Company Overview - DoubleVerify specializes in verifying media usage and optimizing ad performance, measuring outcomes as a key function [1] - The company collaborates with over 2,000 brands across more than 100 countries, indicating significant scale and reach in the industry [2]

Summary of DoubleVerify (DV) 2025 Conference Call Company Overview - **Company**: DoubleVerify (DV) - **Industry**: Digital Advertising Verification - **Key Products**: Media verification, optimization tools, AI integration, programmatic advertising solutions Core Points and Arguments 1. **Transition Year**: 2025 is characterized as a year of transition for DoubleVerify, with revenue growth despite the transition, indicating successful integration of new products and AI technologies [3][4][5] 2. **Product Evolution**: The company is shifting its focus towards higher growth areas such as Connected TV (CTV) and social media, launching new solutions like Authentic Advantage for YouTube and enhanced CTV solutions [4][5][19] 3. **Performance Focus**: The evolution from a protection-centric model to a performance-driven approach aims to help advertisers achieve better outcomes while remaining independent and unbiased in media transactions [11][13] 4. **Revenue Visibility**: Despite uncertainties in the advertising environment, existing clients are adopting more products, and new advertisers contribute to growth. However, half of the revenue is from programmatic sources, which can be volatile [14][15][16] 5. **AI Integration**: AI is transforming advertising strategies, enhancing content analysis, and enabling custom algorithmic bidding through acquisitions like Scibids, which allows for significant cost savings for clients [25][27][28] 6. **Media Advantage Platform (MAP)**: The MAP framework integrates verification and optimization, positioning DoubleVerify as a partner in driving success for advertisers rather than just a vendor [46][52] 7. **Authentic Advantage Launch**: This product combines verification with optimization, allowing advertisers to maintain brand safety while reducing costs and increasing reach [64][70] 8. **Social and CTV Growth**: Social media and CTV are seen as essential for advertisers, with significant growth potential. The company is under-indexed in these areas and plans to enhance its measurement solutions [88][89][91] 9. **Walled Gardens Engagement**: Relationships with major platforms have evolved, with platforms proactively seeking partnerships for verification services, indicating a shift in the industry landscape [84][86][87] 10. **Macro Environment Impact**: The advertising landscape remains uncertain due to economic factors, particularly affecting retail and consumer packaged goods (CPG) sectors, which are crucial for DoubleVerify [30][32][101] Additional Important Insights - **Client Sentiment**: Advertisers are cautious but resilient, with some choosing to continue spending despite economic uncertainties [15][30] - **Competitive Differentiation**: DoubleVerify's unique position lies in its independent verification and optimization capabilities, which are not offered by competitors [107] - **Data Integration**: The combination of exposure and transaction data from RockerBox will enhance the ability to measure performance and attribution, further solidifying DoubleVerify's value proposition [110] This summary encapsulates the key discussions and insights from the DoubleVerify conference call, highlighting the company's strategic direction, product innovations, and market dynamics.

Core Viewpoint - Dolly Varden Silver has reported significant high-grade silver results from its Wolf Vein drilling, indicating strong mineralization and continuity, which may enhance the company's growth potential in the silver and gold markets [1][3][11]. Company Developments - Dolly Varden Silver announced a silver intersection of 1,422 g/t over 21.70 meters in drill hole DV25-446, with a peak of 10,700 g/t over 1.00 meter [1][2]. - The company has expanded its land package significantly, increasing from 7,000 hectares to 100,000 hectares, and its market capitalization has surged from $20 million to $460 million [13]. - The ongoing drilling campaign is estimated at 55,000 meters, with actual new core expected to be around 41,000 meters due to the use of directional drilling technology [8][9]. Exploration and Drilling Technology - Directional drilling technology is being utilized to enhance efficiency and precision in targeting mineralized areas at both the Wolf and Homestake Silver sites [7][9]. - The company has successfully implemented real-time data logging and communication through satellite internet, improving operational efficiency [5]. Market Context - The rising gold prices are positively impacting Dolly Varden's inventory value, with a current estimated 50/50 split between silver and gold [10][11]. - The silver price has recently surpassed USD 40 per troy ounce, influenced by the increase in gold prices, which may further benefit the company's valuation [11]. Future Outlook - Additional drilling at the Wolf Vein is prioritized for the remainder of the season, with expectations of continued high-grade results [3][14]. - The company is focusing on step-out and infill drilling at key projects, including the Kitsault Valley and Big Bulk Projects, with more results anticipated [14].

