Digitization plays an important role in transforming traditional structures. The purpose of this study is to investigate the effect of digital marketing capabilities and market sensing capabilities on company performance in Iran. This study is quantitative and simple random sampling method has been used to collect data. Data were collected using a structured questionnaire, 311 questionnaires were distributed, and a 5-point Likert scale was used to collect data from respondents who were involved in the distribution and supply of Digi Kala orders. The research hypothesis was tested using structural equation modeling technique. The results have identified a significant correlation and direct effect of digital marketing on firm performance. The results have identified a significant correlation and a direct effect of market sensing capability on firm performance. It is noteworthy that the mediating effect of market sensing capability between the digital marketing relationship and company performance is significant.