DoubleVerify Holdings, Inc. (NYSE:DV) Q2 2024 Earnings Conference Call July 30, 2024 4:30 PM ET

Company Participants

Tejal Engman - Senior Vice President, Investor Relations
Mark Zagorski - Chief Executive Officer
Nicola Allais - Chief Financial Officer

Conference Call Participants

Youssef Squali - Truist Securities
Eric Sheridan - Goldman Sachs
Laura Martin - Needham & Company
Matt Swanson - RBC Capital Markets
Andrew Boone - JMP Securities
Michael Graham - Canaccord Genuity
Raimo Lenschow - Barclays
Tim Nollen - Macquarie Asset Management
Brian Pitz - BMO Capital Markets
Mark Kelley - Stifel
Vasily Karasyov - Cannonball Research
Yun Kim - Loop Capital Markets
Omar Dessouky - Bank of America

Operator

Welcome to the DoubleVerify Second Quarter 2024 Financial Results Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions]. The question-and-answer session will follow the formal presentation. As a reminder, this conference is being recorded.

I would now like to turn the call over to Tejal Engman, Investor Relations. Thank you. You may begin.

Tejal Engman

Good afternoon, and welcome to DoubleVerify's second quarter 2024 earnings conference call. With us today are Mark Zagorski, CEO; and Nicola Allais, 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 on 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 to the most comparable GAAP measures are available in today's earnings press release, which is available on our Investor Relations website at ir.doubleverify.com. Also during the call today, we'll be referred to the slide deck posted on our website.

With that, I'll turn it over to Mark.

Mark Zagorski

Thanks, Tejal, and thank you all for joining us today. The second quarter was pivotal for DV, as we reaccelerate our revenue growth trajectory, fueled by ongoing momentum in social and CTV measurement and a sustainable upswing in our supply side platform business, driven in large part by the burgeoning retail media sector.

We achieved the high end of our revenue guidance and significantly exceeded our profitability and cash flow expectations. We grew second quarter revenue by 17% year-over-year to $156 million with double-digit revenue growth across all three lines: activation, measurement and supply side. By increasing revenue and reducing our cost of sales year-over-year through the implementation of our Universal content intelligence tool, a proprietary AI-powered video classification solution and other investments in technological efficiencies, we achieved an 83% gross margin and $47 million of adjusted EBITDA, representing a 30% adjusted EBITDA margin. Additionally, our net cash from operating activities grew significantly, totaling $36 million for the second quarter.