DoubleVerify Reports Second Quarter 2025 Financial Results
Delivered
Drove Double-Digit Growth Across All Three Revenue Lines: Activation +
Raised Full-Year 2025 Revenue Growth Guidance to ~
“We drove
Second Quarter 2025 Financial Highlights:
(All comparisons are to the second quarter of 2024)
-
Total revenue of
, an increase of$189.0 million 21% . -
Activation revenue of
, an increase of$108.9 million 25% . -
Measurement revenue of
, an increase of$62.9 million 15% .-
Social measurement revenue increased by
14% . -
International measurement revenue increased by
8% . -
Media Transactions Measured (“MTM”) for CTV increased by
45% .
-
Social measurement revenue increased by
-
Supply-side revenue of
, an increase of$17.2 million 26% . -
Net income of
and adjusted EBITDA of$8.8 million , which represented a$57.3 million 30% adjusted EBITDA margin.
Second Quarter and Recent Business Highlights:
-
Grew Total Advertiser revenue by
21% year-over-year in the second quarter.-
MTM increased by
19% year-over-year, and Measured Transaction Fee (MTF) declined1% year-over-year, excluding the impact of an introductory fixed fee deal for one large customer.
-
MTM increased by
-
Continued to achieve a Gross Revenue Retention rate of over
95% in the second quarter. -
Drove global market share growth through product upsells, international expansion, and new enterprise logo wins. Notable second-quarter new business wins include:
- New enterprise customer wins: Banco do Brasil, Emaar, Haribo, Lidl, Premier Inn, Puma, Riyadh Air, Sage, Six Flags, Tractor Supply, TransUnion
- Expansions: Fidelity, Kroger, Allwyn Group
- Expanded brand suitability measurement coverage on Meta across proprietary categories, uniting pre-screen controls with post-bid AI-powered reporting to improve transparency and performance.
- Introduced DV Authentic AdVantage, the market’s first integrated activation, optimization, and measurement solution built to deliver brand protection without compromising performance, and started beta trials with several top 100 customers.
- Launched DV Authentic Attention® for Social on Snap, the first solution to combine ad exposure and eye-tracking data at the impression level to give advertisers unmatched visibility into user engagement on the platform.
- Announced a partnership with Lyft to authenticate in-app ads, bringing DV’s full measurement suite, including Authentic Attention, to Lyft’s North American advertising platform.
“Our second-quarter results reflect strong and balanced execution across the business, with both revenue and adjusted EBITDA exceeding the high-end of the guidance we raised at Innovation Day,” said Nicola Allais, CFO of DoubleVerify. “We delivered robust double-digit growth across all three revenue lines, led by strong performance in activation and supply-side, and continued expansion in measurement, supported by greater momentum in Social. With
Third Quarter and Full-Year 2025 Guidance:
DoubleVerify anticipates Revenue and Adjusted EBITDA to be in the following ranges:
Third Quarter 2025:
-
Revenue in the range of
and$188 , a year-over-year increase of$192 million 12% at the midpoint. -
Adjusted EBITDA in the range of
and$60 , representing a$64 million 33% margin at the midpoint.
Full Year 2025:
-
Revenue growth of approximately
15% . -
Adjusted EBITDA margin of approximately
32% .
With respect to the Company’s expectations under "Third Quarter and Full Year 2025 Guidance" above, the Company has not reconciled the non-GAAP measure Adjusted EBITDA to the GAAP measure net income in this press release because the Company does not provide guidance for 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. In addition, the Company believes such a reconciliation would imply a degree of precision that could be confusing or misleading to investors.
Conference Call, Webcast, and Other Information
DoubleVerify will host a conference call and live webcast to discuss its second quarter 2025 financial results at 4:30 p.m. Eastern Time today, August 5, 2025. To access the conference call, dial (800) 715-9871 for the
In addition, DoubleVerify plans to post certain additional historical quarterly financial information on the investor relations portion of its website for easy access to investors.
Key Business Terms
Activation revenue is generated from the evaluation, verification, and measurement of advertising impressions purchased through programmatic demand-side and social media platforms.
