DoubleVerify (DV) Baird’s 2024 Global Consumer, Technology & Services Conference summary

Industry trends and market environment

• Digital advertising is experiencing solid double-digit growth, with spending patterns becoming more dynamic and quarter-to-quarter focused.

• Social and CTV channels are driving industry growth, with short-form video and new ad-supported streaming inventory expanding opportunities.

• Social engagement is fueled by short-form video, while CTV growth is driven by major platforms launching ad-supported tiers.

• The company sees significant opportunity in both social and CTV, with current attach rates below 5% for social and 20% for CTV in the U.S.

Monetization and product strategy

• Monetization on social is currently measurement-focused, with future activation opportunities as new tools and platforms are penetrated.

• CTV monetization is tied to pricing, with current rates not reflecting the higher CPMs of CTV inventory, presenting a future pricing opportunity.

• New product launches, such as brand safety solutions for Meta and dynamic bid optimization via Scibids, are expanding the product suite and customer value.

• ABS product growth slowed due to reduced spend from a core customer cohort but is expected to rebound, driven by new customer adoption.

Customer dynamics and financial guidance

• Six large customers, including three in the top 10, underperformed expectations due to company-specific issues, impacting guidance by $28 million.

• The revised guidance assumes continued underperformance from this cohort, but other clients are exceeding expectations, and the issue is not seen as systemic.

• Fiscal 2024 guidance anticipates revenue acceleration in the second half, driven by ramping large advertisers, new client wins, and social momentum.

• The business is de-risked for the year based on early underperformance, with 56% of revenue now programmatic, making visibility more fluid but manageable.