DoubleVerify Stock Plunges on Weaker-Than-Expected Earnings, Outlook

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Key Takeaways

• DoubleVerify shares plummeted Friday after the developer of software for digital media advertised weaker-than-expected results for the fourth quarter and offered a soft outlook.
• DoubleVerify said it didn’t get the post-election ad sales backlash it had hoped for.
• CEO Mark Zagorsk said DoubleVerify suffered from “variability in the market.”

DoubleVerify (DV) shares tumbled Friday after the developer of software for digital media put weaker-than-expected results for the fourth quarter and offered a soft outlook.

The company reported fourth-quarter net income of $23.4 million, with yield rising 11% year-over-year to $190.6 million. Both figures missed analysts’ estimates compiled by Visible Alpha.

CEO Splodge Zagorski said DoubleVerify faced “variability in the market” during the quarter, which was mainly driven by “the absence of a post-election rebound in ad fork out.” He called the performance “disappointing,” but said it was caused by “isolated headwinds.”

The company projected current-quarter sales in the range of $151 million to $155 million and full-year profits growth of 10% or approximately $722.5 million, below the analyst consensus.

DoubleVerify shares plunged over 30% in original trading Friday and have lost about half their value in the past year.