Measurement revenue is generated from the verification and measurement of advertising impressions that are directly purchased on digital media properties, including publishers, CTV, and social media 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 thousand Media Transactions Measured.
International Revenue Growth Rates are inclusive of foreign currency fluctuations.
DoubleVerify Holdings, Inc. |
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
||||||||
|
|
As of |
|
As of |
||||
(in thousands, except per share data) |
|
June 30, 2025 |
|
December 31, 2024 |
||||
Assets: |
|
|
|
|
|
|
||
Current assets |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
211,784 |
|
|
$ |
292,820 |
|
Short-term investments |
|
|
5,002 |
|
|
|
17,805 |
|
Trade receivables, net of allowances for doubtful accounts of |
|
|
188,866 |
|
|
|
226,225 |
|
Prepaid expenses and other current assets |
|
|
56,709 |
|
|
|
22,201 |
|
Total current assets |
|
|
462,361 |
|
|
|
559,051 |
|
Property, plant and equipment, net |
|
|
91,886 |
|
|
|
70,195 |
|
Operating lease right-of-use assets, net |
|
|
67,547 |
|
|
|
67,721 |
|
Goodwill |
|
|
516,587 |
|
|
|
427,621 |
|
Intangible assets, net |
|
|
116,068 |
|
|
|
110,356 |
|
Deferred tax assets |
|
|
31,298 |
|
|
|
35,488 |
|
Other non-current assets |
|
|
11,181 |
|
|
|
5,778 |
|
Total assets |
|
$ |
1,296,928 |
|
|
$ |
1,276,210 |
|
Liabilities and Stockholders' Equity: |
|
|
|
|
|
|
||
Current liabilities |
|
|
|
|
|
|
||
Trade payables |
|
$ |
13,123 |
|
|
$ |
11,598 |
|
Accrued expenses |
|
|
58,855 |
|
|
|
54,532 |
|
Operating lease liabilities, current |
|
|
10,308 |
|
|
|
11,048 |
|
Income tax liabilities |
|
|
683 |
|
|
|
15,592 |
|
Current portion of finance lease obligations |
|
|
7,813 |
|
|
|
2,512 |
|
Other current liabilities |
|
|
14,119 |
|
|
|
8,200 |
|
Total current liabilities |
|
|
104,901 |
|
|
|
103,482 |
|
Operating lease liabilities, non-current |
|
|
77,569 |
|
|
|
77,297 |
|
Finance lease obligations |
|
|
7,937 |
|
|
|
812 |
|
Deferred tax liabilities |
|
|
8,572 |
|
|
|
8,509 |
|
Other non-current liabilities |
|
|
7,934 |
|
|
|
2,651 |
|
Total liabilities |
|
|
206,913 |
|
|
|
192,751 |
|
Commitments and contingencies (Note 15) |
|
|
|
|
|
|
||
Stockholders’ equity |
|
|
|
|
|
|
||
Common stock, |
|
|
176 |
|
|
|
174 |
|
Additional paid-in capital |
|
|
1,028,443 |
|
|
|
974,383 |
|
Treasury stock, at cost, 12,330 shares and 6,934 shares as of June 30, 2025 and December 31, 2024, respectively |
|
|
(217,121 |
) |
|
|
(131,620 |
) |
Retained earnings |
|
|
266,333 |
|
|
|
255,214 |
|
Accumulated other comprehensive income (loss), net of income taxes |
|
|
12,184 |
|
|
|
(14,692 |
) |
Total stockholders’ equity |
|
|
1,090,015 |
|
|
|
1,083,459 |
|
Total liabilities and stockholders' equity |
|
$ |
1,296,928 |
|
|
$ |
1,276,210 |
|
DoubleVerify Holdings, Inc. |
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED) |
||||||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
(in thousands, except per share data) |
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||
Revenue |
|
$ |
189,021 |
|
|
$ |
155,890 |
|
|
$ |
354,082 |
|
|
$ |
296,672 |
|
