During earnings season, the quarterly results of a variety of publicly traded companies come thick and fast. One of the companies reporting during this gush after market hours Tuesday was adtech specialist DoubleVerify Holdings (DV -1.11%). Unfortunately, the company fell short of analyst estimates for profitability, and the market punished it for this transgression; the stock closed Wednesday more than 2% lower in price.
A mixed quarter
For its second quarter, DoubleVerify managed to crank its revenue 17% higher year over year to $155.9 million. The company's headline net income, however, went in the other direction. Under standards based on generally accepted accounting principles -- GAAP -- it fell to just under $7.5 million ($0.04 per share), against the second-quarter 2023 profit of more than $12.8 million.
Another negative for DoubleVerify is that analysts following the stock were expecting a much higher bottom-line figure. On average, they were estimating the company would post net income of $0.17 per share. At least the company beat on the top line; the pundit consensus for that line item was just under $153.8 million.
DoubleVerify CEO Mark Zagorski put a very bullish spin on the fundamentals. He said that the company's wide and varied portfolio "helped deliver double-digit growth across all three revenue lines and all key media environments."
Of those product lines, activation rose by 12% during the quarter to tally $87.5 million, while measurement revenue zoomed 22% higher to $54.8 million. Not to be outdone, the company's supply side revenue rocketed 26% higher to $13.6 million.
Double-digit growth expected
Management also proffered guidance for both DoubleVerify's current (third) quarter and the entirety of 2024. For the latter period it's modeling revenue of $667 million to $675 million; at the midpoint of the range the company would see a 17% year-over-year improvement.
Non-GAAP (adjusted) earnings before interest, taxes, depreciation, and amortization (EBITDA) should land at $206 million to $214 million; the midpoint is 31% higher than the third-quarter 2023 result.
DoubleVerify did not provide any forecasts for net income.