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%, with $160 million in net cash from operating activities, up 33% from the previous year [10][56] - 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] - Supply side revenue grew by 25% year-over-year, driven by demand from retail media platforms [9][49] - Social measurement revenue grew by 27% for the full year, although growth slowed to 9% in Q4 due to reduced spending from large advertisers [49][51] 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 and Scibids, are intended to enhance performance measurement and optimization capabilities [19][62] - The company is focusing on expanding its social media measurement and activation solutions, with a goal to capture a larger share of the digital ad spend [26][31] Management's 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 expressed confidence in long-term growth prospects, citing strategic investments and a strong customer base [16][42] - The company anticipates 2025 to be a transition year, with expected revenue growth of 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, with zero long-term debt [61] - The acquisition of Rockerbox is expected to contribute approximately $8 million to total revenue in 2025 [62] - The company repurchased 6.8 million shares for $128 million in 2024, with an additional $200 million authorized for share repurchases in 2025 [59][60] 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][74] Question: How do you see the ramp-up of new products like Scibids and social solutions throughout 2025? - Management expects headwinds to be confined to 2025, with significant long-term opportunities from new product launches and upselling existing clients [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 and improve operational efficiency [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]

Core Insights - DoubleVerify Holdings (DV) reported revenue of $190.6 million for the quarter ended December 2024, reflecting a year-over-year increase of 10.7% but falling short of the Zacks Consensus Estimate by 3.02% [1] - The company's earnings per share (EPS) was $0.13, down from $0.19 in the same quarter last year, resulting in an EPS surprise of -27.78% compared to the consensus estimate of $0.18 [1] Revenue Breakdown - Revenue from Measurement customers was $64.38 million, which is below the six-analyst average estimate of $67.78 million, showing a year-over-year increase of 6.6% [4] - Revenue from Supply-side customers reached $16.73 million, exceeding the six-analyst average estimate of $15.21 million, with a significant year-over-year growth of 34.4% [4] - Revenue from Activation services was $109.52 million, slightly below the estimated $113.25 million, but still representing a year-over-year increase of 10.2% [4] Stock Performance - Over the past month, DoubleVerify shares have returned +5.3%, contrasting with a -2.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance in the near term [3]

Group 1: Earnings Performance - DoubleVerify Holdings (DV) reported quarterly earnings of $0.13 per share, missing the Zacks Consensus Estimate of $0.18 per share, and down from $0.19 per share a year ago [1] - The earnings surprise for this quarter was -27.78%, while the previous quarter saw a positive surprise of 42.86% with actual earnings of $0.10 per share against an expectation of $0.07 [2] - The company posted revenues of $190.6 million for the quarter, missing the Zacks Consensus Estimate by 3.02%, compared to $172.23 million in the same quarter last year [3] Group 2: Stock Performance and Outlook - DoubleVerify shares have increased approximately 12.4% since the beginning of the year, outperforming the S&P 500's gain of 1.3% [4] - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $0.06 for the next quarter and $0.49 for the current fiscal year, with revenues expected at $158.15 million and $742.56 million respectively [5][8] - The Zacks Rank for DoubleVerify is currently 2 (Buy), indicating expectations for the stock to outperform the market in the near future [7] Group 3: Industry Context - The Internet - Software industry, to which DoubleVerify belongs, is currently ranked in the top 33% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [9] - Another company in the same industry, StoneCo Ltd. (STNE), is expected to report quarterly earnings of $0.32 per share, reflecting a year-over-year decline of 11.1% [10]

Financial Performance - In 2024, the company measured approximately 8.3 trillion Media Transactions, an increase from 7.0 trillion in 2023 and 5.5 trillion in 2022[27]. - The company achieved a compounded annual growth rate of 25% in revenue from 2021 to 2024[30]. - The company has a compounded annual growth rate of 24% in average revenue for its top 100 customers from 2021 to 2024[30]. - The company achieved a net revenue retention rate of 112% in 2024, 124% in 2023, and 127% in 2022, driven by increased advertising volume and successful new solution launches[44]. - The company has maintained over 95% gross revenue retention rates across its customer base from 2022 to 2024, retaining 100% of its top 75 customers[44]. - The company’s sales cycle is long and complex, making it difficult to predict revenue generation from new customers[128]. - Future revenue and operating results