Cost of revenue (exclusive of depreciation and amortization shown separately below) |
|
|
33,126 |
|
|
|
26,102 |
|
|
|
64,092 |
|
|
|
52,720 |
|
Product development |
|
|
47,203 |
|
|
|
39,806 |
|
|
|
91,920 |
|
|
|
76,200 |
|
Sales, marketing and customer support |
|
|
50,871 |
|
|
|
44,863 |
|
|
|
94,572 |
|
|
|
82,735 |
|
General and administrative |
|
|
29,576 |
|
|
|
23,066 |
|
|
|
56,103 |
|
|
|
45,141 |
|
Depreciation and amortization |
|
|
14,697 |
|
|
|
11,004 |
|
|
|
27,084 |
|
|
|
21,932 |
|
Income from operations |
|
|
13,548 |
|
|
|
11,049 |
|
|
|
20,311 |
|
|
|
17,944 |
|
Interest expense |
|
|
443 |
|
|
|
233 |
|
|
|
863 |
|
|
|
465 |
|
Other income, net |
|
|
(2,105 |
) |
|
|
(2,064 |
) |
|
|
(5,284 |
) |
|
|
(4,336 |
) |
Income before income taxes |
|
|
15,210 |
|
|
|
12,880 |
|
|
|
24,732 |
|
|
|
21,815 |
|
Income tax expense |
|
|
6,452 |
|
|
|
5,406 |
|
|
|
13,613 |
|
|
|
7,185 |
|
Net income |
|
$ |
8,758 |
|
|
$ |
7,474 |
|
|
$ |
11,119 |
|
|
$ |
14,630 |
|
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
0.05 |
|
|
$ |
0.04 |
|
|
$ |
0.07 |
|
|
$ |
0.09 |
|
Diluted |
|
$ |
0.05 |
|
|
$ |
0.04 |
|
|
$ |
0.07 |
|
|
$ |
0.08 |
|
Weighted-average common stock outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
162,740 |
|
|
|
171,628 |
|
|
|
163,922 |
|
|
|
171,467 |
|
Diluted |
|
|
166,697 |
|
|
|
175,961 |
|
|
|
167,813 |
|
|
|
176,850 |
|
Comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income |
|
$ |
8,758 |
|
|
$ |
7,474 |
|
|
$ |
11,119 |
|
|
$ |
14,630 |
|
Other comprehensive income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign currency cumulative translation adjustment |
|
|
19,383 |
|
|
|
(1,814 |
) |
|
|
26,876 |
|
|
|
(6,439 |
) |
Total comprehensive income |
|
$ |
28,141 |
|
|
$ |
5,660 |
|
|
$ |
37,995 |
|
|
$ |
8,191 |
|
DoubleVerify Holdings, Inc. |
|||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED) |
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated Other |
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
Additional |
|
|
|
|
Comprehensive |
|
Total |
||||||||
|
|
Common Stock |
|
Treasury Stock |
|
Paid-in |
|
Retained |
|
Income (Loss) |
|
Stockholders’ |
|||||||||||||||
(in thousands) |
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Capital |
|
Earnings |
|
Net of Income Taxes |
|
Equity |
|||||||||||
Balance as of January 1, 2025 |
|
174,003 |
|
$ |
174 |
|
6,934 |
|
|
$ |
(131,620 |
) |
|
$ |
974,383 |
|
|
$ |
255,214 |
|
$ |
(14,692 |
) |
|
$ |
1,083,459 |
|
Foreign currency translation adjustment |
|
— |
|
|
— |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
7,493 |
|
|
|
7,493 |
|
Shares repurchased for settlement of employee tax withholdings |
|
— |
|
|
— |
|
210 |
|
|
|
(3,210 |
) |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
(3,210 |
) |
Stock-based compensation expense |
|
— |
|
|
— |
|
— |
|
|
|
— |
|
|
|
25,080 |
|
|
|
— |
|
|
— |
|
|
|
25,080 |
|
Common stock issued upon exercise of stock options |
|
58 |
|
|
— |
|
— |
|
|
|
— |
|
|
|
222 |
|
|
|
— |
|
|
— |
|
|
|
222 |
|
Common stock issued upon vesting of restricted stock units |
|
641 |
|
|
1 |
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
— |
|
|
|
— |
|
