Doubleverify Holdings, Inc. · NYSE:DV
Doubleverify — Q4 2023 Earnings Presentation
21 slides from Doubleverify's earnings presentation, Feb 28, 2024
Slide 1: Q4 & FY 2023 Earnings Call
Q4 & FY 2023 Earnings Call February 28, 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: Industry-Leading Revenue Growth and Profitability
Industry-Leading Revenue Growth and Profitability Q4 2023 Twelve Months Ended 12.31.2023 Total Revenue Adj. EBITDA Total Revenue Adj. EBITDA $172 $65 $573 $187 MILLION MILLION MILLION MILLION +29% 38% +27% 33% GROWTH1 MARGINS2 GROWTH1 MARGINS2 1. Year-over-year growth rate 2. See “Non-GAAP Financial
Slide 4: Key Areas of Long-Term Growth: Social Solutions and Scibids AI
Key Areas of Long-Term Growth Social Solutions and Scibids AI Social Media Scibids AI More Pre-screen and Expanding More Programmatic DSPs Brand Safety & Suitability coverage Coverage and Social media platforms 54 % of DV’s top 700 customers’ used DV’s Growing Adoption 40 % Of our large new customer
Slide 5: Winning a Large Customer Growth Opportunity
Winning a Large Customer Growth Opportunity Strong 2023 Win Momentum Large Customer Growth Opportunity ACQUIRE NEW 80% 500 win rate across all opportunities in FY 2023 Potential to win more Top 1000 global advertisers 62% of our FY 2023 wins were greenfield OF THE GLOBAL TOP 1000 ADVERTISERS DID NOT
Slide 6: Gaining Market Share in Social Media
Gaining Market Share in Social Media DV Social Measurement Revenue ($M) Key Long-term Growth Drivers +48% 1 Meta new customer adoption following brand safety and suitability launch +28% +47% YouTube shorts existing customer volume 2 expansion following brand safety and suitability +34% $86 launch $5
Slide 7: Market-Leading AI Video Verification Engine
Market-Leading AI Video Verification Engine Universal Content Intelligence (UCI) Sentiment Video Audio Avoidance Categories Contextual Categories Text Fast . Accurate . Cost-Effective. 6
Slide 8: Gaining Market Share: CTV, Retail Media and the Open Web
Gaining Market Share CTV, Retail Media and the Open Web FY 2023 YEAR-OVER-YEAR CTV Retail Media Open Web GROWTH 33% 60% 48% Increase in CTV Increase in Retail Increase in ABS impression volumes Media revenues revenue INDUSTRY1 16% 15%43% 10% Increase in Retail Increase in Increase in global CTV Medi
Slide 9: Why DV is Positioned to Win
Why DV is Positioned to Win Three Key Takeaways Why Enterprise Customers Choose DV 1 DV is significantly outgrowing the digital advertising industry “Haleon is pleased to partner with DoubleVerify to support our media quality and performance DV has global scale and connectivity goals. The strength o
Slide 10: Q4 2023 Revenue Growth Drivers
Q4 2023 Revenue Growth Drivers 29% TOTAL REVENUE GROWTH IN Q4 ’23 Key Drivers Activation Measurement Supply-Side +32% +30% +5% year-over- year-over- year-over- Authentic Brand Suitability year growth year growth year growth $99 M $60 M Social Products $76 M $46 M $12.4 M New Client Growth $11.8 M Q4
Slide 11: Q4 2023 Revenue Growth Drivers cont'd
Q4 2023 Revenue Growth Drivers cont’d Business Line Contribution to Total Revenue Advertiser Revenue Growth Drivers 93 Q4 ’23 ADVERTISER REVENUE GROWTH OF 31% Activation ~58% % VOLUME (MTM) PRICE (MTF) +25 +5% ~35% % Measurement of total revenue came from Advertiser Revenue (Activation + Supply-side
Slide 12: FY 2023 Revenue Growth Drivers
FY 2023 Revenue Growth Drivers 27% TOTAL REVENUE GROWTH IN FY ’23 Key Drivers Activation Measurement Supply-Side Authentic Brand Suitability +31% +25% +5% year-over- year-over- year-over- year growth year growth year growth $329M Social Products $251M $198 M New Client Growth $158 M $46M $43 M FY '2
Slide 13: FY 2023 Revenue Growth Drivers cont'd
FY 2023 Revenue Growth Drivers cont’d Business Line Contribution to Total Revenue Advertiser Revenue Growth Drivers 92 2023 ADVERTISER REVENUE GROWTH OF 29% Activation ~57% % VOLUME (MTM) PRICE (MTF) +25 +3% ~35% % Measurement of total revenue came from Advertiser Revenue (Activation + Supply-side ~
Slide 14: Volume Driven Advertiser Revenue Growth
Volume Driven Advertiser Revenue Growth VISION Media Transactions Measured (MTM)1 Measured Transaction Fees (MTF)1 +30% +2% CAGR CAGR 7.0T 5.5T $0.075 $0.070 $0.072 $0.067 4.5T 3.2T 2020 2021 2022 2023 2020 2021 2022 2023 13
Slide 15: Strong Customer KPIs
Strong Customer KPIs 124% Net Revenue Retention (NRR) Annual Revenue Per Customer – Top 100 Number of Customers with > $1M Revenue (US$ Millions) Contribution 42% $3.7 19% 78 93 INCREASE FROM INCREASE FROM 2022 - 20231 2022 - 2023 64 $2.6 $2.2 45 41 $1.8 25 $1.1 $0.7 2018 2019 2020 2021 2022 2023 20
Slide 16: Advertisers Generating >$200K Revenue; Long-Standing Customer Relationships
Advertisers Generating Long-Standing Customer >$200K Revenue Relationships Top Customer Tenure (YEARS) 290 TOTAL # OF ADVERTISERS1 8.8 8.5 18%GROWTH 8.0 YEAR-OVER-YEAR Top 75 Top 50 Top 25 1.Total number of advertisers that generated more than $200,000 of revenue in 2023 15
Slide 17: FY 2024 Guidance
FY 2024 Guidance VISION Q1 2024 Guidance FY 2024 Guidance Revenue Revenue $136 M - $140 M +13% $688 M - $704 M +22% 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 $33 M - $37 M 25% $205 M - $221 M 31% Low-
Slide 18: Key 2023 Financial Highlights
Key 2023 Financial Highlights 7 $573 27% TRILLION MILLION GROWTH Media Transactions Measured Total Total Revenue (MTM) Revenue Growth $310 $187 33% MILLION MILLION MARGIN Cash and Cash Adjusted Adjusted EBITDA Equivalents EBITDA Margin 17
Slide 19: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation Three Months Ended Full Year Ended December 31, December 31, 2023 2022 2023 2022 (In Thousands) (In Thousands) Net income $ 33,105 $ 18,068 $ 71,466 $ 43,268 Net income margin 19% 14% 12% 10% Depreciation and amortization 11,520 8,882 40,885 34,328 Stock-ba
Slide 20: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation (a) M&A and restructuring costs for the year ended December 31, 2023 consist of transaction costs related to the acquisition of Scibids Technology SAS (“Scibids”). M&A and restructuring costs for the year ended December 31, 2022 consist of transaction costs
Slide 21: Key Business Terms and Notes
Key Business Terms and Notes • 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 i
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