Net (Loss) Income Per Share (Tables)

6 Months Ended

Jun. 30, 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 and six months ended June 30, 2023. The following table sets forth the computation of the Company’s basic and diluted net (loss) income per share (in thousands, except per share amounts):

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Net (loss) income attributable to Class A shareholders and participating securities	$	(590)	$	192	$	(1,365)	$	(22)
Less: net income allocated to participating securities	—		99		—		—
Net (loss) income allocated to Class A shareholders	$	(590)	$	93	$	(1,365)	$	(22)
Weighted average common shares outstanding - basic	3,700,615		2,921,258		3,604,220		2,911,801
Class B Common Stock	—		—		—		—
Options to purchase common stock	—		51,180		—		—
Unvested restricted stock units	—		140,751		—		—
Weighted average common shares outstanding - diluted	3,700,615		3,113,189		3,604,220		2,911,801
Net (loss) income per common share, basic	$	(0.16)	$	0.03	$	(0.38)	$	(0.01)
Net (loss) income per common share, diluted	$	(0.16)	$	0.03	$	(0.38)	$	(0.01)

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):

	Three Months Ended June 30,		Six Months Ended June 30,
	2024	2023	2024	2023
Class B Common Stock	10,868	11,278	10,868	11,278
Warrants to purchase common stock	—	—	—	3,218
Options to purchase common stock	360	312	364	307
Unvested restricted stock units	392	432	464	485
Total excludable from net loss per share attributable to common stockholders - diluted	11,620	12,022	11,696	15,288