DV DoubleVerify Holdings Inc

Increased Fourth Quarter Revenue by 11% Year-over-Year to $190.6 Million

Increased Fourth Quarter Supply-Side Revenue by 34% Year-over-Year

Achieved Fourth Quarter Net Income of $23.4 Million and Adjusted EBITDA of $73.8 Million, Representing a Record 39% Adjusted EBITDA margin

Increased 2024 Revenue by 15% Year-over-Year to $656.8 Million, Driven by Global Growth in Social, CTV Measurement, and Programmatic Activation

Achieved 2024 Net Income of $56.2 Million and Adjusted EBITDA of $218.9 Million, representing a 33% Adjusted EBITDA margin

Agreed to Acquire Rockerbox, a leader in performance attribution, optimization and marketing measurement, to drive greater ROI for advertisers

DoubleVerify (“DV”) (NYSE: DV), the leading software platform for digital media measurement, data and analytics, today announced financial results for the fourth quarter and full year ended December 31, 2024.

“DoubleVerify delivered solid full-year results in 2024, with 15% revenue growth, 33% adjusted EBITDA margins, and continued expansion across CTV, Social, and international markets,” said Mark Zagorski, CEO of DoubleVerify. “Demand for DV’s solutions remained strong, with CTV measurement surging 95% year-over-year and supply-side revenue increasing 34%—reinforcing our leadership in verification and media quality measurement. Despite the variability in the market that we experienced in Q4, largely driven by the absence of a post-election rebound in ad spend, we maintained a strong profit margin while continuing to invest in evolving our solutions to not only enhance advertising brand alignment but also help measure and optimize media effectiveness. Our expected acquisition of Rockerbox is the latest chapter in this evolution. By integrating Rockerbox’s advanced attribution solutions, we are giving advertisers the tools to directly measure and maximize the impact of their media investments. Additionally, Rockerbox helps expand our core value proposition into mid-market, direct response advertisers, a previously untapped segment for DV. Heading into 2025, we are optimistic about future growth opportunities and remain focused on helping advertisers improve media quality and effectiveness, while unlocking measurable ROI in an increasingly complex digital landscape.”

Fourth Quarter 2024 Financial Highlights: (All comparisons are to the fourth quarter of 2023)

• Total revenue of $190.6 million, an increase of 11%.
• Activation revenue of $109.5 million, an increase of 10%.
• Measurement revenue of $64.4 million, an increase of 7%.
  • Social measurement revenue increased by 9%.
  • International measurement revenue increased by 11%, with 10% growth in EMEA and 13% growth in APAC.
  • Media Transactions Measured (“MTM”) for CTV increased by 95%.
• Supply-side revenue of $16.7 million, an increase of 34%.
• Net income of $23.4 million and adjusted EBITDA of $73.8 million, which represented a 39% adjusted EBITDA margin.

Full Year 2024 Financial Highlights: (All comparisons are to the full year 2023)

• Total revenue of $656.8 million, an increase of 15%.
• Media Transactions Measured (MTM) were 8.3 trillion, an increase of 19%, and the Measured Transaction Fee (MTF) was $0.072, a decrease of 4%, excluding the impact of an introductory fixed fee deal for one large customer.
• Net Revenue Retention (NRR) of 112%.
• Activation revenue of $373.1 million, an increase of 13%.
• Measurement revenue of $226.9 million, an increase of 15%.
  • Social measurement revenue increased by 27%.
  • International measurement revenue increased by 22%, with 25% growth in EMEA and 18% growth in APAC.
  • Media Transactions Measured (“MTM”) for CTV increased by 66%.
• Supply-side revenue of $56.8 million, an increase of 25%.
• Net income of $56.2 million and adjusted EBITDA of $218.9 million, which represented a 33% adjusted EBITDA margin.

Fourth Quarter and Recent Business Highlights:

Overall

• Grew Total Advertiser revenue by 9% year-over-year in the fourth quarter.
  • MTM increased by 14% year-over-year and Measured Transaction Fee (MTF) declined 5% year-over-year, excluding the impact of an introductory fixed fee deal for one large customer.

• Continued to achieve a Gross Revenue Retention rate of over 95% in the fourth quarter.

