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DoubleVerify Reports Second Quarter 2025 Financial Results

Delivered 21% Year-over-Year Revenue Growth to $189.0 Million

Drove Double-Digit Growth Across All Three Revenue Lines: Activation +25%, Measurement +15%, and Supply-Side +26%

Raised Full-Year 2025 Revenue Growth Guidance to ~15%; Reaffirmed Full-Year 2025 Adjusted EBITDA margin of 32%

DoubleVerify (“DV”) (NYSE: DV), the leading software platform for digital media measurement, data, and analytics, today announced financial results for the second quarter ended June 30, 2025.

“We drove 21% year-over-year growth in Q2, significantly outperforming the revenue expectations we raised at Innovation Day and building momentum across all key areas of the business,” said Mark Zagorski, CEO of DoubleVerify. “DV is executing well across every key growth vector, with Social gaining traction across both activation and measurement, CTV continuing to scale rapidly, and programmatic delivering deeper advertiser adoption across our ABS and Scibids AI solutions. Our growth in the first half of the year was predominantly driven by existing customers who adopted additional products and expanded into new geographies, followed by the addition and scaling of new advertiser and supply-side customers. Based on our solid performance to date, it is clear that our vision for the DV Media AdVantage Platform is resonating with current and new customers, and our continued focus on innovation, customer value, and disciplined execution is laying the groundwork for durable, long-term growth.”

Second Quarter 2025 Financial Highlights:

(All comparisons are to the second quarter of 2024)

  • Total revenue of $189.0 million, an increase of 21%.
  • Activation revenue of $108.9 million, an increase of 25%.
  • Measurement revenue of $62.9 million, an increase of 15%.
    • Social measurement revenue increased by 14%.
    • International measurement revenue increased by 8%.
    • Media Transactions Measured (“MTM”) for CTV increased by 45%.
  • Supply-side revenue of $17.2 million, an increase of 26%.
  • Net income of $8.8 million and adjusted EBITDA of $57.3 million, which represented a 30% adjusted EBITDA margin.

Second Quarter and Recent Business Highlights:

  • Grew Total Advertiser revenue by 21% year-over-year in the second quarter.
    • MTM increased by 19% year-over-year, and Measured Transaction Fee (MTF) declined 1% year-over-year, excluding the impact of an introductory fixed fee deal for one large customer.
  • Continued to achieve a Gross Revenue Retention rate of over 95% in the second quarter.
  • Drove global market share growth through product upsells, international expansion, and new enterprise logo wins. Notable second-quarter new business wins include:
    • New enterprise customer wins: Banco do Brasil, Emaar, Haribo, Lidl, Premier Inn, Puma, Riyadh Air, Sage, Six Flags, Tractor Supply, TransUnion
    • Expansions: Fidelity, Kroger, Allwyn Group
  • Expanded brand suitability measurement coverage on Meta across proprietary categories, uniting pre-screen controls with post-bid AI-powered reporting to improve transparency and performance.
  • Introduced DV Authentic AdVantage, the market’s first integrated activation, optimization, and measurement solution built to deliver brand protection without compromising performance, and started beta trials with several top 100 customers.
  • Launched DV Authentic Attention® for Social on Snap, the first solution to combine ad exposure and eye-tracking data at the impression level to give advertisers unmatched visibility into user engagement on the platform.
  • Announced a partnership with Lyft to authenticate in-app ads, bringing DV’s full measurement suite, including Authentic Attention, to Lyft’s North American advertising platform.

“Our second-quarter results reflect strong and balanced execution across the business, with both revenue and adjusted EBITDA exceeding the high-end of the guidance we raised at Innovation Day,” said Nicola Allais, CFO of DoubleVerify. “We delivered robust double-digit growth across all three revenue lines, led by strong performance in activation and supply-side, and continued expansion in measurement, supported by greater momentum in Social. With 21% total revenue growth and adjusted EBITDA margins steady at 30%, we achieved meaningful topline outperformance while maintaining operational efficiency. Given our strong first-half results and increased confidence in second-half performance, we are raising our full-year 2025 revenue growth outlook to approximately 15% and reaffirming our 32% adjusted EBITDA margin guidance. We remain focused on driving scalable, profitable growth while investing in the opportunities ahead.”

