DMS Announces Q1 2022 Financial Results and Enhances Technology Stack and Data Asset
- Record first-quarter revenue of $109 million, up 13% year over year.
- First-quarter net loss and adjusted EBITDA of $5 million and $10.5 million, respectively.
- First-quarter gross margin of 29% and variable marketing margin (VMM) of 35%.
- Announced second quarter 2022 revenue guidance of $97 - $100 million and adjusted EBITDA guidance of $8 - $10 million.
- Reduced full-year 2022 GAAP revenue guidance to $440 - $450 million and EBITDA guidance to $45 - $50 million.
- DMS announces the acquisition of Traverse Data, Inc. and enhancements to its data asset and proprietary technology.
CLEARWATER, Fla. – May 10, 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 first quarter ended March 31, 2022, including record first-quarter revenue, and also announced the acquisition of Traverse Data, Inc.
"We delivered solid results in the quarter, across the various metrics we focus on, including revenue growth, gross margins and adjusted EBITDA" said Joe Marinucci, CEO of DMS. "These results came despite volatility in auto and health insurance, as well as the effects of the current inflationary environment."
First-quarter revenue of $109 million was up 13% year over year, a record amount of revenue for any first quarter in DMS history. Gross margin and variable marketing margin were 29% and 35%, respectively, despite increased media costs that were mitigated by strong media buying expertise and use of the Company's first-party data asset. Net loss totaled $5 million and EBITDA in the quarter was $10.5 million, even as auto insurance market volatility and inflation impacted parts of the business.
Insurance revenue grew 22% and accounted for 60% of total revenues in the quarter. Ecommerce revenue declined 38% and represented 13% of the total. Career and education revenues increased 28% while consumer finance grew 90%, and they accounted for 12% and 10% of total revenues, respectively.
DMS continued to win wallet share from its top advertiser clients. Revenues from its top 20 clients increased 46% over the year ago period, and retention of those top 20 clients was 100%. The Company continues to show diversification outside of the top 20 and its enterprise clients with its 6,000+ independent insurance agents that are now expected to grow as a major insurance carrier joined the platform.
Activated by proprietary DMS technology capabilities, the Company's data program is a key driver of growth. DMS partners with strategic data providers, publisher partners and advertiser clients to help them enhance advertising performance, including customer retention efforts. Using the DMS data asset also helps DMS map current consumer actions against prior behaviors to help predict future consumer shopping patterns.
In a separate press release, DMS announced the acquisition of Traverse Data, which is expected to accelerate DMS technology and data capabilities. Traverse Data leverages the power of data to generate new customers for advertisers and incremental revenue for publishers via a commercialized audience activation, re-engagement and retargeting data signals platform. Traverse Data helps advertisers identify new audiences that look like their best customers and match emails to website shoppers for re-engagement. For additional information, see the Traverse Data acquisition press release at https://investors.digitalmediasolutions.com.
For more, read the full press release here.
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