may fluctuate significantly, impacting stock price and investor expectations[158]. Customer Base and Relationships - The company serves over 2,000 customers, with 110 customers each representing at least $1 million of annual revenue in 2024, up from 93 in 2023[28]. - The average relationship duration with the top 25, 50, and 75 customers is approximately eight years[30]. - The competitive landscape is evolving rapidly, with no single customer accounting for more than 10% of revenue in 2024, indicating a diversified customer base[104]. - Two programmatic partner platforms collected approximately 22% and 14% of the company's total revenue in 2024, indicating a reliance on specific partners for revenue generation[124]. Advertising and Market Trends - Global digital ad spend, excluding search, reached $329 billion in 2024 and is expected to grow to $448 billion by 2028[31]. - Seasonal fluctuations in revenue are expected, with the fourth quarter typically reflecting the highest measurement activity due to increased holiday advertising[83]. - Seasonal fluctuations in advertising activity could negatively impact revenue and cash flow[102]. - The company has experienced significant growth in social media-related revenues, but public criticism and regulatory scrutiny of social media platforms could negatively impact demand for its solutions[138]. Technology and Innovation - The company leverages AI to enhance content classification and deliver cost-effective video classification solutions[37]. - The company employs advanced AI-driven classification technology for content categorization, utilizing machine learning across various content types[72]. - The company acquired Scibids Technology SAS in August 2023, enhancing its AI-powered digital campaign optimization capabilities[52]. - The company’s DV Authentic Attention solution provides comprehensive data for campaign performance, measuring exposure and engagement metrics in real-time[50]. - The company’s technology is integrated with leading digital advertising platforms, facilitating the distribution of its programmatic solutions and enabling comprehensive data analysis[57]. Operational Structure - The company operates in 31 locations across 25 countries, including major markets like the United States, the United Kingdom, and Australia[28]. - The company employs 225 software and data engineers across seven research and development centers focused on product development as of December 31, 2024[43]. - The engineering team consists of 339 employees as of December 31, 2024, focusing on software development and infrastructure operations[66]. - The product team, with 197 employees, collaborates with sales and marketing to define the product roadmap and ensure high-quality technology[67]. - Approximately 42% of the company's 1,197 employees are located outside of the Americas, indicating a global workforce[88]. Risks and Challenges - The company faces significant risks including technological obsolescence, competitive market pressures, and potential system failures that could disrupt operations[99]. - Economic downturns and unstable market conditions could adversely affect the company's financial condition and results of operations[99]. - The company is exposed to risks associated with cybersecurity, including potential breaches that could harm its reputation and financial condition[108]. - The company must continuously upgrade its platform to remain competitive and meet evolving customer needs[103]. - The reliance on third-party service providers for IT systems introduces risks of performance failures that could disrupt operations[111]. - The company is subject to evolving data privacy regulations, which may require significant resources to comply and could lead to legal or regulatory actions if not adhered to[134]. Financial Position and Capital Structure - As of December 31, 2024, the company reported cash, cash equivalents, and short-term investments totaling $310.6 million, an increase from $310.1 million in 2023 and $267.8 million in 2022[333]. - The company has no outstanding variable rate debt as of December 31, 2024, and has $200.0 million available under the New Revolving Credit Facility, which matures in August 2029[333]. - The company may need additional capital in the future to support growth strategies, including acquisitions and technological enhancements[168]. - The company is subject to taxation in multiple jurisdictions, which could increase effective tax rates and cash tax payments in future periods[156]. Corporate Governance and Compliance - Providence VII U.S. Holdings L.P. owns approximately 16% of the outstanding shares, influencing corporate transactions and potentially affecting stock price[182]. - The company does not intend to pay dividends on its common stock for the foreseeable future, relying on future earnings for growth and acquisitions[198]. - Compliance with public company regulations incurs significant costs, impacting operational expenses and management resources[187]. - The company may face challenges in maintaining effective internal controls, which could affect financial reporting and investor confidence[191]. - The existence of anti-takeover provisions may discourage favorable changes in management or control, potentially affecting stockholder interests[192].

