DoubleVerify Holdings Inc.

02/28/2024 | Press release | Archived content

Q4 Financial Results (doubleverify reports fourth quarter and full year 2023 financial results)

DoubleVerify Reports Fourth Quarter and Full Year 2023 Financial Results

Download as PDF February 28, 2024 4:05pm EST

Increased Fourth Quarter 2023 Revenue by 29% Year-over-Year to $172.2 Million

Grew Fourth Quarter 2023 Social Measurement Revenue by 62% Year-over Year

Achieved Fourth Quarter 2023 Net Income of $33.1 Million and Adjusted EBITDA of $65.4 Million, representing a 38% Adjusted EBITDA margin

Increased 2023 Revenue by 27% Year-over-Year to $572.5 Million Driven by Global Growth in Social, CTV Measurement and Programmatic Activation

Achieved 2023 Net Income of $71.5 Million and Adjusted EBITDA of $187.1 Million, representing a 33% Adjusted EBITDA margin

NEW YORK--(BUSINESS WIRE)-- DoubleVerify ("DV") (NYSE: DV), one of the leading software platforms for digital media measurement, data and analytics, today announced financial results for the fourth quarter and full year ended December 31, 2023.

"2023 was another year of exceptional growth and profitability driven by strong execution," said Mark Zagorski, CEO of DoubleVerify. "We measured 7 trillion media transactions, grew revenue by 27% to more than $572 million, achieved 33% adjusted EBITDA margins and generated approximately $120 million of net cash from operating activities. DV continues to significantly outpace the growth of the broader digital advertising industry as our essential protection and performance solutions scale globally. Exciting differentiated growth opportunities such as Scibids AI and our expanded social video verification suite will leverage our unparalleled global scale and connectivity and leadership in innovation to drive exceptional media performance for global brands, fueling our long-term market share growth trajectory."

Fourth Quarter 2023 Financial Highlights:
 (All comparisons are to the fourth quarter of 2022)

  • Total revenue of $172.2 million, an increase of 29%.
  • Activation revenue of $99.4 million, an increase of 32%.
  • Measurement revenue of $60.4 million, an increase of 30%.
    • Social measurement revenue increased by 62%.
    • International measurement revenue increased by 43% with EMEA growth of 45% and APAC growth of 39%.
    • Media Transactions Measured ("MTM") for CTV increased by 34%.
  • Supply-Side revenue of $12.4 million, an increase of 5%.
  • Net income of $33.1 million and adjusted EBITDA of $65.4 million, which represented a 38% adjusted EBITDA margin.

Full Year 2023 Financial Highlights:
 (All comparisons are to full year 2022)

  • Total revenue of $572.5 million, an increase of 27%.
  • Media Transactions Measured (MTM) were 7 trillion, an increase of 25%.
  • Measured Transaction Fee (MTF) was $0.075, an increase of 3%.
  • Net Revenue Retention (NRR) of 124%.
  • Activation revenue of $328.9 million, an increase of 31%.
  • Measurement revenue of $198.0 million, an increase of 25%.
    • Social measurement revenue increased by 48%.
    • International revenue increased by 43%.
    • Media Transactions Measured for CTV increased by 33%.
  • Supply-Side revenue of $45.6 million, an increase of 5%.
  • Net income of $71.5 million, an increase of 65%.
  • Adjusted EBITDA of $187.1 million, an increase of 32%, representing a 33% adjusted EBITDA margin.

