03/08/2022 | Press release | Archived content
Achieved Record Fourth Quarter and Full-Year 2021 Revenue and Net Cash from Operating Activities
Increased Full Year 2021 Revenue by 36% Year-over Year to $332.7 Million, driven by Growth in Programmatic, Social, CTV and International Revenue
Achieved Full Year 2021 Net Income of $29.3 Million and Adjusted EBITDA of $109.7 Million, representing a 33% Adjusted EBITDA margin
Completed the acquisition of OpenSlate, the Leading Independent Pre-Campaign Contextual Targeting Platform for social video and CTV, in the Fourth Quarter of 2021
Earned MRC Accreditation for Programmatic Targeting Services
NEW YORK--(BUSINESS WIRE)-- DoubleVerify ("DV") (NYSE: DV), a leading software platform for digital media measurement, data and analytics, today announced financial results for the fourth quarter and full year ended December 31, 2021.
"2021 was a year of exceptionally strong execution and performance," said Mark Zagorski, CEO of DoubleVerify. "In our inaugural year as a public company, we measured 4.5 trillion media transactions, grew revenue 36% to more than $330 million, achieved nearly 70% international revenue growth, generated $83 million of net cash from operating activities, completed two acquisitions and launched Authentic Attention, an innovative, identifier-independent performance solution that drives better outcomes for advertisers. Today, we are the only independent, unbiased, third-party platform verifying media quality at scale, across all digital channels and devices. We are still early in our growth trajectory, which is driven by our ongoing product leadership, channel and geographic expansion, new client wins and strategic acquisitions, and we remain optimistic about our growth prospects for 2022 and beyond."
Fourth Quarter 2021 Financial Highlights:
(All comparisons are to the fourth quarter of 2020)
Full Year 2021 Financial Highlights:
(All comparisons are to full year 2020)
Fourth Quarter and Recent Business Highlights:
Strategic Initiatives:
"We achieved stronger than anticipated results in the fourth quarter and drove full year revenue growth of 36% and adjusted EBITDA margin of 33%, driven by product successes in fast-growth sectors such as Programmatic, Social and CTV," said Nicola Allais, CFO of DoubleVerify. "We are guiding to 30% revenue growth and 30% adjusted EBITDA margins at the midpoints of our 2022 guidance ranges, which demonstrates our track record of driving a distinct and sustainable combination of high revenue growth and profitability, even at a larger operational scale."
First Quarter and Full-Year 2022 Guidance:
DoubleVerify anticipates Revenue and Adjusted EBITDA to be in the following ranges:
First Quarter 2022:
Full Year 2022:
With respect to the Company's expectations under "First Quarter and Full Year 2022 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 stock-based compensation expense, 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 and Webcast Information
DoubleVerify will host a conference call and live webcast to discuss its fourth quarter 2021 financial results at 4:30 p.m. Eastern Time today, Mar 8, 2022. To access the conference call, dial (877) 841-2987 for the U.S. or Canada, or (215) 268-9878 for international callers. The webcast will be available live on the Investors section of the Company's website at https://ir.doubleverify.com/. In addition, an archived webcast will be available approximately two hours after the conclusion of the live event.
Key Business Terms
Advertiser Direct revenue is generated from the verification and measurement of advertising impressions that are directly purchased on digital media properties, including publishers and social media platforms.
Advertiser Programmatic revenue is generated from the evaluation, verification and measurement of advertising impressions purchased through programmatic demand-side 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.