[Executive Summary & Key Highlights](index=1&type=section&id=Item%201_ExecutiveSummary) This section provides an overview of DoubleVerify's strong financial performance in Q4 and full-year 2024, alongside key strategic developments including the acquisition of Rockerbox [Fourth Quarter 2024 Highlights](index=1&type=section&id=Item%201.1_Q4_2024_Highlights) DoubleVerify reported strong Q4 2024 results with revenue increasing 11% year-over-year to $190.6 million, driven by significant growth in supply-side revenue (34%) and CTV measurement (95%). The company achieved a record 39% Adjusted EBITDA margin Q4 2024 Key Financial Highlights | Metric | Value | | :-------------------- | :------------ | | Total Revenue | $190.6 million | | Supply-Side Revenue Growth | 34% YoY | | CTV MTM Growth | 95% YoY | | Net Income | $23.4 million | | Adjusted EBITDA | $73.8 million | | Adjusted EBITDA Margin | 39% | [Full Year 2024 Highlights](index=1&type=section&id=Item%201.2_FY_2024_Highlights) For the full year 2024, DoubleVerify achieved 15% revenue growth to $656.8 million, with a 33% Adjusted EBITDA margin. Growth was primarily fueled by global expansion in Social, CTV measurement, and programmatic activation FY 2024 Key Financial Highlights | Metric | Value | | :-------------------- | :------------ | | Total Revenue | $656.8 million | | Total Revenue Growth | 15% YoY | | Net Income | $56.2 million | | Adjusted EBITDA | $218.9 million | | Adjusted EBITDA Margin | 33% | - Growth was driven by global expansion in **Social**, **CTV Measurement**, and **Programmatic Activation**[1](index=1&type=chunk) [Strategic Business Developments](index=1&type=section&id=Item%201.3_StrategicBusinessDevelopments) DoubleVerify announced the acquisition of Rockerbox for $85.0 million in cash, aiming to enhance performance attribution, optimization, and marketing measurement capabilities, and expand into the mid-market direct response advertiser segment. The company also continued its share repurchase program - Agreed to acquire Rockerbox, a leader in performance attribution, optimization, and marketing measurement, for **$85.0 million in cash**[1](index=1&type=chunk)[2](index=2&type=chunk)[13](index=13&type=chunk) - The acquisition of Rockerbox is expected to drive greater ROI for advertisers and expand DV's core value proposition into mid-market, direct response advertisers[2](index=2&type=chunk) - Repurchased **6.8 million shares** for **$128.0 million** in full-year 2024, with **$200.0 million** available under the New Repurchase Program as of February 27, 2025[9](index=9&type=chunk)[11](index=11&type=chunk) [Detailed Financial Performance](index=2&type=section&id=Item%202_DetailedFinancialPerformance) This section details DoubleVerify's revenue and profitability performance for Q4 and full-year 2024, highlighting growth drivers and margin achievements [Revenue Performance](index=2&type=section&id=Item%202.1_RevenuePerformance) DoubleVerify demonstrated robust revenue growth in both Q4 and the full year 2024, driven by strong performance across Activation, Measurement, and Supply-side segments, with significant expansion in CTV and international markets [Fourth Quarter 2024 Revenue](index=2&type=section&id=Item%202.1.1_Q4_2024_Revenue) Q4 2024 total revenue grew 11% to $190.6 million. Activation revenue increased 10%, Measurement revenue grew 7% (with Social up 9% and International up 11%), and Supply-side revenue surged 34%. CTV Media Transactions Measured (MTM) saw a significant 95% increase Q4 2024 Revenue by Customer Type | Revenue Type | Q4 2024 (in thousands) | Q4 2023 (in thousands) | Change ($) | Change (%) | | :-------------------- | :----------------------- | :----------------------- | :--------- | :--------- | | Activation | $109,517 | $99,402 | $10,115 | 10% | | Measurement | $64,379 | $60,387 | $3,992 | 7% | | Supply-side | $16,725 | $12,442 | $4,283 | 34% | | **Total Revenue** | **$190,621** | **$172,231** | **$18,390** | **11%** | - Social measurement revenue increased by **9%** and International measurement revenue increased by **11%** (EMEA 10%, APAC 13%)[4](index=4&type=chunk) - Media Transactions Measured (MTM) for CTV increased by **95%**[4](index=4&type=chunk) [Full Year 2024 Revenue](index=2&type=section&id=Item%202.1.2_FY_2024_Revenue) Full year 2024 total revenue increased 15% to $656.8 million. Activation revenue grew 13%, Measurement revenue increased 15% (with Social up 27% and International up 22%), and Supply-side revenue rose 25%. Total Media Transactions Measured (MTM) increased 19%, while the Measured Transaction Fee (MTF) decreased 4%. Net Revenue Retention (NRR) was 112% FY 2024 Revenue by Customer Type | Revenue Type | FY 2024 (in thousands) | FY 2023 (in thousands) | Change ($) | Change (%) | | :-------------------- | :----------------------- | :----------------------- | :--------- | :--------- | | Activation | $373,101 | $328,936 | $44,165 | 13% | | Measurement | $226,939 | $198,024 | $28,915 | 15% | | Supply-side | $56,809 | $45,583 | $11,226 | 25% | | **Total Revenue** | **$656,849** | **$572,543** | **$84,306** | **15%** | - Media Transactions Measured (MTM) were **8.3 trillion**, an increase of **19%**[4](index=4&type=chunk) - Measured Transaction Fee (MTF) was **$0.072**, a decrease of **4%**, excluding the impact