Third Quarter and Full-Year 2025 Guidance:

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

Third Quarter 2025:

  • Revenue in the range of $188 and $192 million, a year-over-year increase of 12% at the midpoint.
  • Adjusted EBITDA in the range of $60 and $64 million, representing a 33% margin at the midpoint.

Full Year 2025:

  • Revenue growth of approximately 15%.
  • Adjusted EBITDA margin of approximately 32%.

With respect to the Company’s expectations under "Third Quarter and Full Year 2025 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 second quarter 2025 financial results at 4:30 p.m. Eastern Time today, August 5, 2025. To access the conference call, dial (800) 715-9871 for the U.S. or Canada, or +1 (646) 307-1963 for international callers. The conference ID is 5064608. 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

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, CTV, 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.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

 

 

 

As of

 

As of

(in thousands, except per share data)

 

June 30, 2025

 

December 31, 2024

Assets:

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

211,784

 

 

$

292,820

 

Short-term investments

 

 

5,002

 

 

 

17,805

 

Trade receivables, net of allowances for doubtful accounts of $8,395 and $9,003 as of June 30, 2025 and December 31, 2024, respectively

 

 

188,866

 

 

 

226,225

 

Prepaid expenses and other current assets

 

 

56,709

 

 

 

22,201

 

Total current assets

 

 

462,361

 

 

 

559,051

 

Property, plant and equipment, net

 

 

91,886

 

 

 

70,195

 

Operating lease right-of-use assets, net

 

 

67,547

 

 

 

67,721

 

Goodwill

 

 

516,587

 

 

 

427,621

 

Intangible assets, net

 

 

116,068

 

 

 

110,356

 

Deferred tax assets

 

 

31,298

 

 

 

35,488

 

Other non-current assets

 

 

11,181

 

 

 

5,778

 

Total assets

 

$

1,296,928

 

 

$

1,276,210

 

Liabilities and Stockholders' Equity:

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Trade payables

 

$

13,123

 

 

$

11,598

 

Accrued expenses

 

 

58,855

 

 

 

54,532

 

Operating lease liabilities, current

 

 

10,308

 

 

 

11,048

 

Income tax liabilities

 

 

683

 

 

 

15,592

 

Current portion of finance lease obligations

 

 

7,813

 

 

 

2,512

 

Other current liabilities

 

 

14,119

 

 

 

8,200

 

Total current liabilities

 

 

104,901

 

 

 

103,482

 

Operating lease liabilities, non-current

 

 

77,569

 

 

 

77,297

 

Finance lease obligations

 

 

7,937

 

 

 

812

 

Deferred tax liabilities

 

 

8,572

 

 

 

8,509

 

Other non-current liabilities

 

 

7,934

 

 

 

2,651

 

Total liabilities

 

 

206,913

 

 

 

192,751

 

Commitments and contingencies (Note 15)

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

Common stock, $0.001 par value, 1,000,000 shares authorized, 175,905 shares issued and 163,575 outstanding as of June 30, 2025; 1,000,000 shares authorized, 174,003 shares issued and 167,069 outstanding as of December 31, 2024

 

 

176

 

 

 

174

 

Additional paid-in capital

 

 

1,028,443

 

 

 

974,383

 

Treasury stock, at cost, 12,330 shares and 6,934 shares as of June 30, 2025 and December 31, 2024, respectively

 

 

(217,121

)

 

 

(131,620

)

Retained earnings

 

 

266,333

 

 

 

255,214

 

Accumulated other comprehensive income (loss), net of income taxes

 

 

12,184

 

 

 

(14,692

)

Total stockholders’ equity

 

 

1,090,015

 

 

 

1,083,459

 

Total liabilities and stockholders' equity

 

