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]

Revenue Growth - Total revenue increased by $24.3 million, or 17%, from $140.8 million in Q1 2024 to $165.1 million in Q1 2025[109] - Total advertiser revenue increased by $20.0 million, or 16%, driven by a 22% increase in Media Transactions Measured, despite a 6% decline in Measured Transaction Fees[110] - Activation revenue rose by $15.9 million, or 20%, primarily due to new customers activating core programmatic solutions[111] - Measurement revenue increased by $4.2 million, or 8%, driven by new customers activating open web and CTV solutions[112] - Supply-side revenue grew by $4.3 million, or 35%, due to increased revenue from existing and new platform customers[112] Expenses - Cost of revenue increased by $4.3 million, or 16%, primarily due to growth in Activation revenue and investments in cloud services[113] - Product development expenses rose by $8.3 million, or 23%, mainly due to increased personnel costs and third-party software costs[114] - General and administrative expenses increased by $4.5 million, or 20%, primarily due to higher personnel costs and professional fees related to the acquisition of Rockerbox[116] Net Income and Tax - Net income decreased by $4.8 million, or 67%, from $7.2 million in Q1 2024 to $2.4 million in Q1 2025[106] - Income tax expense increased by $5.4 million, or 303%, from $1.8 million in Q1 2024 to $7.2 million in Q1 2025[106] - Income tax expense increased by $5.4 million from $1.8 million in Q1 2024 to $7.2 million in Q1 2025, primarily due to unfavorable permanent tax adjustments[120] EBITDA - Adjusted EBITDA for Q1 2025 was $44.7 million, up from $38.1 million in Q1 2024, maintaining an Adjusted EBITDA margin of 27%[122] - Net income for Q1 2025 was $2.4 million, with a net income margin of 1%, compared to $7.2 million and a 5% margin in Q1 2024[122] Cash Flow - Cash provided by operating activities increased to $37.7 million in Q1 2025 from $31.8 million in Q1 2024[140][141] - Cash used in investing activities rose significantly to $89.9 million in Q1 2025, primarily due to the acquisition of Rockerbox for $82.6 million[142] - Cash used in financing activities was $85.8 million in Q1 2025, mainly for share repurchases totaling $82.2 million[143] Financial Position - As of March 31, 2025, the company had cash and cash equivalents of $156.4 million and net working capital of $151.9 million[125] - The company repurchased a total of 5.2 million shares for $82.2 million during Q1 2025, with $140.0 million remaining authorized for repurchase under the New Repurchase Program[137] - The company entered into a New Revolving Credit Facility with available borrowings of $200.0 million, which matures on the Revolving Termination Date[130] - The company believes existing cash and cash generated from operations, along with the undrawn balance under the New Revolving Credit Facility, will be sufficient to meet future working capital requirements[128] Legal Proceedings - The company is not currently involved in any legal proceedings that would materially affect its business or financial condition[151] - Legal proceedings may arise in the normal course of business, but outcomes are unpredictable[151] - Potential adverse impacts on business or financial condition from legal proceedings are acknowledged[151]

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 ...

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.    PLEAS ...

Core Viewpoint - The Schall Law Firm is investigating claims against DoubleVerify Holdings, Inc. for potential violations of securities laws following disappointing Q4 earnings and a continued trend of deceleration in growth projections [1][2]. Group 1: Company Performance - DoubleVerify reported disappointing Q4 earnings on February 28, 2025, which contributed to a decline in investor confidence [2]. - The company's fiscal year 2025 projection indicates a growth rate of only 10%, continuing a multiyear deceleration trend [2]. - Following the earnings report, shares of DoubleVerify reached an all-time low on the same day [2]. Group 2: Legal Investigation - The investigation by the Schall Law Firm focuses on whether DoubleVerify issued false or misleading statements or failed to disclose important information to investors [2]. - The firm is encouraging shareholders who suffered losses to participate in the investigation [2].

