Revenue Increased 44% Year-over Year to $76.5 Million, driven by Growth in Programmatic, CTV, Social and International Revenue
Advertiser Programmatic Revenue Increased 57% to $37.9 Million
Full-Year 2021 Revenue Outlook Raised
DoubleVerify (“DV”) (NYSE: DV), a leading software platform for digital media measurement, data and analytics, today announced financial results for the second quarter ended June 30, 2021.
“We delivered an outstanding second quarter fueled by record Programmatic Revenue as advertisers adopted our industry-leading Authentic Brand Safety solution on Google’s DV360 and additional programmatic buying platforms,” said Mark Zagorski, CEO of DoubleVerify. “Product innovation success, industry-leading accreditations in fast-growing sectors such as CTV and Social, and continued investments in enhancing our international footprint have yielded new enterprise client wins and meaningful expansion opportunities within our existing blue-chip customer base. Our ongoing product and market leadership combined with digital advertising spend tailwinds, make us optimistic about our growth prospects for the rest of the year and beyond.”
Second Quarter 2021 Financial Highlights:
(All comparisons are to the second quarter of 2020)
- Total revenue of $76.5 million, an increase of 44%.
-
Advertiser Direct revenue of $31.7 million, an increase of 34%.
- Media Transactions Measured (“MTM”) for Social increased by 100% and for CTV increased by 89%.
- APAC revenue increased by 73%.
- EMEA revenue increased by 62%.
- Advertiser Programmatic revenue of $37.9 million, an increase of 57%.
- Supply-Side revenue of $7.0 million, an increase of 35%.
- Net loss of $12.6 million due to $18.9 million of one-time IPO transaction costs, and a decrease in diluted earnings per share to $(0.08).
- Adjusted EBITDA of $21.2 million, an increase of 35% while the Company continues to invest in global operations, including product and engineering, to continue to drive long-term growth.
Second Quarter and Recent 2021 Business Highlights:
- Grew premium-priced Authentic Brand Safety revenues by 112% year-over-year in the second quarter driven by wide adoption on Google’s DV360 and a second-quarter launch on other programmatic buying platforms including Adform, Quantcast and Pulsepoint.
- Doubled the number of weekly advertisers using DV Custom Contextual™ in the second quarter compared to the first quarter of 2021 as our privacy-safe, cookie-free targeting solution was made available to programmatic advertisers through leading DSPs, including The Trade Desk, MediaMath, Adform, Amazon, Verizon Media and Xandr.
- Won global business at new enterprise clients including Diageo, BMW, Philip Morris International, Grupo Bimbo, and Bumble.
- Won new enterprise clients in the Americas including Progressive, Target, Zaxby’s, CarGurus and Truist.
- Launched an app-level CTV brand suitability solution offering wide coverage across all CTV platforms, apps and devices.
- Extended Media Rating Council (MRC) accreditation of CTV capabilities to include DV Video Filtering, a component of DV’s Video Complete CTV Solution, in addition to Fully-On Screen metrics and CTV IVT (invalid traffic) accreditation.
- Launched TikTok open beta in 14 markets, including viewability and fraud measurement and protection.
- First in the industry to be awarded three privacy certification seals from TrustArc, aligning DV’s data protection mechanisms with core international data protection principles and standards.
“We achieved 44% total revenue growth and continued to achieve over 95% gross revenue retention in the second quarter. Our solid second quarter EBITDA margins of 28% reflect ongoing strategic investments that will help accelerate our product development roadmap and enhance our expansion in international markets, where we are steadily growing our market share,” said Nicola Allais, CFO of DoubleVerify. “Our revenue growth expectations for the second half of the year are driven by a positive outlook for the fourth quarter, which tends to benefit from seasonally higher spending on advertising campaigns. In addition to delivering performance that exhibits the high growth and high profitability ‘rule of 60’, our debt-free balance sheet and quarter-end cash position of $330 million dollars provides us the financial flexibility to elevate our long-term growth profile and capture a greater share of a large and growing market opportunity.”
Third Quarter and Full-Year 2021 Guidance:
DoubleVerify anticipates Revenue and Adjusted EBITDA to be in the following ranges:
Third quarter 2021:
- Revenue of $81 to $83 million, a year-over-year increase of 34% at the midpoint.
- Adjusted EBITDA in the range of $22 to $24 million, a year-over-year improvement of 59% at the midpoint.
