Group 1 - A class action has been filed against DoubleVerify Holdings, Inc. for allegedly misleading investors about its business prospects during the period from November 10, 2023, to February 27, 2025 [1][2] - The complaint outlines several key allegations, including that DoubleVerify's customers were shifting ad spending to closed platforms, which limited the company's technological capabilities and increased competition from platforms like Meta and Amazon [2] - It is claimed that DoubleVerify's Activation Services faced significant monetization challenges due to high development costs and that competitors were better positioned to leverage AI, adversely affecting DoubleVerify's profitability [2] Group 2 - The truth about DoubleVerify's business challenges was revealed on February 27, 2025, when the company reported lower-than-expected sales and earnings, leading to a significant stock price drop of $7.83 per share, or 36%, from $21.73 to $13.90 [3] - The decline in stock price was attributed to reduced customer spending and the suspension of services by a major client, alongside the negative impact of ad dollar shifts from open exchanges to closed platforms [3] Group 3 - Shareholders interested in participating in the class action must file their papers by July 15, 2025, to serve as lead plaintiff, representing other class members in the litigation [4] - Participation in the case is not required to be eligible for recovery, allowing shareholders to remain absent class members if they choose [4]

Summary of Double Verify Conference Call Company Overview - **Company**: Double Verify - **Industry**: Digital Advertising Verification Key Points and Arguments 1. **Business Model**: Double Verify operates as an ad platform that ensures advertisers' digital media spend is viewable, brand safe, geographically aligned, and free from fraud. The company positions itself as an independent arbiter of digital media quality [4][5][6]. 2. **Q1 Performance**: The company reported a 17% revenue growth in Q1, a significant improvement from the previous year's growth rates of 10-15%. This growth was attributed to strong customer adoption of new solutions and scaling of existing customers [5][7][8]. 3. **Customer Adoption**: Notable new customers include KenView and Microsoft, with existing customers like Lilly and Novartis increasing their spending. The company emphasized the importance of upselling premium solutions to current customers [8][15][49]. 4. **Social Media Activation**: The launch of activation solutions on Meta in February has gained traction, with 20 new customers acquired, including major brands. The potential revenue from these new solutions is estimated to be between $40 million to $100 million over the next couple of years [10][11][12]. 5. **Market Diversification**: The company has a diversified revenue stream, with only 6% of total revenue coming from the auto industry, which is expected to be impacted by economic downturns. This diversification helps mitigate risks associated with specific sectors [24][25][49]. 6. **Advertising Spend Resilience**: Advertisers have become more performance-oriented and agile, learning from past economic shocks. This has led to a more resilient advertising spend, with less immediate reaction to market volatility [25][29]. 7. **Performance Solutions**: The company is evolving from a verification specialist to a performance and analytics provider. This includes the introduction of tools like SciBids AI and RockerBox, which help advertisers optimize their media spend and measure performance effectively [34][56]. 8. **Data Measurement**: Double Verify measures a vast amount of digital ad transactions, amounting to $8.3 trillion last year. This data is used to assess media quality and performance, providing valuable insights for advertisers [59][60]. 9. **Future Growth Potential**: The company anticipates significant growth in its social business and performance metrics, with projections of reaching $100 million in revenue from SciBids by 2028. The total addressable market (TAM) is expected to expand into billions due to these developments [66][67]. 10. **Competitive Differentiation**: Double Verify's competitive edge lies in its scale, breadth of offerings, and the ability to provide integrated solutions that enhance advertising performance. The company has established itself as a leader in the digital advertising verification space [70][71]. Other Important Content - **AI Utilization**: The company is leveraging AI to combat challenges posed by AI-generated content and fraud, while also improving operational efficiencies [73][74]. - **Innovation Day**: The upcoming innovation day is expected to highlight the company's long-term vision of becoming an essential performance platform for advertisers, along with financial insights [75][76].

