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Sep 30, 2024

DoubleVerify Q3 2024 Earnings Report

Revenue increased driven by double-digit growth across all revenue lines as advertisers and platforms expanded adoption. Net income and adjusted EBITDA were achieved, representing a 35% adjusted EBITDA margin.

Key Takeaways

DoubleVerify reported a strong third quarter in 2024, with an 18% year-over-year increase in revenue to $169.6 million. The company achieved a net income of $18.2 million and an adjusted EBITDA of $60.2 million, representing a 35% adjusted EBITDA margin. The company also announced a new authorization of $200.0 million for additional common stock repurchases.

Total revenue increased by 18% year-over-year to $169.6 million.

Activation revenue increased by 18% year-over-year to $96.8 million.

Measurement revenue increased by 14% year-over-year to $58.5 million, with social measurement revenue up by 21%.

Supply-side revenue increased by 30% year-over-year to $14.3 million.

Total Revenue
$170M
Previous year: $144M
+17.8%
EPS
$0.1
Previous year: $0.08
+25.0%
Adjusted EBITDA
$60.2M
Previous year: $45.7M
+31.6%
Gross Profit
$129M
Previous year: $107M
+20.4%
Cash and Equivalents
$363M
Previous year: $259M
+39.9%
Free Cash Flow
$48.4M
Previous year: $30.9M
+56.7%
Total Assets
$1.31B
Previous year: $1.18B
+11.7%

DoubleVerify

DoubleVerify

DoubleVerify Revenue by Segment

Forward Guidance

DoubleVerify anticipates Revenue and Adjusted EBITDA to be in the following ranges:

Positive Outlook

  • Fourth Quarter 2024 Revenue of $194 to $200 million, a year-over-year increase of 14% at the midpoint.
  • Fourth Quarter 2024 Adjusted EBITDA of $73 to $79 million, representing a 39% margin at the midpoint.
  • Full Year 2024 Revenue of $660 to $666 million, a year-over-year increase of 16% at the midpoint.
  • Full Year 2024 Adjusted EBITDA of $218 to $224 million, representing a 33% margin at the midpoint.
  • Confidence in DV’s long-term growth prospects demonstrated by a new $200 million authorization for further stock repurchases, bringing the total available for share repurchases to $275 million.

Challenges Ahead

  • Moderated brand spending during the U.S. election season.
  • More gradual ramp in social measurement adoption.
  • Potential risks and uncertainties related to DoubleVerify's solutions amid technological developments or evolving industry standards.
  • Economic downturns and unstable market conditions.
  • Potential fluctuations in revenues and results of operations in the future.