DoubleVerify Announces First Quarter 2021 Financial Results
DoubleVerify (“DV”) (NYSE: DV), a leading software platform for digital media measurement, data and analytics, today announced financial results for the first quarter ended March 31, 2021.
“Successfully completing our IPO was an important milestone for DoubleVerify, providing additional capital to further fuel our mission to create a stronger, safer and more secure digital ad ecosystem,” said Mark Zagorski, CEO of DoubleVerify. “We delivered record first quarter revenue, which grew
First Quarter 2021 Financial Highlights:
(All comparisons are to the first quarter of 2020)
-
Total revenue of
$67.6 million , an increase of32% . -
Advertiser Direct revenue of
$27.5 million , an increase of24% .-
Media Transactions Measured (“MTM”) for both CTV and Social increased by approximately
75% .
-
Media Transactions Measured (“MTM”) for both CTV and Social increased by approximately
-
Advertiser Programmatic revenue of
$33.9 million , an increase of42% . -
Supply-Side revenue of
$6.1 million , an increase of18% . -
Net income increased to
$5.6 million , compared to$2.4 million . -
Adjusted EBITDA of
$21.7 million , an increase of41% . -
Diluted earnings per share increased to
$0.04 , compared to$0.02 .
First Quarter 2021 Business Highlights:
- Grew revenue with recently won business at Unilever, UPS, UK Government (via Omnicom UK), Fujifilm Japan and Arnott’s Australia among numerous others.
- Expanded Custom Contextual targeting for programmatic advertisers, including activation on The Trade Desk.
- Expanded international coverage for CTV on Roku, building upon our existing measurement partnership, with plans for further international expansion.
- Continued to grow supply side business, with new customer wins including News Corp, Time, Inc. and Ziff Davis, among others.
- Enhanced the leadership team with the appointment of Julie Eddleman as EVP, Global Chief Commercial Officer (CCO), who will lead the Company’s sales and client service organizations worldwide, and Doug Campbell as Chief Strategy Officer, who will lead corporate strategy and M&A.
- Achieved additional Media Rating Council (MRC) accreditation in CTV for display and video rendered ad impression measurement and sophisticated invalid traffic (SIVT) filtration, including app fraud.
- Launched DV Authentic Attention™, the first privacy-friendly data solution to provide timely, impression-level insights to optimize campaign performance.
- Expanded Brand Safety/Suitability Services on Facebook video products, now offering the widest brand safety/suitability coverage of any provider on the platform.
“DoubleVerify continues to outpace the growth of the digital advertising market and is well positioned to deliver strong revenue growth and profitability in 2021,” said Nicola Allais, CFO of DoubleVerify. “In the first quarter, revenue growth was driven by continued success in launching new products and expanding market share in the programmatic, CTV and Social sectors. Additionally, we maintained strong customer retention in the quarter, evidenced by a gross revenue retention rate of over
Second Quarter and Full-Year 2021 Guidance:
DoubleVerify anticipates Revenue and Adjusted EBITDA to be in the following ranges:
Second quarter 2021:
-
Revenue of
$72 t o$74 million , a year-over-year increase of38% at the midpoint. -
Adjusted EBITDA in the range of
$20 t o$22 million , a year-over-year improvement of34% at the midpoint.
Full year 2021:
-
Revenue of
$322 t o$326 million , a year-over-year increase of33% at the midpoint. -
Adjusted EBITDA in the range of
$103 t o$105 million , a year-over-year increase of42% at the midpoint.
With respect to the Company’s expectations under "Second Quarter and Full Year 2021 Guidance" above, the Company has not reconciled the non-GAAP measure Adjusted EBITDA to the GAAP measure net income (loss) in this press release because the Company does not provide guidance for stock-based compensation expense, depreciation and amortization expense, acquisition-related costs, interest income, and income taxes on a consistent basis as the Company is unable to quantify these amounts without unreasonable efforts, which would be required to include a reconciliation of Adjusted EBITDA to GAAP net income (loss). In addition, the Company believes such a reconciliation would imply a degree of precision that could be confusing or misleading to investors.
