Direct Digital Holdings (Direct Digital Holdings) COGS-to-Revenue : 0.77 (As of Dec. 2023)

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What is Direct Digital Holdings COGS-to-Revenue?

Direct Digital Holdings's Cost of Goods Sold for the three months ended in Dec. 2023 was $31.70 Mil. Its Revenue for the three months ended in Dec. 2023 was $41.01 Mil.

Direct Digital Holdings's COGS to Revenue for the three months ended in Dec. 2023 was 0.77.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. Direct Digital Holdings's Gross Margin % for the three months ended in Dec. 2023 was 22.72%.

Direct Digital Holdings COGS-to-Revenue Historical Data

The historical data trend for Direct Digital Holdings's COGS-to-Revenue can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Direct Digital Holdings COGS-to-Revenue Chart

Direct Digital Holdings Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

COGS-to-Revenue

0.72

0.59

0.52

0.67

0.76

Direct Digital Holdings Quarterly Data
	Dec19	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
COGS-to-Revenue	Get a 7-Day Free Trial										0.72	0.70	0.72	0.80	0.77

Direct Digital Holdings COGS-to-Revenue Calculation

Direct Digital Holdings's COGS to Revenue for the fiscal year that ended in Dec. 2023 is calculated as

COGS to Revenue	=	Cost of Goods Sold	/	Revenue
	=	119.536	/	157.11
	=	0.76

Direct Digital Holdings's COGS to Revenue for the quarter that ended in Dec. 2023 is calculated as

COGS to Revenue	=	Cost of Goods Sold	/	Revenue
	=	31.696	/	41.012
	=	0.77

Direct Digital Holdings (NAS:DRCTW) COGS-to-Revenue Explanation

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin.

Direct Digital Holdings's Gross Margin % for the three months ended in Dec. 2023 is calculated as:

Gross Margin %	=	1	-	COGS to Revenue
	=	1	-	Cost of Goods Sold / Revenue
	=	1	-	31.696 / 41.012
	=	22.72 %

A company that has a moat can usually maintain or even expand their Gross Margin. A company can increase its Gross Margin in two ways. It can increase the prices of the goods it sells and keeps its Cost of Goods Sold unchanged. Or it can keep the sales price unchanged and squeeze its suppliers to reduce the Cost of Goods Sold. Warren Buffett believes businesses with the power to raise prices have moats.

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Direct Digital Holdings (Direct Digital Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Direct Digital Holdings Inc (NAS:DRCTW) » Definitions » COGS-to-Revenue

Comparable Companies

Traded in Other Exchanges

DRCT:USA

Address

1177 West Loop South, Suite 1310, Houston, TX, USA, 77027

Website

https://www.directdigitalholdings.com

Direct Digital Holdings Inc is an end-to-end, full-service programmatic advertising platform primarily focused on providing advertising technology, data-driven campaign optimization and other solutions to underserved and less efficient markets on both the buy- and sell-side of the digital advertising ecosystem.