DV - Earnings call transcript Q2 2022 | DoubleVerify Holdings, Inc.

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Operator

Hello, and welcome to the DoubleVerify's Second Quarter 2022 Financial Results Conference Call. [Operator Instructions].

As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Tejal Engman, Investor Relations. Please go ahead.

Tejal Engman

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

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

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

Mark Zagorski

geographies Thanks, this XX% delivered have evening. existing quarter, first Building achieved to we in Tejal, launch the solid and growth quarter clients, revenue organic double-digit our on revenue We're joining half drive on growth first in us guidance. for outstanding by second to growth delivered quarter, margins excited lines adjusted and we second significantly products thanks, All activations EBITDA the XX% at everyone, clients, and results. delivered upsell new to as our exceeding X across expand premium of media we platforms. new continue

new retail gaming further powered spend. Additionally, media on moves our innovation marketer focus sectors, fast-growing both of the and areas into continued

and expand new confident partners solid results year expectations for our can raise brand further our which remain ability half foundation time deepen sectors We to this who into revenue us and in geographies. with provide first engagement blue-chip from enabled EBITDA our we second the guidance to our full year. exceeded adjusted and Our a

to stay closely business ongoing calls. distinguish the from and current monitor companies. attributes given reiterate resilience patterns. geopolitical business most advertisers engage on macroeconomic of to uncertainty ad apprised the continue spend that climate, and me our the DV let our But highlighted We evolving of ad-supported prior regularly tech with macroeconomic I've

are by the expand outcomes ability our essential we relationship First, confident continued and and win products to spent. equity reducing on customers in dollar driving our thereby protect of customers waste, current better every media new improving brand efficiency as nature optimize and with our ROI

model largely verify in across insulates Next, verticals, to our from strategy revenues and making diversifies while CPM agnostic transaction our fee business our ad spend. shifts revenue volatility, fixed everywhere DV product platforms our

rapidly growth world's Our year. of than and the to customers and finally, remain most future last a the well-diversified of growing deep like customer in of driving and with vast independent and take key largest an the we have scale, and context Beginning X untapped for minutes as base second revenue comprises sustain our with unbiased partner. a verticals to XX% global long-term I'd with within focus our momentum our with innovation trusted DoubleVerify's quarter more growth. scale. to differentiators: stages we single early our discuss few built of market-defining our TAM on no drivers trust catalysts level the penetration brands And market

Authentic alignment our as providing solutions On for represented upsell, year-over-year and activation integrations over verify DoubleVerify, particularly momentum to activation unique drive drive partner for Contextual, Both revenue dynamic, a future our approximately advertising for ensure providing products everywhere XXX%, and platform market respectively, our to substantial Custom expansion and Our basis, of and are premium brand Suitability business. revenue. XX% and Brand second better identifier-independent programmatic opportunities combined grew XX% marketers X quarter from outcomes. activation that is provide and our ubiquitous products,

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environments. for feed scalable social per investments news and media highly pipeline highly line meaningful To development engineering we technology suitability continues solutions dynamic different visited the is search, approximately environments. closer, comprising DV's scale for time safety classification budgets, broad-based in verification active Global, social creating content our a to the XXX,XXX platform second that United expected driving decreases DoubleVerify. In quarter, Reddit, opportunity are feed unified social sector States, an technology in have to advertisers unified dynamic in connections pipeline a shortens grow social secure growing attractive across XX% marketers. user-generated environments, brand to is in According for and environment. brand environments developed integrate XXXX. growth suitability of key with media's remains digital social their media ad spend media most MAGNA demand efforts substantially partnership technology within on push a ad to the and and launched to feed over exclusive communities that highly platforms, feed The recently user-led social Our of us across safety consumer news the safer helped one support social news websites a in ex

suite also partner, across Network. ensuring LinkedIn full while quality campaigns pipeline support first maximizing Reddit's the be to excited social criteria that impact Audience in performance development meet Unified are will verification ad for We advertisers.

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a safety of summer suitability on news we schedule launch Finally, remain known brand feed measurement Twitter's as for and timeline. for

began brand-safe beta. quarter, prebid seek chain retail XXX% sectors, revenue measurement in continuing sector. DoubleVerify media from increasing the the into Walmart on retail further livestreamed our spread U.K. of the In we retail fast products livestreaming content we Ads appeal new marketers, Amazon, to to a community. the Twitch, Best expect solutions across XXXX, announce volume activation, to solutions. DV all second interactive with over becoming gaming media of service to suitable supply As and drive Media with in viewability into locations media and and solution a Walmart, the scale with including networks supermarket revenue first lines: X of advertising contextually with Today, solutions growth for Asda, is our and year-over-year of And the we're we for the finally, on In solution to networks, outcome-driven Group Macy's, we The Twitch on which scale leading In success our world, increases Kroger. quarter, have their grew the working global on an launched media half the identify largest Based retail Target, the partners second today by and excited in some the to clients XXX a across a networks we're side. networks sold Buy significant to expansion venue gaming brands. choice currently closed with are