Full year 2021:
- Revenue of $325 to $330 million, a year-over-year increase of 34% at the midpoint, higher than the previous guidance range of $322 to $326 million provided on May 25, 2021.
- Adjusted EBITDA in the range of $103 to $105 million, a year-over-year increase of 42% at the midpoint, unchanged from the previous guidance range provided on May 25, 2021.
With respect to the Company’s expectations under "Third Quarter and Full Year 2021 Guidance" above, the Company has not reconciled the non-GAAP measure Adjusted EBITDA to the GAAP measure net income (loss) in this press release because the Company does not provide guidance for stock-based compensation expense, depreciation and amortization expense, acquisition-related costs, interest income, and income taxes on a consistent basis as the Company is unable to quantify these amounts without unreasonable efforts, which would be required to include a reconciliation of Adjusted EBITDA to GAAP net income (loss). In addition, the Company believes such a reconciliation would imply a degree of precision that could be confusing or misleading to investors.
Conference Call and Webcast Information
DoubleVerify will host a conference call and live webcast to discuss its second quarter 2021 financial results at 4:30 p.m. Eastern Time today, July 29, 2021. To access the conference call, dial (877) 841-2987 for the U.S. or Canada, or (215) 268-9878 for international callers and provide conference ID 13721124. The webcast will be available live on the Investors section of the Company’s website at https://ir.doubleverify.com/. In addition, an archived webcast will be available approximately two hours after the conclusion of the live event.
Key Business Terms
Advertiser Direct revenue is generated from the verification and measurement of advertising impressions that are directly purchased on digital media properties, including publishers and social media platforms.
Advertiser Programmatic revenue is generated from the evaluation, verification and measurement of advertising impressions purchased through programmatic demand-side platforms.
Supply-Side revenue is generated from platforms and publisher partners who use DoubleVerify’s data analytics to evaluate, verify and measure their advertising inventory.
Gross Revenue Retention Rate is the total prior period revenue earned from advertiser customers, less the portion of prior period revenue attributable to lost advertiser customers, divided by the total prior period revenue from advertiser customers.
Media Transactions Measured (MTM) is the volume of media transactions that DoubleVerify’s software platform measures.
Measured Transaction Fee (MTF) is the fixed fee DoubleVerify charges per Media Transaction Measured.
DoubleVerify Holdings, Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
|||||||
|
|
|
|
|
|
|
|
|
|
As of |
|
As of |
|||
(in thousands, except per share data) |
|
June 30, 2021 |
|
December 31, 2020 |
|||
Assets: |
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
330,355 |
|
$ |
33,354 |
|
Trade receivables, net of allowances for doubtful accounts of $6,889 and $7,049 as of June 30, 2021 and December 31, 2020 respectively |
|
|
85,555 |
|
|
94,677 |
|
Prepaid expenses and other current assets |
|
|
14,106 |
|
|
13,904 |
|
Total current assets |
|
|
430,016 |
|
|
141,935 |
|
Property, plant and equipment, net |
|
|
17,572 |
|
|
18,107 |
|
Goodwill |
|
|
227,349 |
|
|
227,349 |
|
Intangible assets, net |
