DoubleVerify (DV) Q2 Earnings call transcript Jul 30, 2024

DoubleVerify's second-quarter financial results showcased robust growth and strategic accomplishments, positioning the company as a leader in media quality and performance solutions. With a focus on social and CTV measurement, along with a sustainable upswing in the supply side platform business, DoubleVerify achieved double-digit revenue growth and exceeded profitability and cash flow expectations.

Key Highlights

1. Double-digit revenue growth across all three revenue lines: activation, measurement, and supply side. 2. Achieved an 83% gross margin and $47 million of adjusted EBITDA, representing a 30% adjusted EBITDA margin. 3. Reached a significant milestone of measuring more video impressions than display impressions and more impressions outside North America than within. 4. Expanded presence in social media measurement, with growth in short-form video on platforms like TikTok, Meta reels, and YouTube shorts. 5. Successfully launched a groundbreaking program level measurement solution for advertisers on OTT devices. 6. Secured numerous RFP wins and enterprise deals, including with Philip Morris, Bacardi, Panera, Anheuser-Busch InBev, British Petroleum, Universal Pictures, Subway, Amazon Books, Dyson, Honda Mobility, JTI, and Ajinomoto. 7. Achieved a strong win rate across all opportunities, with 70% of second-quarter wins being greenfield.

Looking Ahead

With a focus on social media, CTV, retail media networks, and the open web, DoubleVerify is poised for further growth. The company's strategic investments in AI and automation are driving market-defining innovation and expanding its global reach. The anticipated growth in social media, particularly in social pre-screen activation applications, and the expansion of its retail media solutions are key growth drivers for the future.

The recent market developments, including Oracle's decision to shut down Moat and Grapeshot, present opportunities for DoubleVerify to attract new customers and expand its market share. The company's commitment to delivering unparalleled value and driving sustained growth for all stakeholders is a testament to its strong position in the industry.

Conclusion

DoubleVerify's strong second-quarter performance and strategic direction underscore its potential for continued growth and innovation in the media quality and performance solutions sector. With a focus on expanding its presence in social media, CTV, and retail media networks, DoubleVerify is well-positioned to capitalize on the evolving digital advertising landscape and maintain its industry leadership.