Doubleverify Holdings, Inc. · NYSE:DV
Doubleverify — Q3 2023 Earnings Presentation
18 slides from Doubleverify's earnings presentation, Nov 9, 2023
Slide 1: Q3 2023 Earnings Call
Q3 2023 Earnings Call November 9, 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: DV's Matrix of Growth Drivers
DV’s Matrix of Growth Drivers Channel Expansion Programmatic DSPs Retail Media Networks Product New Client Social Platforms CTV & Upsell Wins • Activation • New • Measurement • Existing Geographic Expansion • Americas • EMEA • APAC 2
Slide 4: Continued Customer Wins & Expansion Momentum
Continued Customer Wins & Expansion Momentum Select Q3 2023 New Enterprise Logo Wins Select Q3 2023 Existing Client Expansion >80% 67 % WIN RATE YTD 2023 GREENFIELD WINS Q3 2023 3
Slide 5: Large Product Cross-Sell and Up-Sell Opportunity
Large Product Cross-Sell and Up-Sell Opportunity Top 700 More than 50% use less than Top 50 More than 50% use more CLIENTS 4 products CLIENTS than 6 products DV Revenue Multiplier Opportunity 1 13.2x Our products are complementary and provide compounding benefits when used together 9.3x 6.0x 3.6x +
Slide 6: Our Three Core Differentiators
Our Three Core Differentiators Scale Innovation Trust Across Platforms Identifier Independent Accredited & Objective and Industry Leading 5
Slide 7: Expanding Coverage Scale
Scale Expanding Coverage Scale Social Retail Media Programmatic CTV 56% 75% 40% 29% year-over-year year-over-year year-over-year ABS year-over-year revenue growth in revenue growth in revenue growth in volume growth in Q3 2023 Q3 2023 Q3 2023 Q3 2023 62% year-over-year measurement International reve
Slide 8: Industry-Leading Innovation
Innovation Industry-Leading Innovation Only scaled solutions in market today Attention DV-Scibids Brand Suitability DV Authentic Attention Integrated optimization Scaled MFA solution in market Attain and TVision DV Algorithmic Optimizer partnerships Greatest granularity and customization 7
Slide 9: Drivers of DV's Brand Suitability Leadership in Social
Drivers of DV’s Brand Suitability Leadership in Social Highest Only GRANULARITY SOCIAL PRE & POST PRODUCT of Categories DIFFERENTIATORS Optimization Greatest CLASSIFICATION Accuracy 8
Slide 10: Leading the Market in Privacy & Data Security
Trust Leading the Market in Privacy & Data Security Only Ad Verification & Performance Measurement Company with Comprehensive Certifications1 DV CERTIFICATIONS ISO 27001 APEC CBPR SOC 2 Type II APEC PRP EU-US, UK-US Neutronian Cookie Free and Swiss-US DPF 1. Peer information is based on research of
Slide 11: Q3 2023 Financial Highlights
Q3 2023 Financial Highlights $144 28% $259 MILLION GROWTH MILLION Total Total Revenue Cash and Revenue Growth Cash Equivalents $46 32% $0 MILLION MARGIN DEBT Adjusted Adjusted EBITDA No long-term EBITDA Margin debt 10
Slide 12: Strong Q3 and Nine Months Ended Sept 30, 2023
Strong Q3 and Nine Months Ended Sept 30, 2023 Q3 2023 Nine Months Ended 9/30/23 Total Revenue Adj. EBITDA Total Revenue Adj. EBITDA $144.0 $45.7 $400.3 $121.6 MILLION MILLION MILLION MILLION +28% 32% +26% 30% GROWTH1 MARGINS2 GROWTH1 MARGINS2 1. Year-over-year growth rate 2. See Appendix for a recon
Slide 13: Q3 2023 Revenue Growth Drivers
Q3 2023 Revenue Growth Drivers Business Line Contribution to Total Revenue Advertiser Revenue Growth Drivers Q3 ’23 ADVERTISER REVENUE GROWTH OF 32% Activation ~57% 92% VOLUME (MTM) PRICE (MTF) Measurement ~35% Supply-side ~8% of total revenue came from Advertiser Revenue (Activation + Measurement)
Slide 14: Q3 2023 Revenue Growth Drivers (cont'd)
Q3 2023 Revenue Growth Drivers (cont’d) Key Drivers Activation Measurement Supply-Side Q3 ’23 TOTAL REVENUE GROWTH OF 28% +31% +32% -2% year-over- year-over- year-over- Social year growth year growth year growth $81.7 M $11.2 M $11.0 M $51.3 M Programmatic $62.2 M $38.8 M Retail Media & CTV Q3 '22 Q
Slide 15: Q3 & FY 2023 Guidance
Q3 & FY 2023 Guidance VISION Q4 2023 Guidance FY 2023 Guidance Revenue Revenue $170 M - $174 M +29% $570 M - $574 M +27% 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 $57 M - $61 M 34% $179 M - $183 M 32%
Slide 16: 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
Slide 17: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (In Thousands) (In Thousands) Net income $ 13,347 $ 10,331 $ 38,361 $ 25,200 Net income margin 9% 9% 10% 8% Depreciation and amortization 10,706 8,089 29,365 25,446 Stock-b
Slide 18: 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 Technology SAS (“Scibids”). M&A and restructuring costs for the three and nine months ended September 3
DoubleVerify Holdings — Q3 2023 Earnings Presentation on 6ix