Sign In  |  Register  |  About Los Altos  |  Contact Us

Los Altos, CA
September 01, 2020 1:26pm
7-Day Forecast | Traffic
  • Search Hotels in Los Altos

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

DoubleVerify Reports Fourth Quarter and Full Year 2023 Financial Results

Increased Fourth Quarter 2023 Revenue by 29% Year-over-Year to $172.2 Million

Grew Fourth Quarter 2023 Social Measurement Revenue by 62% Year-over Year

Achieved Fourth Quarter 2023 Net Income of $33.1 Million and Adjusted EBITDA of $65.4 Million, representing a 38% Adjusted EBITDA margin

Increased 2023 Revenue by 27% Year-over-Year to $572.5 Million Driven by Global Growth in Social, CTV Measurement and Programmatic Activation

Achieved 2023 Net Income of $71.5 Million and Adjusted EBITDA of $187.1 Million, representing a 33% Adjusted EBITDA margin

DoubleVerify (“DV”) (NYSE: DV), one of the leading software platforms for digital media measurement, data and analytics, today announced financial results for the fourth quarter and full year ended December 31, 2023.

“2023 was another year of exceptional growth and profitability driven by strong execution,” said Mark Zagorski, CEO of DoubleVerify. “We measured 7 trillion media transactions, grew revenue by 27% to more than $572 million, achieved 33% adjusted EBITDA margins and generated approximately $120 million of net cash from operating activities. DV continues to significantly outpace the growth of the broader digital advertising industry as our essential protection and performance solutions scale globally. Exciting differentiated growth opportunities such as Scibids AI and our expanded social video verification suite will leverage our unparalleled global scale and connectivity and leadership in innovation to drive exceptional media performance for global brands, fueling our long-term market share growth trajectory.”

Fourth Quarter 2023 Financial Highlights:

(All comparisons are to the fourth quarter of 2022)

  • Total revenue of $172.2 million, an increase of 29%.
  • Activation revenue of $99.4 million, an increase of 32%.
  • Measurement revenue of $60.4 million, an increase of 30%.
    • Social measurement revenue increased by 62%.
    • International measurement revenue increased by 43% with EMEA growth of 45% and APAC growth of 39%.
    • Media Transactions Measured (“MTM”) for CTV increased by 34%.
  • Supply-Side revenue of $12.4 million, an increase of 5%.
  • Net income of $33.1 million and adjusted EBITDA of $65.4 million, which represented a 38% adjusted EBITDA margin.

Full Year 2023 Financial Highlights:

(All comparisons are to full year 2022)

  • Total revenue of $572.5 million, an increase of 27%.
  • Media Transactions Measured (MTM) were 7 trillion, an increase of 25%.
  • Measured Transaction Fee (MTF) was $0.075, an increase of 3%.
  • Net Revenue Retention (NRR) of 124%.
  • Activation revenue of $328.9 million, an increase of 31%.
  • Measurement revenue of $198.0 million, an increase of 25%.
    • Social measurement revenue increased by 48%.
    • International revenue increased by 43%.
    • Media Transactions Measured for CTV increased by 33%.
  • Supply-Side revenue of $45.6 million, an increase of 5%.
  • Net income of $71.5 million, an increase of 65%.
  • Adjusted EBITDA of $187.1 million, an increase of 32%, representing a 33% adjusted EBITDA margin.

Fourth Quarter and Recent Business Highlights:

