DoubleVerify Holdings (DV) Stock Forecast & Price Target

DoubleVerify Holdings Inc. has demonstrated strong growth metrics, with total revenues increasing by 11% year-over-year to $188.6 million, driven primarily by a 27% rise in supply-side revenues and substantial growth in activation revenues. The company's pre-bid social revenues also grew by 20% year-over-year, positioning this channel as one of its fastest-growing segments, while the number of advertisers generating over $200,000 in annual revenue increased by 11% year-over-year. Additionally, the forecast for Adjusted EBITDA margins has been raised to 33% for FY25, indicating positive momentum and operational efficiency improvements.

DoubleVerify Holdings Inc. is experiencing a notable deceleration in revenue growth, with North America revenues slowing from +18% year-over-year (y/y) in the second quarter to +12% y/y in the third quarter, reflecting a weaker performance in its Retail vertical. Full-year guidance for the fourth quarter suggests a revenue growth rate of 14% y/y, a decrease from the previously estimated 15%, indicating reduced visibility on long-term growth prospects. Additionally, the non-Advertising-Based Services (ABS) revenue growth rate has dropped significantly from +23% in the third quarter to +8% y/y, further contributing to the negative outlook amid a shifting digital advertising landscape characterized by a preference for outcome-oriented marketing strategies.