Summary
DoubleVerify reported second-quarter revenue of $155.89 million, up 16.6%, and six-month revenue of $296.67 million, up 15.7%. Management credited social and CTV measurement for the reacceleration in growth. Social measurement revenue increased 44%, international measurement revenue rose 29%, with 35% growth in EMEA and 20% in APAC, and CTV media transactions measured climbed 55%. All three revenue lines grew at a double-digit pace: Activation revenue increased 12%, Measurement revenue increased 22%, and Supply-side revenue increased 26%. Total advertiser revenue grew 16%, and media transactions measured rose 22% year over year. Notable second-quarter wins and expansions included Universal Pictures, Panera, Subway, Dyson, Philip Morris, Bacardi, Anheuser-Busch InBev, Amazon Books, Honda Mobility, JTI and Ajinomoto.
Profitability moved the other way. Operating income was $11.05 million for the quarter, down 24.5%, and the operating margin fell 3.9 percentage points to 7.1%. Net income was $7.47 million, down 41.8%, and diluted earnings per share was $0.04, down 42.9%. The first half shows the same pattern. Operating income of $17.94 million was down 39.9%, net income of $14.63 million was down 41.5%, and diluted earnings per share of $0.08 was down 46.7%. The year-to-date operating margin was 6.0%, down 5.6 percentage points.
Expense growth explains the squeeze. Product development rose 25% to $39.8 million, sales, marketing and customer support rose 42% to $44.9 million, general and administrative rose 17% to $23.1 million, and depreciation and amortization rose 14% to $11.0 million. Cost of sales was essentially unchanged at $26.1 million, aided by cloud migration savings and efficiencies from AI-powered video classification. On the non-GAAP side, adjusted EBITDA was $46.8 million in the quarter, a 30% margin, and $84.9 million for the six months, a 29% margin. Stock-based compensation of $24.7 million in the quarter is one of the larger add-backs in that reconciliation.
Cash generation was the clearest strength. Operating cash flow was $35.88 million, up 234.1% from a year earlier, and $67.66 million for the six months, up 110.3%. Capital expenditures were $7.16 million in the quarter, up 100.6%, and $13.56 million year to date, up 76.7%. Cash and cash equivalents stood at $256.1 million at June 30, 2024, with $82.8 million of short-term investments, no borrowings outstanding under the revolver and $150.0 million undrawn. Remaining performance obligations were $16.90 million.
The company also returned capital. It authorized a $150 million repurchase program in May, bought back 1.4 million shares for $25 million during the second quarter, and repurchased another 1.3 million shares for $25 million in July. As of July 30, 2024, $100 million remained available under the program.
Guidance points to more of the same. For the third quarter of 2024, adjusted EBITDA is guided to $49 million to $53 million, a 30% margin at the midpoint, with revenue growth of 17% year over year at the midpoint. For the full year 2024, adjusted EBITDA is guided to $206 million to $214 million, a 31% margin at the midpoint, and revenue growth is again guided at 17% at the midpoint. The company raised the midpoints of its full-year revenue and adjusted EBITDA ranges. It did not reconcile guided adjusted EBITDA to GAAP net income, citing the difficulty of forecasting depreciation and amortization, acquisition-related costs, interest income and income taxes.
Mix is the item to watch. Measured transaction fee declined 5% year over year on product and geographic mix, while measurement volumes, which carry lower prices than activation, grew relative to the prior-year period. Volume growth of 22% is outrunning price. Gross revenue retention stayed above 95% for the quarter. The filing's risk list covers competition and rapid technological change, data privacy legislation and regulation, security breaches and system failures, economic downturns, the ability to collect payments, international operations, the use of open source software and a limited operating history.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2024 | Q1 FY2024 | QoQ | Q2 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $155.9M | $140.8M | +10.7% | $133.7M | +16.6% |
| Gross profit | $129.8M | $114.2M | +13.7% | $107.6M | +20.7% |
| Gross margin | 83.3% | 81.1% | +2.2 pp | 80.4% | +2.8 pp |
| Research & development | $39.8M | $36.4M | +9.4% | $31.9M | +24.6% |
| Sales & marketing | $44.9M | $37.9M | +18.5% | $31.5M | +42.3% |
| General & administrative | $23.1M | $22.1M | +4.5% | $19.8M | +16.8% |
| Operating income (loss) | $11.0M | $6.9M | +60.2% | $14.6M | -24.5% |
| Operating margin | 7.1% | 4.9% | +2.2 pp | 10.9% | -3.9 pp |
| Net income (loss) | $7.5M | $7.2M | +4.4% | $12.8M | -41.8% |
| Net margin | 4.8% | 5.1% | -0.3 pp | 9.6% | -4.8 pp |
| Diluted EPS | $0.04 | $0.04 | ±$0.00 | $0.07 | -$0.03 |
Risks
Operating margin fell to 7.1% in FY2024 Q2 from 10.9% in FY2023 Q2 and to 6.0% year to date from 11.6% as operating expenses grew faster than revenue. Income from operations was down 24.5% in the quarter and 39.9% year to date.
Sales, marketing and customer support expenses rose 42% in FY2024 Q2 and 45% year to date, primarily on personnel costs including stock-based compensation and sales commissions; product development expenses rose 25% in the quarter and 26% year to date. These increases outpaced revenue growth of 16.6% in the quarter and 15.7% year to date.
Advertiser revenue growth in FY2024 Q2 was driven by a 22% increase in Media Transactions Measured that was partially offset by a 5% decrease in Measured Transaction Fees. For the six months ended June 30, 2024, Media Transactions Measured increased 20% while Measured Transaction Fees decreased 4%, indicating per-transaction pricing pressure.
Stock-based compensation rose to $24.7 million in FY2024 Q2 from $15.2 million in FY2023 Q2 and to $45.0 million year to date from $27.0 million, contributing to higher personnel costs across product development, sales and marketing, and general and administrative functions. The increase is non-cash but can create dilution and expense pressure.
For FY2024 Q2, 91% of revenue came from advertiser customers and 9% from supply-side customers, exposing results to shifts in digital advertising spend. A decline in advertiser demand or retention could pressure revenue, though gross revenue retention was over 95% for the quarter.
Depreciation and amortization increased 14% in FY2024 Q2 and 18% year to date, primarily due to intangible assets related to the acquisition of Scibids, adding a fixed cost burden and integration risk.
SaaS KPIs
All quarters →Adjusted EBITDA
Adjusted EBITDA Margin
Gross Revenue Retention
Media Transactions Measured (MTM) growth
Media Transactions Measured (MTM) for CTV Growth
Summary, forecast, risks and KPIs are extracted from DoubleVerify Holdings, Inc.'s SEC filings for Q2 FY2024 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.