Doubleverify Holdings, Inc. · NYSE:DV
Doubleverify — Q4 2024 Earnings Presentation
21 slides from Doubleverify's earnings presentation, Feb 27, 2025
Slide 1: Q4 & FY 2024 Earnings Call
Q4 & FY 2024 Earnings Call February 27, 2025 1
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: 2024: A Year of Progress Amid Challenges
2024: A Year of Progress Amid Challenges GROWTH SCALE LEADERSHIP FY’24 Y/Y Revenue Growth FY’24 Media Transactions Measured (MTM) FY’24 Win Rate +15 % 8.3 T ~80 % 13% Activation 19% Increase in MTMs 64% <0.5% Greenfield wins All digital media 15% Measurement environments 25% Supply-side All formats
Slide 4: Turning Challenges into Opportunities
1. 2. Large customer Turning Challenges Ad Spend variability into Opportunities Shift Diversifying Revenue Launching Activation Solutions New Market Adding Large New Social Media PMPs & Direct Expansion Customers Platforms Programmatic • Entering performance measurement • 331 customers generated >$2
Slide 5: DV's Strategic Vision
DV’s Strategic Vision Unify media quality, optimization, and performance measurement to help advertisers maximize every ad dollar. Performance Media Quality Subhead Media Optimization Subhead Fraud free Measurement Eliminates waste Viewable Cross Platform Optimizes Tracks and Marketing Data and maxi
Slide 6: DV + Rockerbox Strategic Rationale
Leads Diversifies Replace With 75+ with Icon DV’s solution set into integrations across outcomes and performance digital media measurement Leverages DV + Expands DV’s quality data & Rockerbox DV’s TAM to include Scibids AI to drive mid-market and lower performance KPIs Strategic funnel advertisers m
Slide 7: Unlocking Growth in the $200B+ Social Ad Market
Unlocking Growth in the $200B+ Social Ad Market DV’s Social Media Growth Opportunity: Measurement Coverage: BRAND SAFETY AND SUITABILITY $659B1 Global Digital Ad Spend $329B1 Global Digital Ex-Search Ad Spend PENETRATION OPPORTUNITY VIEWABILITY $217B1 Global Digital Social Spend DV MEASURED ~5% OF A
Slide 8: Activation, CTV and Measurement growth
Activation CTV Measurement IMPRESSION VOLUMES >50% revenue growth +66% 11% Y/Y FY’24 GROWTH YEAR-OVER-YEAR OF FY’24 MEASUREMENT FY’24 GROWTH IMPRESSION VOLUMES Measurement PMP & PG Activation LAUNCHED SELL-SIDE CURATION & DECISIONING ACTIVATION SOLUTIONS ~190% revenue growth Open Auction PMP PG/PD Y
Slide 9: Driving Growth and Reach Across Global Retail Media Networks
Driving Growth and Reach Across Global Retail Media Networks YTD 2024 Retail Media Revenue Breakdown FY 24 Supply-Side Revenue Growth Driver FY 24 YEAR-OVER-YEAR REVENUE GROWTH Activation 68% RMNs RETAIL MEDIA TOTAL contribute to DV’s RMN supply-side solutions SUPPLY-SIDE SUPPLY-SIDE all three Suppl
Slide 10: Q4 2024 Financial Highlights
Q4 2024 Financial Highlights $191 11% $37 MILLION GROWTH MILLION Total Total Revenue Net Cash from Revenue Growth Operating Activities $74 39% $0 MILLION MARGIN DEBT Adjusted Adjusted EBITDA No long-term EBITDA Margin debt 10
Slide 11: Q4 2024 Revenue Growth Drivers
Q4 2024 Revenue Growth Drivers Q4 ’24 TOTAL REVENUE GROWTH OF 11% GROWTH ACROSS ALL THREE REVENUE LINES Key Drivers Activation Measurement Supply-Side Core Programmatic, Scibids AI +10% +7% +34% year-over- year-over- year-over- & Social Activation year growth year growth year growth $110 M $99 M Aut
