{"id":847598,"date":"2025-05-06T16:24:20","date_gmt":"2025-05-06T20:24:20","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/direct-digital-holdings-reports-first-quarter-2025-financial-results\/"},"modified":"2025-05-06T16:24:20","modified_gmt":"2025-05-06T20:24:20","slug":"direct-digital-holdings-reports-first-quarter-2025-financial-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/direct-digital-holdings-reports-first-quarter-2025-financial-results\/","title":{"rendered":"Direct Digital Holdings Reports First Quarter 2025 Financial Results"},"content":{"rendered":"
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PR Newswire<\/p>\n<\/p><\/div>\n

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\n Enhanced Buy-Side Revenue Demonstrating Business Segment Growth as Orange 142 Scales<\/i>\n <\/p>\n

\n 19% Reduction in Operating Expenses Compared with 1Q24 Driven by Strategic Cost Saving Initiatives<\/i>\n <\/p>\n

\n Entered New Strategic Partnerships to Diversify and Expand Addressable Market<\/i>\n <\/p>\n

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\n HOUSTON<\/span>
\n <\/span>, May 6, 2025<\/span><\/span> \/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”) and Orange 142, LLC (“Orange 142”), today announced financial results for the first quarter ended March 31, 2025<\/span>.<\/p>\n

\n Mark D. Walker<\/span>, Chairman and Chief Executive Officer, commented, “As we begin to move through 2025, we are focused on continuing to scale our buy-side solution while simultaneously rebuilding our sell-side business. During the first quarter, which is historically our weakest quarter, we recognized consolidated revenue of $8.2 million<\/span>, supported primarily by buy-side revenue of $6.1 million<\/span> which was up 6% compared to the prior year. Sequentially, first quarter sell-side revenue of $2.0 million<\/span> is relatively comparable to fourth quarter 2024 sell-side revenue of $2.7 million<\/span>, an encouraging trend given that (1) fourth quarter is typically the strongest quarter for the sell-side business based on seasonality and (2) our 2024 fourth quarter included $0.7 million<\/span> of political spend. In the first quarter of 2025, we saw the continued impact of the disruption of our sell-side business in 2024, however, we are pleased by the ongoing commitment of our agency, brand and publisher partners to resume or increase activity with the Company once direct connections are fully integrated in the second half of 2025, and we are working diligently to restore this segment to previous levels.<\/p>\n

“Our focus in 2025 is on driving growth and value for our shareholders,” Mr. Walker continued. “We’ve launched several initiatives to drive our progress, including revenue optimization efforts to diversify our revenue base and cost saving initiatives to drive reductions in operating expenses and enhance operational efficiencies. In the first quarter of 2025, we reduced operating expenses by nearly $1.5 million<\/span>, or approximately 19% when compared to the first quarter of 2024. We continue to evaluate the optimal personnel and cost structure for our business.<\/p>\n

“At the business unit level, the unification of our two buy side divisions into Orange 142 has allowed us to better service the small to mid-sized partners who represent a significant growth opportunity for our business. Moreover, our Colossus Connections, launched in the third quarter of 2024 to accelerate direct integration efforts with leading demand-side platforms, is progressing well, and as previously reported, we signed up two of the leading marketplace partners and we recently added two additional mid-tier partners who are near completion with integration. We expect to see the impact of these new partners on our revenues in the second half of 2025 once integration has been completed,” Mr. Walker stated.<\/p>\n

“With our current visibility, we maintain our current revenue guidance of $90 million<\/span> to $110 million<\/span> for the full fiscal year of 2025 supported by growth across both our buy-side and sell-side segments. There is still a great deal of work to be done in a challenging and uncertain time, but we believe that we are well positioned with a revitalized model, prudent cost management strategies, and strong demand for our products and services to drive growth and value as we navigate the business back to profitability,” Mr. Walker concluded.<\/p>\n

\n Keith Smith<\/span>, President, commented, “We remain focused on strategically recalibrating and enhancing our business model to capitalize on new opportunities and meet the demands of our diverse partners. We faced significant challenges in 2024, and we are now emerging as a stronger, more nimble business intent on continuing to scale and expand our offerings. From a liquidity perspective, we continue to explore strategic opportunities to support key growth initiatives and drive long term value for our shareholders.”<\/p>\n

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\n First Quarter 2025 Highlights<\/u>
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