DoubleVerify (DV) Reports Strong Q2 Earnings Performance

Doubleverify Holdings, Inc. ((DV)) has held its Q2 earnings call. Read on for the main highlights of the call.

DoubleVerify Holdings, Inc. recently held its earnings call, revealing a strong performance marked by significant revenue growth, successful platform launches, and new client acquisitions. Despite facing minor challenges such as a decline in measured transaction fees and macroeconomic uncertainties, the overall sentiment was positive, driven by the company’s robust execution and strategic positioning for future growth.

Strong Revenue Growth

DoubleVerify reported a remarkable 21% year-over-year increase in revenue, reaching $189 million, which surpassed the company’s raised guidance. This growth builds on a 17% increase in the first quarter, with advertiser revenue, which constitutes 91% of the total revenue, also rising by 21% year-over-year.

Successful New Platform Launch

The launch of the Media AdVantage Platform (MAP) has been a success, gaining traction among new and existing customers. This platform is designed to enhance media quality and efficiency, contributing to the company’s strong performance.

Growth Across Key Segments

DoubleVerify experienced significant growth across key segments, with social media revenue increasing by 14% year-over-year, connected TV (CTV) revenue soaring by 45%, and supply-side revenue growing by 26%. These figures highlight the company’s ability to capitalize on diverse revenue streams.

New Client Wins

The company added new enterprise clients from various sectors, including a leading toy and entertainment company and a major global payments platform. These new client wins demonstrate DoubleVerify’s expanding market reach and appeal.

Increased Profitability

DoubleVerify’s adjusted EBITDA grew by 22% year-over-year to $57 million, with a margin increase from 27% in Q1 to 30%. This improvement in profitability underscores the company’s effective cost management and operational efficiency.

Decline in Measured Transaction Fees

While the measured transaction fees (MTF) saw a 1% year-over-year decline, this was an improvement compared to previous periods. The company continues to address this challenge as part of its strategic initiatives.

Macroeconomic Uncertainty

Despite the positive results, DoubleVerify acknowledged ongoing macroeconomic uncertainties and tougher year-over-year comparisons on new customer revenue growth expected in the second half of the year.

Forward-Looking Guidance

Looking ahead, DoubleVerify raised its full-year revenue growth guidance to approximately 15% year-over-year, reflecting its continued momentum and strategic expansion efforts. The company highlighted the contributions of the Media AdVantage Platform (MAP) and the recently acquired Rockerbox asset, alongside new customer wins and expanded engagements with existing clients like Microsoft and Kenvue.

In summary, DoubleVerify Holdings, Inc.’s earnings call painted a positive picture of the company’s current performance and future prospects. With strong revenue growth, successful platform launches, and new client acquisitions, the company is well-positioned for continued success despite minor challenges and macroeconomic uncertainties.