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DH

DoubleVerify Holdings, Inc. (DV)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue grew 21% year-over-year to $189.0M, with double-digit growth across Activation (+25%), Measurement (+15%), and Supply-side (+26%); adjusted EBITDA was $57.3M (30% margin) and GAAP diluted EPS was $0.05 .
  • Management raised full-year 2025 revenue growth outlook to ~15% (from ~13% in June and ~10% in February) and reaffirmed FY adjusted EBITDA margin at ~32%—a key positive catalyst alongside Q3 revenue guidance of $188–$192M and adjusted EBITDA of $60–$64M .
  • Results beat Wall Street on revenue but missed on S&P “Primary EPS” definition; revenue consensus was $181.5M vs. $189.0M actual, while EPS consensus was $0.223 vs. $0.146 “Primary EPS” actual; adjusted EBITDA outperformed consensus (see Estimates Context) *.
  • Strategic momentum: ABS upsell (70% of top-500 using ABS), accelerating social (Meta prescreen traction), and CTV scaling (CTV measurement impressions +45% YoY), supporting second-half momentum and 2026 ramp for social activation and DV Authentic AdVantage .

What Went Well and What Went Wrong

  • What Went Well

    • Broad-based growth: Activation +25%, Measurement +15%, Supply-side +26% YoY; advertiser revenue +21% YoY .
    • CTV scaling rapidly: “CTV measurement impressions grew 45% year-over-year, significantly outpacing overall company growth” .
    • Strategic product unification gaining traction: “MAP is clearly resonating… enabling customers to protect media quality and improve efficiency” .

  • What Went Wrong

    • EPS miss vs. S&P “Primary EPS” consensus despite revenue beat (definition mismatch vs GAAP diluted EPS; see Estimates Context) *.
    • Continued pricing pressure (MTF declined 1% YoY), though improved vs prior quarters; CFO: “MTF is an output of product mix… ABS grew 23%” .
    • Macro uncertainty and tougher comps noted for second half; guidance accounts for volatility and measured ramp in social activation (more meaningful in 2026) .

Financial Results

MetricQ2 2024Q1 2025Q2 2025
Revenue ($USD Millions)$155.9 $165.1 $189.0
Diluted EPS ($USD)$0.04 $0.01 $0.05
Net Income Margin %5% 1% 5%
Adjusted EBITDA ($USD Millions)$46.8 $44.7 $57.3
Adjusted EBITDA Margin %30% 27% 30%

Segment revenue breakdown

Segment Revenue ($USD Millions)Q2 2024Q1 2025Q2 2025
Activation$87.5 $95.2 $108.9
Measurement$54.8 $53.4 $62.9
Supply-side$13.6 $16.5 $17.2

Selected KPIs

KPIQ1 2025Q2 2025
Media Transactions Measured (MTM) YoY+22% +19%
Measured Transaction Fee (MTF) YoY-6% -1%
Social Measurement Revenue YoY+1% +14%
International Measurement Revenue YoY-8% +8%
CTV MTM YoY+43% +45%
Gross Revenue Retention>95% >95%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($USD Millions)Q2 2025$169–$173 (May 8) $180–$184 (June 11) Raised
Adjusted EBITDA ($USD Millions)Q2 2025$48–$52 (May 8) $52–$56 (June 11) Raised
Revenue ($USD Millions)Q3 2025—$188–$192 New
Adjusted EBITDA ($USD Millions)Q3 2025—$60–$64 New
Revenue Growth YoYFY 2025~10% (Feb 27) ~13% (June 11) Raised
Revenue Growth YoYFY 2025~13% (June 11) ~15% (Aug 5) Raised
Adjusted EBITDA MarginFY 2025~32% (Feb 27) ~32% (Aug 5) Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024 & Q1 2025)Current Period (Q2 2025)Trend
Social activation on Meta & TikTokQ4: Meta prescreen launched; advertisers waited for pre-bid; social measurement +27% FY; measured ramp expected Social measurement +14% YoY; 26 advertisers live on Meta prescreen; prescreen share doubled; Authentic AdVantage tested across 90 campaigns Positive acceleration
ABS upsell & pricing mix (MTF)Q4/Q1: ABS adoption among top 500 rising; MTF pressured by mix and competitive rates ABS +23% YoY; 70% of top 500 using ABS; MTF down 1% YoY due to premium product mix; % of media pricing expanding Improving mix, pricing flexibility
CTVQ4: CTV MTM +95%; attach to PMP/PG evolving; sell-side integrations (Google Ad Manager, Index, Criteo) CTV measurement +45% YoY; ~11% of total measurement volumes; roadmap for premium features and broader rollout into 2026 Strong growth; feature expansion
Programmatic & RMNsQ4: Shift to PMP/PG reduced attach; sell-side curation to increase DV data usage; RMN supply-side +36% FY Healthy programmatic volume; RMN supply-side +39% YoY; tags accepted across 144 RMNs; 17 top platforms support DV measurement Scaling
AI strategy & MAPQ4: DV unifying verify-optimize-measure; Scibids AI upsell; Rockerbox acquisition announced MAP resonating; Scibids used by 50+ of top 100; % of media pricing expanding; early discussions on ads in AI assistants Strategic differentiation