Common stock issued upon vesting of performance stock units |
|
71 |
|
|
— |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
Shares repurchased under the Repurchase Program and New Repurchase Program |
|
— |
|
|
— |
|
5,169 |
|
|
|
(82,240 |
) |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
(82,240 |
) |
Excise tax on shares repurchased |
|
— |
|
|
— |
|
— |
|
|
|
(64 |
) |
|
|
(668 |
) |
|
|
— |
|
|
— |
|
|
|
(732 |
) |
Treasury stock reissued upon settlement of equity awards |
|
— |
|
|
— |
|
(18 |
) |
|
|
350 |
|
|
|
(350 |
) |
|
|
— |
|
|
— |
|
|
|
— |
|
Net income |
|
— |
|
|
— |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,361 |
|
|
— |
|
|
|
2,361 |
|
Balance as of March 31, 2025 |
|
174,773 |
|
|
175 |
|
12,295 |
|
|
|
(216,784 |
) |
|
|
998,666 |
|
|
|
257,575 |
|
|
(7,199 |
) |
|
|
1,032,433 |
|
Foreign currency translation adjustment |
|
— |
|
|
— |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
19,383 |
|
|
|
19,383 |
|
Shares repurchased for settlement of employee tax withholdings |
|
— |
|
|
— |
|
35 |
|
|
|
(494 |
) |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
(494 |
) |
Stock-based compensation expense |
|
— |
|
|
— |
|
— |
|
|
|
— |
|
|
|
28,053 |
|
|
|
— |
|
|
— |
|
|
|
28,053 |
|
Common stock issued under employee purchase plan |
|
135 |
|
|
— |
|
— |
|
|
|
— |
|
|
|
1,577 |
|
|
|
— |
|
|
— |
|
|
|
1,577 |
|
Common stock issued upon exercise of stock options |
|
29 |
|
|
— |
|
— |
|
|
|
— |
|
|
|
148 |
|
|
|
— |
|
|
— |
|
|
|
148 |
|
Common stock issued upon vesting of restricted stock units |
|
954 |
|
|
1 |
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
— |
|
|
|
— |
|
Common stock issued upon vesting of performance stock units |
|
14 |
|
|
— |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
Excise tax on shares repurchased |
|
— |
|
|
— |
|
— |
|
|
|
157 |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
157 |
|
Net income |
|
— |
|
|
— |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8,758 |
|
|
— |
|
|
|
8,758 |
|
Balance as of June 30, 2025 |
|
175,905 |
|
$ |
176 |
|
12,330 |
|
|
$ |
(217,121 |
) |
|
$ |
1,028,443 |
|
|
$ |
266,333 |
|
$ |
12,184 |
|
|
$ |
1,090,015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Balance as of January 1, 2024 |
|
171,168 |
|
$ |
171 |
|
22 |
|
|
$ |
(743 |
) |
|
$ |
878,331 |
|
|
$ |
198,983 |
|
$ |
(2,803 |
) |
|
$ |
1,073,939 |
|
Foreign currency translation adjustment |
|
— |
|
|
— |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
(4,625 |
) |
|
|
(4,625 |
) |
Shares repurchased for settlement of employee tax withholdings |
|
— |
|
|
— |
|
48 |
|
|
|
(1,792 |
) |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
(1,792 |
) |
Stock-based compensation expense |
|
— |
|
|
— |
|
— |
|
|
|
— |
|
|
|
20,718 |
|
|
|
— |
|
|
— |
|
|
|
20,718 |
|
Common stock issued upon exercise of stock options |
|
153 |
|
|
— |
|
— |
|
|
|
— |
|
|
|
1,695 |
|
|
|
— |
|
|
— |
|
|
|
1,695 |
|
Common stock issued upon vesting of restricted stock units |
|
435 |
|
|
1 |
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
— |
|
|
|
— |
|
Treasury stock reissued upon settlement of equity awards |
|
— |
|
|
— |
|
(38 |
) |
|
|
1,389 |
|
|
|
(1,389 |
) |
|
|
— |
|
