Third Quarter 2023 Revenue Up 129%
Year-Over-Year to $59.5
Million
Company Raises Full-Year 2023 Revenue
Guidance to $170 Million -
$190 Million
HOUSTON, Nov. 9, 2023
/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"), Huddled Masses LLC ("Huddled
Masses") and Orange142, LLC ("Orange142"), today announced
financial results for the third quarter ended September 30, 2023.
Mark D. Walker, Chairman and
Chief Executive Officer, commented, "In recent quarters, we have
made significant investments in our technology stack, advertising
platform and operational structure. We initially expected to see
the impact of these investments in 2024, however, we are pleased to
report that these benefits have arrived much earlier in 2023. Our
strong technology partnerships and our overarching business
strategy have enabled us to meet a growing number of customers'
demands and further the capabilities of our sell-side technology
platform. On both the sell-side and the buy-side, increased spend
from our buying partners has resulted in an associated increase in
our impression count and organic growth profile with a direct
positive impact on net income and adjusted EBITDA(1)."
Keith Smith, President, added,
"The growth seen in this quarter, as well as the past year, has
been fueled by a combination of our strategic investments and
partnerships, our differentiated approach to advertising solutions,
as well as a set of market dynamics which have been highly
beneficial to our position in the industry. We have capitalized on
the shift in ad spend towards digital media on both the sell- and
buy-side and will continue to grow our presence in the space
through our recent partnerships and advancements of our technology
stack. We remain committed to executing on the same growth and
investment initiatives that led us to the strong third quarter
results we are reporting today."
Third Quarter 2023 Business Highlights
- For the third quarter ended September
30, 2023, Direct Digital Holdings processed over 400 billion
monthly impressions through its sell-side advertising segment, an
increase of 220% over the same period of 2022.
- In addition, the Company's sell-side advertising platforms
received over 34 billion monthly bid responses in the third quarter
of 2023, an increase of over 210% over the same period in 2022.
Sell-side revenue per advertiser for the third quarter of 2023
increased 241% compared to the same period of 2022.
- The Company's buy-side advertising segment served approximately
228 customers in the third quarter of 2023 and buy-side revenue per
customer increased 14% compared to the same period of 2022.
Third Quarter 2023 Financial Highlights:
- Revenue was $59.5 million in the
third quarter of 2023, an increase of $33.5
million, or 129% over the $26.0
million in the same period of 2022.
- Sell-side advertising segment revenue grew to $51.6 million and contributed $32.8 million of the increase, or 174% growth
over the $18.9 million of sell-side
revenue in the same period of 2022.
- Buy-side advertising segment revenue grew to $7.9 million and contributed $0.7 million of the increase, or 10% growth over
the $7.1 million of buy-side revenue
in the same period of 2022.
- Consolidated operating income in the third quarter of 2023 was
$4.5 million compared to consolidated
operating income of $1.8 million in
the same period of 2022, an increase of 144% year-over-year.
- Net income was $3.4 million in
the third quarter of 2023, compared to net income of $0.8 million in the same period of 2022, an
increase of 313% year-over-year.
- Adjusted EBITDA(1) was $5.4
million in the third quarter of 2023, compared to
$2.4 million in the same period of
2022, an increase of 123% year-over-year.
Financial Outlook
Assuming the U.S. economy does not experience any major economic
conditions that deteriorate or otherwise significantly reduce
advertiser demand, we are increasing our previously issued estimate
as disclosed in our second quarter 2023 update:
- For fiscal year 2023, we expect revenue to be in the range of
$170 million to $190 million, or 101% year-over-year growth at
the mid-point.
"We are thrilled to announce the raising of our fiscal year 2023
revenue guidance to $180 million at
the midpoint, a 101% increase over full-year 2022 results. This
increase reflects our belief in our ability to execute on our
various growth strategies, demonstrates the strength of our
operating leverage and highlights the favorable market trends that
we expect to continue for the remainder of this year," commented
Diana Diaz, Chief Financial Officer.
