DoubleVerify Holdings Inc Q3 2024 Earnings Call Transcript

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

Question: Youssef Squali - Truist Securities - Analyst : Great. Thank you guys for taking the questions. I have two. So can you maybe expand a little more on the more gradual ramp in measurement and in Q3 and Q4. I think in your prepared remarks, Nicola, I think you said within measurement social was up 21% international was up 16%. Overall measurement is up 14%. So something did not grow as nearly as you guys had expected. So maybe you can flesh that out a little bit for us and then related to that and to the upcoming pre avoidance products for Meta. Can you share any additional insight that you guys have in terms of maybe timing for testing? I know your competitor is already I think scheduled to be testing it by the end of the year. Especially that you said that kind of the prospects for 2025 will be dependent on how quickly you guys can roll that out. So any visibility do you guys have that you can help us or you can share on that topic? Thank you.

Question: Youssef Squali - Truist Securities - Analyst : Thank you both.

Question: Matt Swanson - RBC Capital Markets - Analyst : Yeah. Thank you guys so much for taking my questions. Maybe the first one kind of following up on Frank's line of question with Oracle being kind of the low cost player in the market. How does that affect kind of long term pricing dynamics not having to compete with a floor in the market anymore?

Question: Matt Swanson - RBC Capital Markets - Analyst : Yeah, that's really helpful Mark and then Nicola really impressive just the EBITDA strength both in the quarter and the guide, especially with some of the revenue headwinds. A lot of interesting things though too, with the social and the market share wins. So as revenue hopefully starts to re accelerate at some point. How should we think about the durability of the adjusted EBITDA margin expansion?

Question: Matt Swanson - RBC Capital Markets - Analyst : 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. NOVEMBER 06, 2024 / 9:30PM, DV.N - Q3 2024 DoubleVerify Holdings Inc Earnings Call

Question: Maria Ripps - Canaccord Genuity - Analyst : Great. Thanks so much for taking my questions. I wanted to follow up on the launch of your social activation features on that up. Can you maybe talk about how you would -- excuse me, how you would expect that offering to scale relative to how it has been scaling on the open web? And I guess what are some differences and similarities there? And then secondly, sort of recognizing that your visibility into this may be somewhat limited. Is there any additional color that you can share sort of on the timing for launching these features across more platforms?

Question: Maria Ripps - Canaccord Genuity - Analyst : Got it. Thank you so much for the color.

Question: Andrew Boone - JMP Securities - Analyst : Thanks so much for taking questions. Mark, I wanted to ask on a bigger picture question we talked earlier about the transition to performance. Can you step back and say, hey, what is double verify missing or what else do you guys need to do to execute on the broader performance opportunity? And then another bigger picture question as I think about the evolution of digital advertising that's kind of taken place over the last few years really coming out of COVID. It's really been the shift to video. Is that what you guys are seeing? Is there any headwinds or tailwinds as we think about the evolution of digital advertising formats that you guys face? And how do we think about that transition of video impacting MTM and MTF for DoubleVerify. Thanks so much.

Question: Andrew Boone - JMP Securities - Analyst : Thank you.

Question: Justin Patterson - Keybanc Capital Markets - Analyst : Great. Thanks too. If I can stick with Scibids, so would love to hear how that this is just trending versus your expectations. I know you said you're well on track for the long term goal, but love a little more detail of just how that's been contributing year-to-date with customers. And then secondly, I just wanted to go back to margins 33%, healthy performance for the full year here. I know you historically like to operate that closer to 30%. So curious if that's just more indicative of our performance this year and we should expect some incremental investment going into 2025 or if that's now kind of you showing a little more margin going forward. Thank you.

Question: Dave Lustberg - BMO Capital Markets - Analyst : Thank you. This is Dave Lustberg on for Brian. I wanted to ask about CTV. I believe you guys said CTV, measurement volume was up 90% year over year, which marks a pretty strong acceleration from the 45% and 55% growth 1Q and 2Q. Can you talk a little bit about the drivers behind that? Is it primarily low CPMs across CTV? If you could kind of pass out the any details that would be helpful? Thank you.

Question: Dave Lustberg - BMO Capital Markets - Analyst : Got it. That's helpful. And maybe it's just as a quick second question on the Oracle RFP win rate of 70%. Sounds like you guys are winning, more than your fair share there. Can you just talk a little bit about, you're having to be a little bit more competitive on these contracts or you really just winning on performance? Thanks.

Question: Mark Kelley - Stifel - Analyst : Great. Thank you very much. I wanted to stick with the Oracle mode topic really quick. Can you maybe frame for us, they had some pretty large sophisticated clients, kind of surprising to hear that they're using only the basic product. I guess is it a case where they were using mode for the basic stuff and then kind of piecemealing some of the other, maybe more advanced technologies from a kind of a point solution competitor of yours. And that's the kind of business that, you're going to go after -- they've been onboarded or is it that's like totally Greenfield, things like attention and other products like that. That's my first one that I've got a separate question after.

Question: Mark Kelley - Stifel - Analyst : Okay. Alright, perfect. That's great. And the second one just on the Meta, a pretty good opportunity. And I guess how do we think about the dynamics of the ramp after that product is -- goes GA it sounds like maybe it'll be a quicker adoption curve relative to what we saw on the brand safety and suitability stuff given the comments you made about, some folks waiting for that to be available but would love to get any more color there if possible. Thank you.

Question: Mark Kelley - Stifel - Analyst : Okay. Thank you. Mark. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 06, 2024 / 9:30PM, DV.N - Q3 2024 DoubleVerify Holdings Inc Earnings Call

Question: Arti Vula - JPMorgan Chase & Co. - Analyst : Hey, this is Arti on for Mark. Thanks for taking the question. You mentioned during the call that there's some uncertainty around how quickly traditional ad spending rebounds after the election. Could you just double click on that and maybe explain why that dynamic might be that persist have the election is over? Thanks.

Question: Arti Vula - JPMorgan Chase & Co. - Analyst : That's great context. Thank you.