DoubleVerify Holdings, Inc. (DV): Business Model Canvas [11-2024 Updated]

In the dynamic world of digital advertising, DoubleVerify Holdings, Inc. (DV) stands out as a leader in ensuring ad quality and safety. This blog post delves into the Business Model Canvas of DV, highlighting its key components such as partnerships, activities, and revenue streams. Discover how DV provides unmatched value to its clients and maintains a competitive edge in the industry.

DoubleVerify Holdings, Inc. (DV) - Business Model: Key Partnerships

Collaborations with programmatic platforms

DoubleVerify partners with leading programmatic platforms to enhance its measurement capabilities and expand its reach within the digital advertising ecosystem. For instance, the company has established integrations with major platforms like Google Ads and The Trade Desk. These collaborations allow advertisers to utilize DoubleVerify's services seamlessly within their existing programmatic buying processes.

Partnerships with social media channels

DoubleVerify has formed strategic alliances with prominent social media channels such as Facebook, Twitter, and Instagram. These partnerships enable the company to provide advertisers with comprehensive measurement solutions that assess ad performance on social media platforms. In the nine months ending September 30, 2024, DoubleVerify generated $58.5 million in Measurement revenue, representing a 14% increase year-over-year, largely due to increased adoption of social measurement solutions.

Integrations with digital publishers

The company integrates with various digital publishers to offer advertisers insights into the quality of their ad placements. This includes partnerships with leading publishers in the digital space, which allows DoubleVerify to measure viewability and detect fraud effectively. As of September 30, 2024, DoubleVerify's total revenue from Supply-side customers was $40.1 million, accounting for 8.6% of the company's total revenue.

Revenue-sharing arrangements with partners

DoubleVerify has structured revenue-sharing agreements with various partners to enhance its service offerings. These arrangements have contributed to an increase in partner costs, leading to a $3.0 million rise in cost of revenue, or 11%, from $26.5 million in Q3 2023 to $29.5 million in Q3 2024. The company's total revenue increased by $25.6 million, or 18%, from $144.0 million in Q3 2023 to $169.6 million in Q3 2024, demonstrating the effectiveness of these partnerships.

Partnership Type	Key Partners	Revenue Impact (9M 2024)	Growth Rate
Programmatic Platforms	Google Ads, The Trade Desk	Increased measurement capabilities	22% increase in Media Transactions Measured
Social Media Channels	Facebook, Twitter, Instagram	$58.5 million in Measurement revenue	14% year-over-year increase
Digital Publishers	Various leading publishers	$40.1 million from Supply-side revenue	21% increase in revenue from Supply-side customers
Revenue-sharing Arrangements	Multiple partners	Cost of revenue increased by $3.0 million	11% increase in cost of revenue

DoubleVerify Holdings, Inc. (DV) - Business Model: Key Activities

Development of measurement and analytics solutions

DoubleVerify generates revenue primarily from its measurement and analytics solutions, which are crucial for advertisers to assess the effectiveness of their digital advertisements. For the three months ended September 30, 2024, the company reported Measurement revenue of $58.5 million, a 14% increase from $51.3 million in the same period of 2023, driven by the adoption of social measurement solutions by existing and new customers.

Continuous enhancement of software platform

The company invests significantly in enhancing its software platform to maintain its competitive edge. Product development expenses increased by $7.0 million, or 22%, from $32.3 million in Q3 2023 to $39.3 million in Q3 2024. For the nine months ended September 30, 2024, these expenses rose by $22.7 million, or 24%, totaling $115.5 million.

Customer support and engagement initiatives

Customer support and engagement are critical to DoubleVerify's business model. Sales, marketing, and customer support expenses increased by $7.6 million, or 23%, from $33.0 million in Q3 2023 to $40.5 million in Q3 2024. For the nine months ended September 30, 2024, these expenses totaled $123.3 million, up from $90.2 million, representing a 37% increase.

