DV - Earnings call transcript Q1 2022 | DoubleVerify Holdings, Inc.

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Operator

Greetings. Welcome to DoubleVerify's First Quarter 2022 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note, this conference is being recorded. now Relations. conference I'll Engman to time, Investor with this turn over the Tejal At may begin. you Tejal, now

Tejal Engman

results Good And afternoon, Zagorski, our and and this subject Earnings currently Allais, Conference to welcome information Today's current call to our DoubleVerify's With CFO. to could uncertainties statements available today expectations First may us inherent contain differ and are that release risks, materially. reflect Mark press CEO; actual forward-looking Nicola Call. and us. and Quarter are XXXX changes and

please more in on For the Form the our recent refer report information, to XX-Q risk SEC Form annual our factors XX-K. filings, including and

a is In on release, the today, references the measures our should earnings to substitute to posted deck GAAP referring addition, which Relations today's results. be I'll that, Mark. measures most include during are addition we'll and available today be available in financial Also our at will certain considered call it comparable supplemental turn as website to GAAP our for Reconciliations discussion our With to on over website. non-GAAP slide in not ir.doubleverify.com. the press Investor to and

Mark Zagorski

affected quarter thank the on I discuss joining excited for you our me by in and reiterate optimistic let Ukraine. the do, all and us I'm those strong heartbreaking for today. Tejal, Thanks, year of all ahead. before first performance outlook to But support the our conflict

as making and have information stronger, to in efforts committed web, misinformation safer and wars and remain worldwide more relief voluntarily the clients. truth services across we secure. humanitarian support promoting this and Ukraine we to digital continue transparency raging with discontinued toward We Russia-based advertising With work defunding deeply

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high-margin attractive net DV net and testament income software continues solutions. margins, and income the achieve high-growth economics of positive our addition, In a to to

quarter and strong the momentum the sustained second first delivered business revenue is rate quarter, has a year-to-date. highest and demonstrated good start. March to off growth year-over-year Our the within growth

macroeconomic business to beyond We continues performance that and to full demonstrate quarter of raise us adjusted uncertainty. to highlight and have performance, raised DV gives internal guidance revenue our EBITDA environment like beat. geopolitical expectations second which quarter first sustained confidence the for I'd in year an the

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Nicola Allais

everyone. Thanks, Mark, and good afternoon,

first continue year-to-date our We and revenue quarter. to are in increase and And and year with of enabling our macroeconomic we this discuss solutions. us by and are XX%. profitability XX% the visibility revenue clients of pleased revenue monitor business to uncertain delivered activating our while our revenue geopolitical momentum and growth our growth full strong to Activation environment, was number premium have priced of XXXX Authentic primarily XX% outlook. clients growth other by was product activation Total Brand Suitability by led of greater programmatic driven growth a revenue current with

line activation social expectation. with Our in through solutions OpenSlate performed

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performing by to advertiser levels, continues and grew growth the XX%, and expectations revenue our growth QX partners a diversification. across as expenses. Moreover, bifurcation. MTMs In of 'XX, were continues top to benefit outsized from publisher be from return new driven travel, costs driven Cost In expansion seasonality million and industries the by and by our Year-over-year to display revenue. premium entertainment. also with to ramping the Meetrics. wins grew of percentage platform benefiting to overall from from increased Overall, line revenue-sharing year-over-year. and acquisition such $XX XX% advertiser the volume-led. Mark As media total MTF revenue revenue up all year, pre-pandemic deals restaurants Yahoo! year-over-year, business. revenue were revenue million the activation in new a with that improved grew growth XXX from clients the as and $X.X product programmatic Shifting platform with OpenSlate as this X% revenue in industry video year primarily by generating Amazon the and from and programmatic first revenue mentioned, including of and between clients price last Japan with mix includes revenue grew sectors, our quarter, of from to similar signed OpenSlate million, as Supply-side as in publishers. impact due an with of arrangements well impact is of of increase $XX

million, trade acquisition. timing higher in faster the of increase first anticipated cash normal QX reserves flow related the as adjusted in G&A of of bad margins The that captures was an as year-over-year development, to to in payroll overhead of a reduction increase $XX.X also and negative end QX costs. and marketing quarter. of Net related expenses increase in Adjusted operating a in related strong full first top related course cash as as due in costs our primarily was employee In is to added business in driven million QX revenue to factors the $X EBITDA EBITDA Russia. advertising quarter QX by of and people-related million million collected revenue and XXX product higher due cloud 'XX. of revenues addition, quarter includes XX% exceeded than exposure well $X.X services primarily $XX to duplicative cash higher liabilities guidance. growth higher G&A was the to led collections receivables to expenses sales debt OpenSlate we to 'XX a paid employees XXXX