of an introductory fixed fee deal for one large customer[4](index=4&type=chunk) - Net Revenue Retention (NRR) of **112%**[4](index=4&type=chunk) - Social measurement revenue increased by **27%** and International measurement revenue increased by **22%** (EMEA 25%, APAC 18%)[4](index=4&type=chunk) [Profitability (Net Income & Adjusted EBITDA)](index=2&type=section&id=Item%202.2_Profitability) DoubleVerify maintained strong profitability in 2024, achieving a record Adjusted EBITDA margin in Q4 and a consistent margin for the full year, despite a decrease in net income [Fourth Quarter 2024 Profitability](index=2&type=section&id=Item%202.2.1_Q4_2024_Profitability) In Q4 2024, Net Income was $23.4 million (12% margin), and Adjusted EBITDA reached $73.8 million, representing a record 39% Adjusted EBITDA margin, reflecting efficient operations and disciplined growth Q4 2024 Profitability Metrics | Metric | Q4 2024 (in thousands) | Q4 2023 (in thousands) | YoY Change (%) | | :-------------------- | :----------------------- | :----------------------- | :------------- | | Net Income | $23,400 | $33,105 | -29.3% | | Net Income Margin | 12% | 19% | -7 ppts | | Adjusted EBITDA | $73,841 | $65,428 | 12.9% | | Adjusted EBITDA Margin | 39% | 38% | +1 ppt | - The **39% adjusted EBITDA margin** in Q4 reflects the efficiency of the operating model and disciplined approach to growth[11](index=11&type=chunk) [Full Year 2024 Profitability](index=2&type=section&id=Item%202.2.2_FY_2024_Profitability) For the full year 2024, Net Income was $56.2 million (9% margin), and Adjusted EBITDA was $218.9 million, maintaining a 33% Adjusted EBITDA margin FY 2024 Profitability Metrics | Metric | FY 2024 (in thousands) | FY 2023 (in thousands) | YoY Change (%) | | :-------------------- | :----------------------- | :----------------------- | :------------- | | Net Income | $56,231 | $71,466 | -21.3% | | Net Income Margin | 9% | 12% | -3 ppts | | Adjusted EBITDA | $218,898 | $187,064 | 17.0% | | Adjusted EBITDA Margin | 33% | 33% | 0 ppts | [Product & Platform Innovations](index=3&type=section&id=Item%203_ProductPlatformInnovations) This section highlights DoubleVerify's advancements in social media brand safety and suitability, alongside new open web integrations to enhance programmatic media quality [Social Media Innovations](index=3&type=section&id=Item%203.1_SocialMediaInnovations) DoubleVerify expanded its brand safety and suitability solutions across major social platforms, including content-level avoidance for Meta's Facebook and Instagram Feeds and Reels, viewability and IVT measurement for Reels, expanded TikTok coverage to 64 markets, and new brand safety/suitability measurement on Snap and YouTube - Launched content-level avoidance for Meta's Facebook and Instagram Feeds and Reels, powered by **DV Universal Content Intelligence™**[8](index=8&type=chunk) - Expanded viewability and invalid traffic (IVT) measurement for display ads on Reels across Facebook[8](index=8&type=chunk) - Expanded brand safety and suitability coverage on TikTok to over **18 international markets**, bringing DV's TikTok coverage to **64 markets**, and launched TikTok's Video Exclusion List Solution[8](index=8&type=chunk) - Expanded viewability and brand safety coverage across additional ad formats on YouTube and launched brand safety and suitability measurement on Snap[8](index=8&type=chunk) [Open Web Integrations & Expansions](index=3&type=section&id=Item%203.2_OpenWebIntegrations) DoubleVerify launched integrations with Google Ad Manager and is on track to roll out Criteo and Index Exchange, enabling programmatic buyers to activate media quality data across buy and sell-side environments for improved performance - Launched integrations with Google Ad Manager[6](index=6&type=chunk) - On track to roll out integrations with Criteo and Index Exchange imminently[6](index=6&type=chunk) - These integrations enable programmatic buyers to activate DoubleVerify's media quality data across both buy and sell-side environments, empowering advertisers to curate inventory at source[6](index=6&type=chunk) [Corporate Strategy & Capital Allocation](index=3&type=section&id=Item%204_CorporateStrategyCapitalAllocation) This section outlines DoubleVerify's strategic acquisition of Rockerbox to enhance marketing measurement and its ongoing share repurchase program [Strategic Investments & Acquisitions](index=4&type=section&id=Item%204.1_StrategicInvestmentsAcquisitions) DoubleVerify agreed to acquire Rockerbox, Inc. for $85.0 million in cash to enhance performance attribution, optimization, and marketing measurement, and to expand its core value proposition to mid-market, direct response advertisers. The company also announced an Innovation Day for the investment community - Agreed to acquire Rockerbox, Inc. for **$85.0 million in cash**[13](index=13&type=chunk) - Rockerbox is a leader in performance attribution, optimization, and marketing measurement, empowering advertisers to optimize campaigns and maximize ROI[13](index=13&type=chunk) - Announced an in-person Innovation Day for the investment community on Wednesday, June 11, 2025, at the New York Stock Exchange[13](index=13&type=chunk) [Share Repurchase Program](index=3&type=section&id=Item%204.2_ShareRepurchaseProgram) DoubleVerify repurchased 