DoubleVerify Holdings Inc Q3 2025 Earnings Call Transcript

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

Question: Maria Ripps - Canaccord Genuity Corp - Analyst : First, can you maybe help us sort of think through some of the growth drivers for next year? And I know you sort of touched on this a little bit in your prepared remarks, but it would be great to get a little bit more -- sort of get a little bit more detail around some of the drivers there. And then if the business performed similarly to this year, let's say, mid-tens growth hypothetically, how should we think about sort of incremental profitability and the cash flow through next year? And then I have a quick follow-up.

Question: Maria Ripps - Canaccord Genuity Corp - Analyst : That's very helpful. And then you mentioned several streaming TV sorts of product launches later this quarter. Could you maybe share a little bit more color around that sort of the expected adoption rate? And any thoughts on that monetization?

Question: Mark Murphy - JPMorgan Chase & Co - Analyst : I'd be interested if you could shed more light on the softness that you have mentioned in retail. And for instance, is it concentrated within a handful of customers? Is it something that is broader based? And then do you sense -- like would you connect the dots between the low-end consumer pressures that are becoming evident in the US economy and what you're seeing? Or is it -- are you seeing it kind of up into the high end as well?

Question: Mark Murphy - JPMorgan Chase & Co - Analyst : Okay. And then for Mark, how do you think about trying to project the timing for OpenAI, Perplexity, Anthropic, et cetera, to begin their own advertising at scale? And how aggressively do you think your customers might push them to make sure that Double Verify is showing up in those venues?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Can I stay on the direction that Mark started. Nicola, if you think about the -- you talked about the base case for next year, the 10%, which is kind of what we're seeing this year. Can you speak to like what are the assumptions around economy, et cetera, that we're doing here? It's like stable? Is it worth maybe putting an extra buffer in? Can you speak to that, your thinking there? And then, Mark, one for you. Obviously, your industry looks like it's changing because Moat is gone, now one of your other public competitors might be going. How do you think about the impact to the industry overall?

Question: Youssef Squali - Suntrust Robinson Humphrey Capital Markets - Analyst : So maybe one quick follow-up to this 10% base case growth for 2026. Nicola, is the assumption that (inaudible) continues to be pretty soft the way it is -- it has been? Or do you expect that to worsen or to maybe improve? And then maybe this could actually be related, maybe not. But Kenvue is a top customer. It's being acquired by Kimberly-Clark. One is Kimberly-Clark the current customer? Is Kenvue still spending at the same level as before? Just kind of what's going on in that?

Question: Laura Martin - Needham & Company LLC - Analyst : My first one is on client base. I love all the new products. Do you -- Mark, I think Wall Street is really excited about SMBs coming into the CTV space and sort of expanding the TAM. My question is your client base has historically been very large. Do you see any of these new products as maybe potentially garnering new and maybe lower -- coming down the size, scale of products? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. NOVEMBER 07, 2025 / 1:00PM, DV.N - Q3 2025 DoubleVerify Holdings Inc Earnings Call And then my second one is on almost every ad tech company we cover, we've asked them this question about traffic. Are they seeing diminution in traffic? And they're all saying, No, no, no, we're not seeing any demise of traffic even in spite of Google doing answers. And then when you ask them, but is some of that bots, they say, Oh no, no, we have verification for impressions, and we know which are humans or which are bots. I assumed that was you doing that. But are there new competitors doing that since it sounds like you're just now introducing Gen AI verification solutions.

Question: Matthew Condon - Citizens JMP Securities LLC - Analyst : My first one, Mark, just as we sit here today and you've had discussions with advertisers just around Meta pre-bid and you're thinking about 2026. Just how are those conversations developing? And how are you thinking about that product scaling in 2026? And then similarly, with just DV Authentic AdVantage, it seems like it's off to a very good start. Can you just talk about discussions there and also just scaling throughout 2026?

Question: Justin Patterson - KeyBanc Capital Markets Inc - Analyst : Great. I was hoping you could expand on international some more. If we go back to the Innovation Day, I know some of your go-to-market changes were designed to just simplify the selling process over there. So I would love to hear about just how that's trending in more detail and what actions you might take to make international more material in 2026? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. NOVEMBER 07, 2025 / 1:00PM, DV.N - Q3 2025 DoubleVerify Holdings Inc Earnings Call

Question: Matthew Swanson - RBC Capital Markets Inc - Analyst : Mark, you just mentioned briefly the different pricing models. And obviously, this has been a big year for innovation. There's a lot more product. We've come up also with some kind of bundling strategies. Could you just talk about how you're thinking about go-to-market and just making sure that your sales force is -- maybe it's more of a shift to like value-based selling of -- solving some of these problems that are arising for your customers. But just how you're thinking about pitching the value proposition as you expand what you're offering?

Question: Andrew Marok - Raymond James - Analyst : So we heard your commentary around the EBITDA margin outlined. But maybe within that, how do you think about potential flex in places like product development or tech costs from having to invest in AI solutions like agentic and SlopStopper as that space and the potential AI threat landscape evolves at a rapid pace? And then maybe for Mark, just how you're setting up the teams to respond to AI landscape innovations in as nimble a fashion as possible.

Question: Arjun Bhatia - William Blair Capital Partners - Analyst : Perfect. I had two quick questions. First, let me just go back to the retail sort of weakness. Nicola, is there any way to just quantify how big of a headwind that was in Q3? And then how you see that kind of factoring into your guidance in Q4 as well, given it's obviously the strong holiday season. And then for Mark, I'm curious just as you think about the Meta ramp, you have 56 advertisers already. When you think about growth there, how much of it is going to come from the existing kind of advertisers scaling their usage and volume versus kind of adding new advertisers? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. NOVEMBER 07, 2025 / 1:00PM, DV.N - Q3 2025 DoubleVerify Holdings Inc Earnings Call

Question: Timothy Nollen - SSR LLC - Analyst : I've got -- I'd like to come back to the topic of CTV again, if that's okay. You had a press release several days ago about your work with Roku. You mentioned Netflix on the call. My question really is how penetrated are you across the CTV platforms? How difficult is it to provide coverage across both the open and the walled garden CTV services? And then just kind of stepping out a bit more broadly, what is your view of the role that DV can play in TV measurement in general, given everyone complains about how bad the measurement is or how inconsistent it is or how much is changing? Just what is the role that DV can play across this evolving landscape?

Question: Timothy Nollen - SSR LLC - Analyst : That's great. I meant measurement in a very broad sense, which I think you did address in your answer.

Question: Omar Dessouky - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Earlier this fall, President Trump ordered his health department to look into direct-to-consumer pharmaceutical advertising. And I was wondering if you had any update on whether that's potentially affecting some of your pharmaceutical clients, whether it affects programmatic advertising at all, if you saw any effect in the quarter and if it's contemplated in your fourth quarter guide?