in interest road will strategic growth including that provides long-term footprint. accelerate We and and a hand environment with sheet have expand to adjacencies through DV an the million ended continue on map, to credit outstanding. unused continue in investments, for of facility. quarter open revolving The the rate rising as and technology such advance is balance a product million We and to $XXX strength opportunity M&A cash the our have zero global up debt $XXX audio advantage and gaming our

Now turning to guidance.

million, second expect revenue of the million growth We XX% implies $XXX quarter year-over-year range $XXX midpoint. the in of to at which

$XX EBITDA of million XX% an increase in which adjusted range $XX adjusted a the implies quarter and midpoint. second to XX% year-over-year margin of the of expect EBITDA We million, at

the average we XXX stock-based XXX For expect to million to between quarter, and range and second weighted $X and million shares $XX outstanding diluted between compensation range shares. million million

we XXXX For the $XXX year-over-year million, of million $XXX which the at a guidance, to growth midpoint. range year XX% revenue full of implies expect in

EBITDA implies adjusted adjusted $XXX XX% the of $XXX which an at year-over-year million margin and of EBITDA range in XX% the midpoint. of expect million, We to increase a

third We full which is of revenue, second to year the year Quarterly of and raised due quarter in approximately share EBITDA with full XX% stronger-than-expected have revenue reflect XX% in expected normal our respectively. quarter guidance full to first adjusted seasonality the revenue to quarter, year date. continues revenue second representing performance and and

year in to largest the accelerating and return share year typically basis, second capabilities enhancing investments margins fourth to to third stable full growth. to more talent, EBITDA our building expect adjusted of remain support we the which the quarters to revenue. levels normalized quarter, unchanged we the and sequential hiring learning contributes full in machine out IT remain infrastructure at On sales are expect and margins a in We XX% engineering as further and

previously XXX we headquarter build footprint in collaborative between and office a are into employees today. our As grew expenditure including to two years XXXX, York a with taking of capital over significantly million in ago $XX as from new million return New environment. hybrid world the we to to XXX office consolidating base, global disclosed, We're employees a approach space expect $XX a to range the single which employee investments to advantage around to opportunity in larger

Based by people to talent DV Our the world. investments and retain the on relocations, spending expect best renovations of anywhere we attract close, enable capital full a initial will most and our quarter incur third timing XXXX in on delivered in to of the of full end office the our the expenditure first year of year strong quarter. are To we and ahead plan.

impact regular questions. the monitor ahead. We we for with the the dialogue rest plan budget execute in on year. to we line and open successfully of the environment Operator, will of the engage please geopolitical continue macroeconomic for our them clients' ad to our and that, as And go

Operator

[Operator of Instructions] the Our line with Arjun from William first Bhatia Blair. question is

Arjun Bhatia

Congrats of on a great going like QX, the guys. well. business seems It sort is

I pricing the seems it's to model mentioned lever the out And can curious on display CTV. the to and know you solution? interesting was another touch announcement. and on I'd solutions, then introduce other both ROI given premium about thing side do standard where area in I of how potentially if rolling another the social, be to that you solutions. Mark, that you wanted bifurcation. pricing hear that was here, thought what first is I about think like now, there really video. But the Right channels? a the across it The that's all

Mark Zagorski

entire we over-delivered when be in at look uptake the a prices, came or our that the know, MTF majority our our of question, the bifurcation, across Thanks product the side. to in product solution the clear, much Arjun. display bifurcation from right? and currently or positive also had fees more two our activation mix look the set, overall when quarter, on that to premium But -- across the it specifically had small at and categories, the a from you in premium Great. to have momentum as of we vast we video; and But price. stronger our a just side. that We mix, on growth And for around increase is we less, note

key us gives ability components pricing it across two our in align to So types the of platform partners. activation those on

scale So regarding types of for categorization it's some of this the types point, pricing is opportunity of comes I segmentation us think us and The at opportunity into content create of kind again, down does be bifurcation, to when it when relatively media down question of different kind us exhibit think further or the trifurcation specific gives is broad-based flexibility and, buyers. even further an it would that road, the we there the road. to for there

