Direct Digital's Stock Plunges 38.35% on Earnings Miss

On March 28, 2025, Direct Digital's stock price dropped by 38.35% in pre-market trading.

Direct Digital Holdings reported its fourth-quarter earnings for 2024, revealing a significant decline in revenue and earnings per share (EPS). The company's revenue for the quarter was $9.1 million, a substantial decrease from the $41.0 million reported in the same period last year. The EPS for the quarter was $-0.54, missing analyst estimates by $0.65. This earnings miss follows a pattern of underperformance, with the company's EPS missing estimates by $0.84 in the previous quarter, leading to a 29.17% drop in share price the following day.

Investors are closely watching Direct Digital Holdings as the company's financial performance has been a key driver of its stock price movements. The company's guidance for future quarters will be crucial in determining investor sentiment and the stock's trajectory. Given the recent earnings miss and the significant drop in revenue, investors are likely to be cautious about the company's prospects.