|
— |
|
|
|
— |
|
Net income |
|
— |
|
|
— |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,156 |
|
|
— |
|
|
|
7,156 |
|
Balance as of March 31, 2024 |
|
171,756 |
|
|
172 |
|
32 |
|
|
|
(1,146 |
) |
|
|
899,354 |
|
|
|
206,139 |
|
|
(7,428 |
) |
|
|
1,097,091 |
|
Foreign currency translation adjustment |
|
— |
|
|
— |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
(1,814 |
) |
|
|
(1,814 |
) |
Shares repurchased for settlement of employee tax withholdings |
|
— |
|
|
— |
|
30 |
|
|
|
(660 |
) |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
(660 |
) |
Stock-based compensation expense |
|
— |
|
|
— |
|
— |
|
|
|
— |
|
|
|
25,315 |
|
|
|
— |
|
|
— |
|
|
|
25,315 |
|
Common stock issued under employee purchase plan |
|
124 |
|
|
— |
|
— |
|
|
|
— |
|
|
|
1,914 |
|
|
|
— |
|
|
— |
|
|
|
1,914 |
|
Common stock issued upon exercise of stock options |
|
126 |
|
|
— |
|
— |
|
|
|
— |
|
|
|
870 |
|
|
|
— |
|
|
— |
|
|
|
870 |
|
Common stock issued upon vesting of restricted stock units |
|
628 |
|
|
1 |
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
— |
|
|
|
— |
|
Shares repurchased under the Repurchase Program |
|
— |
|
|
— |
|
1,369 |
|
|
|
(25,027 |
) |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
(25,027 |
) |
Treasury stock reissued upon settlement of equity awards |
|
— |
|
|
— |
|
(41 |
) |
|
|
1,390 |
|
|
|
(1,390 |
) |
|
|
— |
|
|
— |
|
|
|
— |
|
Net income |
|
— |
|
|
— |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,474 |
|
|
— |
|
|
|
7,474 |
|
Balance as of June 30, 2024 |
|
172,634 |
|
$ |
173 |
|
1,390 |
|
|
$ |
(25,443 |
) |
|
$ |
926,062 |
|
|
$ |
213,613 |
|
$ |
(9,242 |
) |
|
$ |
1,105,163 |
|
DoubleVerify Holdings, Inc. |
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
||||||||
|
|
Six Months Ended |
||||||
|
|
June 30, |
||||||
(in thousands) |
|
2025 |
|
2024 |
||||
Operating activities: |
|
|
|
|
|
|
||
Net income |
|
$ |
11,119 |
|
|
$ |
14,630 |
|
Adjustments to reconcile net income to net cash provided by operating activities |
|
|
|
|
|
|
||
Bad debt expense |
|
|
1,499 |
|
|
|
1,453 |
|
Depreciation and amortization expense |
|
|
27,084 |
|
|
|
21,932 |
|
Amortization of debt issuance costs |
|
|
217 |
|
|
|
147 |
|
Non-cash lease expense |
|
|
3,905 |
|
|
|
3,191 |
|
Deferred taxes |
|
|
298 |
|
|
|
(11,530 |
) |
Stock-based compensation expense |
|
|
51,349 |
|
|
|
44,956 |
|
Interest expense (income), net |
|
|
255 |
|
|
|
(784 |
) |
Loss on disposal of fixed assets |
|
|
89 |
|
|
|
— |
|
Other |
|
|
(419 |
) |
|
|
1,582 |
|
Changes in operating assets and liabilities, net of effects of business combinations |
|
|
|
|
|
|
||
Trade receivables |
|
|
40,951 |
|
|
|
16,397 |
|
Prepaid expenses and other assets |
|
|
(32,762 |
) |
|
|
(17,208 |
) |
Trade payables |
|
|
638 |
|
|
|
(2,076 |
) |
Accrued expenses and other liabilities |
|
|
(16,947 |
) |
|
|
(5,035 |
) |
Net cash provided by operating activities |
|
|
87,276 |
|
|
|
67,655 |
|
Investing activities: |
|
|
|
|
|
|
||
Purchase of property, plant and equipment |
|
|
(15,813 |
) |
|
|
(13,558 |
) |
Acquisition of businesses, net of cash acquired |
|
|
(82,578 |
) |
|
|
— |
|
Purchase of short-term investments |
