Direct Digital Stock Falls On Q4 Results: Here’s Why

Direct Digital Holdings reported quarterly losses of 8 cents per share which missed the analyst consensus estimate of earnings of 26 cents.

Direct Digital Holdings (NASDAQ:DRCT) shares are dropping after the company reported its fourth-quarter financial results after the bell Tuesday. Here’s a look at the details. 

The Details: Direct Digital Holdings reported quarterly losses of 8 cents per share which missed the analyst consensus estimate of earnings of 26 cents.

The company reported quarterly sales of $41.01 million which missed the analyst consensus estimate of $65.95 million by 37.81% and represented a 33.4% increase over sales of $30.74 million from the same period last year.

“2023 was another transformational year for Direct Digital Holdings, achieving remarkable year-over-year revenue growth of 76% as well as dramatic operational expansion, and impressive results for our shareholders,” commented Mark D. Walker, CEO of Direct Digital.

“Although performance in the fourth quarter was not as strong as we initially expected due to proactive measures we are taking in the face of changing macro industry trends, we are confident our company is in a position to build on the successes of 2023, expand on emerging channel and inorganic growth opportunities and continue our strong revenue growth and market share gains in 2024,” added Walker.

Outlook: The company expects fiscal year 2024 revenue to be in the range of $170 million to $190 million, representing 15% year-over-year growth at the mid-point.

“We are pleased to announce our fiscal year 2024 revenue guidance of $170 million to $190 million. This range demonstrates our belief that we can continue our growth and operational optimization strategies to deliver strong performance for our shareholders this year,” Diana Diaz, CFO, said.

DRCT Price Action: According to Benzinga Pro, Direct Digital shares are down 33.04% after-hours at $17.75 at the time of publication Tuesday.

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Photo: Pete Linforth from Pixabay

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