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HOUSTON—Keith W. Smith, President and Director of Direct Digital Holdings, Inc. (NASDAQ:DRCT), sold 313 shares of the company's Class A Common Stock on November 15, according to a recent SEC filing. The shares were sold at a weighted average price of $1.80, totaling approximately $563. Following this transaction, Smith holds 76,978 shares directly, with an additional 130,722 shares held indirectly through SKW Financial LLC.
In other recent news, Direct Digital Holdings reported a challenging third quarter in 2024, with a significant 85% decline in year-over-year revenue from $59.5 million to $9.1 million. This drop was largely attributed to a critical blog post by Adalytics Research impacting their supply-side platform, Colossus SSP, leading to a major customer pausing their partnership. Despite these setbacks, the company has outlined a recovery strategy, which includes diversifying revenue streams and enhancing audience curation capabilities.
Direct Digital Holdings has also secured a $20 million equity reserve facility with New Circle Principal Investments to aid in its recovery efforts. The company provided a revised revenue guidance for fiscal years 2024 and 2025, projecting revenues between $60 million to $70 million for FY 2024 and $90 million to $110 million for FY 2025. The firm's transition to BDO as their auditor has received positive feedback from major clients, indicating a potential rebuilding of trust in the marketplace.
These developments represent the company's recent endeavors to navigate through the current challenges and lay the groundwork for improved financial performance in the coming years.
InvestingPro Insights
As Direct Digital Holdings, Inc. (NASDAQ:DRCT) faces recent insider selling, InvestingPro data reveals a challenging financial landscape for the company. The stock's market capitalization stands at a modest $4.98 million, reflecting recent market pressures. DRCT's share price has experienced significant declines, with a staggering 91.2% year-to-date price total return and a 79.56% drop over the past year.
These figures align with two critical InvestingPro Tips: the stock has taken a big hit over the last week and has fared poorly over the last month. This downward trend extends to longer time frames, with the stock price falling significantly over the last three and six months.
Financial metrics paint a concerning picture, with revenue growth at -35.84% for the last twelve months as of Q3 2024, and an operating income margin of -18.38% for the same period. These figures support another InvestingPro Tip indicating that analysts anticipate a sales decline in the current year.
For investors seeking a more comprehensive analysis, InvestingPro offers 16 additional tips for DRCT, providing deeper insights into the company's financial health and market position.
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