DoubleVerify's Strategic Focus on Attention Measurement and Partnerships
2023-08-04
DoubleVerify (DV) recently held an earnings call meeting to discuss its long-term vision and strategy for AI-powered innovation. One of the key highlights of the meeting was the company's focus on attention as a metric in the digital space. CEO Mark Zagorski emphasized DV's pivot towards attention measurement and the positive reception it has received. This focus on attention is evident in the company's recent deal with TVision, a leader in redefining attention.
Zagorski explained that DV believes a combination of a gold star panel and granular data at scale is the best solution for understanding behavior and measuring attention. The TVision panel provides unique insights, particularly in the TV front, that cannot be obtained from granular data alone. By combining the panel and granular data, DV has created an attention solution that is unmatched.
In addition to the TVision partnership, DV's recent acquisition of Scibids and a partnership announced a month ago further solidify their commitment to attention measurement. Initial trials on attention with Scibids showed exceptional results, with a significant increase in the number of won impressions and attention.
Overall, DV's strategic focus on attention measurement, demonstrated through partnerships and acquisitions, positions them as a leader in this space. Their combination of a gold star panel, granular data, and partnerships with industry leaders like TVision and Scibids showcase their dedication to providing unmatched attention solutions.
During the meeting, several key drivers of the business were discussed. These included technology integration, revenue growth, understanding and utilization of early-stage technology, client acquisition, brand safety, potential revenue increase from Facebook, reinvestment in the business, EBITDA margin management, expansion of inventory sources, algorithmically based solutions, and the impact of bad debt on financials.
DV's plans for its product/service include leveraging the recently acquired product, Scibids, in activation applications using the company's data for advertisers. The company intends to use the outputs and learnings from the activation implementations of Scibids to enhance their measurement business. Scibids will be sold as a separate product to generate revenue and serve as a differentiator for DV. It has the potential to drive optimization in a unique way, similar to a feature ABS (Automated Bidding System) on steroids. The company plans to use Scibids to drive revenue and differentiate themselves.
During the meeting, the most important key performance indicators (KPIs) discussed were greenfield wins, competitive wins, and the attention metric. Greenfield wins refer to new business acquisitions without displacing existing products, and there was a mention of a slight decrease in this metric compared to previous quarters. Competitive wins, on the other hand, were highlighted as a positive outcome, but it was acknowledged that they take longer to activate as they involve displacing a product from a competitor. The attention metric was emphasized as DV's pivot towards the digital space. The CEO mentioned a deal with TVision, a leader in redefining attention, and the combination of a gold star panel with granular data to measure this metric. These KPIs are important indicators of the company's performance and ability to outperform rivals in the market.
DV's outlook for the quarter and year is positive. The company reported strong revenue growth in the second quarter of 2023, exceeding their guidance range. They also achieved high adjusted EBITDA margins and continued to generate strong cash flow from operations. The company's revenue in the first six months of 2023 grew significantly, driven by factors such as the adoption and expansion of their ABS product, increased social platform coverage and volume, and international wins with key global customers. Overall, DV remains highly profitable and is poised for continued success in the coming quarters and year.
While the company's capital spending plans were not explicitly mentioned in the meeting, it can be inferred that DV had lower capital expenditure in the first half of the year compared to the previous year. The expenditure included the expansion of the company's global headquarters, but there are no specific details about future capital spending plans or upcoming projects.
The meeting included participation from Tejal Engman, Senior Vice President of Investor Relations, Mark Zagorski, Chief Executive Officer, Nicola Allais, Chief Financial Officer, and analysts from various financial institutions. These participants likely discussed the company's financial performance and prospects during the call.
Overall, DV's Innovation Day in New York on September 14th provided valuable insights into the company's strategic focus on attention measurement, partnerships, and acquisitions. With their innovative approach and strong financial performance, DV is well-positioned to lead the way in providing unmatched attention solutions in the digital space.