DoubleVerify Holdings, Inc. Stock Price: Quote, Forecast, Splits & News (DV)

Perplexity Finance

DoubleVerify Holdings, Inc.

NYSE

Market Closed

Wednesday, May 21, 2025

$14.12

+$0.02

0.14%

At close: May 20, 4:00:02 PM EDT

$14.12

$0.00

After hours: 4:05:14 PM EDT

Change

+$0.02

0.14%

Financial Profile

Prev Close

$14.10

Market Cap

$2.29B

Day Range

$13.92 - $14.19

Open

$14.12

P/E Ratio

48.7

52W Range

$11.52 - $23.11

24H Volume

$16.41M

Dividend Yield

0.00%

EPS

0.29

Earnings

Report Date

May 8, 2025

Reported Revenue

165.1M

Miss -2.52%

Avg 1d Change

11.16%

Report Period

Q1 2025

Reported EPS

0.01

Miss -50%

Implied Move 1d

12.48%

Transcript

12m 3s

Also during this call today, we'll be referring to the slide deck posted on our website With that, I'll turn it over to Marc.

12m 11s

Thanks, Basil, and thank you all for joining us today. DV is off to a strong start in 2025, with momentum building across the business. Fueled by deeper expansion with existing customers and faster scaling by newly signed enterprise clients. Our solid performance in Q1 driven by three key trends. First, our existing customers attached DV's core verification solutions across more of their spend added SideBids AI to additional campaigns and showed encouraging early momentum in social activation on Meta. Second, we saw rapid scaling by new customers who are attaching DV measurement to their open web and CTV spend and adopting our core and premium programmatic activation solutions including authentic brand suitability. And third, our supply side business maintained a strong growth profile, fueled by a record influx of platform publisher customers in the second half of twenty twenty four and rising demand from retail media platforms. Together, these three drivers have expanded our platform usage deepened our customer relationships and positioned DV to execute with strength and confidence throughout the rest of 2025. Encouragingly, business momentum remains steady through April, with no evidence of macroeconomic pressure affecting customer demand. Our strong growth this year reflects increasing demand for DD solutions and the value we're delivering to advertisers across channels.

13m 46s

At the same time, we remain focused on executing our long term vision. Which is building a unified platform that enables advertisers to verify optimize and measure media outcomes that drive brand success. We believe this integrated approach will drive broader customer adoption deeper partner engagement and faster scaling that will continue to accelerate our momentum over time. With that context, let's turn to our first quarter financial results. We delivered total revenue of $165,000,000 an increase of 17% year over year reflecting a strong reacceleration that exceeded expectations across all three revenue lines. We delivered a 27% adjusted EBITDA margin grew net cash from operating activities by 19% underscoring both the quality of our growth and the efficiency of our operations. Our advertiser business grew 16% driven by 20% growth in activation, while our supply side business delivered 35% year over year growth. These results reflect solid and sustained demand for DB solutions and show that our core business is scaling efficiently setting us up to drive even greater impact for our customers. Robust advertiser demand for our solutions continue to fuel both new customer wins and expanded product expansions this quarter. We won numerous global engagements with iconic brands, including Pinterest, Chipotle, Levi Strauss, Avon, Rivian Auto, Valvoline, Nexus Nordix, and INEOS Grenadier.

15m 29s

We also grew existing relationships in North America including significant expansions with Nike and Kia. We're driving growth through both competitive steels and greenfield wins and our land and expand strategy continues to deliver. The number of advertiser customers generating over $200,000 in annual revenue grew 14% year over year to a total of three thirty seven Even with this strong expansion progress, continue to have substantial opportunity to grow. At the end of twenty twenty four, approximately half of our top 700 customers were still using fewer than half of our core products, highlighting a clear path to deeper penetration and expansion across our customer base. And with the strategic acquisition of RockerBox, our newly expanded offering unlocks even greater to grow and scale our customer engagements. Now let's deep dive into our first quarter performance across three of our key growth areas. Social media, CTV, and the open web. Starting with social media, we launched our content level pre bid avoidance solution on Meta's Facebook and Instagram feeds and reels in late February of this year. At launch, we highlighted a robust sales pipeline of nearly 200 advertiser opportunities for our Meta activation solution. In a little over two months, we've already activated 20 customers including major brands like Nike and AARP, with numerous other top 100 clients preparing to go live soon.

17m 5s

And they're seeing great results. Two of our early adopters saw brand suitability rates improved by nine percentage points a strong indication of impact. This early traction highlights the opportunity ahead as advertisers place greater focus on brand safety and suitability in social media environments. Also highlighting the growth potential for our social activation solutions, this quarter, we brought TikTok's video exclusion list solution into general availability. Giving advertisers the power to avoid unsuitable content pre bid helping elevate media quality and supporting brand success. On the social measurement front, we expanded viewability in IVT measurement to Instagram Reels giving advertisers consistent transparency across all Reels ad formats on both Facebook and Instagram. And as TikTok grows its offerings, DV continues to lead in providing the protection and performance our clients rely on. We recently expanded our safety and suitability measurement on TikTok to include post roll ads [indiscernible] New formats that broaden how advertisers engage on the platforms. Finally, in the first quarter, we also partnered with Roblox, to launch the industry's first three d inexperience measurement solution for immersive ads. Shifting to CTV, We grew our first quarter CTV measurement volumes by nearly 43% year over year with notable strength across YouTube CTV, and Netflix.

