Doubleverify Holdings, Inc. · NYSE:DV
Doubleverify — Q2 2024 Earnings Presentation
16 slides from Doubleverify's earnings presentation, Jul 30, 2024
Slide 1: Q2 2024 Earnings Call
Q2 2024 Earnings Call July 30, 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: Q2 2024 Financial Highlights
Q2 2024 Financial Highlights Second Quarter 2024 Highlights First Half 2024 Revenue Trajectory Reaccelerating Revenue Growth 17% Total revenue growth +17% +15% $156M Total revenue 83% Revenue Less Cost of Sales $156M $141M $47M Adjusted EBITDA $123M $134M Q2’23A Q1’23A 30% Adjusted EBITDA margin $36
Slide 4: Winning a Large Customer Growth Opportunity
Winning a Large Customer Growth Opportunity Robust Second Quarter Win Momentum Strong Enterprise Deal Pipeline Typical Advertiser Customer Journey >80% win rate across all opportunities NET REVENUE Revenue RETENTION3 70% greenfield wins1 Growth Key Q2’24 Expansions and New Logo Wins Measurement solu
Slide 5: Penetrating the Expansive Social Media Market
Penetrating the Expansive Social Media Market Q2’24 Growth Current Social Media Coverage Untapped Market Opportunity Social Measurement BRAND SAFETY AND SUITABILITY $579B1 Global Digital Ad Spend +44 % Q2’24 EXPANSIONS $285B1 Global Digital Ex-Search Ad Spend VIEWABILITY $180B1 Global Digital Social
Slide 6: Unlocking the Vast Potential of CTV
Unlocking the Vast Potential of CTV CTV Measurement Volume Growth Pioneering CTV Measurement Strong Suite of MRC Accreditations Innovations1 for CTV Measurement +55 % 1. Program-level Brand Suitability Authentic Viewable Impression: A unified quality metric standard (Viewability, Brand Suitability,
Slide 7: Growing Retail Media Revenue & Coverage
Growing Retail Media Revenue & Coverage H1 2024 Retail Media Revenue Breakdown Q2’24 Supply-Side Revenue Growth Driver Q2 ’24 YEAR-OVER-YEAR REVENUE GROWTH Activation 62% RMNs RETAIL MEDIA TOTAL contribute to DV’s RMN supply-side solutions SUPPLY-SIDE SUPPLY-SIDE Supply-side 29% +26 all three >50% %
Slide 8: Stronger Growth Trajectory for Activation Business
Stronger Growth Trajectory for Activation Business DRIVERS OF ACTIVATION REVENUE CORE PROGRAMMATIC AUTHENTIC BRAND SUITABILITY SCIBIDS AI & SOCIAL TOP 100 ADVERTISERS ~40% Still to Scibids AI >90% adopt ABS Adopted use ABS of their business ABS new measurement customers to ramp lines still to adopt
Slide 9: Q2 2024 Revenue Growth Drivers
Q2 2024 Revenue Growth Drivers DOUBLE-DIGIT GROWTH ACROSS ALL THREE REVENUE LINES Key Drivers Activation Measurement Supply-Side Q2 ’24 TOTAL REVENUE GROWTH OF 17% +12% +22% +26% year-over- year-over- year-over- Social measurement year growth year growth year growth $87 M $78 M $55 M Social Activati
Slide 10: Q2 2024 Revenue Growth Drivers (cont’d)
Q2 2024 Revenue Growth Drivers (cont’d) Business Line Contribution to Total Revenue Advertiser Revenue Growth Drivers Q2 ’24 ADVERTISER REVENUE GROWTH OF 16% Activation 56% VOLUME (MTM) PRICE (MTF) +22 -5% Measurement % 35% double-digit revenue Supply-side 9% growth across all three revenue lines Ac
Slide 11: Q2 2024 Financial Highlights
Q2 2024 Financial Highlights $156 17% $36 MILLION GROWTH MILLION Total Total Revenue Net Cash from Revenue Growth Operating Activities $47 30% $0 MILLION MARGIN DEBT Adjusted Adjusted EBITDA No long-term EBITDA Margin debt 10
Slide 12: Q3 & FY 2024 Guidance
Q3 & FY 2024 Guidance VISION Q3 2024 Guidance FY 2024 Guidance Revenue Revenue $167 M - $171 M +17% $667 M - $675 M +17% 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 $49 M - $53 M 30% $206 M - $214 M 31%
Slide 13: Proven History of Growth & Profitability
Proven History of Growth & Profitability Revenue Adjusted Ebitda1 $ in millions $ in millions YoY Growth Adj. EBITDA margin1 +17% +27% 31% +36% $671 33% +36% $573 31% $210 +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 14: 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 15: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (In Thousands) (In Thousands) Net income $ 7,474 $ 12,839 $ 14,630 $ 25,014 Net income margin 5% 10% 5% 10% Depreciation and amortization 11,004 9,676 21,932 18,659 Stock-based compen
Slide 16: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation a) M&A and restructuring (recoveries) costs for the three and six months ended June 30, 2024 and June 30, 2023 consist of transaction costs related to the acquisition of Scibids. b) Offering and secondary offering costs for the three and six months ended Ju
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