Shares of advertising technology (adtech) company DoubleVerify (DV -36.03%) sank on Friday after the company reported financial results for the fourth quarter of 2024. As of 3:40 p.m. ET, DoubleVerify stock was down 38% and had hit an all-time low during the trading session.DoubleVerify's financial results didn't satisfy investorsDoubleVerify uses analytics to help advertisers know whether their spending is accomplishing what it's supposed to. During 2024, the company's revenue was up 15% year over year, a ...

Financial Data and Key Metrics Changes - Total revenue for 2024 grew by 15% year-over-year to $657 million, driven by double-digit growth across all three revenue lines [6][49] - Adjusted EBITDA margin was 33% for the full year, with $160 million in net cash from operating activities, up 33% from the previous year [10][57] - Q4 2024 total revenue was $191 million, an 11% increase, with activation revenue growing by 10%, measurement by 7%, and supply side by 34% [46][49] - Net income for 2024 was $56 million, representing a 9% margin, down from a 12% margin in 2023 due to slower revenue growth and higher stock-based compensation [58] Business Line Data and Key Metrics Changes - Activation revenue grew by 13% for the full year, while measurement revenue also increased by 15% [49] - Social measurement revenue grew by 27% for the full year, although growth slowed to 9% in Q4 due to reduced spending from large brand advertisers [49][48] - Supply side revenue grew by 25% year-over-year, driven by increased demand from retail media platforms [9][49] Market Data and Key Metrics Changes - The company measured 8.3 trillion billable media transactions, a 19% increase year-over-year [7][51] - Social media measurement revenue accounted for 48% of total measurement revenue in 2024, up from 43% in 2023 [51] - CTV measurement impression volumes grew by 66% for the full year and 95% in Q4 alone, increasing its share of total measurement impression volume to 11% [37][38] Company Strategy and Development Direction - The company aims to unify media quality, optimization, and performance measurement into a single platform to maximize ad effectiveness [17] - Strategic acquisitions, including Rockerbox, are intended to enhance performance measurement capabilities and expand into mid-market customers [19][62] - The company is focusing on diversifying revenue streams and expanding its customer base, with a goal to increase the number of customers generating over $200,000 in revenue [15][42] Management Comments on Operating Environment and Future Outlook - Management acknowledged challenges in Q4 due to reduced ad spending from large customers and a shift in ad dollars to proprietary platforms [11][12] - Despite these challenges, management remains confident in the long-term growth prospects, citing strategic investments and a strong customer pipeline [16][104] - The company expects 2025 to be a transition year, with revenue growth projected at approximately 10% and adjusted EBITDA margins of 32% [63][66] Other Important Information - The company ended 2024 with $311 million in cash and short-term investments and zero long-term debt [61] - Stock-based compensation expenses are expected to stabilize in the high teens, with $200 million remaining available for share repurchases in 2025 [59][67] - The acquisition of Rockerbox is expected to contribute approximately $8 million to total revenue in 2025 [62] Q&A Session Summary Question: Can you elaborate on the strategic rationale for the Rockerbox acquisition? - The acquisition is aimed at enhancing the customer value proposition by integrating performance measurement with existing solutions, creating a competitive differentiator [71][73] Question: How do you see the ramp-up of new products like Scibids and social solutions throughout 2025? - Management believes that while there are headwinds in 2025, the long-term opportunities from new product launches will be significant, with expectations for growth in 2026 [80][82] Question: What is the company's view on the impact of AI on the advertising ecosystem? - The company is heavily investing in AI to enhance its core value proposition, leveraging AI for measurement and optimization solutions [88][90] Question: Can you provide insights on the advertiser that impacted Q4 results? - The reduction in spend was specific to a CPG customer facing rising commodity costs, and management does not expect similar impacts from other clients in the same vertical [113][115] Question: How do you expect margins to evolve throughout 2025? - Margins are expected to grow as the year progresses, with historical patterns indicating higher margins in the latter half of the year [95][96]