Antoinette Renee Leatherberry, a director at Direct Digital Holdings, Inc. (NASDAQ:DRCT), recently sold 7,038 shares of the company's Class A common stock. The transaction, which took place on December 18, 2024, was executed at a price of $0.85 per share, totaling approximately $5,982. The sale comes as DRCT shares trade near their 52-week low of $0.58, having declined over 96% year-to-date. Following this sale, Leatherberry retains ownership of 55,812 shares in the company. According to the filing, the shares were sold to cover tax liabilities related to a previous grant of 24,615 shares. With a current market capitalization of just $2.22 million and a WEAK financial health score according to InvestingPro, investors seeking deeper insights can access comprehensive analysis and 19 additional ProTips through InvestingPro's detailed research reports.
In other recent news, Direct Digital Holdings has been navigating through notable financial developments. The company disclosed the unregistered sale of 220,000 shares of its Class A common stock, representing more than five percent of the total shares issued. This transaction, totaling $241,095.80, was conducted under a Share Purchase Agreement with New Circle Principle Investments LLC.
Additionally, the company's top executives, CEO Mark Walker and President Keith Smith, voluntarily rescinded their restricted stock units (RSUs) that were awarded in March 2023. This included a cliff-vesting RSU award related to 40,000 shares and a 3-year vesting RSU award related to 9,970 shares per executive.
The company also reported a significant year-over-year revenue drop of 85% in the third quarter of 2024, from $59.5 million to $9.1 million. Despite this, Direct Digital Holdings outlined a recovery strategy which includes a diversification and optimization plan.
Looking ahead, the company provided revised revenue guidance for fiscal years 2024 and 2025, projecting $60 million to $70 million for FY 2024 and $90 million to $110 million for FY 2025. To support this, Direct Digital Holdings secured a $20 million equity reserve facility with New Circle Principal Investments. These are part of the company's recent efforts to navigate its financial challenges.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.