Direct Digital Holdings Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Segment Information

Segment Information

9 Months Ended

Sep. 30, 2022

Note 13 — Segment Information

Operating segments are components of an enterprise for which separate financial information is available and is evaluated regularly by the Company’s chief operating decision maker in deciding how to allocate resources and assess performance. The Company’s chief operating decision maker is its Chairman and Chief Executive Officer. The Company views its business as two reportable segments, buy-side advertising, which includes the results of Huddled Masses and Orange142, and sell-side advertising, which includes the results of Colossus Media. All of the Company’s revenues are attributed to the United States.

Revenue by business segment is as follows:


	For the Three Months				For the Nine Months
	Ended				Ended
	September 30,				September 30,
	2022		2021		2022		2021
Buy-side advertising	$	7,130,736	$	6,033,883	$	22,283,044	$	19,975,235
Sell-side advertising		18,854,639		2,326,862		36,333,976		5,261,135
Total revenues	$	25,985,375	$	8,360,745	$	58,617,020	$	25,236,370

Operating income (loss) by business segment reconciled to income before taxes is as follows:


	For the Three Months				For the Nine Months
	Ended				Ended
	September 30,				September 30,
	2022		2021		2022		2021
Buy-side advertising	$	1,357,635	$	1,096,764	$	5,620,194	$	4,705,408
Sell-side advertising		2,365,495		115,453		4,599,629		277,293
Corporate office expenses		(1,878,306)		(645,305)		(4,725,981)		(1,921,973)
Total operating income		1,844,824		566,912		5,493,842		3,060,728
Corporate other expense		(905,605)		(792,400)		(2,525,207)		(2,382,149)
Income before taxes	$	939,219	$	(225,488)	$	2,968,635	$	678,579

Total assets by business segment are as follows:


	As of		As of
	September 30,		December 31,
	2022		2021
Buy-side advertising	$	26,454,069	$	25,648,105
Sell-side advertising		22,597,857		8,277,575
Corporate office expenses		4,748,575		2,074,253
Total assets	$	53,800,501	$	35,999,933

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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+ Details