6.8 million shares for $128.0 million in full-year 2024 and an additional 1.1 million shares for $22.2 million in January 2025. As of February 27, 2025, $200.0 million remains available under the new repurchase program - Repurchased **6.8 million shares** for **$128.0 million** in full-year 2024[9](index=9&type=chunk) - Repurchased **1.1 million shares** for **$22.2 million** in January 2025[9](index=9&type=chunk) - **$200.0 million** available under the New Repurchase Program as of February 27, 2025[9](index=9&type=chunk) [Financial Guidance](index=4&type=section&id=Item%205_FinancialGuidance) This section provides DoubleVerify's financial outlook for the first quarter and full year 2025, including anticipated revenue growth and Adjusted EBITDA margins [First Quarter 2025 Outlook](index=4&type=section&id=Item%205.1_Q1_2025_Outlook) For Q1 2025, DoubleVerify anticipates revenue between $151 million and $155 million, representing a 9% year-over-year increase at the midpoint, and Adjusted EBITDA between $37 million and $41 million, with a 25% margin at the midpoint Q1 2025 Guidance | Metric | Range | | :-------------------- | :----------------------- | | Revenue | $151 - $155 million | | YoY Increase (midpoint) | 9% | | Adjusted EBITDA | $37 - $41 million | | Adjusted EBITDA Margin (midpoint) | 25% | [Full Year 2025 Outlook](index=4&type=section&id=Item%205.2_FY_2025_Outlook) For the full year 2025, DoubleVerify expects approximately 10% revenue growth and an Adjusted EBITDA margin of approximately 32% FY 2025 Guidance | Metric | Outlook | | :-------------------- | :----------------------- | | Revenue Growth | Approximately 10% | | Adjusted EBITDA Margin | Approximately 32% | [Supplemental Financial Data & Definitions](index=5&type=section&id=Item%206_SupplementalFinancialDataDefinitions) This section defines key business terms and provides information on investor communications, offering clarity on financial metrics and company engagement [Key Business Terms](index=6&type=section&id=Item%206.1_KeyBusinessTerms) This section provides definitions for key business terms used in the financial report, including Activation revenue, Measurement revenue, Supply-Side revenue, Gross Revenue Retention Rate, Net Revenue Retention Rate, Media Transactions Measured (MTM), Measured Transaction Fee (MTF), and International Revenue Growth Rates - **Activation revenue:** Generated from the evaluation, verification and measurement of advertising impressions purchased through programmatic demand-side and social media platforms[17](index=17&type=chunk) - **Measurement revenue:** Generated from the verification and measurement of advertising impressions that are directly purchased on digital media properties, including publishers and social media platforms[17](index=17&type=chunk) - **Supply-Side revenue:** Generated from platforms and publisher partners who use DoubleVerify's data analytics to evaluate, verify and measure their advertising inventory[18](index=18&type=chunk) - **Gross Revenue Retention Rate:** Total prior period revenue earned from advertiser customers, less the portion of prior period revenue attributable to lost advertiser customers, divided by the total prior period revenue from advertiser customers[18](index=18&type=chunk) - **Net Revenue Retention Rate:** Total current period revenue earned from advertiser customers, which were also customers during the entire most recent twelve-month period, divided by the total prior year period revenue earned from the same advertiser customers, excluding a portion of our revenues that cannot be allocated to specific advertiser customers[19](index=19&type=chunk) - **Media Transactions Measured (MTM):** The volume of media transactions that DoubleVerify's software platform measures[19](index=19&type=chunk) - **Measured Transaction Fee (MTF):** The fixed fee DoubleVerify charges per thousand Media Transactions Measured[20](index=20&type=chunk) - **International Revenue Growth Rates:** Inclusive of foreign currency fluctuations[20](index=20&type=chunk) [Conference Call & Investor Information](index=5&type=section&id=Item%206.2_ConferenceCallInvestorInfo) DoubleVerify hosted a conference call and live webcast on February 27, 2025, to discuss its Q4 and FY2024 financial results. An archived webcast is available, and the company plans to post additional historical quarterly financial information on its investor relations website - DoubleVerify hosted a conference call and live webcast to discuss its fourth quarter and full-year 2024 financial results on February 27, 2025[15](index=15&type=chunk) - The webcast is available on the Investors section of the Company's website at https://ir.doubleverify.com/, with an archived replay available[15](index=15&type=chunk) - DoubleVerify plans to post certain additional historical quarterly financial information on its investor relations website[16](index=16&type=chunk) [Consolidated Financial Statements](index=7&type=section&id=Item%207_ConsolidatedFinancialStatements) This section presents DoubleVerify's consolidated balance sheets, statements of operations, stockholders' equity, and cash flows for the reported periods [Consolidated Balance Sheets](index=7&type=section&id=Item%207.1_ConsolidatedBalanceSheets) As of December 31, 2024, DoubleVerify