Category: Media and Marketing

Release – Harte Hanks Reports Fiscal 2023 Second Quarter Results

Posted on by aweinsoff@channelchek.com

Research News and Market Data on HHS

CHELMSFORD, MA / ACCESSWIRE / August 10, 2023 / Harte Hanks, Inc. (NASDAQ:HHS), a leading global customer experience company focused on bringing companies closer to customers for 100 years, today announced financial results for the second quarter and six-month period ended June 30, 2023.

Kirk Davis, Chief Executive Officer, commented: “My favorable impressions of Harte Hanks were confirmed in my first month as CEO; Harte Hanks has great people and significant capabilities that are desired by global brands. The pandemic had a positive, multi-year impact on our business, which we’re now beyond. In addition, many of our customers have curtailed budgets for 2023 due to concerns about the economy. This necessitates our near-term focus on further aligning our cost structure, and in addition, shifting some of our current spend to bolster sales productivity.”

“The second quarter results represent a baseline for our expectations in the near term and present a solid foundation on which to build,” added Mr. Davis. “We’re focused on bolstering our sales pipeline, retooling our marketing programs, improving sales effectiveness, and leveraging a new partnership we’ve struck with a highly reputable business development company. Our acquisition of InsideOut in December of 2022 expands our end-to-end offering and specifically our lead generation capabilities. We expect to build on the consistent profitability that has been achieved and position Harte Hanks to generate more sustainable, profitable growth. We’re excited to deliver on these objectives. Additionally, the company executed on its stock repurchase plan by repurchasing almost 315,000 shares.”

Second Quarter Financial Highlights

  • Total revenues for Q2 2023 were $47.8 million, up 1.4% sequentially and down 1.6% year over year compared to $48.6 million in Q2 2022. Included in 2023 was $2.3 million from InsideOut acquired in fourth quarter of 2022.
  • Operating income was $1.7 million compared to $4.0 million in the prior-year quarter.
  • Net income of $0.6 million compared to net income of $4.5 million in the prior year.
  • Diluted EPS was $0.08 compared to $0.52 for the prior year’s second quarter.
  • EBITDA was $2.7 million compared to $4.6 million in the same period in the prior year.[1] Adjusted EBITDA, which excludes stock-based compensation and severance, was $4.4 million compared to $5.2 million.

Segment Highlights

  • Customer Care, $17.2 million in revenue, 36% of total – Segment revenue increased $1.8 million or 11.9% versus prior year and EBITDA totaled $3.0 million for the quarter, up 18.3% year-over-year. New business wins that are expected to positively impact results during the second quarter include:
    • A multi-national pharmaceutical company has engaged Harte Hanks to develop the strategy for their long-term Customer Service Experience. The scope includes the analysis and validation of their Customer Service vision, benchmarking, gap analysis and a blueprint with an implementation roadmap to inform their 2024 plans to optimize their Customer Care strategy and delivery.
    • One of the largest consultancy firms in the world has selected Harte Hanks to support a state government’s rollout of Medicaid renewal support for its constituents. This program helps Medicaid users renew for services, as well as provides education on how to engage and leverage the online systems to improve use of these benefits.
  • Fulfillment & Logistics Services, $19.6 million in revenue, 41% of total – Segment revenue decreased slightly versus the prior year quarter and EBITDA for Q2 2023 totaled $1.9 million, down $1.2 million or 39%. Revenue mix drove the reduced EBITDA margins as growth in lower-margin logistics revenue was offset by reduced volumes in our financial services vertical that yielded higher margins. New business wins during the second quarter include:
    • Harte Hanks Fulfillment won New Logo business with a major international manufacturer, providing fulfillment support for a new program of Direct-to-Customer hearing aid sales. As a major player in the industry, the manufacturer is well-positioned for growth as the hearing aid market pivots from prescription-only into “Over the Counter” space.
    • A leading branding company selected Harte Hanks Fulfillment to manage the production, kitting, and distribution of 150k+ curated Food & Beverage product gift boxes for a Fortune 50 retail partner. After producing several million kits on this partner’s behalf over the past year, this represents the first instance where the relationship has fully leveraged our FDA approved, climate-controlled facility for food grade items.
  • Marketing Services, $10.9 million in revenue, 23% of total – Segment revenue declined $2.5 million (19%) compared to the prior year quarterand EBITDA for the quarter totaled $1.3 million vs. $1.8 million. Pressure on both revenue and EBITDA was driven by a reduction in legacy direct mail campaigns and lighter project volumes. New business wins during second quarter include:
    • A major insurance carrier supporting government employees has selected Harte Hanks to help facilitate their email transition to a new CRM. While this organization is an existing customer for our Customer Care and Fulfillment segments, this is the first engagement for this client with our Marketing Services team.
    • One of the largest online travel agencies has expanded its services with Harte Hanks to support an ‘Always On’ nurture program for their global business customers.

Consolidated Second Quarter 2023 Results

Second quarter revenues were $47.8 million, down 1.6% from $48.6 million in the second quarter of 2022. The Company’s Customer Care segment grew, largely offsetting declines in Fulfillment & Logistics Services and Marketing Services.

Second quarter operating income was $1.7 million, compared to operating income of $4.0 million in the second quarter of 2022. The decrease resulted from a less favorable revenue mix and lower consolidated revenue.

Net income for the quarter was $0.6 million, or $0.08 per diluted share, compared to net income of $4.5 million, or $0.52 per diluted share, in the second quarter last year. Results this quarter included $1.2 million of pension expense, as well as $503,000 in stock-based compensation and $1.2 million in severance, largely related to the CEO transition. The severance and other costs related to the CEO transition created a non-recurring, $0.12 per share impact, without tax impact, in the second quarter of 2023.

Consolidated Year-to-Date 2023 Results

Year-to-date revenues were $94.9 million, down 2.8% from $97.6 million in the same period of 2022. Year-to-date operating income was $2.7 million, compared to operating income of $7.9 million. Net loss for the first six months was $(0.2) million, or $(0.03) per diluted share, compared to net income of $7.8 million, or $0.91 per diluted share, in the first six months of last year.

Balance Sheet and Liquidity

Harte Hanks ended the quarter with $13.4 million in cash and cash equivalents and $24 million of capacity on its credit line. The Company has no outstanding debt as of June 30, 2023. The Company’s financial position continues to be strong, and it is well-positioned to execute on its long-term growth strategies in 2023 and beyond.

During the quarter, Harte Hanks repurchased approximately 315,000 shares at an average price of $5.97 per share for a total of $1.9 million.

Conference Call Information

The Company will host a conference call and live webcast to discuss these results on Thursday, August 10, 2023 at 4:30 p.m. EST. Interested parties may access the webcast at https://investors.hartehanks.com/events or may access the conference call by dialing (877) 545-0320 in the United States or (973) 528-0002 from outside the U.S. and using access code 183563.

A replay of the call can also be accessed via phone through August 24, 2023 by dialing (877) 481-4010 from the U.S., or (919) 882-2331 from outside the U.S. The conference call replay passcode is 48804.

About Harte Hanks:

Harte Hanks (NASDAQ:HHS) is a leading global customer experience company whose mission is to partner with clients to provide them with CX strategy, data-driven analytics and actionable insights combined with seamless program execution to better understand, attract and engage their customers.

Using its unparalleled resources and award-winning talent in the areas of Customer Care, Fulfillment and Logistics, and Marketing Services, Harte Hanks has a proven track record of driving results for some of the world’s premier brands, including Bank of America, GlaxoSmithKline, Unilever, Pfizer, HBOMax, Volvo, Ford, FedEx, Midea, Sony and IBM among others. Headquartered in Chelmsford, Massachusetts, Harte Hanks has over 2,500 employees in offices across the Americas, Europe, and Asia Pacific.

For more information, visit hartehanks.com

As used herein, “Harte Hanks” or “the Company” refers to Harte Hanks, Inc. and/or its applicable operating subsidiaries, as the context may require. Harte Hanks’ logo and name are trademarks of Harte Hanks.

Cautionary Note Regarding Forward-Looking Statements:

Our press release and related earnings conference call contain “forward-looking statements” within the meaning of U.S. federal securities laws. All such statements are qualified by this cautionary note, provided pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements other than historical facts are forward-looking and may be identified by words such as “may,” “will,” “expects,” “believes,” “anticipates,” “plans,” “estimates,” “seeks,” “could,” “intends,” or words of similar meaning. These forward-looking statements are based on current information, expectations and estimates and involve risks, uncertainties, assumptions and other factors that are difficult to predict and that could cause actual results to vary materially from what is expressed in or indicated by the forward-looking statements. In that event, our business, financial condition, results of operations or liquidity could be materially adversely affected and investors in our securities could lose part or all of their investments. These risks, uncertainties, assumptions and other factors include: (a) local, national and international economic and business conditions, including (i) the outbreak of diseases, such as the COVID-19 coronavirus, which has curtailed travel to and from certain countries and geographic regions, created supply chain disruption and shortages, disrupted business operations and reduced consumer spending, (ii) market conditions that may adversely impact marketing expenditures, (iii) the impact of the Russia/Ukraine conflict on the global economy and our business, including impacts from related sanctions and export controls and (iv) the impact of economic environments and competitive pressures on the financial condition, marketing expenditures and activities of our clients and prospects; (b) the demand for our products and services by clients and prospective clients, including (i) the willingness of existing clients to maintain or increase their spending on products and services that are or remain profitable for us, and (ii) our ability to predict changes in client needs and preferences; (c) economic and other business factors that impact the industry verticals we serve, including competition and consolidation of current and prospective clients, vendors and partners in these verticals; (d) our ability to manage and timely adjust our facilities, capacity, workforce and cost structure to effectively serve our clients; (e) our ability to improve our processes and to provide new products and services in a timely and cost-effective manner though development, license, partnership or acquisition; (f) our ability to protect our facilities against security breaches and other interruptions and to protect sensitive personal information of our clients and their customers; (g) our ability to respond to increasing concern, regulation and legal action over consumer privacy issues, including changing requirements for collection, processing and use of information; (h) the impact of privacy and other regulations, including restrictions on unsolicited marketing communications and other consumer protection laws; (i) fluctuations in fuel prices, paper prices, postal rates and postal delivery schedules; (j) the number of shares, if any, that we may repurchase in connection with our repurchase program; (k) unanticipated developments regarding litigation or other contingent liabilities; (l) our ability to complete anticipated divestitures and reorganizations, including cost-saving initiatives; (m) our ability to realize the expected tax refunds; and (n) other factors discussed from time to time in our filings with the Securities and Exchange Commission, including under “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2022 which was filed on March 31, 2023. The forward-looking statements in this press release and our related earnings conference call are made only as of the date hereof, and we undertake no obligation to update publicly any forward-looking statement, even if new information becomes available or other events occur in the future.