So the or could where focus driver. here our display, said, we right because more we take then parity future We But I we've CTV. video And continue we now, do that think potentially to to to want it's know key where think want to -- we lightly volume flexibility, are in there's a display, going market go pricing opportunities as opportunities think where video. we revenue and see there's point treading we're so. to always on we become that as

Arjun Bhatia

where advertising anticipate go there's cetera. on there a with you environment. the helpful. may given out this lot the could Europe, DoubleVerify? model et out out macro come pressure? CPMs how maybe one play transactional that may that which model and of point does scenario do spend a just might drive for could your Very under how actually then transaction where, higher, I revenue uncertainties you a on inflation and more finer if lower, wondering I volume if play And Is broader it know put was

Mark Zagorski

Yes.

very or time to imbalances, for And case, something we It's saw in macro our XX%, look by the which XXXX QX a at between mean at shrinking supply-demand I we when of increase. the us XX% to were in good at to we yet and best growing allowed collapse, reference looking advertising a CPMs that back XX% of steady in model, in pandemic there market most kind Another that continue the a remain we our because growth point volumes showing to during big XX% we're decrease closely. and one. pretty monitoring period. as of saw grow was delta of that XX%

good at So look a business, volume-driven it's CPM take we business of a versus that, I are. think: which a a, representation when we what or rate-driven is

We us script, also the key nature itself, couple a the of from of noted keep there's as pummeled aspects other the actual of being that in lot beyond other model a by those headwinds as companies.

of to So up, product, make protecting that the coming particularly essential Brand see we around things more leveraging folks nature elections those the when our conflicts and much are it. around Safety our important like that Suitability solution the world, continued just

the we at volume of deals quarter, cases first new revenue look being still that well have And you that we're -- advertiser even a were opportunities ad the almost individual that spend or the being As chasing. the of as depressed, customers. amount in you XX% even closed depressed when of being fact greenfield in significant them

already we're relying a customers of customers fully that to penetrated We've drive got we've market basket of not close, too. So the that on lots new spend.

of those in strong macro look other challenges, some those combination the to of at position lot issues making things, having face the not really entirely business of a ad-based our that companies are you when all immune So facing. a but

Operator

Squali of line Truist Youssef the Securities. question next comes with Our from

Youssef Squali

days me. products platforms. on contributed covered I QX, guys out remarks. And specifically wondering -- just the for to just maybe two update your timing that or last little quarter, maybe you News provide biggest just just were when can there? for to from Reddit that the where relationship and prepared two But can there's to or any an rolling stepping guidance or the gave the we XX the surprise you you with update questions the if think bit to back was areas regard you? And lastly, double-click of talked ago you one One, one upside, in biggest Feed, and well. as the this flush a you on about I on Meta out Two maybe Twitter to Maybe had then on

Mark Zagorski

Youssef. Yes. Sure. Thanks,

the that So key QX, think couple there's I of drivers. we a mentioned

this we who are is and quickly We sales to of last on one been programmatic activation selling cross-sell put unit. and focus did and rolling first I together late more have immediately. that almost people selling who last together saw in over our year ability really several quarters benefits better early when We how the our a sales solutions of and into people would than bringing talked our measurement team bit, on credit team, and are their the year, our I think, solutions, into we or that we've the of it Investor expected. that our impressed ton with them upsell and our give reorganization we Day, we about like The -- a even to did

that to a we had the that as clients, clients. XXX noted, QX So of XXXX was versus big had new and of strong we new cross-selling for. other activation XXXX stronger in we XXXX, upselling the QX we're in mix or jump planned solutions product right? ability our solutions. right? -- then premium, over-delivered, new originally really us clients the saw it ability than a new almost ABS were increased, that product and us the a profile part came And gave So to our QX, And MTF of of So measurement sell there is on you lot to activation growth new of which our upsell if XXX from in for

credit opportunities the more into cross-sell, premium-priced commercial is to our is where credit products. upsell lean give due, team's to then want I So actually push ability and

-- from an was a So of active this although It wasn't certainly it of came growth. from that quarter, I volume, a and growth. think new our increased that's benefited volume solutions we users lot passive

