NYSE$DV

DoubleVerify Holdings Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Increased revenue and achieved adjusted EBITDA, demonstrating strong financial performance.

DoubleVerify reported a 29% increase in fourth-quarter revenue, reaching $172.2 million. The company's net income was $33.1 million, and adjusted EBITDA was $65.4 million, representing a 38% adjusted EBITDA margin. Growth was driven by strong execution and expansion in social, CTV measurement, and programmatic activation.

  • Total revenue increased by 29% year-over-year to $172.2 million.
  • Social measurement revenue grew by 62% year-over-year.
  • Net income reached $33.1 million, and adjusted EBITDA was $65.4 million with a 38% margin.
  • The company launched brand safety and suitability measurement on Facebook and Instagram Feeds and Reels.

Headline financials

Total Revenue

$172M

Previous: $134M+28.9%
EPS (adj)

$0.19

Previous: $0.11+72.7%
Adjusted EBITDA

$38.00

Previous: $48.9M-100.0%
Capital Expenditures

-$4.7M

Previous: $12.3M-138.3%
Net Income

$33.1M

Previous: $18.1M+82.9%
Operating Income

$37.6M

Previous: $28.6M+31.5%
Gross Profit

$131M

Previous: $111M+17.9%
Stock-Based Comp

$16.5M

Previous: $11.1M+48.6%

Revenue & EPS history

DoubleVerify · Revenue · Quarterly

$172M

Q4 2023+28.9%vs Q4 2022
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 first quarter 2024 revenue of $136 to $140 million, a year-over-year increase of 13% at the midpoint, and adjusted EBITDA in the range of $33 to $37 million, representing a 25% margin at the midpoint. For the full year 2024, the company anticipates revenue of $688 to $704 million, a year-over-year increase of 22% at the midpoint, and adjusted EBITDA in the range of $205 to $221 million, representing a 31% margin at the midpoint.

Tailwinds

  • Revenue of $136 to $140 million, a year-over-year increase of 13% at the midpoint.
  • Adjusted EBITDA in the range of $33 to $37 million, representing a 25% margin at the midpoint.
  • Revenue of $688 to $704 million, a year-over-year increase of 22% at the midpoint.
  • Adjusted EBITDA in the range of $205 to $221 million, representing a 31% margin at the midpoint.
  • Excited about solid pipeline of new and expansionary business opportunities as we continue to meaningfully outpace the digital advertising industry and gain market share.

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 Q4 2023

Historical avgQ4 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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