|
|
— |
|
|
|
(81,937 |
) |
Proceeds from maturity of short-term investments |
|
|
12,684 |
|
|
|
— |
|
Other investing activities |
|
|
(1,000 |
) |
|
|
— |
|
Net cash used in investing activities |
|
|
(86,707 |
) |
|
|
(95,495 |
) |
Financing activities: |
|
|
|
|
|
|
||
Proceeds from common stock issued upon exercise of stock options |
|
|
370 |
|
|
|
2,565 |
|
Proceeds from common stock issued under employee purchase plan |
|
|
1,577 |
|
|
|
1,914 |
|
Finance lease payments |
|
|
(1,379 |
) |
|
|
(1,562 |
) |
Shares repurchased under the Repurchase Program and New Repurchase Program |
|
|
(82,240 |
) |
|
|
(25,027 |
) |
Payment of excise tax on shares repurchased |
|
|
(668 |
) |
|
|
— |
|
Shares repurchased for settlement of employee tax withholdings |
|
|
(3,704 |
) |
|
|
(2,452 |
) |
Net cash used in financing activities |
|
|
(86,044 |
) |
|
|
(24,562 |
) |
Effect of exchange rate changes on cash and cash equivalents and restricted cash |
|
|
4,547 |
|
|
|
(850 |
) |
Net decrease in cash, cash equivalents, and restricted cash |
|
|
(80,928 |
) |
|
|
(53,252 |
) |
Cash, cash equivalents, and restricted cash - Beginning of period |
|
|
293,741 |
|
|
|
310,257 |
|
Cash, cash equivalents, and restricted cash - End of period |
|
$ |
212,813 |
|
|
$ |
257,005 |
|
|
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
211,784 |
|
|
$ |
256,066 |
|
Restricted cash - current (included in Prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets) |
|
|
37 |
|
|
|
939 |
|
Restricted cash - non-current (included in Other non-current assets on the Condensed Consolidated Balance Sheets) |
|
|
992 |
|
|
|
— |
|
Total cash and cash equivalents and restricted cash |
|
$ |
212,813 |
|
|
$ |
257,005 |
|
Supplemental cash flow information: |
|
|
|
|
|
|
||
Cash paid for taxes |
|
$ |
55,762 |
|
|
$ |
29,491 |
|
Cash paid for interest |
|
$ |
500 |
|
|
$ |
350 |
|
Non-cash investing and financing activities: |
|
|
|
|
|
|
||
Right-of-use assets obtained in exchange for new operating lease liabilities, net of impairments and tenant improvement allowances |
|
$ |
2,168 |
|
|
$ |
9,211 |
|
Acquisition of equipment under finance lease |
|
$ |
13,805 |
|
|
$ |
— |
|
Capital assets financed by accounts payable and accrued expenses |
|
$ |
249 |
|
|
$ |
18 |
|
Stock-based compensation included in capitalized software development costs |
|
$ |
1,783 |
|
|
$ |
1,064 |
|
Accrued excise tax on net share repurchases |
|
$ |
575 |
|
|
$ |
— |
Comparison of the Three and Six Months Ended June 30, 2025 and June 30, 2024
Revenue
|
Three Months Ended June 30, |
|
Change |
|
Change |
|
Six Months Ended June 30, |
|
Change |
|
Change |
||||||||||||
|
2025 |
|
2024 |
|
$ |
|
% |
|
2025 |
|
2024 |
|
$ |
|
% |
||||||||
|
(In Thousands) |
|
|
|
|
|
|
|
(In Thousands) |
|
|
|
|
|
|
||||||||
Revenue by customer type: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Activation |
$ |
108,950 |
|
$ |
87,471 |
|
$ |
21,479 |
|
25 |
% |
|
$ |
204,121 |
|
$ |
166,793 |
|
$ |
37,328 |
|
22 |
% |
Measurement |
|
62,895 |
|
|
54,817 |
|
|
8,078 |
|
15 |
|
|
|
116,326 |
|
|
104,092 |
|
|
12,234 |
|
12 |
|
Supply-side |
|
17,176 |
|
|
13,602 |
|
|
3,574 |
|
26 |
|
|
|
33,635 |