DoubleVerify Holdings, Inc. |
||||||||
As of December 31, |
||||||||
(in thousands, except per share data) |
2021 |
2020 |
||||||
Assets: |
||||||||
Current assets |
||||||||
Cash and cash equivalents |
$ |
221,591 |
$ |
33,354 |
||||
Trade receivables, net of allowances for doubtful accounts of $6,527 and $7,049 as of December 31, 2021 and December 31, 2020, respectively |
122,938 |
94,677 |
||||||
Prepaid expenses and other current assets |
23,295 |
13,904 |
||||||
Total current assets |
367,824 |
141,935 |
||||||
Property, plant and equipment, net |
17,575 |
18,107 |
||||||
Goodwill |
350,560 |
227,349 |
||||||
Intangible assets, net |
153,395 |
121,710 |
||||||
Deferred tax assets |
60 |
82 |
||||||
Other non-current assets |
2,780 |
2,151 |
||||||
Total assets |
$ |
892,194 |
$ |
511,334 |
||||
Liabilities and Stockholder's Equity: |
||||||||
Current liabilities |
||||||||
Trade payables |
$ |
3,853 |
$ |
3,495 |
||||
Accrued expense |
41,456 |
25,419 |
||||||
Income tax liabilities |
1,321 |
1,277 |
||||||
Current portion of capital lease obligations |
1,970 |
1,515 |
||||||
Contingent considerations current |
1,717 |
1,198 |
||||||
Other current liabilities |
6,716 |
1,116 |
||||||
Total current liabilities |
57,033 |
34,020 |
||||||
Long-term debt |
- |
22,000 |
||||||
Capital lease obligations |
2,579 |
3,447 |
||||||
Deferred tax liabilities |
30,307 |
31,418 |
||||||
Other non-current liabilities |
3,209 |
3,292 |
||||||
Contingent considerations non-current |
- |
462 |
||||||
Total liabilities |
$ |
93,128 |
$ |
94,639 |
||||
Commitments and contingencies (Note 14) |
||||||||
Stockholders' equity |
||||||||
Common stock, $0.001 par value, 1,000,000 shares authorized, 162,347 shares issued and 162,297 outstanding as of December 31, 2021; 700,000 shares authorized, 140,222 shares issued and 125,074 shares outstanding as of December 31, 2020 |
162 |
140 |
||||||
Preferred stock, $0.01 par value, 100,000 shares authorized, zero shares issued and outstanding as of December 31, 2021; 61,006 shares authorized, issued, and outstanding as of December 31, 2020. Liquidation preference: $350,000 as of December 31, 2020 |
- |
610 |
||||||
Additional paid-in capital |
717,228 |
620,679 |
||||||
Treasury stock, at cost, 50 shares and 15,146 shares as of December 31, 2021 and December 31, 2020, respectively |
(1,802 |
) |
(260,686 |
) |
||||
Retained earnings |
84,249 |
54,941 |
||||||
Accumulated other comprehensive (loss) income, net of income taxes |
(771 |
) |
1,011 |
|||||
Total stockholders' equity |
799,066 |
416,695 |
||||||
Total liabilities and stockholders' equity |
$ |
892,194 |
$ |
511,334 |
DoubleVerify Holdings, Inc. |
||||||||||||
Year Ended December 31, |
||||||||||||
(in thousands, except per share data) |
2021 |
2020 |
2019 |
|||||||||
Revenue |
$ |
332,741 |
$ |
243,917 |
$ |
182,663 |
||||||
Cost of revenue (exclusive of depreciation and amortization shown separately below) |
54,382 |
35,750 |
24,848 |
|||||||||
Product development |
62,698 |
47,004 |
31,598 |
|||||||||
Sales, marketing and customer support |
77,312 |
62,157 |
38,401 |
|||||||||
General and administrative |
81,380 |
53,056 |
26,899 |
|||||||||
Depreciation and amortization |
30,285 |
24,595 |
21,813 |
|||||||||
Income from operations |
26,684 |
21,355 |
39,104 |
|||||||||
Interest expense |
1,172 |
4,931 |
5,202 |
|||||||||
Other income, net |
(309 |
) |
(885 |
) |
(1,458 |
) |
||||||
Income before income taxes |