• Drove global market share growth through product upsells, international expansion, and new enterprise logo wins, including Kenvue, Diageo, the FDA, Dollar General, Home Depot, National Bank of Canada, Mattress Firm, Kraken, BetMGM and Bet365.

Social Media Innovations

• Launched content-level avoidance for Meta’s Facebook and Instagram Feeds and Reels. Powered by DV Universal Content Intelligence™, this AI-driven solution empowers advertisers to proactively safeguard brand equity by avoiding unsuitable content and maintaining control over ad placements at scale.

• Launched viewability and invalid traffic (IVT) measurement for display ads on Reels across Facebook, expanding our existing video ad measurement. This enhancement provides advertisers with comprehensive transparency and performance insights across all Reels ad formats.

• Expanded brand safety and suitability coverage on TikTok to over 18 international markets, bringing DV’s TikTok coverage to 64 markets.

• Launched TikTok’s Video Exclusion List Solution, powered by DV in expanded alpha testing, empowering advertisers to proactively exclude videos identified as unsuitable through our reporting, further strengthening our pre-bid protection across social media.

• Expanded viewability and brand safety coverage across additional ad formats on YouTube. These updates provide advertisers with greater transparency and control on one of the world’s largest streaming platforms.

• Launched brand safety and suitability measurement on Snap, delivering comprehensive media quality authentication across the platform. This launch provides advertisers with the tools needed to ensure campaigns align with brand standards and perform effectively.

Open Web Integrations & Expansions

• Launched integrations with Google Ad Manager and on track to roll out Criteo and Index Exchange imminently. These integrations enable programmatic buyers to activate DoubleVerify’s media quality data across both buy and sell-side environments. This integration empowers advertisers to curate inventory at source, meeting their unique benchmarks for context, brand safety, and viewability while driving improved performance at scale.

Share Repurchase Program:

• Repurchased 6.8 million shares for $128.0 million in full-year 2024.
• Repurchased 1.1 million shares for $22.2 million in January 2025.
• $200.0 million available under the New Repurchase Program as of February 27, 2025.

Strategic Investment and Innovation Day:

• Announced an agreement to acquire Rockerbox, Inc. for $85.0 million in cash. Rockerbox is a leader in performance attribution, optimization, and marketing measurement, empowering advertisers to optimize advertising campaigns and maximize their return on investment.

• Announced an in-person Innovation Day for the investment community on Wednesday, June 11, from 1:00 p.m. to 4:00 p.m. at the New York Stock Exchange in New York City. The event will also be webcast live, with an archived replay available the following day.

“In the fourth quarter, we generated $191 million in revenue and achieved a record 39% adjusted EBITDA margin, reflecting the efficiency of our operating model and disciplined approach to growth," said Nicola Allais, CFO of DoubleVerify. "We continue to balance profitability with strategic investments, such as the Rockerbox acquisition, which enhances our ability to drive long-term value for advertisers. With a strong balance sheet and $200 million available under the existing share repurchase program, we have the financial flexibility to execute our growth strategy while delivering sustained value for shareholders in 2025 and beyond.”

First Quarter and Full-Year 2025 Guidance:

DoubleVerify anticipates Revenue and Adjusted EBITDA to be in the following ranges:

First Quarter 2025:

• Revenue in the range of $151 and $155 million, a year-over-year increase of 9% at the midpoint.
• Adjusted EBITDA in the range of $37 and $41 million, representing a 25% margin at the midpoint.

Full Year 2025:

• Revenue growth of approximately 10%.
• Adjusted EBITDA margin of approximately 32%.

With respect to the Company’s expectations under "First 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 fourth quarter and full-year 2024 financial results at 4:30 p.m. Eastern Time today, February 27, 2025. To access the conference call, dial (877) 841-2987 for the U.S. or Canada, or (215) 268-9878 for international callers. The webcast will be available live on the Investors section of the Company’s website at https://ir.doubleverify.com/. An archived webcast will be available approximately two hours after the conclusion of the live event.

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 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.

Net Revenue Retention Rate is the total current period revenue earned from advertiser customers, which were also customers during the entire most recent twelve-month period, divided by the total prior year period revenue earned from the same advertiser customers, excluding a portion of our revenues that cannot be allocated to specific 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.

