DoubleVerify’s first quarter results were marked by robust revenue growth, but the market responded negatively given a significant shortfall in non-GAAP profits. Management credited strong adoption of its core verification and performance solutions, particularly across social media and connected TV (CTV), for driving customer expansion with both new and existing enterprise clients. CEO Mark Zagorski highlighted rapid scaling in activation solutions, including successful launches with major brands and increased usage of its CyBids AI optimization tool. He attributed the top-line acceleration to deeper platform integration and a steady influx of supply-side partnerships, while also noting “no evidence of macroeconomic pressure affecting customer demand.” Despite these positives, profit margins were pressured by increased investment in product development and integration costs associated with recent acquisitions.
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DoubleVerify (DV) Q1 CY2025 Highlights:
- Revenue: $165.1 million vs analyst estimates of $153.2 million (17.2% year-on-year growth, 7.8% beat)
- Adjusted Operating Income: $32.27 million vs analyst estimates of $22.66 million (19.5% margin, 42.4% beat)
- Revenue Guidance for Q2 CY2025 is $171 million at the midpoint, above analyst estimates of $169.2 million
- EBITDA guidance for Q2 CY2025 is $50 million at the midpoint, in line with analyst expectations
- Operating Margin: 4.1%, in line with the same quarter last year
- Market Capitalization: $2.41 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions DoubleVerify’s Q1 Earnings Call
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Matt Swanson (RBC Capital Markets) asked how DoubleVerify’s business model and product mix could weather macroeconomic uncertainty. CEO Mark Zagorski explained that the shift toward performance-based solutions and volume-driven pricing positions the company well if ad budgets tighten.
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Maria Ripps (Canaccord Genuity) questioned the main contributors to revenue outperformance in the quarter. Zagorski cited accelerated scaling by new enterprise clients and deeper product adoption by existing customers as key drivers.
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Andrew Marok (Raymond James) probed expectations for social measurement growth amid changing platform dynamics. Zagorski responded that recent Meta launches create a virtuous cycle between pre-bid and post-bid solutions, expanding both measurement and activation revenue.
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Omar Dessouky (BofA Securities) raised concerns about increased competition in demand-side platforms (DSPs) and its effect on DoubleVerify’s activation segment. Zagorski indicated that broad platform integration and brand-driven sales insulate the company from most competitive pricing pressures.
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Alinda Lee (William Blair & Company) asked for feedback and activation speed on Meta’s new solutions. Zagorski reported strong initial results, especially among large clients, and noted a robust pipeline for future activations.
Catalysts in Upcoming Quarters
As we look ahead, our team will monitor (1) further adoption of social activation and measurement products, especially on Meta and TikTok, (2) sustained growth in CTV transparency and fraud detection segments, and (3) the integration progress and client uptake of RockerBox’s attribution tools. Execution against these initiatives will be key to maintaining revenue momentum and broadening DoubleVerify’s platform reach.
DoubleVerify currently trades at $14.84, up from $14.10 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).
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