The verification industry continues to chug along.
Yesterday, DoubleVerify announced Q3 earnings, and dropped some pretty interesting figures.
But first, the basics: the company beat expectations, with Q3 revenue growing 18% to $170 million, above the projected 17%.
Now for the interesting stuff:
- DV claims it won 70% of the RFPs it participated in for the Oracle-Moat business. Fascinating!
- Over 300 clients are now using DV’s attention-based measurement product.
- CTV measurement volume—the number of impressions measured—increased by almost 60%.
- The company’s measurement tags are now on 112 media networks (Best Buy, Instacart, etc.), up from 63 in the same quarter last year.
Why This Matters:
DV is basically claiming a win in the war for Oracle’s adtech business after Moat’s closure. While direct foes like IAS, plus startups, pursued these accounts, DV ultimately landed big brands like P&G and BlackRock, effectively saying “psych” to the doubters.
Digital Remedy’s CEO Mike Seiman predicted DV’s victory in a PMW piece months ago, citing their channel representation and resources. “The verification market is currently rife with startups and their backers all vying for a piece of the pie,” he said. “They have a vested interest in seeing Moat’s business shift downstream instead of to DV and IAS. Unfortunately for them, that won’t happen.”
DV is also benefiting from several key industry trends. Interest in attention-based measurement has surged over the past year, and as CTV grows, DV is advancing its integrations to measure these “walled garden” environments (they’re the new social media platforms, in that way). Retail media is another high-growth area, and DV’s growth kind of matches the momentum seen in Perion’s earnings announcement which we covered earlier today.
Experts React:
Here’s CEO Mark Zagorski on the earnings call discussing the company’s success with attention:
“So attention is something we’ve been talking about for years. It’s starting to slowly gain steam. We had… really a 300% year-over-year revenue jump this quarter, which I think is substantial, of very small numbers, but it’s getting there. So I think on the measurement and metric side, we’ve got probably the hottest kind of alternative performance metric right now in attention that everyone is talking about. So I think we’re good there. We’re going to continue to invest.”
Our Take:
This year has had no shortage of controversy around verification. However, DV earnings bear out that brands appreciate the technology and are continuing to invest in it. IAS will report next week — more to come!
