Direct Digital Holdings, Inc. · NASDAQ:DRCT
Direct Digital — Q1 2025 Earnings Presentation
26 slides from Direct Digital's earnings presentation, May 6, 2025
Slide 1: AdTech Platform Focused on Middle Market
COMPANY OVERVIEW AdTech Platform Focused on Middle Market May 2025 Copyright 2025 © Direct Digital Holdings Company. All rights reserved.
Slide 2: Disclaimer
Disclaimer Cautionary Note Regarding Forward-Looking Statements This presentation contains forward-looking statements within the meaning of federal securities laws that are subject to certain risks, trends and uncertainties. We use words such as “could,” “would,” “may,” “might,” “will,” “expect,” “l
Slide 3: Founder-Led Management Team
Founder-Led Management Team EXECUTIVE TEAM BOARD OF DIRECTORS Tonie Leatherberry Independent Director Mark Walker Keith Smith Diana Diaz Anu Pillai Maria Vilchez Co-Founder, Co-Founder, Chief Chief Lowrey Richard Cohen Chairman & Director & Financial Officer Technology Chief Independent Director Chi
Slide 4: Digital Advertising built for Everyone: Buy-Side and Sell-Side Platforms
Buy-Side Platform Sell-Side Platform Digital Advertising built for Everyone. Approach Approach ● Responsible for buying media for clients to ● Automated sale of ad inventory between drive ROI for clients advertisers and agencies leveraging proprietary technology Capabilities ● Leverage programmatic
Slide 5: Direct Digital Holdings
Direct Digital Holdings Founder-led, technology platform that assists companies buy and sell media to deliver ROI Exceeding the demands of the underserved middle market and penetrating multicultural audiences Publicly-traded company with successful track record, well-positioned to capitalize on the
Slide 6: Our Business is Focused on Driving ROI for Clients and Diverse Publishers
Our Business is Focused on Driving ROI for +76% over 2022 performance Clients and Diverse Publishers Organic growth of +134% over 2021 Achieved record growth at +25% YoY $157.1M driven by SSP growth Rev acquired +325% YoY HM and Colossus SSP continue to add $89M new customers Rev and publishers acqu
Slide 7: Revenue Dip in 2024: Clear Strategy to Return to Growth and Profitability
Revenue Dip in 2024: Clear Strategy to Return to Growth and Profitability ($ in Millions) +76% YOY Continued Focus on Organic Growth Growth Initiatives Drives Revenue +76% in FY 2023 $157.1 ● In FY 2023, sell-side contributed $122.4 million or 104% growth YoY. ● In FY 2023, buy-side contributed $34.
Slide 8: 2024 Summary and Rebuild
2024 SUMMARY AND REBUILD November 2024 Direct Digital Holdings announces May 2024 October 2024 the unification of its buy-side Direct Digital Holdings businesses, Orange 142 and Huddled December 2023 Adalytics publishes false and announces $20 million Masses, under the Orange 142 brand defamatory bl
Slide 9: Comprehensive Strategy and Offerings to Meet Diverse Client Needs
Comprehensive Strategy and Offerings to Meet Diverse Client Needs (Orange 142) (Colossus SSP) Advertisers Demand-Side Publishers Buy-Side Platform Supply-Side Platform (DSP) Platform (BSP) (SSP) Data Lake Decision to purchase Integrated to SSPs to Sells media inventory media access ad inventory thro
Slide 10: Massive, Underserved Addressable Digital Advertising Market With Strong Tailwinds
Massive, Underserved Addressable Digital Advertising Market With Strong Tailwinds Total U.S. Digital Ad Spending $309 19% $309B* $153 CAGR 2020 2024 U.S. Digital Ad Spend U.S. Programmatic Digital Display Ad Spending $174 $66 28% $89B** 2020 2024 CAGR Middle Market Advertising Total CTV Ad Spending
Slide 11: Direct Digital Holdings
Direct Digital Holdings Blue Chip & Middle High Full Funnel Marketplace Volume Superior Market Advertiser Base Digital Platform Quality advertisers 9+ billion monthly bid Monetization CTV/OTT, video, display, responses audio & native EXAMPLE MULTICULTURAL PUBLISHERS EXAMPLE GENERAL MARKET PUBLISHERS
Slide 12: Why Do Advertisers Choose DDH?
