Direct Digital Holdings, Inc. (NASDAQ:DRCT) Q3 2023 Earnings Call Transcript

Mark Walker: Yes. Yes. What I would say is — I’ll give you — leave you with two stats. One stat is 40% of the U.S. population is made up of those groups that I actually outlined. That’s number one. And the second stat where we sit, roughly about 10% to 20%, depending on the month of our inventories directly geared to those audiences through those publications, which are authentic. So we do think that there’s still a significant amount of growth opportunity there with the overall advertising buying community to reach those audiences. And we are the beneficiaries of that upside. So we are going to continue to make more investments in adding those type of publications into our ecosystem and ultimately at some point in the future, the goal really would be for 40% of all marketing spend to be geared towards those communities.

But we are not near that point yet, but that’s really the point that we are working towards. And I think we are actually enjoying the benefits of that differential that’s actually in the marketplace versus the publishers and the impressions that are actually available.

Michael Kupinski: Excellent [ph]. Posting these types of numbers, I mean it’s very likely you’re going to start to see new entrants in niche marketplace. And I was just wondering, are you starting to see additional competition kind of move in? Or is it still a pretty good open field for you?

Mark Walker: Yes. I mean I think all of our competitors, we view a lot of the publicly traded companies as competitors, and there are some private entities that are out there. They’ve been out in the marketplace for some time now. And so we are adept and equipped to actually to maintain and be a competitive option for the buyers to actually work through. And I think that’s some of the benefit that you’re seeing and they’re gravitating towards us.

Michael Kupinski: Okay. That’s all I have. Congratulations.

Mark Walker: Okay. Thank you.

Operator: There are no further questions at this time. Mr. Mark Walker, I turn the call back over to you.

Mark Walker: All right. If there’s no further questions, thank you for everyone that have decided to come and listen and we are looking forward to speaking to you back in Q4. Thank you.

Operator: This concludes today’s conference call. You may now disconnect.