|
|
25,787 |
|
|
7,848 |
|
30 |
|
Total revenue |
$ |
189,021 |
|
$ |
155,890 |
|
$ |
33,131 |
|
21 |
% |
|
$ |
354,082 |
|
$ |
296,672 |
|
$ |
57,410 |
|
19 |
% |
Adjusted EBITDA
In addition to results determined in accordance with GAAP, management believes that certain non-GAAP financial measures, including Adjusted EBITDA and Adjusted EBITDA Margin, are useful in evaluating our business. Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by total revenue. The following table presents a reconciliation of Adjusted EBITDA, a non-GAAP financial measure, to the most directly comparable financial measure prepared in accordance with GAAP.
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||
|
(In Thousands) |
|
(In Thousands) |
||||||||||||
Net income |
$ |
8,758 |
|
|
$ |
7,474 |
|
|
$ |
11,119 |
|
|
$ |
14,630 |
|
Net income margin |
|
5 |
% |
|
|
5 |
% |
|
|
3 |
% |
|
|
5 |
% |
Depreciation and amortization |
|
14,697 |
|
|
|
11,004 |
|
|
|
27,084 |
|
|
|
21,932 |
|
Stock-based compensation |
|
27,007 |
|
|
|
24,715 |
|
|
|
51,349 |
|
|
|
44,956 |
|
Interest expense |
|
443 |
|
|
|
233 |
|
|
|
863 |
|
|
|
465 |
|
Income tax expense |
|
6,452 |
|
|
|
5,406 |
|
|
|
13,613 |
|
|
|
7,185 |
|
M&A and restructuring costs (recoveries) (a) |
|
504 |
|
|
|
(11 |
) |
|
|
1,666 |
|
|
|
— |
|
Offering and secondary offering costs (b) |
|
— |
|
|
|
10 |
|
|
|
— |
|
|
|
68 |
|
Other costs (c) |
|
1,518 |
|
|
|
— |
|
|
|
1,518 |
|
|
|
— |
|
Other income (d) |
|
(2,105 |
) |
|
|
(2,064 |
) |
|
|
(5,284 |
) |
|
|
(4,336 |
) |
Adjusted EBITDA |
$ |
57,274 |
|
|
$ |
46,767 |
|
|
$ |
101,928 |
|
|
$ |
84,900 |
|
Adjusted EBITDA margin |
|
30 |
% |
|
|
30 |
% |
|
|
29 |
% |
|
|
29 |
% |
(a) |
M &A and restructuring costs for the three and six months ended June 30, 2025 consist of third party professional service costs related to the acquisition of Rockerbox and to our broader acquisition strategy. M&A and restructuring recoveries for the three months ended June 30, 2024 consist of transaction costs related to the acquisition of Scibids. |
|
(b) |
Offering and secondary offering costs for the three and six months ended June 30, 2024 consist of third party costs incurred for underwritten secondary public offerings by certain stockholders of the Company. |
|
(c) |
Other costs for the three and six months ended June 30, 2025 consist of expenses incurred with respect to litigation and regulatory matters outside of the ordinary course and costs related to the early termination of an office lease. |
|
(d) |
Other income for the three and six months ended June 30, 2025 and June 30, 2024 consist of interest income earned on interest-bearing monetary assets, and the impact of changes in foreign currency exchange rates. |
We use Adjusted EBITDA and Adjusted EBITDA Margin as measures of operational efficiency to understand and evaluate our core business operations. We believe that these non-GAAP financial measures are useful to investors for period-to-period comparisons of the core business and for understanding and evaluating trends in operating results on a consistent basis by excluding items that we do not believe are indicative of our core operating performance.