Supplemental Non-GAAP Financial Measures:

The Company reports its financial results in accordance with generally accepted accounting principles (“GAAP”). However, the Company may use certain non-GAAP measures of financial performance in order to provide investors with a better understanding of operating results and underlying trends to assess the Company’s performance and liquidity in this press release and our related earnings conference call. We have presented herein a reconciliation of these measures to the most directly comparable GAAP financial measure.

The Company presents the non-GAAP financial measure “Adjusted Operating Income (Loss)” as a measure useful to both management and investors in their analysis of the Company’s financial results because it facilitates a period-to-period comparison of Operating Revenue and Operating Income (Loss) by excluding restructuring expense, impairment expense and stock-based compensation. The most directly comparable measure for this non-GAAP financial measure is Operating Income (Loss).

The Company presents the non-GAAP financial measure “EBITDA” and “Adjusted EBITDA” as a supplemental measure of operating performance in order to provide an improved understanding of underlying performance trends. The Company defines “Adjusted EBITDA” as earnings before interest expense net, income tax expense (benefit), depreciation expense, stock compensation expense and severance expenses. The most directly comparable measure for each of EBITDA and Adjusted EBITDA is Net Income (Loss). We believe each of EBITDA and Adjusted EBITDA are important performance metrics because they facilitates the analysis of our results, exclusive of certain non-cash items, non-recurring or special charges and items we believe do not directly correlate to our business operations; however, we urge investors to review the reconciliation of each of EBITDA and Adjusted EBITDA to the comparable GAAP Net Income (Loss), which is included in this press release, and not to rely on any single financial measure to evaluate the Company’s financial performance.

The use of non-GAAP measures do not serve as a substitute and should not be construed as a substitute for GAAP performance but should provide supplemental information concerning our performance that our investors and we find useful. The Company evaluates its operating performance based on several measures, including this non-GAAP financial measures. The Company believes that the presentation of this non-GAAP financial measures in this press release and earnings conference call presentations are useful supplemental financial measures of operating performance for investors because they facilitate investors’ ability to evaluate the operational strength of the Company’s business. However, there are limitations to the use of this non-GAAP measures, including that they may not be calculated the same by other companies in our industry limiting their use as a tool to compare results. Any supplemental non-GAAP financial measures referred to herein are not calculated in accordance with GAAP and they should not be considered in isolation or as substitutes for the most comparable GAAP financial measures.

EBITDA is the Company’s measure of segment profitability.

1 EBITDA is a non-GAAP financial measure. See “Supplemental Non-GAAP Financial Measures” below. EBITDA is also the Company’s measure of segment profitability.

Investor Relations Contact:

Rob Fink or Tom Baumann
646.809.4048 / 646.349.6641
FNK IR
HHS@fnkir.com

Harte Hanks, Inc.

Consolidated Statements of Operations (Unaudited)

Three Months Ended
June 30,		Six Months Ended
June 30,
In thousands, except per share data2023202220232022
Revenues………………………………………………………………………………..$47,762$48,553$94,882$97,615
Operating expenses
Labor…………………………………………………………………………………..26,66625,10951,13151,027
Production and distribution……………………………………………………….13,32813,50727,78026,225
Advertising, selling, general and administrative………………………………5,0655,34011,14911,273
Depreciation and amortization expense………………………………………..1,0335862,0991,184
Total operating expenses…………………………………………………….46,09244,54292,15989,709
Operating income …………………………………………………………………….1,6704,0112,7237,906
Other expense (income), net
Interest expense (income), net…………………………………………………..5995(151)230
Pension expense……………………………………………………………………1,1866821,6971,022
Foreign currency (gain) loss ……………………………………………………..(624)(2,396)305(2,792)
Other income, net…………………………………………………………………..2294981,375515
Total other expense (income), net……………………………………………850(1,121)3,226(1,025)
Income (loss) before income taxes………………………………………………..8205,132(503)8,931
Income tax expense (benefit)……………………………………………………….240671(292)1,125
Net income (loss)……………………………………………………………………..5804,461(211)7,806
Less: Preferred stock dividends………………………………………………….–124–246
Less: Earnings attributable to participating securities………………………–542–946
Income (loss) income attributable to common stockholders$580$3,795$(211)$6,614
Income (loss) Earning per common share
Basic…………………………………………………………………………………..$0.08$0.54(0.03)0.94
Diluted…………………………………………………………………………………$0.08$0.52(0.03)0.91
Weighted-average common shares outstanding………………………………..
Basic…………………………………………………………………………………..7,3587,0177,3927,004
Diluted…………………………………………………………………………………7,5057,3887,6117,338

Harte Hanks, Inc.

Condensed Consolidated Balance Sheets (Unaudited)

In thousands, except per share dataJune 30, 2023December 31, 2022
ASSETS…………………………………………………………………………………
Current Assets
Cash and cash equivalents……………………………………………………….$13,364$10,364
Accounts receivable (less allowance for doubtful accounts of $215 and $163, respectively)36,09539,700
Unbilled accounts receivable……………………………………………………..8,2357,893
Contract assets……………………………………………………………………..259309
Prepaid expenses…………………………………………………………………..3,3392,176
Prepaid income tax and income tax receivable………………………………1,4684,262
Other current assets……………………………………………………………….1,1901,607
Total current assets…………………………………………………………..63,95066,311
Net property, plant and equipment…………………………………………………9,73410,523
Right-of-use assets……………………………………………………………………18,01119,169
Other assets……………………………………………………………………………22,96523,981
Total assets…………………………………………………………………….$114,660$119,984
LIABILITIES AND STOCKHOLDERS’ EQUITY………………………………….
Current liabilities ………………………………………………………………………
Accounts payable and accrued expenses…………………………………….$17,887$22,465
Accrued payroll and related expenses…………………………………………5,5726,679
Deferred revenue and customer advances……………………………………..6,7014,590
Customer postage and program deposits……………………………………..1,6631,223
Other current liabilities…………………………………………………………….2,6802,862
Short-term lease liabilities………………………………………………………..5,9035,747
Total current liabilities………………………………………………………..40,40643,566
Pensions liabilities – Qualified plans……………………………………………….17,96218,674
Pension liabilities – Nonqualified plan …………………………………………….18,73019,098
Long-term lease liabilities, net of current portion……………………………….14,63116,575
Other long-term liabilities…………………………………………………………….2,3813,263
Total liabilities………………………………………………………………….94,110101,176
Stockholders’ equity …………………………………………………………………
Common stock………………………………………………………………………12,22112,221
Additional paid-in capital…………………………………………………………..187,386218,411
Retained earnings…………………………………………………………………..846,280846,490
Less treasury stock………………………………………………………………..(980,157)(1,010,012)
Accumulated other comprehensive loss……………………………………….(45,180)(48,302)
Total stockholders’ equity……………………………………………………20,55018,808
Total liabilities and stockholders’ equity………………………………….$114,660$119,984

Harte Hanks, Inc.

Reconciliations of Non-GAAP Financial Measures (Unaudited)

Three Months Ended June 30,Six Months Ended June 30,
In thousands, except per share data2023202220232022
Net Income (loss) …………………………………………………………………….$580$4,461$(211)$7,806
Income tax expense (benefit) ………………………………………………………240671(292)1,125
Other expense (income), net………………………………………………………..850(1,121)3,226(1,025)
Depreciation and amortization expense…………………………………………..1,0335862,0991,184
EBITDA……………………………………………………………………………….$2,703$4,597$4,822$9,090
Stock-based compensation…………………………………………………………5035611,043850
Severance……………………………………………………………………………….1,187(5)1,20978
Adjusted EBITDA……………………………………………………………………$4,393$5,153$7,074$10,018
Operating income …………………………………………………………………….$1,670$4,011$2,723$7,906
Stock-based compensation…………………………………………………………5035611,043850
Severance……………………………………………………………………………….1,187(5)1,20978
Adjusted operating income ………………………………………………………$3,360$4,5674,9758,834
Adjusted operating margin (a)……………………………………………………7.0%9.4%5.2%9.0%
(a) Adjusted Operating Margin equals Adjusted Operating Income divided by Revenues.

Harte Hanks, Inc.

