DoubleVerify (DV) To Report Earnings Tomorrow: Here Is What To Expect

Jabin Bastian /
2023/05/09 4:31 am EDT
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Digital media measurement and analytics provider DoubleVerify (NYSE:DV) will be reporting results tomorrow after market hours. Here's what to look for.

Last quarter DoubleVerify reported revenues of $133.6 million, up 26.6% year on year, in line with analyst expectations. It was a decent quarter for the company with revenue guidance for the next quarter inline with analysts' expectations.

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 22.1% year on year to $118.1 million, slowing down from the 43.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.11 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 three downward revisions over the last thirty days. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 3.89%.

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 what we can expect. Braze delivered top-line growth of 40.1% year on year, beating analyst estimates by 3.05% and VeriSign reported revenues up 5.04% year on year, missing analyst estimates by 0.8%. Both companies (Braze and Verisign) traded flat on the results.  Read our full analysis of Braze's results here and VeriSign's results here.

The fears around raising interest rates have been putting pressure on tech stocks and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 4.81% over the last month. DoubleVerify is down 11.3% during the same time, and is heading into the earnings with analyst price target of $34.5, compared to share price of $27.17.

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.