Conference Call and Webcast Information
DoubleVerify will host a conference call and live webcast to discuss its first quarter 2021 financial results at 4:30 p.m. Eastern Time today, May 25, 2021. To access the conference call, dial (877) 841-2987 for the U.S. or Canada, or (215) 268-9878 for international callers and provide conference ID 13719679. The webcast will be available live on the Investors section of the Company's website at https://ir.doubleverify.com/. In addition, an archived webcast will be available approximately two hours after the conclusion of the live event.
Key Business Terms
Advertiser Direct revenue is generated from the verification and measurement of advertising impressions that are directly purchased on digital media properties, including publishers and social media platforms.
Advertiser Programmatic revenue is generated from the evaluation, verification and measurement of advertising impressions purchased through programmatic demand-side platforms.
Supply-Side revenue is generated from platforms and publisher partners who use DoubleVerify’s data analytics to evaluate, verify and measure their advertising inventory.
Gross Revenue Retention Rate is the total prior period revenue earned from advertiser customers, less the portion of prior period revenue attributable to lost advertiser customers, divided by the total prior period revenue from advertiser customers.
Media Transactions Measured (MTM) is the volume of media transactions that DoubleVerify’s software platform measures.
Measured Transaction Fee (MTF) is the fixed fee DoubleVerify charges per Media Transaction Measured.
DoubleVerify Holdings, Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
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As of |
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As of |
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(in thousands, except per share data) |
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March 31, 2021 |
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December 31, 2020 |
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Assets: |
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|
|
|
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Current assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
49,815 |
|
$ |
33,354 |
Trade receivables, net of allowances for doubtful accounts of |
|
|
86,798 |
|
|
94,677 |
Prepaid expenses and other current assets |
|
|
12,068 |
|
|
13,904 |
Total current assets |
|
|
148,681 |
|
|
141,935 |
Property, plant and equipment, net |
|
|
18,948 |
|
|
18,107 |
Goodwill |
|
|
227,349 |
|
|
227,349 |
Intangible assets, net |
|
|
117,245 |
|
|
121,710 |
Deferred tax assets |
|
|
82 |
|
|
82 |
Other non-current assets |
|
|
2,089 |
|
|
2,151 |
Total assets |
|
$ |
514,394 |
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$ |
511,334 |
Liabilities and Stockholders' Equity: |
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|
|
|
|
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Current liabilities |
|
|
|
|
|
|
Trade payables |
|
$ |
3,567 |
|
$ |
3,495 |
Accrued expense |
|
|
20,213 |
|
|
25,419 |
Income tax liabilities |
|
|
1,107 |
|
|
1,277 |
Current portion of capital lease obligations |
|
|
2,140 |
|
|
1,515 |
Contingent considerations current |
|
|
1,660 |
|
|
1,198 |
Other current liabilities |
|
|
1,993 |
|
|
1,116 |
Total current liabilities |
|
|
30,680 |
|
|
34,020 |
Long-term debt |
|
|
22,000 |
|
|
22,000 |
Capital lease obligations |
|
|
4,112 |
|
|
3,447 |
Deferred tax liabilities |
|
|
30,090 |
|
|
31,418 |
Other non-current liabilities |
|
|
2,896 |
|
|
3,292 |
Contingent considerations non-current |
|
|
— |
|
|
462 |
Total liabilities |
|
$ |
89,778 |
|
$ |
94,639 |
Commitments and Contingencies |
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|
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Stockholders’ equity |
|
|
|
|
|
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Common stock, |
|
|
140 |
|
|
140 |
Preferred stock, |
|
|
610 |
|
|
610 |
Additional paid-in capital |
|
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623,755 |
|
|
620,679 |
Treasury stock, at cost, 15,146 shares as of March 31, 2021 and December 31, 2020 |
|
|
(260,686) |
|
|
(260,686) |
Retained earnings |
|
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60,585 |
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