  • Grew Total Advertiser revenue by 31% year-over-year in the fourth quarter primarily due to a 25% increase in MTM and a 5% increase in MTF.
  • Continued to achieve a Gross Revenue Retention rate of over 95% in the fourth quarter.
  • Grew premium-priced Authentic Brand Suitability (ABS) revenues by 45% year-over-year in the fourth quarter primarily due to volume expansion by large existing global advertisers as well as by new customer activations.
  • Drove global market share growth through product upsells, international expansion and new enterprise logo wins. Notable new business wins include: Haleon and Walgreens.
  • Launched Brand Safety and Suitability measurement on Facebook and Instagram Feeds and Reels, creating greater transparency across some of the most engaging user-generated content environments in the world.
  • Expanded Brand Safety and Suitability measurement capabilities to YouTube Shorts in the fourth quarter, following the launch of viewability and invalid traffic measurement across YouTube Shorts in the third quarter of 2023.
  • Launched a first-of-its-kind activation solution that combines DV pre-screen brand suitability technology with Scibids AI to boost advertiser protection and improve campaign efficiency and performance on Social video.
  • Expanded relationship with LinkedIn to provide supply-side fraud prevention and brand safety and fraud measurement solutions across Linkedin’s Audience Network.
  • Partnered with Criteo on the upcoming launch of an industry leading solution that measures onsite invalid traffic (IVT), brand suitability, and viewability on Criteo’s network of retail media partners, with plans to combine Criteo’s outcomes data with DV Authentic Attention data in the future, allowing advertisers to correlate attention with business outcomes.
  • Partnered with InMobi for fraud avoidance and viewability, brand safety and fraud measurement, a supply-side win that was driven by InMobi’s commitment to working with best-in-class partners who provide advertisers with a meaningful return-on-investment.
  • Expanded industry-leading Universal Attention segments to Amazon and Viant’s DSPs.
  • Launched new tiered brand suitability categories to address “Made For Advertising” (MFA) measurement and protection in a more nuanced and brand-specific way, providing advertisers with enhanced granularity and control to determine the level of protection that best suits their requirements.

“Once again, DV delivered a powerful combination of growth and profitability,” said Nicola Allais, CFO of DoubleVerify. “Our industry-leading 29% year-over-year revenue growth and 38% adjusted EBITDA margins in the fourth quarter are a testament to the strength of our platform and our ability to balance innovation and new business growth with strong profitability and cash flow generation. We remain focused on execution in 2024 and are excited about our solid pipeline of new and expansionary business opportunities as we continue to meaningfully outpace the digital advertising industry and gain market share.”

First Quarter and Full-Year 2024 Guidance:

DoubleVerify anticipates Revenue and Adjusted EBITDA to be in the following ranges:

First Quarter 2024:

  • Revenue of $136 to $140 million, a year-over-year increase of 13% at the midpoint.
  • Adjusted EBITDA in the range of $33 to $37 million, representing a 25% margin at the midpoint.

Full Year 2024:

  • Revenue of $688 to $704 million, a year-over-year increase of 22% at the midpoint.
  • Adjusted EBITDA in the range of $205 to $221 million, representing a 31% margin at the midpoint.

With respect to the Company’s expectations under "First Quarter and Full-Year 2024 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 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.

Conference Call, Webcast and Other Information

DoubleVerify will host a conference call and live webcast to discuss its fourth quarter 2023 financial results at 4:30 p.m. Eastern Time today, February 28, 2024. To access the conference call, dial (877) 841-2987 for the U.S. or Canada, or (215) 268-9878 for international callers. The webcast will be available live on the Investors section of the Company’s website at https://ir.doubleverify.com/. An archived webcast will be available approximately two hours after the conclusion of the live event.

In addition, DoubleVerify plans to post certain additional historical quarterly financial information on the investor relations portion of its website for easy access to investors.

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 impressions that are directly purchased on digital media properties, including publishers and social media platforms.

Supply-Side revenue is generated from platforms and publisher partners who use DoubleVerify’s data analytics to evaluate, verify and measure their advertising inventory.

Gross Revenue Retention Rate is the total prior period revenue earned from advertiser customers, less the portion of prior period revenue attributable to lost advertiser customers, divided by the total prior period revenue from advertiser customers.

Media Transactions Measured (MTM) is the volume of media transactions that DoubleVerify’s software platform measures.

Measured Transaction Fee (MTF) is the fixed fee DoubleVerify charges per thousand Media Transactions Measured.

International Revenue Growth Rates are inclusive of foreign currency fluctuations.