Conference Call and Webcast Details
Direct Digital will host a conference call on Thursday, November 9, 2023 at 5:00 p.m. Eastern Time to discuss the Company's
third quarter 2023 financial results. The live webcast and replay
can be accessed at https://ir.directdigitalholdings.com/.
Please access the website at least fifteen minutes prior to the
call to register, download and install any necessary audio
software. For those who cannot access the webcast, a replay will be
available at https://ir.directdigitalholdings.com/ for a period of
twelve months.
Footnotes
(1) "Adjusted EBITDA" is a non-GAAP financial
measure. The section titled "Non-GAAP Financial Measures" below
describes our usage of non-GAAP financial measures and provides
reconciliations between historical GAAP and non-GAAP information
contained in this press release.
Forward Looking Statements
This press release may contain forward-looking statements within
the meaning of federal securities laws, including the Private
Securities Litigation Reform Act of 1995, Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, and which are subject
to certain risks, trends and uncertainties.
As used below, "we," "us," and "our" refer to the Company. We
use words such as "could," "would," "may," "might," "will,"
"expect," "likely," "believe," "continue," "anticipate,"
"estimate," "intend," "plan," "project" and other similar
expressions to identify forward-looking statements, but not all
forward-looking statements include these words. All statements
contained in this press release that do not relate to matters of
historical fact should be considered forward-looking
statements.
All of our forward-looking statements involve estimates and
uncertainties that could cause actual results to differ materially
from those expressed in or implied by the forward-looking
statements. Our forward-looking statements are based on assumptions
that we have made in light of our industry experience and our
perceptions of historical trends, current conditions, expected
future developments and other factors we believe are appropriate
under the circumstances. Although we believe that these
forward-looking statements are based on reasonable assumptions,
many factors could affect our actual operating and financial
performance and cause our performance to differ materially from the
performance expressed in or implied by the forward-looking
statements, including, but not limited to: our dependence on the
overall demand for advertising, which could be influenced by
economic downturns; any slow-down or unanticipated development in
the market for programmatic advertising campaigns; the effects of
health epidemics; operational and performance issues with our
platform, whether real or perceived, including a failure to respond
to technological changes or to upgrade our technology systems; any
significant inadvertent disclosure or breach of confidential and/or
personal information we hold, or of the security of our or our
customers', suppliers' or other partners' computer systems; any
unavailability or non-performance of the non-proprietary
technology, software, products and services that we use;
unfavorable publicity and negative public perception about our
industry, particularly concerns regarding data privacy and security
relating to our industry's technology and practices, and any
perceived failure to comply with laws and industry self-regulation;
restrictions on the use of third-party "cookies," mobile device IDs
or other tracking technologies, which could diminish our platform's
effectiveness; any inability to compete in our intensely
competitive market; any significant fluctuations caused by our high
customer concentration; our limited operating history, which could
result in our past results not being indicative of future operating
performance; any violation of legal and regulatory requirements or
any misconduct by our employees, subcontractors, agents or business
partners; any strain on our resources, diversion of our
management's attention or impact on our ability to attract and
retain qualified board members as a result of being a public
company; our dependence, as a holding company, on receiving
distributions from Direct Digital Holdings, LLC to pay our taxes,
expenses and dividends; and other factors and assumptions discussed
in the "Risk Factors," "Management's Discussion and Analysis of
Financial Conditions and Results of Operations" and other sections
of our filings with the Securities and Exchange Commission that we
make from time to time. Should one or more of these risks or
uncertainties materialize or should any of these assumptions prove
to be incorrect, our actual operating and financial performance may
vary in material respects from the performance projected in these
forward-looking statements. Further, any forward-looking statement
speaks only as of the date on which it is made, and except as
required by law, we undertake no obligation to update any
forward-looking statement contained in this press release to
reflect events or circumstances after the date on which it is made
or to reflect the occurrence of anticipated or unanticipated events
or circumstances, and we claim the protection of the safe harbor
for forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995.
