Direct Digital Holdings (NASDAQ:DRCT) experienced a sharp decline in pre-market trading following the company’s unexpected loss in the fourth quarter. The advertising and marketing technology platform reported a loss of $0.08 per diluted share in the fourth quarter, contrasting with earnings of $0.10 per share during the same period the previous year. Analysts had forecast earnings of $0.26 per share.
The company posted Q4 revenues of $41 million, up by 33% year-over-year but fell short of consensus estimates of $42.5 million.
Looking forward, in FY24, DRCT anticipates revenues ranging from $170 million to $190 million, indicating a 15% growth year-over-year. However, this outlook is contingent upon the U.S. and global economy not experiencing any deteriorating economic conditions that would adversely affect advertiser demand.
What is the Target Price for DRCT?
Only two analysts have covered DRCT stock over the past three months and remain cautiously optimistic with a Moderate Buy consensus rating. The average DRCT price target of $28.75 implies an upside potential of 8.5% at current levels. Year-to-date, DRCT stock has skyrocketed by more than 75%.