18m 40s

DV's growth potential in CTV remains large because fraud and transparency are still critical challenges for advertisers. And the threat is only getting bigger. Sophisticated bot fraud now accounts for 65% of all CTV fraud, about 14% higher than in any other environment. Remains the dominant threat. At its peak, DV identified 3,900,000 in infected CTV devices that generated extreme levels of invalid traffic every day. Just one bot variant we discovered was driving potential losses of more than $7,500,000 per month for advertising. Advertisers. We are seeing these risks play out clearly in our data, In 2024, DV's filtering rate for CTV jumped 55% year over year and fraud and SIBT filtering more than doubled up 110%. Viewability challenges also continue to persist in CTV. Our measurement data from the second half of twenty twenty four showed that 7.4% of CTV video impressions ran on apps that serve ads even when the TV is off leading to wasted spend diminished campaign performance. DV's leadership in uncovering these issues and driving greater transparency in CTV has made us an essential solution in fueling its continued growth. As we head into the upfront and new front season, we're investing in content level scoring to improve brand stability, expanding coverage to native CTV formats across the three major publishers and deepening partnerships with innovators like EDO connect measurement with outcomes using SciBid's AI.

20m 24s

Turning to the open web, we are seeing strong growth across all of our activation solutions including authentic brand suitability. In the first quarter, ABS revenue grew 16% while non ABS activation solutions, including core programmatic Civids AI and social activation, collectively grew 24% year over year. TV is also leading the industry in independent cross platform AI media optimization solutions. Since acquiring CyBiz in August 2023, have successfully upsold CyBids AI campaign optimization to over 200 DB customers. Notably, over 50 of our top 100 clients now use CiviD's AI optimize campaigns. Up from 40 last quarter.

21m 11s

With this steady momentum, we remain solidly on track to deliver $100,000,000 in SciVids revenue by 2028. In addition, we've announced the launch of DD's pre screen brand safety and suitability solution for Google's Search Partner Network or SPN, This launch gives advertisers additional control when extending their campaign reach on SPN inventory. We're also continuing to expand our global retail media footprint. DV's measurement tags are now accepted across 129 key retail media networks and sites including 16 of the top platforms and 113 major retailers with close to half supporting DV measurement on owned and operated properties. At the same time, first quarter Retail Media supply side revenue grew 35% year over year, underscoring strong platform demand. As we continue to execute across our key growth areas, we remain mindful of the broader macroeconomic environment and the need to stay focused and disciplined. We will continue to prudently invest in innovation with an eye to operational efficiency and ensure that we take advantage of the cost benefits that leveraging AI can deliver. In a time when brands are facing economic uncertainty, one thing is certain. Advertisers are not standing still. They are looking for smarter, faster and more accountable ways to invest across an increasingly complex media landscape to get the most out of their ad spend.

22m 46s

This environment demands more from marketers and it demands more from partners who they trust. DV is in a unique position to meet these demands moving beyond verification to also deliver the intelligence and tools our customers need to drive performance for smarter, faster and better outcomes. Our recent acquisition of RockerBox is well aligned with these increasing advertiser demands to have greater clarity in how their ad spend is performing on any platform, from social to CTV. Over the past five years, DV has strategically expanded its protection and performance suite across more platforms formats and markets positioning us to thrive even in volatile macro environments. We delivered strong growth through both 2020 and 2022 when uncertainty reshaped the ad market thanks to the resilience of our revenue model and the essential nature of our solution. In times like these, when ad spend shifts to scaled platforms, and marketers double down on ROI, db's value proposition becomes even more critical. To that end, DV is building a ground unified intelligence platform for advertising, integrating a suite of tools and agentic AI features that enable advertisers to gain a deep understanding of where ads run, how they are optimized the bottom line results they deliver in one seamless solution.

24m 15s

Our platform powered solutions help advertisers make smarter decisions drive greater impact and maximize the value of every media dollar. DV's value proposition has moved beyond verification and now fuels real brand success. We are leveraging AI to deliver these roles in a way that no one else can by extracting the highest value from our deep proprietary data, building models on our nearly two decades of institutional intelligence and learning from the broadest group of advertisers on any platform. No other company has a unique set of assets intelligence and scale that DB does to take advantage of an AI enabled advertising future. We look forward to sharing more at Didi's Innovation Day on Wednesday, June 11, where our executive leadership team and industry experts will showcase how DV is leading the future of media verification, optimization and outcomes measurement. The event will be hosted live at the New York Stock Exchange webcast for the broader investment community. In closing, we are energized by our strong start to 2025 and the opportunities that lie ahead. With continued strong demand for our trusted measurement optimization and outcome solutions and our relentless drive to efficiently innovate dB is positioned to lead across the channels and platforms where advertisers are investing the most.

25m 44s

We are focused we are executing and we are confident in our long term strategy to drive durable diversified growth. With that, let me hand the call over to Nikola. Thanks, Mark, and good afternoon, everyone. We're pleased to report strong first quarter results with revenue and adjusted EBITDA ahead of expectations, reflecting steady expansion from existing customers and accelerated scaling from large new enterprise clients. Total revenue grew 17% in the first quarter $165,000,000 driven by 16% growth in advertiser revenue. Advertiser growth reflected a 22% increase in volume or MTM a 6% decrease in price or MTF, both excluding the impact of an introductory fixed fee deal for one large customer onboarded from Moat. MTF will vary with product and geographic mix and in the near term will be impacted by moat wins that were brought in at competitive rates. Our focus remains on driving volume through multi product adoption and upsell opportunities across DB's platform. Activation revenue grew 20% compared to the prior year with both ABS and non ABS activation solutions contributing to growth. ABS, which accounted for 54% of activation revenue grew 16% year over year, led by new logo activations, with additional contributions from upsells to existing customers and expanded usage among current users.