So I real as drivers. those at would being look

which the with Second we Twitter the Alpha us that and think, finally, for in work a mean on Meta, they've I on mentioned really of The partners have ago. third months year, announcement is to this given. their are And Meta's badged this I we update then They're questions the made later position. two Twitter/Reddit, be there. is they sometime on official done not changed framework with to of space. roll badged working public out summer. timing the partners, no few real They

work-in-progress. I announce sometime that think is a be Reditt soon, to and probably we'll able still

Operator

Our next with the Securities. question is Boone coming line of Andrew JMP from

Andrew Boone

please. Two,

in you what's then could DV? you we overall you The tests, the the in that quarter. Can resonates new the can just right? driving you've overall times the just that this strong it's of new kind in kind of following Attention, just understand product, in And the think that us a Lay is, be Or as client double-click first mentioned responses, of talk on Authentic have out suite Help your rollout Mark, this expectations given is about initial couple sales terms of really you addition of what adds. of secondly, more the the kind guys for to adds the beyond you just think experienced now of the environment? these execution? in that terms an

Mark Zagorski

sure. For

For sure.

or in our targeting focused been combination are happens just cycle a It's buy-side put higher we've leverages clicking. mean and our relationship And is to impressed and application, and that buying programmatic other understanding it team I solutions optimize data on the our solutions So those programmatic unlike is of post-campaign there's looking the power solutions. on on any fuel think together create I way on think tools at purchased, between other no solution the those really ABS. the is performance client virtuous unique it return other it's ABS them data the adds, measurement to two and in out how the together. filtering than of what activation has yield there. exhibited their synergistic to after side again buying using and new how advertisers measurement I on that the pre-campaign this and impression into the and

since power the ratio. those that an so, is based of many as implementation solutions competitions. most an to competition. cases and our on head-to-head last winning or of move about software in We XX%-plus year noted the talked had in ahead, RFP in done with the we I we've think a power the continues cases, past, QX -- that's the That of product. RFP, win programmatic are So script, And is in we've

activation and So head-to-head there's good an say magic tools folks there. great seeing part in together. -- It's the they that would love when just some nice And the and salespeople we're That's beating where beating the go pickup. products not I measurement out we're to of with working are beating marketplace. competition them but really, measurement, out and the RFP. really is We're the

there, around So are growth that's still that on going we Attention, days we're said where we Authentic things like always early attention. we've see new but from. expectations couple around coming client On a of

much with others a uptake who push The around advertisers, there's first fans sector is or category client and big this very mentality, to they're that folks some gets will becoming we around and continued the it follow. themselves, volume got continued going one herd that measurement. it, continue are solutions to know client one We've and of

B, So probably important. like this uptake. the market we most a, sentiment is it, like the we and around the

If buys their currencies. using metrics currencies do television their on Those I upfront you think, currencies. they weeks on couple be XX% what's things like can alternative that alternative Media, with of look ago from were to attention. said going press Horizon over everything a release ROI going to of

this marketplace think to of concept starting and accept that alternative besides really we this, -- frequency. So the reach currencies is into move beyond

So traction those. that getting attention new tools tools thing. second and space volume we're the like launching and continued is we're that's revenue Screen and third CTV new Fully-On by getting the in the across that the the And

the look current we adoption at I think case. we and suite the performance if think got we and some contextual good clients tool marketplace using basic So of We've this and at about think runway attention a get before that innovation, attention. around We've point, solutions, said that's still our to size programmatic there. could, rival I feel our

opportunities the currency we tools a very that on we the have We will it's we'll an be across more future. day, the multiple that quarters. it CTV, quarter But more the So at in types And are alternative I two, end launch not the one or of it's bullish think believe of attention. there.

Operator

coming KeyBanc. question next The is of from the Patterson with Justin line

Justin Patterson

There's we you you be How you then if looks entering steps other And your opportunity could what election. investments the impacting talk perhaps with the a year. this about Nicola, about in the Mark, to And half clearly the being make big Is suite? in second this should secondly, can. to for half? succeed thrown compare It something an environment really do this media? get like how could second could for political that does some talk and dollars contentious Two think I to retail product around this just channels? need about running? to you up

Mark Zagorski

Justin. Thanks,

So about we're the media it there. sector is really in we where excited remarks. about little a time opportunity the retail spent And talking prepared a

more and You're about hearing more it.

