NYSE$DV

DoubleVerify Holdings Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Revenue increased by 35% year-over-year, driven by growth in pre-campaign activation across programmatic, social, and CTV.

DoubleVerify reported strong third-quarter results with revenue increasing by 35% year-over-year to $112.3 million. The growth was fueled by continued momentum in programmatic activation and Social and CTV measurement. They also raised the midpoint of full-year 2022 guidance range to 36% total revenue growth and 31% adjusted EBITDA margins.

  • Total revenue increased 35% year-over-year to $112.3 million.
  • Activation revenue increased 48% to $62.2 million.
  • Measurement revenue increased 14% to $38.8 million.
  • Achieved net income of $10.3 million and adjusted EBITDA of $34.0 million, representing a 30% adjusted EBITDA margin.

Headline financials

Total Revenue

$112M

Previous: $83.1M+35.1%
EPS (adj)

$0.06

Previous: $0.05+20.0%
Adjusted EBITDA

$34M

Previous: $26.4M+28.7%
Capital Expenditures

-$27.7M

Previous: -$5.5M-404.1%
Free Cash Flow

-$17.4M

Previous: $2.43M-817.0%
Net Income

$10.3M

Previous: $7.92M+30.4%
Operating Income

$14.4M

Previous: $11.8M+21.9%
Gross Profit

$92.9M

Previous: $69.7M+33.4%
Cash & Equivalents

$243M

Previous: $320M-24.1%
Total Assets

$1B

Previous: $806M+24.2%
Stock-Based Comp

$11M

Previous: $4.85M+126.3%

Revenue & EPS history

DoubleVerify · Revenue · Quarterly

$112M

Q3 2022+35.1%vs Q3 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

DoubleVerify · $101M total across 2 segments · Q3 2022

  • Activation
    $62.2M
  • Measurement
    $38.8M

Forward guidance

DoubleVerify anticipates for the fourth quarter 2022 revenue of $131 to $135 million, a year-over-year increase of 26% at the midpoint. Adjusted EBITDA in the range of $45 to $47 million, representing a 35% margin at the midpoint. For the full year 2022, revenue of $450 to $454 million, a year-over-year increase of 36% at the midpoint. Adjusted EBITDA in the range of $138 to $140 million, representing a 31% margin at the midpoint.

Tailwinds

  • Revenue of $131 to $135 million, a year-over-year increase of 26% at the midpoint.
  • Adjusted EBITDA in the range of $45 to $47 million, representing a 35% margin at the midpoint.
  • Revenue of $450 to $454 million, a year-over-year increase of 36% at the midpoint.
  • Adjusted EBITDA in the range of $138 to $140 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 Q3 2022

Historical avgQ3 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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