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Digital media measurement and analytics provider DoubleVerify (NYSE: DV)
will be announcing earnings results tomorrow after market hours. Here’s what to expect.
DoubleVerify beat analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $155.9 million, up 16.6% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a meaningful improvement in its gross margin.
This quarter, analysts are expecting DoubleVerify’s revenue to grow 17.3% year on year to $168.9 million, slowing from the 28.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.21 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. DoubleVerify has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 1.8% on average.
Looking at DoubleVerify’s peers in the sales and marketing software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. GoDaddy delivered year-on-year revenue growth of 7.3%, meeting analysts’ expectations, and VeriSign reported revenues up 3.8%, in line with consensus estimates. GoDaddy’s stock price was unchanged after the results, and VeriSign’s price followed a similar reaction.
There has been positive sentiment among investors in the sales and marketing software segment, with share prices up 5.8% on average over the last month. DoubleVerify is up 4.2% during the same time and is heading into earnings with an average analyst price target of $24 (compared to the current share price of $17.52).