Doubleverify Holdings, Inc. ((DV)) has held its Q4 earnings call. Read on for the main highlights of the call.
DoubleVerify Holdings, Inc. recently held its earnings call, showcasing a mix of achievements and challenges. The company reported strong revenue growth and impressive customer acquisitions, yet faced hurdles such as a significant customer loss and a Q4 revenue shortfall. Despite these setbacks, DoubleVerify is strategically positioning itself for future growth through investments and product innovations.
Record-Breaking Revenue and Growth
DoubleVerify reported a remarkable 15% year-over-year increase in total revenue, reaching $657 million. This growth was consistent across all three revenue lines, marking a significant achievement for the company.
Billable Media Transactions Increase
The company measured a record $8.3 trillion in billable media transactions, reflecting a 19% increase from the previous year. This growth underscores DoubleVerify’s expanding reach and influence in the media measurement space.
Strong Customer Acquisition
DoubleVerify successfully acquired a substantial number of large global enterprise customers. Notable partnerships include major brands such as P&G, Microsoft, Google, and Kellogg’s, highlighting the company’s robust market presence.
Supply Side Revenue Growth
Driven by demand from retail media platforms, supply side revenue grew by 25% year-over-year. This growth was further supported by an increase in platform and publisher customers.
Successful Social Media Expansion
Social media measurement revenue saw a 27% growth, reaching nearly $110 million. This expansion demonstrates DoubleVerify’s effective penetration into the social media space.
Strong CTV Performance
Connected TV (CTV) measurement impression volumes grew by 66% over the year, with CTV accounting for 11% of total measurement impression volume. This highlights the growing importance of CTV in DoubleVerify’s portfolio.
Q4 Revenue Shortfall
Despite overall growth, Q4 revenue fell short of expectations due to a slowdown in spending from existing customers and a significant reduction in spend from one of the largest customers.
Major Customer Loss
One of DoubleVerify’s largest customers suspended business due to rising commodity costs, impacting revenue by over $20 million. This loss was a notable challenge for the company.
Ad Spend Shifts
There is a continued shift of ad dollars from open web programmatic to proprietary platforms like social media, which limits DoubleVerify’s activation solutions.
Pricing Pressure
Monetary Transaction Fees (MTF) decreased by 4% due to competitive rates and a shift towards measurement and international impressions, presenting a challenge for the company.
Forward-Looking Guidance
Looking ahead to 2025, DoubleVerify anticipates a revenue growth of approximately 10%, driven by new social activation solutions and strategic acquisitions like Rockerbox. The company expects adjusted EBITDA margins to be around 32%, factoring in the integration of Rockerbox and related investments. Despite some headwinds, DoubleVerify is optimistic about future growth, focusing on investments in pre-bid solutions and expansion into performance measurement and optimization.
In conclusion, DoubleVerify’s earnings call painted a picture of a company navigating both growth and challenges. While the revenue growth and customer acquisitions are promising, the company faces hurdles such as customer loss and pricing pressures. Nonetheless, with strategic investments and a focus on innovation, DoubleVerify is poised for continued success in the coming years.