About Direct Digital Holdings
Direct Digital Holdings (Nasdaq: DRCT), owner of operating
companies Colossus SSP, Huddled Masses, and Orange 142, brings
state-of-the-art sell- and buy-side advertising platforms together
under one umbrella company. Direct Digital Holdings' sell-side
platform, Colossus SSP, offers advertisers of all sizes extensive
reach within general market and multicultural media properties. The
Company's subsidiaries Huddled Masses and Orange142 deliver
significant ROI for middle market advertisers by providing
data-optimized programmatic solutions at scale for businesses in
sectors that range from energy to healthcare to travel to financial
services. Direct Digital Holdings' sell- and buy-side solutions
manage on average over 125,000 clients monthly, generating over 300
billion impressions per month across display, CTV, in-app and other
media channels.
CONSOLIDATED BALANCE
SHEETS
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2023
|
|
December 31, 2022
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
5,481,949
|
|
$
|
4,047,453
|
|
Accounts receivable,
net
|
|
|
54,637,634
|
|
|
26,354,114
|
|
Prepaid expenses and
other current assets
|
|
|
1,426,925
|
|
|
883,322
|
|
Total current
assets
|
|
|
61,546,508
|
|
|
31,284,889
|
|
|
|
|
|
|
|
|
|
Property, equipment and
software, net of accumulated depreciation and amortization of
$219,386
and $34,218, respectively
|
|
|
625,028
|
|
|
673,218
|
|
Goodwill
|
|
|
6,519,636
|
|
|
6,519,636
|
|
Intangible assets,
net
|
|
|
12,172,396
|
|
|
13,637,759
|
|
Deferred tax asset,
net
|
|
|
5,082,424
|
|
|
5,164,776
|
|
Operating lease
right-of-use assets
|
|
|
674,846
|
|
|
798,774
|
|
Other long-term
assets
|
|
|
127,492
|
|
|
46,987
|
|
Total
assets
|
|
$
|
86,748,330
|
|
$
|
58,126,039
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
45,021,034
|
|
$
|
17,695,404
|
|
Accrued
liabilities
|
|
|
4,071,128
|
|
|
4,777,764
|
|
Liability related to
tax receivable agreement, current portion
|
|
|
41,141
|
|
|
182,571
|
|
Notes payable, current
portion
|
|
|
1,146,250
|
|
|
655,000
|
|
Deferred
revenues
|
|
|
1,044,069
|
|
|
546,710
|
|
Operating lease
liabilities, current portion
|
|
|
49,977
|
|
|
91,989
|
|
Income taxes
payable
|
|
|
113,355
|
|
|
174,438
|
|
Related party
payables
|
|
|
1,428,093
|
|
|
1,448,333
|
|
Total current
liabilities
|
|
|
52,915,047
|
|
|
25,572,209
|
|
|
|
|
|
|
|
|
|
Notes payable, net of
short-term portion and deferred financing cost of $1,722,716
and
$2,115,161, respectively
|
|
|
22,323,534
|
|
|
22,913,589
|
|
Economic Injury
Disaster Loan
|
|
|
150,000
|
|
|
150,000
|
|
Liability related to
tax receivable agreement, net of current portion
|
|
|
4,245,234
|
|
|
4,149,619
|
|
Operating lease
liabilities, net of current portion
|
|
|
717,632
|
|
|
745,340
|
|
Total
liabilities
|
|
|
80,351,447
|
|
|
53,530,757
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES (Note 9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
Class A common stock,
$0.001 par value per share, 160,000,000 shares authorized,
2,991,792 and
2,900,000 shares issued and outstanding, respectively
|
|
|
2,992
|
|
|
2,900
|
|
Class B common stock,
$0.001 par value per share, 20,000,000 shares authorized,
11,278,000
shares issued and outstanding
|
|
|
