DoubleVerify (DV) Q1 Earnings: What To Expect

Jabin Bastian /
2022/05/09 7:48 am EDT

Digital media measurement and analytics provider DoubleVerify (NYSE:DV) will be reporting earnings tomorrow after the bell. Here's what to expect.

Last quarter DoubleVerify reported revenues of $105.5 million, up 34.1% year on year, beating analyst revenue expectations by 4.54%. It was a solid quarter for the company, with a strong top line growth and a decent beat of analyst estimates.

Is DoubleVerify buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting DoubleVerify's revenue to grow 32.9% year on year to $89.8 million, in line with the 31.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.07 per share.

DoubleVerify Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing two downward revisions over the last thirty days. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time since going public on average by 3.15%.

Looking at DoubleVerify's peers in the sales and marketing software segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Sprout Social delivered top-line growth of 40.6% year on year, beating analyst estimates by 2.08% and HubSpot reported revenues up 40.5% year on year, exceeding estimates by 3.27%. Sprout Social traded up 3.7% on the results, and HubSpot was down 5.4%. Read our full analysis of Sprout Social's results here and HubSpot's results here.

Triggered by the Federal Reserve's hawkish stance on interest rates, shares of technology companies have been facing sell-off in 2022 and software stocks have been swept alongside with it, with share price down on average 18.1% over the last month. DoubleVerify is down 14.4% during the same time, and is heading into the earnings with analyst price target of $33.9, compared to share price of $20.85.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.