over measurement several studies had foresight I we these to competency retail to say ago anywhere the But we built networks. to of years a strong is I'd sector. years media of billion upwards things. the that saying think $XX billion next the the predict in three from of retail two the multiple $XX it power media these reality or in very love

their it's support So folks also to like of and their folks retail us them that with in approaching start networks and Walmart retailers into support those just so to translate Macy's like strength really supporting Target our tools. companies, and brands,

new networks Now do have of media because a support ton of retail to two we development reasons. to didn't those

sellers sell-side both i.e., -- et supports or The first a that business while, platforms which X% that's which a our supported we've platform in so is we've -- cetera. media, of SSPs, and we've of publishers that our for business sold had

we So the well. there work tools of fared have types that

the implementations us or impressions impressions as allow buyers well programmatic to networks. As we've manage different across for of types the done filter side, on out which

repurposed go different those retail the I our is, networks other is media different Safety, lots many Brand entirely that protection, it can were advertisers. networks, thing retail types the the same different across less That so. some new sector same scale channel don't have because try a same to for Trade to these us midsized Suitability, of this more I'll a environments. and lots So of that Desk metrics they to to of And love platforms an like viewability retailer media of in to measurement which small would We that data direct thing a we last about us advertisers types so in or or had the give about think, provide in tool to for programmatic never programmatic media or networks do buyers retail of channel to core the distribute so us, testament to the application seller retail out be of just opens -- those sell type DVXXX media, But do way we The buyers. to of fraud for small up ways and applied data mom-and-pop say right? a of

So But any side it it very best tools, et us. on for sets. the new and opened a to flexibility new shows kind our our it. market the of of development, new is, growing does additional quickly. cetera, data of -- up doesn't part leverage has It's investment it for types We need like

Nicola Allais

Yes.

the question on political I'll the second environment. Justin, take

campaigns will is, that. lead I that opportunity if thinking the incendiary there opportunity use activation environment, our be services, worked directly benefit about question political And to the is more, to is advertisers a election the So cycle, will through creation for suite, services of product type we content any that some advertisers where sort cycles, the brand. obviously, right? our and of So prior campaigns. -- the extent our mean around from your haven't with But just clear, in we choose to broadly, more that political

for shine. products So to opportunity obviously an it is our

We had from not forecast our benefiting not a for it those since of we haven't -- in the campaigns, history half the year. second is of have factored

Operator

of Lenschow Barclays. question comes Our with next from Raimo the line

Frank Surace

announcement. Frank there's obviously is going the but for served independent for seen I so quarter. you around those ask customers one here, to still offerings urgency the to wanted to safety sort This deeper any on out mean adopting has far? on Meta this Raimo. increased on I a the or know lot Congrats validate with further announcement? brand since need or awareness the from I have

Mark Zagorski

great a question. It's

the I part have customers this. the always think wanted is interesting

is closed pushed either their kind anything, Where others if the somewhat So validated going of to kind somewhat if reluctant the it Twitter not have marketing for ecosystem it ecosystem, demands to it. to." or rest of not is folks I need going as I'm walled-garden "Hey, mentioned to Facebook were need into has closed of us or who the who said, so Meta the And with or isn't reluctant while. a like work going because it's are to earlier, of do leaned it,

the to We TikTok few with months. our and launching continues our that will relationship be in solutions and grow. Suitability Brand next feed Safety and how mentioned them We've

need is kind and of to of I the market on it everybody an "Yes. do who've from going they're third-party been think is driven said, it." space I it's in "Do in. kind And perspective, The fence embracing else somewhat who really So saying, whole really advertiser the of validation?" sitting And they're all

Operator

Graham question line the next from Canaccord. of is The with Michael

Michael Graham

guys. awesome An quarter,

the kind profitability. about and where growth about sort about could. just of wanted that's on the get I lot thinking then And I know lower you us of but just a if in how I of two, give you wondering you're talked One were and could -- Just pricing. was update bifurcation. balance than the between to update if an on to of an sort also evolution terms structurally I model pricing, there. on U.S. just wanted pricing the international we ask

nice of was like this quarter, more this had Rule of XX which Rule great. profile. You is It XX

the projects of Just feeling are have initiatives to being how about to wondering stays how too? do you of do business decelerate, on on high, you're start you converse if the and you other able enough that, about revenue thinking growth the modulate side in? And that, to invest if

Nicola Allais

Yes. Mike, one. the I'll start with first

are CPMs international because U.S. which pricing That outside remain that discount same, side MTF, lower not of the So a in versus the the the just is implied for international measurement factor -- is U.S. patterns changed. is there on on driving the has particular,

a as a sign a of broader solution kind to that the with still we're anything, is our seen that haven't larger international we services. across with include also the there We a the all expansion activation is of discount enterprise If bit up deals change. But of measurement, for come able assumption same.