reported total assets of $1,276.2 million, a slight increase from $1,243.0 million in 2023. Total liabilities increased to $192.8 million from $169.1 million, while total stockholders' equity grew to $1,083.5 million from $1,073.9 million Consolidated Balance Sheet Highlights (in thousands) | Metric | Dec 31, 2024 | Dec 31, 2023 | | :------------------------- | :----------- | :----------- | | Total Assets | $1,276,210 | $1,243,031 | | Cash and cash equivalents | $292,820 | $310,131 | | Trade receivables, net | $226,225 | $206,941 | | Total Current Assets | $559,051 | $533,002 | | Goodwill | $427,621 | $436,008 | | Total Liabilities | $192,751 | $169,092 | | Total Stockholders' Equity | $1,083,459 | $1,073,939 | [Consolidated Statements of Operations and Comprehensive Income](index=8&type=section&id=Item%207.2_ConsolidatedStatementsOfOperations%20and%20Comprehensive%20Income) For the year ended December 31, 2024, DoubleVerify reported revenue of $656.8 million, up from $572.5 million in 2023. Net income decreased to $56.2 million from $71.5 million in the prior year, with diluted EPS of $0.32 Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | FY 2024 | FY 2023 | FY 2022 | | :-------------------------------- | :-------- | :-------- | :-------- | | Revenue | $656,849 | $572,543 | $452,418 | | Income from operations | $82,420 | $85,727 | $59,024 | | Net income | $56,231 | $71,466 | $43,268 | | Diluted EPS | $0.32 | $0.41 | $0.25 | | Total comprehensive income | $44,342 | $74,989 | $37,713 | [Consolidated Statements of Stockholders' Equity](index=9&type=section&id=Item%207.3_ConsolidatedStatementsOfStockholders'%20Equity) The Consolidated Statements of Stockholders' Equity detail changes in common stock, treasury stock, additional paid-in capital, retained earnings, and accumulated other comprehensive loss for the years ended December 31, 2022, 2023, and 2024. Key movements in 2024 included a significant increase in treasury stock due to repurchases and an increase in additional paid-in capital from stock-based compensation Consolidated Stockholders' Equity Highlights (in thousands) | Metric | Dec 31, 2024 | Dec 31, 2023 | | :------------------------- | :----------- | :----------- | | Common Stock | $174 | $171 | | Treasury Stock | $(131,620) | $(743) | | Additional Paid-in Capital | $974,383 | $878,331 | | Retained Earnings | $255,214 | $198,983 | | Total Stockholders' Equity | $1,083,459 | $1,073,939 | - Shares repurchased under the Repurchase Program in 2024 amounted to **$128,667 thousand**[24](index=24&type=chunk) - Stock-based compensation expense contributed **$92,821 thousand** to Additional Paid-in Capital in 2024[24](index=24&type=chunk) [Consolidated Statements of Cash Flows](index=10&type=section&id=Item%207.4_ConsolidatedStatementsOfCash%20Flows) For the year ended December 31, 2024, net cash provided by operating activities was $159.7 million, an increase from $119.7 million in 2023. Net cash used in investing activities was $44.8 million, and net cash used in financing activities was $129.5 million, primarily due to share repurchases. Cash and cash equivalents decreased to $292.8 million at year-end Consolidated Statements of Cash Flows Highlights (in thousands) | Metric | FY 2024 | FY 2023 | FY 2022 | | :----------------------------------------- | :-------- | :-------- | :-------- | | Net cash provided by operating activities | $159,664 | $119,741 | $94,862 | | Net cash used in investing activities | $(44,841) | $(84,249) | $(39,981) | | Net cash used in financing activities | $(129,450) | $6,489 | $(7,884) | | Net (decrease) increase in cash, cash equivalents, and restricted cash | $(16,516) | $42,319 | $46,213 | | Cash, cash equivalents, and restricted cash—End of period | $293,741 | $310,257 | $267,938 | - Shares repurchased under the Repurchase Program resulted in a cash outflow of **$(127,999) thousand** in FY2024[25](index=25&type=chunk) [Non-GAAP Financial Measures](index=11&type=section&id=Item%208_Non-GAAPFinancialMeasures) This section provides reconciliations of non-GAAP financial measures, such as Adjusted EBITDA, to their GAAP equivalents, along with explanations of their utility and limitations [Adjusted EBITDA Reconciliation](index=11&type=section&id=Item%208.1_AdjustedEBITDAReconciliation) This section provides a reconciliation of Adjusted EBITDA to Net Income, the most directly comparable GAAP measure, for both the three months and year ended December 31, 2024 and 2023. Adjusted EBITDA excludes items such as depreciation and amortization, stock-based compensation, interest expense, income tax expense, M&A and restructuring costs, offering costs, and other recoveries/expenses Adjusted EBITDA Reconciliation (in thousands) | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :-------------------------------- | :-------- | :-------- | :-------- | :-------- | | Net income | $23,400 | $33,105 | $56,231 | $71,466 | | Depreciation and amortization | $11,800 | $11,520 | $45,215 | $40,885 | | Stock-based compensation | $22,752 | $16,473 | $90,658 | $59,244 | | Interest expense | $300 | $275 | $1,118 | $1,066 | | Income tax expense | $13,979 | $8,636 | $32,559 | $24,411 | | M&A and restructuring costs (recoveries) | $537 | $(359) | $537 | $1,262 | | Other expense (income) | $1,073 | $(4,373) | $(7,488) | $(11,216) | | **Adjusted EBITDA** | **$73,841** | **$65,428** | **$218,898** | **$187,064** | [Explanation and Limitations of Non-GAAP Measures](index=12&type=section&id=Item%208.2_Explanation%20and%20Limitations%20of%20Non-GAAP%20Measures) DoubleVerify uses Adjusted EBITDA and Adjusted EBITDA Margin as measures of operational efficiency to evaluate core business operations and trends, believing they are useful for investors for period-to-period comparisons. However, these non-GAAP measures have limitations, as they do not reflect cash requirements for working capital, capital expenditures, income taxes, or debt payments, and may not be comparable to similarly titled measures used by other companies - Adjusted EBITDA and Adjusted EBITDA Margin are used as measures of operational efficiency to understand and evaluate core business operations and trends[29](index=29&type=chunk) - Limitations include not reflecting changes in working capital, capital expenditures, income tax expense, interest expense, or cash requirements for asset replacements[32](index=32&type=chunk) - These non-GAAP measures may not be comparable to those used by other companies in the industry[30](index=30&type=chunk) [Stock-Based Compensation Expense](index=12&type=section&id=Item%208.3_Stock-Based%20Compensation%20Expense) Total stock-based compensation expense recorded in the Consolidated Statements of Operations and Comprehensive Income for the full year 2024 was $90.7 million, an increase from $59.2 million in 2023. This expense is allocated across product development, sales, marketing and customer support, and general and administrative functions Stock-Based Compensation Expense (in thousands) | Category | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :-------------------------------- | :-------- | :-------- | :-------- | :-------- | | Product development | $8,796 | $6,366 | $34,802 | $22,955 | | Sales, marketing and customer support | $7,213 | $5,101 | $27,804 | $18,299 | | General and administrative | $6,743 | $5,006 | $28,052 | $17,990 | | **Total stock-based compensation** | **$22,752** | **$16,473** | **$90,658** | **$59,244** | [Forward-Looking Statements & Company Information](index=13&type=section&id=Item%209_Forward-Looking%20Statements%20%26%20Company%20Information) This section includes disclaimers regarding forward-looking statements, an overview of DoubleVerify's mission, and contact information for investor and media relations [Forward-Looking Statements Disclaimer](index=13&type=section&id=Item%209.1_Forward-Looking%20Statements%20Disclaimer) This section contains forward-looking statements regarding future revenues, earnings, margins, and financial performance, which are subject to known and unknown risks and uncertainties. These include market competitiveness, technological developments, system failures, economic downturns, data privacy regulations, and international operations. The company cautions that actual events may differ materially from these statements and does not undertake to update them - Forward-looking statements relate to future revenues, earnings, margins, financial performance, or results of operations, including 2025 guidance[33](index=33&type=chunk) - Subject to known and unknown risks and uncertainties, such as market competitiveness, system failures, economic downturns, data privacy legislation, and international operations[33](index=33&type=chunk) - Actual events may differ materially from forward-looking information, and the company does not undertake any obligation to update or revise these statements[33](index=33&type=chunk)[35](index=35&type=chunk) [About DoubleVerify](index=13&type=section&id=Item%209.2_About%20DoubleVerify) DoubleVerify (DV) is a leading media effectiveness platform that uses AI to improve outcomes for global brands. It aims to create more effective, transparent, and secure digital advertising transactions, thereby preserving the fair value exchange between buyers and sellers - DoubleVerify is the leading software platform for digital media measurement, data and analytics[1](index=1&type=chunk) - It is an **AI-driven media effectiveness platform** that drives superior outcomes for global brands by creating more effective, transparent ad transactions[36](index=36&type=chunk) [Investor & Media Contacts](index=14&type=section&id=Item%209.3_Investor%20%26%20Media%20Contacts) This section provides contact information for DoubleVerify's Investor Relations and Media inquiries - Investor Relations Contact: Tejal Engman, IR@doubleverify.com[37](index=37&type=chunk) - Media Contact: Chris Harihar, Crenshaw Communications, 646-535-9475, chris@crenshawcomm.com[37](index=37&type=chunk)

