DoubleVerify Holdings, Inc. Q4 FY2025 earnings call

Mark started by noting Q4 delivered strong 38% adjusted EBITDA margin and 8% Y/Y revenue growth, impacted by customer campaign spend pullbacks late in the quarter but saw strength in healthcare and technology. Discussed product-led growth cycle, with new product development accelerating in social, CTV, and AI platforms. Social activation accelerated, CTV measurement volumes grew, AI measurement tools showed engagement. Nicola walked through Q4 and full-year 2025 results, noting revenue growth, expense details, cash flow, and 2026 guidance. Mentioned investments in AI capabilities, plan to repurchase shares, and diversification of revenue mix towards social, streaming, and AI-driven solutions.

In Q4, revenue was $206 million, 8% Y/Y growth. Full year 2025 revenue was $748 million, 14% Y/Y growth. Social activation grew ~60% Y/Y in Q4, CTV measurement impression volumes up 22% for the quarter. Social activation at annualized run rate of ~$8 million as of year end. Fourth quarter activation revenue up 6%, measurement revenue up 8%, both driven primarily by social. Supply-side revenue up 17% Y/Y. Full year 2025 had double-digit growth across all three revenue lines: 15% growth in activation, 10% in measurement, 25% in supply side. Net revenue retention rate 109% in 2025, gross revenue retention above 95% for fifth consecutive year. Average revenue for top 100 customers increased 7% Y/Y to $4.5 million.

First quarter 2026 revenue expected to range $177 - $183 million, ~9% Y/Y increase midpoint. Adjusted EBITDA range $48 - $52 million, 28% midpoint margin. Full year 2026 revenue expected $810 - $826 million, 8 - 10% Y/Y increase. Adjusted EBITDA margins expected ~34% in 2026. Stock-based compensation projected to decline, capital expenditures ~$46 million in 2026.

Q: Matt Swanson asked about AI opportunities and inning of AI revolution, A: Mark said early first inning, AI provides efficiency and external opportunities.

Q: Matt Swanson asked about MAP bundling strategies, A: Positive response with strong adoption of authentic advantage.

Q: Matt Condon asked about end of quarter spend pullback and Q1 guidance, A: Retail sector had pullback, Q1 guidance based on visibility and diversified mix.

Q: Matt Condon asked about social pre-bid ramping, A: Scaling with improved solutions.

Q: Alex Vagliante asked about go-to-market for social pre-bid products, A: Stable headcounts, efficient AI tools, strong sales team.

Q: Brian Pitts asked about CPG recovery and growth drivers, A: CPG did well, focus on social, CTV, and AI tools.

Q: Tim Nolan asked about CTV vs other mediums, A: Unique role in CTV for transparency.

Q: Linda Lee asked about customer conversations on AI solutions, A: Dialogue about role in new world, AI tools with human guidance.

Q: Laura Martin asked about events not driving higher growth and pricing, A: Social products early stage, price shift due to product penetration.

Q: Yusav Esqually asked about NMR and guidance, A: NMR base, growth from product-led engines, lapping high comps.

Q: Maria Rips asked about customer cohort growth, A: Mode customers to contribute more, third year of customer engagement has highest growth rate