DRCT Earnings Prediction
The chart below shows how DRCT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, DRCT sees a -5.68% change in stock price 10 days leading up to the earnings, and a +14.10% change 10 days following the report. On the earnings day itself, the stock moves by +4.80%. This data can give you a slight idea of what to expect for the next quarter's release.
DRCT Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
9.07M
-84.74%
-58.48%
Gross Margin
38.72%
95.95%
42.67%
Operating Margin
-40.31%
-633.20%
326.56%
Net Margin
-70.27%
-1348.13%
389.00%
EPS
-0.18
-178.26%
350.00%
No Data Available
DRCT Earnings Analysis
Direct Digital Holdings, Inc. Class A Common Stock Corporation (DRCT.O) Earnings Conference Call
Positive
2024 Revenue Guidance: In late March this year, Direct Digital Holdings released its Q4 and fully year results of 2023, announcing a top-line revenue guidance target for 2024 of $170 million to $190 million, representing 15% year-over-year growth at the midpoint.
Gross Profit Decline: For the third quarter of 2024, gross profit dollars were $3.5 million compared to $11.8 million for the third quarter of 2023, a decrease of 70%.
Gross Margin Improvement: Gross margins for the third quarter were approximately 39% compared to 23% in the same period of last year.
Operating Expenses Decrease: Operating expenses were $7.2 million in the third quarter of 2024 or a decrease of $100,000 over the $7.3 million of expenses in the third quarter of last year.
Cash Position Decline: We ended the quarter with cash and cash equivalents of $4.1 million compared to $5.1 million as of the end of December 31, 2023.
Negative
Significant Revenue Decline: In Q3 2024, revenue was $9.1 million, a decrease of $50.4 million or an 85% decline compared to $59.5 million in the same period of 2023.
Revenue Decline Analysis: Colossus SSP saw revenue fall to $2.2 million for Q3 2024 compared to $51.6 million in the same period of 2023, a 96% decrease year-over-year.
Revenue Decline Analysis: On our buy side, revenue was $6.9 million compared to $7.9 million for the same period of 2023, marking a 12% year-over-year decline.
Gross Profit Decline: For the third quarter of 2024, gross profit dollars were $3.5 million compared to $11.8 million for the third quarter of 2023, a decrease of 70%.
Operating Loss Comparison: Consolidated operating loss for the quarter was $3.7 million compared to operating income of $4.5 million for the same period, a decrease of $8.2 million or 181% year-over-year.
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DRCT Earning Call Sentiment
Direct Digital Holdings, Inc. (DRCT) Q3 2024 Earnings Call Transcript
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00:00
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DRCT.O
-3.48%Positive
The earnings report shows a drastic 85% revenue decline and a significant operating loss, compounded by legal risks and potential liquidity issues. The Q&A revealed management's unclear responses on cost savings and EBITDA positivity, further eroding confidence. Despite optimistic future guidance, the current financial distress and negative external factors suggest a strong negative stock price reaction in the short term.