CONSOLIDATED BALANCE SHEETS

 

 

 

As of December 31,

(in thousands, except per share data)

 

2024

 

2023

Assets:

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

292,820

 

 

$

310,131

 

Short-term investments

 

 

17,805

 

 

 

—

 

Trade receivables, net of allowances for doubtful accounts of $9,003 and $9,442 as of December 31, 2024 and December 31, 2023, respectively

 

 

226,225

 

 

 

206,941

 

Prepaid expenses and other current assets

 

 

22,201

 

 

 

15,930

 

Total current assets

 

 

559,051

 

 

 

533,002

 

Property, plant and equipment, net

 

 

70,195

 

 

 

58,020

 

Operating lease right-of-use assets, net

 

 

67,721

 

 

 

60,470

 

Goodwill

 

 

427,621

 

 

 

436,008

 

Intangible assets, net

 

 

110,356

 

 

 

140,883

 

Deferred tax assets

 

 

35,488

 

 

 

13,077

 

Other non‑current assets

 

 

5,778

 

 

 

1,571

 

Total assets

 

$

1,276,210

 

 

$

1,243,031

 

Liabilities and Stockholders' Equity:

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Trade payables

 

$

11,598

 

 

$

12,932

 

Accrued expense

 

 

54,532

 

 

 

44,264

 

Operating lease liabilities, current

 

 

11,048

 

 

 

9,029

 

Income tax liabilities

 

 

15,592

 

 

 

5,833

 

Current portion of finance lease obligations

 

 

2,512

 

 

 

2,934

 

Other current liabilities

 

 

8,200

 

 

 

8,863

 

Total current liabilities

 

 

103,482

 

 

 

83,855

 

Operating lease liabilities, non-current

 

 

77,297

 

 

 

71,563

 

Finance lease obligations

 

 

812

 

 

 

2,865

 

Deferred tax liabilities

 

 

8,509

 

 

 

8,119

 

Other non‑current liabilities

 

 

2,651

 

 

 

2,690

 

Total liabilities

 

 

192,751

 

 

 

169,092

 

Commitments and contingencies (Note 16)

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

Common stock, $0.001 par value, 1,000,000 shares authorized, 174,003 shares issued and 167,069 outstanding as of December 31, 2024; 1,000,000 shares authorized, 171,168 shares issued and 171,146 outstanding as of December 31, 2023

 

 

174

 

 

 

171

 

Additional paid‑in capital

 

 

974,383

 

 

 

878,331

 

Treasury stock, at cost, 6,934 shares and 22 shares as of December 31, 2024 and December 31, 2023, respectively

 

 

(131,620

)

 

 

(743

)

Retained earnings

 

 

255,214

 

 

 

198,983

 

Accumulated other comprehensive loss, net of income taxes

 

 

(14,692

)

 

 

(2,803

)

Total stockholders’ equity

 

 

1,083,459

 

 

 

1,073,939

 

Total liabilities and stockholders’ equity

 

$

1,276,210

 

 

$

1,243,031

 

DoubleVerify Holdings, Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

 

 

 

Year Ended December 31,

(in thousands, except per share data)

 

2024

 

2023

 

2022

Revenue

 

$

656,849

 

 

$

572,543

 

 

$

452,418

 

Cost of revenue (exclusive of depreciation and amortization shown separately below)

 

 

116,515

 

 

 

106,631

 

 

 

77,866

 

Product development

 

 

153,046

 

 

 

125,376

 

 

 

95,118

 

Sales, marketing and customer support

 

 

167,506

 

 

 

125,953

 

 

 

107,416

 

General and administrative

 

 

92,147

 

 

 

87,971

 

 

 

78,666

 

Depreciation and amortization

 

 

45,215

 

 

 

40,885

 

 

 

34,328

 

Income from operations

 

 

82,420

 

 

 

85,727

 

 

 

59,024

 

Interest expense

 

 

1,118

 

 

 

1,066

 

 

 

905

 

Other income, net

 

 

(7,488

)

 

 

(11,216

)

 

 

(1,249

)

Income before income taxes

 

 

88,790

 

 

 

95,877

 

 

 

59,368

 

Income tax expense

 

 

32,559

 

 

 

24,411

 

 

 

16,100

 

Net income

 

$

56,231

 

 

$

71,466

 