Statement of Operations by Segments (Unaudited)

Quarter ended June 30, 2023Marketing ServicesCustomer CareFulfillment & Logistics ServicesUnallocated CorporateTotal
(In thousands)
2023
Revenues$10,921$17,211$19,630$–$47,762
Segment Operating Expense$8,835$13,541$16,931$5,752$45,059
Contribution margin (loss)$2,086$3,670$2,699$(5,752)$2,703
Shared Services$766$720$765$(2,251)$–
EBITDA$1,320$2,950$1,934$(3,501)$2,703
Depreciation and Amortization Expense$47$371$241$374$1,033
Operating income (loss)$1,273$2,579$1,693$(3,875)$1,670
Quarter ended June 30, 2022Marketing ServicesCustomer CareFulfillment & Logistics ServicesUnallocated CorporateTotal
2022
Revenues$13,450$15,382$19,721$–$48,553
Segment Operating Expense$10,584$12,212$15,770$5,390$43,956
Contribution margin (loss)$2,866$3,170$3,951$(5,390)$4,597
Shared Services$1,052$677$779(2,508)$–
EBITDA$1,814$2,493$3,172$(2,882)$4,597
Depreciation and Amortization Expense$89$201$202$94$586
Operating income (loss)$1,725$2,292$2,970$(2,976)$4,011

SOURCE: Harte Hanks, Inc.



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Release – Direct Digital Holdings Reports Second Quarter 2023 Financial Results

Posted on by aweinsoff@channelchek.com

Research News and Market Data on DRCT

August 10, 2023 4:01pm EDT

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Second Quarter 2023 Revenue Up 67% Year-Over-Year to $35.4 Million

Company Raises Full-Year 2023 Revenue Guidance

HOUSTON, Aug. 10, 2023 /PRNewswire/ — Direct Digital Holdings, Inc. (Nasdaq: DRCT) (“Direct Digital Holdings” or the “Company”), a leading advertising and marketing technology platform operating through its companies Colossus Media, LLC (“Colossus SSP”), Huddled Masses LLC (“Huddled Masses”) and Orange142, LLC (“Orange142”), today announced financial results for the second quarter ended June 30, 2023.

Mark D. Walker, Chairman and Chief Executive Officer, commented, “We are thrilled to report substantial growth this quarter in both our buy- and sell-side businesses. We continue to see a shift in media spend from traditional to digital as well as an increase in media spend targeted at the middle market. The results of our second quarter begin to demonstrate the fruits of our previous strategic investments across our platform and we will continue executing on our growth strategies in the back half of the year.”

Keith Smith, President, added, “We find the current market dynamics to be greatly favorable for Direct Digital Holdings as we continue to see strong demand for our advertising solutions within the numerous industries in which we operate. Our unique, differentiated approach to both the buy- and sell-side verticals within our business continue to separate Direct Digital Holdings from the rest and we greatly look forward to growing all aspects of our business through the rest of 2023 and beyond.”  

Second Quarter 2023 Business Highlights

  • For the second quarter ended June 30, 2023, Direct Digital Holdings processed approximately 300 billion monthly impressions through its sell-side advertising segment, an increase of 205% over the same period of 2022.
  • In addition, the Company’s sell-side advertising platforms received over 11.2 billion bid responses in the second quarter of 2023, an increase of over 70% over the same period in 2022, through 119,000 advertisers for the quarter, which equates to a 34% increase over the same period in 2022.
  • The Company’s buy-side advertising segment served approximately 227 customers in the second quarter of 2023, a decrease of 7% compared to the same period of 2022. However, revenue per customer of $52,000 in the second quarter of 2023 increased 36% compared to the same period of 2022.

Second quarter 2023 Financial Highlights:

  • Revenue was $35.4 million in the second quarter of 2023, an increase of $14.1 million, or 67% over the $21.3 million in the same period of 2022.

    • Sell-side advertising segment revenue grew to $23.6 million and contributed $11.7 million of the increase, or 98% growth over the $11.9 million of sell-side revenue in the same period of 2022.
    • Buy-side advertising segment revenue grew to $11.8 million and contributed $2.5 million of the increase, or 27% growth over the $9.3 million of buy-side revenue in the same period of 2022.
  • Consolidated operating income was $2.3 million for the second quarter of 2023 compared to consolidated operating income of $3.1 million in the same period of 2022.
  • The operating income of our business segments for the second quarter of 2023 was $6.1 million compared to the operating income of our business segments of $4.8 million in the same period of 2022, an increase of 28% year-over-year.
  • Net income was $1.2 million in the second quarter of 2023, compared to net income of $2.6 million in the same period of 2022. Net income was negatively impacted by higher operating expenses associated with investments in growth as well as operating as a public company and higher interest expense.
  • Adjusted EBITDA(1) was $3.1 million in the second quarter 2023, compared to $3.6 million in the same period of 2022.

Financial Outlook

Assuming the U.S. economy does not experience any major economic conditions that deteriorate or otherwise significantly reduce advertiser demand, we are increasing our previously issued estimate as disclosed in our Q1 2023 update:

  • For fiscal year 2023, we expect revenue to be in the range of $125 million to $130 million, or 43% year-over-year growth at the mid-point.

“Our financial results illustrate the momentum we continue to see in our overall business and specifically a strong acceleration within our sell-side segment. We have also further solidified our balance sheet and provided the company additional financial flexibility via our previously announced $5 million revolving credit facility, positioning us well to continue growing in 2023 and maximizing value for our shareholders,” commented Diana Diaz, Chief Financial Officer.  

Conference Call and Webcast Details

Direct Digital Holdings will host a conference call on Thursday, August 10, 2023 at 5:00 p.m. Eastern Time to discuss the Company’s second quarter 2023 financial results. The live webcast and replay can be accessed at https://ir.directdigitalholdings.com/. Please access the website at least fifteen minutes prior to the call to register, download and install any necessary audio software. For those who cannot access the webcast, a replay will be available at https://ir.directdigitalholdings.com/ for a period of twelve months.

Footnotes

(1) “Adjusted EBITDA” is a non-GAAP financial measure. The section titled “Non-GAAP Financial Measures” below describes our usage of non-GAAP financial measures and provides reconciliations between historical GAAP and non-GAAP information contained in this press release.

Forward Looking Statements

This press release may contain forward-looking statements within the meaning of federal securities laws, including the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and which are subject to certain risks, trends and uncertainties.

As used below, “we,” “us,” and “our” refer to the Company. We use words such as “could,” “would,” “may,” “might,” “will,” “expect,” “likely,” “believe,” “continue,” “anticipate,” “estimate,” “intend,” “plan,” “project” and other similar expressions to identify forward-looking statements, but not all forward-looking statements include these words. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements.

All of our forward-looking statements involve estimates and uncertainties that could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. Our forward-looking statements are based on assumptions that we have made in light of our industry experience and our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. Although we believe that these forward-looking statements are based on reasonable assumptions, many factors could affect our actual operating and financial performance and cause our performance to differ materially from the performance expressed in or implied by the forward-looking statements, including, but not limited to: our dependence on the overall demand for advertising, which could be influenced by economic downturns; any slow-down or unanticipated development in the market for programmatic advertising campaigns; the effects of health epidemics; operational and performance issues with our platform, whether real or perceived, including a failure to respond to technological changes or to upgrade our technology systems; any significant inadvertent disclosure or breach of confidential and/or personal information we hold, or of the security of our or our customers’, suppliers’ or other partners’ computer systems; any unavailability or non-performance of the non-proprietary technology, software, products and services that we use; unfavorable publicity and negative public perception about our industry, particularly concerns regarding data privacy and security relating to our industry’s technology and practices, and any perceived failure to comply with laws and industry self-regulation; restrictions on the use of third-party “cookies,” mobile device IDs or other tracking technologies, which could diminish our platform’s effectiveness; any inability to compete in our intensely competitive market; any significant fluctuations caused by our high customer concentration; our limited operating history, which could result in our past results not being indicative of future operating performance; any violation of legal and regulatory requirements or any misconduct by our employees, subcontractors, agents or business partners; any strain on our resources, diversion of our management’s attention or impact on our ability to attract and retain qualified board members as a result of being a public company; our dependence, as a holding company, on receiving distributions from Direct Digital Holdings, LLC to pay our taxes, expenses and dividends; and other factors and assumptions discussed in the “Risk Factors,” “Management’s Discussion and Analysis of Financial Conditions and Results of Operations” and other sections of our filings with the Securities and Exchange Commission that we make from time to time. Should one or more of these risks or uncertainties materialize or should any of these assumptions prove to be incorrect, our actual operating and financial performance may vary in material respects from the performance projected in these forward-looking statements. Further, any forward-looking statement speaks only as of the date on which it is made, and except as required by law, we undertake no obligation to update any forward-looking statement contained in this press release to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances, and we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

About Direct Digital Holdings

Direct Digital Holdings (Nasdaq: DRCT), owner of operating companies Colossus SSP, Huddled Masses, and Orange 142, brings state-of-the-art sell- and buy-side advertising platforms together under one umbrella company. Direct Digital Holdings’ sell-side platform, Colossus SSP, offers advertisers of all sizes extensive reach within general market and multicultural media properties. The company’s subsidiaries Huddled Masses and Orange142 deliver significant ROI for middle market advertisers by providing data-optimized programmatic solutions at scale for businesses in sectors that range from energy to healthcare to travel to financial services. Direct Digital Holdings’ sell- and buy-side solutions manage approximately 136,000 clients monthly, generating over 250 billion impressions per month across display, CTV, in-app and other media channels.  

