NASDAQ$DRCT

Direct Digital Holdings In-A · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported strong growth in both buy- and sell-side businesses, with a shift in media spend from traditional to digital and an increase in media spend targeted at the middle market.

Direct Digital Holdings reported a 67% year-over-year increase in revenue to $35.4 million for the second quarter of 2023. The company raised its full-year 2023 revenue guidance due to these strong Q2 results.

  • Reported substantial growth in both buy- and sell-side businesses.
  • Observed a shift in media spend from traditional to digital.
  • Experienced an increase in media spend targeted at the middle market.
  • Strategic investments across the platform are yielding positive results.

Headline financials

Total Revenue

$35.4M

Previous: $21.3M+66.5%
EPS (adj)

$0.08

Previous: $0.18-55.6%
Free Cash Flow

$1.19M

Previous: $2.61M-54.3%
Net Income

$1.19M

Previous: $2.61M-54.3%
Operating Income

$2.25M

Previous: $3.06M-26.4%
Gross Profit

$10.1M

Previous: $8.34M+20.8%
Cash & Equivalents

$5.67M

Previous: $4.92M+15.3%
Total Assets

$62.2M

Previous: $45.9M+35.5%
Stock-Based Comp

$210K

Previous: $15.4K+1263.1%

Revenue & EPS history

Direct Digital · Revenue · Quarterly

$35.4M

Q2 2023+66.5%vs Q2 2022
Beat estimate in 6 of 13 quarters(46%)
ActualEstimate

Revenue by segment

Direct Digital · $6.68M total across 1 segment · Q1 2026

  • Digital Advertising
    $6.68M

Forward guidance

Assuming no major economic conditions deteriorate or significantly reduce advertiser demand, the company is increasing its previously issued estimate as disclosed in its Q1 2023 update.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-8.7%

Avg return

Earnings day

-9.4%

Avg return

5 days after

-4.5%

Avg return

30 days after

19%

4 / 21 earnings

Positive

+60.3%

Q3 2023

Best reaction

-45.1%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.9%-14.0%
Q4 2025-5.4%+1.3%+29.4%
Q3 2025-32.4%-37.1%-67.6%
Q2 2025-21.5%-30.1%-26.9%
Q1 2025-23.6%-32.5%-37.3%
Q4 2024-45.1%-50.7%-49.4%
Q3 2024-28.6%-40.1%-70.1%
Q2 2024-23.3%-18.3%-46.5%
Q1 2024-23.3%-18.3%-46.5%
Q4 2023-44.6%-47.4%-78.9%
Q3 2023+60.3%+95.6%+387.7%
Q2 2023-0.4%+8.7%-8.5%
Q1 2023-3.0%+28.3%+9.4%
Q4 2022-17.2%-27.8%-26.7%
Q3 2021-2.0%-13.5%-18.5%
Q3 2022+34.7%+32.1%+12.4%
Q2 2021+1.3%-1.3%+1.0%
Q2 2022+19.6%+21.2%+30.6%
Q1 2021-11.0%-19.5%-30.0%
Q4 2021-11.0%-19.5%-30.0%
Q1 2022-3.8%-14.4%-23.6%

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