DoubleVerify Holdings (DV) Stock Forecast & Price Target

DoubleVerify Holdings Inc. demonstrated solid financial growth with total revenues increasing by 11% year-over-year to $188.6 million, supported by a robust 27% growth in its supply-side segment and a 10% rise in activation revenues. The company's expansion is further evidenced by a notable 11% increase in the number of advertisers projected to generate over $200,000 in revenue by 2025, reaching a total of 347 clients. Moreover, the outlook for profitability is promising, with fourth-quarter adjusted EBITDA margins expected to improve to 33% for fiscal year 2025, surpassing prior management expectations.

DoubleVerify Holdings Inc. has exhibited a concerning deceleration in revenue growth, with North American revenues increasing only 12% year-over-year in the third quarter, a decline from 18% in the prior quarter, and overall revenue projections for the fourth quarter being lowered to 14% growth from a previous estimate of 15%. The company has also reported a substantial drop in total ad revenue growth, which fell to 10% year-over-year in the third quarter compared to 21% in the second quarter, primarily affected by a weaker retail vertical. Furthermore, the outlook for fiscal year 2026 anticipates only 10% revenue growth, with declining DV margins, which raises concerns about the company's ability to maintain profitability amidst shifting trends in the digital advertising landscape towards outcome-oriented metrics.