Direct Digital Holdings Files 2023 10-K
Ticker: DRCT · Form: 10-K · Filed: Oct 15, 2024 · CIK: 1880613
Sentiment: neutral
Topics: 10-K, financials, advertising
TL;DR
DDHD filed its 2023 10-K. Shows financials for the year ending 12/31/23.
AI Summary
Direct Digital Holdings, Inc. filed its 10-K for the fiscal year ending December 31, 2023. The company, operating in the advertising services sector, reported financial data including figures like $347,877,600 and $2,900,000. The filing also references specific dates such as April 1, 2023, and June 30, 2023, indicating periods relevant to their financial reporting and potential restatements.
Why It Matters
This 10-K filing provides a comprehensive overview of Direct Digital Holdings' financial performance and operational status for the fiscal year 2023, crucial for investors and stakeholders to assess the company's health and future prospects.
Risk Assessment
Risk Level: medium — The filing contains financial data and references to restatements, suggesting potential complexities or past accounting issues that warrant careful review.
Key Numbers
- $347.88M — Revenue/Financial Metric (Key financial figure from the 2023 fiscal year.)
- $2.90M — Revenue/Financial Metric (Another significant financial figure from the 2023 fiscal year.)
- 2023-12-31 — Fiscal Year End (Defines the period covered by the 10-K filing.)
Key Players & Entities
- Direct Digital Holdings, Inc. (company) — Filer of the 10-K
- 2023-12-31 (date) — Fiscal year end
- $347,877,600 (dollar_amount) — Financial figure reported
- $2,900,000 (dollar_amount) — Financial figure reported
- 2023-04-01 (date) — Reporting period start date
- 2023-06-30 (date) — Reporting period end date
FAQ
What is the total revenue for Direct Digital Holdings, Inc. for the fiscal year ended December 31, 2023?
The filing indicates financial figures such as $347,877,600 and $2,900,000, which likely represent components of revenue or other key financial metrics for the fiscal year ending December 31, 2023.
Are there any restatements mentioned in the filing for the fiscal year 2023?
Yes, the filing references 'srt:RestatementAdjustmentMember' for the period of January 1, 2023, to March 31, 2023, indicating potential restatements.
What is the primary business of Direct Digital Holdings, Inc. according to the filing?
Direct Digital Holdings, Inc. is classified under the Standard Industrial Classification code 7310, which corresponds to SERVICES-ADVERTISING.
What are the business and mailing addresses for Direct Digital Holdings, Inc.?
The business and mailing addresses are both listed as 1177 WEST LOOP SOUTH, SUITE 1310, HOUSTON, TX 77027.
What specific stock classes are mentioned in relation to the reporting periods?
The filing mentions 'us-gaap:CommonClassAMember' and 'us-gaap:CommonClassBMember' in relation to common stock for various reporting periods within 2022 and 2023.
Filing Stats: 4,381 words · 18 min read · ~15 pages · Grade level 15.1 · Accepted 2024-10-15 16:38:57
Key Financial Figures
- $0.001 — ered: Class A Common Stock, par value $0.001 per share DRCT Nasdaq Capital Marke
- $0.01 — ases, pay the second highest price plus $0.01 and in a few cases pay the highest pric
- $100 billion — end of 2027, when it will reach nearly $100 billion. CTV will account for all of the growth
- $5.5 billion — th, with spend expecting to increase by $5.5 billion year over year in 2024 to $42.4 billion
- $42.4 billion — $5.5 billion year over year in 2024 to $42.4 billion by end of 2027. The increase in video
Filing Documents
- tmb-20231231x10k.htm (10-K) — 6446KB
- tmb-20231231xex4d2.htm (EX-4.2) — 21KB
- tmb-20231231xex10d11.htm (EX-10.11) — 96KB
- tmb-20231231xex21d1.htm (EX-21.1) — 4KB
- tmb-20231231xex23d1.htm (EX-23.1) — 3KB
- tmb-20231231xex23d2.htm (EX-23.2) — 2KB
- tmb-20231231xex31d1.htm (EX-31.1) — 14KB
- tmb-20231231xex31d2.htm (EX-31.2) — 15KB
- tmb-20231231xex32d1.htm (EX-32.1) — 7KB
- tmb-20231231xex32d2.htm (EX-32.2) — 7KB
- tmb-20231231xex97.htm (EX-97) — 13KB
- tmb-20231231x10k005.jpg (GRAPHIC) — 61KB
- 0001558370-24-013317.txt ( ) — 28813KB
- tmb-20231231.xsd (EX-101.SCH) — 104KB
- tmb-20231231_cal.xml (EX-101.CAL) — 89KB
- tmb-20231231_def.xml (EX-101.DEF) — 499KB
- tmb-20231231_lab.xml (EX-101.LAB) — 781KB
- tmb-20231231_pre.xml (EX-101.PRE) — 764KB
- tmb-20231231x10k_htm.xml (XML) — 8122KB
Business
Business 5 ITEM 1A.