11,278
|
|
|
11,278
|
|
Additional paid-in
capital
|
|
|
8,782,092
|
|
|
8,224,365
|
|
Accumulated
deficit
|
|
|
(2,399,479)
|
|
|
(3,643,261)
|
|
Total stockholders'
equity
|
|
|
6,396,883
|
|
|
4,595,282
|
|
Total liabilities and
stockholders' equity
|
|
$
|
86,748,330
|
|
$
|
58,126,039
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
For the Nine Months Ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Buy-side
advertising
|
|
$
|
7,850,058
|
|
$
|
7,130,736
|
|
$
|
27,092,816
|
|
$
|
22,283,044
|
|
Sell-side
advertising
|
|
|
51,622,066
|
|
|
18,854,639
|
|
|
89,006,018
|
|
|
36,333,976
|
|
Total
revenues
|
|
|
59,472,124
|
|
|
25,985,375
|
|
|
116,098,834
|
|
|
58,617,020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Buy-side
advertising
|
|
|
3,113,491
|
|
|
2,471,170
|
|
|
10,650,541
|
|
|
7,694,987
|
|
Sell-side
advertising
|
|
|
44,605,815
|
|
|
16,053,461
|
|
|
77,189,787
|
|
|
30,344,670
|
|
Total cost of
revenues
|
|
|
47,719,306
|
|
|
18,524,631
|
|
|
87,840,328
|
|
|
38,039,657
|
|
Gross profit
|
|
|
11,752,818
|
|
|
7,460,744
|
|
|
28,258,506
|
|
|
20,577,363
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation, taxes and
benefits
|
|
|
4,747,081
|
|
|
3,845,918
|
|
|
12,934,406
|
|
|
9,895,646
|
|
General and
administrative
|
|
|
2,512,330
|
|
|
1,770,002
|
|
|
8,717,584
|
|
|
5,187,875
|
|
Total operating
expenses
|
|
|
7,259,411
|
|
|
5,615,920
|
|
|
21,651,990
|
|
|
15,083,521
|
|
Income from
operations
|
|
|
4,493,407
|
|
|
1,844,824
|
|
|
6,606,516
|
|
|
5,493,842
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
|
|
|
83,331
|
|
|
—
|
|
|
175,472
|
|
|
47,982
|
|
Forgiveness of Paycheck
Protection Program loan
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
287,143
|
|
Loss on redemption of
non-participating preferred units
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(590,689)
|
|
Contingent loss on
early termination of line of credit
|
|
|
—
|
|
|
—
|
|
|
(299,770)
|
|
|
—
|
|
Interest
expense
|
|
|
(1,059,890)
|
|
|
(905,605)
|
|
|
(3,104,684)
|
|
|
(2,269,643)
|
|
Total other
expense
|
|
|
(976,559)
|
|
|
(905,605)
|
|
|
(3,228,982)
|
|
|
(2,525,207)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before
taxes
|
|
|
3,516,848
|
|
|
939,219
|
|
|
3,377,534
|
|
|
2,968,635
|
|
Tax expense
|
|
|
165,994
|
|
|
128,436
|
|
|
165,658
|
|
|
215,112
|
|
Net income
|
|
$
|
3,350,854
|
|
$
|
810,783
|
|
$
|
3,211,876
|
|
$
|
2,753,523
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.23
|
|
$
|
0.06
|
|
$
|
0.23
|
|
$
|
0.23
|
|
Diluted
|
|
$
|
0.23
|
|
$
|
0.06
|
|
$
|
0.22
|
|
$
|
0.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number
of shares of common stock outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
14,268,168
|
|
|
14,178,000
|
|
|
14,216,211
|
|
|
11,846,601
|
|
Diluted
|
|
|
14,827,165
|
|
|
14,545,241
|
|
|
14,817,770
|
|
|
11,996,969
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months
Ended September 30,
|
|
|
2023
|
|
2022
|
Cash Flows Provided
By Operating Activities:
|
|
|
|
|
|
|
Net income
|
|
$
|
3,211,876
|
|
$
|
2,753,523
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
Amortization of
deferred financing costs
|
|
|
434,847
|
|
|
463,008
|
Amortization of
intangible assets
|
|
|
1,465,363
|
|
|
1,465,364
|
