The Trade Desk on Thursday posted first-quarter revenue and profit above analysts' estimates, aided by strong demand for automated ad-buying technologies, sending it shares up 23.57% in premarket trading.

The ad firm's strong results come at a time when businesses are reducing marketing spend amid prevailing recession fears and uncertain economy.

The ad-buying platform offers advertisers access to a vast network of publishers and media partners across industries, allowing them to precisely target their ad campaigns.

The Trade Desk is building support for its advertising identifier, Unified ID 2.0 (UID2), which it says is more privacy focused and an upgrade and alternative to third-party cookies.

Revenue for the first quarter grew 25% to $616 million, beating estimates of $584 million, according to data compiled by LSEG.

On an adjusted basis, the company earned 33 cents per share for the quarter, above estimates of 25 cents.

Trade Desk, which has partnerships with retailers such as Walmart, forecast second-quarter revenue of at least $682 million, slightly below analysts' average estimate of $683.2 million.