DoubleVerify(US:DV)2025-11-07 12:39Revenue Growth - Total revenue increased by $19.1 million, or 11%, from $169.6 million in Q3 2024 to $188.6 million in Q3 2025[118] - Total revenue increased by $76.5 million, or 16%, from $466.2 million in the nine months ended September 30, 2024, to $542.7 million in the nine months ended September 30, 2025[118] - Advertiser revenue increased by $15.3 million, or 10%, in Q3 2025 compared to Q3 2024, driven by a 12% increase in Media Transactions Measured[119] - For the nine months ended September 30, 2025, total Advertiser revenue increased by $64.8 million, or 15%, compared to the same period in 2024, supported by a 17% increase in Media Transactions Measured[119] - Activation revenue increased by $9.9 million, or 10%, in Q3 2025 compared to Q3 2024, driven by greater adoption of Authentic Brand Suitability and core programmatic solutions[120] - For the nine months ended September 30, 2025, Activation revenue increased by $47.2 million, or 18%, compared to the same period in 2024[120] - Measurement revenue increased by $5.4 million, or 9%, to $65.4 million for the three months ended September 30, 2025, compared to the same period in 2024[121] - Supply-side revenue rose by $3.8 million, or 27%, to $17.8 million for the three months ended September 30, 2025, compared to the same period in 2024[122] Financial Performance - Operating income decreased by $4.6 million, or 18%, in Q3 2025 compared to Q3 2024[115] - Net income decreased by $7.999 million, or 44%, in Q3 2025 compared to Q3 2024[115] - The gross revenue retention rate was over 95% for the three months ended September 30, 2025[103] - Adjusted EBITDA for the three months ended September 30, 2025, was $65.9 million, with an Adjusted EBITDA margin of 35%[132] Expenses - Cost of revenue increased by $4.0 million, or 14%, to $33.5 million for the three months ended September 30, 2025, driven by higher partner costs and data services[123] - Product development expenses grew by $5.5 million, or 14%, to $44.8 million for the three months ended September 30, 2025, primarily due to increased personnel costs[124] - Sales, marketing, and customer support expenses increased by $6.5 million, or 16%, to $47.0 million for the three months ended September 30, 2025, mainly due to higher personnel costs[125] - General and administrative expenses rose by $4.0 million, or 17%, to $27.0 million for the three months ended September 30, 2025, largely due to increased personnel costs and legal fees[126] Cash Flow and Capital Management - As of September 30, 2025, the company had cash and cash equivalents of $200.7 million and net working capital of $156.3 million[135] - The company authorized a repurchase of up to $200.0 million of its outstanding common stock under the New Repurchase Program[143] - During the three months ended September 30, 2025, the company repurchased 3.3 million shares for an aggregate amount of $50.1 million under the New Repurchase Program[145] - The Company repurchased 8.4 million shares for a total of $132.3 million during the nine months ended September 30, 2025, with $90.0 million remaining authorized for repurchase[146] - Cash flows from operating activities for the nine months ended September 30, 2025, were $138.5 million, an increase from $122.3 million in 2024, driven by a net income of $21.3 million[150][151] - Cash used in investing activities was $93.8 million for the nine months ended September 30, 2025, including $82.6 million for the acquisition of Rockerbox[152] - Cash used in financing activities totaled $140.8 million for the nine months ended September 30, 2025, primarily due to share repurchases[153] - The Company reported a cash decrease of $92.0 million in cash, cash equivalents, and restricted cash for the nine months ended September 30, 2025[147] Other Financial Information - Non-cash charges included $42.3 million in depreciation and amortization and $78.7 million in stock-based compensation for the nine months ended September 30, 2025[150] - The Company experienced a $11.6 million decrease in trade receivables and a $5.0 million decrease in trade payables during the nine months ended September 30, 2025[150] - Cash flows from operating activities in 2024 were impacted by a $12.6 million increase in prepaid expenses and a $10.3 million decrease in trade receivables[151] - The Company has not experienced material changes in market risks as of September 30, 2025, compared to the previous year[157] - There are no current legal proceedings expected to materially affect the Company's financial condition[161]