DoubleVerify Holdings (DV) AI Stock Analysis

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DoubleVerify Holdings

(NYSE:DV)

67Neutral

DoubleVerify Holdings shows strong financial stability and growth prospects, driven by impressive revenue growth and a robust balance sheet. However, technical indicators point to bearish trends, and a high P/E ratio suggests overvaluation. Despite strategic initiatives, challenges such as major customer losses and Q4 revenue shortfalls pose risks. Overall, while the company is fundamentally strong, market conditions and valuation concerns temper its stock score.

Positive Factors

Global Reach

30% of DV's revenues are from outside the US, which are not impacted by tariffs.

Market Diversification

DV is well diversified across verticals, reducing exposure to sectors most at risk from tariffs.

Negative Factors

Client Spending Reductions

In Q4, one of DV’s largest customers dramatically reduced its spend as part of sweeping cost reductions.

Revenue Challenges

DoubleVerify's 4Q24 revenue came in below the low end of guidance as one large client reduced spend and paused its business.

DoubleVerify Holdings (DV) vs. S&P 500 (SPY)

Market Cap

$2.20B

Dividend YieldN/A

Average Volume (3M)2.39M

Price to Earnings (P/E)41.8

Beta (1Y)1.06

Revenue Growth14.72%

EPS Growth-22.00%

CountryUS

Employees1,197

SectorTechnology

Sector Strength66

IndustrySoftware - Application

Share Statistics

EPS (TTM)0.01

Shares Outstanding162,477,680

10 Day Avg. Volume2,046,625

30 Day Avg. Volume2,394,098

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.41

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit5.73

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$18.22

Price Target Upside28.95% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering19

DoubleVerify Holdings Business Overview & Revenue Model

Company DescriptionDoubleVerify Holdings, Inc. provides a software platform for digital media measurement, data, and analytics in the United States and internationally. Its solutions provide advertisers unbiased data analytics that enable advertisers to increase the effectiveness, quality and return on their digital advertising investments. The company's solutions include DV Authentic Ad, a metric of digital media quality, which evaluates the existence of fraud, brand safety, viewability, and geography for each digital ad; DV Authentic Attention solution that provides exposure and engagement predictive analytics to drive campaign performance; and Custom Contextual solution, which allows advertisers to match their ads to relevant content to maximize user engagement and drive campaign performance. Its solutions also comprise DV Publisher suite, a solution for digital publishers to manage revenue and increase inventory yield by improving video delivery, identifying lost or unfilled sales, and aggregate data across all inventory sources; and DV Pinnacle, a service and analytics platform user interface that allows its customers to adjust and deploy controls for their media plan and track campaign performance metrics across channels, formats, and devices. The company's software solutions are integrated in the digital advertising ecosystem, including programmatic platforms, connected TV, social media channels, and digital publishers. It serves brands, publishers, and other supply-side customers covering various industry verticals, including consumer packaged goods, financial services, telecommunications, technology, automotive, and healthcare. The company was founded in 2008 and is headquartered in New York, New York.

How the Company Makes MoneyDoubleVerify makes money through a robust revenue model primarily based on service fees charged for its digital advertising verification and measurement solutions. The company generates revenue by providing advertisers, agencies, and publishers with tools that ensure their digital ads are viewable by real people, appear in brand-safe environments, and are measured for effectiveness. Key revenue streams include subscription-based fees for access to its software platform, as well as usage-based fees tied to the volume of ad impressions verified and analyzed. DoubleVerify's strategic partnerships with major digital advertising platforms, including social media networks and programmatic advertising exchanges, also contribute to its earnings by integrating its verification services directly into these platforms, enhancing its reach and adoption across the digital advertising ecosystem.

DoubleVerify Holdings Key Performance Indicators (KPIs)

Any

Revenue by Segment

Revenue by Segment
Shows revenue distribution across different business units, highlighting which segments drive growth and profitability, and indicating where strategic focus may be needed.

Chart InsightsDoubleVerify's Activation and Measurement segments show robust growth, with Activation leading due to increased demand for social activation solutions. Despite a Q4 revenue shortfall from reduced ad spend and a major customer loss, the company remains optimistic, projecting a 10% revenue growth in 2025. This optimism is fueled by strategic acquisitions like Rockerbox and expansion into performance measurement. Supply Side Customer revenue also shows strong momentum, reflecting a 25% growth driven by retail media platforms. However, challenges such as pricing pressure and shifts in ad spend could impact future performance.

Data provided by:

Main Street Data

DoubleVerify Holdings Financial Statement Overview

Summary

DoubleVerify Holdings demonstrates strong financial health with significant revenue growth, robust profit margins, and conservative financial leverage. The income statement, balance sheet, and cash flow statement collectively highlight the company's strong liquidity and financial stability.

Income Statement

Very Positive

DoubleVerify Holdings has shown strong revenue growth with a 14.73% increase from 2023 to 2024. The gross profit margin is robust at 82.26%, and the net profit margin stands at 8.56%. However, the EBIT margin has slightly decreased to 12.55%. Overall, the company exhibits strong revenue growth and profitability, though slight declines in operating efficiency are noted.

Balance Sheet

Positive

The company maintains a healthy equity ratio of 84.92%, indicating strong capitalization. The debt-to-equity ratio is low at 0.08, reflecting conservative financial leverage. Return on equity is stable at 5.19%, showing consistent profitability. The balance sheet reflects financial stability with low risk of over-leverage.

