DoubleVerify Announces Preliminary Fourth Quarter and Full Year 2021 Financial Results
DoubleVerify (DV) reported strong preliminary financial results for Q4 2021, with total revenue at $105.5 million, a 34% increase year-over-year. Net income surged 248% to $28.3 million. For the full year 2021, revenue reached $332.7 million, up 36%, and net income increased by 43% to $29.3 million. For Q1 2022, DV anticipates a revenue range of $89 to $91 million and an adjusted EBITDA of $21 to $23 million. Full-year guidance estimates revenue between $429 to $437 million, reflecting a 30% year-over-year growth.
- Q4 2021 revenue increased by 34% to $105.5 million.
- Net income for Q4 2021 showed a substantial rise of 248% to $28.3 million.
- Full year revenue for 2021 climbed 36% to $332.7 million.
- Full year net income grew 43% to $29.3 million.
- Adjusted EBITDA for 2021 increased by 50% to $109.7 million.
- None.
In conjunction with its Analyst and Investor Day today, DV will publish an investor presentation that can be located in the Investor Relations section of its website at https://ir.doubleverify.com/. The investor presentation provides additional financial metrics and business performance indicators.
Fourth Quarter 2021 Financial Highlights:
(All comparisons are to the fourth quarter of 2020)
-
Total revenue of
$105.5 million 34% . -
Net income of
$28.3 million 248% . -
Adjusted EBITDA of
$40.4 million 46% , representing a38% EBITDA margin.
Full Year 2021 Financial Highlights:
(All comparisons are to full year 2020)
-
Total revenue of
$332.7 million 36% . -
Net income of
$29.3 million 43% . -
Adjusted EBITDA of
$109.7 million 50% , representing a33% EBITDA margin.
First Quarter and Full-Year 2022 Guidance:
First Quarter 2022:
-
Revenue of
$89 $91 million 33% at the midpoint. -
Adjusted EBITDA in the range of
$21 $23 million 24% margin at the midpoint.
Full Year 2022:
-
Revenue of
$429 $437 million 30% at the midpoint. -
Adjusted EBITDA in the range of
$126 $134 million 30% margin at the midpoint.
Fourth Quarter and Full Year 2021 Conference Call and Webcast Information
Non-GAAP Financial Measures:
In addition to our results determined in accordance with GAAP, we believe that certain non-GAAP financial measures, including Adjusted EBITDA and Adjusted EBITDA Margin, are useful in evaluating our business. We calculate Adjusted EBITDA Margin as Adjusted EBITDA divided by total revenue. The following table presents a reconciliation of Adjusted EBITDA, a non-GAAP financial measure, to the most directly comparable financial measure prepared in accordance with GAAP.
|
|||||||
|
Year Ended |
||||||
|
2021 |
|
2020 |
||||
|
(In Thousands) |
||||||
Net income |
$ |
29,308 |
|
|
$ |
20,453 |
|
Net income margin |
|
|
|
|
|
||
Depreciation and amortization |
|
30,285 |
|
|
|
24,595 |
|
Stock-based compensation |
|
21,887 |
|
|
|
20,527 |
|
Interest expense |
|
1,172 |
|
|
|
4,931 |
|
Income tax (benefit) expense |
|
(3,487 |
) |
|
|
(3,144 |
) |
M&A and restructuring costs (a) |
|
3,510 |
|
|
|
170 |
|
Offering, IPO readiness and secondary offering costs (b) |
|
23,564 |
|
|
|
4,910 |
|
Other costs (c) |
|
3,812 |
|
|
|
1,605 |
|
Other (income) expense (d) |
|
(309 |
) |
|
|
(885 |
) |
Adjusted EBITDA |
$ |
109,742 |
|
|
$ |
73,162 |
|
Adjusted EBITDA margin |
|
|
|
|
|
||
| (a) |
M&A costs for the year ended |
|
| (b) |
Offering, IPO readiness and secondary offering costs for the years ended |
|
| (c) |
Other costs for the year ended |
|
| (d) |
Other expense for the year ended |
|
|||||||
|
Three Months Ended |
||||||
|
|
|
|||||
|
|
||||||
|
(In Thousands) |
||||||
Net income |
$ |
28,308 |
|
|
$ |
8,130 |
|
Net income margin |
|
|
|
|
|
||
Depreciation and amortization |
|
8,296 |
|
|
|
6,428 |
|
Stock-based compensation |
|
9,787 |
|
|
|
2,422 |
|
Option cancellation payments |
|
— |
|
|
|
14,543 |
|
Interest expense |
|
237 |
|
|
|
1,973 |
|
Income tax (benefit) expense |
|
(11,848 |
) |
|
|
(5,119 |
) |
M&A costs (recoveries) |
|
2,382 |
|
|
|
(29 |
) |
Offering, IPO readiness and secondary offering costs |
|
1,099 |
|
|
|
1,915 |
|
Other costs (recoveries) |
|
2,825 |
|
|
|
(1,427 |
) |
Other (income) expense |
|
(674 |
) |
|
|
(1,244 |
) |
Adjusted EBITDA |
$ |
40,412 |
|
|
$ |
27,592 |
|
Adjusted EBITDA margin |
|
|
|
|
|
