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Q3 2023 Quarterly Investor Presentation - FINAL.pdf

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DoubleVerify provides media quality and security solutions to help brands protect their media investments and maximize ROI. In Q3 2023, DoubleVerify saw continued growth, with gross revenue retention of over 95% and an 11% increase in large customers generating over $200k per year. DoubleVerify verifies media transactions across all platforms, processing over 300 billion data transactions daily to detect fraud, viewability, and brand safety issues. The company's scale, innovation in identifier-independent verification, and status as an impartial third party have helped establish trust among customers and drive consistent growth.

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1 Investor Presentation Quarter Ended September 2023
2 Disclaimer This presentation contains “forward-looking statements” that are based on management’s beliefs and assumptions and on information currently available to management. These forward- looking statements include, but are not limited to, statements about our plans, objectives, expectations and intentions and other statements contained herein that are not historical facts. When used herein, the words “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “will,” “should,” “could,” “estimates” and similar expressions are generally intended to identify forward-looking statements. In particular, statements about the markets in which we operate, including growth of our various markets, and statements about our expectations, beliefs, plans, strategies, objectives, prospects, assumptions or future events or performance contained in this presentation are forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievement to be materially different from any projected results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements represent the beliefs and assumptions of DoubleVerify Holdings, Inc. (the “Company”) only as of the date of this presentation, and we undertake no obligation to update or revise, or to publicly announce any update or revision to, any such forward-looking statements, whether as a result of new information, future events or otherwise. As such, the Company’s results may vary from any expectations or goals expressed in, or implied by, the forward-looking statements included in this presentation, possibly to a material degree. We cannot assure you that the assumptions made in preparing any of the forward-looking statements will prove accurate or that any long-term financial or operational goals or targets will be realized. For a discussion of some of the risks, uncertainties and other factors that could cause the Company’s results to differ materially from those expressed in, or implied by, the forward- looking statements included in this presentation, you should refer to the ‘‘Risk Factors’’ section and other sections in the Company’s Form 10-K filed with the SEC on March 1, 2023, Form 10-Q filed with the SEC on July 31, 2023 and the Company’s other filings and reports with the SEC. In addition to disclosing financial results that are determined in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company also discloses in this presentation certain non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted EBITDA less Capital Expenditures. We believe that these non-GAAP financial measures are useful to investors for period-to-period comparisons of the Company’s core business and for understanding and evaluating trends in the Company’s operating results on a consistent basis by excluding items that we do not believe are indicative of the Company’s core operating performance. These non-GAAP financial measures have limitations as analytical tools, and are presented for supplemental purposes and should be considered in addition to, and not in isolation or as substitutes for an analysis of the Company’s results as reported under GAAP. In addition, other companies in the Company’s industry may calculate these non-GAAP financial measures differently than the Company does, limiting their usefulness as a comparative measure. You should compensate for these limitations by relying primarily on the Company’s GAAP results and using the non-GAAP financial measures only supplementally. A reconciliation of these measures to the most directly comparable GAAP measures is included at the end of this presentation. In addition, this presentation contains industry and market data and forecasts that are based on our analysis of multiple sources, including publicly available information, industry publications and surveys, reports from government agencies, reports by market research firms and consultants and our own estimates based on internal company data and management’s knowledge of and experience in the market sectors in which the Company competes. While management believes such information and data are reliable, we have not independently verified the accuracy or completeness of the data contained in these sources and other publicly available information. Accordingly, we make no representations as to the accuracy or completeness of that data nor do we undertake to update such data after the date of this presentation.