25,821 |
17,309 |
35,360 |
|||||||||
Income tax (benefit) expense |
(3,487 |
) |
(3,144 |
) |
12,053 |
|||||||
Net income |
$ |
29,308 |
$ |
20,453 |
$ |
23,307 |
||||||
Earnings per share: |
||||||||||||
Basic |
$ |
0.20 |
$ |
0.15 |
$ |
0.17 |
||||||
Diluted |
$ |
0.18 |
$ |
0.14 |
$ |
0.16 |
||||||
Weighted-average common stock outstanding: |
||||||||||||
Basic |
148,309 |
138,072 |
139,650 |
|||||||||
Diluted |
160,264 |
145,443 |
143,046 |
|||||||||
Comprehensive income: |
||||||||||||
Net income |
$ |
29,308 |
$ |
20,453 |
$ |
23,307 |
||||||
Other comprehensive (loss) income: |
||||||||||||
Foreign currency cumulative translation adjustment |
(1,782 |
) |
1,078 |
(67 |
) |
|||||||
Total comprehensive income |
$ |
27,526 |
$ |
21,531 |
$ |
23,240 |
DoubleVerify Holdings, Inc. |
||||||||||||||||||||||||||||||||||
Accumulated |
||||||||||||||||||||||||||||||||||
Other |
||||||||||||||||||||||||||||||||||
Comprehensive |
||||||||||||||||||||||||||||||||||
Common Stock |
Preferred Stock |
Additional |
(Loss) Income |
Total |
||||||||||||||||||||||||||||||
Shares |
Shares |
Treasury Stock |
Paid-in |
Retained |
Net of |
Stockholders' |
||||||||||||||||||||||||||||
(in thousands) |
Issued |
Amount |
Issued |
Amount |
Shares |
Amount |
Capital |
Earnings |
Income Taxes |
Equity |
||||||||||||||||||||||||
Balances as of January 1, 2019 |
139,618 |
$ |
140 |
- |
$ |
- |
- |
$ |
- |
$ |
281,600 |
$ |
11,181 |
$ |
3 |
$ |
292,924 |
|||||||||||||||||
Foreign currency translation adjustment |
- |
- |
- |
- |
- |
- |
- |
- |
(70 |
) |
(70 |
) |
||||||||||||||||||||||
Stock-based compensation |
- |
- |
- |
- |
- |
- |
1,680 |
- |
- |
1,680 |
||||||||||||||||||||||||
Common stock issued upon exercise of stock options |
65 |
- |
- |
- |
- |
- |
177 |
- |
- |
177 |
||||||||||||||||||||||||
Common stock issued upon vesting of restricted stock units |
38 |
- |
- |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||
Net income |
- |
- |
- |
- |
- |
- |
- |
23,307 |
- |
23,307 |
||||||||||||||||||||||||
Balances as of December 31, 2019 |
139,721 |
$ |
140 |
- |
$ |
- |
- |
$ |
- |
$ |
283,457 |
$ |
34,488 |
$ |
(67 |
) |
$ |
318,018 |
||||||||||||||||
Foreign currency translation adjustment |
- |
- |
- |
- |
- |
- |
- |
- |
1,078 |
1,078 |
||||||||||||||||||||||||
Stock-based compensation |
- |
- |
- |
- |
- |
- |
5,984 |
- |
- |
5,984 |
||||||||||||||||||||||||
Exchange of common stock for Series A preferred stock |
- |
- |
45,438 |
454 |
15,146 |
(260,686 |
) |
260,232 |
- |
- |
- |
|||||||||||||||||||||||
Additional Series A preferred stock issuance, net of issuance costs |
- |
- |
15,568 |
156 |
- |
- |
85,308 |
- |
- |
85,464 |
||||||||||||||||||||||||
Repurchase of vested options |
- |
- |
- |
- |
- |
- |
(15,506 |
) |
- |
- |
(15,506 |
) |
||||||||||||||||||||||
Common stock issued under employee purchase plan |
61 |
- |
- |
- |
- |
- |
424 |
- |
- |
424 |
||||||||||||||||||||||||
Common stock issued upon exercise of stock options |
255 |
- |
- |
- |
- |
- |
780 |
- |
- |
780 |
||||||||||||||||||||||||
Common stock issued upon vesting of restricted stock units |
185 |
- |
- |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||
Net income |
- |
- |
- |
- |
- |
- |
- |
20,453 |
- |
20,453 |
||||||||||||||||||||||||
Balances as of December 31, 2020 |
140,222 |
$ |
140 |
61,006 |
$ |
610 |
15,146 |
$ |
(260,686 |
) |
$ |
620,679 |
$ |
54,941 |
$ |
1,011 |
$ |
416,695 |
||||||||||||||||
