DoubleVerify Holdings, Inc.

I would like to welcome everyone to the Double Verify Holdings second quarter 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. And if you would like to withdraw your question, press star one again. Thank you. I will now like to turn the conference over to Tijal Engman, Senior Vice President of Investor Relations. You may begin.

Good afternoon and welcome to Double Verify's second quarter 2025 earnings conference call. With us today are Mark Zagorski, CEO, and Nicola Elias, CFO. Today's press release and this call may contain forward-looking statements that are subject to inherent risks, uncertainties, and changes, and reflect our current expectations and information currently available to us and our actual results could differ materially. For more information, please refer to the risk factors in our recent SEC filings, including our Form 10-Q and our annual report of Form 10-K. In addition, our discussion today will include references to certain supplemental non-GAAP financial measures and should be considered in addition to and not as a substitute for our GAAP results. Reconciliations for the most comparable gap measures are available in today's NX Press release, which is available on our investor relations website at ir.doubleverify.com. Also, during the call today, we'll be referring to the slide deck posted on our website. With that, I'll turn it over to Mark.

Thanks, Dejal. We delivered a standout second quarter with revenue up 21% year-over-year at $189 million. beating the RAISE guidance we issued at Innovation Day and building on the 17% growth we delivered in Q1. Growth was broad-based, with double-digit expansion across all three of our revenue lines, activation, measurement, and supply side. Our advertiser business, which accounts for 91% of our total revenue, also delivered 21% year-over-year growth, its highest quarterly growth rate since the fourth quarter of 2023. We drove Q2 growth with the same focused execution that fueled growth in Q1 by expanding our relationships with existing advertisers and rapidly scaling new ones. The largest share of our first half revenue growth came from existing advertisers attaching new DV solutions and expanding usage across channels and geographies. That momentum underscores the success of our attach, stack, and scale revenue growth strategies. which leverages our growing proprietary suite of verification and optimization solutions to build deeper customer relationships that deliver bottom line results. Our recently launched media advantage platform, or MAP, is a first to market unified approach that brings together verification, optimization, and outcomes measurement powered by the recently acquired Rockerbox asset across programmatic, social, and CTV. MAP is clearly resonating with the market, enabling new and current customers to protect media quality and improve efficiency with scaled, integrated solutions that aren't available anywhere else. Further underscoring the value and appeal of DV's differentiated solutions and revenue engine, roughly a third of our first-half revenue growth came from new advertisers, with last year's Moat advertiser wins contributing roughly one percentage point to our 19% first-half revenue growth. Large enterprise customers such as Microsoft and Kenview, signed in 2024, are now scaling meaningfully, a testament to our ability to displace incumbents, gain share, and grow our engagements with those customers over time. This represents more than a one-time migration lift. It exemplifies our consistent execution to drive sustained new customer growth by focusing on our competitively differentiated stack. We expect a gradual ramp of new wind momentum in 2025, which will largely benefit 2026, supported by strong enterprise wind rates and an active pipeline. To reiterate, though, the primary driver of our growth continues to be existing customers stacking new DV solutions and expanding their usage, reinforcing the durability of our model and the strength of our net revenue retention. Our success to date is occurring in parallel to a business transition in which we are evolving our product suite to navigate a shifting market and take advantage of innovations in AI. While we continue to develop our social activation and CTV product suites, we've been able to drive strong upsell momentum of our core solutions, resulting in healthy recurring revenue growth and underscoring the durability of our customer value proposition. Our business momentum is clear on the strength of our customer relationships. In Q2, we secured major expansions with global leaders such as Rekit Benkiser, Sony PlayStation, Electronic Arts, General Motors, Lexus, Fidelity, and Kroger, all which deepened their investment in DD across new solutions, markets, or media types. We also added several new enterprise clients across retail, consumer goods, and financial services, including a leading toy and entertainment company, a major global payments platform, and one of the world's best-known fashion retailers, along with new logos like Lidl, Haribo, TransUnion, Sage, Zendesk, Banco do Brasil, Dave's Hot Chicken, and iFit. We expect our new client wins to further accelerate our attach and stack strategy by expanding both the breadth and depth of advertiser relationships. New win momentum is already evident in the evolution of our customer base. Ten recently won large advertisers now feature in our top 100, with three ranking among our top 15 revenue contributors. Their rapid scaling, fueled by strong adoption of DB solutions, demonstrates how the compounding power of our product stack is resonating with customers and delivering immediate, measurable value. At the same time, our revenue is becoming more diversified as we grew the number of advertiser customers generating over $200,000 in annual revenue by 12%, a clear indication that our platform is driving deeper engagement and long-term value. Now, let's dive into our second quarter performance across three of our key growth environments, social media, CTV, and programmatic. Social continues to be one of DV's most important growth opportunities. In Q2, social measurement revenue grew 14% year over year, led by the growth on YouTube, TikTok, and Meta, and global advertiser expansion across CPG, tech, healthcare, and media. A major milestone this quarter was the beta launch of DV Authentic Advantage on YouTube, our most advanced integrated solution to date. While it unifies pre-bid suitability, sci-bids AI optimization, and post-bid measurement, this solution is far more than a bundling of capabilities. DV Authentic Advantage introduces a first-of-its-kind automated workflow that harnesses the unique strengths of each component solution to drive outcomes that are better than the sum of its parts. Focused initially on the high-value social and social video sectors, DV Authentic Advantage will be generally available in the early September, enabling advertisers to achieve stronger contextual brand relevance, greater reach, and more efficient spend, all while maintaining their desired standards of protection. It's evidence of how DeeDee continues to lead through purposeful innovation, solving real advertiser challenges, and