New York, March 27, 2024 - PRISM MarketView -PRISM AdTech and Media Index company, Direct Digital Holdings, Inc. (DRCT) reported Q4 and FY 2023 earnings that cited 2023 revenues up 76%, its eighth consecutive quarter of double-digit growth and net income for the year of $2M. The company guided 2024 revenue in the range of $170M-$190M. Despite the upbeat seeming headline news, the stock has been selling off and trading down ~35% which may lead some investors to question the movement.
On earnings releases, it is critical to understand what matters. In this instance, the company missed almost every estimate set by the Street, despite headline news that had sounded positive. Direct Digital disappointed on earnings and missed expectations, reporting Q4 EPS of ($0.08) vs Factset $0.02. Additionally, the $41M in Q4 revenues also missed consensus estimates of $42.5M and guidance for the year that was projected at $295.8M. Adjusted EBITDA for the quarter was in line.
Direct Digital Holdings is a company specializing in direct-to-consumer digital marketing and e-commerce. It focuses on leveraging digital channels to reach consumers directly, offering a range of products and services tailored to their needs.
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