Direct Digital Holdings (Nasdaq: DRCT), a programmatic advertising company, released impressive third quarter earnings on Thursday that exceeded expectations across the board.
Largely bucking industry trends, the advertising holding company – which owns and operates companies Colossus SSP, Huddled Masses and Orange 142 – surpassed expectations, largely due to its further investment and the enhancement of its technology stack, advertising platform, and operational structure as credited by Mark D. Walker, the company’s CEO and Chairman.
“In recent quarters, we have made significant investments in our technology stack, advertising platform and operational structure. We initially expected to see the impact of these investments in 2024, however, we are pleased to report that these benefits have arrived much earlier in 2023. Our strong technology partnerships and our overarching business strategy have enabled us to meet a growing number of customers’ demands and further the capabilities of our sell-side technology platform. On both the sell-side and the buy-side, increased spend from our buying partners has resulted in an associated increase in our impression count and organic growth profile with a direct positive impact on net income and adjusted EBITDA” he said in Thursday’s earnings announcement.
Other highlights from the company’s earnings statement include a jump in revenue to $59.5 million in the third quarter of 2023, compared to $26 million in the same period last year – a jump of 129% percent.
“The growth seen in this quarter, as well as the past year, has been fueled by a combination of our strategic investments and partnerships, our differentiated approach to advertising solutions, as well as a set of market dynamics which have been highly beneficial to our position in the industry,” added Keith Smith, company president.
Direct Digital Holdings now expects revenue for fiscal year 2023 to be in the range of $170 million to $190 million, or 101% year-over-year growth at the mid-point.