Foreign currency translation adjustment |
- |
- |
- |
- |
- |
- |
- |
- |
(1,782 |
) |
(1,782 |
) |
||||||||||||||||||||||
Shares repurchased for settlement of employee tax withholdings |
- |
- |
- |
- |
50 |
(1,802 |
) |
- |
- |
- |
(1,802 |
) |
||||||||||||||||||||||
Issuance of common stock as consideration for acquisition |
684 |
1 |
- |
- |
- |
- |
22,525 |
- |
- |
22,526 |
||||||||||||||||||||||||
Stock-based compensation |
- |
- |
- |
- |
- |
- |
21,887 |
- |
- |
21,887 |
||||||||||||||||||||||||
Common stock issued under employee purchase plan |
15 |
- |
- |
- |
- |
- |
404 |
- |
- |
404 |
||||||||||||||||||||||||
Common stock issued upon exercise of stock options |
4,782 |
5 |
- |
- |
- |
- |
12,435 |
- |
- |
12,440 |
||||||||||||||||||||||||
Common stock issued upon vesting of restricted stock units |
366 |
- |
- |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||
Conversion of Series A preferred stock to common stock |
5,190 |
5 |
(61,006 |
) |
(610 |
) |
(15,146 |
) |
260,686 |
(260,081 |
) |
- |
- |
- |
||||||||||||||||||||
Issuance of common stock upon initial public offering |
9,977 |
10 |
- |
- |
- |
- |
269,380 |
- |
- |
269,390 |
||||||||||||||||||||||||
Private placement stock issuance concurrent with initial public offering |
1,111 |
1 |
- |
- |
- |
- |
29,999 |
- |
- |
30,000 |
||||||||||||||||||||||||
Net income |
- |
- |
- |
- |
- |
- |
- |
29,308 |
- |
29,308 |
||||||||||||||||||||||||
Balances as of December 31, 2021 |
162,347 |
$ |
162 |
- |
$ |
- |
50 |
$ |
(1,802 |
) |
$ |
717,228 |
$ |
84,249 |
$ |
(771 |
) |
$ |
799,066 |
DoubleVerify Holdings, Inc. |
||||||||||||
Year Ended December 31, |
||||||||||||
(in thousands) |
2021 |
2020 |
2019 |
|||||||||
Operating activities: |
||||||||||||
Net income |
$ |
29,308 |
$ |
20,453 |
$ |
23,307 |
||||||
Adjustments to reconcile net income to net cash provided by operating activities |
||||||||||||
Bad debt (recovery) expense |
(711 |
) |
4,811 |
3,346 |
||||||||
Depreciation and amortization expense |
30,285 |
24,595 |
21,813 |
|||||||||
Amortization of debt issuance costs |
294 |
285 |
298 |
|||||||||
Loss on extinguishment of debt |
- |
350 |
- |
|||||||||
Accretion of acquisition liabilities |
- |
36 |
363 |
|||||||||
Deferred taxes |
(7,866 |
) |
(5,137 |
) |
1,997 |
|||||||
Noncash stock-based compensation expense |
21,887 |
5,984 |
1,680 |
|||||||||
Interest expense (income) |
103 |
(12 |
) |
(119 |
) |
|||||||
Change in fair value of contingent consideration |
57 |
(949 |
) |
(1,079 |
) |
|||||||
Offering costs |
22,074 |
3,555 |
- |
|||||||||
Other |
733 |
673 |
- |
|||||||||
Changes in operating assets and liabilities, net of effects of business combinations |
||||||||||||
Trade receivables |
(22,004 |
) |
(30,443 |
) |
(32,741 |
) |
||||||
Prepaid expenses and other current assets |
(7,046 |
) |
(8,792 |
) |
(1,637 |
) |
||||||
Other non-current assets |
(521 |
) |
(221 |
) |
(409 |
) |
||||||
Trade payables |
(49 |
) |
2,482 |
(538 |
) |
|||||||
Accrued expenses |
13,946 |
8,960 |
6,162 |
|||||||||
Other current liabilities |
3,741 |
(6,560 |
) |
9,954 |
||||||||
Other non-current liabilities |
(1,482 |
) |
1,146 |
(2,964 |
) |
|||||||
Net cash provided by operating activities |
82,749 |
21,216 |
29,433 |
|||||||||
Investing activities: |
||||||||||||
Purchase of property, plant and equipment |
(9,397 |
) |
(9,751 |
) |
(5,943 |
) |
||||||
Acquisition of businesses, net of cash acquired |
(149,217 |
) |
- |
(57,252 |
) |
