Digital Media Solutions, Inc. Announces Q1 2023 Financial Results

Digital Media Solutions, Inc. (NYSE: DMS), a leading provider of technology-enabled digital performance advertising solutions connecting consumers and advertisers, today announced financial results for the quarter ended March 31, 2023.

DMS serves 291 scaled enterprise customers and nearly 6,500 SMBs across the P&C Insurance, Health Insurance, Ecommerce, Career and Education and Consumer Finance verticals with digital performance marketing solutions.

“In the face of an evolving operating landscape, we believe our Q1 2023 results are modestly positive,” said Joe Marinucci, CEO of DMS. “Although in Q2 we are facing some headwinds, particularly in our insurance business, we maintain a positive long-term outlook. A concentrated, in-depth focus on key solutions defines our strategic approach to long-term growth. Our robust and flexible business model is evident in the diversity of our customer base and the broad range of markets we cater to, and we are encouraged by Q1 growth in our Ecommerce and Consumer Finance verticals. Going forward, our focus is to refine our vertical-agnostic, data-driven solutions further, in the US as well as internationally, allowing us to deliver innovative solutions that offer mutual benefit to both consumers and advertisers.”

“Our recent strategic reorganization takes us deeper versus wider, enabling us to excel in competitive markets and concentrate on the key solutions that are poised to drive our long-term growth. The associated reduction in our workforce is resulting in a significant decrease in our operating costs. We remain steadfast in our commitment to managing these expenses, recognizing them as a crucial financial performance lever under our complete control,” Vanessa Guzman-Clark, Interim CFO, added.

First Quarter 2023 Performance:

(All comparisons are relative to the first quarter of 2022)

• Net revenue of $90.3 million, down 17.2%
• Gross profit margin of 24.7%, a decrease of 4.0 PPTS
• Variable Marketing Margin of 29.8%, a decrease of 5.1 PPTS
• Operating expenses totaled $32.5 million, a decrease of $2.0 million
• Net loss of $20.7 million compared to net income of $5.4 million
• Adjusted EBITDA of $3.4 million compared to $10.5 million
• EPS of $(0.32) compared to $(0.09); and adjusted EPS of $(0.05) compared to $0.00
• Ended the quarter with $20.1 million in cash and cash equivalents, and total debt of $256.6 million

First Quarter 2023 Segment Performance (including intercompany revenue):