CONSOLIDATED BALANCE SHEETS
June 30, 2023December 31, 2022
ASSETS
CURRENT ASSETS
Cash and cash equivalents$5,668,479$4,047,453
Accounts receivable, net29,628,79726,354,114
Prepaid expenses and other current assets1,051,982883,322
Total current assets36,349,25831,284,889
Property, equipment and software, net of accumulated depreciation and amortization of $155,698 and $34,218, respectively688,716673,218
Goodwill6,519,6366,519,636
Intangible assets, net12,660,85013,637,759
Deferred tax asset, net5,170,8705,164,776
Operating lease right-of-use assets714,129798,774
Other long-term assets46,98746,987
Total assets$62,150,446$58,126,039
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable$23,357,665$17,695,404
Accrued liabilities3,879,4204,777,764
Liability related to tax receivable agreement, current portion40,112182,571
Notes payable, current portion982,500655,000
Deferred revenues950,831546,710
Operating lease liabilities, current portion47,66891,989
Income taxes payable22,280174,438
Related party payables1,197,1751,448,333
Total current liabilities30,477,65125,572,209
Notes payable, net of short-term portion and deferred financing cost of $1,858,720 and $2,115,161, respectively22,515,03022,913,589
Economic Injury Disaster Loan150,000150,000
Liability related to tax receivable agreement, net of current portion4,246,2634,149,619
Operating lease liabilities, net of current portion741,771745,340
Total liabilities58,130,71553,530,757
COMMITMENTS AND CONTINGENCIES (Note 9)
STOCKHOLDERS’ EQUITY
Class A common stock, $0.001 par value per share, 160,000,000 shares authorized, 3,519,780 and 3,252,764 shares issued and outstanding, respectively3,5203,253
Class B common stock, $0.001 par value per share, 20,000,000 shares authorized, 11,278,000 shares issued and outstanding11,27811,278
Additional paid-in capital8,539,8588,224,012
Accumulated deficit(4,534,925)(3,643,261)
Total stockholders’ equity4,019,7314,595,282
Total liabilities and stockholders’ equity$62,150,446$58,126,039
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months EndedFor the Six Months Ended
June 30, June 30, 
2023202220232022
Revenues
Buy-side advertising$11,803,092$9,321,267$19,242,758$15,152,308
Sell-side advertising23,600,70811,940,04137,383,95217,479,337
Total revenues35,403,80021,261,30856,626,71032,631,645
Cost of revenues
Buy-side advertising4,587,8973,154,4717,537,0505,223,817
Sell-side advertising20,743,2669,771,01732,583,97214,291,209
Total cost of revenues25,331,16312,925,48840,121,02219,515,026
Gross profit10,072,6378,335,82016,505,68813,116,619
Operating expenses
Compensation, taxes and benefits4,553,0293,494,6928,187,3256,049,728
General and administrative3,265,1601,776,9816,205,2543,417,873
Total operating expenses7,818,1895,271,67314,392,5799,467,601
Income from operations2,254,4483,064,1472,113,1093,649,018
Other income (expense)
Other income42,313—92,14147,982
Forgiveness of Paycheck Protection Program loan—287,143—287,143
Loss on redemption of non-participating preferred units———(590,689)
Contingent loss on early termination of line of credit——(299,770)—
Interest expense(1,027,493)(650,251)(2,044,794)(1,364,038)
Total other expense(985,180)(363,108)(2,252,423)(1,619,602)
Income (loss) before taxes1,269,2682,701,039(139,314)2,029,416
Tax expense (benefit)74,31286,676(336)86,676
Net income (loss)$1,194,956$2,614,363$(138,978)$1,942,740
Net income (loss) per common share:
Basic$0.08$0.18$(0.01)$0.18
Diluted$0.08$0.18$(0.01)$0.18
Weighted-average number of shares of common stock outstanding:
Basic14,772,62414,257,82714,676,09610,701,715
Diluted14,834,05114,257,82714,676,09610,701,715
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six Months Ended June 30, 
20232022
Cash Flows Provided By Operating Activities:
Net income (loss)$(138,978)$1,942,740
 Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Amortization of deferred financing costs272,008301,105
Amortization of intangible assets976,909976,909
Amortization of right-of-use assets84,64550,021
Amortization of capitalized software104,005—
Depreciation of property and equipment17,475—
Stock-based compensation304,01315,407
Forgiveness of Paycheck Protection Program loan—(287,143)
Deferred income taxes(6,094)38,966
Payment on tax receivable agreement(45,815)—
Loss on redemption of non-participating preferred units—590,689
Contingent loss on early termination of line of credit299,770—
Bad debt expense51,53224,799
Changes in operating assets and liabilities:
Accounts receivable(3,326,215)(6,996,667)
Prepaid expenses and other assets(256,496)386,258
Accounts payable5,662,2613,406,355
Accrued liabilities(769,344)601,699
Income taxes payable(152,158)47,710
Deferred revenues404,121(905,111)
Operating lease liability(47,890)(49,422)
Related party payable(251,158)(70,801)
Net cash provided by operating activities3,182,59173,514
Cash Flows Used In Investing Activities:
Cash paid for capitalized software and property and equipment(136,978)—
Net cash used in investing activities(136,978)—
Cash Flows Provided by (Used In) Financing Activities:
Payments on term loan(327,500)(275,000)
Payments of litigation settlement(129,000)—
Payment of deferred financing costs(227,501)(185,093)
Proceeds from Issuance of Class A common stock, net of transaction costs—11,212,043
Redemption of common units—(3,237,838)
Redemption of non-participating preferred units—(7,046,251)
Proceeds from warrants exercised12,100—
Distributions to members(752,686)(309,991)
Net cash provided by (used in) financing activities(1,424,587)157,870
Net increase in cash and cash equivalents1,621,026231,384
Cash and cash equivalents, beginning of the period4,047,4534,684,431
Cash and cash equivalents, end of the period$5,668,479$4,915,815
Supplemental Disclosure of Cash Flow Information:
Cash paid for taxes$348,862$—
Cash paid for interest$1,769,452$1,058,548
Non-cash Financing Activities:
Transaction costs related to issuances of Class A shares included in accrued liabilities$—$1,045,000
Common unit redemption balance included in accrued liabilities$—$3,962,162
Outside basis difference in partnership$—$3,234,000
Tax receivable agreement payable to Direct Digital Management, LLC$—$2,748,900
Tax benefit on tax receivable agreement$—$485,100

NON-GAAP FINANCIAL MEASURES

In addition to our results determined in accordance with U.S. generally accepted accounting principles (“GAAP”), including, in particular operating income, net cash provided by operating activities, and net income, we believe that earnings before interest, taxes, depreciation and amortization (“EBITDA”), as adjusted for stock compensation expense, loss on early termination of line of credit, and loss on early extinguishment of debt, and loss on early redemption of non-participating preferred units (“Adjusted EBITDA”), a non-GAAP financial measure, is useful in evaluating our operating performance. The most directly comparable GAAP measure to Adjusted EBITDA is net income (loss).

In addition to operating income and net income, we use Adjusted EBITDA as a measure of operational efficiency. We believe that this non-GAAP financial measure is useful to investors for period-to-period comparisons of our business and in understanding and evaluating our operating results for the following reasons:

  • Adjusted EBITDA is widely used by investors and securities analysts to measure a company’s operating performance without regard to items such as depreciation and amortization, interest expense, provision for income taxes, and certain one-time items such as acquisition transaction costs and gains from settlements or loan forgiveness that can vary substantially from company to company depending upon their financing, capital structures and the method by which assets were acquired;
  • Our management uses Adjusted EBITDA in conjunction with GAAP financial measures for planning purposes, including the preparation of our annual operating budget, as a measure of operating performance and the effectiveness of our business strategies and in communications with our board of directors concerning our financial performance; and
  • Adjusted EBITDA provides consistency and comparability with our past financial performance, facilitates period-to-period comparisons of operations, and also facilitates comparisons with other peer companies, many of which use similar non-GAAP financial measures to supplement their GAAP results.

Our use of this non-GAAP financial measure has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under GAAP. The following table presents a reconciliation of Adjusted EBITDA to net income (loss) for each of the periods presented:

NON-GAAP FINANCIAL METRICS (unaudited)
For the Three Months Ended June 30, For the Six Months Ended June 30, 
2023202220232022
Net income (loss)$1,194,956$2,614,363$(138,978)$1,942,740
Add back (deduct):
Interest expense1,027,493650,2512,044,7941,364,038
Stock-based compensation209,47515,407304,01415,407
Amortization of intangible assets488,455488,455976,909976,909
Depreciation and amortization of property and equipment64,988—121,480—
Contingent loss on early termination of line of credit——299,770—
Tax expense (benefit)74,31286,676(336)86,676
Forgiveness of PPP loan—(287,143)—(287,143)
Loss on early redemption of non-participating preferred units———590,689
Adjusted EBITDA$3,059,679$3,568,009$3,607,653$4,689,316

Contacts:

Investors:
Brett Milotte, ICR
Brett.Milotte@icrinc.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/direct-digital-holdings-reports-second-quarter-2023-financial-results-301898267.html

SOURCE Direct Digital Holdings

Investors in Gambling are Winning Big this Year

Posted on by phoffman@channelchek.com

How the Popularity of Parlay Betting is Helping the Major Players

The business of gambling keeps growing as more types of wagers become popular and a friendlier legal environment encourages major players like DraftKings (DKNG) and FanDuel (PDYPF), as well as smaller online sites. A new online betting trend has been particularly profitable for companies who include it in their product line-up. Although specific financials remain undisclosed, parlay betting has dramatically added to the bottom line of some sportsbooks.

While not public, an analysis published in Barron’s of state gambling regulatory data shows the average amount the house keeps from the wagers is around 20% for parlay bets. This compares quite favorably to the 5% kept by conventional individual outcome wagers.

What is a Parlay Bet?

A parlay bet is a type of sports bet where you combine two or more individual bets into one single all-or-nothing bet.  The payout for a parlay bet is much higher than for a single bet, but the probability of winning is much lower.  

