DoubleVerify: Market Leader In Ad Verification Technology, Poised For Continued Expansion

DoubleVerify: Market Leader In Ad Verification Technology, Poised For Continued Expansion

Written by Summary

DoubleVerify offers powerful software solutions that are industry neutral and needed to verify the performance of Ads on/within Social Platforms, Video Platforms, DSPs, and SSPs.

Growth has been rapid in recent years, with revenue tripling from $104M in 2018 to $305M in the TTM period.

The company has developed extremely “sticky” customer relationships, having retained 100% of its top 75 clients over the past 3 years.

The TAM for DV’s products and services is $20B, offering multiple opportunities for continued future growth.

Olemedia/E+ via Getty Images Introduction

DoubleVerify ( DV ) fills a major gap in the advertising market by offering powerful software solutions which enable digital media buyers to protect their brand reputation while increasing their return on ad spend. As more ad dollars shift from traditional to digital channels (such as programmatic and CTV), it’s more vital than ever for marketers to ensure that their commercials are viewed by the intended audience in a safe environment. DV is a fast-growing firm that is executing effectively and has developed a unique set of proprietary solutions to satisfy ad industry demands. DV has access to numerous organic and inorganic growth opportunities which if capitalizable would greatly amplify the company’s total return potential. With a strong track record of execution so far, including a net revenue retention rate of greater than 120%, experienced management and a set of products/services benefitting from “network effects”, DV warrants consideration from growth-oriented investors. Company Overview

In the United States and globally, DoubleVerify Holdings, Inc. provides a software platform for digital media measurement, data, and analytics. Advertisers can use its products to get a single assessment of digital ad quality and effectiveness. DV Authentic Ad is a metric of digital media quality that evaluates the presence of fraud, brand safety, viewability, and geography for each digital ad; DV Authentic Attention is a predictive analytics solution that provides exposure and engagement to drive campaign performance; and Custom Contextual is a solution that allows advertisers to match their ads to relevant content to maximize user engagement and drive campaign performance.

DV Publisher suite is a solution for digital publishers to manage revenue and boost inventory yield by enhancing video delivery, recognizing lost or unfulfilled transactions, and aggregating data across all inventory sources. DV Pinnacle is a user interface for a service and analytics platform that allows clients to alter and install controls for their media plan while also tracking campaign performance data across channels, formats, and devices.

Programmatic platforms, connected TV, social media outlets, and digital publishers are all part of the company’s software ecosystem. DoubleVerify provides services to brands, publishers, and other supply-side customers across a range of industries, including consumer packaged goods, financial services, telecommunications, technology, automotive, and healthcare. Investment Case

DV’s business model and the products/services described above are directly providing measurable ROI to customers, which potential investors should note as they consider the investment case. In its investor presentation, the company highlights that it’s helping customers identify the $42 billion of ad spend lost annually due to fraud, identifying brand safety violations and helping determine whether or not ads are actually viewed (as less than <5% of ads currently receive more than 2 seconds of engagement according to DV’s analysis). DV’s offerings are independent, third-party metrics that address the challenges above by providing customers with accurate and holistic data on ad quality, thereby optimizing return on ad spend. In each of the last 3 years, DoubleVerify has achieved a Net Revenue Retention Rate of 120%+. This not only highlights the value that the company’s offerings provide to customers, but that DV continues to expand its customer relationships. On top of DV’s strong NRR, the company has maintained 100% of its top 75 customers over the last 3 years and has an average customer lifespan of 5.8 years for this group of 75. Simply stated, DV is a business that has developed extremely “sticky” customer relationships.

Industry conditions are also favorable for DV. According to the Company’s recent investor presentation, the overall TAM for DV’s products and services is $13 billion today and will rise to $20 billion by 2025. With analysts projecting that DV will end the year at $330M in sales, the company has significant opportunity to capture further market share. DV’s products and services appear to be at the center of multiple industry growth drivers and trends. The current social and political environment has forced many brands to take a stand to ensure that their brand is aligned […]

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