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drivers set accreditations that competitive services space and takeaways or opportunities. to win quarter, ad and XX% roster engagements. global XX% relationships of first and will digital Nicola. outperform apart and to key rate that of is conflicts were verification and steady digital XXXX solutions year-over-year wins accreditations In that independence the advertising of our the broader To to focus with interest. of beyond. and supported the most conclude, not selling ads, revenue seeks With in our also that, independent half client We us second had bias year our verification as solutions, nearly revenue industry work product the trust sticky grow. number turn of continue fuel and environment suite perspective XX% which and verification DoubleVerify's were a remain and solely let over by $XXX,XXX market-defining greenfield, and of has accredited growing our the believe of scale, competitors the providing continue total with create stability company per our call unmatched grew long-term other strong XX% are measurement continue Advertisers' in than retention a our and our evidenced that relationships opted a to on average cloud In trust the more of customers, the by our will the XX% increasingly generating to solidify of our advertisers gross We may basis. customer. innovation on our confident DV recent in over customers me XX-month growth and in in we've X and the trailing of transparency, client to We growth rate strong and strongest legacy

Nicola Allais

the afternoon, the We're Mark, profitability revenue to have of quarter everyone. in year. first strong half and second you, good Thank growth pleased and delivered and

to improved this XX% and display premium-priced year-over-year. MTFs product, QX on XX% products in our in our our third the full XX% While second revenue. we which Activation good measurement, was XX% quarter uncertainty outlook quarter, of driven and revenue standard visibility driven programmatic in our and Advertiser current by macroeconomic growth bifurcation, by with year-over-year the dialogue XXXX, closely MTMs for to of up measurement were the programmatic year our international first and existing be led revenue regular advertisers. revenue Brand premium we the of XX% engage and raising Suitability includes ABS in revenue continue followed have and the an growth impact year-over-year, geopolitical growth to upsells In to video continues primarily are magnitude and monitor by volume-led. in with the which XX% grew grew initiated growth XX% expansion which price revenue, supply by activation revenue, of product year. due users. revenue continued Authentic quarter Total in side activation by mix, outperformance XX% the delivered was growth we

outset a of performed continue their DV activation social contributor we solution. followed the product through in OpenSlate in to in and implemented by growth, video to increase first bifurcation XX% our was largest of expectations. the advertisers with successfully activation revenue was impact last sell the to relationship new clients with to at price of Similar programmatic impressions the the ABS drove quarter, using quarter. of the non-ABS number addition, year-over-year that solutions display during In revenue second Growth the and line

when continue Norwegian were pioneering respectively. products and as enterprise by last CTV is quarter on measurement to scale their tests screen on volumes leading volume expanding screen social and Revenue industry-leading in strong first volumes highlighted growth the of Morris. and Cruise displayed including was measurement. devices of solution evaluate Diageo, in primarily measurement solutions. that are of largest advertisers year such turned ensure TV XXXX, certification we offering, usage first grew Philip grow on. regards activating geographic in new by Lines half driven XXX% and MRC-accredited and Screen to XX%, grew launched world's the as customers measurement, our our only that XX% CPG and Fully-On ads to DV's X XXXX, With signed and XXXX apps the Turning ramping social CTV particularly social to our and XX%, CTV an attention of the the driven

publisher driven grew revenue and signed signed as includes Yahoo! Year-over-year last wins deal Amazon, generating year seasonality the also only impact As in that by Mark and clients with International see grew LinkedIn. international year mentioned, well relative XXXX of we remains continues second the the Twitter, for revenue year recently as it our and for XX%, to perform of continue with product this U.S. with such platform from expansion were $XX revenue OpenSlate as Japan, Reddit EMEA our measurement impacted $XX million opportunity as with of Twitch growth of platforms the revenue publishers. measurement our TikTok, was growth an coverage represented a similar full of million year-over-year new side overall OpenSlate XX% in long-term and growth the revenue significant the opportunities In Meetrics. on and future dollar. quarter, in Supply platform XX%. new such with by ramping growth the and APAC to of and of business. of social deals XX% avenues as to from strength growth measurement acquisition between growth. International new line expectations revenue, XX% particularly to expansion Overall,

expenses. more contribute primarily meaningfully support driven development, versus faster-than-expected by revenue for grew we XX% XX%, second programmatic model which and Non-GAAP Mark reflecting and our G&A, This grew of as of in and was expected of marketing social scale. quarter. revenue cost activation a we supported momentum XXXX. our items as our further sales, integration with top arrangement of expenses which building comparability, by the total stock-based our compensation of revenue. are a discipline cross-sell partners expenses by increased million, percentage and operating As other in to product sharing our the Shifting growth revenue as of efficiency customer to operating are Cost excludes described, $X.X solutions, acquisitions activation line overall for

of end $XX a top XX% result, margin the our As EBITDA EBITDA adjusted QX million exceeded of adjusted and guidance. of