Cash Flow

Positive

Free cash flow has grown by 29.01% from 2023 to 2024, supporting the company's liquidity position. The operating cash flow to net income ratio is favorable at 2.84, indicating efficient cash generation relative to profits. The cash flow statements show strong liquidity and efficient cash conversion.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
656.85M	572.54M	452.42M	332.74M	243.92M
	Gross Profit
540.33M	465.91M	374.55M	278.36M	208.17M
	EBIT
82.42M	85.73M	59.02M	26.68M	21.36M
	EBITDA
135.12M	137.83M	94.60M	57.28M	46.48M
	Net Income Common Stockholders
56.23M	71.47M	43.27M	29.31M	20.45M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
310.63M	310.13M	267.81M	221.59M	33.35M
	Total Assets
1.28B	1.24B	1.04B	892.19M	511.33M
	Total Debt
91.67M	86.39M	83.75M	4.55M	26.96M
	Net Debt
-201.15M	-223.74M	-184.06M	-217.04M	-6.39M
	Total Liabilities
192.75M	169.09M	160.17M	93.13M	94.64M
	Stockholders Equity
1.08B	1.07B	876.86M	799.07M	416.69M
Cash Flow		Free Cash Flow
132.51M	102.73M	54.88M	73.35M	11.46M
	Operating Cash Flow
159.66M	119.74M	94.86M	82.75M	21.22M
	Investing Cash Flow
-44.84M	-84.25M	-39.98M	-158.61M	-9.75M
	Financing Cash Flow
-129.45M	6.49M	-7.88M	264.39M	10.38M

DoubleVerify Holdings Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price14.13

Price Trends

50DMA

13.74

Positive

100DMA

17.17

Negative

200DMA

17.93

Negative

Market Momentum

MACD

-0.05

Negative

RSI

59.89

Neutral

STOCH

79.11

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DV, the sentiment is Neutral. The current price of 14.13 is above the 20-day moving average (MA) of 12.97, above the 50-day MA of 13.74, and below the 200-day MA of 17.93, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 59.89 is Neutral, neither overbought nor oversold. The STOCH value of 79.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DV.

DoubleVerify Holdings Risk Analysis

DoubleVerify Holdings disclosed 41 risk factors in its most recent earnings report. DoubleVerify Holdings reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

DoubleVerify Holdings Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DV	67 Neutral	$2.20B	41.79	5.21%	―	14.72%	-22.00%
DSP	66 Neutral	$937.70M	438.53	4.15%	―	30.64%	―
SPT	65 Neutral	$1.21B	―	-39.88%	―	21.66%	8.66%
GRND	64 Neutral	$4.58B	―	-966.61%	―	32.71%	-131.68%
ASAN	63 Neutral	$3.86B	―	-92.26%	―	10.94%	4.54%
JAMF	61 Neutral	$1.47B	―	-6.48%	―	10.75%	56.37%
Sector *	60 Neutral	$10.83B	10.47	-6.71%	2.99%	7.73%	-12.97%

* Technology Sector Average

Performance Comparison

DoubleVerify Holdings

14.13

-4.76

-25.20%

SPT

Sprout Social

21.81

-6.40

-22.69%

JAMF

Jamf Holding

11.29

-8.22

-42.13%

ASAN

Asana

17.25

2.09

13.79%

GRND

Grindr

24.45

14.31

141.12%

DSP

Viant Technology

14.39

5.69

65.40%

DoubleVerify Holdings Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q1-2025)

% Change Since: 0.00%|

Next Earnings Date:Aug 05, 2025

Earnings Call Sentiment Positive

DoubleVerify Holdings, Inc. demonstrated strong performance in Q1 2025 with significant revenue growth and successful customer engagements. However, there is some caution moving forward due to macroeconomic uncertainty and specific customer challenges.

Q1-2025 Updates

Positive Updates

Strong Revenue Growth

Total revenue grew 17% year-over-year to $165 million, driven by a 16% growth in advertiser revenue and 35% growth in supply-side revenue.

Robust Advertiser Demand

The number of advertiser customers generating over $200,000 in annual revenue grew 14% year-over-year to a total of 337.

Successful New Customer Engagements

New customer wins include global brands such as Pinterest, Chipotle, Levi Strauss, Avon, Rivian Auto, and Valvoline.

Expansion in Social Media and CTV

Launched content-level pre-bid avoidance solution on Meta's platforms, with early adopters seeing brand suitability rates improve by nine percentage points. CTV measurement volumes grew nearly 43% year-over-year.

Innovation and Product Development

Launch of DV's prescreen brand safety and suitability solution for Google's Search Partner Network and successful upselling of CyBids AI campaign optimization to over 200 DV customers.

Negative Updates

Macro Uncertainty Concerns

Despite strong current performance, there is caution due to macroeconomic uncertainty affecting future guidance.

Impact of Large Customer Pausing Spend

International revenue growth was softer due to a large customer pausing spend because of higher commodity costs.

Company Guidance

During the DoubleVerify Holdings, Inc. First Quarter 2025 Financial Results Conference Call, the company provided guidance that reflects a cautious view on macroeconomic conditions despite strong Q1 performance. For Q2 2025, DoubleVerify expects revenue to range between $169 million and $173 million, representing a 10% year-over-year growth at the midpoint, and adjusted EBITDA between $48 million and $52 million, representing a 29% margin at the midpoint. The full-year 2025 guidance remains unchanged at 10% revenue growth and 32% adjusted EBITDA margins, reflecting prudence amid macroeconomic uncertainties. In Q1, DoubleVerify reported total revenue of $165 million, a 17% year-over-year increase, with advertiser and supply-side businesses showing 16% and 35% growth, respectively. The company also highlighted a 27% adjusted EBITDA margin and a 19% growth in net cash from operating activities. Key growth drivers included social media activation, CTV measurement, and open web activation solutions.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.