Digital media measurement and analytics provider DoubleVerify (NYSE:DV) will be reporting results tomorrow afternoon. Here’s what investors should know.
DoubleVerify met analysts’ revenue expectations last quarter, reporting revenues of $169.6 million, up 17.8% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EBITDA estimates.
Is DoubleVerify a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting DoubleVerify’s revenue to grow 14.3% year on year to $196.9 million, slowing from the 28.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.32 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. DoubleVerify has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 0.9% on average.
Looking at DoubleVerify’s peers in the advertising software segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Zeta delivered year-on-year revenue growth of 49.6%, beating analysts’ expectations by 6.7%, and AppLovin reported revenues up 44%, topping estimates by 8.6%. AppLovin traded up 24.1% following the results.
Read our full analysis of Zeta’s results here and AppLovin’s results here.
Stocks, especially growth stocks where cash flows further in the future are more important to the story, have had a good 2024. An economic soft landing (so far), the start of the Fed's rate cutting campaign, and the election of Donald Trump were positives for the market, and while some of the advertising software stocks have shown solid performance, the group has generally underperformed, with share prices down 8% on average over the last month. DoubleVerify is up 6.9% during the same time and is heading into earnings with an average analyst price target of $22.95 (compared to the current share price of $22.10).
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