DoubleVerify Holdings, Inc.

CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

 

 

As of December 31,

(in thousands, except per share data)

 

2023

 

2022

Assets:

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

310,131

 

 

$

267,813

 

Trade receivables, net of allowances for doubtful accounts of $9,442 and $8,893 as of December 31, 2023 and December 31, 2022, respectively

 

 

206,941

 

 

 

167,122

 

Prepaid expenses and other current assets

 

 

15,930

 

 

 

10,161

 

Total current assets

 

 

533,002

 

 

 

445,096

 

Property, plant and equipment, net

 

 

58,020

 

 

 

47,034

 

Operating lease right-of-use assets, net

 

 

60,470

 

 

 

64,692

 

Goodwill

 

 

436,008

 

 

 

343,011

 

Intangible assets, net

 

 

140,883

 

 

 

135,429

 

Deferred tax assets

 

 

13,077

 

 

 

35

 

Other non‑current assets

 

 

1,571

 

 

 

1,731

 

Total assets

 

$

1,243,031

 

 

$

1,037,028

 

Liabilities and Stockholder’s Equity:

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Trade payables

 

$

12,932

 

 

$

6,675

 

Accrued expense

 

 

44,264

 

 

 

33,085

 

Operating lease liabilities, current

 

 

9,029

 

 

 

7,041

 

Income tax liabilities

 

 

5,833

 

 

 

11,953

 

Current portion of finance lease obligations

 

 

2,934

 

 

 

1,846

 

Other current liabilities

 

 

8,863

 

 

 

8,310

 

Total current liabilities

 

 

83,855

 

 

 

68,910

 

Operating lease liabilities, non-current

 

 

71,563

 

 

 

74,086

 

Finance lease obligations

 

 

2,865

 

 

 

779

 

Deferred tax liabilities

 

 

8,119

 

 

 

12,890

 

Other non‑current liabilities

 

 

2,690

 

 

 

3,504

 

Total liabilities

 

 

169,092

 

 

 

160,169

 

Commitments and contingencies (Note 16)

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

Common stock, $0.001 par value, 1,000,000 shares authorized, 171,168 shares issued and 171,146 outstanding as of December 31, 2023; 1,000,000 shares authorized, 165,448 shares issued and 165,417 outstanding as of December 31, 2022

 

 

171

 

 

 

165

 

Additional paid‑in capital

 

 

878,331

 

 

 

756,299

 

Treasury stock, at cost, 22 shares and 31 shares as of December 31, 2023 and December 31, 2022, respectively

 

 

(743

)

 

 

(796

)

Retained earnings

 

 

198,983

 

 

 

127,517

 

Accumulated other comprehensive loss, net of income taxes

 

 

(2,803

)

 

 

(6,326

)

Total stockholders’ equity

 

 

1,073,939

 

 

 

876,859

 

Total liabilities and stockholders’ equity

 

$

1,243,031

 

 

$

1,037,028

 

DoubleVerify Holdings, Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

(in thousands, except per share data)

 

2023

 

2022

 

2021

Revenue

 

$

572,543

 

 

$

452,418

 

 

$

332,741

 

Cost of revenue (exclusive of depreciation and amortization shown separately below)

 

 

106,631

 

 

 

77,866

 

 

 

54,382

 

Product development

 

 

125,376

 

 

 

95,118

 

 

 

62,698

 

Sales, marketing and customer support

 

 

125,953

 

 

 

107,416

 

 

 

77,312

 

General and administrative

 

 

87,971

 

 

 

78,666

 

 

 

81,380

 

Depreciation and amortization

 

 

40,885

 

 

 

34,328

 

 

 

30,285

 

Income from operations

 

 

85,727

 

 

 

59,024

 

 

 

26,684

 

Interest expense

 

 

1,066

 

 

 

905

 

 

 

1,172

 

Other income, net

 

 

(11,216

)

 

 

(1,249

)

 

 

(309

)

Income before income taxes

 

 

95,877

 

