DoubleVerify Holdings (DV) Stock Forecast & Price Target

DoubleVerify Holdings Inc. reported positive financial performance, with overall revenues increasing by 11% year-over-year to $188.6 million, driven primarily by a robust 27% growth in its supply-side segment. The company noted significant progress in its digital advertising channels, with Pre-Bid Social revenues growing 20% year-over-year, and the number of clients expected to spend over $200,000 annually rising by 11% to 347. Furthermore, management has adjusted its forecast for adjusted EBITDA margins in FY25 to 33%, reflecting an improvement from the prior estimate of 32%.

DoubleVerify Holdings Inc. has exhibited a notable deceleration in revenue growth, as North American revenues increased by only 12% year-over-year in the third quarter, a decline from 18% in the previous quarter, and the forecast for the fourth quarter suggests a further reduction to 14% growth, down from 15%. The company's total ad revenue growth has similarly slowed, decreasing from 21% in the second quarter to just 10% in the third quarter, attributed to a weaker retail vertical, and non-ABS revenue growth fell from 23% to 8%. Additionally, the financial outlook for the coming fiscal year anticipates only 10% revenue growth, raising concerns about low revenue visibility, declining margins, and a shift in the digital advertising landscape that may adversely impact the company's core verification services.