Digital media measurement and analytics provider DoubleVerify (NYSE: DV) reported Q2 CY2025 results topping the market’s revenue expectations, with sales up 21.3% year on year to $189 million. Guidance for next quarter’s revenue was better than expected at $190 million at the midpoint, 1.9% above analysts’ estimates. Its non-GAAP profit of $0.15 per share was 34.7% below analysts’ consensus estimates.

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StockStory’s Take

DoubleVerify’s second quarter saw a positive market reaction, with management attributing the 21% revenue growth to broad-based expansion across its activation, measurement, and supply-side segments. CEO Mark Zagorski emphasized that existing advertisers drove the majority of growth through increased use of new DoubleVerify solutions and deeper product adoption across channels. The company’s attach, stack, and scale strategy, which focuses on selling more products to current clients and expanding relationships with new logos like Microsoft and Kenvue, was highlighted as a central growth engine. Zagorski noted, “Our business momentum is clear on the strength of our customer relationships,” with large enterprise clients deepening investments and new wins contributing to a more diversified revenue base.

Looking forward, DoubleVerify’s updated guidance is driven by expectations of continued upsell momentum among existing customers and gradual adoption of new social activation and CTV solutions. Management described 2025 as a transition year, with CEO Mark Zagorski explaining that newer products like Meta pre-screen and DV Authentic AdVantage are in early stages of monetization but are expected to ramp more meaningfully into 2026. CFO Nicola Allais added, “We are raising both Q3 and Q4 outlook based on strong momentum from our existing advertiser base,” while also referencing a disciplined approach to investment and hiring to support long-term product innovation and integration of recent acquisitions.

Key Insights from Management’s Remarks

Management credited the quarter’s outperformance to strong upselling of core and premium solutions, increased customer adoption in social and CTV, and robust programmatic activation.

• Upselling premium solutions: DoubleVerify’s attach and stack strategy led to higher adoption of its premium ABS (Authentic Brand Suitability) and social activation products, with 70% of its top 500 customers now using ABS—up from 65% a year ago.
• Momentum in social and CTV: Social measurement revenue grew 14% year-over-year, supported by both new and existing customers expanding usage on platforms such as Meta, YouTube, and TikTok. CTV measurement impressions surged 45%, signaling deeper engagement in premium streaming environments.
• New product traction: The Media AdVantage Platform (MAP) and DV Authentic AdVantage, both integrating verification, optimization, and outcomes measurement, gained market traction. Authentic AdVantage, tested across 90 campaigns, drove measurable gains in campaign efficiency and customer value.
• Diversified customer base: Large enterprise clients like Reckitt Benckiser, General Motors, and Sony PlayStation expanded their use of DoubleVerify solutions, while new clients in retail, payments, and entertainment sectors contributed to a more balanced revenue mix.
• Programmatic and AI-driven growth: Adoption of Scibids AI optimization expanded within the top 100 customers, and DV’s footprint grew across retail media networks and supply-side partnerships, driving 39% year-over-year growth in retail media supply-side revenue.

Drivers of Future Performance

Management expects future growth to be fueled by continued product adoption, expanding use cases in social and CTV, and disciplined operational investment.

• Upsell momentum and product integration: Continued expansion of core products among existing advertisers, especially in premium solutions like ABS and new offerings such as DV Authentic AdVantage, are seen as key revenue drivers. Management expects the attach, stack, and scale approach to sustain high net revenue retention and deepen client relationships.
• Social and CTV adoption ramp: The rollout of Meta pre-screen and ongoing CTV solution enhancements are in early monetization stages, requiring advertisers to test and integrate them into existing workflows. Management anticipates these solutions will begin contributing meaningfully in 2026 as adoption accelerates.
• Investment discipline amid macro uncertainty: Ongoing investments in AI, product development, and integration of acquisitions like Rockerbox are balanced with hiring discipline. Management cited persistent macroeconomic volatility and tougher year-over-year new customer comparisons as headwinds but remains focused on long-term growth through innovation and operational leverage.

Catalysts in Upcoming Quarters

In the coming quarters, our analysts will be tracking (1) the pace of adoption and monetization for new social and CTV products, particularly Meta pre-screen and Authentic AdVantage; (2) progress in upselling premium solutions to existing large enterprise customers; and (3) the impact of ongoing product innovation and AI integration on client retention and expansion. Execution on these fronts will be critical to sustaining DoubleVerify’s growth trajectory in a competitive digital advertising landscape.

DoubleVerify currently trades at $14.97, down from $15.48 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).

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