Fourth Quarter and Recent Business Highlights:

  • Grew Total Advertiser revenue by 31% year-over-year in the fourth quarter primarily due to a 25% increase in MTM and a 5% increase in MTF.
  • Continued to achieve a Gross Revenue Retention rate of over 95% in the fourth quarter.
  • Grew premium-priced Authentic Brand Suitability (ABS) revenues by 45% year-over-year in the fourth quarter primarily due to volume expansion by large existing global advertisers as well as by new customer activations.
  • Drove global market share growth through product upsells, international expansion and new enterprise logo wins. Notable new business wins include: Haleon and Walgreens.
  • Launched Brand Safety and Suitability measurement on Facebook and Instagram Feeds and Reels, creating greater transparency across some of the most engaging user-generated content environments in the world.
  • Expanded Brand Safety and Suitability measurement capabilities to YouTube Shorts in the fourth quarter, following the launch of viewability and invalid traffic measurement across YouTube Shorts in the third quarter of 2023.
  • Launched a first-of-its-kind activation solution that combines DV pre-screen brand suitability technology with Scibids AI to boost advertiser protection and improve campaign efficiency and performance on Social video.
  • Expanded relationship with LinkedIn to provide supply-side fraud prevention and brand safety and fraud measurement solutions across Linkedin's Audience Network.
  • Partnered with Criteo on the upcoming launch of an industry leading solution that measures onsite invalid traffic (IVT), brand suitability, and viewability on Criteo's network of retail media partners, with plans to combine Criteo's outcomes data with DV Authentic Attention data in the future, allowing advertisers to correlate attention with business outcomes.
  • Partnered with InMobi for fraud avoidance and viewability, brand safety and fraud measurement, a supply-side win that was driven by InMobi's commitment to working with best-in-class partners who provide advertisers with a meaningful return-on-investment.
  • Expanded industry-leading Universal Attention segments to Amazon and Viant's DSPs.
  • Launched new tiered brand suitability categories to address "Made For Advertising" (MFA) measurement and protection in a more nuanced and brand-specific way, providing advertisers with enhanced granularity and control to determine the level of protection that best suits their requirements.

"Once again, DV delivered a powerful combination of growth and profitability," said Nicola Allais, CFO of DoubleVerify. "Our industry-leading 29% year-over-year revenue growth and 38% adjusted EBITDA margins in the fourth quarter are a testament to the strength of our platform and our ability to balance innovation and new business growth with strong profitability and cash flow generation. We remain focused on execution in 2024 and are excited about our solid pipeline of new and expansionary business opportunities as we continue to meaningfully outpace the digital advertising industry and gain market share."

First Quarter and Full-Year 2024 Guidance:

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

First Quarter 2024:

  • Revenue of $136 to $140 million, a year-over-year increase of 13% at the midpoint.
  • Adjusted EBITDA in the range of $33 to $37 million, representing a 25% margin at the midpoint.

Full Year 2024:

  • Revenue of $688 to $704 million, a year-over-year increase of 22% at the midpoint.
  • Adjusted EBITDA in the range of $205 to $221 million, representing a 31% margin at the midpoint.

With respect to the Company's expectations under "First Quarter and Full-Year 2024 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 fourth quarter 2023 financial results at 4:30 p.m. Eastern Time today, February 28, 2024. 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/. 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 and Notes

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 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.

CONSOLIDATED BALANCE SHEETS

As of December 31,

(in thousands, except per share data)

2023

2022

Assets:

Current assets

Cash and cash equivalents

$

310,131

$

267,813

Trade receivables, net of allowances for doubtful accounts of $9,442 and $8,893 as of December 31, 2023 and December 31, 2022, respectively

206,941

167,122

Prepaid expenses and other current assets

15,930

10,161

Total current assets

533,002

445,096

Property, plant and equipment, net

58,020

47,034

Operating lease right-of-use assets, net

60,470

64,692

Goodwill

436,008

343,011

Intangible assets, net

140,883

135,429

Deferred tax assets

13,077

35

Other non-current assets

1,571

1,731

Total assets

$

1,243,031

$

1,037,028

Liabilities and Stockholder's Equity:

Current liabilities

Trade payables

$

12,932

$

6,675

Accrued expense

44,264

33,085

Operating lease liabilities, current

9,029

7,041

Income tax liabilities

5,833

11,953

Current portion of finance lease obligations

2,934

1,846

Other current liabilities

8,863

8,310

Total current liabilities

83,855

68,910

Operating lease liabilities, non-current

71,563

74,086

Finance lease obligations

2,865

779

Deferred tax liabilities

8,119

12,890

Other non-current liabilities

2,690

3,504

Total liabilities

169,092

160,169

Commitments and contingencies (Note 16)

