• Direct Digital is like The Trade Desk for small and mid-market advertisers.
• Direct Digital is like Shopify for programmatic advertising.

• Programmatic Advertising Services (Huddled Masses): Offers a full-service platform for automated, data-driven buying and selling of online ad inventory across various channels.
• Performance-Based Digital Advertising Services (Orange 142): Provides customized digital advertising solutions with a focus on driving measurable performance and return on investment for clients.
• Content and Social Media Marketing Services (Colossus Media): Specializes in creating and distributing engaging content and managing social media campaigns to enhance brand visibility and engagement.

Direct Digital (symbol: DRCT) primarily sells its advertising technology and services to other companies (B2B).

According to Direct Digital's Form 10-K filings with the SEC (e.g., for the fiscal year ended December 31, 2023), the company does not rely on a single customer for a significant portion of its revenue. No single client accounted for more than 10% of its consolidated revenue in 2023, 2022, or 2021. This indicates that Direct Digital has a diversified customer base rather than a few individual "major customers" in the traditional sense.

While specific "major customer" names are not disclosed due to this diversification, Direct Digital serves a wide array of clients, which can be broadly categorized as:

• Advertisers: These customers, ranging from small and mid-sized businesses (SMBs) to advertising agencies and larger enterprises across various industries, utilize Direct Digital's platforms and services to reach their target audiences through digital advertising campaigns.
• Publishers: These include companies and individuals who own websites, apps, or other digital media properties and partner with Direct Digital to monetize their digital content and inventory by hosting advertisements.

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Mark D. Walker, CEO, Co-Founder & Chairman

Mark D. Walker co-founded Direct Digital Holdings in 2018. Prior to this, he served as the Chief Operating Officer at CVG Group, LLC, a private equity firm, where he was responsible for the operations of their portfolio companies. He also held the role of acting COO for Ebony Media Operations, where he led the digital transformation of the company. His career also includes various positions at NRG Energy and experience in business development and marketing with Deloitte and several startups.

Diana P. Diaz, Chief Financial Officer

Diana P. Diaz serves as the Chief Financial Officer and Corporate Secretary of Direct Digital Holdings. The provided information does not offer further details regarding her background in founding or managing other companies, selling companies, or a pattern of managing private equity-backed companies.

Keith Smith, Co-Founder & President

Keith Smith is a co-founder and the President of Direct Digital Holdings. Before co-founding the company, he was a Managing Partner at Parkview Advisors, LLC, and President and CEO of Parkview Capital Credit, Inc., where he managed investments exceeding $75 million in acquisition and growth capital for small and mid-sized businesses. He also has over six years of experience as an attorney and has served on the boards of numerous portfolio companies.

Anu Pillai, Chief Technology Officer

Anu Pillai was appointed Chief Technology Officer of Direct Digital Holdings in March 2021. She brings extensive experience in defining and executing new product development solutions and large enterprise IT implementations, having successfully led global projects with cross-functional teams in various areas including program management, product design, software development, system architecture, integration, and implementation.

Maria Vilchez Lowrey, Chief Growth Officer

Maria Vilchez Lowrey serves as the Chief Growth Officer of Direct Digital Holdings. Specific background details regarding her prior roles, including founding or managing other companies, selling companies, or a pattern of managing private equity-backed companies, were not found in the provided information.

• Deprecation of Third-Party Cookies and Increased Data Privacy Regulations: Google's ongoing Privacy Sandbox initiative and the eventual phase-out of third-party cookies, coupled with stricter global data privacy regulations (e.g., GDPR, CCPA, Apple's ATT), fundamentally challenge the data-driven targeting and measurement capabilities central to many ad-tech business models, including DRCT's. This forces a rapid shift towards first-party data strategies and alternative identity solutions, an area where independent ad-tech players must adapt quickly to maintain effectiveness and compete with "walled gardens."
• Intensifying Dominance of Walled Gardens: The increasing market share and sophisticated ad offerings from major platforms like Google, Meta, and Amazon (the "walled gardens") concentrate advertiser spend within their ecosystems. These platforms control vast amounts of proprietary first-party data and offer integrated solutions, making it challenging for independent ad-tech companies like DRCT, which operate primarily in the open internet, to compete for ad budgets and demonstrate comparable ROI.
• Rapid Rise of Retail Media Networks: The accelerated growth of retail media networks (e.g., Amazon Ads, Walmart Connect, Target Roundel) represents a significant shift in advertising budgets, particularly for consumer brands. These platforms leverage extensive first-party purchase data to offer highly targeted advertising and closed-loop attribution, directly competing with and potentially siphoning ad spend away from traditional programmatic channels where DRCT operates.

Direct Digital (DRCT) operates within the digital advertising technology (AdTech) market, providing end-to-end programmatic advertising solutions on both the buy-side (Demand-Side Platform, or DSP) and sell-side (Sell-Side Platform, or SSP). They primarily focus on serving small and mid-sized businesses (SMBs) and mid-market companies.

The addressable markets for Direct Digital's main products and services are substantial, with projections indicating continued growth:

Global Programmatic Advertising Market

• The global programmatic advertising market size was estimated at approximately $678.37 billion in 2023 and is projected to reach approximately $2,753.03 billion by 2030, growing at a Compound Annual Growth Rate (CAGR) of 22.8% from 2024 to 2030.
• Another estimate projects the global programmatic advertising market to reach $834 billion in 2025 and $5,182 billion by 2034, with a CAGR of 22.5% from 2025 to 2034.
• North America held the largest global programmatic advertising market share in 2023, accounting for 32.6% to 40% of the market.

