DoubleVerify Q2 revenue misses estimates; withdraws outlook amid Nielsen deal
DoubleVerify Q2 revenue misses estimates; withdraws outlook amid Nielsen deal
Overview
US media effectiveness platform's Q2 revenue rose 3% yr/yr but missed analyst expectations
Adjusted EBITDA for Q2 slightly beat analyst expectations
DoubleVerify agreed to be acquired by Nielsen parent; suspends earnings calls and withdraws guidance
Outlook
Company is withdrawing all previously issued financial outlook and guidance due to pending acquisition
Result Drivers
MEASUREMENT REVENUE GROWTH - Measurement revenue increased 6% yr/yr, partially offsetting declines in activation revenue
SUPPLY-SIDE REVENUE - Supply-side revenue rose 13% yr/yr, contributing to overall revenue growth
ACTIVATION REVENUE DECLINE - Activation revenue fell 1% yr/yr, weighing on total revenue growth
Company press release: ID:nGNX8lPTYR
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | $193.79 mln | $202.19 mln (16 Analysts) |
Q2 Net Income |
| $12.92 mln |
|
Q2 Adjusted EBITDA | Slight Beat* | $65.30 mln | $64.82 mln (15 Analysts) |
Q2 Income From Operations |
| $23.03 mln |
|
Q2 Pretax Profit |
| $21.91 mln |
|
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for DoubleVerify Holdings, Inc. is $12.00, about 0.1% above its August 5 closing price of $11.99
The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 20 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)