NYSE$DV

DoubleVerify Holdings Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Increased revenue driven by global growth in social, CTV measurement, and programmatic activation, net income and adjusted EBITDA were achieved, and agreement to acquire Scibids was made.

DoubleVerify reported a solid Q2 2023 with a 22% increase in revenue year-over-year, reaching $133.7 million. The growth was fueled by global expansion in social, CTV measurement, and programmatic activation. The company achieved a net income of $12.8 million and an adjusted EBITDA of $40.0 million, representing a 30% adjusted EBITDA margin. They agreed to acquire Scibids, a global leader in AI-powered digital campaign optimization.

  • Total revenue increased by 22% to $133.7 million.
  • Activation revenue grew by 29% to $77.9 million.
  • Measurement revenue increased by 16% to $45.0 million, with Social and CTV MTM rising by 41% and 32% respectively.
  • Net income reached $12.8 million, and adjusted EBITDA was $40.0 million, representing a 30% adjusted EBITDA margin.

Headline financials

Total Revenue

$134M

Previous: $110M+21.8%
EPS (adj)

$0.07

Previous: $0.06+16.7%
Adjusted EBITDA

$40M

Previous: $34M+17.8%
Capital Expenditures

-$7.67M

Previous: -$13.6M+43.6%
Free Cash Flow

$5.17M

Previous: -$3.32M+255.9%
Net Income

$12.8M

Previous: $10.3M+24.8%
Operating Income

$14.6M

Previous: $13.2M+11.2%
Gross Profit

$108M

Previous: $91M+18.2%
Cash & Equivalents

$295M

Previous: $224M+32.0%
Total Assets

$1.08B

Previous: $976M+10.9%
Stock-Based Comp

$15.2M

Previous: $9.26M+63.8%

Revenue & EPS history

DoubleVerify · Revenue · Quarterly

$134M

Q2 2023+21.8%vs Q2 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

DoubleVerify · $123M total across 2 segments · Q2 2023

  • Activation
    $77.9M+28.8%
  • Measurement
    $45M+15.7%

Forward guidance

DoubleVerify anticipates revenue between $135 to $141 million and Adjusted EBITDA in the range of $39 to $41 million for Q3 2023. For the full year 2023, they anticipate revenue of $557 to $569 million and Adjusted EBITDA in the range of $171 to $179 million.

Tailwinds

  • Q3 2023 Revenue of $135 to $141 million, a year-over-year increase of 23% at the midpoint.
  • Q3 2023 Adjusted EBITDA in the range of $39 to $41 million, representing a 29% margin at the midpoint.
  • Full Year 2023 Revenue of $557 to $569 million, a year-over-year increase of 24% at the midpoint.
  • Full Year 2023 Adjusted EBITDA in the range of $171 to $179 million, representing a 31% margin at the midpoint.

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 2023

Historical avgQ2 2023

-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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