|||||||
Net cash used in investing activities |
(158,614 |
) |
(9,751 |
) |
(63,195 |
) |
||||||
Financing activities: |
||||||||||||
Proceeds from long-term debt |
- |
89,650 |
20,000 |
|||||||||
Payments of long-term debt |
(22,000 |
) |
(142,113 |
) |
(750 |
) |
||||||
Deferred payment related to Leiki acquisition |
- |
(2,033 |
) |
(2,189 |
) |
|||||||
Deferred payment related to Zentrick acquisition |
(50 |
) |
(50 |
) |
- |
|||||||
Payment of contingent consideration related to Zentrick acquisition |
- |
(601 |
) |
(601 |
) |
|||||||
Deferred payment related to acquisition of assets |
- |
- |
(71 |
) |
||||||||
Repurchase of vested options |
- |
(15,506 |
) |
- |
||||||||
Proceeds from Series A preferred stock issuance, net of issuance costs |
- |
346,150 |
- |
|||||||||
Payments to shareholders for preferred stock Series A |
- |
(260,686 |
) |
- |
||||||||
Proceeds from common stock issued upon exercise of stock options |
12,440 |
780 |
177 |
|||||||||
Proceeds from common stock issued under employee purchase plan |
404 |
424 |
- |
|||||||||
Proceeds from issuance of common stock upon initial public offering |
269,390 |
- |
- |
|||||||||
Proceeds from issuance of common stock in connection to concurrent private placement |
30,000 |
- |
- |
|||||||||
Payments related to offering costs |
(22,069 |
) |
(3,610 |
) |
- |
|||||||
Payments related to debt issuance costs |
- |
(577 |
) |
- |
||||||||
Capital lease payments |
(1,918 |
) |
(1,443 |
) |
(1,521 |
) |
||||||
Shares repurchased for settlement of employee tax withholdings |
(1,802 |
) |
- |
- |
||||||||
Net cash provided by financing activities |
264,395 |
10,385 |
15,045 |
|||||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash |
(200 |
) |
203 |
23 |
||||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash |
188,330 |
22,053 |
(18,694 |
) |
||||||||
Cash, cash equivalents, and restricted cash-Beginning of period |
33,395 |
11,342 |
30,036 |
|||||||||
Cash, cash equivalents, and restricted cash-End of period |
$ |
221,725 |
$ |
33,395 |
$ |
11,342 |
||||||
Cash and cash equivalents |
$ |
221,591 |
$ |
33,354 |
$ |
10,920 |
||||||
Restricted cash (included in prepaid expenses and other current assets on the Consolidated Balance Sheets) |
134 |
41 |
422 |
|||||||||
Total cash and cash equivalents and restricted cash |
$ |
221,725 |
$ |
33,395 |
$ |
11,342 |
||||||
Supplemental cash flow information: |
||||||||||||
Cash paid for taxes |
7,698 |
16,180 |
1,962 |
|||||||||
Cash paid for interest |
774 |
3,369 |
4,659 |
|||||||||
Non-cash investing and financing transactions: |
||||||||||||
Common stock issued in connection with acquisition |
22,526 |
- |
- |
|||||||||
Exchange of common stock for preferred stock |
- |
260,686 |
- |
|||||||||
Deferred payment obligation issued as consideration |
- |
- |
2,097 |
|||||||||
Contingent consideration issued |
- |
- |
4,690 |
|||||||||
Treasury stock reissued upon the conversion of Series A preferred stock for common stock |
260,686 |
- |
- |
|||||||||
Acquisition of equipment under capital lease |
1,518 |
1,603 |
1,535 |
|||||||||
Capital assets financed by accounts payable |
36 |
- |
- |
|||||||||
Offering costs included in accounts payable and accrued expense |
5 |
75 |
- |
Comparison of the Three and Twelve Months Ended December 31, 2021 and December 31, 2020
Revenue
Three Months Ended December 31, |
Change |
Change |
Year Ended December 31, |
Change |
Change |
||||||||||||||||||
