By Chris Wack
Direct Digital Holdings shares continued rising Monday, fed by late Thursday’s third-quarter earnings, which handily beat analysts’ expectations.
Shares were recently 28% higher at $5.14.
The stock closed Friday’s session 55% higher as a result, and is now up 45% in the past 12 months.
On Friday, Benchmark raised its price target for Direct Digital stock to $15 from $12 a share, while maintaining its Buy rating.
The company reported quarterly earnings of $3.4 million, or 23 cents, compared with $811,000, or 6 cents a share, in the same period last year. Analysts polled by FactSet were looking for earnings of $800,000, or 5 cents a share.
Revenue for the quarter came in at $59.5 million, compared with last year’s $26 million and the $34.5 million analysts were expecting.
Direct Digital said it is seeing early benefits from investments it has made in its technology stack, advertising platform and operational structure. The company had expected to see the impact of those investments in 2024.
The company also raised its revenue guidance for fiscal 2023 to $170 million to $190 million, from its previous guidance of $125 million to $130 million. Analysts are looking for fiscal 2023 revenue of $163 million.
Write to Chris Wack at [email protected]
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