DoubleVerify, which is a leading software platform for digital media measurement has officially released their 2022 second quarter financial results.
According to an official press release: “We delivered an outstanding second quarter and surpassed our expectations for growth and profitability fueled by record Activation revenue and continued momentum on Social and CTV platforms,” said Mark Zagorski, CEO of DoubleVerify. “As advertisers seek stability and clarity in an increasingly unstable and opaque marketing environment, they continue to choose DV’s industry-leading quality and performance solutions to protect their brands and reduce media waste, ultimately driving better outcomes and ROI. Based on our strong results in the first half of 2022, we are raising our guidance for full year revenue and adjusted EBITDA. We remain confident that our growing global scale, market leading innovation, and legacy of trust will further deepen our client relationships and fuel steady growth that will outperform our competitors and the broader digital ad industry in 2022 and beyond.”
Here are the numbers:
Second Quarter 2022 Financial Highlights:
(All comparisons are to the second quarter of 2021)
- Total revenue of $109.8 million, an increase of 43%.
- Activation revenue of $60.5 million, an increase of 60%.
- Measurement revenue of $38.9 million, an increase of 23%.
- Media Transactions Measured (“MTM”) for CTV and Social increased by 56% and 26% respectively.
- International measurement revenue increased by 18%, with EMEA revenue growth of 14% and APAC revenue growth of 25%.
- Supply-Side revenue of $10.4 million, an increase of 49%.
- Net income of $10.3 million and adjusted EBITDA of $34.0 million, which increased by 60% and represented a 31% adjusted EBITDA margin.
Second Quarter and Recent Business Highlights:
- Grew Total Advertiser revenue by 43% year-over-year in the second quarter primarily due to a 24% increase in Media Transactions Measured (“MTM”) and a 10% increase in Measured Transaction Fee (“MTF”), and continued to achieve a Gross Revenue Retention rate of over 95% in the second quarter.
- Grew premium-priced Authentic Brand Suitability (ABS) revenues by 52% year-over-year in the second quarter driven by existing client upsells and geographic expansion as well as by a 20% year-over-year increase in the number of advertisers activating the solution in the second quarter of 2022.
- Drove global market share growth through product upsells, international expansion and new enterprise logo wins including British Airways, Taco Bell, Universal Parks, Roshfrans, Meta, Asda, Califia Farms, Infiniti and Smile Direct.
- Continued to expand our coverage in the digital gaming sector and began working with Twitch Ads on a solution to identify contextually brand-safe and suitable livestreamed content for advertisers on Twitch. The solution is currently in closed beta. Twitch is an interactive livestreaming service and global community.
- Launched an exclusive partnership with Reddit to enable full-suite media verification and maximize advertiser performance across its dynamic, user generated content environment.
- Launched an exclusive partnership with Scope3 to provide advertiser and agency customers with a comprehensive campaign-based carbon footprint metric via DV’s flagship service and analytics platform, DV Pinnacle®.
- Launched a platform-wide agreement with the LinkedIn Audience Network to provide brand safety and fraud prevention for all LinkedIn native ads across desktop, mobile web and in-app. The integration uses DV’s technology and data to not only ensure that all campaigns activated through the LinkedIn Audience Network are brand safe, but also fraud-free.
“We delivered strong revenue growth in the first half of 2022 due to the resilience of our business model and the essential nature of our products,” said Nicola Allais, CFO of DoubleVerify. “Our revenue outperformance translated into stronger than expected adjusted EBITDA margins, which also benefited from the faster integration of recent acquisitions and our overall financial discipline, ensuring that our operating expense growth was commensurate with our expected revenue growth. At the midpoints of our raised full-year guidance range, we now expect 35% revenue growth and 31% adjusted EBITDA margins. We continue to monitor the impact of the macroeconomic and geopolitical environment on our clients’ ad budgets, and to engage them in regular dialogue as we successfully execute our plan for the rest of the year.”
Xbox Q2 Revenue Dips 13%, Game Pass Continues Growth
Microsoft has reported declines in Xbox revenue during the three months ended December 31, 2022 with gaming revenues were down 13% and Xbox content and services revenues down 12%, but were offset by the growth of Xbox Game Pass.
The Xbox Game Pass subscription business has reported a record number of active players, reporting a record 120 million monthly active users across its gaming ecosystem.
- Revenue: $52.7 billion (up 2% year-on-year)
- Net income: $16.4 billion (down 12%)
- Operating income: $20.4 billion (down 8%)
- More Personal Computing (incl. Xbox) revenue: $14.2 million (down 19%)
- Gaming revenue: Down 13%
- Xbox content and services revenue: Down 12%
- Xbox hardware revenue: Down 13%
- Monthly active users (gaming): 120 million
The company said that a number of the declines were in line with expectations.
Microsoft Gauging Interest in Xbox Game Pass Ad-Supported Tier
Microsoft is reportedly gauging interest for an Xbox Game Pass ad-supported tier subscription with a new user survey exploring the potential addition of a $3 subscription tier that would provide more features and benefits.
According to Windows Central, the survey suggested that a potential $3 subscription tier offering come with features, such as allowing users to play new first-party Xbox titles six months after launch, and would include Xbox’s slate of exclusive titles as well.
Multiplayer and EA Access games would also be accessible in this new potential tier offering.
With Game Pass reportedly falling short of it’s target in growth, back in October, it makes sense that they are exploring new tier offerings.
Riot Games Files Motion to End Deal with FTX
Riot Games, the company behind such titles as League of Legends and Valorant, has filed a motion to end its deal with cryptocurrency company FTX following the epic collapse of the market, and FTX folding.
According to researcher Molly White via Twitter, the company attributed the decision to FTX’s filing for bankruptcy.
“There is simply no way for FTX to cure the reputational harm already caused to Riot as a result of the highly public disrepute wrought by the debacle preceding FTX’s bankruptcy filing. FTX cannot turn back the clock and undo the damage inflicted on Riot in the wake of its collapse,” Riot Games said, reportedly.
The two sides initially partnered up via an advertising deal in 2021 which would see Riot Games promote FTX’s brand in connection with its esports circuit, the League of Legends Championship series.
FTX owed Riot $12.5 million but so far has only covered $6.2 million of that balance during 2022, and in 2023 FTX would need to pay $12,875,000, with payments continuing to grow until the year 2028.
Riot Games also noted their criticism of the fall of FTX and arrest of FTX founder Sam Bankman-Fried as among the reasons that they decided to end the deal.
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