2021 |
2020 |
$ |
% |
2021 |
2020 |
$ |
% |
||||||||||||||||
(In Thousands) |
(In Thousands) |
||||||||||||||||||||||
Revenue by customer type: |
|||||||||||||||||||||||
Advertiser - direct |
$ |
42,256 |
$ |
32,946 |
$ |
9,310 |
28 |
% |
$ |
135,516 |
$ |
106,422 |
$ |
29,094 |
27 |
% |
|||||||
Advertiser - programmatic |
54,104 |
40,092 |
14,012 |
35 |
167,798 |
116,115 |
51,683 |
45 |
|||||||||||||||
Supply-side customer |
9,173 |
5,603 |
3,570 |
64 |
29,427 |
21,380 |
8,047 |
38 |
|||||||||||||||
Total revenue |
$ |
105,533 |
$ |
78,641 |
$ |
26,892 |
34 |
% |
$ |
332,741 |
$ |
243,917 |
$ |
88,824 |
36 |
% |
Adjusted EBITDA
In addition to our results determined in accordance with GAAP, we believe that certain non-GAAP financial measures, including Adjusted EBITDA and Adjusted EBITDA Margin, are useful in evaluating our business. A metric similar to Adjusted EBITDA is used in certain calculations under our New Revolving Credit Facility. We calculate Adjusted EBITDA Margin 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 December 31, |
Year Ended December 31, |
||||||||||||||
2021 |
2020 |
2021 |
2020 |
||||||||||||
(In Thousands) |
(In Thousands) |
||||||||||||||
Net income |
$ |
28,308 |
$ |
8,130 |
$ |
29,308 |
$ |
20,453 |
|||||||
Net income margin |
27 |
% |
10 |
% |
9 |
% |
8 |
% |
|||||||
Depreciation and amortization |
8,296 |
6,428 |
30,285 |
24,595 |
|||||||||||
Stock-based compensation |
9,787 |
2,422 |
21,887 |
5,984 |
|||||||||||
Option cancellation payments |
- |
14,543 |
- |
14,543 |
|||||||||||
Interest expense |
237 |
1,973 |
1,172 |
4,931 |
|||||||||||
Income tax benefit |
(11,848 |
) |
(5,119 |
) |
(3,487 |
) |
(3,144 |
) |
|||||||
M&A and restructuring costs (recoveries) (a) |
2,382 |
(29 |
) |
3,510 |
170 |
||||||||||
Offering, IPO readiness and secondary offering costs (b) |
1,099 |
1,915 |
23,564 |
4,910 |
|||||||||||
Other costs (recoveries) (c) |
2,825 |
(1,427 |
) |
3,812 |
1,605 |
||||||||||
Other income (d) |
(674 |
) |
(1,244 |
) |
(309 |
) |
(885 |
) |
|||||||
Adjusted EBITDA |
$ |
40,412 |
$ |
27,592 |
$ |
109,742 |
$ |
73,162 |
|||||||
Adjusted EBITDA margin |
38 |
% |
35 |
% |
33 |
% |
30 |
% |
(a) |
M&A costs for the three months and year ended December 31, 2021 consist of transaction and integration costs related to the acquisition of Meetrics and OpenSlate as well as associated restructuring costs and related activities. M&A costs for the three months and year ended December 31, 2020 consist of deferred compensation costs related to Zentrick. |
(b) |
Offering, IPO readiness and secondary offering costs for the three months and year ended December 31, 2021 and 2020 consist of third-party costs incurred in preparation for and completion of our IPO and secondary offering related expenses incurred on behalf of Providence VII U.S. Holdings L.P. pursuant to the terms of the stockholder's agreements between the Company and Providence VII U.S. Holdings L.P. |
(c) |
Other costs (recoveries) for the three months and year ended December 31, 2021 are costs associated with the early termination of our agreement for the Zentrick Deferred Payment Terms, previously disclosed as a contingency. Also included in the year ended December 31, 2021 are costs related to the recognition of a cease-use liability related to unoccupied leased office space and of reimbursements paid to Providence for costs incurred prior to the IPO date. For the three months ended December 31, 2020, other costs (recoveries) related to the reimbursement of certain costs incurred for investigating and remediating certain IT/cybersecurity matters that occurred in March 2020. For the year ended December 31, 2020, other costs (recoveries) related to the departure of the Company's former Chief Executive Officer, third-party costs incurred in response to investigating and remediating certain IT/cybersecurity matters that occurred in March 2020 and reimbursements paid to Providence. |
