Increased Revenue by 43% Year-over-Year to $96.7 Million, a Record for the First Quarter, Driven by Global Growth in Pre-Campaign Activation Across Programmatic, Social and CTV
Activation Revenue Increased 56% to $53.0 Million
Achieved Net Income of $4.6 Million and First Quarter Record Adjusted EBITDA of $24.7 Million
Raised Full Year 2022 Revenue and Adjusted EBITDA Outlook
DoubleVerify (“DV”) (NYSE: DV), a leading software platform for digital media measurement, data and analytics, today announced financial results for the first quarter ended March 31, 2022.
DoubleVerify (“DV”) (NYSE: DV), a leading software platform for digital media measurement, data and analytics, today announced financial results for the first quarter ended March 31, 2022.
“We came out of the gate exceptionally strong in 2022,” said Mark Zagorski, CEO of DoubleVerify. “Our investments in innovation and global scale have delivered record Q1 revenue and growth rates that exceeded our expectations. Revenue and volume on both activation and measurement grew as advertisers continued to embrace and expand their relationship with DV based on our essential, unbiased solutions. Our product innovation success, industry-leading accreditations in fast growing sectors such as programmatic and CTV and broader international footprint have yielded new enterprise client wins and meaningful expansion opportunities within our existing blue-chip customer base. We have raised our full year outlook and remain confident in our ability to sustain strong growth in 2022 and beyond.”
First Quarter 2022 Financial Highlights:
(All comparisons are to the first quarter of 2021)
- Total revenue of $96.7 million, an increase of 43%.
- Activation revenue of $53.0 million, an increase of 56%.
- Measurement revenue of $33.8 million, an increase of 23%.
- Media Transactions Measured (“MTM”) for CTV and Social increased by 55% and 22% respectively.
- International revenue increased by 40%, with EMEA revenue growth of 41% and APAC revenue growth of 38%.
- Supply-Side revenue of $9.9 million, an increase of 61%.
- Net income of $4.6 million and adjusted EBITDA of $24.7 million, which increased by 14% and represented a 26% adjusted EBITDA margin.
First Quarter and Recent Business Highlights:
- Grew Total Advertiser revenue by 41% year-over-year in the first quarter primarily due to a 27% increase in Media Transactions Measured (“MTM”) and a 7% increase in Measured Transaction Fee (“MTF”), and continued to achieve a Gross Revenue Retention rate of over 95% in the first quarter.
- Grew premium-priced Authentic Brand Suitability (ABS) revenues by approximately 52% year-over-year in the first quarter driven by existing client upsells and geographic expansion as well as by nearly 100 more clients using the solution in the first quarter of 2022 compared to the prior year period.
- Drove global market share growth through new logo wins including Best Buy, Subway, KFC, Travelers, Norwegian Cruise Lines and Oppo.
- Closed an enterprise deal with Best Buy who will rely on DV’s suite of measurement and performance solutions for its ad campaigns. In addition, DV will provide its services to Best Buy Ads, Best Buy’s In-House Media Company.
- First to earn Media Rating Council (MRC) accreditation for DV’s independent, third-party calculation and reporting of YouTube video viewability for desktop and mobile (web and app) using Google’s Ads Data Hub (ADH).
“We achieved strong first quarter revenue growth driven by our product success in fast-growth sectors such as Programmatic and CTV and delivered outperformance on adjusted EBITDA margins,” said Nicola Allais, CFO of DoubleVerify. “We continue to fuel our long-term growth trajectory using our strong cash position to continue to strategically invest in our business by hiring and retaining top talent and developing market-leading products. Visibility for the second quarter remains high, giving us the confidence to raise our revenue and adjusted EBITDA outlook for full year 2022.”
Second Quarter and Full-Year 2022 Guidance:
DoubleVerify anticipates Revenue and Adjusted EBITDA to be in the following ranges:
Second Quarter 2022:
- Revenue of $101 to $103 million, a year-over-year increase of 33% at the midpoint.
- Adjusted EBITDA in the range of $27 to $29 million, representing a 27% margin at the midpoint.
Full Year 2022:
- Revenue of $439 to $445 million, a year-over-year increase of 33% at the midpoint.
- Adjusted EBITDA in the range of $131 to $137 million, representing a 30% margin at the midpoint.
With respect to the Company’s expectations under “Second Quarter and Full Year 2022 Guidance” above, the Company has not reconciled the non-GAAP measure Adjusted EBITDA to the GAAP measure net income in this press release because the Company does not provide guidance for stock-based compensation expense, depreciation and amortization expense, acquisition-related costs, interest income, and income taxes on a consistent basis as the Company is unable to quantify these amounts without unreasonable efforts, which would be required to include a reconciliation of Adjusted EBITDA to GAAP net income. In addition, the Company believes such a reconciliation would imply a degree of precision that could be confusing or misleading to investors.
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