3 Table of Contents 1. Business Overview 3. Recent Business Developments 2. Company Overview 4. Growth Drivers and Customer KPIs 5. Financial Overview
Business Overview
5 What DoubleVerify Does We make digital advertising stronger, safer and more secure. DV’s Software Solutions Media Safety and Quality Media Performance Reduce Media Waste Protect Brand Equity Maximize Media Effectiveness Improve Transparency /Optimization Drive better outcomes for advertisers
6 Challenges We Address Brand Safety Fraud Viewability Geo 78% of brands hurt by associations with objectionable content1 100% increase in fraud schemes uncovered by DV from 2020 to 20222 >40% Of unmanaged display and video ads are never seen2 65% of media spending on location-based advertising is wasted3 1. CMO Council 2. DV Global Insights Report 2023 3.Location Sciences (2019)
7 With Solutions Throughout The Media Transaction Pre-campaign Activation Post-campaign Measurement Advertisers implement DV controls throughout the media transaction Pre-campaign Activation Planning, Pre-bid Targeting and Avoidance Performance: Contextual, Attention Brand Safety Fraud, Viewability, Brand Suitability Post-campaign Measurement Post-bid Monitoring and Blocking Brand Safety, Geo Fraud, Viewability, Brand Suitability Performance: Attention Audience: Verified Reach and Demos Media Investment Performance: OpenSlate DV SOLUTIONS
8 Creating A Large and Growing Market Opportunity We believe all advertising spending will eventually be digitally transacted, including the $170 billion that is forecast to be spent on linear TV in 20232. 2021E 12% Five-Year CAGR 1. Magna Global forecasts as of September 2023 2. Global Ad Spend 2023 Forecast Dentsu International $187 $245 $261 $281 $303 $322 2020A 2021A 2022E 2023E 2024E 2025E Digital Ad Spend (ex-Search) 2020 - 20251 $ in billions Global Advertising Forecast 20261 >$984B $721B $343B Global Digital Ad Spend Global Ad Spend Global Digital Ex-Search Ad Spend
Company Overview
10 DoubleVerify’s Resilient Fundamentals Customers = Top Global Brands The world’s largest and most trusted brands Essential Solutions Protect brand equity Reduce media waste Improve ROI Fixed-Fee Business Model Helps insulate revenue from CPM volatility Verify Everywhere Strategy Makes DV largely agnostic to shifts in ad spend across sectors Diversified Customer Base No single vertical drove more than 21% of revenue in FY ’22 Under- penetrated TAM Capitalizes on an expanding category within a vast and untapped global market
11 Year Founded 2008 Revenue $ in millions Strong Track Record of Consistent Revenue Growth $104 $183 $244 $333 $452 $572 2018A 2019A 2020A 2021A 2022A 2023E Media Transactions Measured in FY 2022 5.5T Net Income in FY 2022 $43M Employees at year-end 2022 902 Net Cash from Operating Activities FY 2022 $95M Net Revenue Retention FY 2022 127% $27 $69 $73 $110 $142 $181 2018A 2019A 2020A 2021A 2022A 2023E +34% +75% +36% +36% +27% YoY Growth 25% 38% 30% 33% 31% 32% Adjusted Ebitda1 $ in millions Adj. EBITDA margin1 1. Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures. Non-GAAP measures have limitations as analytical tools and should not be considered in isolation or as substitute for an analysis of results as reported under GAAP. See Appendix for a reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin to the nearest financial measures reported under GAAP
12 Our Three Key Differentiators Scale Across Platforms Innovation Identifier Independent and Industry Leading Trust Accredited & Objective
13 We Verify Everywhere Scale PLATFORMS DEVICES FORMATS CONTENT TYPE Social Direct Programmatic Video Embed Web Page Desktop/Laptop CTV Mobile Video Display Application Every impression, on every platform, in any media, across any market on the planet.
