Doubleverify Holdings, Inc. · NYSE:DV
Doubleverify — Q1 2024 Earnings Presentation
16 slides from Doubleverify's earnings presentation, May 7, 2024
Slide 1: Q1 2024 Earnings Call
Q1 2024 Earnings Call May 7, 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: Q1 2024 Financial Highlights
Q1 2024 Financial Highlights $141 15% $32 MILLION GROWTH MILLION Total Total Revenue Net Cash from Revenue Growth Operating Activities $38 27% $0 MILLION MARGIN DEBT Adjusted Adjusted EBITDA No long-term EBITDA Margin debt 2
Slide 4: Social and CTV are DV's Fastest Growing Environments
Social and CTV are DV’s Fastest Growing Environments Digital Video is Growing Rapidly Social and CTV are DV’s Fastest Growing Environments DV’s Social Measurement Revenue Growth (% Y/Y) Digital Video 60% 51% 48% 50% Social Video CTV Video Online Video 40% 30% 20% 28% 81 % of Q1’24 social US Annual D
Slide 5: Multiple Dimensions of DV's Social Media Expansion
Multiple Dimensions of DV’s Social Media Expansion 1 2 3 Product Expansion Market Expansion Customer Expansion Brand safety and suitability Social Media Measurement capability coverage measurement across more ~50% Measurement languages and markets of Top 700 haven’t activated Brand Safety and Suitab
Slide 6: Unlocking the Vast Potential of CTV
Unlocking the Vast Potential of CTV Industry-Leading CTV Solutions Customized Value Proposition for CTV Unmatched Scale Show-level transparency CTV Authentic Attention Strong track record of quality and innovation 5
Slide 7: Winning a Large Customer Growth Opportunity
Winning a Large Customer Growth Opportunity Strong Q1’24 Win Momentum Large Customer Growth Opportunity ACQUIRE NEW 82% win rate across all opportunities in Q1’24 62% of our Q1’24 wins were greenfield 500 Potential to win more Top 1000 global advertisers OF THE GLOBAL TOP 1000 ADVERTISERS DID NOT WO
Slide 8: Expanding Scale and Connectivity in Retail Media Networks
Growing Retail Media Revenue and Coverage RMN MEASUREMENT REVENUE GROWTH >45 % Expanding Scale and Connectivity in Retail Growing Number of Key Global Retail Media Networks and Sites that Accept DV’s Measurement Tags Media Networks 90 82 80 76 70 63 60 51 50 40 30 20 10 0 Q2'23 Q3'23 Q4'23 Q1'24 7
Slide 9: Multiple Drivers of Long-Term Growth
Multiple Drivers of Long-Term Growth Strategic M&A International Current & Expansion • International Channel New Client Expansion New Product Expansion Growth / • Product/Technology Introduction & Acquisition Extensions Upsell • Product/ Technology Adjacencies >50% 17% 47% 31% of DV’s Top 700 of DV’
Slide 10: Q1 2024 Revenue Growth Drivers
Q1 2024 Revenue Growth Drivers Key Drivers Activation Measurement Supply-Side Q1 ’24 TOTAL REVENUE GROWTH OF 15% +13% +19% +8% year-over- year-over- year-over- Authentic Brand Suitability year growth year growth year growth $79 M $49 M Social measurement $12M $70 M $41M New Client Growth $11M Q1 '23
Slide 11: Q1 2024 Revenue Growth Drivers (cont'd)
Q1 2024 Revenue Growth Drivers (cont’d) Business Line Contribution to Total Revenue Advertiser Revenue Growth Drivers Q1 ’24 ADVERTISER REVENUE GROWTH OF 16% Activation 56% 91% VOLUME (MTM) PRICE (MTF) Measurement 35% Supply-side 9% of total revenue came from Advertiser Revenue (Activation + Measure
Slide 12: Q2 & FY 2024 Guidance
Q2 & FY 2024 Guidance VISION Q2 2024 Guidance FY 2024 Guidance Revenue Revenue $152 M - $156 M +15% $663 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 $41 M - $45 M 28% $199 M - $211 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% $669 33% +36% $573 31% +34% $205 +75% $452 33% $187 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 March 31, 2024 2023 (In Thousands) Net income $ 7,156 $ 12,175 Net income margin 5% 10% Depreciation and amortization 10,928 8,983 Stock-based compensation 20,241 11,813 Interest expense 232 256 Income tax expense 1,779 5,507 M&A and rest
Slide 16: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation a) M&A and restructuring costs for the three months ended March 31, 2024 consist of transaction costs related to the acquisition of Scibids Technology SAS (“Scibids”). b) Offering and secondary offering costs for the three months ended March 31, 2024 and Ma
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