DoubleVerify Holdings Inc at Robert W Baird Global Consumer, Technology & Services Conference Transcript

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

Question: Vikram Kesavbhotla - Robert W. Baird & Co. - Analyst : Maybe just to start off for the benefit of those who are not as familiar with the company, you could start off just giving us a brief overview of DoubleVerify and we'll pick out some topics from there yet.

Question: Vikram Kesavbhotla - Robert W. Baird & Co. - Analyst : Awesome. Allright. So I wanted to start off kind of with some higher-level topics as really the industry and your company. Maybe first, just talking about the state of the macro environment for additional advertising, how would you characterize the health of the backdrop right now and what you've been observing so far this year? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 04, 2024 / 4:15PM, DV.N - DoubleVerify Holdings Inc at Robert W Baird Global Consumer, Technology & Services Conference

Question: Vikram Kesavbhotla - Robert W. Baird & Co. - Analyst : And one of the things you talked about we've been talking about for a while but certainly on most recent call, it's kind of one of the trends you're observing. Is this shift towards Social and CTV within the business? I'm curious if you can talk about what do you think is driving that trend to become kind of more prominent within the industry, but within your company as well?

Question: Vikram Kesavbhotla - Robert W. Baird & Co. - Analyst : And so when you think about that broader trend towards those channels? What does that mean for DoubleVerify in terms of the impact to your company?

Question: Vikram Kesavbhotla - Robert W. Baird & Co. - Analyst : Yeah, you touched on there, kind of the opportunity in front of you from a volume perspective. I guess maybe we can talk about monetization as well. So how does your monetization on social and CTV compare to other channels today? And how are you expecting that to evolve going forward?

Question: Vikram Kesavbhotla - Robert W. Baird & Co. - Analyst : Okay. Maybe shifting gears to another topic. Nicholas, on behalf of government for you. So if we go back to the most recent print, your company lowered its guidance for the year. One of the big factors you called out was some change in spending patterns among certain of your large customers, particularly within the CPG and retail verticals. You've now had some more time has passed, be great to get your perspective on what's happening with that group of customers and what's kind of driven that volatility this year.

Question: Vikram Kesavbhotla - Robert W. Baird & Co. - Analyst : And just to clarify couple of things you brought up there. I guess as far as the guidance as it stands today, what is it now assume for that kind of specific customers --?

Question: Vikram Kesavbhotla - Robert W. Baird & Co. - Analyst : Okay. I think you addressed this before, but maybe just to double-click on it. Are you seeing any signs of that may be emerging and other customers so far or is it still been specific to that.

Question: Vikram Kesavbhotla - Robert W. Baird & Co. - Analyst : Okay, great. Maybe kind of shifting gears a little bit as well. So our ABS has been a big product for your company, one of the fastest growing ones for a while. I want to talk a little bit about the trends that you're seeing there. So maybe kind of frame this question. So first quarter, you saw some deceleration in that product. Maybe if you can talk about kind of what drove the deceleration but also kind of how you expect growth to trend from here?

Question: Vikram Kesavbhotla - Robert W. Baird & Co. - Analyst : Maybe your point about kind of the strength you're seeing with new customers, that might be a good segue into one of the other higher-level questions I want to talk about, which is , if a customer is not using measurement solutions on the measurement side or on the activation side, what are they typically using right now? And what are the biggest factors that get them to sign on with Verify?

Question: Vikram Kesavbhotla - Robert W. Baird & Co. - Analyst : So I want to continue on that path and some other things from a product perspective and some of the more recent changes. So maybe first on meta mentioned earlier this year you launched brand safety and stability solutions there on feeds and reels. Curious if you can talk about just what the initial feedback has been actually that product being available in that and how it's been performing so far?

Question: Vikram Kesavbhotla - Robert W. Baird & Co. - Analyst : And then maybe if we could also talk about Scibids which you acquired last year, maybe if you can just talk about the key capabilities that that now brings several verify and what's been resonating the most and the early feedback from customers.

Question: Vikram Kesavbhotla - Robert W. Baird & Co. - Analyst : Okay, maybe to shift gears a little bit, Nicola, a couple of questions for you in terms of the numbers and what's been going on this year. So maybe first, just looking going back to the guidance for fiscal '24, the range implies some revenue acceleration in the back half of this year. Could you talk us through kind of the main drivers that are going to support that acceleration in the back half of '24? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 04, 2024 / 4:15PM, DV.N - DoubleVerify Holdings Inc at Robert W Baird Global Consumer, Technology & Services Conference

Question: Vikram Kesavbhotla - Robert W. Baird & Co. - Analyst : And then in terms of and you addressed some of this before when we talked about large customers, but in terms of kind of the visibility into the year at this point and how you feel like you've accounted for some of the drivers of volatility so far this year, like what kind of gives you confidence in the range as we look at the balance of the year?

Question: Vikram Kesavbhotla - Robert W. Baird & Co. - Analyst : Okay. And maybe if we can touch on pricing a little bit as well. It's been a topic for investors so far this year. Curious what you're seeing in the pricing environment. I think on most recent conference call, you said it's been stable on a per product basis. Is that still the case today? And what have been kind of your observations there?

Question: Vikram Kesavbhotla - Robert W. Baird & Co. - Analyst : Yeah, as you look at the portfolio, and Mark, you touched on this a little bit in the CTD kind of description, but where are the places where you think there's the most pricing power that's still kind of remains or opportunity for pricing to be a tailwind for your company?

Question: Vikram Kesavbhotla - Robert W. Baird & Co. - Analyst : Yeah, okay. So we talked about some of the factors influencing this year, kind of the first half, second half dynamic. Just as we look beyond '24, kind of how do you help investors frame the long-term kind of growth profile for DoubleVerify? And then also, if you could talk about the margins as well, how should we think about the framework for this business?

Question: Vikram Kesavbhotla - Robert W. Baird & Co. - Analyst : Okay, maybe kind of staying along that thread of profitability. Just can you talk about capital allocation for this business? How do you think about your priorities there? And I know you just recently announced the share repurchase authorization, where does that rank between kind of your uses of cash today?

Question: Vikram Kesavbhotla - Robert W. Baird & Co. - Analyst : Yeah, okay. We're coming up shortly on timing. I wanted to leave a little bit at the end just to give you all a chance to address, is there an aspect of the DoubleVerify story? Do you think is underappreciated by the investment community or maybe said differently? Is there something in particular that you want to highlight here, just as you kind of think about final messages for the audience?

Question: Vikram Kesavbhotla - Robert W. Baird & Co. - Analyst : All right, it's probably a good place for us to wrap up. Mark and Nicola, thank you both for joining us today and thanks for those you in the room. If you have any follow-up questions, feel free to reach out and it's a good place for us to end it there, thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 04, 2024 / 4:15PM, DV.N - DoubleVerify Holdings Inc at Robert W Baird Global Consumer, Technology & Services Conference