Marketing and sales efforts to acquire new clients

DoubleVerify's marketing and sales initiatives are essential for client acquisition. The company generated total revenue of $169.6 million for Q3 2024, an increase of 18% compared to $144.0 million in Q3 2023. For the nine months ended September 30, 2024, total revenue was $466.2 million, up from $400.3 million, marking a 16% increase.

Revenue Source	Q3 2024 (in thousands)	Q3 2023 (in thousands)	Change ($)	Change (%)
Activation	$96,791	$81,700	$15,091	18%
Measurement	$58,468	$51,263	$7,205	14%
Supply-side	$14,297	$11,011	$3,286	30%
Total Revenue	$169,556	$143,974	$25,582	18%

DoubleVerify Holdings, Inc. (DV) - Business Model: Key Resources

Proprietary technology and software platform

DoubleVerify has developed a robust proprietary technology platform that supports its digital media quality solutions. The platform is integral to measuring the effectiveness of digital advertising, providing services such as fraud detection, brand safety, and viewability metrics. As of September 30, 2024, the company reported total revenue of $169.6 million for the three months ending that date, reflecting a year-over-year increase of 18%.

Data analytics capabilities

The data analytics capabilities of DoubleVerify are a cornerstone of its business model. The company's analytics solutions enable advertisers to assess the performance of their digital ads effectively. For the three months ended September 30, 2024, DoubleVerify reported that Measurement revenue increased by $7.2 million, or 14%, driven by heightened adoption of social measurement solutions. The company measures transactions across various platforms, which enhances its ability to provide actionable insights to customers.

Revenue Segment	Q3 2024 Revenue (in thousands)	Q3 2023 Revenue (in thousands)	Year-over-Year 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%

Skilled workforce in technology and marketing

DoubleVerify's skilled workforce is essential for driving innovation and maintaining competitive advantages in the digital advertising space. As of September 30, 2024, the company reported product development expenses of $39.3 million for the quarter, which reflects a 22% increase compared to the previous year, primarily due to rising personnel costs. This investment underscores the importance of human resources in executing technology and marketing strategies.

Strong brand reputation in digital media quality

DoubleVerify has established a strong brand reputation within the digital media landscape, recognized for its commitment to quality assurance in advertising. The company's gross revenue retention rate was over 95% as of September 30, 2024, indicating a solid customer base and trust in its services. This reputation is critical for attracting new clients and retaining existing ones in a competitive market.

DoubleVerify Holdings, Inc. (DV) - Business Model: Value Propositions

Assurance of digital ad quality and safety

DoubleVerify provides advertisers with assurance regarding the quality and safety of digital advertisements. The company utilizes its DV Authentic Ad metric, which measures factors such as fraud detection, brand safety, and viewability. In the three months ended September 30, 2024, DoubleVerify reported a gross revenue retention rate exceeding 95%.

Comprehensive measurement across various media channels

DoubleVerify offers comprehensive measurement solutions that span various media channels, including programmatic advertising and social media platforms. For the nine months ended September 30, 2024, the company generated $466.2 million in total revenue, an increase of 16% from $400.3 million in the same period of 2023. Revenue from measurement services specifically rose by $24.9 million, or 18%, during this timeframe.

Real-time insights for advertisers to optimize performance

DoubleVerify provides real-time insights that enable advertisers to optimize their campaign performance effectively. The company achieved a total advertiser revenue of $169.6 million in the three months ended September 30, 2024, reflecting a 17% growth compared to the same period in 2023. This growth was primarily driven by a 22% increase in media transactions measured.

Enhanced transparency in digital advertising transactions

DoubleVerify enhances transparency in digital advertising transactions by providing clients with detailed analytics and reporting tools. The company's supply-side revenue increased by $3.3 million, or 30%, in the three months ended September 30, 2024. This growth is indicative of the increasing demand for transparency in ad transactions, which is critical for advertisers looking to maximize their return on investment.