Group 1 - The analyst assigned a hold rating to DoubleVerify Holdings, Inc. (NYSE: DV) in April due to concerns over deteriorating macro and micro conditions [1] - The second quarter of 2025 results for DoubleVerify were strong, but they have not fully addressed the analyst's concerns [1] - The investment approach focuses on identifying undervalued companies with long-term growth potential, emphasizing value investing principles [1]

Core Viewpoint - A lawsuit has been filed against DoubleVerify Holdings, Inc. by an investor, alleging violations of securities laws related to undisclosed shifts in customer ad spending and the company's competitive position in the market [2]. Group 1: Lawsuit Details - The lawsuit claims that DoubleVerify failed to disclose that its customers were moving ad spending from open exchanges to closed platforms, where the company's technological capabilities were limited [2]. - It is alleged that the development of technology for closed platforms was significantly more expensive and time-consuming than disclosed, impacting the monetization of DoubleVerify's high-margin Activation Services [2]. - The plaintiff argues that DoubleVerify's competitors are better positioned to incorporate AI into their offerings on closed platforms, adversely affecting the company's profits and competitive ability [2]. Group 2: Financial Implications - The lawsuit states that DoubleVerify systematically overbilled customers for ad impressions served to declared bots, which raises concerns about the accuracy of the company's financial disclosures [2]. - The risk disclosures provided by DoubleVerify were characterized as materially false and misleading, as they presented adverse facts as mere possibilities [2]. - As a result of these allegations, the positive statements made by DoubleVerify regarding its business operations and prospects are claimed to be materially false or misleading [2].

Company Performance - DoubleVerify Holdings (DV) reported quarterly earnings of $0.05 per share, missing the Zacks Consensus Estimate of $0.06 per share, but showing an increase from $0.04 per share a year ago [1] - The earnings surprise for this quarter was -16.67%, and the company has only surpassed consensus EPS estimates once in the last four quarters [2] - The company posted revenues of $189.02 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 3.98% and up from $155.89 million year-over-year [3] Stock Performance - DoubleVerify shares have declined approximately 19.6% since the beginning of the year, contrasting with the S&P 500's gain of 7.6% [4] - The current consensus EPS estimate for the upcoming quarter is $0.09 on revenues of $187.54 million, and for the current fiscal year, it is $0.32 on revenues of $742.1 million [8] Industry Outlook - The Internet - Software industry, to which DoubleVerify belongs, is currently ranked in the top 32% of over 250 Zacks industries, indicating a favorable outlook [9] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [6]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 increased by 21% year over year to $189 million, surpassing the raised guidance [6][24] - Adjusted EBITDA grew by 22% year over year to $57 million, with a margin of 30%, up from 27% in Q1 2025 [24][29] - Media transactions measured (NTMs) increased by 19% year over year, while measured transaction fees (NTS) declined by 1% year over year, indicating a relative improvement [25][51] Business Line Data and Key Metrics Changes - Activation revenue grew by 25% year over year, with all four activation solution groupings contributing to growth [25] - Social measurement revenue rose by 14%, driven by platforms like YouTube, TikTok, and Meta, which collectively accounted for over 90% of Q2 social measurement revenue [27][12] - Supply side revenue increased by 26% year over year, reflecting growth from existing and new platform and publisher customers [28] Market Data and Key Metrics Changes - CTV measurement impressions grew by 45% year over year, representing 11% of total measurement impression volumes [15] - Social media remains a significant growth opportunity, with social measurement revenue growth led by major platforms [11][12] - Programmatic volume saw healthy growth, with ABS (Authentic Brand Suitability) growing by 23% year over year [19][48] Company Strategy and Development Direction - The company is focused on expanding relationships with existing advertisers and scaling new ones, emphasizing a strategy of "attach, stack, and scale" [7][10] - The recently launched Media Advantage Platform (MAP) integrates verification, optimization, and outcomes measurement, enhancing customer engagement [8][22] - The company aims to leverage AI innovations and expand its product suite to navigate a shifting market [10][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth trajectory, supported by strong enterprise win rates and an active pipeline [22][33] - The company raised its full-year 2025 revenue growth guidance to approximately 15% year over year, up from 13% [32] - Management noted that 2025 is viewed as a transition year, with gradual monetization expected from new solutions like Meta Prescreen and