Summary
DoubleVerify closed 2024 with fourth quarter revenue of $190.6 million, up 10.7% from a year earlier. Operating income rose 2.9% to $38.8 million. Net income fell 29.3% to $23.4 million. Operating margin was 20.3%, down 1.5 percentage points. Adjusted EBITDA reached $73.8 million, a 39% adjusted EBITDA margin, which management called a record. Management attributed the variability to the absence of a post-election rebound in ad spend. Management pointed to CTV measurement and supply-side revenue as growth drivers.
For the full year, revenue rose 14.7% to $656.8 million. Net income dropped 21.3% to $56.2 million. Operating income slipped 3.9% to $82.4 million, and operating margin narrowed to 12.5%, down 2.4 percentage points. Diluted EPS was $0.32, down 22.0%. Adjusted EBITDA was $218.9 million, a 33% margin. Operating cash flow for the year rose 33.3% to $159.7 million. Capital expenditures rose 59.6% to $27.1 million. The company reported net revenue retention of 112% and gross revenue retention above 95%. Net revenue retention of 112% was lower than the 124% reported for 2023. Media Transactions Measured were 8.3 trillion, up 19%, while the Measured Transaction Fee was $0.072, down 4% excluding an introductory fixed fee deal for one large customer.
Growth came from CTV and social. Media Transactions Measured for CTV increased 95% in the fourth quarter and 66% for the full year. Social measurement revenue increased 9% in the quarter and 27% for the year. International measurement revenue increased 11% in the quarter and 22% for the year, with EMEA up 10% and APAC up 13% in the quarter. Supply-side revenue increased 34% in the quarter and 25% for the year. Activation revenue increased 10% in the quarter and 13% for the year. Measurement revenue increased 7% in the quarter and 15% for the year. The company launched content-level avoidance for Meta's Facebook and Instagram Feeds and Reels, expanded TikTok coverage to 64 markets, and added viewability and brand safety coverage on YouTube and Snap. It also agreed to acquire Rockerbox for $85.0 million in cash, a deal expected to close early in the second quarter. Rockerbox brings multi-touch attribution, marketing mix modeling, and incrementality testing, and it opens the mid-market direct response segment. The company said it won new enterprise logos including Kenvue, Diageo, the FDA, Dollar General, Home Depot, National Bank of Canada, Mattress Firm, Kraken, BetMGM and Bet365.
Cash generation was uneven. Fourth quarter operating cash flow fell 28.2% to $37.4 million, even as full-year operating cash flow rose 33.3%. Capital expenditures rose 56.5% in the quarter to $7.4 million and 59.6% for the year to $27.1 million. The company repurchased 6.8 million shares for $128.0 million in 2024 and another 1.1 million shares for $22.2 million in January 2025. It has $200.0 million available under a new repurchase program as of February 27, 2025. First quarter guidance points to revenue of $151 million to $155 million, a year-over-year increase of 9% at the midpoint, with adjusted EBITDA of $37 million to $41 million, a 25% margin at the midpoint. Full year guidance calls for revenue growth of approximately 10% and an adjusted EBITDA margin of approximately 32%. The full year revenue growth target of roughly 10% implies a slower pace than the 14.7% reported for 2024, and the adjusted EBITDA margin target of about 32% sits slightly under the 33% reported for 2024. Rockerbox will add integration work and management attention. The company also faces competition, data privacy regulation, and the risk that advertisers pull back spending if the digital ad market weakens. Deferred revenue was $0.4 million, and remaining performance obligations were $31.3 million, up 187.2% from a year earlier.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2024 | Q3 FY2024 | QoQ | Q4 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $190.6M | $169.6M | +12.4% | $172.2M | +10.7% |
| Gross profit | $156.3M | $140.1M | +11.6% | $142.2M | +9.9% |
| Gross margin | 82.0% | 82.6% | -0.6 pp | 82.6% | -0.6 pp |
| Research & development | $37.5M | $39.3M | -4.5% | $32.6M | +15.3% |
| Sales & marketing | $44.2M | $40.5M | +9.2% | $35.7M | +23.8% |
| General & administrative | $24.0M | $23.0M | +4.0% | $24.7M | -3.2% |
| Operating income (loss) | $38.8M | $25.7M | +50.6% | $37.6M | +2.9% |
| Operating margin | 20.3% | 15.2% | +5.2 pp | 21.9% | -1.5 pp |
| Net income (loss) | $23.4M | $18.2M | +28.6% | $33.1M | -29.3% |
| Net margin | 12.3% | 10.7% | +1.5 pp | 19.2% | -6.9 pp |
| Diluted EPS | $0.13 | $0.10 | +$0.03 | $0.19 | -$0.06 |
| Customers | 2,000 | — | — | 1,800 | +11.1% |
Risks
Two programmatic partner platforms collected approximately 22% and 14% of total revenue in 2024 on behalf of advertiser customers. Loss of, or strain with, these integration partners could adversely affect revenue and results.
