Direct Digital Holdings, a prominent player in the advertising and marketing technology sector, experienced a substantial surge in its stock today following the release of robust third-quarter (Q3) financial results that exceeded expectations. The previous day’s closing price of $2.61 gave way to a noteworthy opening at $3.47 during today’s trading session.
At the time of this publication, Direct Digital Holdings Inc stock (DRCT) has witnessed a surge.
Direct Digital Holdings Inc
Current Price: $3.58
Change : +0.97
Change (%): (37.16%)
Volume: 17.1M
Source: Tomorrow Events Market Data
In a detailed breakdown of the financial results for the third quarter (Q3) of 2023, Direct Digital Holdings reported a remarkable revenue of $59.5 million. This represented a significant upswing of $33.5 million, marking a staggering 129% increase over the $26.0 million reported during the same period in 2022.
The sell-side advertising segment emerged as a significant contributor to this surge, recording revenue of $51.6 million. This figure reflected an impressive 174% growth, contributing $32.8 million to the overall increase compared to the $18.9 million reported for the corresponding period in 2022. Meanwhile, the buy-side advertising segment also demonstrated growth, reaching $7.9 million and contributing $0.7 million to the total increase, signifying a 10% growth over the $7.1 million reported in the third quarter of 2022.
Consolidated operating income for the third quarter of 2023 exhibited robust growth, totaling $4.5 million. This marked a substantial increase of 144% over the consolidated operating income of $1.8 million reported during the same period in 2022. Net income for the third quarter of 2023 reached $3.4 million, showcasing an impressive 313% year-over-year increase compared to the $0.8 million reported for the third quarter of 2022. Additionally, Adjusted EBITDA for the same period was $5.4 million, reflecting a noteworthy 123% increase from the $2.4 million reported in 2022.
Looking ahead, Direct Digital Holdings provided a positive financial outlook for the remainder of the fiscal year 2023, contingent upon the absence of major economic downturns. The company revised its estimate, anticipating revenue to fall within the range of $170 million to $190 million for the fiscal year, representing a 101% year-over-year growth at the midpoint.
Diana Diaz, the Chief Financial Officer, expressed enthusiasm about the revised fiscal year 2023 revenue guidance, which now stands at $180 million at the midpoint. This substantial increase, representing a 101% surge over the full-year 2022 results, underscores the company’s confidence in executing its growth strategies, leveraging its operational strengths, and capitalizing on favorable market trends expected to persist throughout the remainder of the year.