 

 

59,368

 

 

 

25,821

 

Income tax expense (benefit)

 

 

24,411

 

 

 

16,100

 

 

 

(3,487

)

Net income

 

$

71,466

 

 

$

43,268

 

 

$

29,308

 

Earnings per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.43

 

 

$

0.26

 

 

$

0.20

 

Diluted

 

$

0.41

 

 

$

0.25

 

 

$

0.18

 

Weighted‑average common stock outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

 

167,803

 

 

 

163,882

 

 

 

148,309

 

Diluted

 

 

173,435

 

 

 

170,755

 

 

 

160,264

 

Comprehensive income:

 

 

 

 

 

 

 

 

 

Net income

 

$

71,466

 

 

$

43,268

 

 

$

29,308

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

Foreign currency cumulative translation adjustment

 

 

3,523

 

 

 

(5,555

)

 

 

(1,782

)

Total comprehensive income

 

$

74,989

 

 

$

37,713

 

 

$

27,526

 

DoubleVerify Holdings, Inc.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive

 

 

 

 

 

Common Stock

 

Preferred Stock

 

 

 

 

 

 

Additional

 

 

 

 

Loss,

 

Total

 

 

Shares

 

 

 

 

Shares

 

 

 

 

Treasury Stock

 

Paid‑in

 

Retained

 

Net of

 

Stockholders’

(in thousands)

 

Issued

 

Amount

 

Issued

 

Amount

 

Shares

 

Amount

 

Capital

 

Earnings

 

Income Taxes

 

Equity

Balances as of January 1, 2021

 

140,222

 

$

140

 

61,006

 

 

$

610

 

 

15,146

 

 

$

(260,686

)

 

$

620,679

 

 

$

54,941

 

$

1,011

 

 

$

416,695

 

Foreign currency translation adjustment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,782

)

 

 

(1,782

)

Shares repurchased for settlement of employee tax withholdings

 

 

 

 

 

 

 

 

 

50

 

 

 

(1,802

)

 

 

 

 

 

 

 

 

 

 

(1,802

)

Issuance of common stock as consideration for acquisition

 

684

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

22,525

 

 

 

 

 

 

 

 

22,526

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

21,887

 

 

 

 

 

 

 

 

21,887

 

Common stock issued under employee purchase plan

 

15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

404

 

 

 

 

 

 

 

 

404

 

Common stock issued upon exercise of stock options

 

4,782

 

 

5

 

 

 

 

 

 

 

 

 

 

 

 

12,435

 

 

 

 

 

 

 

 

12,440

 

Common stock issued upon vesting of restricted stock units

 

366

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Conversion of Series A preferred stock to common stock

 

5,190

 

 

5

 

(61,006

)

 

 

(610

)

 

(15,146

)

 

 

260,686

 

 

 

(260,081

)

 

 

 

 

 

 

 

 

Issuance of common stock upon initial public offering

 

9,977

 

 

10

 

 

 

 

 

 

 

 

 

 

 

 

269,380

 

 

 

 

 

 

 

 

269,390

 

Private placement stock issuance concurrent with initial public offering

 

1,111

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

29,999

 

 

 

 

 

 

 

 

30,000

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

29,308

 

 

 

 

 

29,308

 

Balances as of December 31, 2021

 

162,347

 

$

162

 

 

 

$

 

 

50

 

 

$

(1,802

)

 

$

717,228

 

 

$

84,249

 

$

(771

)

 

$

799,066

 

Foreign currency translation adjustment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,555

)

 

 

(5,555

)

Shares repurchased for settlement of employee tax withholdings

 

 

 

 

 

 

 

 

 

402

 

 

 

(10,244

)

 

 

 

 

 

 

 

 

 

 

(10,244

)

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

42,787

 

 

 

 

 

 

 

 

42,787

 

Common stock issued to non-employees

 

4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock issued upon exercise of stock options

 

1,518

 

 

2

 

 

 

 

 

 

 

 

 

 

 

 