27m 19s

Nearly 70% of our top 500 customers have now activated a in Q1, up from over 60% in Q1 last year, demonstrating the continued adoption of this premium product. Turning to Measurement. Revenue grew 8% driven by new customer activations on Open Web and stable growth from existing customers. Measurement also includes revenue from the Rockabox acquisition, which closed on March 13. Social as well as international revenue growth was softer this quarter primarily due to the impact of a large customer pausing spend due to higher commodity costs that we discussed on the last call. International revenue accounted for 26% of total measurement revenue this quarter Supply side revenue grew 35% driven primarily by increased revenue from existing and new platform and publisher customers. Shifting to expenses, cost of revenue increased by approximately $4,000,000 driven by higher revenue sharing costs with programmatic partners, tied to the growth in programmatic revenue, and increased cloud services expenses. Revenue less cost of sales was 81% in the quarter and is expected to remain stable as we continue infrastructure investments to support future growth. Product development expenses increased driven by investments in engineering talent as well as software and services to support product development initiatives, including advancements in our AI capabilities.

28m 58s

Sales and marketing expenses grew at a slower rate than revenue, reflecting operating leverage while G and A expenses included acquisition related costs for Rockabox. As discussed in our last call, we expect hiring to slow this year as we continue to prioritize investment in product innovation reallocate resources to our growth initiatives and actively optimize key or organization. Adjusted EBITDA of approximately $45,000,000 in the first quarter represented a 27% margin and was ahead of plan due to higher revenues and continued cost discipline. Net operating cash flow was $38,000,000 in the first quarter driven by strong cash collections. During the quarter, we repurchased 5,200,000.0 shares for $82,000,000 And as of March $31.140000000 remained available and authorized under the new repurchase program. We also completed the acquisition of Rockabox on March 13 for $83,000,000 net of cash acquired and subject to customary post closing adjustments. We ended the quarter with approximately $175,000,000 in cash and short term investments and continue to have zero debt which provides us with the flexibility necessary to navigate a more uncertain macro environment. Turning to guidance, we expect second quarter revenue to range between 169,000,000 and $173,000,000 representing a 10% year over year growth at the mid midpoint.

30m 34s

We expect second quarter adjusted EBITDA to range between 48,000,000 and $52,000,000 representing a 29% margin at the mid point. For the second quarter, we expect expect stock based compensation to range between 26,000,000 and $29,000,000 and weighted average diluted shares outstanding to range 165,000,000 and 167,000,000 shares. Stock based compensation expense growth is decelerating and we continue to expect annual growth to stabilize in the high teens for full year 2025, down from 2024 levels. Shifting to full year guidance. As we outlined last quarter, we set 2025 guidance to reflect a transition year based on a prudent outlook on three longer term opportunities. Social activation, upselling recently signed large new customers, and expanding Rockabox adoption among existing DV clients. We exceeded expectations in Q1 are pacing ahead on social activation and upselling large new customers and so far have not seen any evidence of macro weakening. However, in light of increasing macro uncertainty, we're leaving our full year 2025 guidance unchanged at 10% revenue growth and 32% adjusted EBITDA margins. While we remain confident in DV's continued solid performance our guidance reflects a prudent view of the operating environment for the remainder of the year.

32m 7s

To close, we delivered a strong first quarter and remain focused on executing our plan for the rest of the year while positioning DV for sustained growth well beyond 2025. And with that, we will open the line for questions. Operator, please go ahead.

32m 27s

Thank you.

32m 28s

Will now be conducting a question and answer session. You may press 2 to remove yourself from the queue. It may be necessary to pick up the handset before pressing the star keys. Our first question comes from the line of Matt Swanson with RBC Capital Markets. Please proceed with your question.

33m 2s

Great. Thank you and congratulations. Guys on such a strong start to the year.

33m 7s

Maybe thinking about that strong start and then the upside to guidance with the thought process around maintaining the full year, It does feel like a time to be prudent around the macro. But if you could maybe talk us through a little bit what you saw in 2022 and 2020 and about that resiliency? And how you're kind of factoring that in with the uncertainty that we all have around the macro environment right now?

33m 34s

Thanks Matt for the question. [indiscernible] macro uncertainty that we've had over the last few years has created advertisers that are a bit more agile but also are kind of getting used to these these systematic changes. What we saw in those two years was some initial obviously initial slowdowns, But when advertisers start focusing on things that matter, like driving performance, and protecting their brand, we've seen our stickiness really shine through.

34m 12s

Right. And the fact that so much of our revenue now is on the activation side, which is very much performance driven. Very much programmatic. I think that bodes well for us being resilient through any kind of challenging times that could be coming ahead. As we noted, we've not seen any real impact from some of the kind of global macro shocks yet this year. And I think that's a good sign for us. And if anything, we've seen a greater focus on our Performance Solutions, some faster uptake of those solutions that have driven our activation numbers. And advertisers really doubling down on the fact that this is the time where they want to lean in to protect their brands. And they want to lean into ensuring that they're using tools that are driving real ROI and TV is one set of tools that does that.

35m 9s

Yes. Maybe building on that point, Mark, talked a lot about the ROI or ROAS. It's kind of the core of what you're offering. Your customers is optimizing those numbers. So I'm coming off a quarter where you saw the strong upselling for large customers and the better pace and activation, better quarter for sidebands, Does a tighter spending environment ever end up being a benefit to DB from that expansion side of people? Trying to get more basically more performance with a tighter budget.