DoubleVerify relies on demand- and supply-side advertising platforms, ad servers and social platforms to integrate its technology, and some partners have significant market share and have developed competing products at lower cost or for free. Partners can change platform operations or be subject to regulatory separation, impairing data access and revenue.
Competitors may incorporate AI into their offerings more quickly, cost-effectively or successfully than DoubleVerify, and its use of AI and machine learning models and Scibids-related initiatives carries execution, intellectual property, data privacy and regulatory risks. MD&A highlights continued AI investments.
Growing data privacy and digital advertising laws, including GDPR, UK GDPR, CCPA and CPRA, impose compliance burdens and potential fines up to 20 million Euros or 4% of annual global revenue. The Data Privacy Framework and Standard Contractual Clauses face ongoing legal challenges.
DoubleVerify has a research and development center in Tel Aviv, Israel, with 136 employees, and the ongoing Israel-Hamas war and regional instability could disrupt operations and product development. It also has 93 employees in London and operations in multiple foreign jurisdictions.
For the year ended December 31, 2024, revenue was up 14.7% year to date while net income was down 21.3% year to date and operating margin was down 2.4 percentage points year to date. Sales, marketing and customer support expenses increased 33% and product development expenses increased 22% in the year ended December 31, 2024.
Economic downturns, high inflation, high interest rates, tariffs, foreign exchange fluctuations and geopolitical instability could cause customers to decrease advertising budgets or delay purchases. This could slow the digital ad market growth on which DoubleVerify depends.
DoubleVerify often has long sales cycles, and under usage-based pricing most customers control when and to what extent they use the platform. It is difficult to predict when new customers will generate revenue, creating timing variability.
The workforce increased by more than 32% since the beginning of 2023 to 1,197 employees, with 499 based outside the Americas as of December 31, 2024. Competition for technical personnel and reliance on equity compensation could harm retention and increase costs.
The New Revolving Credit Facility contains restrictive covenants and requires compliance with a maximum total net leverage ratio of 4.50x starting with the fiscal quarter ending March 31, 2025. A default could accelerate debt and limit operating flexibility.
DoubleVerify has completed six acquisitions since 2018 and agreed to acquire Rockerbox, with future acquisitions possible. Integration difficulties, unanticipated liabilities, dilution and management distraction could harm results.
Net revenue retention was 112% for the year ended December 31, 2024 and 124% for the year ended December 31, 2023. A further decline could slow future revenue growth even if gross revenue retention remains over 95%.
Advertising activity is seasonal, with the fourth quarter typically reflecting the highest level of measurement activity and the first quarter the lowest. If revenue growth slows or seasonal spending becomes more pronounced, seasonality could cause revenue, cash flow and operating results to fluctuate.
DoubleVerify relies on programmatic partners and media agencies to collect payments from advertiser customers, and billing disputes could lead to lost clients or reduced revenue. MD&A notes a prior-year bad debt reserve related to MediaMath's bankruptcy.
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 Q4 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.