|
|
112,780 |
|
|
121,710 |
|
Deferred tax assets |
|
|
82 |
|
|
82 |
|
Other non-current assets |
|
|
2,303 |
|
|
2,151 |
|
Total assets |
|
$ |
790,102 |
|
$ |
511,334 |
|
Liabilities and Stockholders' Equity: |
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
Trade payables |
|
$ |
4,122 |
|
$ |
3,495 |
|
Accrued expense |
|
|
25,460 |
|
|
25,419 |
|
Income tax liabilities |
|
|
670 |
|
|
1,277 |
|
Current portion of capital lease obligations |
|
|
2,021 |
|
|
1,515 |
|
Contingent considerations current |
|
|
1,717 |
|
|
1,198 |
|
Other current liabilities |
|
|
2,101 |
|
|
1,116 |
|
Total current liabilities |
|
|
36,091 |
|
|
34,020 |
|
Long-term debt |
|
|
— |
|
|
22,000 |
|
Capital lease obligations |
|
|
3,618 |
|
|
3,447 |
|
Deferred tax liabilities |
|
|
28,243 |
|
|
31,418 |
|
Other non-current liabilities |
|
|
2,734 |
|
|
3,292 |
|
Contingent considerations non-current |
|
|
— |
|
|
462 |
|
Total liabilities |
|
$ |
70,686 |
|
$ |
94,639 |
|
Commitments and contingencies (Note 13) |
|
|
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
|
|
Common stock, $0.001 par value, 1,000,000 shares authorized, 157,768 shares issued and outstanding as of June 30, 2021; 700,000 shares authorized, 140,222 shares issued and 125,074 shares outstanding as of December 31, 2020 |
|
|
158 |
|
|
140 |
|
Preferred stock, $0.01 par value, 100,000 shares authorized and zero shares issued and outstanding as of June 30, 2021 and 61,006 shares authorized, issued, and outstanding as of December 31, 2020. Liquidation preference: $350,000 as of December 31, 2020 |
|
|
— |
|
|
610 |
|
Additional paid-in capital |
|
|
670,674 |
|
|
620,679 |
|
Treasury stock, at cost, zero shares and 15,146 shares as of June 30, 2021 and December 31, 2020, respectively |
|
|
— |
|
|
(260,686 |
) |
Retained earnings |
|
|
48,017 |
|
|
54,941 |
|
Accumulated other comprehensive income, net of income taxes |
|
|
567 |
|
|
1,011 |
|
Total stockholders’ equity |
|
|
719,416 |
|
|
416,695 |
|
Total liabilities and stockholders' equity |
|
$ |
790,102 |
|
$ |
511,334 |
|
DoubleVerify Holdings, Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED) |
|||||||||||||||
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|
|
|
|
|
|
|||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|||||||||||
(in thousands, except per share data) |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||||
Revenue |
|
$ |
76,524 |
|
|
$ |
53,020 |
|
$ |
144,110 |
|
|
$ |
104,239 |
|
Cost of revenue (exclusive of depreciation and amortization shown separately below) |
|
|
12,291 |
|
|
|
7,655 |
|
|
22,494 |
|
|
|
14,965 |
|
Product development |
|
|
15,120 |
|
|
|
10,906 |
|
|
29,299 |
|
|
|
21,237 |
|
Sales, marketing and customer support |
|
|
19,580 |
|
|
|
12,833 |
|
|
35,114 |
|
|
|
25,152 |
|
General and administrative |
|
|
32,017 |
|
|
|
8,262 |
|
|
43,852 |
|
|
|
18,958 |
|
Depreciation and amortization |
|
|
7,440 |
|
|
|
6,146 |
|
|
14,497 |
|
|
|
12,080 |
|
(Loss) income from operations |
|
|
(9,924 |
) |
|
|
7,218 |
|
|
(1,146 |
) |
|
|
11,847 |
|
Interest expense |
|
|
297 |
|
|
|
936 |
|
|
687 |
|
|
|
2,100 |
|
Other expense (income), net |
|
|
49 |
|
|
|
198 |
|
|
— |
|
|
|
(122 |
) |
(Loss) income before income taxes |
|
|
(10,270 |
) |
|
|
6,084 |
|
|
(1,833 |
) |
|
|
9,869 |
|
Income tax expense |
|
|
2,298 |
|
|
|
2,006 |
|
|
5,091 |
|
|
|
3,351 |
|
Net (loss) income |
|
$ |
(12,568 |
) |
|
$ |
4,078 |
|
$ |
(6,924 |
) |
|
$ |
6,518 |
|