14 We Have Cross Platform Scale Scale Verify Everywhere 5.5T Media Transactions Measured In 2022 300B Approximate Daily Data Transactions Processed In 2022 Daily Transactions Processed1 300K Transactions 1.6M Orders Shipped 1B Credit Card Transactions 3.2B Likes/ Comments 5.6B Searches 6.0B Transactions 100B Messages 300B Data transactions processed 1.Spaceback presentation on Linkedin
15 Impartial Third-Party Verification Innovation Cookie Free, Identifier Independent Context at our Core Certified Privacy & Info Security
16 Our Solutions Optimize Outcomes PRE-CAMPAIGN ACTIVATION LEARNING & OPTIMIZATION CORE VERIFICATION AUTHENTIC BRAND SUITABILITY DV CUSTOM CONTEXTUALTM OPEN INTERNET POST-CAMPAIGN MEASUREMENT Innovation
17 Continuing to Build and Deepen Trust Trust GRR +95% LARGE CUSTOMER GROWTH +11% Q3 2023 GRR1 # GENERATING >$200 K / YR2 The most widely recognized international standard for information security management. Demonstrates DV’s commitment to information security, protection, and confidentiality. Supports Long-term, Sticky Client Relationships 1. Gross Revenue Retention Rate is the total prior period revenue earned from advertiser customers, less the portion of prior period revenue attributable to lost advertiser customers, divided by the total prior period revenue from advertiser customers. 2. DV grew the total number of customers generating more than 200 thousand dollars of revenue by +11% year-over-year, on a trailing twelve-month basis in Q3 2023.
18 Media Rating Council® Accreditations Authentic Attention: Privacy-friendly Attention & Performance Measurement ●* Authentic Brand Suitability: A single targeting segment for property-level Brand Suitability & IVT ●* Authentic Viewable Impression: A unified quality metric standard (Viewability, Brand Suitability, & SIVT) ●* Impression Counting Display & Video ● Display & Video — CTV ● Facebook (Third-party Integrated Reporting)▲ ● YouTube (Independent Reporting of Google ADH Data)+ ◑ Ad Viewability Display & Video ● Facebook (Third-party Integrated Reporting)▲ ● YouTube (Independent Reporting of Google ADH Data)+ ◑ Programmatic targeting segments ● SIVT Detection & filtration ● Detection & filtration — CTV ● Programmatic targeting segments — Desktop, Mobile Web, Mobile Apps & CTV ● Platform-wide avoidance — Desktop, Mobile Web, Mobile Apps & CTV ● Brand Suitability & Safety Property-level detection, blocking & video filtering ●* Property-level detection, blocking & video filtering — CTV ●* Property-level programmatic targeting segments ● Platform-wide avoidance (Brand Safety Floor) ● Custom & Standard Contextual Segments: Property-level contextual programmatic targeting segments ● Comprehensive Media Rating Council® Accreditations Across programmatic targeting segments and post-bid measurement Accreditations are across desktop, mobile web and mobile apps environments unless otherwise mentioned. *Accredited in 41 languages for domains, mobile apps and pages (9 for CTV apps). ◑ Accredited video solution ● Accredited display & video solution + Data specifically from Google Ads, DV360 and YouTube Reserve services ▲ Applies to Newsfeed placement types in Facebook Desktop and Mobile Newsfeed and Instagram Newsfeed Media Rating Council (MRC) MRC accreditation provides independent third-party validation that a product and company’s procedures, controls, disclosures and reporting meet established industry standards for validity, reliability and effectiveness. Trust
19 Recent Business Developments
20 Meta Reels YouTube Shorts CTV & Retail Media Key Business Highlights Launching Innovative Outcome-Driving Products Scaling Core Verification Solutions Expanding Partnerships with Advertisers and Platforms + Algorithmic Optimizer Universal Attention Segments CTV Attention Measurement
21 21 AI-powered optimization that makes DV data more impactful for advertisers and accelerates our evolution from protection to performance + AI Enhances Real-Time Decision Making DATA AI OUTCOMES
22 Scibids AI Expands DV’s Addressable Market >$320b ~$21b ~$1b Global Digital Ex-Search Ad Spend DV Addressable Market Scibids Addressable Market Global Advertising Spend and DV Addressable Market Forecast 20251 Scibids’ Addressable Market Forecast 20251 Global programmatic ad spend1 $123b Global programmatic ad spend utilizing customizable bidding algorithms2 $12b Scibids Addressable Market (based on % of spend) 2 $1b 1. Magna Global forecasts as of September 2023 2. DV and Scibids addressable market forecast is estimated by management
