Slide 1: Q3 2024 Earnings Call
Q3 2024 Earnings Call November 6, 2024 0
Slide 2: Disclaimer
Disclaimer This presentation contains “forward-looking statements” that are based on management’s beliefs and assumptions and on information currently available to management. These forward- looking statements include, but are not limited to, statements about our plans, objectives, expectations and
Slide 3: Robust Growth and Profitability in Q3'24
Robust Growth and Profitability in Q3’24 +18% 83% 35% +54% REVENUE GROWTH (Y/Y%) REVENUE LESS COST OF SALES ADJ. EBITDA MARGIN NET OPERATING CASH GROWTH (Y/Y%) Quarterly Revenue Growth Trajectory Quarterly Adj. EBITDA Margin Trajectory $ in millions % y/y growth $ in millions % margin 2023 2024 2023
Slide 4: Momentum in Motion: Strong New Customer Wins
Momentum in Motion: Strong New Customer Wins In the third quarter, DV recorded its largest-ever global market share wins in a single quarter. DV Q3’24 Advertiser Win Rate Why DV Wins PROTECTION & PERFORMANCE. Combined power of measurement, activation and optimization, powered by Scibids AI. Key Adve
Slide 5: Expanding DV's Social Activation and Measurement
Expanding DV’s Social Activation and Measurement DV’s Social Media Growth Opportunity Measurement Coverage UPSELL OPPORTUNITY BRAND SAFETY AND SUITABILITY recent TOP 700 ADVERTISER ADOPTION announcements VIEWABILITY >350 +21% Social measurement >120 Social activation Q3’24 SOCIAL MEASUREMENT FRAUD &
Slide 6: Driving Growth and Reach Across Global RMNs
Driving Growth and Reach Across Global RMNs YTD 2024 Retail Media Revenue Breakdown Q3’24 Supply-Side Revenue Growth Driver Q3 ’24 YEAR-OVER-YEAR REVENUE GROWTH Activation 67% RMNs RETAIL MEDIA TOTAL contribute to DV’s RMN supply-side solutions SUPPLY-SIDE SUPPLY-SIDE Supply-side 25% +30 all three +
Slide 7: Driving Transparency & Growth in CTV
Driving Transparency & Growth in CTV CTV Measurement Volume Growth Fraud Remains a Growing Strong Suite of MRC Accreditations Challenge1 for CTV Measurement +59 % Q3 2024 YEAR-OVER-YEAR +58 ~4x % Increase in the number of CTV fraud Nearly quadrupling of fraud schemes and Authentic Viewable Impressio
Slide 8: Empowering Advertisers Protection and Performance on the Open Web
Empowering Advertisers Protection and Performance on the Open Web OPEN WEB DV is delivering growth across ALL open web activation and measurement solutions, with performance solutions leading the way ACTIVATION MEASUREMENT PERFORMANCE 15 ~50 $100M ~300% >300 of DV’s Top 100 DV customers DV on pace t
Slide 9: Q3 2024 Financial Highlights
Q3 2024 Financial Highlights $170 18% $55 MILLION GROWTH MILLION Total Total Revenue Net Cash from Revenue Growth Operating Activities $60 35% $0 MILLION MARGIN DEBT Adjusted Adjusted EBITDA No long-term EBITDA Margin debt 8
Slide 10: Q3 2024 Revenue Growth Drivers
Q3 2024 Revenue Growth Drivers Q3 ’24 TOTAL REVENUE GROWTH OF 18% DOUBLE-DIGIT GROWTH ACROSS ALL THREE REVENUE LINES Key Drivers Activation Measurement Supply-Side Core Programmatic, Scibids AI & Social Activation +18% +14% +30% year-over- year-over- year-over- year growth year growth year growth Au
Slide 11: Q3 2024 Revenue Growth Drivers (cont'd)
Q3 2024 Revenue Growth Drivers (cont’d) Business Line Contribution to Total Revenue Advertiser Revenue Growth Drivers Q3 ’24 ADVERTISER REVENUE GROWTH OF 17% Activation 57% VOLUME (MTM) PRICE (MTF) +22 -4% Measurement % 35% double-digit revenue Supply-side 8% growth across all three revenue lines Ac
Slide 12: Strategic Capital Allocation
Strategic Capital Allocation ACQUISITIONS SHARE REPURCHASES INVESTING IN CORE M&A Strategy YTD’24 Progress Key Priorities Purchased a total of Accelerate product roadmap Social Media 4.1M shares for $75M YTD’24 Expand product/technology into new Announced additional $200M CTV media environment adjac
Slide 13: Q4 & FY 2024 Guidance
Q4 & FY 2024 Guidance VISION Q4 2024 Guidance FY 2024 Guidance Revenue Revenue $194 M - $200 M +14% $660 M - $666 M +16% year-over-year year-over-year Low-end High-end growth at the Low-end High-end growth at the midpoint midpoint Adjusted EBITDA Adjusted EBITDA $73 M - $79 M 39% $218 M - $224 M 33%
Slide 14: Proven History of Growth & Profitability
Proven History of Growth & Profitability Revenue Adjusted Ebitda1 $ in millions $ in millions YoY Growth Adj. EBITDA margin1 +16% +27% 33% +36% $663 33% +36% $573 31% $221 +34% $452 33% $187 +75% 38% 30% $333 $142 $244 25% $110 $183 $69 $73 $104 $27 2018A 2019A 2020A 2021A 2022A 2023A 2024E 2018A 20
Slide 15: Key Business Terms
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
Slide 16: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 (In Thousands) (In Thousands) Net income $ 18,201 $ 13,347 $ 32,831 $ 38,361 Net income margin 11% 9% 7% 10% Depreciation and amortization 11,483 10,706 33,415 29,365 Stock
Slide 17: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation a) M&A and restructuring costs for the three and nine months ended September 30, 2023 consist of transaction costs related to the acquisition of Scibids. b) Offering and secondary offering costs for the three and nine months ended September 30, 2024 and Sep