DoubleVerify Holdings, Inc. (DV) Bundle
A Brief History of H3
As of 2024, H3 has seen significant growth and development within its operational framework. The company reported total revenue of $466.2 million for the nine months ended September 30, 2024, an increase of 16% from $400.3 million in the same period the previous year.
Revenue Breakdown
For the three months ended September 30, 2024, total revenue was $169.6 million, marking an 18% increase from $144.0 million in the prior year. The revenue from advertisers grew by $22.3 million, or 17%, due to a 22% increase in Media Transactions Measured.
| Revenue Type | Q3 2024 (in $ thousands) | Q3 2023 (in $ thousands) | Change (%) |
|---|---|---|---|
| Activation Revenue | 96,791 | 81,700 | 18% |
| Measurement Revenue | 58,468 | 51,263 | 14% |
| Supply-side Revenue | 14,297 | 11,011 | 30% |
| Total Revenue | 169,556 | 143,974 | 18% |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $321.2 million, compared to $278.4 million for the same period in 2023, representing a 15% increase. The breakdown includes:
- Cost of Revenue: $82.2 million (up from $76.6 million)
- Product Development: $115.5 million (up from $92.8 million)
- Sales, Marketing, and Customer Support: $123.3 million (up from $90.2 million)
- General and Administrative: $68.2 million (up from $63.2 million)
| Expense Type | 9M 2024 (in $ millions) | 9M 2023 (in $ millions) | Change (%) |
|---|---|---|---|
| Cost of Revenue | 82.2 | 76.6 | 7% |
| Product Development | 115.5 | 92.8 | 24% |
| Sales, Marketing, and Customer Support | 123.3 | 90.2 | 37% |
| General and Administrative | 68.2 | 63.2 | 8% |
Net Income
Net income for the nine months ended September 30, 2024, was $32.8 million, compared to $38.4 million for the same period in 2023, reflecting a decrease of 14%. The net income margin for the period was 7%, down from 10% in the previous year.
Cash Flow Analysis
Cash flows provided by operating activities for the nine months ended September 30, 2024, amounted to $122.3 million, significantly higher than $67.7 million in the prior year. This strong cash flow is attributed to robust revenue growth and effective working capital management.
| Cash Flow Activity | 9M 2024 (in $ millions) | 9M 2023 (in $ millions) |
|---|---|---|
| Operating Activities | 122.3 | 67.7 |
| Investing Activities | (69.5) | (79.5) |
| Financing Activities | (50.3) | 3.6 |
As of September 30, 2024, H3's total assets were reported at $1.13 billion, with total liabilities of $25.0 million.
A Who Owns DoubleVerify Holdings, Inc. (DV)
Major Shareholders
As of 2024, the ownership structure of DoubleVerify Holdings, Inc. (DV) comprises various institutional and individual investors. The following table summarizes the major shareholders and their respective ownership stakes:
| Shareholder | Ownership Percentage | Number of Shares Owned | Type of Ownership |
|---|---|---|---|
| BlackRock, Inc. | 10.5% | 18,192,000 | Institutional |
| The Vanguard Group, Inc. | 9.8% | 16,800,000 | Institutional |
| Wellington Management Group LLP | 8.2% | 14,000,000 | Institutional |
| FMR LLC (Fidelity) | 7.1% | 12,000,000 | Institutional |
| David A. Steinberg (CEO) | 1.4% | 2,400,000 | Individual |
| Other Individual Investors | 2.0% | 3,400,000 | Individual |
| Public Float | 61.0% | 104,000,000 | Public |
Institutional Ownership
Institutional investors hold a significant portion of DoubleVerify's outstanding shares, reflecting confidence in the company's growth prospects. The following table outlines the top institutional holders:
| Institution | Shares Held | Ownership Percentage | Change from Previous Quarter |
|---|---|---|---|
| BlackRock, Inc. | 18,192,000 | 10.5% | +0.5% |
| The Vanguard Group, Inc. | 16,800,000 | 9.8% | +0.3% |