35m 43s

Yes. I mean, there's probably two aspects of this. One is a product aspect, which is what you noted that our solutions that help drive greater transparency and better performance people lean into them more. Right? They're less willing to deal with issues of fraud. They're less willing to pay a higher CPM when they can compress it using SciBids, right? And now with RockerBox, the ability for them to actually show attribution and be able to look at their media mix modeling. Is another asset that we have when they're looking at ensuring every dollar hits its mark. There's another aspect too, which is just the business model aspect. If there's supply and demand imbalance in which CPMs global CPMs start going down for digital media, that means volumes go up. If you remember, we are a volume based business We charge a fixed CPM for most of our products. So that dynamic actually starts to play out as well. So we get a little bit of a tailwind there too. So yes, Performance Solutions become the focus and we also get a slight tailwind if CPM starts to compress a bit.

36m 58s

Thank you.

37m 2s

Thank you. Our next question comes from the line of Maria Ripps with Canaccord Genuity. Please proceed with your question.

37m 11s

Great. Thanks so much for taking my questions and congrats on the strong quarter here. First, can you maybe help us understand a little bit better what contributed to your revenue outperformance in the quarter sort of relative to your guidance in the February. Was it driven by maybe more mode customers coming on or anything else that was sort one time?

37m 34s

I think the one of the main drivers was we saw some of our new clients actually grow and accelerate their scaling a little bit ahead of of our expectations, which was one key thing. And I think the second also was our current customer expansion. I mean, that's always the biggest growth driver for us, which is our large enterprise clients and their adoption of new tools. And we saw a strong adoption of additional solutions. I mean, had its best quarter since 2023. And we saw increasingly interest increasing interest in tools like CyBids. Right, which are performance tools. So I think the combination of core client growth into new solutions and some scaling of of our new onboarded big brands folks like Kenview and others I think was was the main drivers of our exceeding expectations.

38m 39s

Got it. That's very helpful. And then just wanted to ask about sort of your thoughts on expanding a little bit deeper into direct response budgets. And Mark, you talked about sort of Performance Solutions, this quarter are being strong. So with CyBeat and now Rockabox you've been expanding your DRA functionality. But maybe talk about sort of the opportunity on the direct side a little bit more broadly and sort of your strategy there? [indiscernible] In today's environment, we're seeing this convergence between brand and performance objectives, right? I'm going to steal a term from a fellow CEO, me the other day is this idea of brand foreman. Right? Where advertisers want to protect their brand, right? But they also need to drive better results. And those results can be things like taking fraud out of the ecosystem, but they also be compressing prices like like CyBiz is able to do. I think we're able to do both and one of the few companies that can actually protect brand, pull garbage out of the system, but also drive CPMs down. [indiscernible] has been a great asset for us. 50 of our top 100 customers have now used it. Up from 40 last quarters.

39m 56s

And I think, we talked about RockerBox, RockerBox starts playing into this equation as well. When they want to look at actually what's working, what's performing, who they should be attributing the success of their campaigns to.

40m 10s

RockerBox plays into that equation. So yes, performance advertisers are considered middle kind of middle funnel or bottom funnel advertisers. Have now become a more important part of our mix. But I would say all of our advertisers are now part of this kind of brand formats universe where brand is important, but the cost of those impressions and the impact of those impressions is just as important.

40m 38s

Got it. That's very helpful. Thank you. Sure. Thank you.

40m 45s

Our next question comes from the line of Andrew Merrick with Raymond James. Please proceed with your question.

40m 51s

Hi, thanks for taking my question. Just one for me. So you talked about in your social growth the impact of the of the customer who slowed their spend recently. But I guess if we could take a step back and just think of with the shift to activation, with the varying kind of ramp and scale phases of your different partnerships and platform relationships, how should we think about that social measurement growth here in the near term? In the context of your guide?

41m 23s

Yes. I mean, we've got some we had some pretty significant comps last year on the social front. I mean year over year in 2024, it's 50% growth. Q2 was 44% growth last year. So we're kind of lapping some very big numbers where we expanded across more impressions. That being said, we're leaning in very hard into social activation. The new Meta pre bid solutions are gaining traction. And the beauty of that solution is that you have to use social measurement for it to be enabled. So we see, again, going to see social growth across the board. It will be stronger in activation, social activation.

42m 5s

Than it will be in measurement. But we've got social activation launching in Meta, we've got social activation launching in TikTok, So social is going to be a key part of our future moving ahead. And I think those two solutions the measurement side and on the pre bid side, will show growth and because they're going to grow hand in hand.

42m 27s

Thank you.

42m 32s

Thank you. Our next question comes from the line of Andrew Boone with Citizens GMP. Please proceed with your question.

42m 40s

Thanks so much for taking the question. Mark, I want to go with big picture question across all of kind of programmatic at large. You're seeing more curation DSPs and SSPs.

42m 50s

And can you just speak to that trend across programmatic? And how does DV fit into that given your historic kind of brand safety product set and everything else that you're offering?