Amortization of
right-of-use assets
|
|
|
123,928
|
|
|
94,974
|
Amortization of
capitalized software
|
|
|
159,057
|
|
|
—
|
Depreciation of
property and equipment
|
|
|
26,112
|
|
|
—
|
Stock-based
compensation
|
|
|
545,504
|
|
|
85,437
|
Forgiveness of
Paycheck Protection Program loan
|
|
|
—
|
|
|
(287,143)
|
Deferred income
taxes
|
|
|
82,352
|
|
|
(40,591)
|
Payment on tax
receivable agreement
|
|
|
(45,815)
|
|
|
—
|
Loss on redemption of
non-participating preferred units
|
|
|
—
|
|
|
590,689
|
Contingent loss on
early termination of line of credit
|
|
|
299,770
|
|
|
—
|
Bad debt
expense
|
|
|
97,740
|
|
|
2,717
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(28,381,260)
|
|
|
(13,520,067)
|
Prepaid expenses and
other assets
|
|
|
(524,098)
|
|
|
482,190
|
Accounts
payable
|
|
|
27,325,629
|
|
|
10,008,327
|
Accrued
liabilities
|
|
|
(513,138)
|
|
|
1,555,037
|
Income taxes
payable
|
|
|
(61,083)
|
|
|
94,440
|
Deferred
revenues
|
|
|
497,359
|
|
|
(201,907)
|
Operating lease
liability
|
|
|
(69,720)
|
|
|
(75,396)
|
Related party
payable
|
|
|
—
|
|
|
(70,801)
|
Net cash provided by
operating activities
|
|
|
4,674,423
|
|
|
3,399,801
|
|
|
|
|
|
|
|
Cash Flows Used In
Investing Activities:
|
|
|
|
|
|
|
Cash paid for
capitalized software and property and equipment
|
|
|
(136,978)
|
|
|
—
|
Net cash used in
investing activities
|
|
|
(136,978)
|
|
|
—
|
|
|
|
|
|
|
|
Cash Flows Used In
Financing Activities:
|
|
|
|
|
|
|
Proceeds from note
payable
|
|
|
—
|
|
|
4,260,000
|
Payments on term
loan
|
|
|
(491,250)
|
|
|
(412,500)
|
Payments of litigation
settlement
|
|
|
(193,500)
|
|
|
—
|
Payments on lines of
credit
|
|
|
—
|
|
|
(400,000)
|
Payment of deferred
financing costs
|
|
|
(442,181)
|
|
|
(525,295)
|
Proceeds from Issuance
of Class A common stock, net of transaction costs
|
|
|
—
|
|
|
11,167,043
|
Redemption of common
units
|
|
|
—
|
|
|
(7,200,000)
|
Redemption of
non-participating preferred units
|
|
|
—
|
|
|
(7,046,251)
|
Proceeds from options
exercised
|
|
|
215
|
|
|
—
|
Proceeds from warrants
exercised
|
|
|
12,100
|
|
|
—
|
Distributions to
members
|
|
|
(1,988,333)
|
|
|
(916,433)
|
Net cash used in
financing activities
|
|
|
(3,102,949)
|
|
|
(1,073,436)
|
|
|
|
|
|
|
|
Net increase in cash
and cash equivalents
|
|
|
1,434,496
|
|
|
2,326,365
|
Cash and cash
equivalents, beginning of the period
|
|
|
4,047,453
|
|
|
4,684,431
|
Cash and cash
equivalents, end of the period
|
|
$
|
5,481,949
|
|
$
|
7,010,796
|
|
|
|
|
|
|
|
Supplemental
Disclosure of Cash Flow Information:
|
|
|
|
|
|
|
Cash paid for
taxes
|
|
$
|
348,862
|
|
$
|
133,401
|
Cash paid for
interest
|
|
$
|
2,667,283
|
|
$
|
1,744,365
|
|
|
|
|
|
|
|
Non-cash Financing
Activities:
|
|
|
|
|
|
|
Transaction costs
related to issuances of Class A shares included in accrued
liabilities
|
|
$
|
—
|
|
$
|
1,000,000
|
Outside basis
difference in partnership
|
|
$
|
—
|
|
$
|
3,234,000
|
Tax receivable
agreement payable to Direct Digital Management, LLC
|
|
$
|
—
|
|
$
|
278,900
|
Tax benefit on tax
receivable agreement
|
|
$
|
—
|
|
$
|
485,100
|
Issuance related to
vesting of restricted stock units, net of tax
withholdings
|
|
$
|
90
|
|
$
|
—
|
NON-GAAP FINANCIAL MEASURES
In addition to our results determined in accordance with U.S.