Global Sell-Side Platform (SSP) Market

• The global Sell-Side Platform market size was valued at $359.47 million in 2024 and is projected to reach $858.82 million by 2034, exhibiting a CAGR of 9.1% during the forecast period of 2025-2034.
• North America leads the global SSP market with a 32% share.

Global Demand-Side Platform (DSP) Market

• The global demand-side platform market size was valued at $31.49 billion in 2024 and is projected to grow to $148.92 billion by 2032, exhibiting a CAGR of 21.1%.
• North America dominated the global DSP market with a 39.25% share in 2024.
• The U.S. demand-side platform market is predicted to reach an estimated value of $46.93 billion by 2032.

Global AdTech Market (Broader Context)

• The global AdTech market size was valued at $847.28 billion in 2023 and is expected to grow to $4,054.61 billion by 2032, at a CAGR of 19.0% during the forecast period (2025-2032).
• Another report indicates the global AdTech market is projected to be valued at $1.27 trillion in 2025 and is expected to reach $7.82 trillion by 2034, growing at a CAGR of 22.35%.
• The U.S. AdTech market size was $279.61 billion in 2024 and is projected to be worth approximately $2,155.79 billion by 2034.

Direct Digital Holdings (NASDAQ: DRCT) is focusing on several key initiatives to drive revenue growth over the next 2-3 years, as outlined in recent earnings reports and investor communications.

Here are 3-5 expected drivers of future revenue growth:

1. Growth in Buy-Side Advertising Segment: Direct Digital's buy-side advertising segment, primarily through Orange 142, has shown consistent growth and is expected to be a significant revenue driver. The company has seen increased buy-side revenue, driven by new verticals, and is focusing on scaling its buy-side solutions. For example, buy-side revenue increased by 7% in Q3 2025 and 6% in Q1 2025 compared to the prior year. The company aims to expand its focus on small and mid-sized clients who are increasingly shifting advertising budgets to digital platforms.
2. Rebuilding and Scaling the Sell-Side Business: The company is actively working to rebuild its sell-side business (Colossus SSP) to historical revenue levels following past disruptions. Efforts include securing new direct sell-side partners and restoring relationships with existing ones. Direct Digital anticipates strong gains in the second half of 2025 as new direct sell-side partners come online. The strategy for the sell-side business involves working directly with Demand-Side Platforms (DSPs) and investing in an ecosystem platform approach to create multiple revenue streams.
3. Strategic Partnerships and New Verticals: Direct Digital is leveraging strategic partnerships to expand its offerings and reach new markets. A notable example is the partnership between its subsidiary, Orange 142, and ReachTV, which aims to enhance media planning and performance marketing capabilities, specifically targeting the travel and tourism sector. The company is also focused on acquiring larger customers in new verticals to provide more stable and performance-based revenue. In Q1 2025, growth from customers in new verticals contributed $1.2 million to buy-side revenue.
4. AI-Driven Innovation and Efficiency: The adoption of AI is a key strategic initiative for Direct Digital, expected to drive future revenue by enhancing internal processes, improving customer solutions, and increasing operational efficiencies. AI advancements are anticipated to allow for growth on the sell-side without a proportional increase in fixed costs, thereby enhancing revenue potential. The company has leveraged AI to increase its feature set by nearly 40% and create over 10 new AI modules, leading to significant cost savings through automation.
5. Direct Integration Efforts with Demand-Side Platforms (DSPs): The launch of "Colossus Connections" is an aggressive initiative aimed at accelerating direct integration efforts with leading demand-side platforms. This is expected to increase access to potential demand and revenue, with anticipated revenue impacts as integrations are completed in the second half of 2025.

Share Repurchases

Share Issuance

• Direct Digital established an Equity Reserve Facility with New Circle Principal Investments LLC, initially for up to $20 million over 36 months, allowing New Circle to purchase Class A common stock at Direct Digital's election, announced in October 2024.
• The Equity Reserve Facility with New Circle Capital was expanded to a total capacity of $100 million in aggregate gross proceeds from the sale of Class A Common Stock, announced in November 2025.
• Since the commencement of the equity line through October 23, 2025, Direct Digital sold 11.3 million shares to New Circle for approximately $8.9 million. Additionally, in the quarter ended September 30, 2025, the company sold 3.7 million shares for $1.3 million, and between September 16, 2025, and September 30, 2025, an additional 2.4 million shares were sold for a total cash consideration of $755,383 (net of discounts).
• In August 2025, Direct Digital issued $25 million of Series A Convertible Preferred Stock at a conversion price of $2.50 per share of Class A Common Stock. This issuance was made through the conversion of a portion of existing debt into the new class of perpetual convertible preferred stock. An additional $10 million of term loans were exchanged for Series A Preferred Stock on October 14, 2025.

Inbound Investments

• In August 2025, Direct Digital raised $25 million through the issuance of Series A Convertible Preferred Stock by converting a portion of existing debt. This investment increased the company's stockholders' equity from a deficit of $24.6 million at June 30, 2025, to an estimated positive equity of approximately $0.4 million, and reduces ongoing debt service by over $3.5 million.
• The company has an Equity Reserve Facility with New Circle Capital, which allows for the sale of Class A common stock to New Circle, with an expanded capacity of $100 million. While primarily a financing mechanism, it represents an ongoing investment by New Circle into Direct Digital.

Outbound Investments

Capital Expenditures

• In the last 12 months, capital expenditures for Direct Digital were -$45,000.
• The proceeds from the Equity Reserve Facility with New Circle Capital are anticipated to be used for general corporate purposes and to drive key growth initiatives, including technological advancements for Direct Digital's supply-side platform (SSP), Colossus SSP, such as developing new segment-based products in carbon and attention, and supporting direct integrations with leading demand-side platforms (DSPs).