Why Do Advertisers Choose DDH? Measurable & Broad Reach Access to Unique Superior ROI 188+ billion monthly Multicultural impressions Audiences EXAMPLE BUY-SIDE CUSTOMERS EXAMPLE SELL-SIDE CUSTOMERS Copyright 2025 © Direct Digital Holdings Company. All rights reserved. 12
Slide 13: Colossus Connections & Direct Integrations
Colossus Connections & Direct Integrations • Direct Integrations are designed to optimize supply path efficiency for advertisers through streamlined, direct connections with top demand-side platforms (DSPs), ensuring a more efficient, cost-effective, and impactful programmatic Publisher lists websit
Slide 14: Financial Performance
Financial Performance
Slide 15: Key Q1 2025 Highlights
Key Q1 2025 Highlights $8.2M $2.0M $6.1M Total Revenue Sell-Side Revenue Buy-Side Revenue 188B Average Monthly $(5.9M) $(3.0M) Net Income Adjusted EBITDA(1) Impressions Processed (1) Adjusted EBITDA is a non-GAAP financial measure, see reconciliation at the end of the presentation. Copyright 2025 ©
Slide 16: Key FY 2024 Highlights
Key FY 2024 Highlights $62.3M $35.7M $26.6M Total Revenue Sell-Side Revenue Buy-Side Revenue 212B Average Monthly Impressions $(19.9M) $(9.3M) Net Loss Adjusted EBITDA(1) Processed 23% 12% Decrease in Adjusted Operating Decrease in Operating Expense Expense (1)(2) (1) Adjusted EBITDA and Adjusted Op
Slide 17: Business Model & Operational Metrics
Business Model & Operational Metrics 2022 2023 2024 Q1 2025 Long-Term Range Revenue Mix Buy-Side 33% 22% 43% 75% 40%-50% Sell-Side 67% 78% 57% 25% 50%-60% 100% 100% 100% 100% 100% Gross Margin Buy-Side 64% 60% 59% 49% 58%-63% Sell-Side 16% 14% 4% (30%) 10%-15% Overall 32% 24% 28% 29% 28%-33% Operati
Slide 18: Q&A
Q&A
Slide 19: Awards & Recognition
Awards & Recognition
Slide 20: Direct Digital Holdings Has Received Multiple Industry and Business Awards
Direct Digital Holdings Has Received Multiple Industry and Business Awards Copyright 2025 © Direct Digital Holdings Company. All rights reserved. 20
Slide 21: Appendix
Appendix
Slide 22: Non-GAAP Financial Measures
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 (loss), net cash provided by (used in) operating activities, and net income (loss), we believe that certain non-GAAP
Slide 23: Reconciliation of Net Income (Loss) to Adjusted EBITDA
Reconciliation of Net Income (Loss) to adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) Three Months Ended Year Ended March 31, 2025 March 31, 2024 December 31, 2024 December 31, 2024 Net loss: $ (5,940) $ (3,820) $ (19,907) $ (6,844) Add back (deduct): Interest expe
Slide 24: Reconciliation of total operating expenses to adjusted operating expenses
Reconciliation of total operating expenses to adjusted operating expenses Three Months Ended Year Ended March 31, 2025 March 31, 2024 December 31, 2024 December 31, 2024 Total operating expenses: $ 6,317 $ 7,805 $ 30,624 $ 39,759 Deduct: Non-recurring publisher payments - - - 8,830 Costs to regain c
Slide 25: How Ad Tech Companies Make Money
How Ad Tech Companies Make Money Flow $1.00 of ad space spend through the ad tech ecosystem Direct Digital Core Competency DDH Take: $0.13 Spends Buy-Side Service Flows Flows Flows 1 Brands/Agency $1.00 Platform $0.70 DSP $0.63 SSP $0.50 Publisher Keeps $0.30 Keeps $0.07 Keeps $0.13 or 20% Keeps $0.
Slide 26: Thank you.
COMPANY OVERVIEW Thank you. Copyright 2025 © Direct Digital Holdings Company. All rights reserved.
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