DoubleVerify Holdings Inc at Needham Technology, Media & Consumer Conference Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Laura Martin - Needham & Company Inc - Analyst : Okay. And let's just talk to products specifically. So you had, you started with a post bid product where you'd measure after the fact, like, almost like a measurement Nielsen kind of idea. Here's what happened after the fact. Then you very cleverly invite you introduced

Question: Laura Martin - Needham & Company Inc - Analyst : Okay. What do you say, Nicola?

Question: Laura Martin - Needham & Company Inc - Analyst : One of the subjects that has surprised me on this stage today is we have been really spending a lot of time on curation, right, which you guys know immediately what that means, but it's a new word for the audience, right? And that's just moving data from the DSP sort of to the SSP. I would shorthand it. How do you, is that good for you or bad for you? Are you indifferent because you're getting paid by Trade Desk anyway and now you're just going to get paid by Magnite and your fees aren't any different, so you don't care?

Question: Laura Martin - Needham & Company Inc - Analyst : On your statement that other, so one of the things that somebody on my stage and I'm already losing track. I'm sorry, said this morning was that a lot of times platform fees on the DSP are only 8%, but the average gets up to 20%, and that's all layering all the data, at 1% and 2% each, it's easy to get to 16% or 12% data fees on top of the 8%. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 13, 2025 / 3:00PM, DV.N - DoubleVerify Holdings Inc at Needham Technology, Media & Consumer Conference So, you're saying what I heard you say, Mark, is that you price your product the same whether it's attached to an SSP or a DSP. So you really are indifferent. You're not pricing it higher at the SSP. You're pricing the same, so you're indifferent. You don't make more money, you don't make less where somebody wants to buy the data, you'll let them buy it.

Question: Laura Martin - Needham & Company Inc - Analyst : So to me, that isn't priced the same, then you're not indifferent. You'd rather have it attached to the SSP.

Question: Laura Martin - Needham & Company Inc - Analyst : It's a brand-new thing. Okay. But so wouldn't make you to your price on the DSP data so you can cover your 20% fee that you're not having to pay on the SSP side?

Question: Laura Martin - Needham & Company Inc - Analyst : Okay. So one of the things that you and I talk about a lot, Mark, besides price, which I know I just give you a really hard time on. Is this issue of are you inventing the products or others? So, you've just said that a big pivot of yours is moving towards performance, but you bought that, right and outcomes that was Rocker Box. And then withy bids being more efficient, like you're pivoting from where DV started to where it's going, you've had to buy both of those products. Tell me why, tell me buy versus build. Is it just that you saw something coming, they had already been working on it. They had decided three years earlier. So, they've been building it, and it was just going to take you too long to build. So it's cheaper to buy them. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 13, 2025 / 3:00PM, DV.N - DoubleVerify Holdings Inc at Needham Technology, Media & Consumer Conference

Question: Laura Martin - Needham & Company Inc - Analyst : (Multiple Speakers) Tiny for you guys.

Question: Laura Martin - Needham & Company Inc - Analyst : Okay. What I was going to say is I cover a lot of companies that aren't based here and I think it's so funny because outside America, people are like, if I build great tech, they will come. Like that's not a thing. Like if you do great sales, they may come and maybe the tech can be secondary, but I think it's a great, like it's a great arbitrage. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 13, 2025 / 3:00PM, DV.N - DoubleVerify Holdings Inc at Needham Technology, Media & Consumer Conference You guys have great sales and great relationships that actually matters in media a lot and great tech you can buy. I mean, it's better to buy them and put their awesome tech to somewhere will actually have impact. It is really a win for everybody.

Question: Laura Martin - Needham & Company Inc - Analyst : Now, when you think about the Scibids and Rockerbox products. And you just said stacking is a key like important thing to you. Do you stack those on top? Are they stack, are they stacked products from your point of view, or are they somehow open new TAM, which isn't really a stack?

Question: Laura Martin - Needham & Company Inc - Analyst : We don't have that in a tech other than you. So it's not like a thing they should know.

Question: Laura Martin - Needham & Company Inc - Analyst : So in a sense they're paying for it pay for it. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 13, 2025 / 3:00PM, DV.N - DoubleVerify Holdings Inc at Needham Technology, Media & Consumer Conference

Question: Laura Martin - Needham & Company Inc - Analyst : Okay. So one of the reasons I liked Scibids so much was because they got paid as a percent of revenue, not as a fixed fee, which I despise, as a fee structure. Anyway, moving on, my question is, have you kept that business model and given that you just said just now that 200 brands that they never would have had access to have adopted or all of those brands paying for Scibids based on percent of ad revenue that they ad spending that goes through Scibids .

