Overview

* Direct Digital ( DRCT ) 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/Mis Actual Consensu

s s

Estimate

Q2 Miss $10.1 $11.80

Revenue mln mln (2

Analysts

)

Q2 Net Miss -$4.20 -$611,50

Income mln 0 (2

Analysts

)

Q2 Miss -$1.50 -$530,50

Adjusted mln 0 (2

EBITDA Analysts

)

Q2 Miss -$2.40 -$1.53

Operatin mln mln (2

g Income 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 ( DRCT ) 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:

(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.)