DoubleVerify(US:DV)2025-05-08 20:10Revenue Growth - Total revenue increased by $24.3 million, or 17%, from $140.8 million in Q1 2024 to $165.1 million in Q1 2025[109] - Total advertiser revenue increased by $20.0 million, or 16%, driven by a 22% increase in Media Transactions Measured, despite a 6% decline in Measured Transaction Fees[110] - Activation revenue rose by $15.9 million, or 20%, primarily due to new customers activating core programmatic solutions[111] - Measurement revenue increased by $4.2 million, or 8%, driven by new customers activating open web and CTV solutions[112] - Supply-side revenue grew by $4.3 million, or 35%, due to increased revenue from existing and new platform customers[112] Expenses - Cost of revenue increased by $4.3 million, or 16%, primarily due to growth in Activation revenue and investments in cloud services[113] - Product development expenses rose by $8.3 million, or 23%, mainly due to increased personnel costs and third-party software costs[114] - General and administrative expenses increased by $4.5 million, or 20%, primarily due to higher personnel costs and professional fees related to the acquisition of Rockerbox[116] Net Income and Tax - Net income decreased by $4.8 million, or 67%, from $7.2 million in Q1 2024 to $2.4 million in Q1 2025[106] - Income tax expense increased by $5.4 million, or 303%, from $1.8 million in Q1 2024 to $7.2 million in Q1 2025[106] - Income tax expense increased by $5.4 million from $1.8 million in Q1 2024 to $7.2 million in Q1 2025, primarily due to unfavorable permanent tax adjustments[120] EBITDA - Adjusted EBITDA for Q1 2025 was $44.7 million, up from $38.1 million in Q1 2024, maintaining an Adjusted EBITDA margin of 27%[122] - Net income for Q1 2025 was $2.4 million, with a net income margin of 1%, compared to $7.2 million and a 5% margin in Q1 2024[122] Cash Flow - Cash provided by operating activities increased to $37.7 million in Q1 2025 from $31.8 million in Q1 2024[140][141] - Cash used in investing activities rose significantly to $89.9 million in Q1 2025, primarily due to the acquisition of Rockerbox for $82.6 million[142] - Cash used in financing activities was $85.8 million in Q1 2025, mainly for share repurchases totaling $82.2 million[143] Financial Position - As of March 31, 2025, the company had cash and cash equivalents of $156.4 million and net working capital of $151.9 million[125] - The company repurchased a total of 5.2 million shares for $82.2 million during Q1 2025, with $140.0 million remaining authorized for repurchase under the New Repurchase Program[137] - The company entered into a New Revolving Credit Facility with available borrowings of $200.0 million, which matures on the Revolving Termination Date[130] - The company believes existing cash and cash generated from operations, along with the undrawn balance under the New Revolving Credit Facility, will be sufficient to meet future working capital requirements[128] Legal Proceedings - The company is not currently involved in any legal proceedings that would materially affect its business or financial condition[151] - Legal proceedings may arise in the normal course of business, but outcomes are unpredictable[151] - Potential adverse impacts on business or financial condition from legal proceedings are acknowledged[151]