Question: Laura Martin - Needham & Company Inc - Analyst : So I wanted to hear. I'm happy. That's totally great. Okay, so, in pricing power, one of the things I always ask you on any opportunity, Mark is your prices remain the same when you move from, I'm going to call it DB plus, but that's the magnite product. When you move from the open internet product to connect to television, even though the cost per $1000 that you were adding value to went up 10x, right? $20 CPMs when you started, no longer because we have more supply now, but at the beginning it was $20 CPMs versus $2 CPMs you charge that same, let's call it 20% rate per 1,000 and I objected. And you've said for a long time, we know we're adding more value to CTV. We need to raise price. Tell me where you are. I get that you agree with me when are we actually going to see price raised on the CTV piece?

Question: Laura Martin - Needham & Company Inc - Analyst : But it sounds like you would have the old product would stay at the same price and you get the price increase by, I'm going to say, stacking this new product onto it. I don't object, because that's what you did with pre-bid when I was yelling at you at the time when you only had one product. I'm like, when do we get a price increase? You're like, we're just going to introduce this new price and bundle it with the old, which tripled the price point. So, in a way it was better than what I was asking. So, I've totally, this is totally a fine way to raise. Look, you're basically saying everybody has to be a customer first at this $0.08 per $1,000, but then we're going to add stuff that gets you the call. That takes the meeting, right, because you already have a relationship with them. But then we're going to upsell something that we know, and a score would be, so would a quality score for coke then be a different quality score for like diapers? Is the quality score related to what the ad part is?

Question: Laura Martin - Needham & Company Inc - Analyst : Okay, so like a brand suitability, wouldn't be a, like Hulu has these super high quality units that still might not be the brand safe that might not be the same brand suitability score for diapers versus Geico versus Coca-Cola. It would be unique to the advertising.

Question: Laura Martin - Needham & Company Inc - Analyst : And you guys have access to this data?

Question: Laura Martin - Needham & Company Inc - Analyst : That would be a really, that is really valuable, especially to the extent they use extensions and they're putting in a fast channel. Yeah, very interesting. Okay, and the timing of this product rollout would be?

Question: Laura Martin - Needham & Company Inc - Analyst : Okay, all right, so this would be, I think this would be very exciting, mostly because of the pricing implications, but just to have the notion of a product that does quality scoring for CTV is really interesting because basically that becomes best in class and everybody else has to keep up with that and it would make better behavior of the CTV ecosystem. It seems to me. Okay, let's talk about acquisitions. So to both of you, question, do you guys acquired Scibids and that was just to tell you guys, that was in the third quarter of '23, which was for $125 million Rockerbox for $85 million. So again, tiny little acquisitions, but hugely beneficial from a bundling pricing. Let me call a product offering point of view in terms of when your salesman goes in, you want him to have it's almost like a ride at Disneyland. You want to be able to talk about something new. So they took the meeting for a reason and not just we want a price increase on what we showed you last year. So, I totally get that one a year is makes a lot of sense. Going forward, it sounds like you're building the connected television product that allows you to raise price. What other kinds of things can you see building that would make this stacking idea more valuable?

Question: Laura Martin - Needham & Company Inc - Analyst : Okay. Well, I'm a big believer in bundling. Bundling says it lowers term by 50%, so the bigger your bundle gets, the less likely you are, at least from a consumer point of view, I assume it also applies to enterprise. I've only done the research on consumers.

Question: Laura Martin - Needham & Company Inc - Analyst : If something doesn't work, there's somebody to call and say fix this and it scales, right? That's the key. I would assume this kind of thing is a faster growth driver than going offshore. Wouldn't it be? I mean, don't you have enough growth in America that you don't have to go offshore where they might want different things?

Question: Laura Martin - Needham & Company Inc - Analyst : I'm just wrong.

Question: Laura Martin - Needham & Company Inc - Analyst : Well, I will tell you, Wall Street has decided sometimes we're wrong, that the future of television is performance, that because Amazon has sent this new benchmark, that to keep up in connected television, you really do have to drive to purchase. The question is, does that make data irrelevant? Like you're selling a lot of data and verification. But I think one of the things you and I have talked about in the past, Mark, is that let's say half the impressions are wasted and they're fraudulent. So long as somebody's spending $1 getting $4 of return at the purchase level, doesn't matter. Like they're not going to pay to hear that half their impressions are wasted because what they're going to solve for is I spend $1 I get $4 a purchase. So, can you speak to that?

