Direct Digital (NASDAQ:DRCT) stock is falling on Wednesday after the programmatic advertising platform company released its earnings report for the fourth quarter of 2023.
Direct Digital starts off its report with diluted earnings per share of -8 cents. That’s much worse than the 26 cents per share Wall Street was expecting. It’s also a negative switch from the 10 cents per share reported in the same year of the year prior.
Adding to that is the company’s revenue of $41 million. That’s another miss next to analysts’ revenue estimate of $65.95 million. However, it is up 33% from the $30.74 million reported in the fourth quarter of 2022.
Direct Digital chairman and CEO Mark Walker said the following in the earnings report:
“Although performance in the fourth quarter was not as strong as we initially expected due to proactive measures we are taking in the face of changing macro industry trends, we are confident our company is in a position to build on the successes of 2023, expand on emerging channel and inorganic growth opportunities and continue our strong revenue growth and market share gains in 2024.”
2024 Guidance Hits DRCT Stock
Direct Digital is expecting revenue for the full year of 2024 to range from $170 million to $190 million. That’s not looking good next to Wall Street’s revenue estimate of $242.6 million for the year.
DRCT stock is down 44.5% as of Wednesday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