Revenue Type	Three Months Ended September 30, 2024 (in thousands)	Three Months Ended September 30, 2023 (in thousands)	Change ($)	Change (%)
Activation	$96,791	$81,700	$15,091	18%
Measurement	$58,468	$51,263	$7,205	14%
Supply-side	$14,297	$11,011	$3,286	30%
Total Revenue	$169,556	$143,974	$25,582	18%

DoubleVerify Holdings, Inc. (DV) - Business Model: Customer Relationships

Direct engagement through customer support teams

DoubleVerify Holdings, Inc. (DV) emphasizes direct engagement with its customers through dedicated customer support teams. In the nine months ended September 30, 2024, the company reported sales, marketing, and customer support expenses of $123.3 million, representing a 37% increase from $90.2 million in the same period of 2023 . This increase was primarily due to enhanced personnel costs and the expansion of customer support capabilities, which are critical for maintaining satisfaction and retention among their advertiser clients.

Long-term contracts with key clients

DV maintains long-term contracts with key clients, which contribute significantly to its revenue stability. As of September 30, 2024, the company had $29.7 million in remaining performance obligations expected to be recognized over the next one to three years . Approximately 92% of revenue for the three months ended September 30, 2024, was generated from advertiser customers, reflecting the importance of these contracts in driving consistent revenue streams .

Regular updates and communication on service enhancements

To foster strong customer relationships, DV provides regular updates and communications regarding service enhancements. The company has focused on increasing its product development expenses, which rose to $115.5 million for the nine months ended September 30, 2024, up from $92.8 million in the prior year . This investment supports continuous improvement in their offerings, ensuring customers are informed about new features and updates that enhance their advertising effectiveness.

Educational resources and training for customers

DV offers educational resources and training to its customers, helping them maximize the value of the company's services. This approach is reflected in the company's commitment to customer support, as evidenced by stock-based compensation expenses for sales, marketing, and customer support amounting to $20.6 million for the nine months ended September 30, 2024 . The focus on training and resources enhances customer competency in utilizing DV's analytics tools effectively.

Customer Relationship Aspect	Details	Financial Impact (9 months ended Sept 30, 2024)
Customer Support Engagement	Dedicated teams for direct engagement	$123.3 million in sales, marketing, and customer support expenses
Long-term Contracts	Contracts with key clients provide revenue stability	$29.7 million in remaining performance obligations
Service Enhancements Communication	Regular updates on product improvements	$115.5 million in product development expenses
Educational Resources	Training programs for maximizing service value	$20.6 million in stock-based compensation for customer support

DoubleVerify Holdings, Inc. (DV) - Business Model: Channels

Programmatic advertising platforms

DoubleVerify leverages programmatic advertising platforms to deliver its services effectively. The company integrates with various demand-side platforms (DSPs) and supply-side platforms (SSPs), enabling advertisers to measure the effectiveness and quality of their digital ads in real-time. As of September 30, 2024, DoubleVerify reported a total advertiser revenue of $169.6 million for the quarter, with an 18% increase from the previous year, driven by a 22% increase in Media Transactions Measured.

Direct sales through the company website

Direct sales through the DoubleVerify website are a crucial channel for acquiring new customers. The company utilizes its website to provide detailed information about its services, including its Authentic Ad metric, which helps advertisers evaluate ad quality. The gross revenue retention rate for DoubleVerify was over 95% as of September 30, 2024, indicating strong customer satisfaction and loyalty.

Social media for marketing and outreach

DoubleVerify actively uses social media channels for marketing and outreach purposes. The company engages with potential clients and industry professionals through platforms like LinkedIn and Twitter. This approach enhances brand visibility and facilitates direct communication with customers. The company reported an increase in Activation revenue, which reached $96.8 million for the three months ended September 30, 2024, a significant rise from $81.7 million in the same period of 2023.