23 AI Fuels Growing Revenue Opportunities Activation DV Programmatic Activation $ Authentic Brand Suitability $ Core Programmatic Products & Contextual $ AI Optimization DV DATA • Attention data • Contextual data • Viewability 3rd Party Data • Audience data • Alternate verification data • Cost data Measurement DV Measurement $ Authentic Attention $ DV Authentic Ad (brand safety, fraud, viewability) $ New revenue $ Existing revenue
Growth Drivers and Customer KPIs
25 Significant Growth Opportunities for DV 1. Percentage of DV Q3’23 revenue. 2. Percentage of Top 836 global advertisers not active with DV as of December 31, 2022. 3. Percentage based off the last twelve months revenue data ending September 2023. New Product Introduction & Upsell Channel Expansion Current & New Client Growth / Acquisition International Expansion Strategic M&A >50% of DV’s Top 700 customers are using less than 4 products 3 61% of top 836 global advertisers not covered 2 29% of DV’s measurement revenue is international with significant room for growth 1 • International Expansion • Product/Technology Extensions • Product/ Technology Adjacencies 16% of DV’s revenue is derived from social with significant room for expansion 1
26 Scibids AI Five Year Revenue Projection1 $15 - $17m 2024E 2028E ~$100m 58% CAGR 1. Management’s estimate of Scibids’ revenue contribution
27 Large Product Cross-Sell and Up-Sell Opportunity 1. Data YTD June 30, 2023. Reflects revenue Multipliers Based on DV Product Pricing. 2. Percentage based off the last twelve months revenue data ending September 2023. DV Revenue Multiplier Opportunity 1 Customer Lifetime Revenue Can Grow Exponentially Plus Scibids Opportunity + Scibids AI Post Campaign Measurement Authentic Attention Social Measurement Core Programmatic Activation Social Pre-Screen Authentic Brand Suitability Custom Contextual Measurement Activation 1.0x 1.8x 2.6x 3.6x 6.0x 9.3x 13.2x >50% of DV’s Top 700 customers are using less than 4 products 2
28 The World’s Largest Brands Rely on DV Q3 2023 New Client Wins 33% Competitive Wins 67% Greenfield Key New Client Wins, Expansions And Upsells In 2023
29 Long Standing Relationships and Exceptional Retention Top Customer Tenure (Yrs)1 Number of Customers >$1M in Annual Revenue Top 75 Customer Retention 1. Customer tenure as of year-end 2022. 2. Average revenue for Top 100 customers in each fiscal year. Average Revenue per Customer ($M)2 100% 100% 100% 100% 2019 2020 2021 2022 8.1 8.3 7.3 Top 25 Top 50 Top 75 41 45 64 78 2019 2020 2021 2022 $1.1 $1.8 $2.2 $2.6 2019 2020 2021 2022
30 Diversified Client Base Bolsters Resiliency 2022 Revenue Mix1 1% 2% 3% 5% 6% 7% 11% 12% 12% 20% 21% 0% 5% 10% 15% 20% 25% Public Sector Restaurants Travel Automotive Media & Entertainment Healthcare Financial Retail Telecom Technology CPG 20% 1. Data as December, 2022. Reflects revenue contribution of Top 100 customers. Diversification reduces spend variability on any unique customer or vertical No single vertical is more than 21%
31 Financial Overview
32 Financial Highlights 1 In-year revenue from prior year existing customers / prior year revenue from this subset of customers; excludes portion of unallocated programmatic revenue 2 Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures. Non-GAAP measures have limitations as analytical tools and should not be considered in isolation or as substitute for an analysis of results as reported under GAAP. See Appendix for a reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin to the nearest financial measures reported under GAAP. Rapid Growth At Scale Full Year 2022 36% YoY Growth High Profitability 31% Adj. EBITDA Margin2 Strong Balance Sheet $0 Long Term Debt At Year End Excellent Customer Retention 100% Retention of Top 75 Customers Over Past 4 Years $452M Revenue $142M Adj. EBITDA $268M Cash on Hand At Year End YTD 2023 $400M Revenue $122M Adj. EBITDA $259M Cash on Hand 26% YoY Growth 30% Adj. EBITDA Margin2 $0 Long Term Debt 100% Retention of Top 75 Customers Over Past 12 Months
33 Our Revenue Model Customers Products Advertisers Activation Pre-campaign Measurement Post-campaign Publishers Integrations Programmatic Social and CTV Direct Social and CTV Platforms Publisher s Supply Side Model Transactional Media Transactions Measured (MTM) x Measured Transaction Fee (MTF) Subscription-based 92% 8% % OF DV YTD 2023 REVENUE