43m 3s

Yes. I think curation starts with data. And at our core data, DB is a data business. So we lean into ensuring our data can be anywhere where a buyer needs it. And that's why we recently announced that we are launching developing curation solutions with Google, Microsoft, Index Exchange, Criteo, We'll announce a few others. And for us, it's about ensuring our advertiser partners matter how they want to buy, if they want to buy directly from an SSP, if they want to buy a direct package that's been packaged up into a PMP, that they can apply our data to those curated packages. And we're doing it. So we see it just as another for us to get highly specialized data in the hands of our advertiser customers. And again, whether they buy it through a DSP directly through an SSP, they want to create a custom curated segment it is it's someplace where we'll apply our data. And then Mark, I'd love to double click on You guys highlighted weakness in the prepared remarks. Is there anything you can expand upon in terms of call outs of why that is? And then how do you guys turn that around?

44m 24s

Thanks so much.

44m 26s

Yes. I mean, I think we had some pretty substantial growth last year. Across the globe after a couple of slow years. So we're lapping some pretty big numbers. That being said, the one customer that we have that pulled back their spend considerably that we announced in call. They were big global customers. So that had an impact as well. I think this is a momentary blip on the international side. We continue to lean in there and some of our biggest customer closes that we had coming into the year are global customers that will start to scale outside The U. S. Over the next few quarters. So we see that as some place where we'll continue to grow We're not overly concerned about the slowdown there. And I think it's not endemic to anything else, any bigger story. Sure.

45m 26s

Thank you.

45m 27s

Our next question will come from the line of Brian Pitts with BMO Capital Markets. Please proceed with your question.

45m 34s

Thanks for the questions. Maybe a quick two. With the rise of agents in AI, how do those agents potentially make solutions from DB around viewability and maybe invalid traffic more important?

45m 45s

Is this coming up more with customers as they think about their future needs? And then separately on categories, any changes in CPG over the quarter? Can you give us some more fine tuned points on that? Are you seeing potentially more meaningful recovery? In that vertical longer term? Thanks.

46m 4s

Yes, Brian, I'll take the first part and Nicole will talk about category growth. I mean on the AgenTek AI front, we see agents as being useful tools for us to help us employ our data in a more granular and more custom way for our customers, right? And I think we're very excited about leaning into that. Part of our vision for the integrated platform where we can measure, optimize and improve the effectiveness of ad spend. Is having an agent which actually not only creates custom measurement but also can create custom allocations based on how well certain segments are delivering, how well certain platforms are delivering. So think agents as part of our over AI overall AI strategy will play a key role. The same way in AI is playing a role in the ability for us to classify massive amounts of content faster, it's ability our ability to get product to market in a quicker way. And do so in a super efficient way. As Nicola noted, we've been able to manage our expenses and cost this year and we'll continue to do so. Based on some of the efficiencies that we're seeing coming out of AI.

47m 22s

So I think AI as an umbrella for us is a key part of efficiency. It's a key part of our ability to scale. And obviously, it's driving innovation in areas such as classification as well as AgenTeq AI and being able to create much more custom engagements with our customers. And I think in terms of industry we our beat in Q1 and our performance versus expectation was very broad across lot of our existing clients plus expansions in new, and that was the same in terms of the industry view. We didn't have any specific verticals that led the way. It was very broad across those as well. There was nothing particular on CPG.

48m 13s

Great. Thank you. Thank you.

48m 20s

Our next question comes from the line of Mark Kelley with Stifel. Please proceed with your question.

48m 26s

Great. Thank you very much. Wanted to ask two quick ones. Just the first on on Meta. I appreciated the comments. At the outset about the prebid solution. I know you had talked in the past about post bid was likely to see more adoption once the pre bid solution rolled out. So we'd love to get maybe an update on how those conversations are going and if you know, they're playing out the way you thought they would. And then the second one, some of the stats you gave on CTV fraud, thought was interesting. I guess, I'm curious, are the trends in CTV similar to other ad formats when they were at a similar stage you know, in digital or CTV kind of a totally different animal just from a fraud perspective?

49m 9s

Thank you.

49m 12s

Thanks, Mark. So with regards to kind of meta measurement, we're definitely there's definitely a halo effect of the prescreen, right? We've got eight of our eight of the twenty are 100 customers of the folks that we're launching. So we're getting bigger customers who are launching pre screen. And to launch prescreen, you have to have post bid measurement. So we expect there to be this kind of virtuous cycle of adding post bid, upselling pre bid, then getting folks who never really considered post bid at all, to sign up for pre bid and post bid together. So it's definitely opening more doors for us. We're getting discussions with customers who really have not entertained the post bid measurement without the pre bid kind of opportunity. And I think it's going to be we're well ahead of our pre bid expectations at this point so far this year, and we think it will be really impactful going into next year. With regard to the kind of CT fraud numbers, CTV fraud numbers, Yes, I mean, I think that in some ways, it's history repeats itself. We've seen fraud focus on mobile when it first came out. We saw fraud try to attack social when it started gaining steam.

50m 38s

This CTV has shown a lot of resiliency in the fraud area just because the fact that the CPMs are so high. And if you're going to rob a bank, do you want to rob a bank with dollar bills inside or with $100 bills inside? And I think that's why there's so much focus on CTV. It's still a relatively concentrated universe [indiscernible] demand is outstripping supply, when you have those dynamics together, it makes it ripe a ripe target for fraud. I think the beauty of where we sit is, the partners and platforms have come to us knowing that the more work they can do with us, the cleaner the ecosystem, the supply chain can be the more dollars will continue to flow to the right players versus the wrong ones.

51m 29s

Thank you. Our next question comes from the line of Justin Patterson with KeyBanc Capital Markets. Please proceed with your question.

51m 38s

Hi, this is Jacob on for Justin. Can you expand on what you're seeing on the macro currently? And your decision to kind of embed that in the full year guide despite not seeing any impact yet? And I guess further kind of down is this macro kind of leads to pricing deflationary market, do you believe that the business can remain a bit more resilient there?