5,801

 

 

 

 

 

 

 

 

5,803

 

Common stock issued upon vesting of restricted stock units

 

1,488

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

Common stock issued under employee purchase plan

 

91

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,734

 

 

 

 

 

 

 

 

1,734

 

Treasury stock reissued upon settlement of equity awards

 

 

 

 

 

 

 

 

 

(421

)

 

 

11,250

 

 

 

(11,250

)

 

 

 

 

 

 

 

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

43,268

 

 

 

 

 

43,268

 

Balances as of December 31, 2022

 

165,448

 

$

165

 

 

 

$

 

 

31

 

 

$

(796

)

 

$

756,299

 

 

$

127,517

 

$

(6,326

)

 

$

876,859

 

Foreign currency translation adjustment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,523

 

 

 

3,523

 

Shares repurchased for settlement of employee tax withholdings

 

 

 

 

 

 

 

 

 

142

 

 

 

(4,586

)

 

 

 

 

 

 

 

 

 

 

(4,586

)

Issuance of common stock as consideration for acquisition

 

1,642

 

 

2

 

 

 

 

 

 

 

 

 

 

 

 

52,935

 

 

 

 

 

 

 

 

52,937

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

60,351

 

 

 

 

 

 

 

 

60,351

 

Common stock issued under employee purchase plan

 

105

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,723

 

 

 

 

 

 

 

 

2,723

 

Common stock issued upon exercise of stock options

 

2,634

 

 

3

 

 

 

 

 

 

 

 

 

 

 

 

10,663

 

 

 

 

 

 

 

 

10,666

 

Common stock issued upon vesting of restricted stock units

 

1,339

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

Treasury stock reissued upon settlement of equity awards

 

 

 

 

 

 

 

 

 

(151

)

 

 

4,639

 

 

 

(4,639

)

 

 

 

 

 

 

 

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

71,466

 

 

 

 

 

71,466

 

Balances as of December 31, 2023

 

171,168

 

$

171

 

 

 

$

 

 

22

 

 

$

(743

)

 

$

878,331

 

 

$

198,983

 

$

(2,803

)

 

$

1,073,939

 

DoubleVerify Holdings, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

(in thousands)

 

2023

 

2022

 

2021

Operating activities:

 

 

 

 

 

 

 

 

 

Net income

 

$

71,466

 

 

$

43,268

 

 

$

29,308

 

Adjustments to reconcile net income to net cash provided by operating activities

 

 

 

 

 

 

 

 

 

Bad debt expense (recovery)

 

 

10,075

 

 

 

5,033

 

 

 

(711

)

Depreciation and amortization expense

 

 

40,885

 

 

 

34,328

 

 

 

30,285

 

Amortization of debt issuance costs

 

 

294

 

 

 

294

 

 

 

294

 

Non-cash lease expense

 

 

6,727

 

 

 

7,339

 

 

 

 

Deferred taxes

 

 

(25,046

)

 

 

(19,581

)

 

 

(7,866

)

Stock-based compensation expense

 

 

59,244

 

 

 

42,307

 

 

 

21,887

 

Interest expense

 

 

68

 

 

 

107

 

 

 

103

 

Loss on disposal of fixed assets

 

 

5

 

 

 

1,353

 

 

 

 

Impairment of long-lived assets

 

 

 

 

 

1,510

 

 

 

 

Change in fair value of contingent consideration

 

 

(1,193

)

 

 

 

 

 

57

 

Offering costs

 

 

 

 

 

 

 

 

22,074

 

Other

 

 

492

 

 

 

87

 

 

 

733

 

Changes in operating assets and liabilities, net of effects of business combinations

 

 

 

 

 

 

 

 

 

Trade receivables

 

 

(43,691

)

 

 

(49,765

)

 

 

(22,004

)

Prepaid expenses and other assets

 

 

(5,591

)

 

 

9,094

 

 

 

(7,567

)

Trade payables

 

 

5,476

 

 

 

2,884

 

 

 