34 Strong Historical Growth Across All Revenue Types MEDIA TRANSACTIONS MEASURED (MTM) Volume-Led Growth 2019–2022 CAGR +28% Activation ($M) YOY GROWTH 50% Measurement ($M) YOY GROWTH 17% 56% Supply Side ($M) YOY GROWTH 47% Total ($M) YOY GROWTH 36%
35 Strong Profitability and Cash Position Balance Sheet ($M) AS OF 09/30/2023 1. Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures. Non-GAAP measures have limitations as analytical tools and should not be considered in isolation or as substitute for an analysis of results as reported under GAAP. See Appendix for a reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin to the nearest financial measures reported under GAAP. CASH POSITION $259 LONG-TERM DEBT $0 38% 30% 33% 31% 30% $73 $69 $110 $142 $122 FY 2019 FY 2020 FY 2021 FY 2022 YTD 2023 Adjusted EBITDA ($M) & Margin %1
30 Appendix
37 Non-GAAP Financial Measures Reconciliation ($mm) FY 2019 FY 2020 FY 2021 FY 2022 YTD 20231 Net income (loss) $23.3 $20.5 $29.3 $43.3 $38.4 Depreciation and amortization 21.8 24.6 30.3 34.3 29.4 Stock-based compensation 1.7 20.5 21.9 42.3 42.8 Interest expense 5.2 4.9 1.2 0.9 0.8 Income tax (benefit) expense 12.1 (3.1) (3.5) 16.1 15.8 M&A and restructuring costs (a) 3.4 0.2 3.5 1.2 1.6 Offering, IPO readiness and secondary offering costs (b) 2.8 4.9 23.6 1.3 0.6 Other (recoveries) costs (c) 0.2 1.6 3.8 3.4 (0.8) Other (income) expense (d) (1.5) (0.9) (0.3) (1.2) (6.8) Adjusted EBITDA $69.0 $73.2 $109.7 $141.6 $121.6 % margin 38% 30% 33% 31% 30% 1. YTD 2023 is the nine-months ended September 30, 2023
38 Non-GAAP Financial Measures Reconciliation (a) M&A and restructuring costs for the three and nine months ended September 30, 2023 consist of transaction costs related to the acquisition of Scibids Technology SAS (“Scibids”). M&A and restructuring costs for the three and nine months ended September 30, 2022 consist of transaction costs, integration and restructuring costs related to the acquisition of OpenSlate. (b) Offering, IPO readiness and secondary offering costs for the three and nine months ended September 30, 2023 consist of third-party costs incurred for underwritten secondary public offerings by certain stockholders of the Company. Offering, IPO readiness and secondary offering costs for the three and nine months ended September 30, 2022 consist of third-party costs incurred for the Company’s filing of a “shelf” registration statement on Form S-3. (c) Other recoveries for the three and nine months ended September 30, 2023 consist of sublease income for leased office space. For the three and nine months ended September 30, 2022, other (recoveries) costs consist of sublease income for lease office space, offset by costs related to the departures of the Company’s former Chief Operating Officer and Chief Customer Officer, impairment related to a subleased office space and costs related to the disposal of furniture for unoccupied lease office space. (d) Other (income) expense for the three and nine months ended September 30, 2023 and September 30, 2022 consist of interest income earned on interest-bearing monetary assets, and of the impact of changes in foreign currency exchange rates. We use Adjusted EBITDA and Adjusted EBITDA Margin as measures of operational efficiency to understand and evaluate our core business operations. We believe that these non- GAAP financial measures are useful to investors for period to period comparisons of our core business and for understanding and evaluating trends in operating results on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Fourth Quarter and Full-Year 2023 Guidance: With respect to the Company’s expectations under “Fourth Quarter and Full Year 2023 Guidance" above, the Company has not reconciled the non-GAAP measure Adjusted EBITDA to the GAAP measure net income in this press release because the Company does not provide guidance for depreciation and amortization expense, acquisition-related costs, interest income, and income taxes on a consistent basis as the Company is unable to quantify these amounts without unreasonable efforts, which would be required to include a reconciliation of Adjusted EBITDA to GAAP net income. In addition, the Company believes such a reconciliation would imply a degree of precision that could be confusing or misleading to investors.

