DoubleVerify ticks up on mixed results, but analysts lower estimates

DoubleVerify Holdings (NYSE:DV) ticked up 2% by noon trading Thursday following third quarter 2024 financial results that featured significant revenue gains.

“We delivered a strong third quarter, expanding our product and channel capabilities while achieving the largest global market share gains in DoubleVerify’s history,” said CEO Mark Zagorski.

DoubleVerify provides a software platform that improves the effectiveness of online advertising for businesses through analytics.

“This success underscores DV’s unique ability to drive trust and efficiency across the digital advertising ecosystem, as we now have established enterprise relationships with the largest CPG, technology, retail, pharma, and media companies in the world,” Zagorski added.

DoubleVerify’s Social segment increased revenue by 21% year over year during the third quarter.

“Since launching its Brand Safety and Suitability product on Meta (META) in January, DV has seen strong customer adoption, onboarding 60 new advertisers, including 9 of its top 100 clients who had not previously activated DV on Meta,” said Truist Securities analysts, led by Youssef Squali, in an investor note on Thursday.

Truist maintains its Buy rating on the stock but lowered its price target to $23 from $26.

“We are tweaking estimates following 3Q results, updated guidance, and overall trends in the digital ad ecosystem,” Squali added. “Our 4Q24 estimates for revenues/adj. EBITDA move to $196M/$76M from $206M/$76M previously.”

Meanwhile, Canaccord Genuity lowered its price target to $30 from $36 while also maintaining a Buy rating on the stock.

“Q4 revenue guidance came in below expectations, reflecting the aforementioned slower growth in measurement solutions on Meta as well as softer brand spend leading up to the election, with visibility into how brand spend rebounds for the balance of the quarter limited,” said Canaccord Genuity analyst Maria Ripps, in a note.