DMS Announces Q2 2022 Financial Results
- Second-quarter net revenue of $91 million
- Second-quarter net loss and Adjusted EBITDA of $12 million and $3 million, respectively
- Second-quarter gross margin of 26% and Variable Marketing Margin (VMM) of 33%
- Announced third quarter 2022 net revenue guidance of $87 – $90 million and Adjusted EBITDA guidance of $4 – $6 million
- Reduced full-year 2022 net revenue guidance to $390 – $400 million and Adjusted EBITDA guidance to $30 – $35 million
- Announces a multi-year strategic advertising partnership with internet technology and content evaluation company Seekr.
Clearwater, Fla. – August 9, 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 June 30, 2022.
“We are pleased with the results we delivered despite the challenges that resulted from macro-economic factors during the quarter. We are seeing positive momentum in key areas of our business such as growth in our independent agent base with an increase of 9% quarter over quarter bringing the total agent count to 7,026. Our data signals program also grew significantly on the back of the Traverse acquisition and is a cornerstone to our future growth. We remain optimistic that our dynamic diversification and agility continue to position DMS with the resilience needed to effectively weather industry instability successfully,'' said Joe Marinucci, CEO of DMS.
The steadfast competitive advantage of DMS is a direct result of the Company’s ability to harness the power of real-time consumer intent to drive efficiency and higher yield through the expanding DMS first-party data asset.
In the quarter, DMS continued to make a number of significant investments in the business such as expanding the Company's base of independent agents. Marinucci continued, “The growth of our agent base provides greater predictability and diversification against the volatility we are seeing in the current market with the enterprise clients. Over the coming year, we see an opportunity to grow and expand our agent base by up to 40% more agents as a result of the investments we have made.”
The company has also focused on capitalizing on staffing efficiencies that help 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.
“We believe 2022, specifically Q2, represents trough level performance for us with momentum building back for us in Q3 and Q4. This should set up 2023 as a year when we return to growth.” said Rick Rodick, DMS CFO.
The Company’s next phases of growth will include continuing to invest in the growth of independent agent operations along with commercialized audience activation. The audience activation initiatives lead to more efficient targeting and retargeting of consumers across the DMS platforms where the Company can engage consumers and deliver stronger advertising ROI to the Company's advertiser clients, as can be seen in the newly announced partnership with Seekr. For additional information, see the Seekr partnership press release at https://investors.digitalmediasolutions.com.
For more, read the full press release here.
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