BUZZ-DoubleVerify tumbles after Q4, guidance miss

Reuters
28 Feb

** Shares of digital media analytics firm DoubleVerify DV.N down 17.7% before the bell to $17.88, nearly 4-mth low, after qtrly results, forecasts were shy of Wall Street's expectations

** New York-based firm late Thurs posted Q4 rev growth of 11% y/y to $190.6 mln and adj EBITDA of $73.8 mln, both below LSEG estimates of $196.9 mln and $76.5 mln, respectively

** Co said expected acquisition of Rockerbox helps it expand into mid-market, direct response advertisers, and that it's optimistic about future growth opportunities

** For current qtr, it sees Q1 rev of $151-$155 mln and adj EBITDA of $37-41 mln. Analysts expected rev of $157.5 mln and EBITDA of $42.8 mln

** It projected 2025 rev growth of ~10%, or about $722.5 mln, vs consensus view of $746.5 mln

** At least 5 brokerages cut their PTs after the report, including Wells Fargo ($14 from $15), Stifel ($20 from $22) and Raymond James ($22 from $25)

** Of 23 brokerages covering DV, recommendation breakdown is 15 "strong buy" or "buy", 6 "hold" and 2 "sell"; median PT is $22

** Through Thurs close, stock up 13% YTD, but has shed ~45% over the past 12 months

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))

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