DoubleVerify Holdings, Inc. (DV), a leading digital media measurement and analytics firm, experienced a significant stock plummet of 28.72% in pre-market trading on Friday. This sharp decline can be attributed to the following key factors:
Firstly, DoubleVerify's fourth-quarter revenue of $190.6 million fell short of analyst consensus estimates of $196.9 million. The company's adjusted EBITDA of $73.8 million also missed expectations. This revenue miss, coupled with weaker-than-expected guidance, appears to be the primary driver behind the stock's sell-off.
Secondly, the company's first-quarter revenue guidance of $151-$155 million and adjusted EBITDA of $37-$41 million were both lower than analyst projections of $157.5 million and $42.8 million, respectively. Additionally, DoubleVerify projected a 2025 revenue growth of only around 10%, which translates to approximately $722.5 million, below the consensus view of $746.5 million.