DoubleVerify(US:DV)2025-11-07 12:35Financial Performance - Total revenue for Q3 2025 reached $188.6 million, reflecting an 11% year-over-year growth[3] - Adjusted EBITDA for Q3 2025 was $65.9 million, representing a 35% adjusted EBITDA margin[3] - Revenue for Q3 2025 was $188,621,000, representing a 11.5% increase from $169,556,000 in Q3 2024[20] - Full-year 2025 revenue growth is expected to be approximately 14%[11] - For the nine months ended September 30, 2025, total revenue reached $542.7 million, up 16% from $466.2 million in 2024[25] Income and Earnings - Net income for Q3 2025 was $10,202,000, a decrease of 43.9% compared to $18,201,000 in Q3 2024[20] - Earnings per share (EPS) for Q3 2025 was $0.06, down from $0.11 in Q3 2024[20] - Total comprehensive income for Q3 2025 was $11,041,000, compared to $27,280,000 in Q3 2024[20] - Net income for the nine months ended September 30, 2025, was $21.3 million, compared to $32.8 million in 2024, reflecting a decrease of 35%[24] - Non-GAAP net income for the nine months ended September 30, 2025, was $95,375,000, slightly down from $98,963,000 in the same period of 2024[29] Expenses - Cost of revenue for Q3 2025 was $33,465,000, up from $29,479,000 in Q3 2024, indicating a 6.7% increase[20] - Product development expenses for Q3 2025 were $44,842,000, an increase of 14.4% from $39,306,000 in Q3 2024[20] - Sales, marketing, and customer support expenses rose to $47,022,000 in Q3 2025, compared to $40,525,000 in Q3 2024, reflecting a 16.3% increase[20] - General and administrative expenses increased to $26,997,000 in Q3 2025 from $23,039,000 in Q3 2024, a rise of 17.5%[20] - Stock-based compensation expense for the nine months ended September 30, 2025, was $78.7 million, an increase from $67.9 million in 2024[24] Shareholder Actions - Share repurchase program saw 3.3 million shares repurchased for $50.1 million in Q3 2025, totaling 8.4 million shares for $132.3 million year-to-date[9] - The company repurchased shares under the Repurchase Program totaling $132.3 million during the nine months ended September 30, 2025[24] Product and Market Developments - Activation revenue increased by 10% to $106.7 million, while measurement revenue grew by 9% to $63.8 million[3] - Media Transactions Measured (MTM) for Connected TV (CTV) increased by 30% year-over-year[3] - New product launches include DV AI Verification and DV Authentic Advantage, aimed at enhancing transparency and performance for advertisers[2][7] - The company expanded partnerships with major platforms like Meta, TikTok, and Roku to enhance brand safety and measurement capabilities[10] - The company is focused on enhancing its media effectiveness platform through AI to drive better outcomes for global brands[36] Guidance and Future Outlook - The company raised its full-year 2025 adjusted EBITDA margin guidance from 32% to 33%[11] - The company anticipates continued challenges due to competitive pressures and economic uncertainties, impacting future performance[33] Adjustments and Calculations - Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by total revenue, providing insights into operational efficiency[27] - The effective tax rates for non-GAAP adjustments were calculated at 31% for Q3 2025 and 26% for Q3 2024[31] - The company plans to post historical quarterly financial information for Non-GAAP Net Income and Non-GAAP Earnings Per Share for the fiscal year 2024 on its investor relations website[28]