NYSE$DV

DoubleVerify Holdings Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported record revenue driven by global growth and raising full-year guidance.

DoubleVerify reported a strong second quarter with revenue increasing by 43% year-over-year to $109.8 million, driven by growth in pre-campaign activation across programmatic, social, and CTV. The company achieved a net income of $10.3 million and an adjusted EBITDA of $34.0 million.

  • Total revenue increased by 43% year-over-year to $109.8 million.
  • Activation revenue increased by 60% year-over-year to $60.5 million.
  • Measurement revenue increased by 23% year-over-year to $38.9 million.
  • Achieved net income of $10.3 million and adjusted EBITDA of $34.0 million.

Headline financials

Total Revenue

$110M

Previous: $76.5M+43.5%
EPS (adj)

$0.06

Previous: -$0.08+175.0%
Adjusted EBITDA

$34M

Previous: $21.2M+60.3%
Capital Expenditures

-$13.6M

Previous: -$3.51M-287.3%
Free Cash Flow

-$3.32M

Previous: -$16.1M+79.4%
Net Income

$10.3M

Previous: -$12.6M+181.9%
Operating Income

$13.2M

Previous: -$9.92M+232.7%
Gross Profit

$91M

Previous: $64.2M+41.6%
Cash & Equivalents

$224M

Previous: $330M-32.3%
Total Assets

$976M

Previous: $790M+23.5%
Stock-Based Comp

$9.26M

Previous: $4.71M+96.4%

Revenue & EPS history

DoubleVerify · Revenue · Quarterly

$110M

Q2 2022+43.5%vs Q2 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

DoubleVerify · $99.4M total across 2 segments · Q2 2022

  • Activation
    $60.5M
  • Measurement
    $38.9M

Forward guidance

DoubleVerify anticipates for full year 2022 revenue of $448 to $450 million, a year-over-year increase of 35% at the midpoint, and adjusted EBITDA in the range of $136 to $140 million, representing a 31% margin at the midpoint.

Tailwinds

  • Revenue of $108 to $110 million for Q3 2022.
  • Adjusted EBITDA in the range of $32 to $34 million for Q3 2022.
  • Revenue of $448 to $450 million for full year 2022.
  • Adjusted EBITDA in the range of $136 to $140 million for full year 2022.
  • Expect 35% revenue growth and 31% adjusted EBITDA margins.

Headwinds

  • The company has not reconciled the non-GAAP measure Adjusted EBITDA to the GAAP measure net income.
  • The company does not provide guidance for stock-based compensation expense.
  • The company does not provide guidance for depreciation and amortization expense.
  • The company does not provide guidance for acquisition-related costs.
  • The company does not provide guidance for interest income, and income taxes.

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 Q2 2022

Historical avgQ2 2022

-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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