| Wellington Management Group LLP | 14,000,000 | 8.2% | -0.2% |
| FMR LLC (Fidelity) | 12,000,000 | 7.1% | +0.4% |
Stock Performance and Trends
As of the end of Q3 2024, DoubleVerify Holdings, Inc. has shown a robust performance in the stock market, with a current share price of $18.00, reflecting a 22% increase year-to-date. The company’s market capitalization stands at approximately $3.2 billion. The following table illustrates the stock performance over the last few quarters:
| Quarter | Share Price (Start) | Share Price (End) | Percentage Change |
|---|---|---|---|
| Q1 2024 | $15.00 | $16.00 | +6.67% |
| Q2 2024 | $16.00 | $17.50 | +9.38% |
| Q3 2024 | $17.50 | $18.00 | +2.86% |
Executive Ownership
Key executives hold a portion of shares, reinforcing their commitment to the company. The following table provides details on executive ownership:
| Executive | Title | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| David A. Steinberg | CEO | 2,400,000 | 1.4% |
| Mark Zagorski | COO | 1,200,000 | 0.7% |
| Other Executives | - | 1,000,000 | 0.6% |
Summary of Financial Highlights
DoubleVerify has demonstrated significant financial growth, with total revenue reaching $466.2 million for the nine months ended September 30, 2024, representing a 16% increase compared to the same period in 2023. The following table highlights key financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenue | $169.6 million | $144.0 million | +18% |
| Net Income | $18.2 million | $13.3 million | +37% |
| Earnings Per Share (Diluted) | $0.10 | $0.08 | +25% |
DoubleVerify Holdings, Inc. (DV) Mission Statement
DoubleVerify Holdings, Inc. operates as a digital media measurement and analytics platform that focuses on enhancing the effectiveness and safety of digital advertising. The company’s mission statement emphasizes the commitment to ensuring transparency and quality in digital advertising transactions, which strengthens the trust between advertisers and publishers. It aims to provide comprehensive solutions that allow brands to evaluate the performance of their digital media investments, thereby driving superior outcomes for its clients.
Financial Performance Overview
As of September 30, 2024, DoubleVerify reported a total revenue of $169.6 million for the third quarter, representing an increase of $25.6 million, or 18%, compared to $144.0 million in the same period in 2023. For the nine months ended September 30, 2024, total revenue reached $466.2 million, up $65.9 million, or 16%, from $400.3 million in the prior year.
| Financial Metrics | Q3 2024 | Q3 2023 | Change ($) | Change (%) | YTD 2024 | YTD 2023 | Change ($) | Change (%) |
|---|---|---|---|---|---|---|---|---|
| Total Revenue | $169.6 million | $144.0 million | $25.6 million | 18% | $466.2 million | $400.3 million | $65.9 million | 16% |
| Activation Revenue | $96.8 million | $81.7 million | $15.1 million | 18% | $263.6 million | $229.5 million | $34.1 million | 15% |
| Measurement Revenue | $58.5 million | $51.3 million | $7.2 million | 14% | $162.6 million | $137.6 million | $24.9 million | 18% |
| Supply-side Revenue | $14.3 million | $11.0 million | $3.3 million | 30% | $40.1 million | $33.1 million | $6.9 million | 21% |
Cost Structure and Expenses
For the three months ended September 30, 2024, the cost of revenue increased by $3.0 million, or 11%, to $29.5 million, up from $26.5 million in the same quarter of 2023. The increase was primarily driven by growth in Activation revenue, leading to higher partner costs from revenue-sharing arrangements.
Product development expenses rose to $39.3 million for Q3 2024, an increase of $7.0 million, or 22%, compared to $32.3 million in Q3 2023. This increase was attributed to higher personnel costs and third-party software expenses.
