Slide 1: Q2 2023 Earnings Call
Q2 2023 Earnings Call July 31, 2023 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: Key Business Highlights
Key Business Highlights Launching Innovative Scaling Core Expanding Partnerships with Outcome-Driving Products Verification Solutions Advertisers and Platforms Algorithmic Optimizer Meta Reels Universal Attention Segments YouTube Shorts CTV Attention Measurement CTV & Retail Media + Agreement To Acq
Slide 4: A Powerful Combination: Data, AI, Outcomes
3 A Powerful Combination + AI-powered optimization that makes DV data more impactful for advertisers and accelerates our evolution from protection to performance DATA AI OUTCOMES 3
Slide 5: Strong Second Quarter and Half Year Ended 2023
Strong Second Quarter and Half Year Ended 2023 Q2 2023 First Half 2023 Total Revenue Adj. EBITDA Total Revenue Adj. EBITDA $133.7 $40.0 $256.3 $76.0 MILLION MILLION MILLION MILLION +22% 30% +24% 30% GROWTH1 MARGINS2 GROWTH1 MARGINS2 1. Year-over-year growth rate 2. See Appendix for a reconciliation
Slide 6: The Revenue Opportunity Today
The Revenue Opportunity Today 300B ~DAILY DATA TRANSACTIONS ANALYZED Activation Measurement 60 DV Programmatic DV Measurement Activation $ Authentic Attention $ Authentic Brand Suitability YRS $ DV Authentic Ad (brand $ Core Programmatic ~YEARS OF VIDEO safety, fraud, viewability) CONTENT ANALYZED P
Slide 7: The Future Revenue Opportunity
The Future Revenue Opportunity Activation Measurement DV Programmatic Activation DV Measurement $ Authentic Brand Suitability $ Authentic Attention $ Core Programmatic Products & Contextual $ DV Authentic Ad (brand safety, fraud, viewability) $ AI Optimization 3rd Party Data DV DATA • Audience data
Slide 8: Scibids: The Global Leader in AI-Powered Optimization
Scibids: The Global Leader in AI-Powered Optimization AI that automates and optimizes programmatic buying of digital ad campaigns, driving Technology significant improvement in performance KPIs Integrations Test Results 45% 63% 95% average initial test results reduction in media CPM increase in atte
Slide 9: Transparency, Independence and Innovation
Transparency, Independence and Innovation + • Ad server and DSP agnostic • Scibids brings nearly 20 data • Do not buy or sell media scientists and engineers to DV • Privacy-forward – no persistent tracking • Both companies leverage technologies used machine learning based AI Innovation Day Learn mor
Slide 10: Our Three Key Differentiators
Our Three Key Differentiators Scale Innovation Trust Across Platforms Identifier Independent Accredited & Objective and Industry Leading 9
Slide 11: Scaling Social Solutions
Scale Scaling Social Solutions Q2 2023 Growth Rate Long-Term Growth Catalysts +41 Measurement on Meta Reels (beginning Q2 2023) % Measurement on YouTube Shorts (beginning Q3 2023) Brand Suitability in 25 new markets (by year-end 2023) Social Measurement Volumes (MTM) year-over-year 10
Slide 12: Expanding CTV Solutions
Scale Expanding CTV Solutions Q2 2023 Growth Rate Long-Term Growth Catalysts +32 Measurement on Netflix % (beginning March 2023) CTV Attention solution with TVision (beginning Q3 2023) CTV Measurement Volumes (MTM) year-over-year 11
Slide 13: Growing Across Retail Media Networks
Scale Growing Across Retail Media Networks Q2 2023 Growth Rate Long-Term Growth Catalysts 12 +81 Work with 12 of the top retail media platforms % 39 Work with 39 major retailers ~50 Global partnerships Viewability and fraud measurement on Uber’s advertising platform Retail Media Revenue year-over-ye
Slide 14: International Business Expansion
Scale International Business Expansion Q2 2023 Growth Rate Key Drivers of Growth and Recent Geographic Expansion 33% EMEA growth in 2Q 2023 +39 % International Measurement Revenue 50% APAC growth in 2Q 2023 27 Locations, through the launch of business operations in Indonesia, the Philippines, Vietna
Slide 15: Innovation and Trust
Innovation Trust Innovation and Trust PRODUCT INNOVATION MITIGATE APP SPOOFING Algorithmic Optimizer cutting-edge Fraud Lab proprietary Advertising and anti-fraud solutions Watermark technology Universal Attention Segments CERTIFIED PRIVACY CTV Attention Measurement INTERNATIONAL PRIVACY ASIA-PACIFI
Slide 16: Q2 2023 Financial Highlights
Q2 2023 Financial Highlights $134 22% $296 MILLION GROWTH MILLION Total Total Revenue Cash and Revenue Growth Cash Equivalents $40 30% $0 MILLION MARGIN DEBT Adjusted Adjusted EBITDA No long-term EBITDA Margin debt 15
Slide 17: Q2 2023 Revenue Growth Drivers
Q2 2023 Revenue Growth Drivers Key Drivers Activation Measurement Supply-Side Q2 ’23 TOTAL REVENUE GROWTH OF 22% +29% +16% +4% year-over- year-over- year-over- Authentic Brand Suitability year growth year growth year growth $77.9 M $45.0 M $10.8 M $10.4 M Social measurement $60.5 M $38.9 M New Clien
Slide 18: Q2 2023 Revenue Growth Drivers (cont'd)
Q2 2023 Revenue Growth Drivers (cont’d) Business Line Contribution to Total Revenue Advertiser Revenue Growth Drivers Q2 ’23 ADVERTISER REVENUE GROWTH OF 24% 92% Activation 58% VOLUME (MTM) PRICE (MTF) +24 Measurement % 34% unch 1 of total revenue came from Advertiser Supply-side 8% Revenue (Activat
Slide 19: Q3 & FY 2023 Guidance Updated for Impact of Scibids Acquisition
Q3 & FY 2023 Guidance Updated for Impact of Scibids Acquisition Q3 2023 Guidance FY 2023 Guidance Revenue Revenue $137m - $141m +24% $562m - $572m +25% Low-end High-end YoY growth Low-end High-end YoY growth at midpoint at midpoint Adjusted EBITDA Adjusted EBITDA $39m - $41m 29% $171m - $179m 31% Lo
Slide 20: 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 21: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (In Thousands) (In Thousands) Net income $ 12,839 $ 10,290 $ 25,014 $ 14,869 Net income margin 10% 9% 10% 7% Depreciation and amortization 9,676 8,317 18,659 17,357 Stock-based compen
Slide 22: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation a) M&A and restructuring costs for the three and six months ended June 30, 2023 consist of transaction costs related to the agreement to acquire Scibids Technology SAS (“Scibids”). M&A and restructuring costs for the three and six months ended June 30, 2022