For example, let’s say you want to bet on the following three NFL games:

The Dallas Cowboys to beat the New York Giants

The Tampa Bay Buccaneers to beat the Philadelphia Eagles

The Miami Dolphins to beat the New York Jets

You could place three separate bets on these games, but you would only win a small amount of money if all three bets won. Instead, you could place a parlay bet on all three games. If you win the parlay bet, you will win a much larger amount.

The payout for a parlay bet is calculated by multiplying the odds of each individual bet together. So, if the odds of the Cowboys winning are 1.50, the odds of the Buccaneers winning are 2.00, and the odds of the Dolphins winning are 1.75, the odds of the parlay bet winning would be 1.50 x 2.00 x 1.75 = 5.25.

This means that if you bet $100 on the parlay bet, you would win $525 if all three bets won.

Gambling companies emphasize that parlays are no gimmick. The odds aren’t skewed in the company’s favor or anything shifty; rather, parlays introduce higher odds against bettors due to the cumulative impact of various outcomes. Betting on multiple events, even up to 10, compounds the odds of each event’s success. This is how the casinos’ 4% to 5% edge evolves into a substantial 20%.

Margins are Better for Companies

The increase in earnings from these bets has helped lift stock values much higher than the overall market.

The growing popularity of parlay bets has also served to increase the appetite in the U.S. for sports betting. In 2018 a Supreme Court’s ruling opened the doors for sports gambling, leaving the decision to legalize it to individual states. Since then, 38 states and Washington, D.C. have legalized sports betting, with online betting approved in 24 of them. The operators amassed a gross revenue of $7.5 billion in 2022, as per the American Gaming Association, and numerous analysts speculate that further state legalization and innovative trends such as parlays could propel the market up to $30 billion or more.

The big two, DraftKings and Flutter/FanDuel dominate the market after spending heavily for years on advertising.  Their state-of-the-art technology and popular parlays have helped increase market share. The companies are now veering away from over-the-top marketing, as evidenced by the 49% dip in TV ad spending by online sports betting firms in Q2, and DraftKings’ 10% reduction in marketing expenditures in established markets during the latest quarter.

Regardless of market dominance, parlays are poised to proliferate due to their popularity and profitability. While Las Vegas has long capitalized on the attractiveness of quick riches, the advent of online companies’ represents a distinct shift in the dynamics. Unlike casinos that can’t dramatically boost their own profitability in games like blackjack, the digital platforms can reach the masses electronically and digitally.

As mentioned, this surge in parlays resonates with the penchant for sudden riches, and can be witnessed  far beyond Las Vegas. The recent Mega-Millions $1.55 billion prize had players lined up in the summer heat to pay for an almost impossible chance of winning. Platforms like Robinhood appealed to the high-risk high-return nature of many and amassed more brokerage customers in a year than any other company in history.

Parlays effectively tap into and profit handsomely off the mentality of all-or-nothing large gains. A mere $10 parlay could translate into thousands in winnings, mirroring the “got to be in it to win it” feeling of the lottery. But here, the bettor can feel more in control.

Take Away

The overall stock market performance is reported each trading day in popular indexes, but there are individual sectors that rise, or fall separately and at a different pace than each index. Index funds and ETF buyers are beginning to realize that a portion of their portfolio invested in industries and companies that are showing more strength than the S&P, Dow, or Nasdaq indexes may allow for enhanced performance. Many keep the largest allocation in an indexed fund or ETF to still maintain the diversification that prompted the indexed fund investment to begin with.

This December hundreds of investors will be attending NobleCon19 in order to discover actionable ideas they can invest in. The investment conference is the place where both professional and self-directed market participants go to become familiar with less mainstream companies and management. You’re invited – go here for all the information you will need to join us in Florida later this year.

Paul Hoffman

Managing Editor, Channelchek

Sources

https://www.igb.illinois.gov/

https://www.barrons.com/articles/sports-betting-parlay-online-gaming-apps-25914b0f?mod=hp_columnists

X.com’s CEO Speaks Up

Posted on by phoffman@channelchek.com
Source: CNBC, (August 10, 2023)

X, the Company Formerly Known as Twitter – Here’s Why It Rebranded

If you’re like me, when Elon Musk announced a rebranding of Twitter to the new name X, you waited for the punchline – or thought of it as a stunt. Although weeks later I’m still typing “Twitter” into my search bar, and still refer to posts as tweets.” I have become sure that this is no stunt, it is a business decision. A decision that begs the question, Why?

This week, X’s CEO, Linda Yaccarino shared her insights in a CNBC interview. She explained the company’s decision to rebrand from Twitter, citing alignment with owner Elon Musk’s overall strategic vision for the platform and how Musk, who has owned the URL X.com since his PayPal days, has championed the social media company as the future, all-encompassing app.

“Elon has been talking about X, the everything app, for a very long time,” Yaccarino said during the interview with CNBC’s Sara Eisen. “Even when we announced that I was joining the company, I was joining the company to partner with Elon to transform Twitter into X, the everything app,” Yaccarino said.

Yaccarino, who took the helm in June, indicated the transformation and growth include extended video content, articles, and even subscriptions to content providers.

“Think about what’s happened since the acquisition,” X’s CEO elaborated, “Experiences and evolution into long-form video and articles, subscribe to your favorite creators, who are now earning a real living on the platform. You look at video, and soon you’ll be able to make video chat calls without having to give your phone number to anyone on the platform.”

Attention was brought to the once microblogging platform’s  intentions to facilitate transactions between users, friends, and content creators. The past Twitter was confining, she explained, the new brand will allow evolution without a legacy mindset.

“The rebrand represented really a liberation from Twitter,” she said. “A liberation that allowed us to evolve past a legacy mindset and thinking. And to reimagine how everyone, how everyone on Spaces who’s listening, everybody who’s watching around the world. It’s going to change how we congregate, how we entertain, and how we transact all in one platform.”

The CNBC host asked about the risk in light of name recognition, Yaccarino responded likening the change Johnson & Johnson made by spinning off Band-Aids and Tylenol brands under the new name Kenvue. Her reply suggested the tech giant is almost entrepreneurial now, and can begin with a start-up mentality.

“If you stay Twitter, or you stay whatever your previous brand is, change tends to be only incremental. And you get graded by a legacy report card,” Yaccarino said. “And at X we think about what’s possible. Not the incremental change of what can’t be done.” She pointed to the new product changes and infrastructure improvements, saying it “answers the question of ‘why rebrand?’”

About Yaccarino’s Duties

She is operating independently under Musk’s leadership, Yaccarino assured.

“The roles of Elon and myself are well-defined.” She continued, “Elon is working on accelerating the rebrand and working on the future,”  adding, “and I’m responsible for the rest. Running the company, from partnerships to legal to sales to finance.”

Questions regarding Yaccarino’s autonomy within Musk’s framework had arisen due to his comprehensive control over the company and his ventures like Tesla and SpaceX.

Yaccarino, formerly a senior advertising executive at NBC Universal, underscored X’s dedication to enhancing the advertiser experience. This commitment arose from brands withdrawing from the platform following Musk’s acquisition of Twitter.

A large part of the Twitter brand has in the past been questioned by advertisers related to trust and safety. Yaccarino disclosed that X’s trust and safety team is now more capable compared to its pre-acquisition state. While acknowledging that not all content may align with everyone’s views, she highlighted efforts to improve the platform’s content environment.

In November, Twitter disbanded its ethical artificial intelligence team and downsized its trust and safety department. This move halted the team’s work on “algorithmic amplification monitoring,” which mainly aimed to scrutinize content amplification during elections and political events. This stands in sharp contrast to the trust which the new brand has been building.

Rebuilding advertiser confidence stands as a large challenge for Yaccarino. Musk has claimed continuous spikes in user engagement, but concrete data supporting these claims are slim. Yaccarino pointed out the return of prominent brands like Coca-Cola and Visa to advertising under her leadership, facilitated by her direct engagement with marketing and communication executives.

Yaccarino asserted that brands are now insulated from the risk of adjacency to problematic content. She acknowledged that content that is “lawful but awful” can be challenging to manage but emphasized the company’s new content controls in reducing such risks for advertisers.

Yaccarino also addressed the threat posed by Meta’s Threads, indicating that while it hasn’t fully taken off since its high-profile launch, it’s essential to stay vigilant about competitors. Despite already commanding substantial advertiser spending through Instagram and Facebook, Meta’s Threads has yet to introduce advertising.

As for a potential octagon face-off between Musk and Meta CEO Mark Zuckerberg, Yaccarino took a playful stance saying that if the event occurred, Musk “is training” and noted the potential for a great brand sponsorship opportunity.

Paul Hoffman

Managing Editor, Channelchek

Sources

https://www.nbcnews.com/news/us-news/twitter-rebrands-x-elon-musk-loses-iconic-bird-logo-rcna95880

https://www.wsj.com/articles/j-j-says-new-band-aid-and-tylenol-company-to-be-named-kenvue-11664365578

https://www.cnbc.com/video/2023/08/10/x-corp-now-a-much-healthier-and-safer-platform-than-a-year-ago-says-linda-yaccarino.html

Entravision Communications (EVC) – Trying to Rope a Bull By Its Horns

Posted on by cpereira@noblefcm.com


Friday, August 04, 2023

Entravision Communications Corporation is a diversified Spanish-language media company utilizing a combination of television and radio operations to reach Hispanic consumers across the United States, as well as the border markets of Mexico. Entravision owns and/or operates 53 primary television stations and is the largest affiliate group of both the top-ranked Univision television network and Univision’s TeleFutura network, with television stations in 20 of the nation’s top 50 Hispanic markets. The Company also operates one of the nation’s largest groups of primarily Spanish-language radio stations, consisting of 48 owned and operated radio stations.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Mixed Q2 results. While revenues beat expectations ($273.4 million versus our $262.9 million estimate), adj. EBITDA was 13% lower than expected ($14.2 million versus our $16.4 million estimate). The revenue variance was due to its Digital revenue, $10 million above our expectations. Notably, the biggest adj. EBITDA variance was due to lower margins in its Digital Media segment. 

