DoubleVerify Holdings Inc at Piper Sandler Growth Frontiers Conference Transcript

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

Question: Matt Farrell - Piper Sandler &Co. - Analyst : So Nicola, why don't we just start with a brief overview of DV?

Question: Matt Farrell - Piper Sandler &Co. - Analyst : Great. And DoubleVerify exhibited a solid Q2 and a strong full-year guide on the last call. Would love to hear a bit more about what's driving some of the near-term trends, both activation and measurement. And anything specific you'd call out from a vertical perspective of strength that we can see on.

Question: Matt Farrell - Piper Sandler &Co. - Analyst : And maybe just taking us back to your bigger picture. Based on your conversations with advertisers, how is the broader digital advertising landscape here, I guess in Q3 and heading into year-end? And what are some of the puts and takes that we should be considering from maybe a macro or even a micro perspective?

Question: Matt Farrell - Piper Sandler &Co. - Analyst : And DoubleVerify has been one of the few companies within digital advertising that's actually driving accelerated revenue growth in the back half of the year. You kind of hit on it before, but I wanted to kind of double-click on what's driving that strong momentum and allowing you to kind of accelerate revenues while the rest of the industry is kind of stabilizing at this front growth?

Question: Matt Farrell - Piper Sandler &Co. - Analyst : And maybe let's dive into social a little bit more. You hit on Meta. Obviously, we're still early around their adoption of brand safety and suitability. But what are some of the early takeaways that you have and I think, call it, I think we're about nine months in it at this point?

Question: Matt Farrell - Piper Sandler &Co. - Analyst : Yeah. And maybe just taking a step back, as you pointed out, social as a category has been a huge driver. You've talked about TikTok in the past. What inning are we in kind of around the social adoption curve for your products? And at some point in the future, how much of your revenue could be coming from social?

Question: Matt Farrell - Piper Sandler &Co. - Analyst : Yes. And maybe pivoting to CTV, it's been a hot topic this year. You have some early partnerships within this space. Just help us understand the value that you're providing to advertisers within CTV, especially as a lot more inventory has kind of come on.

Question: Matt Farrell - Piper Sandler &Co. - Analyst : And pivoting a little bit again. You hit on them earlier, but the company has been working through a unique situation with a few large retail CPG customers this year. What's the latest and greatest on this customer cohort as you head into year-end? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 10, 2024 / 2:30PM, DV.N - DoubleVerify Holdings Inc at Piper Sandler Growth Frontiers Conference

Question: Matt Farrell - Piper Sandler &Co. - Analyst : Got you. Okay. And maybe as a result of this cohort, one of the more debated topics over the last few quarters has just been activation revenue. How should we be thinking about the growth drivers of activation kind of over the shorter term, but also over the longer term, just given kind of the backdrop that we've seen because of this customer --?

Question: Matt Farrell - Piper Sandler &Co. - Analyst : Got you. And let's talk a little bit about the moat opportunity. It's kind of a unique moment in the industry. How has DV positioned itself out of the gate to win customers from Moat initially? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 10, 2024 / 2:30PM, DV.N - DoubleVerify Holdings Inc at Piper Sandler Growth Frontiers Conference

Question: Matt Farrell - Piper Sandler &Co. - Analyst : And because Moat's product that was more basic in nature, is that -- like the upsell and the cross-sell opportunity, is that potentially larger for these clients that you've won because of the suite that you have in this week that Moat didn't have? And I guess how should we think about the cadence, right? You mentioned, hey, we're just going to walk in the door at X, but when should Y really think should start to decline?

Question: Matt Farrell - Piper Sandler &Co. - Analyst : Got you. And once the dust settles here after the period of, I don't want to say chaos, but opportunity, how should investors be thinking about the competitive landscape of the industry? And does anything materially change now that Moat isn't a part of the landscape?

Question: Matt Farrell - Piper Sandler &Co. - Analyst : And maybe just let's talk about AI real quickly. It's the topic of ad spend, it's the topic of the day for what seems like (multiple speakers). What role does AI play in your business and why is it a differentiator for the company?

Question: Matt Farrell - Piper Sandler &Co. - Analyst : And let's maybe touch on the financials here with the last couple of minutes. You guys have been a double-digit grower with 30% EBITDA margins for some time now. And I guess this is a bit of a high-class problem. But I guess, how should we be thinking about the trade-off between growth and profitability as we move forward? And then maybe a follow up on some dashboard.

Question: Matt Farrell - Piper Sandler &Co. - Analyst : And then with kind of the strong cash generation that you have, a clean balance sheet, you had the buyback recently. How should we be thinking about the use of cash moving forward?

Question: Matt Farrell - Piper Sandler &Co. - Analyst : Awesome. That's all the time we have, Nicola. Thank you so much. Thank you, everyone, for joining us.