into shown. terms business announced start, we In can first the see, results as with today profitability, will sure I'll we quarter would growth opportunity, Mark are as what we've the the strong is that of and especially reinvesting I chime I'm that, say versus in, see you we

still and yes. So would days continue when enough early perspective, our growth it's have say I to mentioned, still there revenue is we projects, the for from do against to you invest it. us

Mark Zagorski

Yes.

global the industry macroeconomic right? revenue time Now is places, factors line, what to great lean invest, investing comes markets. We've we've we've the much we're and companies when is And is on to us just doing great for little we're got out the to great got this to top perfect I the for back so, coming be we've on got we this that's I reiterate us that been we've start we're largely because people Like force doing is when in think that expansion better time market there's to there smart do that, harder And back know new roaring what because are because we've and not bit. immune sales roaring time want into growth. to doing. investments solutions, room -- hitting great been we because those. think But what got a

Operator

line Dan is of Capital with the next question BMO from Our Markets. Salmon

Dan Salmon

what to build that but the their then and the address in are I think important you intellectual a second products. ecosystems in platforms such largely issue, may media clear your to hood, about it's the you product tend it of use hear seem legal questions, technical. we it not address to are And have And data removing for the numbers. any ecosystem you I've for elements the and it to you? whether your how publisher it there's, love under it rights a like lately or that in up rather from thoughts IP think, use privacy, as, the of you may you a your the you measure on to and more ecosystem the quality But more IP towards there's property. more a contextual for create don't admittedly, Mark, little your remind targeting seems who, a for as know methodologies and these from how. maybe how the a impact that, companies your company does again, few elements little one, noise couple products? highlight the increasingly of products bit first showing little that how us and to your could but are But And I'd most that their got sort bit you using how removal not issue example, like be in may how push circular

Mark Zagorski

for For sure. sure,

good, So understanding questions, your Shows is Dan. of great. deep which space, the

of a side, publisher the so on to So couple note. things

of fact actually we help because with that their them I business with relationship sell to ads. side, that and think provide the the a have tools we of the publisher good drive performance optimize

and pull that together. work both Internet us With have. we who we right, really years, relationship them regard with available on build walled-gardens, on zero allow seen a data our So them we we've the data the how all with had from we've with for to and open products, relationship conflict us publishers -- we based from build and or that publicly get to based actually

So we available social directly are our that with publicly combination cetera, of via CTV are have a what's Internet. relationships on things as well as networks, solutions networks, that the the available et

a see don't we So conflict there.

or we actually them helping fact, around sectors or it's of period. that As contextual protecting publishers, a context, believe to matter interests premium sites premium do legitimate we that direct everything help whether advertisers'

publishers that is there think I So we relationship into. positive synergistic lean with a

penetration. our who. side, invalid around relatively look be fraud the look iOS a what. for blocked, a big that about, just or is a around deciding we user done lot Those really whether We this, address though, look the of part look something On we factor talk going is whether not being low IP on traffic devices, is kind the solutions traffic and the that leverage from of -- the we've And of at comes don't is it's and how, when We always at into of have criteria many to many, issues devices that's and the bot. and one where edges. IP a are built right? iOS it dive we to The geography where, really address in only IPs which invalid we deciding at IP at the solutions, of

we So part recipe live a and very that very, one rich one solutions put IP without. we together if fraud our to and is which of had build certainly, we to, complex can

Operator

with Our next question is from the of line Mark Kelley Stifel.

Mark Kelley

Two quick ones.

rolling had second TikTok. And lot a question. then know And your on announcement. is a that is the guess, they've changes I That's First make any their there. result out. contextual guys the that? Meta the private one that you on that do like nice the have anticipate they're it's solution a announcements incremental you you Feed relationship of recent to one as given to partner, Pulse, competitor that's initial I product a of first need

the some their expand of that does homegrown broadening that the platform, of even opportunities if their solutions, along curious platform broadening do have well? also Just they if with as mean your

Mark Zagorski

Sure.

