BMO Capital has lifted the price target for DoubleVerify (DV, Financial), moving it from $25 to $26 while maintaining an Outperform rating on the stock. This update comes in response to insights gained from DoubleVerify's recent "Innovation Day," where the company unveiled its new Media AdVantage Platform. This innovative tool is designed to help clients verify, optimize, and demonstrate the effectiveness of their advertising expenditures from a single, integrated platform.
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 $18.28 with a high estimate of $26.00 and a low estimate of $13.00. The average target implies an upside of 22.26% from the current price of $14.95. 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 $45.41, suggesting a upside of 203.75% from the current price of $14.95. 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: May 08, 2025
- Total Revenue: $165 million, an increase of 17% year over year.
- Adjusted EBITDA Margin: 27%.
- Net Cash from Operating Activities: Grew by 19%.
- Advertiser Business Growth: 16%, driven by 20% growth in activation.
- Supply Side Business Growth: 35% year over year.
- Number of Advertisers Generating Over $200,000: Grew 14% year over year to 337.
- CTV Measurement Volume Growth: Nearly 43% year over year.
- ABS Revenue Growth: 16%.
- Non-ABS Activation Solutions Growth: 24% year over year.
- Net Operating Cash Flow: $38 million in the first quarter.
- Cash and Short-term Investments: Approximately $175 million.
- Guidance for Q2 Revenue: Expected between $169 and $173 million.
- Guidance for Q2 Adjusted EBITDA: Expected between $48 and $52 million, representing a 29% margin at the midpoint.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- DoubleVerify Holdings Inc (DV, Financial) reported a strong start to 2025 with a 17% year-over-year increase in total revenue, reaching $165 million.
- The company achieved a 27% adjusted EBITDA margin, highlighting operational efficiency.
- Significant growth was observed in the supply side business, with a 35% year-over-year increase, driven by new platform and publisher customers.
- DoubleVerify Holdings Inc (DV) expanded its customer base, with the number of advertisers generating over $200,000 in annual revenue growing by 14% year-over-year.
- The company successfully launched new solutions, such as the content-level pre-bid avoidance solution on Meta's platforms, which showed early traction and improved brand suitability rates.
Negative Points
- Despite strong performance, DoubleVerify Holdings Inc (DV) maintained its full-year guidance due to macroeconomic uncertainties, indicating a cautious outlook.
- International revenue growth was softer this quarter, partly due to a large customer pausing spend, impacting overall performance.
- The company faced challenges with CTV fraud, with sophisticated bot fraud accounting for 65% of all CTV fraud, highlighting ongoing risks in this area.
- Cost of revenue increased due to higher revenue sharing costs with programmatic partners and increased cloud services expenses.
- Social media growth was impacted by a large customer reducing spend due to higher commodity costs, affecting the overall growth in this segment.