Core Viewpoint - Growth investors are focused on stocks with above-average financial growth, but identifying stocks that can fulfill their potential is challenging [1] Group 1: Company Overview - DoubleVerify Holdings (DV) is currently recommended as a growth stock due to its favorable Growth Score and top Zacks Rank [2] - The company operates in the digital media measurement and analytics sector [3] Group 2: Earnings Growth - DoubleVerify has a historical EPS growth rate of 13.2%, but projected EPS growth for this year is expected to be 34.1%, significantly higher than the industry average of 23.1% [4] Group 3: Cash Flow Growth - The year-over-year cash flow growth for DoubleVerify is 44.6%, outperforming the industry average of -14.6% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 38.5%, compared to the industry average of 13.2% [6] Group 4: Earnings Estimate Revisions - Current-year earnings estimates for DoubleVerify have been revised upward, with the Zacks Consensus Estimate increasing by 2.5% over the past month [8] Group 5: Investment Positioning - DoubleVerify has earned a Growth Score of A and carries a Zacks Rank 2 due to positive earnings estimate revisions, positioning it well for potential outperformance [10]

Core Viewpoint - Investors are seeking growth stocks that can deliver above-average growth and exceptional returns, but identifying such stocks can be challenging due to inherent risks and volatility [1] Company Summary: DoubleVerify Holdings (DV) - DoubleVerify is identified as a promising growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 13.2%, with projected EPS growth of 31.3% this year, surpassing the industry average of 24.2% [4] - Year-over-year cash flow growth for DoubleVerify stands at 44.6%, significantly higher than the industry average of -13.9% [5] - The annualized cash flow growth rate over the past 3-5 years is 38.5%, compared to the industry average of 13.8% [6] - There have been upward revisions in current-year earnings estimates for DoubleVerify, with the Zacks Consensus Estimate increasing by 0.1% over the past month [8] - The combination of a Zacks Rank 2 and a Growth Score of A positions DoubleVerify well for potential outperformance, making it an attractive option for growth investors [10]

Core Viewpoint - DoubleVerify Holdings (DV) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Company Performance and Outlook - The recent upgrade for DoubleVerify indicates a positive outlook for its earnings, suggesting potential buying pressure and an increase in stock price [3][5]. - Analysts have raised their earnings estimates for DoubleVerify, with the Zacks Consensus Estimate increasing by 13.1% over the past three months [8]. Earnings Estimate Details - For the fiscal year ending December 2024, DoubleVerify is expected to earn $0.36 per share, reflecting a year-over-year decline of 12.2% [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a 'Strong Buy' or 'Buy' rating [9][10]. - The upgrade of DoubleVerify to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Core Viewpoint - DoubleVerify Holdings (DV) shows potential as a strong investment opportunity due to significant revisions in earnings estimates, indicating an improving earnings outlook and a positive stock trend [1][2]. Current-Quarter Estimate Revisions - For the current quarter, DoubleVerify is projected to earn $0.18 per share, reflecting a decrease of 5.26% compared to the same period last year [4]. - The Zacks Consensus Estimate for the current quarter has increased by 20.69% over the last 30 days, with four estimates raised and no negative revisions [4]. Current-Year Estimate Revisions - For the full year, the expected earnings per share for DoubleVerify is $0.36, which represents a year-over-year decline of 12.2% [5]. - The consensus estimate for the current year has seen a notable increase of 22.88%, with four estimates moving higher and no negative revisions [5]. Favorable Zacks Rank - The positive revisions in earnings estimates have led to DoubleVerify achieving a Zacks Rank 2 (Buy), indicating strong potential for outperformance [6]. - Research indicates that stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) tend to significantly outperform the S&P 500 [6]. Bottom Line - The stock has gained 14.6% over the past four weeks, driven by solid estimate revisions, suggesting that it may be a good time to consider adding DoubleVerify to investment portfolios [7].

Core Viewpoint - DoubleVerify Holdings (DV) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Ratings - The Zacks rating system is based solely on a company's changing earnings picture, tracking the Zacks Consensus Estimate for EPS from sell-side analysts [2]. - The Zacks rating upgrade for DoubleVerify reflects an improved earnings outlook, which is likely to positively affect its stock price [4][6]. - Rising earnings estimates and the upgrade suggest an enhancement in DoubleVerify's underlying business, which could lead to higher stock prices as investors respond positively [6]. Impact of Institutional Investors - Changes in future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements, largely due to institutional investors adjusting their valuations based on these estimates [5]. - Institutional investors typically buy or sell large amounts of shares based on changes in earnings estimates, leading to significant price movements for the stock [5]. Earnings Estimate Revisions for DoubleVerify - For the fiscal year ending December 2024, DoubleVerify is expected to earn $0.36 per share, reflecting a year-over-year decline of 12.2% [9]. - Over the past three months, the Zacks Consensus Estimate for DoubleVerify has increased by 22.9%, indicating a positive trend in earnings expectations [9]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [8]. - The upgrade of DoubleVerify to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [11].