delivering measurable impact. As the only player in the market with this unification of capabilities, We're delivering what many in the industry have long sought, protection without compromising performance. DB Authentic Advantage has now been tested across 90 campaigns and is delivering customers measurable gains in CPMs, scale, and suitability. More importantly, it's driving incremental value for customers by expanding product adoption, increasing customer lifetime value, and strengthening our position across measurement, activation, and optimizations. It's a clear example of how the integrated power of DD's media advantage platform is unlocking new growth. On Meta, we continue to scale both activation and measurement. Since launching our pre-screen suitability solution on Meta in late Q1, we've seen solid momentum. Revenue from Meta activation solutions remains ahead of plan, with 26 advertisers live, including 13 of our top 100 now leveraging pre-screen suitability on the platform. With both prescreen activation and post-bid measurement, we are now able to compound value across the media transaction and monetize our social impressions twice. Prescreen impressions as a percentage of our post-bid suitability impressions on Meta doubled from March to Q2 this year, underscoring our expectation that this solution will be a more significant growth contributor into 2026. We are also actively evolving our initial brand suitability solution that was launched in 2024, expanding brand suitability measurement on Meta to include more categories. By connecting our full suite of pre-screened controls with post-bid AI-powered measurement, we continue to deliver the true closed-loop coverage across Facebook and Instagram feeds and reels. Turning to CTV. The thesis that the premium nature of CTV negates the need for verification solutions is not playing out in the market. CTV remains one of DB's most exciting growth drivers and a key part of our goal to verify everywhere media runs. In Q2, CTV measurement impressions grew 45% year-over-year, significantly outpacing overall company growth. CTV represented 11% of total measurement impression volumes in the first half of 2025 and 22% of our non-social measurement volumes, a sign of growing advertising adoption and deeper engagement across premium streaming inventory. On the activation front, adoption of DV's authentic brand suitability and fraud solutions continues to build across CTV inventory. On our largest DSP partner, PTV now represents nearly 20% of video impressions where advertisers apply ABS and fraud. Clear evidence that pre-bid protection is becoming standard, even in premium streaming environments. On the supply side, we continue to expand our CTV footprint through new partnerships with major platforms, including Samsung and TCL. As ad dollars continue to shift from linear TV to streaming, DV is scaling right along with them. What's often lumped into the programmatic open web is, in reality, a fast-growing share of high-quality CTV inventory, and DV is uniquely positioned to capture that opportunity. Our 2025 Global Insights Report reinforces this. Sixty-eight percent of U.S. advertisers say CTV outperforms their baseline KPIs, Yet only 57% are investing meaningfully in the channel today, pointing to significant investment headroom. And despite progress in CTV supply quality, advertisers still face fragmentation, limited transparency, and inconsistent measurement, all areas where DV adds critical value. DV continues to invest in and enhance our CTV suite and has roadmap numerous CTV activation and measurement expansions which we believe will continue to drive our CTV growth into 2026. Now let's turn to programmatic, a high growth and dynamic part of our business. Programmatic today goes well beyond just websites on the open web. It powers CTV video, fuels the rise of retail media networks, and supports a wide range of high engagement inventory that sits outside social walled gardens. In many ways, it's become a catch-all for the next wave of digital opportunity. As AI transforms how consumers discover content, programmatic has become the infrastructure layer, powering access to new, high-value, addressable engagement. Advertisers looking for scalable, cost-effective, and brand-suitable reach beyond social walled gardens are increasingly leaning into broader digital ecosystems where quality engagement is growing rapidly. dv powers that ecosystem aligning suitability performance and accountability at every impression in q2 dv saw healthy programmatic volume across both video and display formats with activation acceleration driven by abs which grew 23 year-over-year and by cybids ai which delivered another strong quarter since acquiring cybids in august 2023 we've successfully upsold its AI optimization capabilities to hundreds of DV customers. Adoption amongst our top 100 customers continues to climb, with over 50 now using Sybiz AI to optimize campaigns. We've also expanded Sybiz into the Google Ads platform and plan to launch across two additional platforms by year-end. An increasing share of our programmatic volume is coming from newer, high-growth areas. I mentioned CTV is a big part of that, accounting for nearly 20% of our pre-bid video impressions on one leading DSP, but so is retail media. Today, DV tags are accepted across 144 major retail media networks, including 17 of the world's largest platforms, with nearly half of these now supporting DV measurement on their owned and operated properties. Supply-side partnerships are key to DV's ability to deliver both activation and measurement solutions across retail media, a channel that continues to scale with supply-side retail media revenue up 39% year-over-year in Q2. So, to wrap up programmatic, it's evolving rapidly as spend flows into higher growth channels like CTV, retail media, and AI-driven optimization, And DV is meeting that shift head on, introducing new solutions and new verticals, delivering protection and performance wherever advertising dollars go. Taken together, Q2 demonstrates that DV is delivering what the market needs, which is not just verification alone, but the only integrated suite of verification, optimization, and outcomes measurement solutions that leverage DV data to drive better results across social, CTV, and the broader digital ecosystem. Existing clients are expanding their use of core solutions while rapidly engaging with new products like Authentic Advantage, validating the strategic value of our stack and scale approach, of which the Media Advantage platform provides an optimal framework and a durable executional model. We also continue to prove our ability to win and scale new enterprise logos displace legacy providers, and expand into greenfield budgets, all of which reinforce the competitive strength of our platform. Overall, our execution in the first half, combined with early traction from key emerging growth drivers, reinforces our confidence in our long-term growth trajectory. We're building from a foundation of recurring value, executing with the consistency, and positioning DVs to continue to lead as media investment continues to evolve. With that, let me turn the call over to Nicola.