Stockholders' equity

Common stock, $0.001 par value, 1,000,000 shares authorized, 171,168 shares issued and 171,146 outstanding as of December 31, 2023; 1,000,000 shares authorized, 165,448 shares issued and 165,417 outstanding as of December 31, 2022

171

165

Additional paid-in capital

878,331

756,299

Treasury stock, at cost, 22 shares and 31 shares as of December 31, 2023 and December 31, 2022, respectively

(743

)

(796

)

Retained earnings

198,983

127,517

Accumulated other comprehensive loss, net of income taxes

(2,803

)

(6,326

)

Total stockholders' equity

1,073,939

876,859

Total liabilities and stockholders' equity

$

1,243,031

$

1,037,028

DoubleVerify Holdings, Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

Year Ended December 31,

(in thousands, except per share data)

2023

2022

2021

Revenue

$

572,543

$

452,418

$

332,741

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

106,631

77,866

54,382

Product development

125,376

95,118

62,698

Sales, marketing and customer support

125,953

107,416

77,312

General and administrative

87,971

78,666

81,380

Depreciation and amortization

40,885

34,328

30,285

Income from operations

85,727

59,024

26,684

Interest expense

1,066

905

1,172

Other income, net

(11,216

)

(1,249

)

(309

)

Income before income taxes

95,877

59,368

25,821

Income tax expense (benefit)

24,411

16,100

(3,487

)

Net income

$

71,466

$

43,268

$

29,308

Earnings per share:

Basic

$

0.43

$

0.26

$

0.20

Diluted

$

0.41

$

0.25

$

0.18

Weighted-average common stock outstanding:

Basic

167,803

163,882

148,309

Diluted

173,435

170,755

160,264

Comprehensive income:

Net income

$

71,466

$

43,268

$

29,308

Other comprehensive income (loss):

Foreign currency cumulative translation adjustment

3,523

(5,555

)

(1,782

)

Total comprehensive income

$

74,989

$

37,713

$

27,526

DoubleVerify Holdings, Inc.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

Accumulated

Other

Comprehensive

Common Stock

Preferred Stock

Additional

Loss,

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, 2021

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

Foreign currency translation adjustment

-

-

-

-

-

-

-

-

(5,555

)

(5,555

)

Shares repurchased for settlement of employee tax withholdings

-

-

-

-

402

(10,244

)

-

-

-

(10,244

)

Stock-based compensation expense

-

-

-

-

-

-

42,787

-

-

42,787

Common stock issued to non-employees

4

-

-

-

-

-

-

-

-

-

Common stock issued upon exercise of stock options

1,518

2

-

-

-

-

5,801

-

-

5,803

Common stock issued upon vesting of restricted stock units

1,488

1

-

-

-

-

(1

)

-

-

-

Common stock issued under employee purchase plan

91

-

-

-

-

-

1,734

-

-

1,734

Treasury stock reissued upon settlement of equity awards

-

-

-

-

(421

)

11,250

(11,250

)

-

-

-

Net income

-

-

-

-

-

-

-

43,268

-

43,268

Balances as of December 31, 2022

165,448

$

165

-

$

-

31

$

(796

)

$

756,299

$

127,517

$

(6,326

)

$

876,859

Foreign currency translation adjustment

-

-

-

-

-

-

-

-

3,523

3,523

Shares repurchased for settlement of employee tax withholdings

-

-

-

-

142

(4,586

)

-

-

-

(4,586

)

Issuance of common stock as consideration for acquisition

1,642

2

-

-

-

-

52,935

-

-

52,937

Stock-based compensation expense

-

-

-

-

-

-

60,351

-

-

60,351

Common stock issued under employee purchase plan

105

-

-

-

-

-

2,723

-

-

2,723

Common stock issued upon exercise of stock options

2,634

3

-

-

-

-

10,663

-

-

10,666

Common stock issued upon vesting of restricted stock units

1,339

1

-

-

-

-

(1

)

