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Black-owned Direct Digital Holdings reports 131% revenue increase in 2022

Direct Digital Holdings Inc., (DRCT) is the ninth Black-owned company to go public in the U.S. and reported a 131 per cent revenue increase in 2022 at $88 million.

Black-owned Direct Digital Holdings reports 131% revenue increase in 2022
Mark Walker, co-founder, chairman and CEO of Direct Digital Holdings Inc. LINKEDIN PHOTO 

Direct Digital Holdings Inc. (DRCT), the ninth Black-owned company to go public in the U.S., has announced revenue hit $88 million, up 131 per cent in 2022, a nearly $50 million increase from its fiscal year 2021.

The advertising and marketing technology company, based in Houston, Texas, owns three LLCs, including Colossus Media, Huddled Masses, and Orange142. Dealing with middle-market advertisers and major companies, the enterprise saw fourth-quarter revenue jump 128 per cent to $29.4 million.

“We are pleased to report that 2022, our first year as a public company, saw robust financial performance, significant operational expansion, and continued gains in market share for Direct Digital Holdings. Both our quarterly and full-year results capitalized on brands and businesses moving dollars away from less efficient traditional advertising outlets towards digital media,” Mark Walker, chairman and chief executive officer at Direct Digital Holdings Inc., said in a statement. “We are expecting strong double-digit percentage revenue growth in FY 2023 across both our sell- and buy-side business segments as we further drive customer adoption of our digital advertising solutions."

Direct Digital Holdings also reported growth in its sell-side advertising segment, which rose to $58.7 million from $12 million compared to the same period last year. Meanwhile, its buy-side advertising segment also grew to $29.3 million, up 12 per cent from 2021.

The fourth quarter was particularly strong for the company. It processed approximately 132 billion monthly impressions through its sell-side advertising segment, an increase of 81 per cent over the same period of 2021, with over 833 billion bid requests for the quarter.

The company hopes to generate between $118-122 million in 2023, according to a statement. Direct Digital Holdings also recently expanded its executive team.

“Our fourth quarter and full-year 2022 performance, particularly during a difficult macroeconomic environment, is a testament to our market-leading approach to working with middle market and multicultural audiences. Looking ahead, we are excited to continue scaling across these fast-growing and underrepresented communities from a position of financial strength, which we expect will give us a significant competitive advantage for sustainable, long-term growth,” Direct Digital Holdings president Keith Smith said in a statement.