Digital Media Solutions Reports Preliminary Q1 Earnings, Issues Q2 Guidance

Digital Media Solutions Inc (NYSE: DMS) reported preliminary first-quarter FY21 revenue growth of 33.1% year-on-year to $96.8 million, beating the analyst consensus of $96.46 million. The adjusted revenue grew 33.5% Y/Y to $99.5 million.
Brand-Direct Solutions revenue rose 37.4% Y/Y to $56.2 million, Marketplace Solutions revenue rose 44.1% Y/Y to $49.3 million, primarily due to insurance sector revenue growth. Other Solutions revenue rose 60.2% Y/Y to $2 million.
For the largest vertical, insurance, the company generated organic Y/Y revenue growth of 102% and quote request growth of 111%, and anticipates continued strength within insurance throughout the year, CEO Joe Marinucci said.
Marinucci expects strong growth from the insurance business and margin expansion from the Crisp Results acquisition.
Gross margin expanded 140 basis points to 28.5%. Brand-Direct Solutions clocked a 240 basis points margin expansion at 26.9%, while Marketplace Solutions margin contracted 730 basis points to 25.7%.
Adjusted EPS of $0.09 was at par with the analyst consensus. Adjusted EBITDA rose 5.4% Y/Y to $14.1 million.
The company held $23.9 million in cash and equivalents.
Guidance: Digital Media Solutions sees a Q2 adjusted revenue outlook of $102 million -107 million and an adjusted EBITDA outlook of $15.2 million -15.7 million.
It reiterated FY21 adjusted revenue guidance of $455 million - 465 million and adjusted EBITDA guidance of $72 million -75 million.
Price action: DMS shares closed higher by 3.54% at $11.42 on Friday.

Market News and Data brought to you by Benzinga APIs

To add Benzinga News as your preferred source on Google, click here.