DoubleVerify(DV) - 2025 Q2 - Quarterly Results

Financial & Business Highlights DoubleVerify reported strong Q2 2025 results with 21% revenue growth to $189.0 million, driven by balanced segment and strategic wins Q2 2025 Financial Performance Q2 2025 Key Financial Metrics (YoY Growth) | Metric | Q2 2025 Value | YoY Growth | | :--- | :--- | :--- | | Total Revenue | $189.0M | 21% | | Activation Revenue | $108.9M | 25% | | Measurement Revenue | $62.9M | 15% | | Supply-Side Revenue | $17.2M | 26% | | Net Income | $8.8M | - | | Adjusted EBITDA | $57.3M | - | | Adj. EBITDA Margin | 30% | - | - Growth was driven by strong performance across all key vectors, including Social, CTV, and programmatic solutions, with significant contributions from existing customers adopting more products and expanding geographically[2] Q2 2025 Business & Operational Highlights - The company maintained a Gross Revenue Retention rate of over 95% in the second quarter[6] - Secured several new enterprise customer wins, including Banco do Brasil, Emaar, Haribo, Lidl, Puma, Riyadh Air, Six Flags, and Tractor Supply[6] - Key strategic developments include expanded brand suitability measurement on Meta, introduction of DV Authentic AdVantage, launch of DV Authentic Attention® for Social on Snap, and partnership with Lyft for in-app ad authentication[6] Financial Guidance DoubleVerify raised full-year 2025 revenue growth guidance to ~15% and reaffirmed a 32% Adjusted EBITDA margin, providing Q3 outlook Third Quarter 2025 Guidance Q3 2025 Outlook | Metric | Guidance Range | Midpoint YoY Growth / Margin | | :--- | :--- | :--- | | Revenue | $188M - $192M | 12% | | Adjusted EBITDA | $60M - $64M | 33% Margin | Full-Year 2025 Guidance Full-Year 2025 Outlook | Metric | Guidance | | :--- | :--- | | Revenue Growth | ~15% | | Adjusted EBITDA Margin | ~32% | Consolidated Financial Statements (Unaudited) The unaudited financial statements detail the company's financial position, income, and cash flows for the period ending June 30, 2025 Condensed Consolidated Balance Sheets Balance Sheet Summary (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $211,784 | $292,820 | | Total Assets | $1,296,928 | $1,276,210 | | Total Liabilities | $206,913 | $192,751 | | Total Stockholders' Equity | $1,090,015 | $1,083,459 | Condensed Consolidated Statements of Operations Income Statement Summary - Three Months Ended June 30 (in thousands) | Account | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | $189,021 | $155,890 | | Income from operations | $13,548 | $11,049 | | Net income | $8,758 | $7,474 | | Diluted EPS | $0.05 | $0.04 | Condensed Consolidated Statements of Cash Flows Cash Flow Summary - Six Months Ended June 30 (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash from Operating | $87,276 | $67,655 | | Net cash used in Investing | ($86,707) | ($95,495) | | Net cash used in Financing | ($86,044) | ($24,562) | | Net decrease in cash | ($80,928) | ($53,252) | - Significant cash outflows in the first six months of 2025 included $82.6 million for business acquisitions and $82.2 million for share repurchases[17] Supplemental Financial Information This section provides detailed revenue breakdown by customer type and reconciles GAAP Net Income to Adjusted EBITDA for Q2 2025 Revenue by Customer Type Q2 Revenue Breakdown & YoY Growth (in thousands) | Customer Type | Q2 2025 Revenue | Q2 2024 Revenue | YoY Growth % | | :--- | :--- | :--- | :--- | | 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% | Adjusted EBITDA Reconciliation Reconciliation of Net Income to Adjusted EBITDA - Q2 (in thousands) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Income | $8,758 | $7,474 | | Depreciation & Amortization | $14,697 | $11,004 | | Stock-based compensation | $27,007 | $24,715 | | Income tax expense | $6,452 | $5,406 | | Other adjustments | ($131) | ($2,065) | | Adjusted EBITDA | $57,274 | $46,767 | | Adjusted EBITDA Margin | 30% | 30% | Key Definitions and Disclosures This section defines key business terms and includes standard forward-looking statement disclaimers outlining potential risks and uncertainties Key Business Terms - The report defines key operational and financial terms, including Activation revenue from programmatic/social platforms, Measurement revenue from direct ad buys, Supply-Side revenue from platforms/publishers, and Media Transactions Measured (MTM) volume[11][12][13] Forward-Looking Statements - The press release contains forward-looking statements, including financial guidance, which are not guarantees of future performance and are subject to known and unknown risks and uncertainties[25] - Key risks cited include market competitiveness, technological developments, system failures, economic downturns, and data privacy regulations[25][26]