(49

)

Accrued expenses and other liabilities

 

 

530

 

 

 

16,604

 

 

 

16,205

 

Net cash provided by operating activities

 

 

119,741

 

 

 

94,862

 

 

 

82,749

 

Investing activities:

 

 

 

 

 

 

 

 

 

Purchase of property, plant and equipment

 

 

(17,009

)

 

 

(39,981

)

 

 

(9,397

)

Acquisition of businesses, net of cash acquired

 

 

(67,240

)

 

 

 

 

 

(149,217

)

Net cash used in investing activities

 

 

(84,249

)

 

 

(39,981

)

 

 

(158,614

)

Financing activities:

 

 

 

 

 

 

 

 

 

Payments of long-term debt

 

 

 

 

 

 

 

 

(22,000

)

Deferred payment related to Zentrick acquisition

 

 

 

 

 

 

 

 

(50

)

Proceeds from revolving credit facility

 

 

50,000

 

 

 

 

 

 

 

Payments to revolving credit facility

 

 

(50,000

)

 

 

 

 

 

 

Payment of contingent consideration related to Zentrick acquisition

 

 

 

 

 

(3,247

)

 

 

 

Proceeds from common stock issued upon exercise of stock options

 

 

10,666

 

 

 

5,803

 

 

 

12,440

 

Proceeds from common stock issued under employee purchase plan

 

 

2,723

 

 

 

1,734

 

 

 

404

 

Proceeds from issuance of common stock upon initial public offering

 

 

 

 

 

 

 

 

269,390

 

Proceeds from issuance of common stock in connection to concurrent private placement

 

 

 

 

 

 

 

 

30,000

 

Payments related to offering costs

 

 

 

 

 

(6

)

 

 

(22,069

)

Finance lease payments

 

 

(2,314

)

 

 

(1,924

)

 

 

(1,918

)

Shares repurchased for settlement of employee tax withholdings

 

 

(4,586

)

 

 

(10,244

)

 

 

(1,802

)

Net cash provided by (used in) financing activities

 

 

6,489

 

 

 

(7,884

)

 

 

264,395

 

Effect of exchange rate changes on cash and cash equivalents and restricted cash

 

 

338

 

 

 

(784

)

 

 

(200

)

Net increase in cash, cash equivalents, and restricted cash

 

 

42,319

 

 

 

46,213

 

 

 

188,330

 

Cash, cash equivalents, and restricted cash—Beginning of period

 

 

267,938

 

 

 

221,725

 

 

 

33,395

 

Cash, cash equivalents, and restricted cash—End of period

 

$

310,257

 

 

$

267,938

 

 

$

221,725

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

310,131

 

 

$

267,813

 

 

$

221,591

 

Restricted cash (included in prepaid expenses and other assets on the Consolidated Balance Sheets)

 

 

126

 

 

 

125

 

 

 

134

 

Total cash and cash equivalents and restricted cash

 

$

310,257

 

 

$

267,938

 

 

$

221,725

 

Supplemental cash flow information:

 

 

 

 

 

 

 

 

 

Cash paid for taxes

 

$

60,883

 

 

$

12,351

 

 

$

7,698

 

Cash paid for interest

 

$

714

 

 

$

554

 

 

$

774

 

Non‑cash investing and financing transactions:

 

 

 

 

 

 

 

 

 

Right-of-use assets obtained in exchange for new operating lease liabilities, net of impairments and tenant improvement allowances

 

$

2,547

 

 

$

71,979

 

 

$

 

Acquisition of equipment under finance lease

 

$

5,479

 

 

$

 

 

$

1,518

 

Capital assets financed by accounts payable and accrued expenses

 

$

261

 

 

$

12

 

 

$

36

 

Stock-based compensation included in capitalized software development costs

 

$

1,103

 

 

$

480

 

 

$

 

Common stock issued in connection with acquisition

 

$

52,937

 

 

$

 

 

$

22,526

 

Liabilities for contingent consideration

 

$

1,193

 

