Core Insights - DoubleVerify's Q3 CY2025 revenue of $188.6 million represented an 11.2% year-on-year growth but fell short of analyst expectations of $190.2 million by 0.8% [1][6] - The company's adjusted EPS of $0.22 was 17.4% below the consensus estimate of $0.27 [1][6] - Q4 CY2025 revenue guidance of $209 million was 0.9% below analyst estimates of $210.8 million [1][6] Performance Analysis - Management attributed the revenue shortfall to a decline in retail advertiser spending and challenging comparisons to the previous year's strong performance [3] - Core verticals like consumer packaged goods remained stable, but overall market dynamics affected retail budgets [3] - Customer retention among major clients remained strong, and there was early traction for new AI-powered offerings [3] Future Outlook - The company's future guidance is influenced by the adoption rates of new AI-driven verification tools and streaming TV solutions [4] - Management believes that automation and AI will lead to margin expansion despite moderating revenue growth [4] - Key areas for future performance include scaling social and connected TV initiatives and ongoing investments in product development and international expansion [4][5] Financial Metrics - Adjusted operating income was $50.66 million, exceeding analyst estimates of $49.37 million, with a margin of 26.9% [6] - EBITDA guidance for Q4 CY2025 is $79 million, above analyst estimates of $77.86 million [6] - Operating margin decreased to 11.2% from 15.2% in the same quarter last year [6] - The company's market capitalization stands at $1.51 billion [6]

Q1 2025 Financial Performance - Total revenue reached $165 million, a 17% year-over-year growth[66, 94] - Adjusted EBITDA was $45 million, representing a 27% margin[66, 97] - Net cash from operating activities amounted to $38 million, a 19% year-over-year increase[66, 95] Growth Drivers - Advertiser supply-side revenue grew by 35% year-over-year, reaching $16 million[67] - Advertiser revenue increased by 16% year-over-year, totaling $149 million[67] - Non-ABS (Authentic Brand Suitability) revenue grew by 24%, while ABS revenue grew by 16%[81, 106] - Activation revenue increased by 20% year-over-year, driven by non-social and social factors[100, 108] - Measurement revenue increased by 8% year-over-year, with social revenue growing by 15%[100, 108] - CTV measurement impression volumes grew by 43% in Q1 2025[78] Customer Base and Retention - The number of customers generating over $200,000 annually increased by 14% year-over-year[55, 69] - Gross Revenue Retention Rate (GRR) exceeded 95%[55] - Net Revenue Retention was 112% in FY 2024[33, 126] Market Opportunity and Expansion - Approximately 50% of the top 700 customers are using less than 50% of DoubleVerify's products, indicating a cross-sell opportunity[71, 118, 120] - Retail Media supply-side revenue grew by 34% in Q1 2025[85] - The company measures 83 retail media platforms in Q1'24 and 129 in Q1'25[83] Future Outlook - Q2 2025 revenue is projected to be between $169 million and $173 million, representing a 10% year-over-year growth at the midpoint[115] - Q2 2025 Adjusted EBITDA margin is expected to be 29% at the midpoint[115] - FY 2025 revenue is expected to grow by approximately 10%, with an Adjusted EBITDA margin of 32%[115]