DoubleVerify (DV) Reports Earnings Tomorrow. What To Expect

Jabin Bastian /
2022/03/07 7:08 am EST
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Digital media measurement and analytics provider DoubleVerify (NYSE:DV) will be reporting results tomorrow after the bell. Here's what to look for.

Last quarter DoubleVerify reported revenues of $83 million, up 36.1% year on year, beating analyst revenue expectations by 1.52%. It was a mixed quarter for the company, with an exceptional revenue growth but an underwhelming revenue guidance for the next quarter.

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

This quarter analysts are expecting DoubleVerify Holdings's revenue to grow 28.3% year on year to $100.9 million, slowing down from the 36.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.14 per share.

DoubleVerify Holdings Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time since going public on average by 2.68%.

Looking at DoubleVerify's peers in the advertising software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. AppLovin delivered top-line growth of 55.6% year on year, beating analyst estimates by 2.2% and The Trade Desk reported revenues up 23.6% year on year, exceeding estimates by 1.52%. AppLovin traded down 23.4% on the results, The Trade Desk was up 4.1%. Read our full analysis of AppLovin's results here and The Trade Desk's results here.

Tech stocks have had a rocky start in 2022 and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 12% over the last month. DoubleVerify is down 6.45% during the same time, and is heading into the earnings with analyst price target of $36.2, compared to share price of $25.07.

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.