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DoubleVerify Holdings (DV)
NYSE:DV
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DoubleVerify Holdings
(NYSE:DV)
66Neutral
Positive Factors
Growth Potential
Several new customers could become top platform spenders over time, underscoring the value of converting new customers into top 10 clients.
Product Development
The launch of Meta pre-bid solutions in February completes the suite of tools required for many top clients to use Brand Safety and Suitability for the first time.
Negative Factors
Client Volatility
Large client volatility continues as a major customer suspended business with DoubleVerify, contributing to a revenue shortfall.
Market Challenges
Digital ad budgets are shifting to CTV, retail media, and social, reducing DoubleVerify’s open web total addressable market.
Revenue Shortfall
In Q4, one of DV’s largest customers dramatically reduced its spend as part of sweeping cost reductions.
DoubleVerify Holdings (DV) vs. S&P 500 (SPY)
Market Cap
$2.34B
Dividend YieldN/A
Average Volume (3M)2.86M
Price to Earnings (P/E)44.2
Beta (1Y)1.24
Revenue Growth14.72%
EPS Growth-22.00%
CountryUS
Employees1,197
SectorTechnology
Sector Strength51
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.32
Shares Outstanding166,011,720
10 Day Avg. Volume2,659,078
30 Day Avg. Volume2,856,628
Financial Highlights & Ratios
PEG Ratio2.84
Price to Book (P/B)N/A
Price to Sales (P/S)3.56
Price to Cash Flow (P/CF)15.60
P/FCF Ratio15.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$20.16Price Target Upside41.08% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering17
DoubleVerify Holdings Business Overview & Revenue Model
Company DescriptionDoubleVerify Holdings, Inc. provides a software platform for digital media measurement, data, and analytics in the United States and internationally. Its solutions provide advertisers unbiased data analytics that enable advertisers to increase the effectiveness, quality and return on their digital advertising investments. The company's solutions include DV Authentic Ad, a metric of digital media quality, which evaluates the existence of fraud, brand safety, viewability, and geography for each digital ad; DV Authentic Attention solution that provides exposure and engagement predictive analytics to drive campaign performance; and Custom Contextual solution, which allows advertisers to match their ads to relevant content to maximize user engagement and drive campaign performance. Its solutions also comprise DV Publisher suite, a solution for digital publishers to manage revenue and increase inventory yield by improving video delivery, identifying lost or unfilled sales, and aggregate data across all inventory sources; and DV Pinnacle, a service and analytics platform user interface that allows its customers to adjust and deploy controls for their media plan and track campaign performance metrics across channels, formats, and devices. The company's software solutions are integrated in the digital advertising ecosystem, including programmatic platforms, connected TV, social media channels, and digital publishers. It serves brands, publishers, and other supply-side customers covering various industry verticals, including consumer packaged goods, financial services, telecommunications, technology, automotive, and healthcare. The company was founded in 2008 and is headquartered in New York, New York.
How the Company Makes MoneyDoubleVerify makes money through a robust revenue model primarily based on service fees charged for its digital advertising verification and measurement solutions. The company generates revenue by providing advertisers, agencies, and publishers with tools that ensure their digital ads are viewable by real people, appear in brand-safe environments, and are measured for effectiveness. Key revenue streams include subscription-based fees for access to its software platform, as well as usage-based fees tied to the volume of ad impressions verified and analyzed. DoubleVerify's strategic partnerships with major digital advertising platforms, including social media networks and programmatic advertising exchanges, also contribute to its earnings by integrating its verification services directly into these platforms, enhancing its reach and adoption across the digital advertising ecosystem.
DoubleVerify Holdings Financial Statement Overview
Summary
DoubleVerify Holdings demonstrates strong financial health with significant revenue growth, robust profit margins, and conservative financial leverage. The income statement, balance sheet, and cash flow statement collectively highlight the company's strong liquidity and financial stability.Income Statement
DoubleVerify Holdings has shown strong revenue growth with a 14.73% increase from 2023 to 2024. The gross profit margin is robust at 82.26%, and the net profit margin stands at 8.56%. However, the EBIT margin has slightly decreased to 12.55%. Overall, the company exhibits strong revenue growth and profitability, though slight declines in operating efficiency are noted.85
Very Positive
Balance Sheet
The company maintains a healthy equity ratio of 84.92%, indicating strong capitalization. The debt-to-equity ratio is low at 0.08, reflecting conservative financial leverage. Return on equity is stable at 5.19%, showing consistent profitability. The balance sheet reflects financial stability with low risk of over-leverage.78
Positive
Cash Flow
Free cash flow has grown by 29.01% from 2023 to 2024, supporting the company's liquidity position. The operating cash flow to net income ratio is favorable at 2.84, indicating efficient cash generation relative to profits. The cash flow statements show strong liquidity and efficient cash conversion.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 656.85M | 572.54M | 452.42M | 332.74M | 243.92M | Gross Profit |
| 540.33M | 465.91M | 374.55M | 278.36M | 208.17M | EBIT |
| 82.42M | 85.73M | 59.02M | 26.68M | 21.36M | EBITDA |
| 135.12M | 137.83M | 94.60M | 57.28M | 46.48M | Net Income Common Stockholders |
| 56.23M | 71.47M | 43.27M | 29.31M | 20.45M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 310.63M | 310.13M | 267.81M | 221.59M | 33.35M | Total Assets |
| 1.28B | 1.24B | 1.04B | 892.19M | 511.33M | Total Debt |
| 91.67M | 86.39M | 83.75M | 4.55M | 26.96M | Net Debt |
| -201.15M | -223.74M | -184.06M | -217.04M | -6.39M | Total Liabilities |
| 192.75M | 169.09M | 160.17M | 93.13M | 94.64M | Stockholders Equity |
| 1.08B | 1.07B | 876.86M | 799.07M | 416.69M |
| Cash Flow | Free Cash Flow | |||
| 132.51M | 102.73M | 54.88M | 73.35M | 11.46M | Operating Cash Flow |
| 159.66M | 119.74M | 94.86M | 82.75M | 21.22M | Investing Cash Flow |
| -44.84M | -84.25M | -39.98M | -158.61M | -9.75M | Financing Cash Flow |
| -129.45M | 6.49M | -7.88M | 264.39M | 10.38M |
DoubleVerify Holdings Technical Analysis
Negative
14.29
Price Trends
18.89
Negative
19.25
Negative
18.93
Negative
Market Momentum
-1.54
Negative
31.65
Neutral
23.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DV, the sentiment is Negative. The current price of 14.29 is below the 20-day moving average (MA) of 15.64, below the 50-day MA of 18.89, and below the 200-day MA of 18.93, indicating a bearish trend. The MACD of -1.54 indicates Negative momentum. The RSI at 31.65 is Neutral, neither overbought nor oversold. The STOCH value of 23.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DV.