(Loss) earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Basic |
|
$ |
(0.08 |
) |
|
$ |
0.03 |
|
$ |
(0.05 |
) |
|
$ |
0.05 |
|
Diluted |
|
$ |
(0.08 |
) |
|
$ |
0.03 |
|
$ |
(0.05 |
) |
|
$ |
0.04 |
|
Weighted-average common stock outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Basic |
|
|
149,596 |
|
|
|
139,756 |
|
|
137,355 |
|
|
|
139,748 |
|
Diluted |
|
|
149,596 |
|
|
|
146,541 |
|
|
137,355 |
|
|
|
146,927 |
|
Comprehensive (loss) income: |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Net (loss) income |
|
$ |
(12,568 |
) |
|
$ |
4,078 |
|
$ |
(6,924 |
) |
|
$ |
6,518 |
|
Other comprehensive (loss) income: |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Foreign currency cumulative translation adjustment |
|
|
355 |
|
|
|
231 |
|
|
(444 |
) |
|
|
78 |
|
Total comprehensive (loss) income |
|
$ |
(12,213 |
) |
|
$ |
4,309 |
|
$ |
(7,368 |
) |
|
$ |
6,596 |
|
DoubleVerify Holdings, Inc. CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED) |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional |
|
|
|
|
Income (Loss) |
|
Total |
|||
|
|
Common Stock |
|
Preferred Stock |
|
Treasury Stock |
|
Paid-in |
|
Retained |
|
Net of |
|
Stockholders’ |
|||||||||||||
(in thousands) |
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Capital |
|
Earnings |
|
Income Taxes |
|
Equity |
|||||||
Balance as of January 1, 2021 |
|
140,222 |
|
$ |
140 |
|
61,006 |
|
$ |
610 |
|
15,146 |
|
$ |
(260,686) |
|
$ |
620,679 |
|
$ |
54,941 |
|
$ |
1,011 |
|
$ |
416,695 |
Foreign currency translation adjustment |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(799) |
|
|
(799) |
Stock-based compensation expense |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
2,538 |
|
|
— |
|
|
— |
|
|
2,538 |
Common stock issued upon exercise of stock options |
|
180 |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
538 |
|
|
— |
|
|
— |
|
|
538 |
Net income |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
5,644 |
|
|
— |
|
|
5,644 |
Balance as of March 31, 2021 |
|
140,402 |
|
$ |
140 |
|
61,006 |
|
$ |
610 |
|
15,146 |
|
$ |
(260,686) |
|
$ |
623,755 |
|
$ |
60,585 |
|
$ |
212 |
|
$ |
424,616 |
Foreign currency translation adjustment |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
355 |
|
|
355 |
Stock-based compensation expense |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
4,714 |
|
|
— |
|
|
— |
|
|
4,714 |
Common stock issued upon exercise of stock options |
|
871 |
|
|
2 |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
2,907 |
|
|
— |
|
|
— |
|
|
2,909 |
RSU vested |
|
217 |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
Conversion of Series A preferred stock to common stock in connection with initial public offering |
|
5,190 |
|
|
5 |
|
(61,006) |
|
|
(610) |
|
(15,146) |
|
|
260,686 |
|
|
(260,081) |
|
|
— |
|
|
— |
|
|
— |
Issuance of common stock in connection with initial public offering |
|
9,977 |
|
|
10 |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
269,380 |
|
|
— |
|
|
— |
|
|
269,390 |
Issuance of common stock in connection with the private placement concurrent with the initial public offering |
|
1,111 |
|
|
1 |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
29,999 |
|
|
— |
|
|
— |
|
|
30,000 |
Net loss |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
(12,568) |
|
|
— |
|
|
(12,568) |
Balance as of June 30, 2021 |
|
157,768 |
|
$ |
158 |
|
— |
|
$ |
— |
|
— |
|
$ |
— |
|
$ |
670,674 |
|
$ |
48,017 |
|
$ |
567 |
|
$ |
