Direct Digital Holdings Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Income Per Share

Income Per Share

9 Months Ended

Sep. 30, 2023

Note 11 — Income Per Share

The Company has two classes of common stock, Class A and Class B. Basic and diluted earnings per share (“EPS”) attributable to common stockholders for Class A and Class B common stock were the same because they were entitled to the same liquidation and dividend rights. The following table sets forth the computation of the Company’s basic and diluted income per share:


	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
Net income	$	3,350,854	$	810,783	$	3,211,876	$	2,753,523

Weighted average common shares outstanding - basic		14,268,168		14,178,000		14,216,211		11,846,601
Options to purchase common stock		32,033		—		74,595		—
Unvested restricted stock units		526,964		367,241		526,964		150,368
Weighted average common shares outstanding - diluted		14,827,165		14,545,241		14,817,770		11,996,969
Net income per common share, basic	$	0.23	$	0.06	$	0.23	$	0.23
Net income per common share, diluted	$	0.23	$	0.06	$	0.22	$	0.23

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


	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
Warrants to purchase common stock		3,217,800		3,220,000		3,217,800		3,220,000
Options to purchase common stock		142,650		261,600		139,950		261,600
Total excludable from net income per share attributable to common stockholders - diluted		3,360,450		3,481,600		3,357,750		3,481,600