DoubleVerify (DV) Reports Q1: Everything You Need To Know Ahead Of Earnings

Jabin Bastian /
2024/05/06 3:12 am EDT

Digital media measurement and analytics provider DoubleVerify (NYSE:DV) will be announcing earnings results tomorrow after market close. Here's what to expect.

DoubleVerify met analysts' revenue expectations last quarter, reporting revenues of $172.2 million, up 28.9% year on year. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter.

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 12.8% year on year to $138.2 million, slowing from the 26.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.13 per share.

DoubleVerify Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. DoubleVerify has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 3.3% on average.

Looking at DoubleVerify's peers in the sales and marketing software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Sprout Social delivered year-on-year revenue growth of 28.7%, meeting analysts' expectations, and VeriSign reported revenues up 5.5%, in line with consensus estimates. Sprout Social traded down 40.1% following the results while VeriSign was also down 4%.

Read our full analysis of Sprout Social's results here and VeriSign's results here.

Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance thanks to mixed inflation data, and while some of the sales and marketing software stocks have fared somewhat better, they have not been spared, with share prices down 3.1% on average over the last month. DoubleVerify is down 7.5% during the same time and is heading into earnings with an average analyst price target of $41.2 (compared to the current share price of $30.37).

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