DV Authentic Advantage [34] Other Important Information - The company ended the quarter with approximately $217 million in cash and cash equivalents, maintaining a strong financial position [31][34] - Capital expenditures were approximately $10 million, reflecting ongoing investments in cloud infrastructure and product development [30][29] Q&A Session Summary Question: What drove the acceleration in social growth? - Management indicated that growth was driven by both new user expansion and existing customers increasing their usage, alongside the addition of new partners [38][40] Question: Can you elaborate on the drivers of outperformance relative to guidance? - The strong activation quarter, particularly around ABS, was highlighted as a key driver of growth, alongside resilient advertiser spending despite macro uncertainties [46][48] Question: How confident is the company in the sustainability of social product growth? - Management expressed increased confidence due to improvements in product offerings and the ability to provide both pre- and post-bid solutions [56][58] Question: What is the outlook for margins moving forward? - The company is guiding for a 32% EBITDA margin for the year, with continued investments in growth initiatives [91][92] Question: How is the company approaching capital allocation? - The strategy remains balanced between investments in the business, evaluating M&A opportunities, and considering share repurchases [82][84]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 increased by 21% year over year to $189 million, surpassing the raised guidance [5][22][29] - Adjusted EBITDA grew 22% year over year to $57 million, with a margin of 30%, up from 27% in Q1 2025 [22][27] - Media transactions measured (NTMs) increased by 19% year over year, while measured transaction fees (NTS) declined by 1% year over year, indicating a relative improvement [23][24] Business Line Data and Key Metrics Changes - Advertiser revenue grew by 21% year over year, driven by stronger measurement attach and deeper product stacking [22][23] - Activation revenue increased by 25% year over year, with all four activation solution groupings contributing to growth [23][24] - Social measurement revenue rose by 14%, accounting for 48% of total measurement revenue, primarily driven by platforms like YouTube, TikTok, and Meta [25][26] Market Data and Key Metrics Changes - CTV measurement impressions grew by 45% year over year, representing 11% of total measurement impression volumes [15][16] - Supply side revenue increased by 26% year over year, driven by new platform and publisher customers [26] - International measurement revenue grew by 8% year over year, representing 28% of total measurement revenue [25] Company Strategy and Development Direction - The company is focused on expanding relationships with existing advertisers and rapidly scaling new ones, emphasizing a strategy of "attach, stack, and scale" [6][10] - The recently launched Media Advantage Platform (MAP) integrates verification, optimization, and outcomes measurement, enhancing customer engagement [6][12] - The company aims to leverage innovations in AI and expand its product suite to navigate a shifting market [8][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth trajectory, supported by strong enterprise win rates and an active pipeline [21][30] - The company raised its full-year 2025 revenue growth guidance to approximately 15% year over year, up from 13% [29][30] - Management acknowledged macroeconomic uncertainties but noted resilience in advertiser spending levels [60] Other Important Information - The company ended the quarter with approximately $217 million in cash and cash equivalents, maintaining a strong financial position [28][31] - Capital expenditures were approximately $10 million, reflecting ongoing investments in cloud infrastructure and product development [27] Q&A Session Summary Question: What drove the acceleration in social growth? - Management noted that growth was driven by both new user expansion and existing customers increasing their usage, with significant contributions from platforms like TikTok and the addition of the Meta Prebid solution [34][36] Question: How does the evolving advertising landscape impact DoubleVerify? - Management highlighted the importance of transparency and independence in their offerings, which are increasingly valued by customers using AI tools on platforms like Meta [38][39] Question: What were the drivers of outperformance relative to guidance? - Strong activation performance, particularly around the ABS product, was identified as a key driver, alongside resilience in programmatic spending [42][46] Question: How does the company view the future of the open web? - Management believes the open web still has significant traffic and traction, with a focus on social, CTV, and retail media as key growth areas [90][92] Question: What is the status of CTV product development? - Future iterations of the CTV measurement solution are expected to roll out before the end of the year, with a more robust implementation planned for early 2026 [96]

