These Analysts Slash Their Forecasts On Direct Digital Holdings After Weak Results

Direct Digital Holdings, Inc. DRCT reported worse-than-expected fourth-quarter financial results on Tuesday.

Direct Digital Holdings reported quarterly losses of 8 cents per share which missed the analyst consensus estimate of earnings of 26 cents. The company reported quarterly sales of $41.01 million which missed the analyst consensus estimate of $65.95 million by 37.81% and represented a 33.4% increase over sales of $30.74 million from the same period last year, according to data from Benzinga Pro.

“2023 was another transformational year for Direct Digital Holdings, achieving remarkable year-over-year revenue growth of 76% as well as dramatic operational expansion, and impressive results for our shareholders,” commented Mark D. Walker, CEO of Direct Digital.

The company expects fiscal year 2024 revenue to be in the range of $170 million to $190 million, representing 15% year-over-year growth at the mid-point.

“We are pleased to announce our fiscal year 2024 revenue guidance of $170 million to $190 million. This range demonstrates our belief that we can continue our growth and operational optimization strategies to deliver strong performance for our shareholders this year,” Diana Diaz, CFO, said.

Direct Digital shares dipped 36.3% to trade at $16.82 on Wednesday.

These analysts made changes to their price targets on Direct Digital following earnings announcement.

• Benchmark cut the price target on Direct Digital from $30 to $23. Benchmark analyst Daniel Kurnos maintained a Buy rating.
• Roth MKM slashed the price target on Direct Digital from $27.5 to $19. Roth MKM analyst Darren Aftahi maintained a Buy rating.
• Noble Capital Markets analyst Michael Kupinski downgraded Direct Digital Holdings from Outperform to Market Perform.

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