chose of Feed that set, has relationship into we've numerous incredible platform reality be will an we've been based I off, of data extensive for looking that at competitor always of solution years incremental more the is anyone broader with built position there their a on we've having a don't. first any the a the but distinct purview with extensive chose the what know of work but an with And that several will on is off and the work will because we're the partner we going work don't think it to both incremental plugged that company social with them across Meta some and we -- And who say limited think years start because networks and suite the already nature don't So is our that Meta do, work, that partner I be Meta. they our And of of Internet to the something to If on question, fact that over was have. to in parts anything, that solutions. whole, to in there. do they So right? as much to I special we work built feed leverage to see the of anything that out with have good advantage didn't not

of parties not being think with right? expanding and quickly I bring part in is but have third third-party to relationship certainly good to really appeal to productive advertisers be think the part into have that, are learned of only concerns advertisers a I kind in business mean I are from there, they And TikTok, to lessons can of how regard long-term I for, big advertisers, can they ensure ecosystem. with to continue they mean, the With ensuring they've a we're advertisers. of solutions that their shape. how meeting address their how to how impressed and that to So what that how of that build we trusted they been looking open needs

in provides continue just more So opportunities it to their expand, we to globally, take they grow more well. business for to feel like as that as as and us they part continue

Operator

JPMorgan. question next Murphy from Our Mark is of from the line

Mark Murphy

I'll solid top add very QX. a my on congrats in line

had several I of noticed enterprise in your are that pandemic-impacted industries. Mark, So wins

Norwegian a Or KFC. and we those kind of as it and return and more that is Buy Lines industries? to a Best had independence of I'm not health -- it for some differentiator DoubleVerify? You displacements. sign of But Subway sure interpret them Cruise how a seeing to switch many as and they're over maybe that causing of more were competitive a your is to Should sign

Mark Zagorski

of Mark. it come pandemic it's the But good you've way. never question, And a thought way that observation. about it's really kind back, categorized I great as a them It's

chain-constricted I you diversified on of on fact keep base, have look lot a the things have the right? all when our in we we don't the think we're there. that a a high on reliance is automotive. supply high client don't -- one out -- reliance pretty We There's at companies of we've leaning

competitive there's made A -- were these certainly comeback. So chunk of takeaways. a guys have them

into of going of think trust is and good feel in independence comes in a lean put I attributes. of part the is of of that the that accreditations the have independence a was significant it's though, as always we over thing the we're to idea I factor on say, to to our the independent, us, is to and But like solutions a from a got cases, is that good key wins. them tool better power think We're the sets. And set the that safety returns down always kicks impressions, because we icing there's the a moving differentiated on recipe, the continue the driving comfortable I more we've wall, like they're right? to they you cake. power have, situation When that, part And based a of it that, solutions, suitability more that really, when think about out that on we're they're our you -- some the it and of that. that. top If filtering I of unconflicted amount brand it layer perspective. creating

Mark Murphy

appreciate between Okay, got revenue -- have you Nicola, quick Could then, one a you. Mark. us, for growth. that, regarding guess, And XX% And I the you help I it. bridge

growth. I XX% EBITDA think it's

time the kind invest. a I think, we and structural effect? a programmatic that good cloud look M&A mentioned type said, much what the timing of is year-over-year. it pressure -- you or are -- it's the is when services hires the revenue versus temporary so XXX like of costs some as of margin such to you've at points something And how maybe to of dilution between Can that The XXX basis margins and share split down, you higher or as

Nicola Allais

which in that go ahead mentioned, a I were we would And that OpenSlate guiding be ours. G&A is operating of of are we that QX straight M&A. fact -- we we see year. why actually quarter. ahead temporary a costs the duplicative the margin is which is smaller where is you operation be margins, We're temporary. from for in as back items would our at where to of margin full actually the to thought XX% The answer, Mark, levels reducing the not for was acquisition the in to of first the in And Yes. similar that transaction, I'll we you are, this terms would of thought and guidance identifying terms for we can

driving is integration will to we of going by be way the normalized the year, end really very is And temporary. more on the you margins. the mentioned back and So the well, margins. what's it That's

Operator

to question-and-answer at this of closing time, over we've And end reached the our remarks. Zagorski call session. Mark I'll turn now for the

Mark Zagorski

successes ahead. today. in you your attention on updating all look I our for We time quarters and to you the appreciate joining. forward Thank

Operator

will This you. Thank conclude conference. today's

this may at disconnect time. your your for lines You you participation. Thank

DoubleVerify (DV) 14 May 222022 Q1 Earnings call transcript