These non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as substitutes for an analysis of our results as reported under GAAP. Some of the limitations of these measures are:
- they do not reflect changes in, or cash requirements for, working capital needs;
- Adjusted EBITDA does not reflect capital expenditures or future requirements for capital expenditures or contractual commitments;
- they do not reflect income tax expense or the cash requirements to pay income taxes;
- they do not reflect interest expense or the cash requirements necessary to service interest or principal debt payments; and
- although depreciation and amortization are non-cash charges related mainly to intangible assets, certain assets being depreciated and amortized will have to be replaced in the future, and Adjusted EBITDA does not reflect any cash requirements for such replacements.
In addition, other companies in the industry may calculate these non-GAAP financial measures differently, therefore limiting their usefulness as a comparative measure. You should compensate for these limitations by relying primarily on our GAAP results and using the non-GAAP financial measures only supplementally.
Total stock-based compensation expense recorded in the Condensed Consolidated Statements of Operations and Comprehensive Income is as follows:
|
|
Three Months Ended |
|
Six Months Ended |
||||||||
|
|
June 30, |
|
June 30, |
||||||||
(in thousands) |
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||
Product development |
|
$ |
10,389 |
|
$ |
9,734 |
|
$ |
19,655 |
|
$ |
17,107 |
Sales, marketing and customer support |
|
|
8,826 |
|
|
7,503 |
|
|
16,455 |
|
|
13,439 |
General and administrative |
|
|
7,792 |
|
|
7,478 |
|
|
15,239 |
|
|
14,410 |
Total stock-based compensation |
|
$ |
27,007 |
|
$ |
24,715 |
|
$ |
51,349 |
|
$ |
44,956 |
Forward-Looking Statements
This press release includes “forward-looking statements”. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “plan,” “seek,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe” or “continue” or the negative thereof or variations thereon or similar terminology. Any statements in this press release regarding future revenues, earnings, margins, financial performance or results of operations (including the guidance provided under “Third Quarter and Full-Year 2025 Guidance”, and any other statements that are not historical facts are forward-looking statements. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. We caution you that the forward-looking information presented in this press release is not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking information contained in this press release. These risks, uncertainties, assumptions and other factors include, but are not limited to, the competitiveness of our solutions amid technological developments or evolving industry standards, the competitiveness of our market, system failures, security breaches, cyberattacks or natural disasters, economic downturns and unstable market conditions, our ability to collect payments, data privacy legislation and regulation, public criticism of digital advertising technology, our international operations, our use of “open source” software, our limited operating history and the potential for our revenues and results of operations to fluctuate in the future. Moreover, we operate in a very competitive and rapidly changing environment, and new risks may emerge from time to time. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make.
Further information on these and additional risks, uncertainties, and other factors that could cause actual outcomes and results to differ materially from those included in or contemplated by the forward-looking statements contained in this press release are included under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K filed with the SEC on February 27, 2025 and other filings and reports we make with the SEC from time to time.
We have based our forward-looking statements on our management’s beliefs and assumptions based on information available to our management at the time the statements are made. Any forward-looking information presented herein is made only as of the date of this press release, and, except as required by law, we do not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.
About DoubleVerify
DoubleVerify (“DV”) (NYSE: DV) is the industry’s leading media effectiveness platform that leverages AI to drive superior outcomes for global brands. By creating more effective, transparent ad transactions, we make the digital advertising ecosystem stronger, safer and more secure, thereby preserving the fair value exchange between buyers and sellers of digital media. Learn more at www.doubleverify.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250805265804/en/
Investor Relations
Tejal Engman
DoubleVerify
IR@doubleverify.com
Media Contact
Chris Harihar
Crenshaw Communications
646-535-9475
chris@crenshawcomm.com
Source: DoubleVerify