 

$

43,268

 

Earnings per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.33

 

 

$

0.43

 

 

$

0.26

 

Diluted

 

$

0.32

 

 

$

0.41

 

 

$

0.25

 

Weighted‑average common stock outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

 

170,515

 

 

 

167,803

 

 

 

163,882

 

Diluted

 

 

175,076

 

 

 

173,435

 

 

 

170,755

 

Comprehensive income:

 

 

 

 

 

 

 

 

 

Net income

 

$

56,231

 

 

$

71,466

 

 

$

43,268

 

Other comprehensive (loss) income:

 

 

 

 

 

 

 

 

 

Foreign currency cumulative translation adjustment

 

 

(11,889

)

 

 

3,523

 

 

 

(5,555

)

Total comprehensive income

 

$

44,342

 

 

$

74,989

 

 

$

37,713

 

DoubleVerify Holdings, Inc.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

Comprehensive

 

Total

 

 

Common Stock

 

Treasury Stock

 

Paid‑in

 

Retained

 

Loss,

 

Stockholders’

(in thousands)

 

Shares

 

Amount

 

Shares

 

Amount

 

Capital

 

Earnings

 

Net of Income Taxes

 

Equity

Balances as of January 1, 2022

 

162,347

 

$

162

 

50

 

 

$

(1,802

)

 

$

717,228

 

 

$

84,249

 

$

(771

)

 

$

799,066

 

Foreign currency translation adjustment

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

(5,555

)

 

 

(5,555

)

Shares repurchased for settlement of employee tax withholdings

 

—

 

 

—

 

402

 

 

 

(10,244

)

 

 

—

 

 

 

—

 

 

—

 

 

 

(10,244

)

Stock-based compensation expense

 

—

 

 

—

 

—

 

 

 

—

 

 

 

42,787

 

 

 

—

 

 

—

 

 

 

42,787

 

Common stock issued to non-employees

 

4

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

Common stock issued upon exercise of stock options

 

1,518

 

 

2

 

—

 

 

 

—

 

 

 

5,801

 

 

 

—

 

 

—

 

 

 

5,803

 

Common stock issued upon vesting of restricted stock units

 

1,488

 

 

1

 

—

 

 

 

—

 

 

 

(1

)

 

 

—

 

 

—

 

 

 

—

 

Common stock issued under employee purchase plan

 

91

 

 

—

 

—

 

 

 

—

 

 

 

1,734

 

 

 

—

 

 

—

 

 

 

1,734

 

Treasury stock reissued upon settlement of equity awards

 

—

 

 

—

 

(421

)

 

 

11,250

 

 

 

(11,250

)

 

 

—

 

 

—

 

 

 

—

 

Net income

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

 

43,268

 

 

—

 

 

 

43,268

 

Balances as of December 31, 2022

 

165,448

 

 

165

 

31

 

 

 

(796

)

 

 

756,299

 

 

 

127,517

 

 

(6,326

)

 

 

876,859

 

Foreign currency translation adjustment

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

3,523

 

 

 

3,523

 

Shares repurchased for settlement of employee tax withholdings

 

—

 

 

—

 

142

 

 

 

(4,586

)

 

 

—

 

 

 

—

 

 

—

 

 

 

(4,586

)

Issuance of common stock as consideration for acquisition

 

1,642

 

 

2

 

—

 

 

 

—

 

 

 

52,935

 

 

 

—

 

 

—

 

 

 

52,937

 

Stock-based compensation expense

 

—

 

 

—

 

—

 

 

 

—

 

 

 

60,351

 

 

 

—

 

 

—

 

 

 

60,351

 

Common stock issued under employee purchase plan

 

105

 

 

—

 

—

 

 

 

—

 

 

 

2,723

 

 

 

—

 

 

—

 

 

 

2,723

 

Common stock issued upon exercise of stock options

 

2,634

 

 

3

 

—

 

 

 

—

 

 

 

10,663

 

 

 

—

 

 

—

 

 

 

10,666

 

Common stock issued upon vesting of restricted stock units

 

1,339

 

 

1

 

—

 

 

 

—

 

 

 

(1

)

 

 

—

 

 

—

 

 

 

—

 

Treasury stock reissued upon settlement of equity awards

 

