DoubleVerify Holdings, Inc. (DV) Q3 2021 Earnings Call Transcript

DoubleVerify Holdings, Inc. (NYSE:DV)
Q3 2021 Earnings Call
Nov 09, 2021, 4:30 p.m. ET

Contents:

• Prepared Remarks
• Questions and Answers
• Call Participants

Prepared Remarks:

Operator

Good day, ladies and gentlemen, and welcome to the DoubleVerify third quarter 2021 financial results conference call. All lines have been placed in a listen-only mode, and the floor will be open for questions and comments following the presentation. [Operator instructions] It is now my pleasure to turn the floor over to your host, Tejal Engman, investor relations.

Tejal Engman — Investor Relations

Good afternoon, and welcome to DoubleVerify’s third quarter 2021 earnings conference call. With us today are Mark Zagorski, CEO; and Nicola Allais, CFO. Today’s press release and this call may contain forward-looking statements that are subject to inherent risks, uncertainties, and changes and reflect our current expectations and the information currently available to us, and our actual results could differ materially. For more information, please refer to the risk factors in our recent SEC filings, including our S-1 registration statement.

In addition, our discussion today will include references to certain supplemental non-GAAP financial measures and should be considered in addition to and not as a substitute for our GAAP results. Reconciliations to the most comparable GAAP measures are available in today’s earnings press release, which is available on our Investor Relations website at ir.doubleverify.com. Also, during the call today, we’ll be referring to a slide deck posted on our website. With that, I’ll turn it over to Mark.

Mark Zagorski — Chief Executive Officer

Thanks, Tejal, and good afternoon, everyone. We’re excited to share with you our third quarter results, expectations for the full year, and additional detail on recent strategic investments we’ve made. We grew the third quarter revenue by 36% to $83.1 million, achieving the top end of our revenue guidance range. We grew third quarter adjusted EBITDA by 82% to $26.4 million, representing 32% EBITDA margins and exceeding the top end of our guidance range.

Advertiser programmatic, advertiser direct, and supply side revenue all delivered double-digit year-over-year growth. Our core revenue growth continues to be driven by our product success in fast-growing sectors such as programmatic, social, and CTV and a global expansion strategy that’s winning large enterprise clients in a growing number of international markets. We’ve had a great year so far. Revenue in the first nine months of 2021 grew 37% year over year.

Adjusted EBITDA grew 52% year over year. We were not impacted by Apple’s app tracking transparency changes because our measurement in pre-bid targeting solutions do not rely on cookies or individual identifiers. Additionally, because we verify, target and measure nearly everywhere that digital dollars are spent, we are largely…