DoubleVerify (DV) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 17% year-over-year to $156M, reaching the high end of guidance, driven by global expansion in social and CTV measurement and increased adoption of programmatic solutions.

• Adjusted EBITDA was $47M (30% margin); net income reached $7.5M, with net income margin at 5%.

• Achieved double-digit growth across activation (+12%), measurement (+22%), and supply-side (+26%) revenue lines; social measurement revenue up 44%.

• Major client wins and expansions included global brands, with a win rate above 80% and high gross revenue retention rate over 95%.

• Strategic focus on AI-powered solutions, Verify Everywhere strategy, and expansion across social, CTV, retail media, and open web channels.

Financial highlights

• Q2 2024 revenue: $156M, up 17% year-over-year; Adjusted EBITDA: $47M (30% margin); net income: $7.5M.

• Net cash from operations was $36M; ended Q2 with $256.1M–$339M in cash and short-term investments.

• Gross margin improved to 83%, exceeding expectations.

• Repurchased 2.7M shares for $50M in Q2 and July; $100M remains authorized for further repurchases.

• Diluted EPS was $0.04, down from $0.08 in Q2 2023.

Outlook and guidance

• Raised full-year 2024 guidance: revenue expected at $667–$675M (17% growth), Adjusted EBITDA at $206–$214M (31% margin).

• Q3 2024 revenue guidance: $167–$171M (17% growth); Adjusted EBITDA: $49–$53M (30% margin).

• Second half expected to contribute 56% of full-year revenue, with acceleration to 18% growth.

• Guidance does not include material upside from Meta measurement or Moat customer conversions in 2024; these are expected to contribute in 2025 and beyond.

• Sufficient liquidity and undrawn $150M credit facility support ongoing operations.