DoubleVerify reported higher third-quarter earnings and indicated that the economic headwinds facing the industry won't slow it down in the remainder of the year.
Net income rose 30% to $10.3 million, or 6 cents a share, up from $7.9 million, or 5 cents a share, a year ago.
Revenues rose 35% to $112.3 million.
The company raised the midpoint of full year guidance for total revenue growth to 36%, or between $450 million and $454 million and said it expects to achieve adjusted EBITDA margins of 31%.
"We delivered another strong quarter and outstanding year-to-date performance fueled by continued momentum in programmatic activation and social and CTV measurement," said CEO Mark Zagorski.
"Our revenue growth of 35% in the third quarter and 40% year-to-date has significantly outpaced that of the broader digital advertising industry as we continue to win new customers and gain market share across geographies and platforms," Zagorski said. "Additionally, we continue to expand product coverage across premium CTV environments such as Netflix and pre-eminent social media platforms such as TikTok, LinkedIn and Twitter."
Analyst Matthew Swanson of RBC Capital Markets rated DoubleVerify stock as "outperform," based on what he called a "standout" quarter in the face of a deteriorating macro economy and TV ad market.
Swanson was also impressed that DoubleVerify raised its full-year guidance, making it unique among ad-tech companies.
"DV's results again pointed to the differentiation of its model, volume-based pricing and platform approach," Swanson said. "Looking out to 2023, we feel additional product cross-sell could accelerate if the macro improves, but on the secular growth driver front, we look for a benefit to CTV from new AVOD inventory, especially Netflix in the 2H, as well as social growth in TikTok and Meta opening up its news feed." ■
Jon has been business editor of Broadcasting+Cable since 2010. He focuses on revenue-generating activities, including advertising and distribution, as well as executive intrigue and merger and acquisition activity. Just about any story is fair game, if a dollar sign can make its way into the article. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. A native New Yorker, Jon is hiding in plain sight in the suburbs of Chicago.
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