Partnerships with advertising agencies

Partnerships with advertising agencies form a vital part of DoubleVerify's channel strategy. Collaborations with these agencies enable DoubleVerify to expand its reach and offer customized solutions to a broader range of clients. For the nine months ended September 30, 2024, DoubleVerify's total revenue from supply-side customers was $40.1 million, representing an 8.6% contribution to the company’s overall revenue.

Channel	Revenue (Q3 2024)	Growth Rate (YoY)	Revenue Contribution (%)
Programmatic Advertising Platforms	$169.6 million	18%	92%
Direct Sales (Website)	N/A	N/A	N/A
Social Media	$96.8 million (Activation Revenue)	18%	N/A
Partnerships with Advertising Agencies	$40.1 million (Supply-side Revenue)	21%	8.6%

DoubleVerify Holdings, Inc. (DV) - Business Model: Customer Segments

Large global advertisers

DoubleVerify serves large global advertisers, which constitute a significant portion of their revenue. For the three months ended September 30, 2024, 92% of the company's revenue was generated from advertiser customers, reflecting a strong reliance on this segment. Total advertiser revenue increased by $22.3 million, or 17%, in Q3 2024 compared to the same period in 2023, largely driven by a 22% increase in Media Transactions Measured.

Digital publishers and media companies

Digital publishers and media companies are vital customers for DoubleVerify, utilizing the company's solutions to measure ad effectiveness and quality. For the nine months ended September 30, 2024, Measurement revenue, which includes services provided to publishers, rose by $24.9 million, or 18%, as compared to the same period in 2023. This growth is attributed to increased adoption of social measurement solutions.

Programmatic and social media platforms

DoubleVerify collaborates with programmatic and social media platforms to enhance the quality of digital advertising. This segment accounted for 8% of revenue during Q3 2024, with Supply-side revenue increasing by $3.3 million, or 30%, compared to Q3 2023. The nine-month Supply-side revenue also grew by $6.9 million, or 21%, reflecting the rising demand for ad inventory validation.

Supply-side customers seeking ad inventory validation

Supply-side customers, including ad networks and exchanges, leverage DoubleVerify's analytics to ensure the quality of their ad inventory. For the nine months ended September 30, 2024, this segment represented 9% of total revenue, highlighting its importance. The company generates revenue from supply-side arrangements through contracts with minimum guarantees, which reset monthly.

Customer Segment	Q3 2024 Revenue Contribution	Growth Rate (YoY)	Key Metrics
Large Global Advertisers	92% of revenue	17%	Media Transactions Measured up 22%
Digital Publishers and Media Companies	Measurement Revenue: $162.6M	18%	Increased adoption of social measurement solutions
Programmatic and Social Media Platforms	8% of revenue	30%	Supply-side Revenue: $14.3M
Supply-side Customers	9% of total revenue	21%	Revenue from contracts with minimum guarantees

DoubleVerify Holdings, Inc. (DV) - Business Model: Cost Structure

Personnel costs including salaries and benefits

The personnel costs for DoubleVerify increased significantly in 2024. For the three months ended September 30, 2024, personnel costs rose by $5.9 million due to higher salaries, bonuses, and stock-based compensation, totaling approximately $39.3 million. In the nine months ended September 30, 2024, these costs increased by $18.8 million, bringing the total to $115.5 million. The company also reported total stock-based compensation for the three months ended September 30, 2024, of $22.95 million.

Technology infrastructure and cloud services expenses

DoubleVerify has made substantial investments in technology infrastructure and cloud services. The cost of revenue, which includes expenses related to cloud services, increased by 11% from $26.5 million in Q3 2023 to $29.5 million in Q3 2024. For the nine months ended September 30, 2024, these costs rose from $76.6 million to $82.2 million, marking a 7% increase. The company continues to migrate to cloud services, focusing on scalability and efficiency, which is reflected in ongoing operational expenses.

