At Direct Digital Holdings, we prioritize personal relationships by humanizing technology, ensuring each client receives dedicated support and tailored digital marketing solutions regardless of company size. This empowers everyone to thrive by generating billions of monthly impressions across display, CTV, in-app, and emerging media channels through advanced targeting, comprehensive data insights, and cross-platform activation. DDH is "Digital advertising built for everyone." New resource provides practical ...

Financial Data and Key Metrics Changes - For the full year 2024, the company delivered revenue in line with significantly revised guidance, despite a challenging year [8] - Fourth quarter revenue was $9.1 million, a decrease of 31.9% from $41 million in the same period of 2023 [21] - Gross margin increased from 23% in the prior year to 32% in Q4 2024 due to a higher mix of buy-side revenue [16] - Operating expenses for Q4 2024 were $7.7 million, down from $18.1 million in the same period of 2023 [24] - Adjusted EBITDA for Q4 2024 was a loss of $3.4 million compared to a loss of $6.6 million in the same period of 2023 [25] Business Line Data and Key Metrics Changes - Sell-side revenue fell to $2.7 million in Q4 2024 from $33.4 million in Q4 2023, primarily due to a major customer's suspension following a defamatory article [21][22] - Buy-side revenue decreased to $6.4 million in Q4 2024 from $7.6 million in the same period of 2023, impacted by reduced spending from certain customers [23] Market Data and Key Metrics Changes - The company is seeing sequential improvement in the first quarter of 2025 compared to November and December 2024, indicating a recovery trend [20] - Political advertising represented 50% to 60% of spending in Q4, significantly higher than the historical range of 10% to 15% [34] Company Strategy and Development Direction - The company is focused on diversifying revenue sources and optimizing its business model, including the launch of Colossus Connections to enhance direct integration with demand-side platforms [12][13] - The strategy includes targeting small- and mid-size clients who are shifting advertising budgets to digital, emphasizing a high-touch client relationship [15] - The company is pursuing opportunities in the middle market, which is seen as a growth area due to its slower transition to digital [42][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to scale both buy-side and sell-side businesses, reiterating revenue guidance of $90 million to $110 million for fiscal 2025 [19][28] - The second half of 2025 is expected to deliver strong gains as new direct sell-side partners come online [19][28] - Management noted that the company is well-positioned to capture market share and strengthen its offerings in the advertising technology space [20] Other Important Information - The company ended the year with cash and cash equivalents of $1.4 million, down from $5.1 million at the end of 2023 [26] - The company is actively pursuing funding and equity financing pathways to restore NASDAQ compliance and support growth initiatives [26] Q&A Session Summary Question: Impact of post-election malaise on Q4 and client spending recovery - Management noted that political spending was significantly higher in Q4, but December was softer than anticipated, impacting overall performance [34][35] Question: Aggressiveness on direct connections and curation strategy - The company sees opportunities in the middle market and plans to focus on expanding relationships with holdco-partners while also exploring curation opportunities [42][47] Question: Cost savings and annualized basis expectations - Management indicated potential annualized cost savings of $1.5 million to $2 million for 2025, reflecting ongoing operational optimizations [71] Question: Anticipation of positive cash flow - Management expects to return to a more normal cadence of cash flow in the third and fourth quarters of 2025 [73]

Financial Data and Key Metrics Changes - For the full year 2024, the company delivered revenue in line with significantly revised guidance, despite a challenging year [8] - Fourth quarter revenue was $9.1 million, a decrease of 31.9% from $41 million in the same period of 2023 [21] - Gross margin increased from 23% in the prior year to 32% in Q4 2024 due to a higher mix of buy-side revenue [16] - Operating expenses for Q4 2024 were $7.7 million, down from $18.1 million in the same period of 2023 [24] - Adjusted EBITDA for Q4 2024 was a loss of $3.4 million compared to a loss of $6.6 million in the same period of 2023 [25] Business Line Data and Key Metrics Changes - Sell-side revenue fell to $2.7 million in Q4 2024 from $33.4 million in Q4 2023, primarily due to a major customer's suspension following a defamatory article [21][22] - Buy-side revenue decreased to $6.4 million in Q4 2024 from $7.6 million in Q4 2023, impacted by reduced spending from certain customers [23] Market Data and Key Metrics Changes - The company is seeing sequential improvement in the first quarter of 2025 compared to November and December 2024, indicating a recovery trend [20] - Political advertising represented 50% to 60% of spending in Q4, significantly higher than the historical range of 10% to 15% [34] Company Strategy and Development Direction - The company is focused on diversifying revenue sources and optimizing its business model, including the launch of Colossus Connections to enhance direct integrations with demand-side platforms [12][13] - The strategy includes targeting small- and mid-size clients who are shifting advertising budgets to digital, emphasizing a high-touch client relationship [15] - The company is pursuing opportunities in the middle market, which is seen as a growth area due to its slower transition to digital [42][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to scale both buy-side and sell-side businesses, reiterating revenue guidance for fiscal 2025 in the range of $90 million to $110 million [19][28] - The second half of 2025 is expected to deliver strong gains as new direct sell-side partners come online [19][28] Other Important Information - The company ended the year with cash and cash equivalents of $1.4 million, down from $5.1 million at the end of 2023 [26] - The company is actively pursuing funding and equity financing pathways to restore NASDAQ compliance and support growth initiatives [26][27] Q&A Session Summary Question: Impact of post-election malaise on Q4 and client spending recovery - Management noted that political spending was significantly higher in Q4, but December was softer than expected, impacting overall performance [35][36] Question: Initiatives on direct connections and middle market opportunities - Management confirmed a focus on developing new pathways for buyers and sellers, particularly in the middle market, which is seen as a ripe opportunity for growth [42][44] Question: Cost savings and annualized impact - Management indicated that there could be an additional $1.5 million to $2 million in annualized savings for 2025 due to cost-cutting measures [71] Question: Anticipation of positive cash flow - Management expects to return to a more normal cadence of cash flow in the third and fourth quarters of 2025 as revenue initiatives take effect [73]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 __________________________________________________________________________________ FORM 10-K __________________________________________________________________________________ (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TR ...