We of expected our with expenses head growth manage we increased expense on Most operating operating due In our revenue added to costs. in our employees second XXX year-over-year basis. growth. count line continue quarter, is to the a

expense we plan significant any Our see we and should environment. changes management agile, operating react in our to is swiftly

provide with gaming remain allocation regards leveraged global Finally, million audio operating X cash believe approximately map, from valuations quarter, negatively and such favorable as a and investment for and footprint. to activities with we of time. economics over generated and solutions. long-term the our to accelerate our remains including million high-margin as $XX hand more to become disciplined reflection more the attractive likely rates $XXX adjacencies cash impact strength and debt. approximately through capital approximately is delivered and quarter the we climate the the balance million income, M&A, expand In of high-growth DV We of on software The net our ended of advance opportunities product sheet companies second road advantage our and open net of interest investments, up decreasing long-term of strategic $XX with will that rising growth technology an

guidance. Now turning to

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

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

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

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

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

for guidance prudence digital potential regarding spend the the reflects the impact of year in second Our a pullback half and general ad macroeconomic of uncertainty.

As revenue raised the quarter of mentioned our by magnitude have full year earlier, performance. guidance our we I second

our engineering intend expectations capabilities infrastructure in to hiring environment and to consistent of and this learning out growth. enhancing Given our the our machine we investments talent favorable growth sales capitalize in strong continue IT our more and on further revenue year, support a building tech add to

close, $XX for we As of we In employee strong office to expenditures a uncertain this XXXX, previously we third regularly business. capital with the environment, outlook $XX world as delivered between around most successfully continued half, for we relocations, base. reflects plan our Based engage which in to first incur line we return and on we go our our and resilience clients expenditures the year. And range ascertain to of ahead. significantly capital quarter space second office their with Operator, open to the that, of to questions. continue growth and expect commercial office the the on in the larger full including of and a year disclosed, please timing spend for geopolitical million macroeconomic rest we will execute as expect with investments the to spending the of end our quarter. renovations by To million

Operator

Instructions]. [Operator

from Our Arjun first is William Bhatia today from Blair. question coming

Arjun Bhatia

I'm a back quarter, on seen what to their of you the customers. And Congrats in any Perfect. been seems on half in spend Mark, talking It can that you about are any start more in months tone? obviously that you but obviously that they second have with maybe in just curious, guys. I to the want hear go, We're your to change just think just you. saying half maybe you've -- lines, those to love have do ad the few great year? guidance? outlook here, August And how your Nicola, so for would into visibility there. about further along you show a like

Mark Zagorski

how strong it something the exceptionally And expecting going business environment, the an the like into we is. there came considering wasn't there's off Arjun. still into around our numbers we quarter, and got and question, nice for talk relatively much QX strong. to visibility strong the second momentum which half, is we remain still half, QX. some Yes. We've Look, why we first into macroeconomic guided good that Thanks think the weren't for

So we are And super good look, said, moderate space. feel totally to we in that's factored we're about not But potential but some -- that. environment. not we as why in we are resilient, we've a pullback slowdowns the given macroeconomic immune increased probability of the

marketplaces We platforms of there's that CTV, like puts our much advertisers programmatic, conversations a what position. implementation us very social that regular even and one be. think, like it's spend, in with are spend or the across whether our us, pullback in to got different across get across will ROI-driven to sense part direct, and type of platforms others, good if a premium we've And across I mobile their in so just nice sectors, for diversification is a be

we're good to the the do add? based weather we but anything if we're a really you look, Nicola, space, So going have in so else to other companies position [indiscernible]. to think on in storm like

Nicola Allais

this XX% as Arjun, obviously, we're year, rate qualify things moderate thing strong than steeper can a the very the would today. is we in can assumption things an still something And only on what very guiding I a But which is The a It's for I based move to Yes. we're what number. quickly. saying we it's of performance. would seeing say, slowdown. could have move growth and that's quickly, react But

Arjun Bhatia

going the obviously It lot there's of And helpful. another like super if Mark. just pipeline, then That's I it. on Got a product one, that's seems innovation just can, on.

lot are capabilities with 'XX into your either and in that there as that customer-facing teams as new and and back in good sense the to on them coming But drive here? -- do talking the just you stuff specific growth have the new well the their that to early up have coming? a You keep that is products date to half year your all your or It's are of 'XX. launch in How you prioritizing into customers a problem that customers of half there you're back a can expansion you're have. and

Mark Zagorski

into new coverage we [indiscernible]. as -- sell we've a sectors, into but because also expanding taking done solutions advertisers. for we've broader relationships relevant an continue you our of adds and we metrics, a a And makes as excellent of just new coverage And That lot we're basket with it bring goods of and actually great as to relatively a continues like opportunity When but It's grow. easier gaming complexity sectors, to creates well. look, with like really at which solutions goods includes areas our advertisers, move like point, new layer our new Yes. look our has attention up that that question. basket is it's core a of of sense that to building new

what obviously together, for And example, lot ABS create another of sense As a and thing for. want a to to we layer, would case, to that in another an is ability have simple we that because really bundle new launch advertiser finding working we're products, is adding challenge new with, we're our make which measurement, is advantage. like our bundles continue and to that