(d) |
Other income for the three months ended December 31, 2021 and 2020 consists of the impact of foreign currency transaction gains and losses associated with monetary assets and liabilities. Other income for the years ended December 31, 2021 and 2020 consists of changes in fair value associated with contingent considerations and the impact of foreign currency transaction gains and losses associated with monetary assets and liabilities. |
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 our core business and for understanding and evaluating trends in our 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:
In addition, other companies in our industry may calculate these non-GAAP financial measures differently than we do, 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 Consolidated Statements of Operations and Comprehensive Income as follows:
Three Months Ended |
Year Ended |
|||||||||||
December 31, |
December 31, |
|||||||||||
(in thousands) |
2021 |
2020 |
2021 |
2020 |
||||||||
Cost of revenue |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
||||
Product development |
2,416 |
208 |
4,369 |
673 |
||||||||
Sales, marketing and customer support |
2,632 |
5,281 |
6,375 |
6,151 |
||||||||
General and administrative |
4,739 |
11,476 |
11,143 |
13,703 |
||||||||
Total stock-based compensation |
$ |
9,787 |
$ |
16,965 |
$ |
21,887 |
$ |
20,527 |
||||
Non-cash stock-based compensation expense |
$ |
9,787 |
$ |
2,422 |
$ |
21,887 |
$ |
5,984 |
||||
Cash-based compensation expense (a) |
- |
14,543 |
- |
14,543 |
||||||||
Total stock-based compensation |
$ |
9,787 |
$ |
16,965 |
$ |
21,887 |
$ |
20,527 |
(a) |
Includes incremental cash-based compensation paid in connection with repurchased and cancelled stock options of 956 that contain both market-based and performance-based vesting conditions. |
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 "Strategic Initiatives" and "First Quarter and Full-Year 2022 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" under our Quarterly Report on Form 10-Q filed with the SEC on November 9, 2021. Additional information will also be set forth in our Annual Report on Form 10-K for the year ended December 31, 2021.
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 is a leading software platform for digital media measurement and analytics. Our mission is to make the digital advertising ecosystem stronger, safer and more secure, thereby preserving the fair value exchange between buyers and sellers of digital media. Hundreds of Fortune 500 advertisers employ our unbiased data and analytics to drive campaign quality and effectiveness, and to maximize return on their digital advertising investments - globally.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220308006109/en/
Media:
Chris Harihar
Crenshaw Communications
646-535-9475
[email protected]
Investor Relations:
Tejal Engman
DoubleVerify
[email protected]
Source: DoubleVerify
Released March 8, 2022