Direct Digital Holdings, Inc. (NASDAQ: $DRCT) is a leader in the programmatic advertising sector. It operates an impressions-based business model, where each impression by a user is sold in a high-speed auction executed in milliseconds. It works with media owners, such as new sites, and connects them to advertisers looking to place ads on their platforms.
Earnings Report
Direct Digital Holdings released its latest fiscal Q3 2023 earnings report on November 9, 2023. The company reported Q3 EPS of $0.23, better than the analysts’ projection of $0.05 by 331.28%. Revenue for the quarter also beat analysts’ expectations by 74.78% at $59.47 million, against a projected $34.03 million.
In its full-year guidance, Direct Digital Holdings said it expected $170-$190 million in revenue, better than the analysts’ projection of $28.10 million. The full-year guidance represents a 1001% year-on-year growth at the $180 million midpoint. Its increased guidance reflects its belief that it will successfully execute its growth strategies.
Q3 was an overall great quarter for Direct Digital Holdings. The company reported that it processed over 400 billion monthly impressions via its sell-side segment, representing a growth of 220% in the same period last year.
Additionally, its sell-side ad platform received over 34 billion monthly bid impressions, representing a 210% increase over the same time last year. Sell-side revenue per advertiser was up 241% compared to last year’s quarter.
On its buy-side segment, the company served around 228 customers in Q3, with buy-side revenue per customer up 14% compared to the same quarter in Q3 2022.
Direct Digital Holdings Stock Performance
Following the release of the better-than-expected earnings results, Direct Digital Holdings (DRCT) stock saw its price rally by nearly 50% on Friday, November 10, 2023. DRCT stock started rallying after multiple brokers raised their price targets. As of November 12, 2023, DRCT stock was up 54.79%, trading at $4.04 per share. The stock has had a great run in 2023, up 57.81% year-to-date. The stock has rallied more than 40% in the past six months alone.
DRCT Stock Forecast
Stock analysts give Direct Digital Holdings (DRCT) stock a strong buy rating. The analysts predict a high of $15 and a low of $5.20. At the average price target of $9.42, the stock has an upside of 133.17%.
Should You Buy Direct Digital Holdings Stock?
Direct Digital Holdings (DRCT) has had a great run in 2023. DRCT stock has performed better than the two key metrics of the 50-day and 200-day moving average. In its latest earnings report, the CEO predicted a strong business environment. The CEO’s high confidence in the company’s growth strategy makes DRCT stock a great option to add to your portfolio. However, always conduct due diligence when making stock investment decisions.