Direct Digital Holdings (DRCT) reported a quarterly loss of 8 cents per share, falling short of analysts' expectations of 26 cents. The company's quarterly sales reached $41.01 million, missing the consensus estimate of $65.95 million by a significant margin of 37.81%. However, sales still showed a 33.4% increase compared to the same period last year.
Despite the disappointing fourth-quarter performance, CEO Mark D. Walker expressed optimism about the company's future. He highlighted the company's 76% year-over-year revenue growth in 2023 and its plans to capitalize on emerging growth opportunities in 2024.
The company projects fiscal year 2024 revenue to range between $170 million and $190 million, representing a 15% year-over-year growth at the midpoint. CFO Diana Diaz emphasized the company's confidence in its growth and operational optimization strategies.
Following the financial results announcement, DRCT shares experienced a significant decline of 33.04% in after-hours trading, dropping to $17.75 at the time of publication.