Direct Digital Holdings Reports Fourth Quarter & Full-Year 2022 Financial Results

In the news release, Direct Digital Holdings Reports Fourth Quarter & Full-Year 2022 Financial Results, issued 23-Mar-2023 by Direct Digital Holdings over PR Newswire, we are advised by the company that for the year ended December 31, 2022, Net income per common unit for both Basic and Diluted shares should be $0.23, not $0.17 and Weighted-average common units outstanding for both Basic and Diluted shares should be 12,637,551, not 16,896,360 as originally issued. The corresponding table titled Condensed Consolidated Statements of Operations has been updated to reflect the correct values. The complete, corrected release follows: 

Full-Year 2022 Revenue Up 131% Year-Over-Year to $88.0 Million

Fourth Quarter 2022 Revenue Up 128% to $29.4 Million

HOUSTON, March 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 financial results for the fourth quarter and fiscal year ended December 31, 2022.

Mark Walker, Chairman and Chief Executive Officer, commented, “We are pleased to report that 2022, our first year as a public company, saw robust financial performance, significant operational expansion and continued gains in market share for Direct Digital Holdings. Both our quarterly and full-year results capitalized on brands and businesses moving dollars away from less efficient traditional advertising outlets towards digital media. We are expecting strong double-digit percentage revenue growth in FY 2023 across both our sell- and buy-side business segments as we further drive customer adoption of our digital advertising solutions.”

Keith Smith, President, added, “Our fourth quarter and full-year 2022 performance, particularly during a difficult macroeconomic environment, is a testament to our market-leading approach working with middle market and multicultural audiences. Looking

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Q4 results show advertisers are pulling back spend—but there are exceptions

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We all know the drill: When the market gets tough, marketing is often first on the chopping block.

Based on quarterly results from platforms and media companies, one could conclude that a number of advertisers are, in fact, pulling back spend:

  • Alphabet missed revenue expectations, with Google’s ad revenue falling nearly 4% and YouTube’s down 8% year over year.
  • Comcast reported a 5.6% decline in advertising revenue (excluding the World Cup).
  • Meta saw a third straight quarter of revenue decline, with its average price per ad falling 22% despite impressions being up 23% year over year.
  • Snap also missed revenue estimates for the third straight quarter, with CEO Evan Spiegel saying on its earnings call that “advertising demand hasn’t really improved, but it hasn’t gotten significantly worse.”

Some companies, like Match Group, told investors that they reduced their marketing spend in the last quarter. Others, like SiriusXM, said they’ve started making marketing cuts and plan to continue doing so in the coming months.

But then…there are companies like McDonald’s, which attributed revenue growth to its marketing investment (in addition to “strategic menu price increases”). On its earnings call, CEO Chris Kempczinski said McDonald’s is “in the strongest position it’s been in years,” due in part to its “best-in-class marketing engine.” The fast-food giant highlighted last year’s Cactus Plant Flea Market and McRib campaigns as particularly successful.

And while some platforms are seeing slowdowns, podcast streamers appear to be less affected. Despite missing estimates, Spotify reported a 14% YoY growth in quarterly ad-supported revenue and a “mid-30% range” YoY growth in podcast revenue.

Agency holding group Publicis also reported

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