Digital Media Solutions, Inc. Announces Q3 2022 Financial Results
- Third-quarter net revenue of $90.1 million exceeding guidance
- Third-quarter net loss and Adjusted EBITDA of $10.1 million and $5.1 million, respectively
- Third-quarter gross margin of 26.3% and Variable Marketing Margin (VMM) of 32.3%
- Announced fourth quarter 2022 net revenue guidance of $97 – $102 million and Adjusted EBITDA guidance of $7 – $10 million
- Tightened full-year 2022 net revenue guidance to $385 – $390 million and Adjusted EBITDA guidance to $26 – $29 million
- Delivered a 3rd consecutive quarter of auto insurance marketplace revenue growth powered by a 2nd consecutive quarter of linear growth in aggregate captive insurance agents utilizing the DMS platform
CLEARWATER, Fla. – November 8, 2022 – Digital Media Solutions, Inc. (NYSE: DMS), a leading provider of technology-enabled digital performance advertising solutions connecting consumers and advertisers, today announced financial results for the quarter ended September 30, 2022.
“We are pleased with our third quarter results. Despite operating in an environment where we faced complex and specific challenges, we still saw growth in key areas of our business and believe this growth will continue for the remainder of the year and into 2023,” said Joe Marinucci, CEO of DMS.
During periods of uncertainty, marketers re-evaluate their budgets and are even more focused on finding the best-performing advertising methods. Marinucci continued, “For the third consecutive quarter, we saw linear growth in auto insurance within our marketplace segment. We delivered auto insurance marketplace revenue of $38.5M, up from $37.3M in Q2 and $35.5M in Q1. Our strategic growth initiative, focused on agent expansion, underpinned this growth.”
Rick Rodick, CFO, added, “Our third quarter performance demonstrates our ability to deliver results despite operating in a dynamic macroeconomic environment. Throughout the quarter, we continued driving efficiency in our business through consolidation and a reduction of operating expenses which led to a $2.2 million year-over-year reduction in SG&A. This will remain a priority for us throughout 2023.”
The Company will continue to focus on capitalizing on staffing efficiencies helping to accelerate the recovery of growth, while mitigating additional operating expenses. DMS remains committed to its investment in people, process and technology, with a significant emphasis on its data and technology assets.
For more, read the full press release here.
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