52m

Thank you.

52m 2s

Yes. So So let me start with saying, we outperformed in Q1 consistently month on month. And that has continued in April. And so the unchanged guidance is really not because of anything we're seeing yet, but it's just because of just prudence based on the macro uncertainty.

52m 24s

So this is really just a position we're taking based on the uncertainty in the rather than what we're actually seeing or what we saw evidence in the first quarter into April and even very early May, but even what we're seeing for the May. So the approach was to keep it unchanged based on the macros. In terms of resiliency, I mean, Mark spoke about it a bit earlier. The shift of our clients towards products that are based on performance is one way that we feel strongly that our model will sustain larger displacements in the macro environment. We feel very good about the new initiatives that we launched, social activation being a large one and upselling our new clients. Those are opportunities that continue despite the macro environment.

53m 32s

Thank you. Our next question comes from the line of Omar Basuki with Bank of America Securities. Please proceed with your question. And Omar, your line on mute.

53m 52s

Yes, it is. Sorry about that.

53m 54s

Hello, team. Thanks for taking my question. There's been some noise recently about increased competition in the DSP space. And potentially price based competition.

54m 6s

How, if at all, does that affect DoubleVerify and your activation segment or your measurement segment? Then I have a follow-up question on CTV.

54m 19s

Yes, Omar, thanks for the question. So on the DSP space, we're widely distributed across all the DSPs.

54m 27s

So although volume concentration tends to be to the big guys, Virtually all of our activation solutions are available on any DSP that matters. And pricing remains consistent across all of them. It's customer based. So we're relatively indifferent to where an advertiser spends on a DSP. Probably not the worst thing for us if concentration becomes a bit less concentrated just due to the fact that we want to not have one platform, have too much leverage. But ultimately, we go where our advertisers go, We our data follows where they spend. So DSP competition doesn't have much of an impact on us. And since we're such a small part our fee is such a small part of the overall transaction fee. Even if there's competition on their pricing, it doesn't really impact us much.

55m 27s

Okay. So just since a lot of us are non technical people when it comes to ad tech, Different DSPs have slightly different functionality at times some of which may be more or less complementary to to the verification or activation product offering. Is there any difference in propensity to use DoubleVerify for either of those depending on kind of that feature set for the DSP or is it pretty standard across across the like, let's say, the big four DSPs?

56m 5s

Yes. I mean, look, some DSPs, there are larger DSPs. For example, like Google that have embedded products that compete against us. So if dollars are moving out of those platforms into other platforms that don't have embedded products, it provides a better opportunity for us to sell through for sure. So but I think the reality of it is, since we're selling directly to the brands, the brands are moving our data and our functionality to whatever DSP they choose. And I think that with the exception of maybe optimization, which goes outside of core verification, there's relatively little difference from platform to platform with regard to how our solutions might be employed.

56m 57s

Okay. And if I could just ask one more question.

57m

You guys are early you're early in your CTV ramp here. It looks like you've had several quarters of like kind of 40%, 50%, 60% growth Are you seeing kind of the addressable advertiser market like kind of expand down market at all this early Is the CTV space going to become something especially verification, is it going to become something that more middle market advertisers are eventually going to be interested in? Based on what you see so far, like what are predictions?

57m 41s

Yes, Omar, it's a great take. I mean, as creative tools for CTV become more ubiquitous and easier to use, And as the buying platforms become more self serve and open to middle market, you're seeing an influx of customers that two years ago would never consider buying CTV. So I think that helps us. Right? It may be taking dollars away, for example, from regional television or regional linear television that we never had access to. As well as maybe some even performance advertisers that were very focused on search or other capabilities that start moving into CTV. So it opens up our addressable market. As you look at shoppable ads and soft CTV that helps as well. So dollars moving into CTV definitely are are an asset to us. And as we noted in the call, we're improving our CTV value prop to customers by launching more transparency assets in our CTV measurement and partner with companies like EDO who are doing performance based and outcomes based measurement which we can implement tools like side bids against to optimize that spend. So even when performance advertisers are looking to get CTV, we're going to play a bigger role in that as well.

59m 8s

Okay. Thanks. I'll ask some additional questions in the call back.

59m 11s

Appreciate it.

59m 13s

Great.

59m 16s

Thank you.

59m 18s

Our next question comes from the line of Alinda Lee with William Blair and Company. Please proceed with your question.

59m 24s

Perfect. Thank you. I can hear everyone's congrats here. Mark, can you expand more on customer feedback so far on Meta Activation? And I have a follow-up after.

59m 35s

Yes. The feedback on meta activation has been really good. I mean, we've seen as we noted in the call, some pretty significant improvements in brand suitability, anywhere up to kind of nine points in positive movement. And I think it's it's a great result for us and our customers and a great result for Meta too. It helps customers feel much more comfortable in advertising on social. The feedback has been solid. It's a premium price product. Which is great for us. Again, getting another activation product out there into the marketplace at multiple of what we're getting paid for measurement is a very good thing for us. So across the board, we remain excited. And as I noted before, actually ahead of where we expected to be on the uptake of that product and revenue we're generating.

1h 29s

Awesome. And so 20 customers already activated so far on meta activation. What is the activation speed that we can expect moving forward?

1h 39s

It's a great question. I mean, a lot of the folks that jumped on, had primed early. We had mentioned, I think in our last quarterly call that we had pushed to get some folks into measurement. At the end of last year because we knew you had to be a meta measurement customer to be an activation customer. So we had a really good pipeline starting out think we closed a lot of folks pretty early. In the game. Do I think we're going to pace at that level?