$

1,296,928

 

 

$

1,276,210

 

DoubleVerify Holdings, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED)

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

(in thousands, except per share data)

 

2025

 

2024

 

2025

 

2024

Revenue

 

$

189,021

 

 

$

155,890

 

 

$

354,082

 

 

$

296,672

 

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

 

 

33,126

 

 

 

26,102

 

 

 

64,092

 

 

 

52,720

 

Product development

 

 

47,203

 

 

 

39,806

 

 

 

91,920

 

 

 

76,200

 

Sales, marketing and customer support

 

 

50,871

 

 

 

44,863

 

 

 

94,572

 

 

 

82,735

 

General and administrative

 

 

29,576

 

 

 

23,066

 

 

 

56,103

 

 

 

45,141

 

Depreciation and amortization

 

 

14,697

 

 

 

11,004

 

 

 

27,084

 

 

 

21,932

 

Income from operations

 

 

13,548

 

 

 

11,049

 

 

 

20,311

 

 

 

17,944

 

Interest expense

 

 

443

 

 

 

233

 

 

 

863

 

 

 

465

 

Other income, net

 

 

(2,105

)

 

 

(2,064

)

 

 

(5,284

)

 

 

(4,336

)

Income before income taxes

 

 

15,210

 

 

 

12,880

 

 

 

24,732

 

 

 

21,815

 

Income tax expense

 

 

6,452

 

 

 

5,406

 

 

 

13,613

 

 

 

7,185

 

Net income

 

$

8,758

 

 

$

7,474

 

 

$

11,119

 

 

$

14,630

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.05

 

 

$

0.04

 

 

$

0.07

 

 

$

0.09

 

Diluted

 

$

0.05

 

 

$

0.04

 

 

$

0.07

 

 

$

0.08

 

Weighted-average common stock outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

162,740

 

 

 

171,628

 

 

 

163,922

 

 

 

171,467

 

Diluted

 

 

166,697

 

 

 

175,961

 

 

 

167,813

 

 

 

176,850

 

Comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

8,758

 

 

$

7,474

 

 

$

11,119

 

 

$

14,630

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency cumulative translation adjustment

 

 

19,383

 

 

 

(1,814

)

 

 

26,876

 

 

 

(6,439

)

Total comprehensive income

 

$

28,141

 

 

$

5,660

 

 

$

37,995

 

 

$

8,191

 

DoubleVerify Holdings, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

Comprehensive

 

Total

 

 

Common Stock

 

Treasury Stock

 

Paid-in

 

Retained

 

Income (Loss)

 

Stockholders’

(in thousands)

 

Shares

 

Amount

 

Shares

 

Amount

 

Capital

 

Earnings

 

Net of Income Taxes

 

Equity

Balance as of January 1, 2025

 

174,003

 

$

174

 

6,934

 

 

$

(131,620

)

 

$

974,383

 

 

$

255,214

 

$

(14,692

)

 

$

1,083,459

 

Foreign currency translation adjustment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7,493

 

 

 

7,493

 

Shares repurchased for settlement of employee tax withholdings

 

 

 

 

210

 

 

 

(3,210

)

 

 

 

 

 

 

 

 

 

 

(3,210

)

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

25,080

 

 

 

 

 

 

 

 

25,080

 

Common stock issued upon exercise of stock options

 

58

 

 

 

 

 

 

 

 

 

222

 

 

 

 

 

 

 

 

222

 

Common stock issued upon vesting of restricted stock units

 

641

 

 

1

 

 

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

Common stock issued upon vesting of performance stock units

 

71

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares repurchased under the Repurchase Program and New Repurchase Program

 

 

 

 

5,169

 

 

 

(82,240

)

 

 

 

 

 

 

 

 

 

 

(82,240

)

Excise tax on shares repurchased

 

 

 

 

 

 

 

(64

)

 

 

(668

)

 

 

 

 

 

 

 

(732

)

Treasury stock reissued upon settlement of equity awards

 

 

 

 