I that So market. outcome we is further advertiser, been to incredibly or around do better it's for how approach think we for full driving outcome, an which us, is ultimate simple found bundle the We packages a making products at we there's package [indiscernible] our work think example, ABS together. opportunities We the as how of growth look how measurement. successful, for and with the

Operator

Securities. Youssef question Squali from Next Truist coming is from

Youssef Squali

seem be to see. great definitely to yes, the you trend which And bucking guys is Excellent. here,

question X-part for a maybe So me.

maybe you that? XX days, have quantify guys this. spend? days, First, XX just on would that discuss cross-selling how particular, your traction Any seeing. the second, outperformance seems do your it products, the newer quarter. seeing ABS kind Custom Nicola, XXX like you much for in solutions, Is products, it -- typically Is core But was it mostly demand and like Can visibility your can you're into of linearity the you you the prebid like the mentioned seen and visibility days? upselling you and the helpful think throughout are I and you've from quantification that And Contextual. be trends those?

Nicola Allais

Yes.

Youssef, first the I'll the question. of part take

As have the past, the on of X that can we tag that so business. we've us side about And campaign. providing customers on months -- follow we based the visibility that's that information actually are said blueprint and our in greater out the to the measurement

the are the into have So transactional. the a that campaign Activation measurement QX what obviously for we side. flights more we our lot really visibility is based customers know on on is

that's basing we're on. so And our visibility what

of part mean, basically within we revenue intramonth now your was variability second impact the didn't the the each X growth. and line quarters are XX% X top The into have total growth actually months we at question quarters, year, The quarter. I

actually it's consistent. So been fairly

Mark Zagorski

to nice growth Yes. around new kind small And the Contextual's with of about the and And Custom but look, got base kind want product maybe of that [indiscernible] there. XXX% the still off in growth I'll pick I mentioned up certainly in we relatively year-over-year really adoption. momentum see think some of on we've new we -- the solutions our

each mean, we alone, that, continues across impressions I and to benchmarking gain and different attention. measure about now verticals. XX think in QX campaigns I billion on XX done continue measured we attention traction. we're to XXX month We've

there. getting is attention So

prebid that's solutions going market an that, Custom it's with easier targeting. look competency taking comfortable a to And we always or It's also like bit When noted, it's of activation a launch. that a take core product. a time. contextual with is in little Contextual, a we've As at

super seamless. longer just we're time. With I like an us. new a So a for which really lot exciting on attention. -- it's little and something can is big more category, confident think attention, takes building be entirely we're super a But It

the potential a in are think it advertisers leaders are and days like it. We on huge we're that the are We shows us. the kind interest of the space. of getting small for And I that dollars early, from although amount

Operator

Your Laura from Needham. next Martin from question is coming

Laura Martin

Can guys? you hear okay, me you

Mark Zagorski

Yes.

Laura Martin

Fantastic. hear? you Can

XX, have X. So ask I I'll

to first I about The one is want CTV. talk

how start questioning XX%, of CTV that big than in revenue it or or to is that So fabulous. Let's grew smaller I'm Are I XX% is question. the heard say quarter. it that? XX% with But up we you

Nicola Allais

this and of sort of entire still share advertising revenue. in XX%, is that point. this The lower on we single-digit small. share a Laura, than are is XX%, also It's Yes. -- at digital XX%, it's the very CTV

Laura Martin

Okay.

up the CTV my know. question that So a they're sets verification million better, B in doing you is part guys came conference, measurement And and said of as out for measurement. iSpot.tv we which $XXX held

got getting you the LG's connected business data, exclusives he's So you So my in talk CTV data? CTV, forward on guy a in competitive by about private question VIZIO plus is, outflanked can got position who's please? are guys television your going

Mark Zagorski

Yes.

that probably across in across across mobile, DV, platforms, million so and measurement actual we've that, beyond $XXX And [indiscernible] always currency is to to said single across the $XXX I'd this, social, prop display, how to But they verification revenue. we off, million with much a I of across think versus question advertisers, value is verify First here right? doing they're CTV. want multiple verify when core work

right? CTV big a And for across looking them do you're a more single-point advertisers for at have measurement of verification metric, our Whether we you business, I metric think don't think measurement but which to I small all that. it's think fact the allow business verification are to we're So if the part And in it's got, or something can that solutions and I one spot have. asset one a in ability all broad-based, that's as verify the to platforms, everywhere. good that's that look us this

look across every drive one we companies accredited, single that [indiscernible] are other to metrics So to the types. sources also look And but think capture like or at several different also space, us, advertisers. is several We verification it's CTV I platform. important using that whether in approach are consistent the taking to [indiscernible] that to are of I of think one have

owning we're space and the very types different So across multiple If it's broader We're delivering answer, not too. long single anything, outflanked. [indiscernible]. a platforms of a getting

Laura Martin

on IQ an borrow other some An cookies, Mark. My from is excellent just answer, one expert. to

DoubleVerify, cookies? the Or good Is off also, back for macro pushed just for Internet. And in bad open uncertainty you -- Is half just until feel the thoughts from ecosystem? you after stepping interested for on does about it that XXXX. for Google can So year cookies of deprecation you? for that talk elongate the second your another is how I'm what good happens the it cookies of entire you?