Financial Performance - Total revenue for Q2 2025 reached $189 million, representing a 21% year-over-year growth[8, 43] - Adjusted EBITDA for Q2 2025 was $57 million, resulting in a 30% margin[43] - The company has no long-term debt[43] Revenue Growth Drivers - Scaling new advertisers contributed to approximately one-third of the first half of 2025 revenue growth, with 1 percentage point of the 19% revenue growth coming from 2024 Moat advertiser wins[8] - Activation revenue grew by 25% year-over-year in Q2 2025[33] - Measurement revenue increased by 15% year-over-year in Q2 2025[33] - Supply-side revenue experienced a 26% year-over-year growth in Q2 2025[33] Strategic Initiatives - The company is focused on an "Attach, Stack and Scale" revenue strategy, emphasizing verification measurement expansion and activation product upsells[9, 10] - The company is expanding coverage across Retail Media Networks, with total supply-side revenue growth of 26% and retail media supply-side growth of 39% in Q2 2025[26, 28, 29] Market Expansion - Social measurement revenue grew 14% year-over-year in Q2 2025[19] - CTV measurement impressions grew 45% year-over-year in Q2 2025[21]

Part I [Item 1. Condensed Consolidated Financial Statements](index=5&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) This section presents DoubleVerify Holdings' unaudited condensed consolidated financial statements for the three and six months ended June 30, 2025 [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of June 30, 2025, shows increased total assets driven by goodwill, decreased cash, and higher total liabilities Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $211,784 | $292,820 | | Total current assets | $462,361 | $559,051 | | Goodwill | $516,587 | $427,621 | | Total assets | $1,296,928 | $1,276,210 | | **Liabilities & Equity** | | | | Total current liabilities | $104,901 | $103,482 | | Total liabilities | $206,913 | $192,751 | | Total stockholders' equity | $1,090,015 | $1,083,459 | - Goodwill increased by approximately **$89 million**, primarily due to the acquisition of Rockerbox, Inc.[15](index=15&type=chunk)[39](index=39&type=chunk) - Cash and cash equivalents decreased by **$81.0 million**, reflecting cash used for the Rockerbox acquisition (**$82.6 million**) and share repurchases (**$82.2 million**), partially offset by cash from operations[15](index=15&type=chunk)[20](index=20&type=chunk) [Condensed Consolidated Statements of Operations and Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) Q2 2025 revenue grew 21.2% with increased net income, while H1 2025 revenue grew 19.4% but net income decreased due to higher tax expense Key Performance Metrics (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $189,021 | $155,890 | $354,082 | $296,672 | | Income from operations | $13,548 | $11,049 | $20,311 | $17,944 | | Net income | $8,758 | $7,474 | $11,119 | $14,630 | | Diluted EPS | $0.05 | $0.04 | $0.07 | $0.08 | - Operating expenses increased across all categories, with notable rises in Product development (**18.6% YoY for Q2**) and General and administrative (**28.2% YoY for Q2**), reflecting continued investment and acquisition-related costs[16](index=16&type=chunk) - Income tax expense for the first six months of 2025 was **$13.6 million**, a significant increase from **$7.2 million** in the same period of 2024, leading to a decrease in year-to-date net income despite higher pre-tax income[16](index=16&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations increased, while significant cash was used for investing (acquisitions) and financing (share repurchases), resulting in a net cash decrease Cash Flow Summary (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $87,276 | $67,655 | | Net cash used in investing activities | ($86,707) | ($95,495) | | Net cash used in financing activities | ($86,044) | ($24,562) | | **Net decrease in cash** | **($80,928)** | **($53,252)** | - The primary use of cash in investing activities was **$82.6 million** for the acquisition of Rockerbox, net of cash acquired[20](index=20&type=chunk) - Financing activities were dominated by **$82.2 million** used for share repurchases under the company's authorized programs[20](index=20&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail revenue disaggregation, the Rockerbox acquisition, share repurchase programs, and a new class action lawsuit Disaggregated Revenue by Customer Type (Six Months Ended June 30, in thousands) | Type | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Activation | $204,121 | $166,793 | +22.4% | | Measurement | $116,326 | $104,092 | +11.8% | | Supply-side | $33,635 | $25,787 | +30.4% | | **Total revenue** | **$354,082** | **$296,672** | **+19.4%** | - On March 13, 2025, the Company acquired Rockerbox, Inc., a marketing attribution leader, for a total purchase price of **$82.3 million**, net of cash acquired, adding **$72.1 million** to goodwill[32](index=32&type=chunk)[33](index=33&type=chunk) - The company fully utilized its **$150.0 million** Repurchase Program and began a new **$200.0 million** program, spending a total of **$82.2 million** to repurchase **5.1 million shares** across both programs in the first six months of 