Risk Factors
Risk Factors 14 ITEM 1B. Unresolved Staff Comments 40 ITEM 1C. Cybersecurity 40 ITEM 2.
Properties
Properties 41 ITEM 3.
Legal Proceedings
Legal Proceedings 41 ITEM 4. Mine Safety Disclosures 41 PART II. ITEM 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 42 ITEM 6. [Reserved] 43 ITEM 7.
Management's Discussion and Analysis of Financial Condition and Results of Operations
Management's Discussion and Analysis of Financial Condition and Results of Operations 44 ITEM 7A.
Quantitative and Qualitative Disclosures About Market Risk
Quantitative and Qualitative Disclosures About Market Risk 64 ITEM 8. Consolidated Financial Statements and Supplementary Data 65 ITEM 9. Changes in and Disagreement with Accountants on Accounting and Financial Disclosure 115 ITEM 9A.
Controls and Procedures
Controls and Procedures 115 ITEM 9B. Other Information 117 ITEM 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 117 PART III. ITEM 10. Directors, Executive Officers and Corporate Governance 118 ITEM 11.
Executive Compensation
Executive Compensation 122 ITEM 12.
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 130 ITEM 13. Certain Relationships and Related Person Transactions, and Director Independence 132 ITEM 14. Principal Accountant Fees and Services 137 PART IV. ITEM 15. Exhibits and Financial Statement Schedules 138 ITEM 16. Form 10-K Summary 143 EXHIBIT INDEX 139
SIGNATURES
SIGNATURES 144 Table of Contents CERTAIN DEFINITIONS Unless the context requires otherwise, references in this Annual Report on Form 10-K to: the "Company," "Direct Digital," "Direct Digital Holdings," "DDH," "we," "us" and "our" refer to Direct Digital Holdings, Inc., and, unless otherwise stated, all of its subsidiaries, including Direct Digital Holdings, LLC, which we refer to as "DDH LLC," and, unless otherwise stated, its subsidiaries. "Colossus Media" refers to Colossus Media, LLC, the sell-side marketing platform of our business acquired by the Company in 2018, operating under the trademarked banner of Colossus SSP. "DDH LLC" refers to Direct Digital Holdings LLC, a Texas limited liability company jointly owned by the Company and DDM. "DDM" refers to Direct Digital Management, LLC, a Delaware limited liability company indirectly owned by Mark Walker, our Chairman and Chief Executive Officer, and Keith Smith, our President, which entity owns LLC Units (as defined below) and which also holds noneconomic shares of Class B Common Stock. DDM may exchange or redeem its LLC Units for shares of our Class A Common Stock as described in Item 13 " Certain Relationships and Related Person Transactions, and Director Independence," together with a cancellation of the same number of its shares of Class B Common Stock. "Huddled Masses " refers to Huddled Masses, LLC, a buy-side advertising and marketing service provider acquired by the Company in 2018. "LLC Units" refers to (i) economic nonvoting units in DDH LLC held by us and DDM and (ii) noneconomic voting units in DDH LLC, 100% of which are held by us. "Orange 142 " refers to Orange142, LLC, a buy-side advertising and marketing service provider acquired by the Company in 2020. "Tax Receivable Agreement" refers to the tax receivable agreement by and among Direct Digital Holdings, DDH LLC and DDM. See Item 13 " Certain Relationships and Related Person Transactions, and Director Independence " for additional
Business
ITEM 1. Business Company Overview We are an end-to-end, full-service advertising and marketing platform primarily focused on providing advertising technology, data-driven campaign optimization and other solutions to help brands, agencies, middle market businesses deliver successful marketing results that drive return on investment ("ROI") across both the sell- and buy-side of the digital advertising ecosystem. Direct Digital Holdings, Inc., incorporated as a Delaware corporation on August 23, 2021, is the holding company for DDH LLC, the business formed by our founders in 2018 through the acquisitions of Colossus Media and Huddled Masses. Colossus Media operates our proprietary sell-side programmatic platform ("SSP") operating under the trademarked banner of Colossus SSP, which provides advertisers of all sizes a programmatic advertising platform that automates the sale of ad inventory between advertisers and agencies leveraging proprietary technology. Our platform offers extensive reach within both general market and multicultural media partners to help Fortune 500 brands and agencies scale to reach highly sought after audiences and helps publishers find the right brands for their readers, as well as drive advertising yields across all channels: web, mobile, and connected TV ("CTV"). Both buy-side advertising businesses, Orange 142 and Huddled Masses, provide technology-enabled advertising solutions and consulting services to clients through multiple leading demand side platforms ("DSPs"), across multiple industry verticals such as travel, education, healthcare, financial services, consumer products and other sectors with particular emphasis on small and mid-sized businesses transitioning into digital with growing digital media budgets. In February 2022, we completed our initial public offering and certain organizational transactions which resulted in our current structure. In the digital advertising space, buyers, particularly small and mid-sized businesses,