DoubleVerify reports strong Q2 Growth in digital ad verification market

DoubleVerify yesterday announced its financial results for the second quarter of 2024. The company reported a significant 17% year-over-year increase in total revenue, reaching $155.9 million. This growth was primarily driven by expansion in social media and Connected TV (CTV) measurement services, as well as strong performance in the retail media sector.

DoubleVerify's CEO, Mark Zagorski, described the second quarter as "pivotal" for the company, highlighting the re-acceleration of revenue growth momentum. The company's success in this quarter stems from its diverse portfolio of products, including recent innovations like Scibids AI and Authentic Attention. These solutions have contributed to double-digit growth across all three of DoubleVerify's revenue lines: activation, measurement, and supply-side.

The company's financial performance exceeded expectations in several key areas. While hitting the high end of its revenue guidance, DoubleVerify significantly surpassed projections for profitability and cash flow. The adjusted EBITDA reached $46.8 million, representing a 30% margin. This strong financial showing demonstrates the company's ability to balance growth with profitability in the competitive digital advertising market.

One of the most notable achievements in this quarter was the growth in social measurement revenue, which increased by an impressive 44% year-over-year. This surge reflects the increasing importance of social media platforms in the digital advertising ecosystem and DoubleVerify's success in capturing this market opportunity. The company has expanded its partnerships with major social media platforms, including YouTube, Meta, Pinterest, and Reddit, offering enhanced brand safety and suitability measurement capabilities.

Connected TV (CTV) also emerged as a significant growth driver for DoubleVerify. The company reported a 55% year-over-year increase in Media Transactions Measured (MTM) for CTV. This growth aligns with the broader industry trend of increasing advertising spend in the CTV space, as more consumers shift towards streaming services.

International expansion played a crucial role in DoubleVerify's Q2 performance. The company saw a 29% increase in international measurement revenue, with particularly strong growth in the EMEA (Europe, Middle East, and Africa) and APAC (Asia-Pacific) regions, which grew by 35% and 20% respectively. This global growth underscores the company's successful expansion strategy beyond its home market in North America.

DoubleVerify's supply-side revenue, which comes from platforms and publisher partners using the company's data analytics, grew by 26% year-over-year. This growth was largely driven by the burgeoning retail media sector, where DoubleVerify's solutions are gaining traction among major retail platforms and e-commerce sites.

The company's success in the second quarter was not limited to financial metrics. DoubleVerify also reported significant client wins and expansions, including partnerships with global brands such as Universal Pictures, Panera, Subway, Dyson, Philip Morris, and Bacardi. These new relationships span multiple geographies and industries, demonstrating the broad appeal of DoubleVerify's solutions across diverse market segments.

In response to the strong Q2 performance, DoubleVerify has raised the midpoints of its full-year 2024 revenue and adjusted EBITDA guidance ranges. For the third quarter of 2024, the company projects revenue between $167 million and $171 million, representing a 17% year-over-year growth at the midpoint. The full-year 2024 guidance now anticipates revenue between $667 million and $675 million, also a 17% increase year-over-year at the midpoint.

As the digital advertising landscape continues to evolve, DoubleVerify's robust Q2 results and optimistic outlook for the remainder of 2024 suggest that the company is well-positioned to capitalize on emerging opportunities. Its focus on social media, CTV, and international markets aligns with the areas of fastest growth in digital advertising, while its emphasis on brand safety and ad verification addresses persistent industry concerns.

Key facts from DoubleVerify's Q2 2024 earnings report

Total revenue increased by 17% year-over-year to $155.9 million

Social measurement revenue grew by 44% year-over-year

CTV measurement transactions increased by 55% year-over-year

International measurement revenue rose by 29%, with 35% growth in EMEA and 20% in APAC

Supply-side revenue grew by 26%, driven by retail media sector growth

Adjusted EBITDA reached $46.8 million, representing a 30% margin

Full-year 2024 revenue guidance raised to between $667 million and $675 million