DoubleVerify Holdings Inc. (DV) saw its shares jump more than 14% in after-hours trading on Wednesday, following the company’s release of its fourth-quarter earnings report and forecast. Despite doubts about the online-advertising industry, the ad-tech company reported fourth-quarter earnings of $18.1 million, or 11 cents a share, down from 18 cents a share a year ago. Revenue grew to $133.6 million from $105.5 million in the holiday quarter of 2021.
Analysts on average had expected adjusted earnings of 19 cents a share on sales of $132.8 million; however, DoubleVerify did not provide an adjusted per-share earnings figure. Executives guided for first-quarter revenue to be in the range of $135 million to $138 million, with adjusted earnings per share of 17 cents to 19 cents. Analysts had expected revenue of $132.6 million and earnings of 19 cents a share.
The company’s CEO, Mark Zagorski, commented on the results, stating, “We delivered strong fourth-quarter results, with revenue up 26% year-over-year and adjusted EBITDA of $25.7 million, up $7.6 million year-over-year. We also achieved positive free cash flow in the quarter, with $9.2 million of cash flow from operations and $6.1 million of free cash flow.”
The strong results and outlook from DoubleVerify reflect the company’s capabilities in the online advertising industry. With the rise of digital advertising and the increasing need for fraud protection and brand safety, DoubleVerify has been able to capitalize on its position as a leader in the industry.
The company’s suite of products and services enable advertisers to measure, analyze, and optimize their digital campaigns across desktop, mobile, and video platforms. This includes its Identity Suite, which provides advertisers with the ability to identify and target their desired audiences, as well as its Brand Safety Suite, which helps protect brands from potential risks associated with digital advertising.
In addition, DoubleVerify’s Fraud Suite helps protect advertisers from fraud and invalid traffic, while its Viewability Suite helps ensure that digital ads are seen by the right people in the right places. All of these products and services are designed to help advertisers maximize their return on investment (ROI) from their digital campaigns.
The strong results and outlook from DoubleVerify also reflect the company’s ability to capitalize on the increasing demand for digital advertising. According to eMarketer, global digital ad spending is expected to top $335 billion in 2021, with mobile accounting for more than half of that total. This is a significant increase from 2020, when digital ad spending was estimated to be around $293 billion.
As the online advertising industry continues to grow, DoubleVerify is well-positioned to benefit from the increased demand. With its suite of products and services, the company is able to provide advertisers with the tools they need to maximize their ROI and protect their brand from potential risks.
Overall, DoubleVerify’s strong fourth-quarter results and outlook are a testament to the company’s capabilities in the online advertising industry. With its suite of products and services, the company is able to provide advertisers with the tools they need to maximize their ROI and protect their brand from potential risks. As the digital advertising industry continues to grow, DoubleVerify is well-positioned to benefit from the increased demand.
