Why Direct Digital Holdings Stock Is Soaring After Hours

Direct Digital Holdings Inc DRCT shares are surging in Tuesday's after-hours session after the company reported financial results showing significant revenue growth and issued guidance above estimates.

Direct Digital said fourth-quarter revenue increased 95% year-over-year from $6.3 million to $12.9 million. The company reported a quarterly net loss of $2.1 million.

Direct Digital said it expects first-quarter revenue to be between $11 million and $11.5 million versus the $8.42 million estimate. The company expects full-year 2022 revenue to be between $48 million and $52 million versus the $49.24 million estimate.

Direct Digital is an end-to-end, full-service programmatic advertising platform primarily focused on providing advertising technology and data-driven campaign optimization.

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DRCT 52-Week Range: $1.18 - $4.35

The stock was up 51.5% in after hours trading at $3.91 at press time.