NEW YORK - DoubleVerify Holdings Inc. (NYSE: NYSE:DV), a leading software platform for digital media measurement, data, and analytics, reported its financial results for the second quarter ended June 30, 2024, with mixed outcomes.
The company posted earnings per share (EPS) of $0.04, falling short of analysts' expectations of $0.17. Despite the EPS miss, DoubleVerify's revenue climbed to $155.9 million, surpassing the consensus estimate of $153.79 million and marking a 17% increase compared to the same quarter last year.
The company's stock price declined by 5% following the earnings release, indicating investor concern primarily due to the earnings shortfall. CEO Mark Zagorski attributed the quarter's revenue growth to the company's success in social and CTV measurement and its retail media platform business.
"Our enterprise pipeline has never been stronger, with both greenfield and competitive opportunities set to fuel our resurgent business in the coming quarters," Zagorski commented.
In terms of guidance, DoubleVerify provided an optimistic outlook for the full year 2024, projecting revenue between $667 and $675 million, which hovers around the analyst consensus of $668 million. The mid-point of this guidance suggests a year-over-year revenue increase of 17%.
The second quarter saw DoubleVerify's activation revenue grow by 12% to $87.5 million, while measurement revenue increased by 22% to $54.8 million. Social measurement revenue saw a significant jump of 44%, and international measurement revenue grew by 29%, with notable growth in the EMEA and APAC regions.
The company also reported a net income of $7.5 million and an adjusted EBITDA of $46.8 million, representing a 30% adjusted EBITDA margin.
CFO Nicola Allais expressed confidence in the company's financial performance, stating, "We achieved the high end of our revenue guidance and exceeded our adjusted EBITDA expectations." Allais also highlighted the company's strong performance across multiple product lines and its ability to leverage growth across diverse media environments.
Looking ahead, DoubleVerify anticipates third-quarter revenue to range between $167 and $171 million, with adjusted EBITDA expected to be between $49 and $53 million.
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