A Facebook faceplant. The company’s Digital Media margins going forward will be adversely affected by Meta (Facebook) is reducing Entravision’s commission revenue, from 10% to 7%. We estimate that this will adversely affect the company by over $8 million in adj. EBITDA in the second half 2023. While margins will take a hit, the company’s Digital Media revenue growth appears favorable and adj. EBITDA is expected to grow strong double digits in 2024. 


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Will X Transform into the Ultimate Trading Hub for Stocks and Crypto?

Posted on by phoffman@channelchek.com

Plans for the Platform Formerly Known as “Twitter”

Elon Musk, who counts the old Twitter among the companies he oversees, has plans for a mega-financial component to the social media platform that has been rebranded as X.  The serial entrepreneur has in the past discussed the “everything” app WeChat as a model for X’s direction. WeChat is a product available to banking clients in China, as a useful do-it-all tool chest. Musk says it has no equal in the U.S. Part of what is expected from Elon’s team is enabling users of X to trade stock and cryptocurrencies and also perform all that fintech companies like PayPal provide.

Embracing a New Direction

Molding X into the ultimate multi-functional app may be beginning to take shape and gain momentum. Musk may not have invented Twitter, but he plans on reinventing it with some very aggressive plans under the new name.

Evidence of this comes from Musk and his team’s discussions with a prominent financial data powerhouse to establish a trading hub within the X platform, including real-time market data. Leaked documents, as reported by the news source Semafor, and conversations with insiders have revealed the huge initiative. It is unclear whether X has secured partnerships for its additional direction at this point.

Fuzzy Business Benefit to Partnerships

X’s outreach to potential partners highlights the company’s promise of access to a massive social media user base numbering in the hundreds of millions. The proposal requests don’t mention compensation for the project, according to Liz Hoffman at Semafor.

Plans of incorporating a trading hub within the X platform have been brought up in the past. Not long ago eTORO, a unique social investment platform, had unveiled plans to facilitate the trading of various assets, including cryptocurrencies, directly to users, through a strategic partnership of what was then Twitter.

If the plans for an in-app trading hub materialize, given Musk’s evident familiarity with Dogecoin and other digital assets, X could potentially become a hub for cryptocurrency trading. Much of the the crypto regulatory world is still being written on a battlefield by various parties with different interests. This prospect might extend to established cryptocurrencies like bitcoin (BTC), which could be perceived as a relatively secure asset within some regulatory frameworks.

Elon Musk’s innovative drive is propelling X towards uncharted territory. As the app evolves, the prospect of a comprehensive trading hub integrated seamlessly within the platform could redefine the way users engage with their finances and investments. While details are understandably not public, knowledge that this may be unfolding and the potential power and disruption it may create are undeniable.

In Response to Unusual Whales Post

The Future Remains Unpredictable

In a reply to a social post on X by @unusual_whales which read, “Twitter/X is planning to launch its own stock trading platform, per XNewsDaily,” Musk did not completely dismiss the existence of any plans but did not in any way confirm that there has been any real movement in this direction.

Sources

https://www.semafor.com/article/08/03/2023/elon-musks-plan-to-own-the-meme-stocks

https://www.businessinsider.com/guides/tech/what-is-wechat

Release – Direct Digital Holdings to Report Second Quarter 2023 Financial Results

Posted on by aweinsoff@channelchek.com

Research News and Market Data on DRCT

July 27, 2023 9:00am EDT

HOUSTON, July 27, 2023 /PRNewswire/ — Direct Digital Holdings, Inc. (Nasdaq: DRCT) (“Direct Digital Holdings” or the “Company”), a leading advertising and marketing technology platform operating through its companies Colossus Media, LLC (“Colossus SSP”), Huddled Masses LLC (“Huddled Masses”) and Orange142, LLC (“Orange142”), today announced that the Company will report financial results for the second quarter of fiscal year 2023 ended June 30, 2023 on Thursday, August 10, 2023 after the U.S. stock market closes. Management will host a conference call and webcast on the same day at 5:00 PM ET to discuss the results.

The live webcast and replay can be accessed at https://ir.directdigitalholdings.com/.

About Direct Digital Holdings
Direct Digital Holdings (Nasdaq: DRCT), owner of operating companies Colossus SSP, Huddled Masses, and Orange 142, brings state-of-the-art sell- and buy-side advertising platforms together under one umbrella company. Direct Digital Holdings’ sell-side platform, Colossus SSP, offers advertisers of all sizes extensive reach within general market and multicultural media properties. The company’s subsidiaries Huddled Masses and Orange142 deliver significant ROI for middle market advertisers by providing data-optimized programmatic solutions at scale for businesses in sectors that range from energy to healthcare to travel to financial services. Direct Digital Holdings’ sell- and buy-side solutions manage approximately 153,000 clients monthly, generating over 100 billion impressions per month across display, CTV, in-app and other media channels. Direct Digital Holdings is the ninth black-owned company to go public in the U.S. and was named a top minority-owned business by The Houston Business Journal.

Contacts:
Investors:
Brett Milotte, ICR
Brett.Milotte@icrinc.com

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SOURCE Direct Digital Holdings

Released July 27, 2023

Release – Harte Hanks to Report Second Quarter Results on August 10, 2023

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Research News and Market Data on HHS

Thursday, July 27, 2023 8:30 AM

CHELMSFORD, MA / ACCESSWIRE / July 27, 2023 / Harte Hanks, Inc. (NASDAQ:HHS), a leading global customer experience company focused on bringing companies closer to customers for nearly 100 years, announced today that the company will release financial results for the second quarter period ended June 30, 2023 on Thursday, August 10, 2023 after the close of the market.

The Company will host a conference call and live webcast to discuss these results at 4:30 p.m. EST on the same day. Interested parties may access the webcast at https://investors.hartehanks.com/events or may access the conference call by dialing 877-545-0320in the United States or 973-528-0002from outside the U.S. and using access code 183563.

A replay of the call can also be accessed via phone through August 24, 2023 by dialing (877) 481-4010 from the U.S., or (919) 882-2331 from outside the U.S. The conference call replay passcode is 48804.

About Harte Hanks:

Harte Hanks (NASDAQ:HHS) is a leading global customer experience company whose mission is to partner with clients to provide them with CX strategy, data-driven analytics and actionable insights combined with seamless program execution to better understand, attract and engage their customers.

Using its unparalleled resources and award-winning talent in the areas of Customer Care, Fulfillment and Logistics, and Marketing Services, Harte Hanks has a proven track record of driving results for some of the world’s premier brands, including Bank of America, GlaxoSmithKline, Unilever, Pfizer, HBOMax, Volvo, Ford, FedEx, Midea, Sony and IBM among others. Headquartered in Chelmsford, Massachusetts, Harte Hanks has over 2,500 employees in offices across the Americas, Europe, and Asia Pacific.

For more information, visit hartehanks.com

As used herein, “Harte Hanks” or “the Company” refers to Harte Hanks, Inc. and/or its applicable operating subsidiaries, as the context may require. Harte Hanks’ logo and name are trademarks of Harte Hanks.

Investor Relations Contact:

Rob Fink or Tom Baumann
646.809.4048 / 646.349.6641
FNK IR
HHS@fnkir.com

For media inquiries, contact Jennifer London at Jen.London@HarteHanks.com

SOURCE: Harte Hanks, Inc.

Release – Direct Digital Holdings Announces New $5 Million Revolving Credit Facility with East West Bank

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Research News and Market Data on DRCT

July 13, 2023 9:00am EDT

HOUSTON, July 13, 2023 /PRNewswire/ — Direct Digital Holdings, Inc. (Nasdaq: DRCT) (“Direct Digital Holdings” or the “Company”), a leading advertising and marketing technology platform operating through its companies Colossus Media, LLC (“Colossus SSP”), Huddled Masses LLC (“Huddled Masses”) and Orange142, LLC (“Orange142”), is pleased to announce it has entered into a $5 million revolving credit facility (the “Credit Facility”) with East West Bank.

In addition to the principal amount of up to $5 million, the Company has access to up to an additional $5 million uncommitted incremental revolving facility, which may increase the aggregate principal amount of the credit facility to $10 million. Loans under the Credit Facility mature on July 7, 2025, unless the Credit Facility is otherwise terminated pursuant to its terms.

Mark D. Walker, Chairman & Chief Executive Officer of Direct Digital Holdings, commented, “We are excited to begin our relationship with East West Bank and are appreciative of the financial flexibility and liquidity that this partnership provides. We look forward to continuing to invest in and grow our businesses through this new source of non-dilutive capital.”

For more information, please view our Form 8-K filed with the Securities and Exchange Commission at www.sec.gov.

About Direct Digital Holdings

Direct Digital Holdings (Nasdaq: DRCT), owner of operating companies Colossus SSP, Huddled Masses, and Orange 142, brings state-of-the-art sell- and buy-side advertising platforms together under one umbrella company. Direct Digital Holdings’ sell-side platform, Colossus SSP, offers advertisers of all sizes extensive reach within general market and multicultural media properties. The company’s subsidiaries Huddled Masses and Orange142 deliver significant ROI for middle market advertisers by providing data-optimized programmatic solutions at scale for businesses in sectors that range from energy to healthcare to travel to financial services. Direct Digital Holdings’ sell- and buy-side solutions manage approximately 153,000 clients monthly, generating over 100 billion impressions per month across display, CTV, in-app and other media channels. Direct Digital Holdings is the ninth black-owned company to go public in the U.S. and was named a top minority-owned business by The Houston Business Journal.

