NYSE$DV

DoubleVerify Holdings Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Revenue increased driven by global growth in social and CTV measurement and net income and adjusted EBITDA were achieved.

DoubleVerify reported a 15% year-over-year increase in revenue to $140.8 million for Q1 2024, driven by growth in social and CTV measurement. The company achieved a net income of $7.2 million and an adjusted EBITDA of $38.1 million, representing a 27% adjusted EBITDA margin.

  • Total revenue increased by 15% year-over-year.
  • Activation revenue increased by 13% year-over-year.
  • Measurement revenue increased by 19% year-over-year, with social measurement revenue up by 51%.
  • Net income was $7.2 million and adjusted EBITDA was $38.1 million, representing a 27% adjusted EBITDA margin.

Headline financials

Total Revenue

$141M

Previous: $123M+14.8%
EPS

$0.04

Previous: $0.07-42.9%
Adjusted EBITDA

$38.1M

Previous: $35.9M+6.2%
Adjusted EBITDA Margin

27.0%

No prior period
Capital Expenditures

-$6.39M

Previous: -$4.1M-56.0%
Free Cash Flow

$763K

Previous: $8.08M-90.6%
Net Income

$7.16M

Previous: $12.2M-41.2%
Operating Income

$6.9M

Previous: $15.2M-54.7%
Gross Profit

$114M

Previous: $98.6M+15.7%
Cash & Equivalents

$302M

Previous: $286M+5.7%
Total Assets

$1.26B

Previous: $1.06B+18.3%
R&D Expense

$36.4M

No prior period
Stock-Based Comp

$20.2M

Previous: $11.8M+71.3%

Revenue & EPS history

DoubleVerify · Revenue · Quarterly

$141M

Q1 2024+14.8%vs Q1 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

DoubleVerify · $133M total across 2 segments · Q3 2023

  • Activation
    $81.7M+31.4%
  • Measurement
    $51.3M+32.0%

Forward guidance

DoubleVerify anticipates for the second quarter of 2024 revenue of $152 to $156 million, a year-over-year increase of 15% at the midpoint, and adjusted EBITDA of $41 to $45 million, representing a 28% margin at the midpoint. For the full year 2024, revenue is expected to be $663 to $675 million, a year-over-year increase of 17% at the midpoint, and adjusted EBITDA of $199 to $211 million, representing a 31% margin at the midpoint.

Tailwinds

  • Revenue of $152 to $156 million is expected for Q2 2024.
  • Adjusted EBITDA of $41 to $45 million is expected for Q2 2024.
  • Revenue of $663 to $675 million is expected for full year 2024.
  • Adjusted EBITDA of $199 to $211 million is expected for full year 2024.
  • Full-year 2024 guidance ranges to 17% revenue growth, and 31% adjusted EBITDA margins at the midpoints.

Headwinds

  • Uneven spending patterns among select large advertisers.
  • Potential risks related to technological developments or evolving industry standards.
  • Competitiveness of the market.
  • System failures, security breaches, cyberattacks or natural disasters.
  • Economic downturns and unstable market conditions.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

-2.5%

Avg return

Earnings day

-0.8%

Avg return

5 days after

+2.0%

Avg return

30 days after

60%

15 / 25 earnings

Positive

+10.4%

Q4 2025

Best reaction

-39.5%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.7%-9.1%-10.6%
Q4 2025+10.4%+8.5%-2.3%
Q3 2025-14.4%-4.3%+0.5%
Q1 2025-5.4%+5.7%+4.7%
Q4 2024-36.0%-32.0%-38.6%
Q3 2024+7.3%+9.6%+12.5%
Q2 2024+3.8%+0.1%-2.8%
Q1 2024-39.5%-39.1%-39.4%
Q4 2023-25.7%-25.8%-15.4%
Q3 2023+4.0%+6.8%+13.5%
Q2 2023-13.5%-19.5%-18.6%
Q1 2023+9.9%+4.9%+33.6%
Q4 2022+3.8%+1.8%+14.8%
Q3 2022+4.3%+11.6%+5.5%
Q2 2022+9.2%+15.1%+12.5%
Q1 2022-2.9%+15.4%+18.8%
Q4 2019+0.1%-13.0%+3.7%
Q4 2021+0.1%+7.4%-2.0%
Q3 2020+3.6%+3.4%-6.5%
Q3 2021+3.6%+3.4%-6.5%
Q2 2020-0.6%-0.1%-3.5%
Q2 2021-0.6%-0.1%-3.5%
Q1 2020+5.5%+6.0%+25.1%
Q1 2021+6.3%+11.8%+27.1%
Q4 2020+5.5%+11.8%+27.1%
Q3 2019

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