DoubleVerify Holdings Inc. (DV, Financials) shares plummeted 37.1% on Friday, falling $8.07 to $13.66, after the company's fourth-quarter and full-year 2024 financial results missed Wall Street estimates.
With net profitability of $23.4 million and fourth-quarter sales of $190.6 million—an 11% annual increase—the business said it performed well despite hurdles. With a 39% adjusted EBITDA margin, quarter adjusted EBITDA came out to be $73.8 million. But the results fell short of analyst projections, which set off a dramatic sell-off.
Driven by development in social, connected TV measurement and programmatic activation, revenue jumped 15% to $656.8 million for full-year 2024. With net income of $56.2 million, adjusted EBITDA came out to be $218.9 million, a 33% adjusted EBITDA margin shown.
Seeking to improve its media effectiveness capabilities by combining Rockerbox's performance attribution and optimization tools, DoubleVerify announced a deal to purchase Rockerbox for $85 million in cash.
With CTV measurement rising 95% year over year, CEO Mark Zagorski said demand for DoubleVerify's solutions remained robust. Still, he pointed out that the lack of a post-election upswing affected fourth-quarter ad expenditure. He stated the business stayed profitable while still making investments in its offerings.
DoubleVerify paid $22.2 million for 1.1 million shares repurchased in January 2025 The corporation bought 6.8 million shares for $128 million to mark full-year 2024. Under its present share buyback program, it has $200 million free-available.
DoubleVerify projects income for the first quarter of 2025 between $151 million and $155 million, a 9% year over-year growth at the midpoint. Reflecting a 25% margin at the midpoint, adjusted EBITDA is estimated to be between $37 million and $41 million. The business projects adjusted EBITDA margin of around 32% and sales increase of roughly 10% for full-year 2025.