719,416 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of January 1, 2020 |
|
139,721 |
|
$ |
140 |
|
— |
|
$ |
— |
|
— |
|
$ |
— |
|
$ |
283,457 |
|
$ |
34,488 |
|
$ |
(67) |
|
$ |
318,018 |
Foreign currency translation adjustment |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(153) |
|
|
(153) |
Stock-based compensation expense |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
802 |
|
|
— |
|
|
— |
|
|
802 |
Common stock issued upon exercise of stock options |
|
32 |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
70 |
|
|
— |
|
|
— |
|
|
70 |
Net income |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
2,440 |
|
|
— |
|
|
2,440 |
Balance as of March 31, 2020 |
|
139,753 |
|
$ |
140 |
|
— |
|
$ |
— |
|
— |
|
$ |
— |
|
$ |
284,329 |
|
$ |
36,928 |
|
$ |
(220) |
|
$ |
321,177 |
Foreign currency translation adjustment |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
231 |
|
|
231 |
Stock-based compensation |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
1,140 |
|
|
— |
|
|
— |
|
|
1,140 |
Common stock issued upon exercise of stock options |
|
58 |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
51 |
|
|
— |
|
|
— |
|
|
51 |
Net income |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
4,078 |
|
|
— |
|
|
4,078 |
Balance as of June 30, 2020 |
|
139,811 |
|
$ |
140 |
|
— |
|
$ |
— |
|
— |
|
$ |
— |
|
$ |
285,520 |
|
$ |
41,006 |
|
$ |
11 |
|
$ |
326,677 |
DoubleVerify Holdings, Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
||||||||
|
|
|
|
|
|
|
||
|
|
Six Months Ended |
||||||
|
|
June 30, |
||||||
(in thousands) |
|
2021 |
|
2020 |
||||
Operating activities: |
|
|
|
|
|
|
||
Net (loss) income |
|
$ |
(6,924 |
) |
|
$ |
6,518 |
|
Adjustments to reconcile net (loss) income to net cash provided by operating activities |
|
|
|
|
|
|
||
Bad debt expense |
|
|
199 |
|
|
|
1,748 |
|
Depreciation and amortization expense |
|
|
14,496 |
|
|
|
12,080 |
|
Amortization of debt issuance costs |
|
|
147 |
|
|
|
142 |
|
Accretion of acquisition liabilities |
|
|
— |
|
|
|
36 |
|
Deferred taxes |
|
|
(3,175 |
) |
|
|
(3,096 |
) |
Stock-based compensation expense |
|
|
7,252 |
|
|
|
1,942 |
|
Interest expense (income) |
|
|
9 |
|
|
|
(42 |
) |
Change in fair value of contingent consideration |
|
|
57 |
|
|
|
(899 |
) |
Offering costs |
|
|
21,801 |
|
|
|
1,058 |
|
Other |
|
|
62 |
|
|
|
621 |
|
Changes in operating assets and liabilities net of effect of business combinations |
|
|
|
|
|
|
||
Trade receivables |
|
|
8,518 |
|
|
|
(47 |
) |
Prepaid expenses and other current assets |
|
|
(284 |
) |
|
|
855 |
|
Other non-current assets |
|
|
(299 |
) |
|
|
3 |
|
Trade payables and other liabilities |
|
|
541 |
|
|
|
2,057 |
|
Accrued expenses |
|
|
121 |
|
|
|
(2,978 |
) |
Other current liabilities |
|
|
827 |
|
|
|
(2,680 |
) |
Other non-current liabilities |
|
|
(1,120 |
) |
|
|
148 |
|
Net cash provided by operating activities |
|
|
42,228 |
|
|
|
17,466 |
|
Investing activities: |
|
|
|
|
|
|
||
Purchase of property, plant and equipment |
|
|
(3,513 |
) |
|
|
(4,562 |
) |
Net cash (used in) investing activities |
|
|
(3,513 |
) |
|
|
(4,562 |
) |
Financing activities: |
|
|
|
|
|
|
||
Payments of long-term debt |
|
|
(22,000 |
) |
|
|
(189 |
) |
Deferred payment related to Leiki acquisition |
|
|
— |
|
|
|
(2,033 |
) |
Deferred payment related to Zentrick acquisition |
|
|
(50 |
) |
|
|
(50 |
) |
Payment of contingent consideration related to Zentrick acquisition |
|
|
— |
|
|
|
