Why Are DoubleVerify (DV) Shares Soaring Today

Radek Strnad /
2023/05/11 9:31 am EDT

What Happened:

Shares of digital media measurement and analytics provider DoubleVerify (NYSE:DV) jumped 5.92% in the after-market session after the company reported a "beat and raise" quarter. First quarter results exceeded analysts' revenue, adjusted EBITDA, and earnings per share estimates. Outperformance was driven by strength in measurement revenue which was well ahead of expectations and was a result of customer expansions on social as well as new enterprise customers signed in FY22. Revenue and EBITDA guidance for the next quarter were in line with Consensus. Additionally, the full-year revenue guidance was lifted and came in ahead of estimates. Overall, the Q1 results and guidance were impressive, considering the uncertain macro called out by some peers.

What is the market telling us:

DoubleVerify's shares are quite volatile and over the last year have had 24 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.

DoubleVerify is up 39.1% since the beginning of the year, and at $30.28 per share it is trading close to its 52-week high of $31.41 from October 2022. Investors who bought $1,000 worth of DoubleVerify's shares at the IPO in April 2021 would now be looking at an investment worth $841.67.

Is now the time to buy DoubleVerify? Access our full analysis of the earnings results here, it's free.