Net (Loss) Income Per Share (Tables)

12 Months Ended

Dec. 31, 2023

Net (Loss) Income Per Share

Schedule of basic and diluted income per share

The Company has two classes of common stock, Class A and Class B. Shares of the Company’s Class B Common Stock do not share in the earnings or losses attributable to Direct Digital Holdings, Inc. and are therefore not participating securities. The Company uses the two-class method to calculate basic and diluted earnings per share as a result of

outstanding participating securities in the form of warrants. The following table sets forth the computation of the Company’s basic and diluted (loss) income per share (in thousands, except per share amounts).

	Year Ended
	December 31,
	2023		2022
Net (loss) income	$	(2,194)	$	205
Less: net loss prior to Organizational Transactions		—		(464)
Net (loss) income attributable to Class A shareholders and participating securities		(2,194)		669
Less: net income allocated to participating securities		—		353
Net (loss) income allocated to Class A shareholders	$	(2,194)	$	316
Weighted average common shares outstanding - basic		2,988		2,848
Options to purchase common stock		—		—
Unvested restricted stock units		—		43
Weighted average common shares outstanding - diluted		2,988		2,891
Net (loss) income per share, basic	$	(0.73)	$	0.11
Net (loss) income per share, diluted	$	(0.73)	$	0.11

Schedule of Antidilutive Securities

The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of diluted net (loss) income per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive (in thousands):

	Year Ended
	December 31,
	2023		2022
Class B Common Stock		11,249		11,330
Restricted stock units		511		189
Options to purchase common stock		347		—
Total excludable from net (loss) income per share attributable to common stockholders - diluted		12,107		11,519