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]