(601 |
) |
Proceeds from common stock issued upon exercise of stock options |
|
|
3,447 |
|
|
|
121 |
|
Proceeds from issuance of common stock upon initial public offering |
|
|
269,390 |
|
|
|
— |
|
Proceeds from issuance of common stock in connection with concurrent private placement |
|
|
30,000 |
|
|
|
— |
|
Payments related to offering costs |
|
|
(21,708 |
) |
|
|
(1,107 |
) |
Capital lease payments |
|
|
(804 |
) |
|
|
(874 |
) |
Net cash provided by (used in) financing activities |
|
|
258,275 |
|
|
|
(4,733 |
) |
Effect of exchange rate changes on cash and cash equivalents and restricted cash |
|
|
13 |
|
|
|
(80 |
) |
Net increase in cash, cash equivalents, and restricted cash |
|
|
297,003 |
|
|
|
8,091 |
|
Cash, cash equivalents, and restricted cash - Beginning of period |
|
|
33,395 |
|
|
|
11,342 |
|
Cash, cash equivalents, and restricted cash - End of period |
|
$ |
330,398 |
|
|
$ |
19,433 |
|
|
|
|
|
|
|
|
||
Cash and cash equivalents |
|
|
330,355 |
|
|
|
19,038 |
|
Restricted cash (included in prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets) |
|
|
43 |
|
|
|
395 |
|
Total cash and cash equivalents and restricted cash |
|
$ |
330,398 |
|
|
$ |
19,433 |
|
Supplemental cash flow information: |
|
|
|
|
|
|
||
Cash paid for taxes |
|
|
3,305 |
|
|
|
7,777 |
|
Cash paid for interest |
|
|
525 |
|
|
|
1,654 |
|
Non-cash investing and financing activities: |
|
|
|
|
|
|
||
Conversion of Series A preferred stock to common stock in connection with the initial public offering |
|
|
610 |
|
|
|
— |
|
Treasury stock reissued upon the conversion of Series A preferred stock to common stock |
|
|
260,686 |
|
|
|
— |
|
Acquisition of equipment under capital lease |
|
|
1,518 |
|
|
|
973 |
|
Capital assets financed by accounts payable |
|
|
— |
|
|
|
76 |
|
Offering costs included in accounts payable and accrued expense |
|
|
89 |
|
|
|
100 |
|
Comparison of the Three and Six Months Ended June 30, 2021 and June 30, 2020 |
|||||||||||||||||||||||
Revenue |
|||||||||||||||||||||||
|
|||||||||||||||||||||||
|
Three Months Ended June 30, |
|
Change |
|
Change |
|
Six Months Ended June 30, |
|
Change |
|
Change |
||||||||||||
|
2021 |
|
2020 |
|
$ |
|
% |
|
2021 |
|
2020 |
|
$ |
|
% |
||||||||
|
(In Thousands) |
|
|
|
|
|
|
|
(In Thousands) |
|
|
|
|
|
|
||||||||
Revenue by customer type: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertiser - direct |
$ |
31,662 |
|
$ |
23,707 |
|
$ |
7,955 |
|
34 |
% |
|
$ |
59,203 |
|
$ |
45,894 |
|
$ |
13,309 |
|
29 |
% |
Advertiser - programmatic |
|
37,880 |
|
|
24,128 |
|
|
13,752 |
|
57 |
|
|
|
71,792 |
|
|
47,979 |
|
|
23,813 |
|
50 |
|
Supply-side customer |
|
6,982 |
|
|
5,185 |
|
|
1,797 |
|
35 |
|
|
|
13,115 |
|
|
10,366 |
|
|
2,749 |
|
27 |
|
Total revenue |
$ |
76,524 |
|
$ |
53,020 |
|
$ |
23,504 |
|
44 |
% |
|
$ |
144,110 |
|
$ |
104,239 |
|
$ |
39,871 |
|
38 |
% |
Adjusted EBITDA
In addition to our results determined in accordance with GAAP, we believe that certain non-GAAP financial measures, including Adjusted EBITDA and Adjusted EBITDA Margin, are useful in evaluating our business. A metric similar to Adjusted EBITDA is used in certain calculations under our New Revolving Credit Facility. We calculate Adjusted EBITDA Margin as Adjusted EBITDA divided by total revenue. The following table presents a reconciliation of Adjusted EBITDA, a non-GAAP financial measure, to the most directly comparable financial measure prepared in accordance with GAAP.