1h 1m 10s

Potentially, I mean, like things look good and we've got a great pipeline. I think the nice part for us now is we've got some really big top 20 customers of ours who are testing today. And I think, hopefully, we'll be launching in the next quarter. So stay tuned for that. It was a great initial start. Think we've got good momentum behind it and some very large customers testing it out right now, which could be impactful for the rest of the year.

1h 1m 36s

Perfect. That's helpful. Thank you.

1h 1m 39s

Sure.

1h 1m 41s

Thank you. We have reached the end of the question and answer session. Would like to turn the floor back to CEO, Mark Zagorski for closing remarks.

1h 1m 51s

Hey, thank you all for joining us today on this very busy of earnings reports. We appreciate your engagement and support. Look forward to seeing you all at our upcoming Innovation Day in June. Thank you.

1h 2m 4s

Thank you. And this concludes teleconference. You may disconnect your lines at this time. Thank you for your participation.

1h 2m 13s

Goodbye.

Key Insights

DV reported a strong Q1 2025, with total revenue of $165M (up 17% YoY), driven by deeper expansion with existing customers, rapid scaling by new enterprise clients, and robust supply side growth (35% YoY).
Adjusted EBITDA margin was 27% ($45M), net operating cash flow grew 19% to $38M, and the company ended the quarter with $175M in cash and no debt; share repurchases totaled $82M in Q1.
Key growth areas included social media (notably Meta and TikTok activations), CTV (43% YoY measurement volume growth, ongoing fraud challenges), and open web solutions (ABS revenue up 16%, non-ABS activation up 24%).
The company maintained its full-year 2025 guidance of 10% revenue growth and 32% adjusted EBITDA margin, citing macroeconomic prudence despite no current evidence of demand weakness; Q2 revenue is guided at $169M–$173M with a 29% EBITDA margin.
Strategic initiatives included the acquisition of RockerBox, continued AI-driven product innovation (notably SciBids), and strong customer wins/expansions with major brands like Nike, Pinterest, and Kia; DV remains focused on building a unified platform for verification, optimization, and measurement.

Recent Transcripts

DoubleVerify delivered 17% revenue growth and exceeded expectations in Q1 2025.

Adjusted EBITDA Margin

27%

DoubleVerify delivered 15% revenue growth in 2024, but faces a transition year with key client losses.

Income Statement

Revenue

	2020	2021	2022	2023	2024
Revenue	$244M	$333M	$452M	$573M	$657M
Cost of Revenue	$36M	$54M	$78M	$107M	$117M
Gross Profit	$208M	$278M	$375M	$466M	$540M
Gross Profit %	85%	84%	83%	81%	82%
R&D Expenses	$47M	$63M	$95M	$125M	$153M

2020

2021

2022

2023

2024

Revenue

$244M

$333M

$452M

$573M

$657M

Cost of Revenue

$36M

$54M

$78M

$107M

$117M

Gross Profit

$208M

$278M

$375M

$466M

$540M

Gross Profit %

85%

84%

83%

81%

82%

R&D Expenses

$47M

$63M

$95M

$125M

$153M

Cash Flow

Net Income

	2020	2021	2022	2023	2024
Net Income	$20M	$29M	$43M	$71M	$56M
Dep. & Amort.	$25M	$30M	$34M	$41M	$45M
Def. Tax	-$5.1M	-$7.9M	-$20M	-$25M	-$22M
Stock Comp.	$6M	$22M	$42M	$59M	$91M
Chg. in WC	-$33M	-$13M	-$21M	-$43M	$0

2020

2021

2022

2023

2024

Net Income

$20M

$29M

$43M

$71M

$56M

Dep. & Amort.

$25M

$30M

$34M

$41M

$45M

Def. Tax

-$5.1M

-$7.9M

-$20M

-$25M

-$22M

Stock Comp.

$6M

$22M

$42M

$59M

$91M

Chg. in WC

-$33M

-$13M

-$21M

-$43M

Balance Sheet

Cash

	2020	2021	2022	2023	2024
Cash	$33M	$222M	$268M	$310M	$293M
ST Investments	$0	$0	$0	$0	$18M
Cash & ST Inv.	$33M	$222M	$268M	$310M	$311M
Receivables	$95M	$123M	$167M	$207M	$226M
Inventory	$0	$0	$0	$0	$0

2020

2021

2022

2023

2024

Cash

$33M

$222M

$268M

$310M

$293M

ST Investments

$18M

Cash & ST Inv.

$33M

$222M

$268M

$310M

$311M

Receivables

$95M

$123M

$167M

$207M

$226M

Inventory

Go Deeper

Financial information provided by Financial Modeling Prep. Options data provided by Unusual Whales. Live transcripts provided by Quartr. Reported revenue and EPS data from Earnings powered by FinChat.io. All data is provided for informational purposes only, and is not intended for trading purposes or financial, investment, tax, legal, accounting or other advice.

Market Cap: $2.3B
IPO Date: 4/21/21
CEO: Mr. Mark S. Zagorski
Fulltime Employees: 1.2K
Sector: Technology
Industry: Software - Application
Country: US
Exchange: New York Stock Exchange

Watchlist

$0.00

Earnings

Report Date

May 8, 2025

Reported Revenue

165.1M

Miss -2.52%

Avg 1d Change

11.16%

Report Period

Q1 2025

Reported EPS

0.01

Miss -50%

Implied Move 1d

12.48%

Transcript

12m 3s

Also during this call today, we'll be referring to the slide deck posted on our website With that, I'll turn it over to Marc.