-

-

-

Treasury stock reissued upon settlement of equity awards

-

-

-

-

(151

)

4,639

(4,639

)

-

-

-

Net income

-

-

-

-

-

-

-

71,466

-

71,466

Balances as of December 31, 2023

171,168

$

171

-

$

-

22

$

(743

)

$

878,331

$

198,983

$

(2,803

)

$

1,073,939

DoubleVerify Holdings, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

Year Ended December 31,

(in thousands)

2023

2022

2021

Operating activities:

Net income

$

71,466

$

43,268

$

29,308

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

Bad debt expense (recovery)

10,075

5,033

(711

)

Depreciation and amortization expense

40,885

34,328

30,285

Amortization of debt issuance costs

294

294

294

Non-cash lease expense

6,727

7,339

-

Deferred taxes

(25,046

)

(19,581

)

(7,866

)

Stock-based compensation expense

59,244

42,307

21,887

Interest expense

68

107

103

Loss on disposal of fixed assets

5

1,353

-

Impairment of long-lived assets

-

1,510

-

Change in fair value of contingent consideration

(1,193

)

-

57

Offering costs

-

-

22,074

Other

492

87

733

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

Trade receivables

(43,691

)

(49,765

)

(22,004

)

Prepaid expenses and other assets

(5,591

)

9,094

(7,567

)

Trade payables

5,476

2,884

(49

)

Accrued expenses and other liabilities

530

16,604

16,205

Net cash provided by operating activities

119,741

94,862

82,749

Investing activities:

Purchase of property, plant and equipment

(17,009

)

(39,981

)

(9,397

)

Acquisition of businesses, net of cash acquired

(67,240

)

-

(149,217

)

Net cash used in investing activities

(84,249

)

(39,981

)

(158,614

)

Financing activities:

Payments of long-term debt

-

-

(22,000

)

Deferred payment related to Zentrick acquisition

-

-

(50

)

Proceeds from revolving credit facility

50,000

-

-

Payments to revolving credit facility

(50,000

)

-

-

Payment of contingent consideration related to Zentrick acquisition

-

(3,247

)

-

Proceeds from common stock issued upon exercise of stock options

10,666

5,803

12,440

Proceeds from common stock issued under employee purchase plan

2,723

1,734

404

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

-

(6

)

(22,069

)

Finance lease payments

(2,314

)

(1,924

)

(1,918

)

Shares repurchased for settlement of employee tax withholdings

(4,586

)

(10,244

)

(1,802

)

Net cash provided by (used in) financing activities

6,489

(7,884

)

264,395

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

338

(784

)

(200

)

Net increase in cash, cash equivalents, and restricted cash

42,319

46,213

188,330

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

267,938

221,725

33,395

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

$

310,257

$

267,938

$

221,725

Cash and cash equivalents

$

310,131

$

267,813

$

221,591

Restricted cash (included in prepaid expenses and other assets on the Consolidated Balance Sheets)

126

125

134

Total cash and cash equivalents and restricted cash

$

310,257

$

267,938

$

221,725

Supplemental cash flow information:

Cash paid for taxes

$

60,883

$

12,351

$

7,698

Cash paid for interest

$

714

$

554

$

774

Non-cash investing and financing transactions:

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

$

2,547

$

71,979

$

-

Acquisition of equipment under finance lease

$

5,479

$

-

$

1,518

Capital assets financed by accounts payable and accrued expenses

$

261

$

12

$

36

Stock-based compensation included in capitalized software development costs

$

1,103

$

480

$

-

Common stock issued in connection with acquisition

$

52,937

$

-

$

22,526

Liabilities for contingent consideration

$

1,193

$

-

$

-

Treasury stock reissued upon the conversion of Series A preferred stock for common stock

$

-

$

-

$

260,686

Offering costs included in accounts payable and accrued expense

$

-

$

-

$

5

Comparison of the Three and Twelve Months Ended December 31, 2023 and December 31, 2022