Mark Zagorski

Yes.

identifiers I without that build is in -- us. works deprecation identifiers we've we metrics. our cookie Because system gotten said think to our So this to question and cookie before, positive to we've -- neutral always

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already something you the rooms Do many our systems it, think preparing and -- great [indiscernible]. I many Investor Day, Not into they're you're move up make from perspective. which it. Because and and do, planning if of cookies I use what advantage the day comfortable no to mean, to you still else privacy can to to people the macro of through to and because business? a retargeting, it inevitable take They clean or it's -- like pushing to commercial targeting ultimately think day, like it there's happen. move metrics. ability trackers a use around if from hurt feel that more cookie-based even last at really, start other From will the -- cookie end do whether have and it audience-based does going works could so bit being that only in our something advertisers user a from are the where So of for changes, across away you use doubt. right, intervention away And are Absolutely. been identifiers government happen, because additional is a do bit, to don't first-party question individual so building going perspective, until work use able a this off they and them? to hearing have remember delaying areas data already I

to So laid going so -- cookies [indiscernible]. and has actually without some been are that think to much start in that already but I of just to do groundwork people motion is work

Operator

question coming from Canaccord. Michael next is Graham from Your

Michael Graham

just the X. ask to wanted quarter, I everyone. on Congrats

was is of of Xx lot revenue sort but mix. on that I And business. as for some rate the of grow faster wondering on applying first so us ABS. second has expansion And a in your stay customers. that you of penetration And unusual revenue could kind the The update know how are due related, activation grew of just growth on where in to expect mentioned than you international measurement. the could I that's ABS your arc as MTF to in your activation of we after wonder just that you kind overall activation product the revenue if much I'm any thoughts become measurement. fast of your disparity to of kind so part if long share high to bigger you

Mark Zagorski

Yes.

look, ABS we think growth. I on driving keeps engine So as continue love little to the that

using opportunity activation customer XXX-plus have to and our XXX ago. XX% the leaves use are advertisers up XXX ABS over XX% base a about that big we are fact after. plus. of still in of and that XX% customers year excited customers from the next amount measurement, chunk of top in That of we at look measurement, still We huge although a XXX a our go top

loved is product think incredibly ABS things significant there. we And that one that this sophisticated. the Once big a a we out, in that see seen we've premium we'll of are growth to is start brands initially, who slow. tap for I think amount I thought, we about of really hey,

now usage product advertisers. world. for the starting growing around world see awesome this as being the their move dollars we're around midsized However, to It's an globally advertisers and expand

come of with -- still ABS amount we good growth to from of a see ABS. So runway

using certainly -- a we the But So -- grow other want think pony be to to not I things one-trick in Custom because that have we've like consider in things as and other activation ABS. are there. activation got we tools don't continue activation pipeline. -- We that we're -- also Contextual a in both to tools in comprised activation growth of is measurement, think the room still activation I as of from With social regard amount have versus as OpenSlate. implementing programmatic good well prebid

drive growth. got Measurement we've which sales array probably done to there innovation kind us just bit So is of a solutions tends more growth I faster. to on think be stickier, good of a that there in more a allowing that cycles, side, longer consistent we've bit

tends growth programmatic-type bit that a a campaign-driven more but implementations. we lot It's be more it's can number. keep a less more steady to more number it's bit sticky, a which flexible. grow fluid of It fluid because like -- activation, and bit to a So like probably of faster

to that slowing I add? we runway as I of does that growth else Nicola, sticks that I at So be well. think measurement down don't on activation on see tools. activation is where -- ahead? don't strong as it still and and programmatic that stabilize large Will anything and as starts know, to point could multiple see moving some

Nicola Allais

The we be needs TikTok, you underpenetrated just There business, starting, think other TAM if there, there large the part a wall that opportunities are to thing is about I measurement Meta. you would say, measured on about still Michael, is still right? of the garden if think

where advertising obviously measurement follow the side. are I there's but think a still our perspective, going quite we the untapped bit So I from think dollars on

Operator

coming from is from question next Boone Andrew JMP Securities. The

Andrew Boone

investments like it with objectives? you Can this Or the helping you we do was today? think a start begin international? ad then off to take guys I'd going you your performance that to Custom lower you Is investments secondly, already international, clients last and with Authentic personnel more in think about do progress later FX about Understood that about ramping And how about for forward? how to year. on products. With how just made funnel talk that on can return Attention headwind talk Contextual we Or potential quarter. opportunity? this like, the this month, Is this share? sounds those in widens significant bringing testing,

Mark Zagorski

Sure.