12m 11s

13m 46s

15m 29s

17m 5s

18m 40s

20m 24s

21m 11s

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27m 19s

28m 58s

30m 34s

32m 7s

32m 27s

Thank you.

32m 28s

33m 2s

Great. Thank you and congratulations. Guys on such a strong start to the year.

33m 7s

33m 34s

34m 12s

35m 9s

35m 43s

36m 58s

Thank you.

37m 2s

Thank you. Our next question comes from the line of Maria Ripps with Canaccord Genuity. Please proceed with your question.

37m 11s

37m 34s

38m 39s

39m 56s

40m 10s

40m 38s

Got it. That's very helpful. Thank you. Sure. Thank you.

40m 45s

Our next question comes from the line of Andrew Merrick with Raymond James. Please proceed with your question.

40m 51s

41m 23s

42m 5s

42m 27s

Thank you.

42m 32s

Thank you. Our next question comes from the line of Andrew Boone with Citizens GMP. Please proceed with your question.

42m 40s

Thanks so much for taking the question. Mark, I want to go with big picture question across all of kind of programmatic at large. You're seeing more curation DSPs and SSPs.

42m 50s

And can you just speak to that trend across programmatic? And how does DV fit into that given your historic kind of brand safety product set and everything else that you're offering?

43m 3s

44m 24s

Thanks so much.

44m 26s

45m 26s

Thank you.

45m 27s

Our next question will come from the line of Brian Pitts with BMO Capital Markets. Please proceed with your question.

45m 34s

Thanks for the questions. Maybe a quick two. With the rise of agents in AI, how do those agents potentially make solutions from DB around viewability and maybe invalid traffic more important?

45m 45s

46m 4s

47m 22s

48m 13s

Great. Thank you. Thank you.

48m 20s

Our next question comes from the line of Mark Kelley with Stifel. Please proceed with your question.

48m 26s

49m 9s

Thank you.

49m 12s

50m 38s

51m 29s

Thank you. Our next question comes from the line of Justin Patterson with KeyBanc Capital Markets. Please proceed with your question.

51m 38s

52m

Thank you.

52m 2s

52m 24s

53m 32s

Thank you. Our next question comes from the line of Omar Basuki with Bank of America Securities. Please proceed with your question. And Omar, your line on mute.

53m 52s

Yes, it is. Sorry about that.

53m 54s

Hello, team. Thanks for taking my question. There's been some noise recently about increased competition in the DSP space. And potentially price based competition.

54m 6s

How, if at all, does that affect DoubleVerify and your activation segment or your measurement segment? Then I have a follow-up question on CTV.

54m 19s

Yes, Omar, thanks for the question. So on the DSP space, we're widely distributed across all the DSPs.

54m 27s

55m 27s

56m 5s

56m 57s

Okay. And if I could just ask one more question.

57m

57m 41s

59m 8s

Okay. Thanks. I'll ask some additional questions in the call back.

59m 11s

Appreciate it.

59m 13s

Great.

59m 16s

Thank you.

59m 18s

Our next question comes from the line of Alinda Lee with William Blair and Company. Please proceed with your question.

59m 24s

Perfect. Thank you. I can hear everyone's congrats here. Mark, can you expand more on customer feedback so far on Meta Activation? And I have a follow-up after.

59m 35s

1h 29s

Awesome. And so 20 customers already activated so far on meta activation. What is the activation speed that we can expect moving forward?

1h 39s

1h 1m 10s

1h 1m 36s

Perfect. That's helpful. Thank you.

1h 1m 39s

Sure.

1h 1m 41s

Thank you. We have reached the end of the question and answer session. Would like to turn the floor back to CEO, Mark Zagorski for closing remarks.

1h 1m 51s

1h 2m 4s

Thank you. And this concludes teleconference. You may disconnect your lines at this time. Thank you for your participation.

1h 2m 13s

Goodbye.

Key Insights

DV reported a strong Q1 2025, with total revenue of $165M (up 17% YoY), driven by deeper expansion with existing customers, rapid scaling by new enterprise clients, and robust supply side growth (35% YoY).
Adjusted EBITDA margin was 27% ($45M), net operating cash flow grew 19% to $38M, and the company ended the quarter with $175M in cash and no debt; share repurchases totaled $82M in Q1.
Key growth areas included social media (notably Meta and TikTok activations), CTV (43% YoY measurement volume growth, ongoing fraud challenges), and open web solutions (ABS revenue up 16%, non-ABS activation up 24%).
The company maintained its full-year 2025 guidance of 10% revenue growth and 32% adjusted EBITDA margin, citing macroeconomic prudence despite no current evidence of demand weakness; Q2 revenue is guided at $169M–$173M with a 29% EBITDA margin.
Strategic initiatives included the acquisition of RockerBox, continued AI-driven product innovation (notably SciBids), and strong customer wins/expansions with major brands like Nike, Pinterest, and Kia; DV remains focused on building a unified platform for verification, optimization, and measurement.

Earnings

Report Date

Reported Revenue

Avg 1d Change

Report Period

Reported EPS

Implied Move 1d

Transcript

Key Insights

Recent Transcripts

Income Statement

Cash Flow

Balance Sheet

Go Deeper

Related

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Recent Transcripts

Earnings

Report Date

Reported Revenue

Avg 1d Change

Report Period

Reported EPS

Implied Move 1d

Transcript

Key Insights