Digital Media Solutions, Inc. Stock Price, News & Analysis

Digital Media Solutions (NYSE: DMS) has announced an acquisition of HomeQuote.io, a home services marketplace, from Customer Direct Group. This strategic move aims to expand DMS's marketplace solutions into home services, a sector expected to grow as homeowners focus on renovation. The acquisition, valued at $35 million, could add $70-80 million to DMS's FY2023 revenue. In addition, it will allow DMS to enhance its brand direct business internationally, reaching over a dozen countries. The deal is subject to closing conditions, with further details anticipated during the Q4 FY2022 earnings call in March 2023.

Digital Media Solutions (NYSE: DMS) announced its Board's decision to continue as an independent public company after evaluating strategic alternatives to maximize shareholder value. The Board received various proposals, including a $2.50 per-share acquisition bid from Prism Data, LLC, which was later withdrawn. The company has also implemented a restructuring plan resulting in a 14% workforce reduction to enhance efficiency and focus on growth sectors. Despite the conclusion of the strategic review, the Board remains committed to exploring strategic alternatives in the future.

Digital Media Solutions (NYSE: DMS) has been recognized for its exceptional performance in brand-direct advertising solutions, claiming the No. 1 position on mThink's 2023 'Top CPA Networks for Affiliates & Publishers List.' This marks the tenth consecutive year DMS has secured a leading position on the 'Top 20 CPA Networks List.' Additionally, it ranks No. 3 on the 'Top CPA Networks for Advertisers & Merchants List.' The recognition reflects extensive evaluations by industry experts and highlights DMS's commitment to innovative solutions and client-focused support.

Digital Media Solutions, Inc. (NYSE: DMS) reported third-quarter 2022 net revenue of $90.1 million, exceeding guidance, but down 16.1% year-over-year. The company faced a net loss of $10.1 million and an Adjusted EBITDA of $5.1 million. Gross margin decreased to 26.3%. DMS anticipates fourth-quarter net revenue between $97 million and $102 million and adjusted EBITDA of $7 million to $10 million. The company is reviewing an acquisition proposal for its Class A common stock at $2.50 per share.

Digital Media Solutions, Inc. (NYSE: DMS) will release its third quarter results on November 8, 2022, after the U.S. stock market closes. A conference call is scheduled for 5:00 p.m. (Eastern Time) to discuss the results. The U.S. toll-free dial-in number for the call is 1-833-927-1758, with an international number of 1-929-526-1599. A live webcast of the call will be available on the company's investor relations page. A replay will be accessible from November 8 to November 15, 2022.

Digital Media Solutions, Inc. (NYSE: DMS) announced that its Board of Directors has received a cash acquisition offer from Prism Data, LLC, affiliated with CEO Joseph Marinucci and COO Fernando Borghese. The proposal values DMS at $2.50 per share. The Board is set to review the offer in compliance with its fiduciary duties.

This acquisition proposal highlights DMS's ongoing strategic initiatives but introduces uncertainty regarding the future direction of the company should the deal proceed.

Digital Media Solutions reported second-quarter 2022 net revenue of $91 million, down 13% year-over-year. The company experienced a net loss of $12 million and Adjusted EBITDA of $3 million. Gross margin decreased to 26%, while Variable Marketing Margin fell to 33%. For Q3 2022, DMS expects net revenue between $87 – $90 million and Adjusted EBITDA of $4 – $6 million. Full-year guidance was revised to $390 – $400 million in revenue and $30 – $35 million in Adjusted EBITDA. The company announced a new strategic partnership with Seekr.

Digital Media Solutions, Inc. (NYSE: DMS) has entered a multi-year partnership with Seekr to enhance advertising and revenue strategies across Seekr's global search platform. This collaboration aims to improve audience engagement using DMS's technology and first-party data. Seekr, an AI-driven content evaluation company, focuses on delivering transparent and trustworthy search results. The partnership is expected to expand Seekr's reach to over 9,000 potential customers in various sectors, with monetization efforts planned for early Q4.

Digital Media Solutions (NYSE: DMS) will release its second quarter financial results on August 9, 2022, after U.S. stock market closure. Following the release, a conference call is scheduled for 5:00 p.m. ET to discuss the results. Investors can join the call using the U.S. toll-free number 1-844-200-6205 or the international number 1-646-904-5544, with access code 763986. A live webcast will also be available on the investor relations page of the company’s website. A replay of the call can be accessed from August 9 to August 16, 2022.