DoubleVerify, a leading software platform for digital media measurement, data, and analytics, saw its stock price plunge 7.72% on November 7th, 2024, after reporting its third-quarter 2024 financial results. Despite robust revenue growth of 18% year-over-year and solid profitability, the company's outlook for the fourth quarter and 2025 fueled concerns about its growth trajectory.

In the third quarter, DoubleVerify achieved total revenue of $169.6 million, driven by double-digit growth across all three of its revenue lines: activation, measurement, and supply-side. The company's adjusted EBITDA margin reached an impressive 35%, its highest for any third quarter on record, demonstrating the scalability and profitability of its business model.

However, DoubleVerify's guidance for the fourth quarter and full-year 2025 raised questions about the sustainability of its growth rate. The company cited several factors that could weigh on its performance, including the gradual adoption of its measurement solutions on Meta's platforms, the impact of a core group of retail and CPG advertisers scaling back on ad spend, and the near-term effects of winning major enterprise clients like P&G and Google at competitive rates.

Nicola Allais, DoubleVerify's CFO, acknowledged that while the digital ad ecosystem continues to evolve, the company is also evolving, transitioning from a focus on protection to a combined emphasis on protection and performance. This transition period is expected to result in a moderate growth rate for 2025, although DoubleVerify aims to maintain double-digit revenue growth.