The company’s latest quarterly bottom-line figure wasn’t nearly as high as many hoped.
During earnings season, the quarterly results of a variety of publicly traded companies come thick and fast. One of the companies reporting during this gush after market hours Tuesday was adtech specialist DoubleVerify Holdings (DV -2.13%). Unfortunately, the company fell short of analyst estimates for profitability, and the market punished it for this transgression; the stock closed Wednesday more than 2% lower in price.
A mixed quarter
For its second quarter, DoubleVerify managed to crank its revenue 17% higher year over year to $155.9 million. The company’s headline net income, however, went in the other direction. Under standards based on generally accepted accounting principles — GAAP — it fell to just under $7.5 million ($0.04 per share), against the second-quarter 2023 profit of more than $12.8 million.
Another negative for DoubleVerify is that analysts following the stock were expecting a much higher bottom-line figure. On average, they were estimating the company would post net income of $0.17 per share. At least the company beat on the top line; the pundit consensus for that line item was just under $153.8 million.
DoubleVerify CEO Mark Zagorski put a very bullish spin on the fundamentals. He said that the company’s wide and varied portfolio “helped deliver double-digit growth across all three revenue lines and all key media environments.”
Of those product lines, activation rose by 12% during the quarter to tally $87.5 million, while measurement revenue zoomed 22% higher to $54.8 million. Not to be outdone, the company’s supply side revenue rocketed 26% higher to $13.6 million.
Double-digit growth expected
Management also proffered guidance for both DoubleVerify’s current (third) quarter and the entirety of 2024. For the latter period it’s modeling revenue of $667 million to $675 million; at the midpoint of the range the company would see a 17% year-over-year improvement.
Non-GAAP (adjusted) earnings before interest, taxes, depreciation, and amortization (EBITDA) should land at $206 million to $214 million; the midpoint is 31% higher than the third-quarter 2023 result.
DoubleVerify did not provide any forecasts for net income.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends DoubleVerify. The Motley Fool has a disclosure policy.