RBC Capital has adjusted its price target for DoubleVerify (DV, Financial), bringing it down to $21 from a previous $24, while maintaining an Outperform rating for the company's shares. The firm anticipates that DoubleVerify will deliver strong performance in its upcoming quarterly report. However, the company's management has taken a cautious approach in its initial projections for fiscal year 2025. This conservative outlook follows the impact of losing a major client amid broader economic challenges.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 18 analysts, the average target price for DoubleVerify Holdings Inc (DV, Financial) is $18.75 with a high estimate of $24.00 and a low estimate of $11.00. The average target implies an upside of 39.61% from the current price of $13.43. More detailed estimate data can be found on the DoubleVerify Holdings Inc (DV) Forecast page.
Based on the consensus recommendation from 21 brokerage firms, DoubleVerify Holdings Inc's (DV, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for DoubleVerify Holdings Inc (DV, Financial) in one year is $45.90, suggesting a upside of 241.77% from the current price of $13.43. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the DoubleVerify Holdings Inc (DV) Summary page.
DV Key Business Developments
Release Date: February 27, 2025
- Total Revenue: $657 million for 2024, a 15% year-over-year increase.
- Billable Media Transactions: 8.3 trillion, a 19% increase year-over-year.
- Adjusted EBITDA Margin: 33% for 2024.
- Net Cash from Operating Activities: $160 million, up 33% from last year.
- Q4 Revenue: $191 million, an 11% year-over-year growth.
- Q4 Adjusted EBITDA: $74 million, a 39% margin.
- Full Year Net Income: $56 million, a 9% margin.
- Social Media Measurement Revenue: $110 million in 2024, a 27% increase.
- Supply Side Revenue Growth: 25% year-over-year.
- Number of Customers Generating Over $200,000: 331, up from 290 in 2023.
- Cash on Hand and Short-term Investments: $311 million at year-end 2024.
- Share Repurchases: 6.8 million shares for $128 million in 2024.
- 2025 Revenue Guidance: Expected growth of approximately 10%.
- 2025 Q1 Revenue Guidance: $151 million to $155 million.
- 2025 Q1 Adjusted EBITDA Guidance: $37 million to $41 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- DoubleVerify Holdings Inc (DV, Financial) achieved a 15% year-over-year revenue growth in 2024, reaching $657 million.
- The company measured a record 8.3 trillion billable media transactions, a 19% increase year-over-year.
- DV secured major new partnerships with global brands such as P&G, Microsoft, and Google, reinforcing its industry leadership.
- Supply side revenue grew by 25% year-over-year, driven by demand from retail media platforms and new platform and publisher customers.
- The company maintained a strong adjusted EBITDA margin of 33% and generated $160 million in net cash from operating activities, up 33% from the previous year.
Negative Points
- DV faced a significant reduction in ad spend from one of its largest customers due to rising commodity costs, impacting its Q4 performance.
- The absence of a post-election rebound in ad spend contributed to a disappointing Q4 that fell short of expectations.
- There was a continued shift of ad dollars from open web programmatic to proprietary platforms like social media, where DV's solutions were less available.
- The company experienced a 5% decrease in pricing or NTF, excluding the impact of an introductory fixed-fee deal.
- DV's guidance for 2025 reflects a transition year with anticipated limited growth from a cohort of six advertisers that weighed on 2024 results.