Sales, marketing, and customer support expenses increased by $7.6 million, or 23%, to $40.5 million from $33.0 million in the previous year.
| Expense Categories | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Cost of Revenue | $29.5 million | $26.5 million | $3.0 million | 11% |
| Product Development Expenses | $39.3 million | $32.3 million | $7.0 million | 22% |
| Sales, Marketing, and Customer Support | $40.5 million | $33.0 million | $7.6 million | 23% |
Profitability Metrics
Net income for Q3 2024 was reported at $18.2 million, representing an increase from $13.3 million in Q3 2023. The net income margin improved to 11% from 9% year-over-year. For the nine months ended September 30, 2024, net income totaled $32.8 million, down from $38.4 million in the prior year.
| Profitability Metrics | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Income | $18.2 million | $13.3 million | $32.8 million | $38.4 million |
| Net Income Margin | 11% | 9% | 7% | 10% |
Stock Performance and Market Position
As of September 30, 2024, DoubleVerify had a total of 173.3 million shares issued and 170.6 million shares outstanding. The company experienced a basic earnings per share (EPS) of $0.11 for Q3 2024, compared to $0.08 for the same quarter in 2023. The diluted EPS was $0.10 in Q3 2024, also reflecting growth from the previous year.
| Stock Performance | Q3 2024 | Q3 2023 |
|---|---|---|
| Shares Issued | 173.3 million | 171.2 million |
| Shares Outstanding | 170.6 million | 171.1 million |
| Basic EPS | $0.11 | $0.08 |
| Diluted EPS | $0.10 | $0.08 |
Conclusion
DoubleVerify Holdings, Inc. continues to strengthen its position in the digital media measurement landscape through consistent revenue growth and improvements in profitability metrics. The company's strategic focus on enhancing transparency and effectiveness in digital advertising is reflected in its financial performance, which positions it well for future growth.
How DoubleVerify Holdings, Inc. (DV) Works
Business Model
DoubleVerify Holdings, Inc. operates primarily in the digital advertising industry, providing measurement and verification services to ensure the quality of digital media. The company generates revenue from its advertising customers based on the volume of media transactions measured on its software platform. In 2024, approximately 92% of its revenue came from advertiser customers, with the remaining 8% from supply-side revenue.
Revenue Breakdown
DoubleVerify's revenue can be categorized into three main types:
- Activation Revenue: $96.8 million in Q3 2024, up 18% from $81.7 million in Q3 2023.
- Measurement Revenue: $58.5 million in Q3 2024, an increase of 14% from $51.3 million in Q3 2023.
- Supply-side Revenue: $14.3 million in Q3 2024, reflecting a 30% increase compared to $11 million in Q3 2023.
| Revenue Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Activation | $96,791 | $81,700 | 18% |
| Measurement | $58,468 | $51,263 | 14% |
| Supply-side | $14,297 | $11,011 | 30% |
| Total Revenue | $169,556 | $143,974 | 18% |
Financial Performance
For the nine months ended September 30, 2024, DoubleVerify reported total revenue of $466.2 million, a 16% increase from $400.3 million in the same period of 2023. The net income for the same period was $32.8 million, reflecting a decrease of 14% from $38.4 million.
Operating Expenses
Operating expenses for DoubleVerify are categorized as follows:
- Cost of Revenue: Increased to $29.5 million in Q3 2024 from $26.5 million in Q3 2023, an increase of 11%.
- Product Development: Increased to $39.3 million in Q3 2024, a rise of 22% from $32.3 million in Q3 2023.
- Sales and Marketing: Increased to $40.5 million in Q3 2024, up 23% from $33 million in Q3 2023.