DoubleVerify (DV) FY Conference Summary Company Overview - **Company**: DoubleVerify (DV) - **Industry**: Ad Tech - **Conference Date**: May 13, 2025 Key Points Company and Product Overview - DoubleVerify is an ad tech platform focused on ensuring ad spend is effective, viewable, fraud-free, and contextually suitable for advertisers [4][13] - The company has expanded its offerings from media quality to include cost optimization through its SciBids AI tool and attribution via the acquisition of RockerBox [4][18] Growth Drivers - The primary growth drivers for 2025 and beyond include replicating success in the open web within walled gardens like TikTok and Meta [6][18] - The company is transitioning from a focus on protection to performance, helping advertisers achieve better results at lower costs [18][21] Market Position and Valuation - DoubleVerify's market valuation has decreased from $6 billion to $2 billion, indicating a significant compression in valuation multiples [11] - The company believes the market is underestimating its potential, particularly in social media and performance advertising [12][18] Product Bundling Strategy - The bundling of pre-bid and post-bid products has created a more comprehensive offering, increasing the average cost per ad unit from 8¢ to 22¢ [9][40] - The integration of SciBids and RockerBox allows for a unique value proposition, combining verification and performance metrics [64][93] Competitive Landscape - DoubleVerify sees itself as a unique player in the market due to its extensive dataset and ability to provide independent verification across platforms [126][127] - The company competes with both traditional verification companies and platforms that offer point solutions [125][130] Acquisitions and Innovation - Recent acquisitions, including SciBids for $125 million and RockerBox for $85 million, are aimed at enhancing product offerings and expanding market reach [90][91] - The company emphasizes a strategy of acquiring complementary technologies rather than solely relying on internal development [43][92] Future Product Developments - A new product rollout for CTV (Connected Television) is expected in 2025, which will include a media quality score to enhance pricing power [72][88] - The company is focused on creating a seamless solution that integrates verification, optimization, and attribution [97][121] Financial Performance and Efficiency - DoubleVerify has maintained a gross margin of over 80% and is leveraging AI to improve operational efficiency [133] - The company is experiencing growth in customer spending, with top customers increasing their spend by 14% in Q1 [66] Market Expansion - The company is not limited to the U.S. market; it aims to expand its reach globally, particularly in regions where social media advertising is prominent [101][104] Conclusion - DoubleVerify is positioned to capitalize on the growing demand for integrated ad solutions that combine verification and performance metrics, with a strong focus on innovation and market expansion [92][134]

Core Insights - DoubleVerify Holdings (DV) reported revenue of $165.06 million for the quarter ended March 2025, reflecting a year-over-year increase of 17.3% [1] - The earnings per share (EPS) for the quarter was $0.01, down from $0.04 in the same quarter last year, indicating a decline [1] - The reported revenue exceeded the Zacks Consensus Estimate of $152.96 million by 7.91%, while the EPS fell short of the consensus estimate of $0.02 by 50% [1] Revenue Breakdown - Revenue from Measurement customers was $53.43 million, slightly above the estimated $52.86 million, marking an 8.4% increase year-over-year [4] - Revenue from Supply-side customers reached $16.46 million, surpassing the estimated $15.16 million, representing a significant 35.1% increase compared to the previous year [4] - Revenue from Activation services was $95.17 million, exceeding the average estimate of $84.89 million, with a year-over-year growth of 20% [4] Stock Performance - Over the past month, DoubleVerify's shares have returned +1.3%, underperforming the Zacks S&P 500 composite, which saw a +11.3% change [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

DoubleVerify Holdings (DV) came out with quarterly earnings of $0.01 per share, missing the Zacks Consensus Estimate of $0.02 per share. This compares to earnings of $0.04 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -50%. A quarter ago, it was expected that this software platform for digital media measurement and analytics would post earnings of $0.18 per share when it actually produced earnings of $0.13, delivering a surp ...