Forward Looking Statements

This press release may contain forward-looking statements within the meaning of federal securities laws, including the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and which are subject to certain risks, trends and uncertainties.

As used below, “we,” “us,” and “our” refer to Direct Digital Holdings. We use words such as “could,” “would,” “may,” “might,” “will,” “expect,” “likely,” “believe,” “continue,” “anticipate,” “estimate,” “intend,” “plan,” “project” and other similar expressions to identify forward-looking statements, but not all forward-looking statements include these words. All statements contained in this release that do not relate to matters of historical fact should be considered forward-looking statements.

All of our forward-looking statements involve estimates and uncertainties that could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. Our forward-looking statements are based on assumptions that we have made in light of our industry experience and our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. Although we believe that these forward-looking statements are based on reasonable assumptions, many factors could affect our actual operating and financial performance and cause our performance to differ materially from the performance expressed in or implied by the forward-looking statements, including, but not limited to: our dependence on the overall demand for advertising, which could be influenced by economic downturns; any slow-down or unanticipated development in the market for programmatic advertising campaigns; the effects of health epidemics, such as the ongoing global COVID-19 pandemic; operational and performance issues with our platform, whether real or perceived, including a failure to respond to technological changes or to upgrade our technology systems; any significant inadvertent disclosure or breach of confidential and/or personal information we hold, or of the security of our or our customers’, suppliers’ or other partners’ computer systems; any unavailability or non-performance of the non-proprietary technology, software, products and services that we use; unfavorable publicity and negative public perception about our industry, particularly concerns regarding data privacy and security relating to our industry’s technology and practices, and any perceived failure to comply with laws and industry self-regulation; restrictions on the use of third-party “cookies,” mobile device IDs or other tracking technologies, which could diminish our platform’s effectiveness; any inability to compete in our intensely competitive market; any significant fluctuations caused by our high customer concentration; any violation of legal and regulatory requirements or any misconduct by our employees, subcontractors, agents or business partners; any strain on our resources, diversion of our management’s attention or impact on our ability to attract and retain qualified board members as a result of being a public company; our dependence, as a holding company, of receiving distributions from Direct Digital Holdings, LLC to pay our taxes, expenses and dividends; changes in the overall credit market or our creditworthiness; and other factors and assumptions discussed in the “Risk Factors,” “Management’s Discussion and Analysis of Financial Conditions and Results of Operations” and other sections of our filings with the SEC that we make from time to time. Should one or more of these risks or uncertainties materialize or should any of these assumptions prove to be incorrect, our actual operating and financial performance may vary in material respects from the performance projected in these forward-looking statements. Further, any forward-looking statement speaks only as of the date on which it is made, and except as required by law, we undertake no obligation to update any forward-looking statement contained in this release to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances, and we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

Contacts:
Investors:
Brett Milotte, ICR
Brett.Milotte@icrinc.com

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SOURCE Direct Digital Holdings

Release – Direct Digital Holdings Executives Mark D. Walker and Keith Smith Named EY Entrepreneur Of The Year® 2023 Gulf South Award Winners

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Research News and Market Data on DRCT

June 20, 2023 9:00am EDT

AdTech company co-founders selected for prestigious regional award celebrating ambitious entrepreneurs who are building a better world

HOUSTON, June 20, 2023 /PRNewswire/ — Direct Digital Holdings, Inc. (Nasdaq: DRCT) (“Direct Digital Holdings” or the “Company”), a leading advertising and marketing technology platform operating through its companies Colossus Media, LLC (“Colossus SSP”), Huddled Masses LLC (“Huddled Masses”) and Orange142, LLC (“Orange142”), today announced that its co-founders, Mark D. Walker, Chairman and CEO, and Keith Smith, President, were selected by Ernst & Young LLP (EY US) as Entrepreneur Of The Year® 2023 Gulf South Award winners.

Direct Digital Holdings and its subsidiaries create a unique advertising ecosystem that offers services on both the ad-buy and ad-sell sides, strategically positioning the company to reach consumers, brands and publishers of all sizes.  The Company has been particularly successful in focusing on opportunities in small-to-mid-sized media markets and multicultural communities, which are often overlooked and undervalued in the advertising industry.

“As someone who was raised in the Houston-area, winning a Gulf South Award for the company I co-founded with my good friend, Keith, is thrilling and a testament to what we have accomplished in disrupting the ad space,” said Walker. “We are grateful to Ernst & Young, for the recognition, and recognize the incredible talent and dedication of those working at our portfolio companies, Colossus SSP, Huddled Masses and Orange142. Keith and I also thank the entire Direct Digital Holdings team including our partners and clients who made this all possible.”

Direct Digital Holdings has continued to see robust financial performance, experiencing 131% and 87% year-over-year Revenue growth in fiscal year 2022 and the first quarter of fiscal 2023, respectively. The Company processed approximately 207 billion monthly impressions and received more than six billion bid responses in the first quarter of 2023, increases of more than 130% and 81% over the same period in 2022, respectively.

“Direct Digital Holdings’ success is rooted in the hard work and commitment we have long seen in taking advantage of advertising opportunities targeting underserved communities and markets often overlook,” added Smith. “Mark and I are enormously proud of this accomplishment and the contributions of our dedicated employees.  We also want to thank Ernst & Young and congratulate all of the other finalists and our fellow winners for their entrepreneurial accomplishments.”

The Entrepreneur Of The Year Awards program is one of the preeminent competitive awards for entrepreneurs and leaders of high-growth companies. Walker and Smith were selected by an independent judging panel made up of previous award winners, leading CEOs, investors and other regional business leaders. The candidates were evaluated based on their demonstration of building long-term value through entrepreneurial spirit, purpose, growth and impact, among other core contributions and attributes.

Entrepreneur Of The Year Award winners become lifetime members of a global, multi-industry community of entrepreneurs, with exclusive, ongoing access to the experience, insight and wisdom of program alumni and other ecosystem members in over 60 countries. Since 1986, the Entrepreneur Of The Year program has recognized more than 11,000 US executives.

As a Gulf South award winner, Walker and Smith are now eligible for consideration for the Entrepreneur Of The Year 2023 National Awards. The National Award winners including the Entrepreneur Of The Year National Overall Award winner will be announced in November at the Strategic Growth Forum®, one of the nation’s most prestigious gatherings of high-growth, market-leading companies. The Entrepreneur Of The Year National Overall Award winner will then move on to compete for the World Entrepreneur Of The Year® Award in June 2024.

About Direct Digital Holdings
Direct Digital Holdings (Nasdaq: DRCT), owner of operating companies Colossus SSP, Huddled Masses, and Orange 142, brings state-of-the-art sell- and buy-side advertising platforms together under one umbrella company. Direct Digital Holdings’ sell-side platform, Colossus SSP, offers advertisers of all sizes extensive reach within general market and multicultural media properties. The company’s subsidiaries Huddled Masses and Orange142 deliver significant ROI for middle market advertisers by providing data-optimized programmatic solutions at scale for businesses in sectors that range from energy to healthcare to travel to financial services. Direct Digital Holdings’ sell- and buy-side solutions manage approximately 153,000 clients monthly, generating over 100 billion impressions per month across display, CTV, in-app and other media channels. Direct Digital Holdings is the ninth black-owned company to go public in the U.S and was named a top minority-owned business by The Houston Business Journal.

About Entrepreneur Of The Year® 
Entrepreneur Of The Year® is the world’s most prestigious business awards program for unstoppable entrepreneurs. These visionary leaders deliver innovation, growth and prosperity that transform our world. The program engages entrepreneurs with insights and experiences that foster growth. It connects them with their peers to strengthen entrepreneurship around the world. Entrepreneur Of The Year is the first and only truly global awards program of its kind. It celebrates entrepreneurs through regional and national awards programs in more than 145 cities in over 60 countries. National Overall Award winners go on to compete for the World Entrepreneur Of The Year® title.

Contact:
ICR for Direct Digital Holdings
DDH@icrinc.com 

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SOURCE Direct Digital Holdings

Release – Direct Digital Holdings to Participate in The Roth MKM Internet Virtual Summit

Posted on by aweinsoff@channelchek.com

Research News and Market Data on DRCT

May 31, 2023 9:00am EDT

HOUSTON, May 31, 2023 /PRNewswire/ — Direct Digital Holdings, Inc. (Nasdaq: DRCT) (“Direct Digital Holdings” or the “Company”), a leading advertising and marketing technology platform operating through its companies Colossus Media, LLC (“Colossus SSP”), Huddled Masses LLC (“Huddled Masses”) and Orange142, LLC (“Orange142”), today announced that the Company will participate in The Roth MKM Internet Virtual Summit being held virtually from June 11-15, 2023.

Mark Walker, Chairman & Chief Executive Officer of Direct Digital Holdings, will be hosted in a fireside chat by Darren Aftahi, Managing Director and Senior Research Analyst of Roth MKM at 9:00 AM PT on Tuesday, June 13, 2023.

For more information, please reach out to your Roth MKM representative.