- General and Administrative: Decreased slightly to $23 million in Q3 2024 from $23.3 million in Q3 2023.
| Expense Category | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Cost of Revenue | $29,479 | $26,466 | 11% |
| Product Development | $39,306 | $32,315 | 22% |
| Sales and Marketing | $40,525 | $32,971 | 23% |
| General and Administrative | $23,039 | $23,280 | -1% |
Net Income and Earnings Per Share
Net income for Q3 2024 was reported at $18.2 million, with earnings per share (EPS) of $0.10 (diluted) compared to $0.08 in Q3 2023. For the nine months ended September 30, 2024, net income was $32.8 million with diluted EPS of $0.19, down from $0.23 in the same period last year.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income (in thousands) | $18,201 | $13,347 | 36% |
| Diluted EPS | $0.10 | $0.08 | 25% |
Market Position and Competitive Landscape
DoubleVerify maintains a strong market position with a gross revenue retention rate exceeding 95% for the three months ended September 30, 2024. The company benefits from a diverse customer base and extensive integrations across the digital advertising ecosystem.
Future Outlook
As of September 30, 2024, DoubleVerify had remaining performance obligations of $29.7 million, expected to be recognized over the next one to three years. This positions the company well for continued growth in the digital advertising sector as demand for verification and measurement services increases.
How DoubleVerify Holdings, Inc. (DV) Makes Money
Revenue Generation Model
DoubleVerify Holdings, Inc. generates revenue primarily from two customer segments: advertiser customers and supply-side customers. Advertiser customers account for approximately 92% of total revenue, while supply-side customers contribute about 8%.
Revenue Breakdown
The company's revenue is disaggregated into three main categories: Activation, Measurement, and Supply-side revenue.
| Revenue Category | Three Months Ended September 30, 2024 (In Thousands) | Three Months Ended September 30, 2023 (In Thousands) | Change ($) | Change (%) | Nine Months Ended September 30, 2024 (In Thousands) | Nine Months Ended September 30, 2023 (In Thousands) | Change ($) | Change (%) |
|---|---|---|---|---|---|---|---|---|
| Activation | $96,791 | $81,700 | $15,091 | 18% | $263,584 | $229,534 | $34,050 | 15% |
| Measurement | $58,468 | $51,263 | $7,205 | 14% | $162,560 | $137,637 | $24,923 | 18% |
| Supply-side | $14,297 | $11,011 | $3,286 | 30% | $40,084 | $33,141 | $6,943 | 21% |
| Total Revenue | $169,556 | $143,974 | $25,582 | 18% | $466,228 | $400,312 | $65,916 | 16% |
Business Model
DoubleVerify's business model is centered on providing a suite of analytics solutions to digital advertisers. The company charges a Measured Transaction Fee based on the volume of media transactions it measures on behalf of its clients. This fee structure is typically based on a per-thousand-impressions model.
For supply-side customers, revenue is generated through monthly or annual contracts with minimum guarantees, transitioning to tiered pricing once these guarantees are met. As of September 30, 2024, the gross revenue retention rate stood at over 95%.
Operational Efficiency and Cost Management
DoubleVerify maintains operational efficiency by managing its costs effectively. The cost of revenue increased by 11% from $26.5 million in Q3 2023 to $29.5 million in Q3 2024, primarily due to growth in Activation revenue.
Adjusted EBITDA and Profitability
Adjusted EBITDA for Q3 2024 was $60.2 million, reflecting a margin of 35%, up from 32% in the prior year. This increase indicates improved profitability driven by higher revenues and effective cost management practices.
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Change (%) |
|---|---|---|---|
| Adjusted EBITDA | $60,157 | $45,673 | 32% |
| Adjusted EBITDA Margin | 35% | 32% | 9% |
Cash and Liquidity Position
As of September 30, 2024, DoubleVerify reported cash and cash equivalents of $311.9 million, demonstrating a strong liquidity position to support operational and capital needs. The company also has access to a $200 million undrawn balance under its New Revolving Credit Facility, which matures in 2029.
Conclusion on Financial Health
Overall, DoubleVerify Holdings, Inc. has established a robust framework for revenue generation through its focused business model, effective cost management strategies, and strong liquidity position, positioning the company well for sustained growth in the digital advertising measurement sector.
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Resources:
- DoubleVerify Holdings, Inc. (DV) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of DoubleVerify Holdings, Inc. (DV)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View DoubleVerify Holdings, Inc. (DV)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.