 million, or 14 cents per share, in the previous year's quarter.

For the upcoming first quarter, The Trade Desk has forecasted sales of at least $478 million, surpassing analyst estimates of $452 million. This positive outlook has further bolstered investor confidence in the company's performance.

The Trade Desk also announced that its board has approved an additional $647 million in share repurchases, bringing the total amount allocated for future buybacks to $700 million. During the fourth quarter, the company completed repurchases worth $220 million.

The Trade Desk specializes in providing technology solutions to companies looking to target users across the web. The rapid shift in corporate advertising budgets from traditional television to Connected TV (CTV) and streaming platforms has been a significant growth driver for the company. The Trade Desk is capitalizing on this trend by offering precision targeting and premium value at scale to leading advertisers globally.

Trade Desk CEO, Jeff Green, expressed optimism about the company's future prospects, stating, "More and more of the world's leading advertisers are gravitating to channels and partnerships that offer precision and premium value at scale, such as Connected TV (CTV) and retail media."

The attractive growth potential of the Connected TV market has garnered attention, with industry experts projecting its expansion alongside the broader recovery of the overall digital advertising market by 2024. This positive market sentiment has also contributed to the success of other major digital advertising platforms such as Meta, Alphabet, and Amazon.

Among these platforms, Amazon experienced the strongest performance in the fourth quarter, with its advertising business growing by an impressive 27%. Meta, on the other hand, reported a growth rate of 24%, benefiting from increased spending by Chinese online retailers. Google's ad business, while still expanding, lagged behind its closest competitors with a growth rate of 11% compared to the previous year.

The Trade Desk's impressive fourth-quarter performance and its optimistic outlook for the first quarter have positioned the company well in the evolving digital advertising landscape. The continued growth of the Connected TV market offers a promising future, attracting advertisers seeking precision targeting and premium value on a large scale.