 

$

 

 

$

 

Treasury stock reissued upon the conversion of Series A preferred stock for common stock

 

$

 

 

$

 

 

$

260,686

 

Offering costs included in accounts payable and accrued expense

 

$

 

 

$

 

 

$

5

 

Comparison of the Three and Twelve Months Ended December 31, 2023 and December 31, 2022

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

Change

 

Change

 

Year Ended December 31,

 

Change

 

Change

 

2023

 

2022

 

$

 

%

 

2023

 

2022

 

$

 

%

 

(In Thousands)

 

 

 

 

 

 

 

(In Thousands)

 

 

 

 

 

 

Revenue by customer type:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Activation

$

99,402

 

$

75,502

 

$

23,900

 

32

%

 

$

328,936

 

$

251,198

 

$

77,738

 

31

%

Measurement

 

60,387

 

 

46,324

 

 

14,063

 

30

 

 

 

198,024

 

 

157,908

 

 

40,116

 

25

 

Supply-side customer

 

12,442

 

 

11,810

 

 

632

 

5

 

 

 

45,583

 

 

43,312

 

 

2,271

 

5

 

Total revenue

$

172,231

 

$

133,636

 

$

38,595

 

29

%

 

$

572,543

 

$

452,418

 

$

120,125

 

27

%

Adjusted EBITDA

In addition to results determined in accordance with GAAP, management believes that certain non-GAAP financial measures, including Adjusted EBITDA and Adjusted EBITDA Margin, are useful in evaluating our business. Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by total revenue. The following table presents a reconciliation of Adjusted EBITDA, a non-GAAP financial measure, to the most directly comparable financial measure prepared in accordance with GAAP.

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

Year Ended 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-based compensation

 

16,473

 

 

 

11,083

 

 

 

59,244

 

 

 

42,307

 

Interest expense

 

275

 

 

 

224

 

 

 

1,066

 

 

 

905

 

Income tax expense

 

8,636

 

 

 

11,979

 

 

 

24,411

 

 

 

16,100

 

M&A and restructuring (recoveries) costs (a)

 

(359

)

 

 

5

 

 

 

1,262

 

 

 

1,224

 

Offering, IPO readiness and secondary offering costs (b)

 

315

 

 

 

566

 

 

 

910

 

 

 

1,292

 

Other (recoveries) costs (c)

 

(164

)

 

 

(245

)

 

 

(964

)

 

 

3,414

 

Other income (d)

 

(4,373

)

 

 

(1,671

)

 

 

(11,216

)

 

 

(1,249

)

Adjusted EBITDA

$

65,428

 

 

$

48,891

 

 

$

187,064

 

 

$

141,589

 

Adjusted EBITDA margin

 

38

%

 

 

37

%

 

 

33

%

 

 

31

%

  1. 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, integration and restructuring costs related to the acquisition of OpenSlate.
  2. Offering, IPO readiness and secondary offering costs for the year ended December 31, 2023 consist of third-party costs incurred for underwritten secondary public offerings by certain stockholders of the Company. Offering, IPO readiness and secondary offering costs for the year ended December 31, 2022 consist of third-party costs incurred for the Company’s filing of a “shelf” registration statement on Form S-3, and costs incurred for an underwritten secondary public offering by certain stockholders of the Company.
  3. Other recoveries for the year ended December 31, 2023 consist of sublease income for leased office space. Other costs for the year ended December 31, 2022 consist of costs related to the departures of the Company’s former Chief Operating Officer and Chief Customer Officer, impairment related to a subleased office space and costs related to the disposal of furniture for unoccupied lease office space, partially offset by sublease income for lease office space.
  4. Other income for the years ended December 31, 2023 and 2022 consists of interest income earned on interest-bearing monetary assets, changes in fair value associated with contingent consideration, and the impact of changes in foreign currency exchange rates.