further ABS spend the things content new some optimize business the are attract like -- evolution ultimately for look on But looking and we've more different right? protective X and to placements us more ways have Custom well what's moving Contextual always They that looking by tools, really we about, and refine that little clients, some So left interesting it's And allowed just advertiser it out particularly drive different works. plays By noted, around haven't and drive and attracting bring talked who to performance. in we garbage So breed on down -- how ultimately I getting because in to protection qualify -- against so. a are And really using funnel of us. what is, the and tools, a attention bottom funnel, do as like tools in talked folks with is as who definitely It's ads our from drive results, it's performance contextual their new those this with but how to performance perform of their Attention to are system. right? which of you to got to before, more, think outcomes. the safe good going are our not to overall the concerned ways things to we've brand actually

-- part all just it's -- stuff of great. up of a I it think to that which them, is to advertiser. our it us type we while sell the too, is there, does get open which cool And is new to other us it -- So about in allows

who add-on to look are performance. solutions our but advertisers optimize we at maybe these funnel looking to Additionally, as lower core less still

So or their may driving be brand be suitability brand brand. and goal still may safety #X

campaigns them. refine for if it's a However, add-on this great those can by the they continue performance of using to tool,

on and of which safety. verification are performance our some our of sell think you and to broader for allowed is we basket guys attracted both this always I goods who us saying, can new our appeal of So relied great. customers current types to have customers then tools We've "Yes,

important So I time. us Now helping from a think these grow benefited to that's and clients to clients by over you is look both and continue And product as also great better new outcome." new tools. can -- I so a current drive why at as we've it's We've attracting pushing insight. innovation refine we

nailed you second outside marketing of the fact The pretty that U.S. investment, question resources, particularly we of the year, part with into international heavily I and sales your it on last leaned think

continued there rate, rate, critical outside We which that when are a of our they're deals. in definitely we at the in our are seeing and win in U.S. our the been a the win right? the force sales U.S., growth deals, companies but for greenfield results global in lot outside of not So have look us only having in support closing

and done list we've closed scale that on deals. of of growth, from new So the of look is of even our the resources. you some on investment probably not or the when at those look growth the deals I of that our scope names U.S. think And the outside you the at we've size It's and some return best of quarter. in last indicator

clients the So well. right? of right, sales folks like kind as that we've were But domestic global these the think So always also U.S. clients think And outside are global we team. said I underinvested by British well, were huge our paid Banco supported off of they're I Santander, Airways, investments and

we're of size bigger advantage to at right of as deals, well. deals global think global take now the those I investment bigger support

Nicola Allais

U.S., of is over last which us. spend the international I the outside quarter think second And not year is The longer search. -- would of is, measurement. term, that if outside our the is there Yes. XX% of was the XX% excluding to U.S., view related of are thing on if yes, you revenues FX, add only other headwinds in But to particular

we there gap opportunity. an a as there's see So that

made, large for As are us. the it a investments opportunity Mark and said, very remains

Operator

from Karasyov Research. question today next Cannonball is Your coming Vasily from

Vasily Karasyov

of Walmart the wanted relationship mentioned I ask questions to about with a you new Group. the couple Media

not correctly And you retail how about for -- correct, understand I the you. nature measurement so do is, into that, opportunity is the growth a one, fall question if talked number bucket? please question great the explain relationship? media, of And second it you would that's can what So the relationship that

programmatic As a shopper also doing work Desk, with you Media marketing. with know, one of your of partners, is lot Walmart The Trade

So you it if an your think you that something us too, as about if and and I you that's prospects of in tell terms was positioning opportunity, how there. see your wondering could

Mark Zagorski

Yes.

Group -- revenue. activation was So falls Walmart qualifying in just Media it expansion, our the into it

really so this that media have. prebid activation So they step thing network viewability it the the retail And falls our some just a to revenue. interesting -- solutions into neat about revenue relationships, we items line with is span them take all X about that part back,

into for relationships they platform the So which we're for people relationships are providing some a network solution may directly of media use in retail that buying them. these

are they them with goes their directly to themselves are retailers do the safe and clients the that in buys across or secure. that of that Some spend ensuring retarget

well. as deals measurement real are them of some And

great. So them, earlier, folks them of each And our well thing I -- we're buyers, nice because work activation we've as the that flexibility media think there. in our about noted who sellers can or excited or our tools ability programmatic of to which as platforms a implementation, those the and out solutions a to media really across data specific with programmatic all implement Trade them of And that as in itself that's why retail about them regard are these stand-alone to the used needs we supply for in as so platforms, are we've aspects as able varied. I networks, how is are of measurement space. all a lot in as arsenal, covered space, got we Desk got their And be work the our with platform one the set, advertisers. with metric get the solution is With all retail

with not working obviously, Trade best what we Desk tools with think, ours with Walmart. But Trade certainly And strategy coordinate folks those a like great drive outcomes is on I like doing Walmart. possibly the of a to great Trade So can. Desk, they platforms we're relationship relationship with have they're to Desk the directly with

Operator

Your coming from from Murphy next question today Mark is JPMorgan.

