Direct Digital Holdings (DRCT) investor relations material

Company overview and business model

• Operates a full-service advertising and marketing platform, providing ad tech, data-driven campaign optimization, and solutions for brands, agencies, and middle market businesses across both sell- and buy-side digital advertising.

• Sell-side business (Colossus Media) offers a proprietary programmatic platform for automating ad inventory sales, serving Fortune 500 brands, media holding companies, and agencies.

• Buy-side business (Orange 142) delivers technology-enabled advertising and consulting, focusing on small and mid-sized businesses in sectors like travel, education, energy, healthcare, and financial services.

• Incorporated in Delaware in 2021, with a history of acquisitions and business unification, and completed its initial public offering in February 2022.

• Principal executive office is in Houston, Texas.

Risk factors and disclosures

• Faces substantial doubt about ability to continue as a going concern, which may hinder future financing.

• Exposed to risks including high customer concentration, non-payment by clients, advertising fraud, platform performance issues, and regulatory changes affecting data privacy and tracking technologies.

• Intense competition in digital advertising and challenges in maintaining Nasdaq listing standards.

• Additional risks are detailed in incorporated SEC filings, including annual and quarterly reports.

Use of proceeds and capital allocation

• Net proceeds, if any, may be used for working capital, general corporate purposes, and potential acquisitions or investments in complementary technologies or businesses.

• Management has broad discretion over allocation of proceeds; funds may be temporarily invested in short-term, investment-grade securities or used to reduce short-term debt.