DoubleVerify Holdings (NYSE:DV) fell 10% in premarket trading Thursday after the company offered softer-than-expected FQ1 2024 and full-year guidance.
For the fiscal Q4 2023, the software company reported earnings per share (EPS) at $0.41, topping the consensus estimates of $0.21. Revenue was reported at $172.2 million, slightly above the consensus estimate of $171.85 million.
DoubleVerify’s adjusted EBITDA margin for the quarter stood at 33%.
Looking ahead, DoubleVerify has provided its revenue outlook for the first quarter of 2024, projecting it to be between $136 million and $140 million. This forecast is below the market consensus, which anticipated $147 million.
For the full year of 2024, DV expects its revenue to be in the range of $688 million to $704 million, again falling short of the $707.8 million projected by analysts.
Analysts at KeyBanc Capital Markets reiterated an Overweight rating on DV after the report, but trimmed the target price from $48 to $45.
“Fundamentally, DV is off to a slower start in 2024 due to new customers ramping spend, but this sounds like a timing issue. However, investors are likely to anchor on competitor IAS's comments around price cuts, which could weigh on the NT multiple,” analysts said.
“While we acknowledge this will take a quarter or two to resolve, we believe patient investors will be rewarded with a 20%+ revenue grower with 30% + EBITDA margin,” they added.