Overview

• Direct Digital Q2 revenue rises 24% sequentially

• Operating expenses reduced by 25% yr/yr due to strategic cost-saving initiatives

Outlook

• Company unable to provide specific revenue guidance due to market uncertainty

• Direct Digital expects growth from enhanced buy-side activity in H2 2025

• Company plans to reinstate revenue guidance once sell-side visibility improves

Result Drivers

• SEQUENTIAL REVENUE GROWTH - 24% sequential revenue increase driven by growth in sell-side and buy-side businesses, per CEO Mark Walker

• COST REDUCTION - Operating expenses reduced by 25% yr/yr due to strategic cost-saving initiatives, including decreased payroll costs

• SELL-SIDE CHALLENGES - Sell-side revenue decreased 83% yr/yr due to reduced impression inventory, impacting overall performance

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the advertising & marketing peer group is "buy"

• Wall Street's median 12-month price target for Direct Digital Holdings Inc is $6.00, about 90.1% above its August 4 closing price of $0.59

• The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release: ID:nPn1CHDYTa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)