DoubleVerify(DV)2024-11-07 04:04Financial Data and Key Metrics Changes - In Q3 2024, the company achieved total revenue of approximately 55 million in Q3, highlighting operational strength [6][44] Business Line Data and Key Metrics Changes - Activation revenue grew by 18% year-over-year, with all four activation solution groupings contributing to growth [39] - Measurement revenue increased by 14%, driven by a 21% rise in social measurement revenue, which accounted for 48% of total measurement revenue [40] - Supply-side revenue grew by 30%, primarily due to growth on existing platforms, particularly retail media [41] Market Data and Key Metrics Changes - Social measurement revenue grew by 21% year-over-year, with significant traction on Meta's platform [16] - CTV measurement volumes increased by nearly 60% year-over-year, driven by platforms like YouTube CTV, Amazon, and Roku [26] - Retail media solutions saw nearly 40% year-over-year growth, contributing to overall supply-side growth [25] Company Strategy and Development Direction - The company is focusing on expanding its solutions across social, CTV, and retail media platforms while adapting to market dynamics [9][10] - Strategic partnerships with major platforms and publishers are being pursued to enhance the company's position in the ad ecosystem [11][12] - The company aims to transition from a protection-focused model to one that integrates performance metrics, emphasizing the importance of attention and optimization [32][33] Management's Comments on Operating Environment and Future Outlook - Management noted challenges such as reduced ad spending from large customers and a shift towards walled gardens, impacting growth expectations [7][8] - The company anticipates a gradual ramp-up in the adoption of its measurement solutions on Meta, with a pre-bid solution expected to launch in early 2025 [49][60] - Despite current headwinds, management remains optimistic about maintaining double-digit revenue growth and expanding its market share in the long term [55][56] Other Important Information - The company repurchased 1.3 million shares for 275 million authorized for share repurchases [45][46] - A new $200 million senior secured revolving credit facility was secured, replacing the previous facility [48] Q&A Session All Questions and Answers Question: Can you expand on the gradual ramp in measurements in Q3 and Q4? - Management acknowledged a more gradual growth in social measurement, with a 21% increase compared to 47% in the first half of the year, attributing this to the cautious ramp and the upcoming pre-screen tool on Meta [59][60] Question: Can you provide more detail on the opportunity with Oracle exiting the market? - Management reported closing about 70% of available RFPs from Oracle, emphasizing that the wins were across various clients and that the focus will be on upselling these new customers over time [64] Question: How does Oracle's exit affect long-term pricing dynamics? - Management indicated that while the exit creates a more limited marketplace, it also allows for entry-level relationships with new clients, which can be expanded over time [68] Question: How is the Scibids business trending versus expectations? - Management confirmed that Scibids is pacing ahead of expectations, with a 40% year-on-year growth and significant adoption among top clients [91] Question: What is the outlook for CTV measurement growth? - Management noted a 60% increase in CTV measurement volumes, driven by expanded solutions and partnerships, although they are still underpenetrated in revenue opportunities [95]