Overview

* Direct Digital ( DRCT ) Q3 revenue decreased 12%, missing analyst expectations

* Net loss improved but missed analyst estimates

* Buy-side advertising revenue grew 7% yr/yr, driven by new verticals

Outlook

* Company expects stronger Q4 compared to last year

Result Drivers

* BUY-SIDE GROWTH - Focus on profitable buy-side segment led to 7% revenue increase, driven by new verticals

* SELL-SIDE CHALLENGES - Sell-side revenue declined due to lower impression inventory and engagement levels

* COST SAVINGS - Operating expenses reduced by 15% due to cost-saving initiatives from 2024

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $7.98 $22.25

Revenue mln mln (2

Analysts

)

Q3 Net Miss -$5 mln $435,500

Income (2

Analysts

)

Q3 Miss -$3 mln $576,000

Adjusted (2

EBITDA Analysts

)

Q3 Miss -$3.91 -$409,00

Operatin mln 0 (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 94.6% above its November 5 closing price of $0.33

Press Release:

For questions concerning the data in this report, contact [email protected]. For any other questions or feedback, contact .

(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.)