Revenue

Three Months Ended December 31,

Change

Change

Year Ended December 31,

Change

Change

2023

2022

$

%

2023

2022

$

%

(In Thousands)

(In Thousands)

Revenue by customer type:

Activation

$

99,402

$

75,502

$

23,900

32

%

$

328,936

$

251,198

$

77,738

31

%

Measurement

60,387

46,324

14,063

30

198,024

157,908

40,116

25

Supply-side customer

12,442

11,810

632

5

45,583

43,312

2,271

5

Total revenue

$

172,231

$

133,636

$

38,595

29

%

$

572,543

$

452,418

$

120,125

27

%

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 December 31,

Year Ended December 31,

2023

2022

2023

2022

(In Thousands)

(In Thousands)

Net income

$

33,105

$

18,068

$

71,466

$

43,268

Net income margin

19

%

14

%

12

%

10

%

Depreciation and amortization

11,520

8,882

40,885

34,328

Stock-based compensation

16,473

11,083

59,244

42,307

Interest expense

275

224

1,066

905

Income tax expense

8,636

11,979

24,411

16,100

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

(359

)

5

1,262

1,224

Offering, IPO readiness and secondary offering costs (b)

315

566

910

1,292

Other (recoveries) costs (c)

(164

)

(245

)

(964

)

3,414

Other income (d)

(4,373

)

(1,671

)

(11,216

)

(1,249

)

Adjusted EBITDA

$

65,428

$

48,891

$

187,064

$

141,589

Adjusted EBITDA margin

38

%

37

%

33

%

31

%

  1. M&A and restructuring costs for the year ended December 31, 2023 consist of transaction costs related to the acquisition of Scibids Technology SAS ("Scibids"). M&A and restructuring costs for the year ended December 31, 2022 consist of transaction costs, integration and restructuring costs related to the acquisition of OpenSlate.
  2. Offering, IPO readiness and secondary offering costs for the year ended December 31, 2023 consist of third-party costs incurred for underwritten secondary public offerings by certain stockholders of the Company. Offering, IPO readiness and secondary offering costs for the year ended December 31, 2022 consist of third-party costs incurred for the Company's filing of a "shelf" registration statement on Form S-3, and costs incurred for an underwritten secondary public offering by certain stockholders of the Company.
  3. Other recoveries for the year ended December 31, 2023 consist of sublease income for leased office space. Other costs for the year ended December 31, 2022 consist of costs related to the departures of the Company's former Chief Operating Officer and Chief Customer Officer, impairment related to a subleased office space and costs related to the disposal of furniture for unoccupied lease office space, partially offset by sublease income for lease office space.
  4. Other income for the years ended December 31, 2023 and 2022 consists of interest income earned on interest-bearing monetary assets, changes in fair value associated with contingent consideration, 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 Consolidated Statements of Operations and Comprehensive Income is as follows:

Three Months Ended

Year Ended

December 31,

December 31,

(in thousands)

2023

2022

2023

2022

Product development

$

6,366

$

4,455

$

22,955

$

15,030

Sales, marketing and customer support

5,101

3,547

18,299

14,265

General and administrative

5,006

3,081

17,990

13,012

Total stock-based compensation

$

16,473

$

11,083

$

59,244

$

42,307

The weighted average basic and diluted shares outstanding for the three months and year ended December 31, 2023 is as follows:

Three Months Ended

Year Ended

(in thousands)

December 31, 2023

December 31, 2023

Weighted-average common shares outstanding:

Basic

170,374

167,803

Diluted

175,008

173,435

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 "First Quarter and Full-Year 2024 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 Annual Report on Form 10-K filed with the SEC on February 28, 2024 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240228743205/en/

Investor Relations
Tejal Engman
DoubleVerify
[email protected]

Media Contact
Chris Harihar
Crenshaw Communications
646-535-9475
[email protected]

Source: DoubleVerify

Released February 28, 2024