DoubleVerify (DV) investor relations material

Leadership and AI-driven transformation

• Embracing generative AI has shifted leadership focus from hiring engineers to leveraging tools for growth and efficiency, requiring teams to adapt and embrace change for longevity in a rapidly evolving environment.

• Centralized management of AI token usage is implemented to control costs and ensure efficient application across teams, with ongoing monitoring for productivity gains.

• AI adoption has enabled faster content classification, reduced reliance on contractors, and maintained gross margins above 80%, contributing to margin expansion.

• AI-driven efficiencies allow for business growth with fewer employees, with Q1 margins reaching 31% for the first time.

• Leadership emphasizes trust and transparency as critical differentiators in increasingly automated and opaque digital advertising environments.

Product innovation and market strategy

• Recent acquisitions and product launches, such as Scibids for AI optimization and Rockerbox for attribution, are pivoting the company toward high-value performance workflow optimization and deeper ad tech integrations.

• Streaming TV (CTV) is prioritized over retail media due to greater market gaps and growth potential, with new products like Verified Streaming TV and Automated Do Not Air Lists driving attach rates and market penetration.

• Social activation tools, especially on Meta and TikTok, are experiencing rapid growth, with activation revenue expected to eventually surpass measurement revenue.

• Product development is focused on underpenetrated channels such as social and CTV, with ongoing preparations for verification on AI platforms like OpenAI.

• The company is expanding into new markets and languages faster due to AI, enabling quicker product launches and broader reach.

Revenue model evolution and financial performance

• Dual revenue streams are developing: fixed fees per impression for verification and a percentage of media spend for optimization products, with the latter expected to grow as new products scale.

• Scibids AI is targeted to reach $100 million in revenue by 2028–2029, representing about 10% of projected total revenue.

• The goal is for 50% of business to come from social, CTV, and AI channels, up from less than 30% currently.

• Average revenue per top 100 client has grown from $2.6 million in 2022 to $4.5 million in 2025, reflecting deeper client penetration.

• Pricing compression in measured transaction fees is attributed to business mix, with lower prices in new categories like social and CTV, but overall client revenue is scaling with impression growth.