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].

Exhibit 99.1 DoubleVerify Reports Fourth Quarter and Full Year 2024 Financial Results Increased Fourth Quarter Revenue by 11% Year-over-Year to $190.6 Million Achieved 2024 Net Income of $56.2 Million and Adjusted EBITDA of $218.9 Million, representing a 33% Adjusted EBITDA margin Agreed to Acquire Rockerbox, a leader in performance attribution, optimization and marketing measurement, to drive greater ROI for advertisers NEW YORK – February 27, 2025 – DoubleVerify ("DV") (NYSE: DV), the leading software pla ...

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].

DoubleVerify Holdings (DV) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.The upward trend in estimate revisions for this software platform for digital media measurement and analytics reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong ...

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].

Financial Data and Key Metrics Changes - In Q3 2024, the company achieved total revenue of approximately $170 million, reflecting an 18% year-over-year increase, up from 17% growth in Q2 [37] - The company reported an 83% gross margin and a 35% adjusted EBITDA margin, marking the highest profitability for any Q3 on record [6][44] - Net cash flows from operating activities increased by over 50% to $55 million in Q3, highlighting operational strength [6][44] Business Line Data and Key Metrics Changes - Activation revenue grew by 18% year-over-year, with all four activation solution groupings contributing to growth [39] - Measurement revenue increased by 14%, driven by a 21% rise in social measurement revenue, which accounted for 48% of total measurement revenue [40] - Supply-side revenue grew by 30%, primarily due to growth on existing platforms, particularly retail media [41] Market Data and Key Metrics Changes - Social measurement revenue grew by 21% year-over-year, with significant traction on Meta's platform [16] - CTV measurement volumes increased by nearly 60% year-over-year, driven by platforms like YouTube CTV, Amazon, and Roku [26] - Retail media solutions saw nearly 40% year-over-year growth, contributing to overall supply-side growth [25] Company Strategy and Development Direction - The company is focusing on expanding its solutions across social, CTV, and retail media platforms while adapting to market dynamics [9][10] - Strategic partnerships with major platforms and publishers are being pursued to enhance the company's position in the ad ecosystem [11][12] - The company aims to transition from a protection-focused model to one that integrates performance metrics, emphasizing the importance of attention and optimization [32][33] Management's Comments on Operating Environment and Future Outlook - Management noted challenges such as reduced ad spending from large customers and a shift towards walled gardens, impacting growth expectations [7][8] - The company anticipates a gradual ramp-up in the adoption of its measurement solutions on Meta, with a pre-bid solution expected to launch in early 2025 [49][60] - Despite current headwinds, management remains optimistic about maintaining double-digit revenue growth and expanding its market share in the long term [55][56] Other Important Information - The company repurchased 1.3 million shares for $25 million in Q3, with a total of $275 million authorized for share repurchases [45][46] - A new $200 million senior secured revolving credit facility was secured, replacing the previous facility [48] Q&A Session All Questions and Answers Question: Can you expand on the gradual ramp in measurements in Q3 and Q4? - Management acknowledged a more gradual growth in social measurement, with a 21% increase compared to 47% in the first half of the year, attributing this to the cautious ramp and the upcoming pre-screen tool on Meta [59][60] Question: Can you provide more detail on the opportunity with Oracle exiting the market? - Management reported closing about 70% of available RFPs from Oracle, emphasizing that the wins were across various clients and that the focus will be on upselling these new customers over time [64] Question: How does Oracle's exit affect long-term pricing dynamics? - Management indicated that while the exit creates a more limited marketplace, it also allows for entry-level relationships with new clients, which can be expanded over time [68] Question: How is the Scibids business trending versus expectations? - Management confirmed that Scibids is pacing ahead of expectations, with a 40% year-on-year growth and significant adoption among top clients [91] Question: What is the outlook for CTV measurement growth? - Management noted a 60% increase in CTV measurement volumes, driven by expanded solutions and partnerships, although they are still underpenetrated in revenue opportunities [95]