DV

Mark Zagorski mentioned strong Q1 results with 10% revenue growth and 31% EBITDA margin, driven by product innovation, strategic and financial roadmaps. Social activation and measurement products, streaming TV verification, and AI-driven solutions are core growth catalysts. Social activation grew 92% YOY in Q1. Authentic Advantage on YouTube is expanding rapidly and on track to deliver $10 million ACV in 2026. CTV measurement impressions volumes grew 28%. DV joined Ad Context Protocol (ADCP) to establish standards in agentic advertising. Expanded tools to protect ad investments from AI-fueled challenges, including DVAI Slop Stopper for social. Focused on capitalizing on AI chatbot marketing ad market. Nicola Alias discussed 10% YOY revenue growth, 31% EBITDA margin, reiterated full-year guidance. Stock-based compensation details, cash repurchases, and free cash flow conversion expectations were also mentioned.

For Q2 2026, revenue expected to range between $199 and $205 million (7% Y/Y increase at midpoint), adjusted EBITDA between $63 to $67 million (32% midpoint margin). For full year 2026, revenue expected to range between $810 and $826 million (8-10% Y/Y increase), adjusted EBITDA margins approximately 34%. Incremental growth driven by adoption of solutions across social and streaming TV, growth from existing enterprise clients, and new customer acquisition.

In Q1, DoubleVerify achieved 10% year-over-year revenue growth. Social verification and optimization solutions led the growth. EBITDA margin was 31%. Social measurement grew 23% year-over-year. Social activation, the fastest growing solution set, grew 92% year-over-year in Q1. CTV measurement impressions volumes grew 28%. Total revenue for Q1 was $181 million. Total advertiser revenue, including activation and measurement, represented 90% of total revenue and grew 9% year-over-year. Activation revenue grew 6%, with ABS representing 53% of activation revenue. Measurement revenue grew 16% year over year, with social measurement revenue increasing 23% and representing 49% of measurement revenue, and international revenue increasing 18% and representing 27% of measurement revenue. Supply side revenue represented 10% of total revenue in the quarter and grew 12% year over year.

Discussed risks related to forward-looking statements subject to inherent risks, uncertainties, and changes. Also, risks associated with AI-fueled cyber fraud becoming more sophisticated, impacting ROI and efficiency gains. Risks related to the evolving AI advertising universe and ensuring transparency and trust in new ecosystems like LLM chatbots where little transparency and independent measurement currently exist.

Q: Matt Swanson from RBC Capital Markets asked about social activation growth, especially on Meta.

A: Mark Zagorski responded on social activation scaling well with meta, YouTube, and TikTok, over 80 clients engaged with meta activation, already at $12 million ARR.

Q: Brian Pitts from BMO Capital Markets asked about Slop Stopper penetration and advertiser adaptation to AI content.

A: Mark Zagorski said Slop Stopper applied to 40% of impressions, advertisers still navigating AI content, expanding Slop Stopper to additional social platforms.

Q: Maria Rips from Canaccord asked about LLMs partnership and product pricing.

A: Mark Zagorski said DV's solution plays trust and transparency role in LLMs, business model volume-based advertiser-paid.

Q: Andrew Marock from Raymond James asked about chatbot ad architecture and partnership structures.

A: Mark Zagorski said current chatbot ad structures fit well with DV's analysis capabilities.

Q: Matthew Condon from Citizens asked about authentic advantage and meta-activation incremental growth.

A: Nicola Alias said it's a combination of new advertisers and existing advertisers ramping spend.

Q: Mark Murphy from JP Morgan asked about retail and CPG behavior and LLM ad scaling.

A: Mark Zagorski said CPG and retail spend normalized, LLM ad scaling driven by brand demand for transparency.

Q: Tim Nolan from SSR asked about CTV measurement uniqueness and trend.

A: Mark Zagorski said CTV measurement new solutions like verified streaming TV driving attach rates, impressions growth 28% YOY and expected to continue.

Q: Yousef Squally from Truist asked about gross margin expansion due to AI and large advertiser trend.

A: Nicola Alias said AI tools help maintain gross margin, large advertisers being upsold to new solutions.

Q: Justin Patterson from KeyBank Capital Markets asked about internal AI use.

A: Mark Zagorski discussed AI use in internal execution (40% faster software development) and core classification (4X productivity increase, reducing contractors by over 100 by end of year)