William Blair analyst Arjun Bhatia has maintained their neutral stance on DV stock, giving a Hold rating today.
Arjun Bhatia has given his Hold rating due to a combination of factors impacting DoubleVerify Holdings. The company’s fourth-quarter revenue fell short of expectations, primarily due to the election cycle’s impact on brand advertising spend and a significant reduction in spending by one of its largest customers. This customer, which contributed over $20 million annually, suspended all spending on DV, affecting the company’s revenue projections for 2025.
Furthermore, while there is optimism about potential growth from partnerships like the one with Meta, where DV has recently launched pre-bid avoidance capabilities, the company is in a transition phase. DV aims to rebuild its growth drivers in 2025, focusing on areas such as social, Scibids, CTV, Rockerbox, and sell-side. However, until there is clearer visibility on how these initiatives will enhance monetization and growth, Bhatia remains cautious about recommending the stock, thus the Hold rating.