Net Loss Per Share (Tables)

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

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 for the three months ended March 31, 2023. The following table sets forth the computation of the Company’s basic and diluted net loss per share (in thousands, except per share amounts):

	Three Months Ended March 31,
	2024		2023
Net loss	$	(775)	$	(214)
Weighted average common shares outstanding - basic	3,509		2,901
Class B Common Stock	—		—
Options to purchase common stock	—		—
Unvested restricted stock units	—		—
Weighted average common shares outstanding - diluted	3,509		2,901
Net loss per common share, basic	$	(0.22)	$	(0.07)
Net loss per common share, diluted	$	(0.22)	$	(0.07)

Schedule of Antidilutive Securities

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

	Three Months Ended March 31,
	2024	2023
Class B Common Stock	10,868	11,278
Warrants to purchase common stock	—	3,219
Options to purchase common stock	367	270
Unvested restricted stock units	535	397
Total excludable from net loss per share attributable to common stockholders - diluted	11,770	15,164