—

 

 

—

 

(151

)

 

 

4,639

 

 

 

(4,639

)

 

 

—

 

 

—

 

 

 

—

 

Net income

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

 

71,466

 

 

—

 

 

 

71,466

 

Balances as of December 31, 2023

 

171,168

 

 

171

 

22

 

 

 

(743

)

 

 

878,331

 

 

 

198,983

 

 

(2,803

)

 

 

1,073,939

 

Foreign currency translation adjustment

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

(11,889

)

 

 

(11,889

)

Shares repurchased for settlement of employee tax withholdings

 

—

 

 

—

 

248

 

 

 

(5,822

)

 

 

—

 

 

 

—

 

 

—

 

 

 

(5,822

)

Stock-based compensation expense

 

—

 

 

—

 

—

 

 

 

—

 

 

 

92,821

 

 

 

—

 

 

—

 

 

 

92,821

 

Common stock issued under employee purchase plan

 

230

 

 

—

 

—

 

 

 

—

 

 

 

3,531

 

 

 

—

 

 

—

 

 

 

3,531

 

Common stock issued upon exercise of stock options

 

408

 

 

—

 

—

 

 

 

—

 

 

 

3,315

 

 

 

—

 

 

—

 

 

 

3,315

 

Common stock issued upon vesting of restricted stock units

 

2,197

 

 

3

 

—

 

 

 

—

 

 

 

(3

)

 

 

—

 

 

—

 

 

 

—

 

Shares repurchased under the Repurchase Program

 

—

 

 

—

 

6,787

 

 

 

(128,667

)

 

 

—

 

 

 

—

 

 

—

 

 

 

(128,667

)

Treasury stock reissued upon settlement of equity awards

 

—

 

 

—

 

(123

)

 

 

3,612

 

 

 

(3,612

)

 

 

—

 

 

—

 

 

 

—

 

Net income

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

 

56,231

 

 

—

 

 

 

56,231

 

Balances as of December 31, 2024

 

174,003

 

$

174

 

6,934

 

 

$

(131,620

)

 

$

974,383

 

 

$

255,214

 

$

(14,692

)

 

$

1,083,459

 

DoubleVerify Holdings, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

Year Ended December 31,

(in thousands)

 

2024

 

2023

 

2022

Operating activities:

 

 

 

 

 

 

 

 

 

Net income

 

$

56,231

 

 

$

71,466

 

 

$

43,268

 

Adjustments to reconcile net income to net cash provided by operating activities

 

 

 

 

 

 

 

 

 

Bad debt expense

 

 

4,993

 

 

 

10,075

 

 

 

5,033

 

Depreciation and amortization expense

 

 

45,215

 

 

 

40,885

 

 

 

34,328

 

Amortization of debt issuance costs

 

 

442

 

 

 

294

 

 

 

294

 

Non-cash lease expense

 

 

7,164

 

 

 

6,727

 

 

 

7,339

 

Deferred taxes

 

 

(21,653

)

 

 

(25,046

)

 

 

(19,581

)

Stock-based compensation expense

 

 

90,658

 

 

 

59,244

 

 

 

42,307

 

Interest expense, net

 

 

60

 

 

 

68

 

 

 

107

 

Loss on disposal of fixed assets

 

 

—

 

 

 

5

 

 

 

1,353

 

Impairment of long-lived assets

 

 

—

 

 

 

—

 

 

 

1,510

 

Change in fair value of contingent consideration

 

 

—

 

 

 

(1,193

)

 

 

—

 

Other

 

 

3,338

 

 

 

492

 

 

 

87

 

Changes in operating assets and liabilities, net of effects of business combinations

 

 

 

 

 

 

 

 

 

Trade receivables

 

 

(26,702

)

 

 

(43,691

)

 

 

(49,765

)

Prepaid expenses and other assets

 

 

(11,352

)

 

 

(5,591

)

 

 

9,094

 

Trade payables

 

 

(1,067

)

 

 

5,476

 

 

 

2,884

 

Accrued expenses and other liabilities

 

 

12,337

 

 

 

530

 

 

 

16,604

 

Net cash provided by operating activities

 

 

159,664

 

 

 

119,741

 

 

 

94,862

 

Investing activities:

 

 

 

 

 

 