About Direct Digital Holdings
Direct Digital Holdings (Nasdaq: DRCT), owner of operating companies Colossus SSP, Huddled Masses, and Orange 142, brings state-of-the-art sell- and buy-side advertising platforms together under one umbrella company. Direct Digital Holdings’ sell-side platform, Colossus SSP, offers advertisers of all sizes extensive reach within general market and multicultural media properties. The company’s subsidiaries Huddled Masses and Orange142 deliver significant ROI for middle market advertisers by providing data-optimized programmatic solutions at scale for businesses in sectors that range from energy to healthcare to travel to financial services. Direct Digital Holdings’ sell- and buy-side solutions manage approximately 153,000 clients monthly, generating over 100 billion impressions per month across display, CTV, in-app and other media channels. Direct Digital Holdings is the ninth black-owned company to go public in the U.S and was named a top minority-owned business by The Houston Business Journal.  

Contacts:
Investors:
Brett Milotte, ICR
Brett.Milotte@icrinc.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/direct-digital-holdings-to-participate-in-the-roth-mkm-internet-virtual-summit-301837971.html

SOURCE Direct Digital Holdings

Released May 31, 2023

Release – Direct Digital Holdings to Participate in The Stifel 2023 Cross Sector Insight Conference

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Research News and Market Data on DRCT

May 23, 2023 9:00am EDT

HOUSTON, May 23, 2023 /PRNewswire/ — Direct Digital Holdings, Inc. (Nasdaq: DRCT) (“Direct Digital Holdings” or the “Company”), a leading advertising and marketing technology platform operating through its companies Colossus Media, LLC (“Colossus SSP”), Huddled Masses LLC (“Huddled Masses”) and Orange142, LLC (“Orange142”), today announced that the Company will participate in the Stifel 2023 Cross Sector Insight Conference taking place June 6-7, 2023 at The InterContinental Boston in Boston, Massachusetts.

Mark Walker, Chairman & Chief Executive Officer, Keith Smith, President, and Susan Echard, Chief Financial Officer, will be attending on behalf of the Company. Management will be presenting on Tuesday, June 6, 2023 at 10:20 AM ET and will also be available for meetings during the conference.

For more information, or to schedule a meeting with management, please reach out to your Stifel representative.

About Direct Digital Holdings

Direct Digital Holdings (Nasdaq: DRCT), owner of operating companies Colossus SSP, Huddled Masses, and Orange 142, brings state-of-the-art sell- and buy-side advertising platforms together under one umbrella company. Direct Digital Holdings’ sell-side platform, Colossus SSP, offers advertisers of all sizes extensive reach within general market and multicultural media properties. The company’s subsidiaries Huddled Masses and Orange142 deliver significant ROI for middle market advertisers by providing data-optimized programmatic solutions at scale for businesses in sectors that range from energy to healthcare to travel to financial services. Direct Digital Holdings’ sell- and buy-side solutions manage approximately 153,000 clients monthly, generating over 100 billion impressions per month across display, CTV, in-app and other media channels. Direct Digital Holdings is the ninth black-owned company to go public in the U.S and was named a top minority-owned business by The Houston Business Journal.  

Contacts:
Investors:
Brett Milotte, ICR
Brett.Milotte@icrinc.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/direct-digital-holdings-to-participate-in-the-stifel-2023-cross-sector-insight-conference-301831392.html

SOURCE Direct Digital Holdings

Release – QuoteMedia Announces 11% Revenue Growth for Q1 2023

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Research News and Market Data on QMCI

May 12, 2023 2:53 PM

PHOENIX, May 12, 2023 (GLOBE NEWSWIRE) — QuoteMedia, Inc. (OTCQB: QMCI), a leading provider of market data and financial applications, announced financial results for the quarter ended March 31, 2023.

QuoteMedia provides banks, brokerage firms, private equity firms, financial planners and sophisticated investors with a more economical, higher quality alternative source of stock market data and related research information. We compete with several larger legacy organizations and a modest community of other smaller companies.  QuoteMedia provides comprehensive market data services, including streaming data feeds, on-demand request-based data (XML/JSON), web content solutions (financial content for website integration) and applications such as Quotestream Professional desktop and mobile.

Highlights for Q1 2023 include the following:

  • Quarterly revenue increased by 11% to $4,750,048 in Q1 2023 from $4,263,796 in 2022, an increase of $486,252.
  • On an FX-neutral basis, revenue growth for Q1 2023 vs Q1 2022 was 14% (1) .
  • Quarter-over-quarter revenue increased 4% when comparing Q1 2023 to Q4 2022.
  • Adjusted EBITDA for Q1 2023 was $829,585 compared to $680,424 in Q1 2022, an improvement of $149,161 (22%) (1) .

“2022 was another great year for QuoteMedia, and as anticipated, that momentum is carrying forward into 2023,” said Robert J. Thompson, Chairman of the Board. “We expect improved revenue growth for the remainder of the year, and record profitability for fiscal 2023. These are truly exciting times for QuoteMedia, as we continue to expand our product lines, develop new partnerships, increase our market share and broaden our presence in the financial data industry. We are very pleased with our results to date; and anticipate extending QuoteMedia’s growth and profitability into the foreseeable future.”

QuoteMedia will host a conference call Monday, May 15, 2023 at 2:00 PM Eastern Time to discuss the Q1 2023 financial results and provide a business update.

Conference Call Details:

Date: May 15, 2023

Time: 2:00 PM Eastern

Dial-in number: 800-245-3047

Conference ID: QUOTEMEDIA

An audio rebroadcast of the call will be available later at: www.quotemedia.com

About QuoteMedia

QuoteMedia is a leading software developer and cloud-based syndicator of financial market information and streaming financial data solutions to media, corporations, online brokerages, and financial services companies. The Company licenses interactive stock research tools such as streaming real-time quotes, market research, news, charting, option chains, filings, corporate financials, insider reports, market indices, portfolio management systems, and data feeds. QuoteMedia provides industry leading market data solutions and financial services for companies such as the Nasdaq Stock Exchange, TMX Group (TSX Stock Exchange), Canadian Securities Exchange (CSE), London Stock Exchange Group, FIS, U.S. Bank, Bank of Montreal (BMO), Broadridge Financial Systems, JPMorgan Chase, Scotiabank, CI Financial, Canaccord Genuity Corp., Hilltop Securities,  Avantax, Stockhouse, Zacks Investment Research, General Electric, Boeing, Bombardier, Telus International, Business Wire, PR Newswire, The Goldman Sachs Group, Regal Securities, ChoiceTrade, Cetera Financial Group, Dynamic Trend, Inc., Credential Qtrade Securities, CNW Group, iA Private Wealth, Ally Invest, Inc., Suncor, Leede Jones Gable, Firstrade Securities, Charles Schwab, First Financial, Equisolve, Stock-Trak, Mergent, Cision and others. Quotestream®, QMod™ and Quotestream Connect™ are trademarks of QuoteMedia. For more information, please visit www.quotemedia.com .

Statements about QuoteMedia’s future expectations, including future revenue, earnings, and transactions, as well as all other statements in this press release other than historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. QuoteMedia intends that such forward-looking statements be subject to the safe harbors created thereby. These statements involve risks and uncertainties that are identified from time to time in the Company’s SEC reports and filings and are subject to change at any time. QuoteMedia’s actual results and other corporate developments could differ materially from that which has been anticipated in such statements.

Below are the specific forward-looking statements included in this press release:

  • We expect improved revenue growth for the remainder of the year, and record profitability for fiscal 2023.

QuoteMedia Investor Relations

Brendan Hopkins
Email: investors@quotemedia.com
Call: (407) 645-5295

Note 1 on Non-GAAP Financial Measures

We believe that Adjusted EBITDA, as a non-GAAP pro forma financial measure, provides meaningful information to investors in terms of enhancing their understanding of our operating performance and results, as it allows investors to more easily compare our financial performance on a consistent basis compared to the prior year periods. This non-GAAP financial measure also corresponds with the way we expect investment analysts to evaluate and compare our results. Any non-GAAP pro forma financial measures should be considered only as supplements to, and not as substitutes for or in isolation from, or superior to, our other measures of financial information prepared in accordance with GAAP, such as net income attributable to QuoteMedia, Inc.

We define and calculate Adjusted EBITDA as net income attributable to QuoteMedia, Inc., plus: 1) depreciation and amortization, 2) stock compensation expense, 3) interest expense, 4) foreign exchange loss (or minus a foreign exchange gain), and 5) income tax expense. We disclose Adjusted EBITDA because we believe it is a useful metric by which to compare the performance of our business from period to period. We understand that measures similar to Adjusted EBITDA are broadly used by analysts, rating agencies, investors and financial institutions in assessing our performance. Accordingly, we believe that the presentation of Adjusted EBITDA provides useful information to investors. The table below provides a reconciliation of Adjusted EBITDA to net income attributable to QuoteMedia, Inc., the most directly comparable GAAP financial measure.

QuoteMedia, Inc. Adjusted EBITDA Reconciliation to Net Income:

Three-months ended March 31,20232022
Net income$113,290$149,041
Depreciation and amortization627,987487,095
Stock-based compensation78,12559,864
Interest expense1,4521,224
Foreign exchange loss (gain)8,001(17,590)
Income tax expense730790
Adjusted EBITDA$829,585$680,424


In addition to the non-GAAP measures discussed above, we also analyze certain measures, including net revenues and operating expenses, on an FX-neutral basis to better measure the comparability of operating results between periods. Management believes that changes in foreign currency exchange rates are not indicative of the company’s operations and evaluating growth in net revenues and operating expenses on an FX-neutral basis provides an additional meaningful and comparable assessment of these measures to both management and investors. FX-neutral results are calculated by translating the current period’s local currency results with the prior period’s exchange rate. FX-neutral growth rates are calculated by comparing the current period’s FX-neutral results by the prior period’s results.

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