2025[83](index=83&type=chunk)[85](index=85&type=chunk) - A class action lawsuit was filed against the Company on May 22, 2025, alleging violations of the Securities Exchange Act of 1934, which the company intends to defend vigorously[89](index=89&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition and operational results for the second quarter and first half of 2025 [Results of Operations](index=31&type=section&id=Results%20of%20Operations) Revenue grew significantly in Q2 and H1 2025 across all segments, driven by increased media transactions, while operating expenses also rose due to investments Revenue Growth by Customer Type (Q2 2025 vs Q2 2024) | Customer Type | Q2 2025 Revenue | Q2 2024 Revenue | % Change | | :--- | :--- | :--- | :--- | | Activation | $108,950 | $87,471 | 25% | | Measurement | $62,895 | $54,817 | 15% | | Supply-side | $17,176 | $13,602 | 26% | | **Total revenue** | **$189,021** | **$155,890** | **21%** | - Total Advertiser revenue growth was driven by a **19% increase** in Media Transactions Measured for the three months ended June 30, 2025[113](index=113&type=chunk) - General and administrative expenses increased by **28%** in Q2 2025, primarily due to higher personnel costs, professional fees, and **$0.5 million** in costs related to the Rockerbox acquisition[120](index=120&type=chunk) [Adjusted EBITDA](index=34&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA increased in Q2 and H1 2025, with margins remaining stable, reflecting adjustments for non-cash and M&A-related expenses Adjusted EBITDA Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income | $8,758 | $7,474 | $11,119 | $14,630 | | Adjustments | $48,516 | $39,293 | $90,809 | $70,270 | | **Adjusted EBITDA** | **$57,274** | **$46,767** | **$101,928** | **$84,900** | | **Adjusted EBITDA Margin** | **30%** | **30%** | **29%** | **29%** | [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with substantial cash and an undrawn credit facility, financing operations primarily through cash flow and using funds for acquisitions and share repurchases - As of June 30, 2025, the company had cash and cash equivalents of **$211.8 million** and an undrawn **$200.0 million** revolving credit facility[129](index=129&type=chunk)[130](index=130&type=chunk) - In August 2024, the company entered into a new credit agreement for a **$200.0 million** senior secured revolving credit facility, replacing its prior facility, with no debt outstanding as of June 30, 2025[53](index=53&type=chunk)[132](index=132&type=chunk)[136](index=136&type=chunk) - During the first six months of 2025, the company repurchased a total of **5.1 million shares** for **$82.2 million**, with **$140.0 million** remaining available under the New Repurchase Program as of June 30, 2025[85](index=85&type=chunk)[140](index=140&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section confirms no material changes to the company's market risks since the 2024 Annual Report on Form 10-K - Market risks as of June 30, 2025, have not materially changed from those discussed in the 2024 Annual Report on Form 10-K[149](index=149&type=chunk) [Item 4. Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - Based on an evaluation as of June 30, 2025, the CEO and CFO concluded that the company's disclosure controls and procedures were effective[149](index=149&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, internal controls[150](index=150&type=chunk) Part II [Item 1. Legal Proceedings](index=42&type=section&id=Item%201.%20Legal%20Proceedings) This section discloses a class action lawsuit filed against the company, which it intends to vigorously defend - A securities class action lawsuit was filed on May 22, 2025, alleging violations of the Securities Exchange Act of 1934 between November 10, 2023, and February 27, 2025[154](index=154&type=chunk) - The company believes it is not necessary to accrue a litigation reserve at this time and intends to vigorously defend against the claims[154](index=154&type=chunk) [Item 1A. Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) This section confirms no material changes to the company's risk factors since the 2024 Annual Report on Form 10-K - No material changes have been made to the risk factors described in the 2024 Annual Report on Form 10-K[155](index=155&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports no common stock repurchases during the three months ended June 30, 2025 - The company did not repurchase any of its common stock during the three-month period ending June 30, 2025[156](index=156&type=chunk) [Item 5. Other Information](index=43&type=section&id=Item%205.%20Other%20Information) This section discloses the Chief Legal Officer's adoption of a Rule 10b5-1 trading plan for share sales - On June 18, 2025, Chief Legal Officer Andrew E. Grimmig adopted a Rule 10b5-1 trading plan for the sale of **26,076 shares**, expiring March 17, 2026[159](index=159&type=chunk) [Item 6. Exhibits](index=44&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications and XBRL data - The report includes standard exhibits such as Sarbanes-Oxley certifications (31.1, 31.2, 32.1, 32.2) and Inline XBRL documents (101 series)[160](index=160&type=chunk)