 

 

 

Purchase of property, plant and equipment

 

 

(27,149

)

 

 

(17,009

)

 

 

(39,981

)

Acquisition of businesses, net of cash acquired

 

 

—

 

 

 

(67,240

)

 

 

—

 

Purchase of short-term investments

 

 

(99,629

)

 

 

—

 

 

 

—

 

Proceeds from maturity of short-term investments

 

 

81,937

 

 

 

—

 

 

 

—

 

Net cash used in investing activities

 

 

(44,841

)

 

 

(84,249

)

 

 

(39,981

)

Financing activities:

 

 

 

 

 

 

 

 

 

Proceeds from revolving credit facility

 

 

—

 

 

 

50,000

 

 

 

—

 

Payments to revolving credit facility

 

 

—

 

 

 

(50,000

)

 

 

—

 

Payment of contingent consideration related to Zentrick acquisition

 

 

—

 

 

 

—

 

 

 

(3,247

)

Proceeds from common stock issued upon exercise of stock options

 

 

3,315

 

 

 

10,666

 

 

 

5,803

 

Proceeds from common stock issued under employee purchase plan

 

 

3,531

 

 

 

2,723

 

 

 

1,734

 

Payments related to offering costs

 

 

—

 

 

 

—

 

 

 

(6

)

Finance lease payments

 

 

(2,475

)

 

 

(2,314

)

 

 

(1,924

)

Shares repurchased under the Repurchase Program

 

 

(127,999

)

 

 

—

 

 

 

—

 

Shares repurchased for settlement of employee tax withholdings

 

 

(5,822

)

 

 

(4,586

)

 

 

(10,244

)

Net cash (used in) provided by financing activities

 

 

(129,450

)

 

 

6,489

 

 

 

(7,884

)

Effect of exchange rate changes on cash and cash equivalents and restricted cash

 

 

(1,889

)

 

 

338

 

 

 

(784

)

Net (decrease) increase in cash, cash equivalents, and restricted cash

 

 

(16,516

)

 

 

42,319

 

 

 

46,213

 

Cash, cash equivalents, and restricted cash—Beginning of period

 

 

310,257

 

 

 

267,938

 

 

 

221,725

 

Cash, cash equivalents, and restricted cash—End of period

 

$

293,741

 

 

$

310,257

 

 

$

267,938

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

292,820

 

 

$

310,131

 

 

$

267,813

 

Restricted cash - current (included in Prepaid expenses and other current assets on the Consolidated Balance Sheets)

 

 

33

 

 

 

126

 

 

 

125

 

Restricted cash - non-current (included in Other non-current assets on the Consolidated Balance Sheets)

 

 

888

 

 

 

—

 

 

 

—

 

Total cash and cash equivalents and restricted cash

 

$

293,741

 

 

$

310,257

 

 

$

267,938

 

Supplemental cash flow information:

 

 

 

 

 

 

 

 

 

Cash paid for taxes

 

$

41,929

 

 

$

60,883

 

 

$

12,351

 

Cash paid for interest

 

$

479

 

 

$

714

 

 

$

554

 

Non‑cash investing and financing transactions:

 

 

 

 

 

 

 

 

 

Right-of-use assets obtained in exchange for new operating lease liabilities, net of impairments and tenant improvement allowances

 

$

14,091

 

 

$

2,547

 

 

$

71,979

 

Acquisition of equipment under finance lease

 

$

—

 

 

$

5,479

 

 

$

—

 

Capital assets financed by accounts payable and accrued expenses

 

$

6

 

 

$

261

 

 

$

12

 

Stock-based compensation included in capitalized software development costs

 

$

2,140

 

 

$

1,103

 

 

$

480

 

Accrued excise tax on net share repurchases

 

$

668

 

 

$

—

 

 

$

—

 

Common stock issued in connection with acquisition

 

$

—

 

 

$

52,937

 

 

$

—

 

Liabilities for contingent consideration

 

$

—

 

 

$

1,193

 

 

$

—

Comparison of the Three and Twelve Months Ended December 31, 2024 and December 31, 2023

Revenue

 

Three Months Ended December 31,

 

Change

 

Change

 

Year Ended December 31,

 

Change

 

Change

 

2024

 

2023

 

$

 

%

 