Management Commentary

  • “We delivered a standout second quarter with revenue up 21% year over year at $189,000,000… Growth was broad based with double digit expansion across all three of our revenue lines” .
  • “CTV measurement impressions grew 45% year over year… CTV represented 11% of total measurement impression volumes” .
  • “ABS… grew 23% year over year… 70% of our top 500 customers now using the product” .
  • “We are raising full year 2025 revenue growth to approximately 15%… and reaffirming full year adjusted EBITDA margin guidance of approximately 32%” .

Q&A Highlights

  • Social acceleration: Sequential improvement driven by existing customer expansion and new logos; Meta prescreen now supporting post-bid measurement adoption and overall social momentum .
  • MTF dynamics: Improvement driven by premium product mix (ABS, social activation); CFO expects mix (premium pricing) to help offset pressure in 2H .
  • Guidance philosophy: Methodology unchanged; raised outlook reflects momentum while accounting for macro volatility and tougher YoY comps .
  • Pricing innovation: Increased openness to percent-of-media pricing, especially for CTV and emerging markets; Scibids has catalyzed % of media pricing experimentation .
  • Capital allocation: $140M authorization remaining; repurchases used to offset SBC dilution; prudence after Q1 cash outlays including Rockerbox .

Estimates Context

Q2 2025 actuals vs Wall Street consensus (S&P Global):

MetricConsensusActualResult
Revenue ($USD Millions)$181.5M*$189.0M Bold beat
Primary EPS (S&P) ($USD)$0.223*$0.146*Miss
Adjusted EBITDA ($USD Millions)$53.8M*$57.3M Beat

Forward quarters:

  • Q3 2025 revenue consensus: $190.2M*, in-line with guidance $188–$192M; EPS consensus $0.266* *.

Values retrieved from S&P Global.*

Where estimates may need to adjust:

  • Revenue and adjusted EBITDA likely move higher given Q2 beat and raised FY growth to ~15% while margin maintained at ~32% .
  • EPS normalization differences vs GAAP diluted EPS should be reconciled by analysts; management’s 30–33% quarterly margin trajectory supports EPS quality .

Key Takeaways for Investors

  • Revenue momentum is durable and diversified (Activation, Measurement, Supply-side), with CTV and social driving upside; Q2 beat and raised FY guide are positive near-term catalysts .
  • ABS upsell and social prescreen adoption support mix improvement; MTF pressure moderates as premium products scale; expect continued attach/stack growth in 2H .
  • CTV remains underpenetrated yet scaling fast (MTM +45% YoY) with roadmap for premium features in late 2025–2026; potential pricing power as transparency increases .
  • MAP and Scibids AI provide competitive differentiation; Rockerbox integration broadens DV into outcomes, mid-market, and lower-funnel DR—expanding TAM and cross-sell .
  • Guidance prudent but confident: Q3 revenue $188–$192M and EBITDA $60–$64M; FY revenue growth ~15% and margin ~32% maintain profitability while investing in AI-led initiatives .
  • Trading implication: Near-term upside biased to revenue/EBITDA beats; watch social activation ramp, ABS adoption, and CTV features as narrative drivers; macro/tariff headlines remain a monitor .