We use Adjusted EBITDA and Adjusted EBITDA Margin as measures of operational efficiency to understand and evaluate our core business operations. We believe that these non-GAAP financial measures are useful to investors for period to period comparisons of the core business and for understanding and evaluating trends in operating results on a consistent basis by excluding items that we do not believe are indicative of our core operating performance.

These non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as substitutes for an analysis of our results as reported under GAAP. Some of the limitations of these measures are:

  • they do not reflect changes in, or cash requirements for, working capital needs;
  • Adjusted EBITDA does not reflect capital expenditures or future requirements for capital expenditures or contractual commitments;
  • they do not reflect income tax expense or the cash requirements to pay income taxes;
  • they do not reflect interest expense or the cash requirements necessary to service interest or principal debt payments; and
  • although depreciation and amortization are non-cash charges related mainly to intangible assets, certain assets being depreciated and amortized will have to be replaced in the future, and Adjusted EBITDA does not reflect any cash requirements for such replacements.

In addition, other companies in the industry may calculate these non-GAAP financial measures differently, therefore limiting their usefulness as a comparative measure. You should compensate for these limitations by relying primarily on our GAAP results and using the non-GAAP financial measures only supplementally.

Total stock-based compensation expense recorded in the Consolidated Statements of Operations and Comprehensive Income is as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

 

December 31,

 

December 31,

(in thousands)

 

2023

 

2022

 

2023

 

2022

Product development

 

$

6,366

 

$

4,455

 

$

22,955

 

$

15,030

Sales, marketing and customer support

 

 

5,101

 

 

3,547

 

 

18,299

 

 

14,265

General and administrative

 

 

5,006

 

 

3,081

 

 

17,990

 

 

13,012

Total stock‑based compensation

 

$

16,473

 

$

11,083

 

$

59,244

 

$

42,307

The weighted average basic and diluted shares outstanding for the three months and year ended December 31, 2023 is as follows:

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

(in thousands)

 

December 31, 2023

 

December 31, 2023

Weighted‑average common shares outstanding:

 

 

 

 

Basic

 

170,374

 

167,803

Diluted

 

175,008

 

173,435

Forward-Looking Statements

This press release includes “forward-looking statements”. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “plan,” “seek,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe” or “continue” or the negative thereof or variations thereon or similar terminology. Any statements in this press release regarding future revenues, earnings, margins, financial performance or results of operations (including the guidance provided under “First Quarter and Full-Year 2024 Guidance”), and any other statements that are not historical facts are forward-looking statements. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. We caution you that the forward-looking information presented in this press release is not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking information contained in this press release. These risks, uncertainties, assumptions and other factors include, but are not limited to, the competitiveness of our solutions amid technological developments or evolving industry standards, the competitiveness of our market, system failures, security breaches, cyberattacks or natural disasters, economic downturns and unstable market conditions, our ability to collect payments, data privacy legislation and regulation, public criticism of digital advertising technology, our international operations, our use of “open source” software, our limited operating history and the potential for our revenues and results of operations to fluctuate in the future. Moreover, we operate in a very competitive and rapidly changing environment, and new risks may emerge from time to time. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make.

Further information on these and additional risks, uncertainties, and other factors that could cause actual outcomes and results to differ materially from those included in or contemplated by the forward-looking statements contained in this press release are included under the caption “Risk Factors” under our Annual Report on Form 10-K filed with the SEC on February 28, 2024 and other filings and reports we make with the SEC from time to time.

We have based our forward-looking statements on our management’s beliefs and assumptions based on information available to our management at the time the statements are made. Any forward-looking information presented herein is made only as of the date of this press release, and, except as required by law, we do not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

About DoubleVerify

DoubleVerify (“DV”) (NYSE: DV) is the industry’s leading media effectiveness platform that leverages AI to drive superior outcomes for global brands. By creating more effective, transparent ad transactions, we make the digital advertising ecosystem stronger, safer and more secure, thereby preserving the fair value exchange between buyers and sellers of digital media. Learn more at www.doubleverify.com.

Contacts

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 LosAltos.com & California Media Partners, LLC. All rights reserved.