2024

 

2023

 

$

 

%

 

(In Thousands)

 

 

 

 

 

 

 

(In Thousands)

 

 

 

 

 

 

Revenue by customer type:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Activation

$

109,517

 

$

99,402

 

$

10,115

 

10

%

 

$

373,101

 

$

328,936

 

$

44,165

 

13

%

Measurement

 

64,379

 

 

60,387

 

 

3,992

 

7

 

 

 

226,939

 

 

198,024

 

 

28,915

 

15

 

Supply-side

 

16,725

 

 

12,442

 

 

4,283

 

34

 

 

 

56,809

 

 

45,583

 

 

11,226

 

25

 

Total revenue

$

190,621

 

$

172,231

 

$

18,390

 

11

%

 

$

656,849

 

$

572,543

 

$

84,306

 

15

%

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 December 31,

 

Year Ended December 31,

 

2024

 

2023

 

2024

 

2023

 

(In Thousands)

 

(In Thousands)

Net income

$

23,400

 

 

$

33,105

 

 

$

56,231

 

 

$

71,466

 

Net income margin

 

12

%

 

 

19

%

 

 

9

%

 

 

12

%

Depreciation and amortization

 

11,800

 

 

 

11,520

 

 

 

45,215

 

 

 

40,885

 

Stock-based compensation

 

22,752

 

 

 

16,473

 

 

 

90,658

 

 

 

59,244

 

Interest expense

 

300

 

 

 

275

 

 

 

1,118

 

 

 

1,066

 

Income tax expense

 

13,979

 

 

 

8,636

 

 

 

32,559

 

 

 

24,411

 

M&A and restructuring costs (recoveries) (a)

 

537

 

 

 

(359

)

 

 

537

 

 

 

1,262

 

Offering and secondary offering costs (b)

 

—

 

 

 

315

 

 

 

68

 

 

 

910

 

Other recoveries (c)

 

—

 

 

 

(164

)

 

 

—

 

 

 

(964

)

Other expense (income) (d)

 

1,073

 

 

 

(4,373

)

 

 

(7,488

)

 

 

(11,216

)

Adjusted EBITDA

$

73,841

 

 

$

65,428

 

 

$

218,898

 

 

$

187,064

 

Adjusted EBITDA margin

 

39

%

 

 

38

%

 

 

33

%

 

 

33

%

(a)

M&A and restructuring costs for the year ended December 31, 2024 consist of transaction costs related to the agreement to acquire Rockerbox, Inc. M&A and restructuring costs for the year ended December 31, 2023 consist of transaction costs related to the acquisition of Scibids.

(b)

Offering and secondary offering costs for the years ended December 31, 2024 and December 31, 2023 consist of third-party costs incurred for underwritten secondary public offerings by certain stockholders of the Company.

(c)

Other recoveries for the year ended December 31, 2023 consist of sublease income for leased office space.

(d)

Other income for the years ended December 31, 2024 and 2023 consists of interest income earned on interest-bearing monetary assets, changes in fair value associated with contingent consideration, 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 Consolidated Statements of Operations and Comprehensive Income is as follows:

 

 

Three Months Ended

 

Year Ended

 

 

December 31,

 

December 31,

(in thousands)

 

2024

 

2023

 

2024

 

2023

Product development

 

$

8,796

 

$

6,366

 

$

34,802

 

$

22,955

Sales, marketing and customer support

 

 

7,213

 

 

5,101

 

 

27,804

 

 

18,299

General and administrative

 

 

6,743

 

 

5,006

 

 

28,052

 

 

17,990

Total stock‑based compensation

 

$

22,752

 

$

16,473

 

$

90,658

 

$

59,244

The weighted average basic and diluted shares outstanding for the three months and year ended December 31, 2024 is as follows:

 

 

Three Months Ended

 

Year Ended

(in thousands)

 

December 31, 2024

 

December 31, 2024

Weighted‑average common shares outstanding:

 

 

 

 

Basic

 

168,891

 

170,515

Diluted

 

172,711

 

175,076

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 “First 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.

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Investor Relations

Tejal Engman DoubleVerify IR@doubleverify.com

Media Contact

Chris Harihar Crenshaw Communications 646‑535‑9475 chris@crenshawcomm.com