Direct Digital (DRCT) Stock: Why It Surged Over 30% Today

By Amit Chowdhry ● Aug 11, 2022
  • The stock price of Direct Digital (DRCT) surged over 30% during intraday trading today. This is why.

The stock price of Direct Digital (DRCT) surged over 30% during intraday trading today. Investors are responding positively to Direct Digital reporting a Q2 EPS of $0.18, which is $0.12 higher than analyst estimates of $0.06. And the revenue for the quarter was $21.3 million compared to the consensus estimate of $14.63 million.

Financial Outlook:

Direct Digital’s guidance is assuming that the U.S. economy continues to recover, and there are no major COVID-19-related setbacks that may cause economic conditions to deteriorate or otherwise significantly reduce advertiser demand. And Direct Digital plans to offer annual guidance and update it throughout the year. Accordingly, the Company estimates the following:

For fiscal year 2022, Direct Digital is raising expectations for guidance by about 40% to increase from a range of $48 million-$52 million to $70 million-$75 million, or up 113% year-over-year growth at the mid-point, while targeting an Adjusted EBITDA Margin in the double digits.