Arti Vula

on the This is Mark quarter. Arti Murphy. for on Congrats

the they're heard new some experiencing change logo Are acquisition. look software that guys other lot of we a structure you when with macro in question, between the companies we've seeing across any headwinds First environment, land-and-expand the motion? from

Mark Zagorski

become It's in you willing great balance expand, great actually are they're a the key land, is if the mean, buy through obviously, bit adventurous, because with our that they new. more ability more question. we something to us the when a is with close with more and that clients into the the trying challenges them with new challenging a than for drive to which And totally have you customers a clients. have solutions, to potentially I you they of Because ability the is have heading right? than challenging times, the less confidence expand have value relationship upsell solution volume to that

declines it right? first year. a in it so. your blue And make customers selling a ability that X,XXX any really greater key those I in Does it's growth make particularly I flip brands, does, you customers So to are position the new these the the I switch, is, and with -- to think leverage than recurring bulwark It tougher? us so fact revenue sticky little new those that we've brands, in against relationships selling gives over But to a the a equal half can seen got land? global we're do your switching, good the We've of time. or strong expand think, advertisers chip for really in challenging mean, side, does heavy the on

a grow activation them as to customers, current with percentage upselling continue noted, We of with we've larger to our solutions year-over-year.

advantage So switching that to continue and some to can position take of I advertisers platform sticking a singular solutions of the with think they of caution expand we're maybe in with. a good increased

think yes, insight. it's a So I good

well we're acquisitions. new think positioned weather in to any I slowdowns

Arti Vula

exposure than so better then given the in the you seeing broad second terms And some guys others? have, industry divergences performing guys one, it. of any you Got are verticals

Nicola Allais

So we've return from travel. far, is for seen a CPG points very low what and

we're of points year not So of much seeing still as low was better it it where above those of pickup where performing a fast are The for industry more as sort versus as growing auto. but COVID-impacted. a comparatively one last is is XX% remains the us, our industry others. not -- as -- revenue. not single It is generally for But us

slower sort not growing. the that huge auto answer way other. one But it's one or seems So question, to is your of to be a overweight the still

Operator

Eric Your Sheridan Goldman coming from next from question is Sachs.

Eric Sheridan

Maybe I two, can. if

the like year, kind versus to us continue If to back finding the of you of philosophically invest as understand this you and the in how in to next into we look ways money that now about help end about thinking the business zooming revenue put outperformance drop maybe comments it couple of investing of either you were up in between over out bottom to and can line year it speed the to this allowing doing real-time business think better in quarters? for And some move out, should 'XX could we your made inorganically be the and as how out decision the we some agendas then longer-term process you versus next? organically of beyond the M&A up about

Nicola Allais

Yes.

still point are -- of mode. The that we start. very I'll changed haven't Eric, growth So we in our view a

that be we're invest. we that continued we to through due And investments so year We into year showing before. before the priority the do part are will reinvest that results COVID, in this feel the to business. the and the the Even strongly made year first to

on leeway revenue investing. to XX% if invest. But it So additional of to terms falling consistent We is gives in our things dollars. remain terms to continue to like it our margin, trajectory. It were change of quickly, the do are right, a to and not certainly about eye change bottom growth. us we keep the feels priority they is investments change, enough And looking in but more line

In it. of operational keep M&A versus at looking of investments, yes, we terms course,

over an feel disciplined as acquisitions, know, of going market a more after growth and strong going the cash. environment to go does gives such like million we us $XXX we're organic We have, to because you so to acquisition [indiscernible]. to but as favorable become it remain opportunity to It very which for is is the continue

Mark Zagorski

Yes.

the continue is scale. we're to add, the this little So opportunity key scale bit of there color I to going think And to mentioned to just business. lean in word one Nicola is

bigger I as virtuous a cycle scale mentioned think a we we've we smarter. get drives as that grow company, before where

get deliver As we're we to for better our smarter, advertisers. able results

able do not to on and base, basis. better to pragmatic the spinning. virtuous we which going to drives something right? feed, advertiser a continue certainly scale, so from As results, to grow we'll deliver think we're we're is and we're But And stop cycle that going retain that I wheel

think So us. those covering continue in and customers And I is sense new those to really that right? new important that acquiring scale as are for us. long being to innovative by scale they as are drive We we'll innovations make -- make through investments sectors,

the now, right future. for foreseeable it's so And

Operator

Your Mark Kelley from Stifel. question is from next coming

Mark Kelley

offering et Authentic the Attention newer the that do audio, first the My to that that it interested indefinitely, that you're something starting guess think to near product to you I it's beginning. on term on and question product? in Is that near really was Or is get the you'll just on just is And folks some then offer at about second medium channels that some dial not accommodate. talked plan something cetera? then you you moves question that premium what Snapshot of that? the term, gaming, do whether

Mark Zagorski

Yes.

