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Direct Digital Holdings (DRCT)
NASDAQ:DRCT
Earnings Data
Report Date
May 08, 2025TBA Not Confirmed
Period Ending
2025 (Q1)Consensus EPS Forecast
>-0.01Last Year’s EPS
-0.11Same Quarter Last Year
Moderate Buy
Based on 2 Analysts Ratings
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Earnings Call Summary
Earnings Call Date:Mar 27, 2025
|% Change Since: -51.88%
|Next Earnings Date:May 08, 2025
Earnings Call Sentiment|Neutral
The earnings call reflects a challenging year with significant revenue declines primarily due to external attacks and customer pauses. However, the company has made strategic moves to improve margins, reduce costs, and initiate new revenue-generating activities. The outlook for 2025 indicates potential recovery with expected gains in the second half of the year.Company Guidance
During the Direct Digital Holdings Fourth Quarter and Full Year 2024 Earnings Call, the company reiterated its revenue guidance for fiscal 2025, projecting between $90 million and $110 million. The call highlighted a challenging 2024, with significant revenue disruption due to defamatory attacks on their supply-side platform, Colossus SSP, which impacted partnerships and client activity. Despite the hurdles, the fourth-quarter results aligned with revised guidance, with a noted gross margin increase from 23% to 32% year-over-year due to a higher mix of buy-side revenue. The company implemented cost-saving measures, reducing operating expenses by $2.1 million in Q4 2024, and anticipates additional annualized savings of $1.5 to $2 million in 2025. The management conveyed optimism for 2025, particularly in the latter half, as they expect strong gains driven by new direct sell-side partners and emphasized a focus on higher-margin buy-side operations, projecting incremental revenue of $5 million to $10 million from new verticals.Gross Margin Improvement
Despite a decrease in revenue, gross margin increased from 23% in the prior year to 32% in the fourth quarter of 2024 due to a higher mix of buy-side revenue.
Cost Savings Achieved
The company realized cost savings in operating expenses of $2.1 million in the fourth quarter of 2024, reflecting the flexibility in its cost structure.
New Revenue Initiatives
Launch of Colossus Connections to accelerate direct integration with leading demand-side platforms, signing up two leading partners, expected to generate $5 million to $10 million in additional revenue in 2025.
Positive Buy-Side Customer Growth
Despite overall buy-side revenue decline, there was growth from existing and new customers of 8%.
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DRCT Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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DRCT Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
| Mar 27, 2025 | $1.33 | $0.73 | -45.11% |
| Nov 12, 2024 | $2.64 | $1.87 | -29.17% |
| Aug 08, 2024 | $3.07 | $3.41 | +11.07% |
| May 09, 2024 | $4.56 | $4.28 | -6.14% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does Direct Digital Holdings (DRCT) report earnings?
Direct Digital Holdings (DRCT) is schdueled to report earning on May 08, 2025, TBA Not Confirmed.
What is Direct Digital Holdings (DRCT) earnings time?
Direct Digital Holdings (DRCT) earnings time is at May 08, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is DRCT EPS forecast?
DRCT EPS forecast for the fiscal quarter 2025 (Q1) is >-0.01.
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