NASDAQ$DRCT

Direct Digital Holdings In-A · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported third quarter 2023 financial results with revenue up 129% year-over-year.

Direct Digital Holdings reported strong third quarter 2023 results, with revenue increasing by 129% year-over-year to $59.5 million. The company raised its full-year 2023 revenue guidance to $170 million - $190 million.

  • Revenue increased by 129% year-over-year reaching $59.5 million.
  • Investments in technology stack, advertising platform, and operational structure are yielding earlier than expected benefits.
  • Increased spend from buying partners has led to a rise in impression count and organic growth.
  • Company raised full-year 2023 revenue guidance to $170 million - $190 million.

Headline financials

Total Revenue

$59.5M

Previous: $26M+128.9%
EPS (adj)

$0.23

Previous: $0.06+283.3%
Capital Expenditures

$0.00

No prior period
Free Cash Flow

$3.35M

Previous: $811K+313.3%
Net Income

$3.35M

Previous: $811K+313.3%
Operating Income

$4.49M

Previous: $1.84M+143.6%
Gross Profit

$11.8M

Previous: $7.46M+57.5%
Cash & Equivalents

$5.48M

Previous: $7.01M-21.8%
Total Assets

$86.7M

Previous: $53.8M+61.2%
Stock-Based Comp

$241K

Previous: $70K+244.8%

Revenue & EPS history

Direct Digital · Revenue · Quarterly

$59.5M

Q3 2023+128.9%vs Q3 2022
Beat estimate in 5 of 12 quarters(42%)
ActualEstimate

Revenue by segment

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

  • Digital Advertising
    $6.68M

Forward guidance

The company is increasing its previously issued estimate as disclosed in its second quarter 2023 update and now expects fiscal year 2023 revenue guidance to $180 million at the midpoint, a 101% increase over full-year 2022 results, assuming the U.S. economy does not experience any major economic conditions that deteriorate or otherwise significantly reduce advertiser demand.

Tailwinds

  • Reflects belief in ability to execute on various growth strategies
  • Demonstrates the strength of operating leverage
  • Highlights the favorable market trends that are expected to continue for the remainder of this year
  • Strategic investments and partnerships
  • Differentiated approach to advertising solutions

Historical earnings impact

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

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

-8.7%

Avg return

Earnings day

-8.8%

Avg return

5 days after

-7.4%

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
Q4 2025-5.4%+13.5%
Q1 2026-2.9%-14.0%-28.0%
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%
Q1 2024-23.3%-18.3%-46.5%
Q2 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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