Walker continued, "In the third quarter of 2024, we announced the launch of Colossus Connections, an aggressive initiative to accelerate our direct integration efforts with leading demand-side platforms and that we have already signed up two of the leading partners in the marketplace. We are expecting to see revenue impacts as we move through 2025, once integration is complete in the second half of 2025. On the buy-side, since we unified our two divisions, Orange 142 and Huddled Masses, we have been keenly ...

Full Year Revenue of $62.3 Million In-Line with Revised Revenue GuidanceContinued to Diversify Customer Base with Leading Sell-Side Partners and Buy-Side Customers in New VerticalsManagement to Host Conference Call at 5:00 PM ET TodayHOUSTON, March 27, 2025 /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") and Orange 142, LLC (" ...

Core Insights - The partnership between Orange 142 and Tourism Economics aims to enhance the ability of destination marketing organizations (DMOs) to measure the economic impact of their digital marketing investments [1][2] - This collaboration provides DMOs with advanced attribution capabilities and economic impact dashboards, linking marketing efforts to visitor metrics and economic outcomes [1][4] Group 1: Partnership Overview - Orange 142, a division of Direct Digital Holdings, has partnered with Tourism Economics to provide DMOs with tools for measuring the ROI of marketing expenditures [2][4] - The partnership allows DMOs to access metrics that connect advertising efforts to tangible outcomes, optimizing campaigns and justifying budgets [2][4] Group 2: Tools and Metrics - The Media Impact Calculator (MIC) from Tourism Economics serves as a foundational tool for DMOs to quantify the economic impact of paid media and optimize performance [3][4] - Key metrics provided include total visitors from media campaigns, cost per 1000 visitors, average length of stay, and economic impact data [7] Group 3: Importance for DMOs - The partnership is particularly beneficial for tourism boards reliant on tax revenue and local business support, as it provides detailed economic impact data to secure funding [4] - The collaboration equips destination marketers with actionable intelligence to make informed decisions regarding their marketing strategies [4][5]

Group 1 - Direct Digital Holdings, Inc. will report its financial results for Q4 and full-year 2024 on March 27, 2025, after the U.S. stock market closes [1] - A conference call and webcast will be held on the same day at 5:00 PM ET to discuss the financial results [2] - Direct Digital Holdings operates through its subsidiaries, Colossus Media, LLC and Orange 142, LLC, providing advertising and marketing technology solutions [3] Group 2 - The company combines sell-side and buy-side advertising solutions, enhancing reach and performance for brands, agencies, and publishers [3] - Colossus SSP offers access to premium media properties, while Orange 142 delivers customized digital marketing solutions for mid-market and enterprise companies [3] - Direct Digital Holdings focuses on high-growth sectors such as Energy, Healthcare, Travel & Tourism, and Financial Services, providing performance strategies to connect brands with their target audiences [3][4]

Core Insights - Direct Digital Holdings has released a guide titled "Practical Generative AI Use Cases & Tools for DMOs" aimed at helping Destination Marketing Organizations (DMOs) leverage AI to enhance operational efficiency and marketing efforts [1][4] - The guide emphasizes that AI is essential for DMOs to maximize their impact with limited resources, enabling smarter decision-making and creative outputs [2][3] AI Integration and Benefits - The guide provides a structured roadmap for integrating AI into DMO functions, showcasing real-world examples of how AI can enhance workflows and reduce manual tasks [3] - AI is positioned as a tool to augment human expertise rather than replace it, supporting strategic planning and data-driven decision-making [3] Key Topics and Tools - The guide includes practical use cases and a curated list of AI tools for immediate implementation by DMOs, along with expert insights on AI's role in tourism marketing and operational efficiency [4] - Specific AI applications mentioned include custom destination guides, automated content generation, visual content creation for trade shows, social listening, event optimization, and data analysis [5] Industry Context - DMOs face increasing pressure to achieve more with fewer resources, making the integration of AI a critical strategy for enhancing engagement and driving economic impact [5]

Core Insights - Direct Digital Holdings has released a guide titled "Best Practices for AI Prompting" aimed at helping businesses optimize their use of generative AI tools while ensuring data integrity and security [1][2]. Group 1: AI Prompting Framework - The effectiveness of generative AI is closely linked to the quality of prompt engineering, with poorly structured prompts leading to misleading outputs and security risks [2][3]. - The guide provides a clear framework for crafting precise and impactful AI prompts, enabling businesses to achieve smarter and more reliable AI-driven outcomes [2][4]. - Key techniques outlined in the guide include defining AI roles, securing sensitive data, and iterating on responses to enhance AI-driven processes [4][8]. Group 2: Business Empowerment - Many organizations are eager to leverage AI but face challenges with prompt engineering and quality control, which the guide aims to address [4]. - By implementing structured AI prompting practices, businesses can reduce risks and improve the effectiveness of their AI workflows [4]. - The guide serves as a roadmap for organizations to maximize the benefits of AI while minimizing associated risks [3]. Group 3: Direct Digital Holdings Overview - Direct Digital Holdings combines sell-side and buy-side advertising solutions, providing data-driven digital media strategies for brands, agencies, and publishers [6]. - The company's sell-side platform, Colossus SSP, offers access to premium media properties, while Orange 142 focuses on customized digital marketing solutions [6]. - The company emphasizes personal relationships and tailored solutions, generating billions of monthly impressions across various digital channels [7].