DoubleVerify Holdings Risk Analysis
DoubleVerify Holdings disclosed 41 risk factors in its most recent earnings report. DoubleVerify Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
DoubleVerify Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $473.14M | 42.03 | 4.36% | ― | 9.08% | 43.58% | |
66 Neutral | $29.44B | 76.03 | 15.37% | ― | 25.63% | 118.49% | |
66 Neutral | $2.34B | 44.20 | 5.21% | ― | 14.72% | -22.00% | |
64 Neutral | $1.90B | 95.75 | 3.10% | ― | 7.82% | ― | |
61 Neutral | $8.85B | ― | -38.95% | ― | 24.03% | 27.45% | |
58 Neutral | $22.11B | 10.47 | -17.86% | 2.40% | 4.75% | -24.81% | |
45 Neutral | $200.24M | ― | 171.00% | ― | 6.76% | -12.95% |
* Technology Sector Average
Performance Comparison
DV
DoubleVerify Holdings
14.29
-19.09
-57.19%
TCX
Tucows
18.15
0.51
2.89%
MGNI
Magnite
13.28
2.93
28.31%
TTD
Trade Desk
59.34
-28.21
-32.22%
PUBM
PubMatic
9.90
-13.40
-57.51%
CFLT
Confluent
27.30
-3.42
-11.13%
DoubleVerify Holdings Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -34.24% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong revenue growth and customer acquisitions but was tempered by significant challenges, such as a major customer loss and a Q4 revenue shortfall. The company is positioning itself for future growth with strategic investments and product innovations.Highlights
Record-Breaking Revenue and Growth
DoubleVerify grew total revenue by 15% year-over-year to $657 million, with double-digit growth across all three revenue lines.
Billable Media Transactions Increase
Measured a record $8.3 trillion billable media transactions, a 19% increase year-over-year.
Strong Customer Acquisition
Won a significant number of large global enterprise customers, including major partnerships with brands such as P&G, Microsoft, Google, and Kellogg's.
Supply Side Revenue Growth
Supply side revenue grew 25% year-over-year, driven by demand from retail media platforms and a rise in platform and publisher customers.
Successful Social Media Expansion
Social media measurement revenue grew 27% for the year, reaching nearly $110 million.
Strong CTV Performance
CTV measurement impression volumes grew 66% for the year, with CTV accounting for 11% of total measurement impression volume.
Lowlights
Q4 Revenue Shortfall
Q4 revenue fell short of expectations due to a slowdown in spending from existing customers and a sharp reduction in spend from one of the largest customers.
Major Customer Loss
One of DV's largest customers, affected by rising commodity costs, suspended business, impacting revenue by over $20 million.
Ad Spend Shifts
Continued shift of ad dollars from open web programmatic to proprietary platforms like social, limiting DV's activation solutions.
Pricing Pressure
MTF (Monetary Transaction Fees) decreased by 4% due to competitive rates and a shift towards measurement and international impressions.
Company Guidance
During the DoubleVerify Fourth Quarter and Full Year 2024 Earnings Call, the company provided guidance for 2025 with a focus on strategic growth and addressing challenges from the previous year. DoubleVerify reported a 15% year-over-year revenue growth to $657 million in 2024, with significant progress in supply side revenue, which grew 25%, and measured a record $8.3 trillion billable media transactions. However, challenges such as reduced ad spend from key customers and the absence of a post-election rebound in ad spend affected their Q4 performance. For 2025, the company anticipates revenue growth of approximately 10%, driven by new social activation solutions and strategic acquisitions like Rockerbox. They also expect adjusted EBITDA margins to be around 32%, taking into account the integration of Rockerbox and associated investments. Despite isolated headwinds, DoubleVerify remains optimistic about future growth, emphasizing investments in pre-bid solutions across platforms like Meta and TikTok and expansion into performance measurement and optimization.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.