DoubleVerify 2025 Q1 Earnings Net Income Declines 67%
Generated by AI AgentAinvest Earnings Report Digest
Friday, May 9, 2025 12:21 am ET2min read
DV--
DoubleVerify (DV) reported its fiscal 2025 Q1 earnings on May 08th, 2025. The company's net income for the first quarter saw a significant decline, falling 67% from the same period in 2024. Despite a revenue increase of 17.2%, the earnings per share (EPS) dropped by 75% compared to the previous year, reflecting a challenging quarter for the company. Although the revenue growth was strong, the impact on net income indicates financial hurdles that DVDV-- is addressing through strategic initiatives. DoubleVerify's guidance remains optimistic, with expectations for continued revenue and adjusted EBITDA growth throughout 2025. The company's focus on operational discipline and strategic investments aims to drive long-term value creation and sustained growth.
Revenue
DoubleVerify's revenue for the first quarter of 2025 reached $165.06 million, marking a year-over-year increase of 17.2% from $140.78 million in Q1 2024.
Earnings/Net Income
DoubleVerify's earnings per share (EPS) fell significantly by 75% to $0.01 in 2025 Q1 from $0.04 in 2024 Q1. The company's net income also declined to $2.36 million, representing a 67% decrease from the previous year's $7.16 million. These results suggest a challenging quarter, with EPS performance indicating financial pressure.
Price Action
The stock price of DoubleVerifyDV-- showed positive momentum, climbing 3.21% during the latest trading day, rising 6.64% over the most recent full trading week, and surging 18.34% month-to-date.
Post Earnings Price Action Review
Over the past five years, purchasing DoubleVerify (DV) shares after revenue equaled the previous quarter's revenue and holding them for 30 days resulted in substantial losses. This strategy yielded a return of -66.03%, compared to a benchmark return of 33.42%, resulting in an excess return of -99.45%. The compound annual growth rate (CAGR) stood at -23.47%, highlighting poor performance. The strategy also experienced a high maximum drawdown of -77.71% and a Sharpe ratio of -0.43, indicating unfavorable risk-adjusted returns. With volatility at 55.18%, the strategy presents a high-risk profile. These results underscore the challenges faced by this investment approach, reflecting significant financial risk and volatility in the company's stock performance.
CEO Commentary
"DoubleVerify is off to a strong start in 2025, with first-quarter revenue and adjusted EBITDA meaningfully ahead of expectations," said Mark Zagorski, CEO of DoubleVerify. Growth was driven by broader adoption of verification and activation solutions, faster scaling from new enterprise customers, and momentum with Scibids AI. The CEO highlighted benefits from strategic platform partnerships and opportunities in retail media. Zagorski expressed confidence in sustained product adoption and operational discipline to drive long-term durable growth.
Guidance
DoubleVerify anticipates continued revenue and adjusted EBITDA growth, supported by strong cash flow generation and a debt-free balance sheet. The company maintains cost discipline while prioritizing investments that drive long-term value. With solid execution in Q1 and multiple growth drivers in place, DoubleVerify is positioned to deliver sustained, diversified growth beyond 2025.
Additional News
In March 2025, DoubleVerify acquired Rockerbox, Inc. for $82.6 million, enhancing its capabilities in performance attribution and marketing measurement. Additionally, DoubleVerify repurchased 5.2 million shares in Q1 2025 under its buyback programs, indicating strong shareholder return strategies. The company also expanded its brand safety solutions on TikTok, showcasing continued innovation and commitment to enhancing ad ecosystem safety.
Revenue
DoubleVerify's revenue for the first quarter of 2025 reached $165.06 million, marking a year-over-year increase of 17.2% from $140.78 million in Q1 2024.
Earnings/Net Income
DoubleVerify's earnings per share (EPS) fell significantly by 75% to $0.01 in 2025 Q1 from $0.04 in 2024 Q1. The company's net income also declined to $2.36 million, representing a 67% decrease from the previous year's $7.16 million. These results suggest a challenging quarter, with EPS performance indicating financial pressure.
Price Action
The stock price of DoubleVerifyDV-- showed positive momentum, climbing 3.21% during the latest trading day, rising 6.64% over the most recent full trading week, and surging 18.34% month-to-date.
Post Earnings Price Action Review
Over the past five years, purchasing DoubleVerify (DV) shares after revenue equaled the previous quarter's revenue and holding them for 30 days resulted in substantial losses. This strategy yielded a return of -66.03%, compared to a benchmark return of 33.42%, resulting in an excess return of -99.45%. The compound annual growth rate (CAGR) stood at -23.47%, highlighting poor performance. The strategy also experienced a high maximum drawdown of -77.71% and a Sharpe ratio of -0.43, indicating unfavorable risk-adjusted returns. With volatility at 55.18%, the strategy presents a high-risk profile. These results underscore the challenges faced by this investment approach, reflecting significant financial risk and volatility in the company's stock performance.
CEO Commentary
"DoubleVerify is off to a strong start in 2025, with first-quarter revenue and adjusted EBITDA meaningfully ahead of expectations," said Mark Zagorski, CEO of DoubleVerify. Growth was driven by broader adoption of verification and activation solutions, faster scaling from new enterprise customers, and momentum with Scibids AI. The CEO highlighted benefits from strategic platform partnerships and opportunities in retail media. Zagorski expressed confidence in sustained product adoption and operational discipline to drive long-term durable growth.
Guidance
DoubleVerify anticipates continued revenue and adjusted EBITDA growth, supported by strong cash flow generation and a debt-free balance sheet. The company maintains cost discipline while prioritizing investments that drive long-term value. With solid execution in Q1 and multiple growth drivers in place, DoubleVerify is positioned to deliver sustained, diversified growth beyond 2025.
Additional News
In March 2025, DoubleVerify acquired Rockerbox, Inc. for $82.6 million, enhancing its capabilities in performance attribution and marketing measurement. Additionally, DoubleVerify repurchased 5.2 million shares in Q1 2025 under its buyback programs, indicating strong shareholder return strategies. The company also expanded its brand safety solutions on TikTok, showcasing continued innovation and commitment to enhancing ad ecosystem safety.
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