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
(In Thousands) |
|
(In Thousands) |
||||||||||||
Net (loss) income |
$ |
(12,568 |
) |
|
$ |
4,078 |
|
|
$ |
(6,924 |
) |
|
$ |
6,518 |
|
Net (loss) income margin |
|
(16 |
)% |
|
|
8 |
% |
|
|
(5 |
)% |
|
|
6 |
% |
Depreciation and amortization |
|
7,440 |
|
|
|
6,146 |
|
|
|
14,497 |
|
|
|
12,080 |
|
Stock-based compensation |
|
4,714 |
|
|
|
1,140 |
|
|
|
7,252 |
|
|
|
1,942 |
|
Interest expense |
|
297 |
|
|
|
936 |
|
|
|
687 |
|
|
|
2,100 |
|
Income tax expense |
|
2,298 |
|
|
|
2,006 |
|
|
|
5,091 |
|
|
|
3,351 |
|
M&A costs (a) |
|
67 |
|
|
|
8 |
|
|
|
49 |
|
|
|
223 |
|
Offering costs and IPO readiness costs (b) |
|
18,886 |
|
|
|
585 |
|
|
|
22,147 |
|
|
|
2,227 |
|
Other costs (c) |
|
— |
|
|
|
561 |
|
|
|
109 |
|
|
|
2,724 |
|
Other expense (income) (d) |
|
49 |
|
|
|
198 |
|
|
|
— |
|
|
|
(122 |
) |
Adjusted EBITDA |
$ |
21,183 |
|
|
$ |
15,658 |
|
|
$ |
42,908 |
|
|
$ |
31,043 |
|
Adjusted EBITDA margin |
|
28 |
% |
|
|
30 |
% |
|
|
30 |
% |
|
|
30 |
% |
(a) | M&A costs for the three and six months ended June 30, 2021 consist of reductions to deferred compensation liabilities related to acquisitions. M&A costs for the three and six months ended June 30, 2020 consist of third-party costs and deferred compensation costs related to acquisitions. |
|
(b) | Offering costs and IPO readiness costs for the three and six months ended June 30, 2021 and 2020 consist of third-party costs incurred in preparation and completion for our IPO. |
|
(c) | Other costs for the three and six months ended June 30, 2021 consist of reimbursements paid to Providence. For the three and six months ended June 30, 2020, other costs include reimbursements paid to Providence as well as costs related to the departure of our former Chief Executive Officer, and third-party costs incurred in response to investigating and remediating certain IT/cybersecurity matters that occurred in March 2020. |
|
(d) | Other expense (income) consists of interest income, change in fair value associated with contingent considerations, and the impact of foreign currency transaction gains and losses associated with monetary assets and liabilities. |
We use Adjusted EBITDA and Adjusted EBITDA Margin as measures of operational efficiency to understand and evaluate our core business operations. We believe that these non-GAAP financial measures are useful to investors for period to period comparisons of our core business and for understanding and evaluating trends in our operating results on a consistent basis by excluding items that we do not believe are indicative of our core operating performance.
These non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as substitutes for an analysis of our results as reported under GAAP. Some of the limitations of these measures are:
- they do not reflect changes in, or cash requirements for, our working capital needs;
- Adjusted EBITDA does not reflect our capital expenditures or future requirements for capital expenditures or contractual commitments;
- they do not reflect income tax expense or the cash requirements to pay income taxes;
- they do not reflect our interest expense or the cash requirements necessary to service interest or principal payments on our debt; and
- although depreciation and amortization are non-cash charges related mainly to intangible assets, certain assets being depreciated and amortized will have to be replaced in the future, and Adjusted EBITDA does not reflect any cash requirements for such replacements.
In addition, other companies in our industry may calculate these non-GAAP financial measures differently than we do, limiting their usefulness as a comparative measure. You should compensate for these limitations by relying primarily on our GAAP results and using the non-GAAP financial measures only supplementally.
Total stock-based compensation expense recorded in the Condensed Consolidated Statements of Operations and Comprehensive Income as follows:
|
|
Three Months Ended |
|
Six Months Ended |
||||||||
|
|
June 30, |
|
June 30, |
||||||||
(in thousands) |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||
Product development |
|
|
436 |
|
|
152 |
|
$ |
714 |
|
$ |
253 |
Sales, marketing and customer support |
|
|
1,696 |
|
|
392 |
|
|
2,320 |
|
|
564 |
General and administrative |
|
|
2,582 |
|
|
596 |
|
|
4,218 |
|
|
1,125 |
Total stock-based compensation |
|
$ |
4,714 |
|
$ |
1,140 |
|
$ |
7,252 |
|
$ |
1,942 |
Forward-Looking Statements
This press release includes “forward-looking statements,” including with respect to the initial public offering. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. We caution you that the forward-looking information presented in this press release is not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking information contained in this press release. In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “plan,” “seek,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe” or “continue” or the negative thereof or variations thereon or similar terminology. Any forward-looking information presented herein is made only as of the date of this press release, and we do not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.
About DoubleVerify
DoubleVerify is a leading software platform for digital media measurement and analytics. Our mission is to make the digital advertising ecosystem stronger, safer and more secure, thereby preserving the fair value exchange between buyers and sellers of digital media. Hundreds of Fortune 500 advertisers employ our unbiased data and analytics to drive campaign quality and effectiveness, and to maximize return on their digital advertising investments – globally.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210729006055/en/
Contacts
Media Contact
Chris Harihar
Crenshaw Communications
646‑535‑9475
chris@crenshawcomm.com
Investor Relations
Tejal Engman
DoubleVerify
IR@doubleverify.com