Question: Laura Martin - Needham & Company Inc - Analyst : You're raising a really interesting question that I'm thinking or a really interesting learning that's happening on my stage in real time. My very first speaker, which was Critio in the morning, said that the sides are softening, the DSPs are taking on SSP capabilities, SSPs are taking on DSP capabilities, and the open internet is getting to act more like a walled garden within themselves because these walled gardens, like the rise of Amazon and TikTok are so powerful. That these walled gardens are becoming more powerful as a group in a sense and probably they're mostly taking share from each other, I would say. But anyway, my question is staying with this thing, this point you've just made, Mark, is, are we seeing that really going forward your solution speaks to walled gardens, that's where you said you're going and the open internet both is the whole ecosystem is the demand and supply requiring more of a holistic look. So, that you take away the disadvantages of the walled garden and marry them with the advantages of the open internet, which is comparability. Your solution compares wall garden self-grading homework to the open. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 13, 2025 / 3:00PM, DV.N - DoubleVerify Holdings Inc at Needham Technology, Media & Consumer Conference

Question: Laura Martin - Needham & Company Inc - Analyst : Tell me where that goes. Is that good for the internet? Well, that would imply that the internet's returns are at least as good on a like for like basis as Wall Gardens. Is that true?

Question: Laura Martin - Needham & Company Inc - Analyst : Well, the point I would build on is incrementality, even if your wall gardens was the most efficient way. Amazon just to first CPG. You still have to reach everybody, and not everybody's on Amazon. Amazon tells us they only have 120 households here and we know there's 240 so you need to reach the other 100 if you're selling to certain products.

Question: Laura Martin - Needham & Company Inc - Analyst : Wall's gotten wrong in the last decade. How many linear TV subs there. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 13, 2025 / 3:00PM, DV.N - DoubleVerify Holdings Inc at Needham Technology, Media & Consumer Conference

Question: Laura Martin - Needham & Company Inc - Analyst : Okay, for verify. Anybody, any questions? Okay, great. We have about five more minutes and then it's time to go. Okay, so let's talk about modes. So competitive advantage, pricing power, I really like this strategy you're articulating, not only of the pivot to performance, I like that a lot, but the bundling strategy of adding more things and adding products that drive pricing power. I'm like a huge, it's sort of an editor of CEOs and CEO strategy. Like I like all of that, like on the 10 out of 10 level in terms of adding value, bigger, more complicated bundles, lower churn, more pricing power through more value added. I totally hear that that works and by the way, if it doesn't work, they'll push back and you'll have to cut the price. But you guys are good so far you've been really good at pricing products at a premium and then getting them adopted. So, so far, I think you have a really good track record of introducing--

Question: Laura Martin - Needham & Company Inc - Analyst : Okay. And I hear you from this thing that I've learned on this stage, which is maybe where advertising's going is integrated walled gardens to open internet that you guys have a pole position in that because very few people can say that. But my question is competitive advantage modes, which goes to pricing power of course but tell me how you think, do you only think of your competitors IAS? Or do you, I mean, is one of the benefits that you have pricing impact there's only two of you? Or do you think of single point solutions as competitors? Who's your competitive set? And or I would have come on to this stage saying you're just getting displaced because as we drive to purchase we don't need the data layer, but you probably disagree with that.

Question: Laura Martin - Needham & Company Inc - Analyst : I wouldn't find them, these competitors actually. And so I'm going to ask my last hard question mark, which is, when you think about Gen AI and data, how are you guys using Gen AI to lower costs and the part that's hard is you are adding employees, second only to the trade desk because I'm going to ask this of Jeff too. This is common. You guys add employees like no one else in the business except for trade desk, which means what that says to me is you're not a tech platform. You're some kind of service platform because scale should mean that your revenue per employee is going up. And it's not. When you look at Google and Facebook, they are really tech platforms, and they scale. Why are we adding so many employees, please?

Question: Laura Martin - Needham & Company Inc - Analyst : Okay, well, it's okay. I spent an hour with Roku and the CFOs convinced me that revenue per employee is not the right productivity metric. So we will be changing our productivity metric. I don't know how you guys come out on that, but I'm keeping a close eye FTEs, as call it there. Thank you very much.