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $165 million, representing a 17% year-over-year increase, exceeding expectations across all revenue lines [8][23] - Adjusted EBITDA margin was 27%, with net cash from operating activities growing by 19%, indicating strong operational efficiency [8][26] - Advertiser business grew by 16%, driven by a 20% increase in activation revenue, while supply side business saw a 35% year-over-year growth [8][24] Business Line Data and Key Metrics Changes - Activation revenue increased by 20% year-over-year, with Authentic Brand Suitability (ABS) accounting for 54% of activation revenue and growing by 16% [24] - Measurement revenue grew by 8%, supported by new customer activations on the open web and stable growth from existing customers [24][25] - Supply side revenue surged by 35%, driven by increased revenue from both existing and new platform and publisher customers [25] Market Data and Key Metrics Changes - Social media measurement and activation solutions are gaining traction, with a robust sales pipeline for Meta's activation solution and significant early results from early adopters [10][11] - CTV measurement volumes grew by nearly 43% year-over-year, with DV's filtering rate for CTV jumping 55% year-over-year [12][14] - Retail media supply side revenue grew by 35% year-over-year, indicating strong demand in this segment [18] Company Strategy and Development Direction - The company aims to build a unified platform that enables advertisers to verify, optimize, and measure media outcomes, driving broader customer adoption and deeper partner engagement [7][20] - The strategic acquisition of RockerBox is expected to enhance customer engagement and expand offerings, unlocking greater growth opportunities [10][19] - The focus remains on driving volume through multi-product adoption and upselling opportunities across the platform [23] Management's Comments on Operating Environment and Future Outlook - Management noted that business momentum remained steady through April, with no evidence of macroeconomic pressure affecting customer demand [7] - The company is confident in its long-term strategy to drive durable diversified growth, despite leaving full-year guidance unchanged due to macro uncertainty [29][30] - Management emphasized the importance of performance-driven solutions in the current economic environment, which positions the company well for resilience [33][84] Other Important Information - The company repurchased 5.2 million shares for $82 million during the quarter and ended with approximately $175 million in cash and short-term investments, maintaining zero debt [27] - The company expects second-quarter revenue to range between $169 million and $173 million, representing a 10% year-over-year growth at the midpoint [28] Q&A Session Summary Question: What contributed to revenue outperformance in the quarter? - Management indicated that new client growth and strong adoption of additional solutions from existing customers were key drivers of revenue outperformance [40][41] Question: Thoughts on expanding into direct response budgets? - Management noted the convergence of brand and performance objectives, highlighting the importance of tools like CyBids and RockerBox in driving performance [42][44] Question: Impact of customer slowing spend on social growth? - Management acknowledged a significant customer that paused spending but expressed confidence in the growth potential of social activation solutions [50][61] Question: How does increased competition in the DSP space affect DoubleVerify? - Management stated that they are widely distributed across DSPs and that pricing remains consistent, indicating limited impact from DSP competition [86][88] Question: Predictions for CTV market expansion? - Management noted that as creative tools for CTV become more accessible, the addressable market is expanding, allowing for greater customer access [92]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $165 million, representing a 17% year-over-year increase, exceeding expectations across all revenue lines [6][22] - Adjusted EBITDA margin was 27%, with net cash from operating activities growing by 19%, indicating strong operational efficiency [6][26] - Advertiser business grew by 16%, driven by a 20% increase in activation revenue, while supply side business saw a 35% year-over-year growth [6][24] Business Line Data and Key Metrics Changes - Activation revenue increased by 20% year-over-year, with Authentic Brand Suitability (ABS) accounting for 54% of activation revenue and growing by 16% [23] - Measurement revenue grew by 8%, supported by new customer activations and stable growth from existing customers [23] - Supply side revenue grew by 35%, driven by increased revenue from both existing and new platform and publisher customers [24][17] Market Data and Key Metrics Changes - Social media measurement volumes grew significantly, with a robust sales pipeline for Meta's activation solution, activating 20 customers shortly after launch [10][11] - CTV measurement volumes increased by nearly 43% year-over-year, with significant growth noted across platforms like YouTube CTV and Netflix [11][12] - Retail media supply side revenue grew by 35% year-over-year, reflecting strong demand across retail media networks [17] Company Strategy and Development Direction - The company aims to build a unified platform for advertisers to verify, optimize, and measure media outcomes, enhancing customer adoption and engagement [5][18] - The strategic acquisition of RockerBox is expected to unlock greater opportunities for customer engagement and performance measurement [9][18] - The focus remains on innovation and operational efficiency, leveraging AI to enhance product offerings and drive growth [17][19] Management's Comments on Operating Environment and Future Outlook - Management noted no evidence of macroeconomic pressure affecting customer demand, with strong growth reflecting increasing demand for DV solutions [5][34] - The company remains cautious about macroeconomic uncertainties, maintaining a full-year guidance of 10% revenue growth and 32% adjusted EBITDA margins [28][76] - Management emphasized the importance of performance-driven solutions in navigating potential economic challenges [34][77] Other Important Information - The company repurchased 5.2 million shares for $82 million, ending the quarter with approximately $175 million in cash and short-term investments, maintaining zero debt [26] - The company is focused on expanding its global retail media footprint, with measurement tags accepted across 129 key retail media networks [16] Q&A Session Summary Question: Thoughts on macro uncertainty and resilience - Management highlighted that advertisers have become more agile in response to macro uncertainties, focusing on performance and brand protection [33][34] Question: Revenue outperformance drivers - Key drivers included accelerated scaling from new clients and strong adoption of additional solutions by existing customers [39][40] Question: Direct response budgets and performance solutions - The convergence of brand and performance objectives is creating opportunities for the company to enhance its offerings in direct response advertising [41][42] Question: Social measurement growth and guidance - Management expects social growth to be stronger in activation than in measurement, with new solutions launching on platforms like Meta and TikTok [48][49] Question: International revenue weakness - Management attributed the slowdown to a large customer pulling back spend but remains optimistic about future growth in international markets [56] Question: Impact of increased competition in DSP space - The company remains indifferent to DSP competition as its solutions are widely distributed across all major DSPs, maintaining consistent pricing [80][81] Question: CTV market expansion - The addressable market for CTV is expanding as more middle-market advertisers consider CTV, driven by easier access to creative tools and self-serve buying platforms [86]