great Some Mark. questions. them, for Thanks

side, are size about at advertising in -- audio We first it's an in-game look sectors. same we the the opportunity. advertising as roughly and And advertising On interesting. look billions speaking, at

of CTV, high-value -- audio, whether solution. solution, parts, our coverage right? of across -- incredibly is sum gaming, the kind For we together our greater the mobile, them when them than greater desktop, sum they drive having us, like it's parts say? what an those than individual different The of the of the all is for of whole at proposition all So of it's areas, all look social, do

to So we to individual part dollars going X makes million that just don't we're of gaming places, one and more valuable. of They more make and just look million us being, become becomes of at as solution clients. a stickier says, used everywhere, audio. any or more we're in space with X bigger It's verify and the to we more it value look going off okay, prop our as dollars make our

a but both it relationship and gets it we into something with the our And And move to new It just each being adds fact well. to goes bigger. makes shake So a sector of as also advertisers think that it that to because new whole. that creates is us. strategic lose as incrementally pie a bigger bigger whole our stickier clients not just value added proposition that but up the to from -- sector, harder gets

into audio. I excited think about gaming. We're moving we're about excited So

on you still in coverage, question, earlier the matrix. end to small, an mentioned staying Nicola a is of probably important have with coverage As don't time. you have part if another you're CTV and CTV gaming a like going don't up customer not deal getting it's that It's over or call but

So they're essential to us.

everywhere. I for think be it's us to important

like social in to or space. only measurement about tenure going one overall revenue you're I something right? a you're it's only -- have I And each And incredibly in solutions verification only think stickiness, being that's doing at itself measurement across trajectory, but long this sector going not All to If us, always point something not across you're everywhere. valuable. that to CTV be why as one lived, of tenure covering in doing you're is is social, them cover add or for that look short the

that's think part the your first of question. I So

The on second Snapshot. is

And space. I It's attention out. roll think vehicle. to to get an as we're in it gets really, on a going vehicle this see to it. We're us the more for upsell this standardized going uptake is socialized

and premium further solution there for it at customers and point a an in take metrics it attention full-fledged the paid at it some we're from think product and for front probably move our now, solution. option to think a enhance to them get to freemium a us But Snapshot is looking road. even marketing down I the of sell investment I as

Operator

Patterson Justin from coming is question Next KeyBanc. from

Justin Patterson

Great. Two, if I can.

there. a broad [indiscernible] now, it within that same about how the but of lot MTFs looking M&A just heard wanted excuse these attractive time? companies me, campaign Curious And just to market First, the curious add that deepen transactions pipeline might a hear little advertisers, opportunities through it's seems -- about things how be for I relationships imagine at could efficiencies. some I'm to you've flowing of [indiscernible] that some . I for sales about to -- a your more potentially see or volatility, just And I more beta [indiscernible] changing. closed the you number like automator. think delivers tease MTM, there's to out and secondly, hear days realize more bit to customers like over

Mark Zagorski

tend the things a please these what obviously, at front. lot rapidly because But to accelerators, markets of Yes. this, of move like don't our I in about but cool decline features don't may chime want mean, And out are expectations much we because of we money, map they're of larger into be make markets I but a kind aren't certain I'll kind talk And a great time, overvalued for of and make be choppy opportunities platform. money. of their M&A those road when do most a we're make businesses funding call And little looking value the of that in. or accelerate really lot to sector. they run little particularly bit tuck-ins A think to because Nicola, really they technical they really buyers. that essential

multiple So in is in another extend I which think basket then one in increasingly of interesting managing incurs entire advertiser opportunity. single-point look choppy solutions I solutions a like thing provides as allow question, it become goods advertisers reduce to noted that is that multiple overhead, there's that earlier sector, overhead. our and challenging just If of. to And happens that buy to markets an for us really

get to cut. you're you I X," and solution have looking advertisers are manage are manage things to or can at, I a "Hey, if going point So X

solutions challenging is them easier a time kind which the So dovetails too, for more it across is that our a package, and it there's us We goes part big of to better no is your for tags ability troubleshooting think goes to those amount into self-surface make launching of low automator. the in solution actually proposition. management handholding be lowers about second question, manage, advertiser's down. with a our only lowers it it's of them but much amount The our creating all I the puts of we those a point not engagement, It point because -- overhead do think, into tag this more so us creation, advantage to solutions down. actually bundle have implementation which ad of position, for of campaign really, to because servers cost, tag also

a a for workflow, It's self-service more tools. this win to everybody. give less streamline for management them I it win think us is advertisers do so. So a to for win It's takes the because

about but a of But lower So later the the in half M&A tags. we're we're our excited this second its we're year. about and add front? overhead costs in said, it. optimistic to it's really hoping process measurement launch on Like half the ability early, the I streamline to of second general anything or for this year the Nicola, of implementation

Nicola Allais

No.

captured Mark it. think I

is going map. going for solutions is The [indiscernible] just to that are to right obviously be the just accelerate it think to a our us environment. remain better road key I

So...

Operator

any our back further end to over We like question-and-answer or turn of closing have the reached session. comments. the for I'd floor

Mark Zagorski

Thank thank just everyone want for you. joining to us I today.

to excited We'll year you as forward soon. Thank We results and year all are half about second of well. in talk half in performance super the looking the first our the you. to

Operator

That conclude today's you. does Thank teleconference.

day. thank We this participation for wonderful You have today. may and disconnect at your a you time, your line

DoubleVerify (DV) 7 Aug 222022 Q2 Earnings call transcript