Overview
Direct Digital Q3 revenue decreased 12%, missing analyst expectations
Net loss improved but missed analyst estimates
Buy-side advertising revenue grew 7% yr/yr, driven by new verticals
Outlook
Company expects stronger Q4 compared to last year
Result Drivers
BUY-SIDE GROWTH - Focus on profitable buy-side segment led to 7% revenue increase, driven by new verticals
SELL-SIDE CHALLENGES - Sell-side revenue declined due to lower impression inventory and engagement levels
COST SAVINGS - Operating expenses reduced by 15% due to cost-saving initiatives from 2024
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Miss | $7.98 mln | $22.25 mln (2 Analysts) |
Q3 Net Income | Miss | -$5 mln | $435,500 (2 Analysts) |
Q3 Adjusted EBITDA | Miss | -$3 mln | $576,000 (2 Analysts) |
Q3 Operating Income | Miss | -$3.91 mln | -$409,000 (2 Analysts) |
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 94.6% above its November 5 closing price of $0.33
Press Release: ID:nPnc3tWNxa
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.
(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.)