||
We use Adjusted EBITDA and Adjusted EBITDA Margin as measures of operational efficiency to understand and evaluate our core business operations. We believe that these non-GAAP financial measures are useful to investors for period to period comparisons of our core business and for understanding and evaluating trends in our operating results on a consistent basis by excluding items that we do not believe are indicative of our core operating performance.
These non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as substitutes for an analysis of our results as reported under GAAP. Some of the limitations of these measures are:
- they do not reflect changes in, or cash requirements for, our working capital needs;
- Adjusted EBITDA does not reflect our capital expenditures or future requirements for capital expenditures or contractual commitments;
- they do not reflect income tax expense or the cash requirements to pay income taxes;
- they do not reflect our interest expense or the cash requirements necessary to service interest or principal payments on our debt; and
- although depreciation and amortization are non-cash charges related mainly to intangible assets, certain assets being depreciated and amortized will have to be replaced in the future, and Adjusted EBITDA does not reflect any cash requirements for such replacements.
In addition, other companies in our industry may calculate these non-GAAP financial measures differently than we do, limiting their usefulness as a comparative measure. You should compensate for these limitations by relying primarily on our GAAP results and using the non-GAAP financial measures only supplementally.
Forward-Looking Statements
This press release includes “forward-looking statements”. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “plan,” “seek,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe” or “continue” or the negative thereof or variations thereon or similar terminology. Any statements in this press release regarding future revenues, earnings, margins, financial performance or results of operations (including the guidance provided under “First Quarter and Full-Year 2022 Guidance”), and any other statements that are not historical facts are forward-looking statements. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. We caution you that the forward-looking information presented in this press release is not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking information contained in this press release. These risks, uncertainties, assumptions and other factors include, but are not limited to, the competitiveness of our solutions amid technological developments or evolving industry standards, the competitiveness of our market, system failures, security breaches, cyberattacks or natural disasters, economic downturns and unstable market conditions, our ability to collect payments, data privacy legislation and regulation, public criticism of digital advertising technology, our international operations, our use of “open source” software, our limited operating history and the potential for our revenues and results of operations to fluctuate in the future. Moreover, we operate in a very competitive and rapidly changing environment, and new risks may emerge from time to time. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make.
Further information on these and additional risks, uncertainties, and other factors that could cause actual outcomes and results to differ materially from those included in or contemplated by the forward-looking statements contained in this press release are included under the caption “Risk Factors” under our final prospectus dated
We have based our forward-looking statements on our management’s beliefs and assumptions based on information available to our management at the time the statements are made. Any forward-looking information presented herein is made only as of the date of this press release, and, except as required by law, we do not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.
About
View source version on businesswire.com: https://www.businesswire.com/news/home/20220224006165/en/
Investor Relations
IR@doubleverify.com
Media Contact
646-535-9475
chris@crenshawcomm.com
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