(18

)

 

 

350

 

 

 

(350

)

 

 

 

 

 

 

 

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

2,361

 

 

 

 

 

2,361

 

Balance as of March 31, 2025

 

174,773

 

 

175

 

12,295

 

 

 

(216,784

)

 

 

998,666

 

 

 

257,575

 

 

(7,199

)

 

 

1,032,433

 

Foreign currency translation adjustment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

19,383

 

 

 

19,383

 

Shares repurchased for settlement of employee tax withholdings

 

 

 

 

35

 

 

 

(494

)

 

 

 

 

 

 

 

 

 

 

(494

)

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

28,053

 

 

 

 

 

 

 

 

28,053

 

Common stock issued under employee purchase plan

 

135

 

 

 

 

 

 

 

 

 

1,577

 

 

 

 

 

 

 

 

1,577

 

Common stock issued upon exercise of stock options

 

29

 

 

 

 

 

 

 

 

 

148

 

 

 

 

 

 

 

 

148

 

Common stock issued upon vesting of restricted stock units

 

954

 

 

1

 

 

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

Common stock issued upon vesting of performance stock units

 

14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Excise tax on shares repurchased

 

 

 

 

 

 

 

157

 

 

 

 

 

 

 

 

 

 

 

157

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

8,758

 

 

 

 

 

8,758

 

Balance as of June 30, 2025

 

175,905

 

$

176

 

12,330

 

 

$

(217,121

)

 

$

1,028,443

 

 

$

266,333

 

$

12,184

 

 

$

1,090,015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of January 1, 2024

 

171,168

 

$

171

 

22

 

 

$

(743

)

 

$

878,331

 

 

$

198,983

 

$

(2,803

)

 

$

1,073,939

 

Foreign currency translation adjustment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,625

)

 

 

(4,625

)

Shares repurchased for settlement of employee tax withholdings

 

 

 

 

48

 

 

 

(1,792

)

 

 

 

 

 

 

 

 

 

 

(1,792

)

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

20,718

 

 

 

 

 

 

 

 

20,718

 

Common stock issued upon exercise of stock options

 

153

 

 

 

 

 

 

 

 

 

1,695

 

 

 

 

 

 

 

 

1,695

 

Common stock issued upon vesting of restricted stock units

 

435

 

 

1

 

 

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

Treasury stock reissued upon settlement of equity awards

 

 

 

 

(38

)

 

 

1,389

 

 

 

(1,389

)

 

 

 

 

 

 

 

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

7,156

 

 

 

 

 

7,156

 

Balance as of March 31, 2024

 

171,756

 

 

172

 

32

 

 

 

(1,146

)

 

 

899,354

 

 

 

206,139

 

 

(7,428

)

 

 

1,097,091

 

Foreign currency translation adjustment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,814

)

 

 

(1,814

)

Shares repurchased for settlement of employee tax withholdings

 

 

 

 

30

 

 

 

(660

)

 

 

 

 

 

 

 

 

 

 

(660

)

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

25,315

 

 

 

 

 

 

 

 

25,315

 

Common stock issued under employee purchase plan

 

124

 

 

 

 

 

 

 

 

 

1,914

 

 

 

 

 

 

 

 

1,914

 

Common stock issued upon exercise of stock options

 

126

 

 

 

 

 

 

 

 

 

870

 

 

 

 

 

 

 

 

870

 

Common stock issued upon vesting of restricted stock units

 

628

 

 

1

 

 

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

Shares repurchased under the Repurchase Program

 

 

 

 

1,369

 

 

 

(25,027

)

 

 

 

 

 

 

 

 

 

 

(25,027

)

Treasury stock reissued upon settlement of equity awards

 

 

 

 

(41

)

 

 

1,390

 

 

 

(1,390

)

 

 

 

 

 

 

 

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

7,474

 

 

 

 

 

7,474

 

Balance as of June 30, 2024

 

172,634

 

$

173

 

1,390

 

 

$

(25,443

)

 

$

926,062

 

