Direct Digital Q2 revenue rises 24% sequentially

Direct Digital Holdings

05/08/2025 22:13

Overview

Direct Digital Q2 revenue rises 24% sequentially

Operating expenses reduced by 25% yr/yr due to strategic cost-saving initiatives

Outlook

Company unable to provide specific revenue guidance due to market uncertainty

Direct Digital expects growth from enhanced buy-side activity in H2 2025

Company plans to reinstate revenue guidance once sell-side visibility improves

Result Drivers

SEQUENTIAL REVENUE GROWTH - 24% sequential revenue increase driven by growth in sell-side and buy-side businesses, per CEO Mark Walker

COST REDUCTION - Operating expenses reduced by 25% yr/yr due to strategic cost-saving initiatives, including decreased payroll costs

SELL-SIDE CHALLENGES - Sell-side revenue decreased 83% yr/yr due to reduced impression inventory, impacting overall performance

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$10.1 mln
$11.80 mln (2 Analysts)
Q2 Net Income
Miss
-$4.20 mln
-$611,500 (2 Analysts)
Q2 Adjusted EBITDA
Miss
-$1.50 mln
-$530,500 (2 Analysts)
Q2 Operating Income
Miss
-$2.40 mln
-$1.53 mln (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 90.1% above its August 4 closing price of $0.59

The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release: ID:nPn1CHDYTa

(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.)