Slide 12: Q4 2024 Revenue Growth Drivers (cont'd)
Q4 2024 Revenue Growth Drivers (cont’d) Business Line Contribution to Total Revenue Advertiser Revenue Growth Drivers Q4 ’24 ADVERTISER REVENUE GROWTH OF 9% Activation 57% Measurement 34% 91 % VOLUME (MTM) PRICE (MTF) Supply-side 9% OF Q4’24 REVENUE DRIVEN BY ADVERTISERS +14% -5% Activation Drivers:
Slide 13: FY 2024 Revenue Growth Drivers
FY 2024 Revenue Growth Drivers FY ’24 TOTAL REVENUE GROWTH OF 15% DOUBLE-DIGIT REVENUE GROWTH ACROSS ALL THREE BUSINESS LINES Key Drivers Activation Measurement Supply-Side Social Measurement +13% +15% +25% year-over- year-over- year-over- year growth year growth year growth $373 M Activation Soluti
Slide 14: Volume Driven Advertiser Revenue Growth
Volume Driven Advertiser Revenue Growth VISION Media Transactions Measured (MTM)1 Measured Transaction Fees (MTF)1 +23% +2% CAGR CAGR 8.3T 7.0T $0.072 $0.075 $0.072 $0.067 5.5T 4.5T 2021 2022 2023 2024 2021 2022 2023 2024 1.2024 MTM and MTF excludes the impact of an introductory fixed fee deal for o
Slide 15: Long Standing Relationships and Exceptional Retention
Long Standing Relationships and Exceptional Retention NET REVENUE RETENTION GROSS REVENUE RETENTION FY 2024 112% >95% Top Customer Tenure Average Revenue per Customer Number of Customers (Years)1 ($M)2 >$1M in Annual Revenue $4.2 110 8.9 $3.7 8.5 93 8.2 78 $2.6 $2.2 64 Top 75 Top 50 Top 25 2021 2022
Slide 16: Strategic Capital Allocation
Strategic Capital Allocation ACQUISITIONS SHARE REPURCHASES INVESTING IN CORE M&A Strategy FY’24 Progress Key Priorities Purchased a total of Accelerate product roadmap Social Media 4.2M shares for $78M Q4’24 Expand product/technology into new Purchased a total of CTV media environment adjacencies 6
Slide 17: Q1 & FY 2025 Guidance
Q1 & FY 2025 Guidance Q1 2025 Revenue Adjusted EBITDA $151 M - $155 M +9% $37 M - $41 M 25% YEAR-OVER-YEAR MARGIN Low-end High-end GROWTH AT THE Low-end High-end AT THE MIDPOINT MIDPOINT FY 2025 Revenue +10% Adjusted EBITDA 32% YEAR-OVER-YEAR MARGIN Expectations GROWTH Expectations (APPROXIMATELY) (
Slide 18: Proven History of Growth & Profitability
Proven History of Growth & Profitability Revenue Adjusted Ebitda1 $ in millions $ in millions YoY Growth Adj. EBITDA margin1 +15% +27% 33% +36% $657 33% +36% $573 31% $219 +34% $452 33% $187 +75% 38% 30% $333 $142 $244 25% $110 $183 $69 $73 $104 $27 2018A 2019A 2020A 2021A 2022A 2023A 2024A 2018A 20
Slide 19: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation ($mm) FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Net income $20.5 $29.3 $43.3 $71.5 $56.2 Depreciation and amortization 24.6 30.3 34.3 40.9 45.2 Stock-based compensation 20.5 21.9 42.3 59.2 90.7 Interest expense 4.9 1.2 0.9 1.1 1.1 Income tax expense (benefit)
Slide 20: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation (a) M&A and restructuring costs for the year ended December 31, 2024 consist of transaction costs related to the agreement to acquire Rockerbox, Inc. M&A and restructuring costs for the year ended December 31, 2023 consist of transaction costs related to th
Slide 21: 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
DoubleVerify Holdings — Q4 2024 Earnings Presentation on 6ix