If the digital advert market is a storm, DoubleVerify (DV) is somebody in a puffy down jacket and waterproof boots. In different phrases, insulated.
Due to its fixed-fee, volume-based mannequin, DV can subsist when budgets flit from channel to channel, or when advert charges decline. “Our enterprise mannequin doesn’t really feel that ache when CPMs go down as a result of we’re not taking a rev share,” CEO Mark Zagorski advised traders on Thursday.
Throughout 1 / 4 when many firms are enjoying Pin the Blame on the Macroenvironment, the advert verification supplier’s Q3 income rose 28% YOY to $144 million.
Activation income, which refers to DV’s model security and suitability merchandise, grew 31% YOY to $81.7 million. The expansion got here largely from DV’s programmatic product, which elevated 40% (two-thirds of that progress derives from present advertisers utilizing the product in additional markets, versus a 3rd from new advertisers). It comprised 57% of complete Q3 income, up from 55% a yr in the past.
In the meantime, supply-side income, which at $11 million accounted for simply 8% of complete Q3 income, fell 2% YOY. Zagorski attributed the decline to 2 SSP shoppers merging and consolidating their enterprise whereas a 3rd SSP was acquired.
DV inventory rose about 1% after reporting earnings.
Sock it to me, social
Quick-form video – be it YouTube Shorts, Meta Reels or TikTok – is “firing on all cylinders,” Zagorski mentioned, and “enterprise is booming.”
Total, DV classifies 130% extra content material on social platforms than it did a yr in the past, he mentioned. For example, the corporate began providing viewability and invalid visitors measurement throughout YouTube Shorts stock within the third quarter. TikTok Q3 revenues have been nearly double the income from the identical interval final yr.
However Meta, already the biggest contributor to DV’s social income, stays its money cow.
In This autumn, DV will start testing third-party model suitability verification for Fb and Instagram Feed and Reels. In a basic upselling technique that DV isn’t shy about hyping (Zagorski famous that greater than 50% of its high 50 shoppers use not less than six of its seven merchandise), DV will urge its social advertiser shoppers to undertake the brand new Meta measurement product.
And whereas DV’s CTV enterprise is rising, it’s smaller than the corporate’s different platforms due to the sunshine streaming advert load, Zagorski mentioned. “We get significantly extra bang for the buck from short-term video, social, even open web buys.”
As ad-supported CTV subscribers and impressions develop, CTV may grow to be a significant supply of progress. Within the meantime, Zagorski mentioned, it stays a channel that offers DV extra to measure.
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Past the underside line, Zagorski credited DV’s consideration metric product for attracting advertisers and contributing to new consumer wins. The corporate’s Q3 consumer additions included Ulta Magnificence, Common Motors, Complete Vitality, the NFL, Rolex, P&G and Meijer.
Zagorski cited DV’s partnerships with client buy information platform Attain and CTV measurement supplier TVision as attention-related investments.
As for DV’s August acquisition of customizable AI startup Scibids, the combination remains to be in progress, although the AI-based customized bidding platform has already garnered curiosity from efficiency advertisers, Zagorski mentioned.
DV entered 2023 with a “massive query mark” about its prospects however has had a reassuring yr, Zagorski mentioned. Even the possibly main disruption of MediaMath’s June chapter brought on minimal fallout for DV. “MediaMath was not one in all our main platforms, but it surely did have a couple of massive shoppers on it,” Zagorski mentioned. These shoppers switched comparatively rapidly to different DSPs.
DV is upping its full-year income steerage vary to between $570 million and $574 million, which corresponds to a 27% YOY progress price (its earlier estimate was 25%).
“We don’t have a crystal ball,” Zagorski mentioned, “however we really feel higher now than we did the identical time final yr.”