 

$

213,613

 

$

(9,242

)

 

$

1,105,163

 

DoubleVerify Holdings, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

 

 

 

Six Months Ended

 

 

June 30,

(in thousands)

 

2025

 

2024

Operating activities:

 

 

 

 

 

 

Net income

 

$

11,119

 

 

$

14,630

 

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

 

 

 

 

 

 

Bad debt expense

 

 

1,499

 

 

 

1,453

 

Depreciation and amortization expense

 

 

27,084

 

 

 

21,932

 

Amortization of debt issuance costs

 

 

217

 

 

 

147

 

Non-cash lease expense

 

 

3,905

 

 

 

3,191

 

Deferred taxes

 

 

298

 

 

 

(11,530

)

Stock-based compensation expense

 

 

51,349

 

 

 

44,956

 

Interest expense (income), net

 

 

255

 

 

 

(784

)

Loss on disposal of fixed assets

 

 

89

 

 

 

 

Other

 

 

(419

)

 

 

1,582

 

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

 

 

 

 

 

 

Trade receivables

 

 

40,951

 

 

 

16,397

 

Prepaid expenses and other assets

 

 

(32,762

)

 

 

(17,208

)

Trade payables

 

 

638

 

 

 

(2,076

)

Accrued expenses and other liabilities

 

 

(16,947

)

 

 

(5,035

)

Net cash provided by operating activities

 

 

87,276

 

 

 

67,655

 

Investing activities:

 

 

 

 

 

 

Purchase of property, plant and equipment

 

 

(15,813

)

 

 

(13,558

)

Acquisition of businesses, net of cash acquired

 

 

(82,578

)

 

 

 

Purchase of short-term investments

 

 

 

 

 

(81,937

)

Proceeds from maturity of short-term investments

 

 

12,684

 

 

 

 

Other investing activities

 

 

(1,000

)

 

 

 

Net cash used in investing activities

 

 

(86,707

)

 

 

(95,495

)

Financing activities:

 

 

 

 

 

 

Proceeds from common stock issued upon exercise of stock options

 

 

370

 

 

 

2,565

 

Proceeds from common stock issued under employee purchase plan

 

 

1,577

 

 

 

1,914

 

Finance lease payments

 

 

(1,379

)

 

 

(1,562

)

Shares repurchased under the Repurchase Program and New Repurchase Program

 

 

(82,240

)

 

 

(25,027

)

Payment of excise tax on shares repurchased

 

 

(668

)

 

 

 

Shares repurchased for settlement of employee tax withholdings

 

 

(3,704

)

 

 

(2,452

)

Net cash used in financing activities

 

 

(86,044

)

 

 

(24,562

)

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

 

 

4,547

 

 

 

(850

)

Net decrease in cash, cash equivalents, and restricted cash

 

 

(80,928

)

 

 

(53,252

)

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

 

 

293,741

 

 

 

310,257

 

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

 

$

212,813

 

 

$

257,005

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

211,784

 

 

$

256,066

 

Restricted cash - current (included in Prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets)

 

 

37

 

 

 

939

 

Restricted cash - non-current (included in Other non-current assets on the Condensed Consolidated Balance Sheets)

 

 

992

 

 

 

 

Total cash and cash equivalents and restricted cash

 

$

212,813

 

 

$

257,005

 

Supplemental cash flow information:

 

 

 

 

 

 

Cash paid for taxes

 

$

55,762

 

 

$

29,491

 

Cash paid for interest

 

$

500

 

 

$

350

 

Non-cash investing and financing activities:

 

 

 

 

 

 

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

 

$

2,168

 

 

$

9,211

 

Acquisition of equipment under finance lease

 

$

13,805

 

 

$

 

Capital assets financed by accounts payable and accrued expenses

 

$

249

 

 

$

18

 

Stock-based compensation included in capitalized software development costs

 

$

1,783

 

 

$

1,064

 

Accrued excise tax on net share repurchases

 

$

575

 

 

