DoubleVerify Holdings (DV) AI Stock Analysis

• Market Cap: $1.70B
• Dividend Yield: N/A
• Average Volume (3M): 1.94M
• Price to Earnings (P/E): 39.8
• Beta (1Y): 0.96
• Revenue Growth: 14.86%
• EPS Growth: -30.25%
• Country: US
• Employees: 1,197
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.06
• Shares Outstanding: 161,107,210
• 10 Day Avg. Volume: 1,872,049
• 30 Day Avg. Volume: 1,935,067
• PEG Ratio: -2.50
• Price to Book (P/B): 3.02
• Price to Sales (P/S): 4.99
• P/FCF Ratio: 24.72
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 2.59
• Enterprise Value/Gross Profit: 3.15
• Enterprise Value/Ebitda: 13.71
• 1Y Price Target: $14.92
• Price Target Upside: 41.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): 0.49
• Revenue Forecast (FY): $829.89M

• Rating: 71 Outperform
• Price Target: $11.50 ▲(8.90% Upside)

DoubleVerify Holdings benefits from strong financial performance and positive earnings call highlights, including robust revenue growth and AI-driven efficiencies. However, technical indicators suggest bearish momentum, and the stock's valuation appears high, which could limit upside potential.

Positive Factors

Revenue Growth

DoubleVerify's consistent revenue growth reflects its strong market position and effective execution of growth initiatives, contributing to long-term business sustainability.

AI and Automation

The integration of AI and automation enhances operational efficiency, providing a durable competitive advantage and supporting margin expansion over time.

Customer Retention

Strong customer retention indicates high satisfaction and loyalty, ensuring stable revenue streams and reducing the cost of acquiring new customers.

Negative Factors

Retail Industry Softness

Challenges in the retail sector may limit growth opportunities, affecting revenue diversification and exposing the company to sector-specific risks.

International Revenue Growth

Limited international growth suggests challenges in expanding globally, which could hinder the company's ability to capitalize on broader market opportunities.

Leadership Transition

Leadership changes can lead to strategic shifts and potential disruptions, impacting continuity and execution of long-term strategic plans.

DoubleVerify Holdings Business Overview & Revenue Model

Company Description

DoubleVerify 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 Money

DoubleVerify generates revenue primarily through its subscription-based model, where clients pay for access to its suite of verification and analytics tools. The company has multiple key revenue streams, including fees for its brand safety and fraud detection services, which are charged based on the volume of ads verified or the number of impressions measured. In addition, DoubleVerify partners with major advertising platforms and agencies, which helps drive adoption of its services and expand its customer base. The company's strong relationships within the digital advertising ecosystem, along with the increasing demand for transparency and accountability in online advertising, contribute to its earnings growth.

DoubleVerify Holdings Financial Statement Overview

Summary

DoubleVerify Holdings shows strong revenue growth and profitability, supported by a solid balance sheet with low leverage. However, the decline in free cash flow growth needs attention.

Income Statement

DoubleVerify Holdings has demonstrated consistent revenue growth with a TTM revenue growth rate of 2.67%. The company maintains strong profitability, evidenced by a gross profit margin of 82.10% and a net profit margin of 7.38% in the TTM period. However, there is a slight decline in EBIT and EBITDA margins compared to previous years, indicating potential cost pressures.

Balance Sheet

The company maintains a solid financial position with a low debt-to-equity ratio of 0.095, suggesting prudent leverage management. The return on equity is moderate at 4.86%, indicating efficient use of equity capital. The equity ratio stands at a healthy level, reflecting a strong asset base supported by equity.

Cash Flow

Operating cash flow to net income ratio is robust at 1.71, indicating strong cash generation relative to net income. However, the free cash flow growth rate is negative at -6.24%, which could signal challenges in sustaining cash flow growth. The free cash flow to net income ratio remains healthy at 0.84, suggesting effective conversion of earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	733.32M	656.85M	572.54M	452.42M	332.74M	243.92M
Gross Profit	601.45M	540.33M	465.91M	374.55M	278.36M	208.17M
EBITDA	138.35M	135.12M	137.83M	94.60M	57.28M	46.84M
Net Income	44.72M	56.23M	71.47M	43.27M	29.31M	20.45M
Balance Sheet
Total Assets	1.30B	1.28B	1.24B	1.04B	892.19M	511.33M
Cash, Cash Equivalents and Short-Term Investments	200.73M	310.63M	310.13M	267.81M	221.59M	33.35M
Total Debt	103.11M	91.67M	86.39M	83.75M	4.55M	26.96M
Total Liabilities	219.65M	192.75M	169.09M	160.17M	93.13M	94.64M
Stockholders Equity	1.08B	1.08B	1.07B	876.86M	799.07M	416.69M
Cash Flow
Free Cash Flow	140.53M	132.51M	102.73M	54.88M	73.35M	10.89M
Operating Cash Flow	175.84M	159.66M	119.74M	94.86M	82.75M	20.64M
Investing Cash Flow	-69.10M	-44.84M	-84.25M	-39.98M	-158.61M	-9.75M
Financing Cash Flow	-219.98M	-129.45M	6.49M	-7.88M	264.39M	10.96M

DoubleVerify Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 10.56 is below the 20-day moving average (MA) of 11.14, below the 50-day MA of 10.85, and below the 200-day MA of 13.07, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 39.50 is Neutral, neither overbought nor oversold. The STOCH value of 11.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DV.

DoubleVerify Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CXM	77 Outperform	$1.72B	15.65	21.35%	―	6.48%	168.94%
DV	71 Outperform	$1.70B	39.84	4.05%	―	14.86%	-30.25%
OPFI	67 Neutral	$864.49M	-12.86	9.19%	―	9.63%	-112.71%
DSP	65 Neutral	$745.46M	475.00	4.45%	―	22.97%	49.49%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
BMBL	51 Neutral	$411.50M	-1.87	-25.34%	―	-7.43%	61.36%