Q1 2025 Financial Performance - Total revenue reached $165 million, a 17% year-over-year growth[66, 94] - Adjusted EBITDA was $45 million, representing a 27% margin[66, 97] - Net cash from operating activities amounted to $38 million, a 19% year-over-year increase[66, 95] Growth Drivers - Advertiser supply-side revenue grew by 35% year-over-year, reaching $16 million[67] - Advertiser revenue increased by 16% year-over-year, totaling $149 million[67] - Non-ABS (Authentic Brand Suitability) revenue grew by 24%, while ABS revenue grew by 16%[81, 106] - Activation revenue increased by 20% year-over-year, driven by non-social and social factors[100, 108] - Measurement revenue increased by 8% year-over-year, with social revenue growing by 15%[100, 108] - CTV measurement impression volumes grew by 43% in Q1 2025[78] Customer Base and Retention - The number of customers generating over $200,000 annually increased by 14% year-over-year[55, 69] - Gross Revenue Retention Rate (GRR) exceeded 95%[55] - Net Revenue Retention was 112% in FY 2024[33, 126] Market Opportunity and Expansion - Approximately 50% of the top 700 customers are using less than 50% of DoubleVerify's products, indicating a cross-sell opportunity[71, 118, 120] - Retail Media supply-side revenue grew by 34% in Q1 2025[85] - The company measures 83 retail media platforms in Q1'24 and 129 in Q1'25[83] Future Outlook - Q2 2025 revenue is projected to be between $169 million and $173 million, representing a 10% year-over-year growth at the midpoint[115] - Q2 2025 Adjusted EBITDA margin is expected to be 29% at the midpoint[115] - FY 2025 revenue is expected to grow by approximately 10%, with an Adjusted EBITDA margin of 32%[115]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-40349 DoubleVerify Holdings, Inc. (Exact name of registrant as specified in its charter) (State or other juri ...

PLEASE CLICK HERE TO PROVIDE YOUR CONTACT INFORMATION NEW YORK, March 13, 2025 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP ("Wolf Haldenstein"), a preeminent national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of DoubleVerify Holdings Inc.. (NYSE:DV) ("DoubleVerify" or the "Company"). The investigation concerns whether DoubleVerify Holdings Inc. and certain of its officers and/or directors have engaged in securities fraud.    PLEASE ...