NYSE$DV

DoubleVerify Holdings Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Revenue increased driven by double-digit growth across all revenue lines as advertisers and platforms expanded adoption. Net income and adjusted EBITDA were achieved, representing a 35% adjusted EBITDA margin.

DoubleVerify reported a strong third quarter in 2024, with an 18% year-over-year increase in revenue to $169.6 million. The company achieved a net income of $18.2 million and an adjusted EBITDA of $60.2 million, representing a 35% adjusted EBITDA margin. The company also announced a new authorization of $200.0 million for additional common stock repurchases.

  • Total revenue increased by 18% year-over-year to $169.6 million.
  • Activation revenue increased by 18% year-over-year to $96.8 million.
  • Measurement revenue increased by 14% year-over-year to $58.5 million, with social measurement revenue up by 21%.
  • Supply-side revenue increased by 30% year-over-year to $14.3 million.

Headline financials

Total Revenue

$170M

Previous: $144M+17.8%
EPS

$0.10

Previous: $0.08+25.0%
Adjusted EBITDA

$60.2M

Previous: $45.7M+31.6%
Adjusted EBITDA Margin

35.0%

No prior period
Capital Expenditures

-$19.8M

Previous: -$12.3M-60.8%
Free Cash Flow

-$1.59M

Previous: $1.04M-253.3%
Net Income

$18.2M

Previous: $13.3M+36.4%
Operating Income

$25.7M

Previous: $18.2M+41.1%
Gross Profit

$140M

Previous: $118M+19.2%
Cash & Equivalents

$312M

Previous: $259M+20.3%
Total Assets

$1.31B

Previous: $1.18B+11.7%
R&D Expense

$39.3M

Previous: $32.3M+21.6%
Stock-Based Comp

$23M

Previous: $15.8M+45.3%

Revenue & EPS history

DoubleVerify · Revenue · Quarterly

$170M

Q3 2024+17.8%vs Q3 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 Revenue and Adjusted EBITDA to be in the following ranges:

Tailwinds

  • Fourth Quarter 2024 Revenue of $194 to $200 million, a year-over-year increase of 14% at the midpoint.
  • Fourth Quarter 2024 Adjusted EBITDA of $73 to $79 million, representing a 39% margin at the midpoint.
  • Full Year 2024 Revenue of $660 to $666 million, a year-over-year increase of 16% at the midpoint.
  • Full Year 2024 Adjusted EBITDA of $218 to $224 million, representing a 33% margin at the midpoint.
  • Confidence in DV’s long-term growth prospects demonstrated by a new $200 million authorization for further stock repurchases, bringing the total available for share repurchases to $275 million.

Headwinds

  • Moderated brand spending during the U.S. election season.
  • More gradual ramp in social measurement adoption.
  • Potential risks and uncertainties related to DoubleVerify's solutions amid technological developments or evolving industry standards.
  • Economic downturns and unstable market conditions.
  • Potential fluctuations in revenues and results of operations in the future.

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 2024

Historical avgQ3 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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