DoubleVerify(US:DV)2022-03-09 03:29Financial Data and Key Metrics Changes - In Q4 2021, the company reported revenue of $106 million, representing a year-over-year growth of 34% [47] - For the full year 2021, total revenue reached $333 million, a 36% increase compared to the previous year [8][50] - Adjusted EBITDA for Q4 2021 was $40 million, with a margin of 38%, while full year adjusted EBITDA was $110 million, up 50% year-over-year, resulting in a 33% margin [48][50] Business Line Data and Key Metrics Changes - Advertiser Programmatic revenue grew by 45% in 2021, driven by the Authentic Brand Suitability (ABS) product, which saw a 77% increase and accounted for 50% of Advertiser Programmatic revenue [51] - Social revenue grew by nearly 50% in 2021, contributing 33% to Advertiser Direct revenue, up from 29% in 2020 [51] - Supply side revenue increased by 38% in 2021, supported by new deals with major platforms like Yahoo! Japan and Amazon [52] Market Data and Key Metrics Changes - International revenue grew by almost 70% in 2021, with APAC revenue increasing by 84% and EMEA by 61% [39] - The company operates in 93 countries, with international revenue now contributing 26% of overall direct revenue [40] Company Strategy and Development Direction - The company focuses on five key growth drivers: product evolution, channel extension, international expansion, client upsell and cross-sell, and strategic M&A [10] - Recent acquisitions of Meetrics and OpenSlate are expected to enhance the company's global reach and product offerings [43] - The company aims to evolve its customer value proposition from protection to performance with new identity-independent solutions [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued high revenue growth and profitability for 2022, projecting revenue between $429 million and $437 million, a 30% increase at the midpoint [57] - The company anticipates that the integration of OpenSlate will generate between $15 million and $18 million in 2022 [49] - Management highlighted the resilience of the business model, emphasizing diversification across industries and the necessity of their products during uncertain market conditions [120][122] Other Important Information - The company generated $83 million in cash from operating activities in 2021, a significant increase from $21 million in 2020, and ended the year with approximately $222 million in cash and no debt [56] - The company plans to rename its revenue categories starting Q1 2022, with Advertiser Programmatic becoming Activation Revenue and Advertiser Direct becoming Measurement Revenue [61] Q&A Session Summary Question: What are the main drivers for the 30% top line growth for 2022? - Management indicated that growth will come from new products, new platforms, and overall volume growth, with established products also contributing [64] Question: Any updates on potential partnerships? - Management stated there are no updates on Facebook partnerships but emphasized strong growth across other social platforms like Twitter and TikTok [68] Question: How do you view M&A opportunities? - Management expressed a focus on M&A to accelerate growth in existing areas like CTV and social, as well as exploring new sectors based on client needs [80] Question: How does the business model resist macro downturns? - Management highlighted diversification across industries, fixed fee per transaction, and the necessity of their products as key factors contributing to resilience during downturns [120][122] Question: Can you provide context on the greenfield versus competitive wins? - Management noted that 61% of new customer wins were greenfield, indicating a strong focus on expanding into new markets while maintaining a competitive edge [41]