Friday, August 12, 2022

Direct Digital Holdings (DRCT)
A “Colossal” Quarter

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Patrick McCann, Research Associate, Noble Capital Markets, Inc.

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

Q2 exceeded even our expectations. The company reported Q2 revenue of $21.3 million, 33% above our forecast of $16 million. Adj. EBITDA of $3.6 million topped our estimate of $2.6 million by an impressive 37%. We believe that our estimates were the highest on the Street.

Sell-side growth was “Colossal”. The strong quarter was fueled by better-than-expected growth from Colossus SSP, which constitutes the company’s Sell-side segment. Segment revenue of $11.9 million exceeded our forecast by nearly 76%, marking a 477% increase from the prior year period’s $2.1 million.

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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.