$

Comparison of the Three and Six Months Ended June 30, 2025 and June 30, 2024

Revenue

 

Three Months Ended June 30,

 

Change

 

Change

 

Six Months Ended June 30,

 

Change

 

Change

 

2025

 

2024

 

$

 

%

 

2025

 

2024

 

$

 

%

 

(In Thousands)

 

 

 

 

 

 

 

(In Thousands)

 

 

 

 

 

 

Revenue by customer type:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Activation

$

108,950

 

$

87,471

 

$

21,479

 

25

%

 

$

204,121

 

$

166,793

 

$

37,328

 

22

%

Measurement

 

62,895

 

 

54,817

 

 

8,078

 

15

 

 

 

116,326

 

 

104,092

 

 

12,234

 

12

 

Supply-side

 

17,176

 

 

13,602

 

 

3,574

 

26

 

 

 

33,635

 

 

25,787

 

 

7,848

 

30

 

Total revenue

$

189,021

 

$

155,890

 

$

33,131

 

21

%

 

$

354,082

 

$

296,672

 

$

57,410

 

19

%

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 June 30,

 

Six Months Ended June 30,

 

2025

 

2024

 

2025

 

2024

 

(In Thousands)

 

(In Thousands)

Net income

$

8,758

 

 

$

7,474

 

 

$

11,119

 

 

$

14,630

 

Net income margin

 

5

%

 

 

5

%

 

 

3

%

 

 

5

%

Depreciation and amortization

 

14,697

 

 

 

11,004

 

 

 

27,084

 

 

 

21,932

 

Stock-based compensation

 

27,007

 

 

 

24,715

 

 

 

51,349

 

 

 

44,956

 

Interest expense

 

443

 

 

 

233

 

 

 

863

 

 

 

465

 

Income tax expense

 

6,452

 

 

 

5,406

 

 

 

13,613

 

 

 

7,185

 

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

 

504

 

 

 

(11

)

 

 

1,666

 

 

 

 

Offering and secondary offering costs (b)

 

 

 

 

10

 

 

 

 

 

 

68

 

Other costs (c)

 

1,518

 

 

 

 

 

 

1,518

 

 

 

 

Other income (d)

 

(2,105

)

 

 

(2,064

)

 

 

(5,284

)

 

 

(4,336

)

Adjusted EBITDA

$

57,274

 

 

$

46,767

 

 

$

101,928

 

 

$

84,900

 

Adjusted EBITDA margin

 

30

%

 

 

30

%

 

 

29

%

 

 

29

%

(a)

M &A and restructuring costs for the three and six months ended June 30, 2025 consist of third party professional service costs related to the acquisition of Rockerbox and to our broader acquisition strategy. M&A and restructuring recoveries for the three months ended June 30, 2024 consist of transaction costs related to the acquisition of Scibids.

(b)

Offering and secondary offering costs for the three and six months ended June 30, 2024 consist of third party costs incurred for underwritten secondary public offerings by certain stockholders of the Company.

(c)

Other costs for the three and six months ended June 30, 2025 consist of expenses incurred with respect to litigation and regulatory matters outside of the ordinary course and costs related to the early termination of an office lease.

(d)

Other income for the three and six months ended June 30, 2025 and June 30, 2024 consist of interest income earned on interest-bearing monetary assets, 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 Condensed Consolidated Statements of Operations and Comprehensive Income is as follows:

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

(in thousands)

 

2025

 

2024

 

2025

 

2024

Product development

 

$

10,389

 

$

9,734

 

$

19,655

 

$

17,107

Sales, marketing and customer support

 

 

8,826

 

 

7,503

 

 

16,455

 

 

13,439

General and administrative

 

 

7,792

 

 

7,478

 

 

15,239

 

 

14,410

Total stock-based compensation

 

$

27,007

 

$

24,715

 

$

51,349

 

$

44,956

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 “Third Quarter and Full-Year 2025 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” in the Company’s Annual Report on Form 10-K filed with the SEC on February 27, 2025 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.

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