generally accepted accounting principles ("GAAP"), including, in
particular operating income, net cash provided by operating
activities, and net income, we believe that earnings before
interest, taxes, depreciation and amortization ("EBITDA"), as
adjusted for stock compensation expense, loss on early termination
of line of credit, and loss on early extinguishment of debt, and
loss on early redemption of non-participating preferred units
("Adjusted EBITDA"), a non-GAAP financial measure, is useful in
evaluating our operating performance. The most directly comparable
GAAP measure to Adjusted EBITDA is net income (loss).
In addition to operating income and net income, we use Adjusted
EBITDA as a measure of operational efficiency. We believe that this
non-GAAP financial measure is useful to investors for
period-to-period comparisons of our business and in understanding
and evaluating our operating results for the following reasons:
- Adjusted EBITDA is widely used by investors and securities
analysts to measure a company's operating performance without
regard to items such as depreciation and amortization, interest
expense, provision for income taxes, and certain one-time items
such as acquisition transaction costs and gains from settlements or
loan forgiveness that can vary substantially from company to
company depending upon their financing, capital structures and the
method by which assets were acquired;
- Our management uses Adjusted EBITDA in conjunction with GAAP
financial measures for planning purposes, including the preparation
of our annual operating budget, as a measure of operating
performance and the effectiveness of our business strategies and in
communications with our board of directors concerning our financial
performance; and
- Adjusted EBITDA provides consistency and comparability with our
past financial performance, facilitates period-to-period
comparisons of operations, and also facilitates comparisons with
other peer companies, many of which use similar non-GAAP financial
measures to supplement their GAAP results.
Our use of this non-GAAP financial measure has limitations as an
analytical tool, and you should not consider it in isolation or as
a substitute for analysis of our financial results as reported
under GAAP. The following table presents a reconciliation of
Adjusted EBITDA to net income (loss) for each of the periods
presented:
NON-GAAP FINANCIAL
METRICS
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended September 30,
|
|
For the Nine Months
Ended September 30,
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Net income
|
|
$
|
3,350,854
|
|
$
|
810,783
|
|
$
|
3,211,876
|
|
$
|
2,753,523
|
|
Add back
(deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
1,059,890
|
|
|
905,605
|
|
|
3,104,684
|
|
|
2,269,643
|
|
Amortization of
intangible
assets
|
|
|
488,455
|
|
|
488,455
|
|
|
1,465,364
|
|
|
1,465,364
|
|
Stock-based
compensation
|
|
|
241,491
|
|
|
70,030
|
|
|
545,504
|
|
|
85,438
|
|
Depreciation and
amortization
of capitalized software,
property and equipment
|
|
|
63,689
|
|
|
—
|
|
|
185,169
|
|
|
—
|
|
Contingent loss on
early
termination of line of credit
|
|
|
—
|
|
|
—
|
|
|
299,770
|
|
|
—
|
|
Tax expense
|
|
|
165,994
|
|
|
128,436
|
|
|
165,658
|
|
|
215,112
|
|
Forgiveness of PPP
loan
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(287,163)
|
|
Loss on early
redemption of
non-participating preferred
units
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
590,689
|
|
Adjusted
EBITDA
|
|
$
|
5,370,373
|
|
$
|
2,403,309
|
|
$
|
8,978,025
|
|
$
|
7,092,606
|
|
Contacts:
Investors:
Brett
Milotte, ICR
Brett.Milotte@icrinc.com
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SOURCE Direct Digital Holdings