Marketing and sales expenditures

Marketing and sales expenditures have also seen a notable rise. For the three months ended September 30, 2024, these expenses rose by $7.6 million, reaching a total of $40.5 million, driven primarily by increased personnel costs and sales commissions. Over the nine months, marketing and sales expenditures surged by 37% from $90.2 million to $123.3 million.

Expense Category	Q3 2024 (in thousands)	Q3 2023 (in thousands)	Change (in thousands)	Nine Months Ended September 30, 2024 (in thousands)	Nine Months Ended September 30, 2023 (in thousands)	Change (in thousands)
Personnel Costs	39,300	32,300	7,000	115,506	92,811	22,695
Cost of Revenue	29,500	26,500	3,000	82,200	76,600	5,600
Sales and Marketing Expenses	40,500	33,000	7,500	123,260	90,220	33,040

Research and development investments

Research and development investments have increased as well, with product development expenses rising by $7.0 million to $39.3 million in Q3 2024. Over the nine months, these expenses grew by 24%, from $92.8 million to $115.5 million. The increase is attributed to higher personnel costs and additional third-party software costs to support product development efforts.

DoubleVerify Holdings, Inc. (DV) - Business Model: Revenue Streams

Measured Transaction Fees from Advertisers

DoubleVerify generates revenue primarily through Measured Transaction Fees charged to advertisers based on the volume of media transactions measured by their software platform. For the three months ended September 30, 2024, total advertiser revenue increased by $22.3 million, or 17%, compared to the same period in 2023, driven by a 22% increase in media transactions measured. However, there was a 4% decline in measured transaction fees during this period. For the nine months ended September 30, 2024, total advertiser revenue increased by $59.0 million, or 16%.

Period	Total Advertiser Revenue (in thousands)	Media Transactions Measured Growth (%)	Measured Transaction Fees Decline (%)
Three Months Ended September 30, 2024	$ 169,556	22%	-4%
Nine Months Ended September 30, 2024	$ 466,228	21%	-4%

Subscription Fees from Supply-Side Customers

DoubleVerify earns subscription fees from supply-side customers, which accounted for approximately 8% of total revenue for the three months ended September 30, 2024. This percentage increased to 9% for the nine months ended September 30, 2024, compared to 8% in the same period in 2023. Subscription revenues are generated through contracts that include minimum guaranteed fees, which are recognized on a straight-line basis over the contract term, typically twelve months.

Period	Supply-Side Revenue (in thousands)	Percentage of Total Revenue (%)
Three Months Ended September 30, 2024	$ 14,297	8%
Nine Months Ended September 30, 2024	$ 40,084	9%

Revenue from Data Analytics Services

The company also generates revenue from data analytics services provided to supply-side customers. These services validate the quality of ad inventory and facilitate targeting and purchasing of digital ads. In the three months ended September 30, 2024, supply-side revenue increased by $3.3 million, or 30%, compared to the same period in 2023. For the nine months ended September 30, 2024, supply-side revenue totaled $40.1 million, reflecting a 21% increase compared to the prior year.

Period	Supply-Side Revenue Growth (in thousands)	Growth Rate (%)
Three Months Ended September 30, 2024	$ 14,297	30%
Nine Months Ended September 30, 2024	$ 40,084	21%

Performance-Based Fees Based on Ad Transactions

DoubleVerify also incorporates performance-based fees in their revenue model, where fees are contingent on the performance of ad transactions. This includes a tiered pricing structure that kicks in once minimum guaranteed amounts are met. For the three months ended September 30, 2024, the company experienced a notable increase in activation revenue, which rose by $15.1 million, or 18%, primarily due to the adoption of programmatic solutions.

Period	Activation Revenue (in thousands)	Growth Rate (%)
Three Months Ended September 30, 2024	$ 96,791	18%
Nine Months Ended September 30, 2024	$ 263,584	15%

Updated on 16 Nov 2024

Resources:

1. 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.
2. 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.