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Q3 2023 Quarterly Investor Presentation - FINAL.pdf

  • 2. 2 Disclaimer This presentation contains “forward-looking statements” that are based on management’s beliefs and assumptions and on information currently available to management. These forward- looking statements include, but are not limited to, statements about our plans, objectives, expectations and intentions and other statements contained herein that are not historical facts. When used herein, the words “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “will,” “should,” “could,” “estimates” and similar expressions are generally intended to identify forward-looking statements. In particular, statements about the markets in which we operate, including growth of our various markets, and statements about our expectations, beliefs, plans, strategies, objectives, prospects, assumptions or future events or performance contained in this presentation are forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievement to be materially different from any projected results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements represent the beliefs and assumptions of DoubleVerify Holdings, Inc. (the “Company”) only as of the date of this presentation, and we undertake no obligation to update or revise, or to publicly announce any update or revision to, any such forward-looking statements, whether as a result of new information, future events or otherwise. As such, the Company’s results may vary from any expectations or goals expressed in, or implied by, the forward-looking statements included in this presentation, possibly to a material degree. We cannot assure you that the assumptions made in preparing any of the forward-looking statements will prove accurate or that any long-term financial or operational goals or targets will be realized. For a discussion of some of the risks, uncertainties and other factors that could cause the Company’s results to differ materially from those expressed in, or implied by, the forward- looking statements included in this presentation, you should refer to the ‘‘Risk Factors’’ section and other sections in the Company’s Form 10-K filed with the SEC on March 1, 2023, Form 10-Q filed with the SEC on July 31, 2023 and the Company’s other filings and reports with the SEC. In addition to disclosing financial results that are determined in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company also discloses in this presentation certain non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted EBITDA less Capital Expenditures. We believe that these non-GAAP financial measures are useful to investors for period-to-period comparisons of the Company’s core business and for understanding and evaluating trends in the Company’s operating results on a consistent basis by excluding items that we do not believe are indicative of the Company’s core operating performance. These non-GAAP financial measures have limitations as analytical tools, and are presented for supplemental purposes and should be considered in addition to, and not in isolation or as substitutes for an analysis of the Company’s results as reported under GAAP. In addition, other companies in the Company’s industry may calculate these non-GAAP financial measures differently than the Company does, limiting their usefulness as a comparative measure. You should compensate for these limitations by relying primarily on the Company’s GAAP results and using the non-GAAP financial measures only supplementally. A reconciliation of these measures to the most directly comparable GAAP measures is included at the end of this presentation. In addition, this presentation contains industry and market data and forecasts that are based on our analysis of multiple sources, including publicly available information, industry publications and surveys, reports from government agencies, reports by market research firms and consultants and our own estimates based on internal company data and management’s knowledge of and experience in the market sectors in which the Company competes. While management believes such information and data are reliable, we have not independently verified the accuracy or completeness of the data contained in these sources and other publicly available information. Accordingly, we make no representations as to the accuracy or completeness of that data nor do we undertake to update such data after the date of this presentation.
  • 3. 3 Table of Contents 1. Business Overview 3. Recent Business Developments 2. Company Overview 4. Growth Drivers and Customer KPIs 5. Financial Overview
  • 5. 5 What DoubleVerify Does We make digital advertising stronger, safer and more secure. DV’s Software Solutions Media Safety and Quality Media Performance Reduce Media Waste Protect Brand Equity Maximize Media Effectiveness Improve Transparency /Optimization Drive better outcomes for advertisers
  • 6. 6 Challenges We Address Brand Safety Fraud Viewability Geo 78% of brands hurt by associations with objectionable content1 100% increase in fraud schemes uncovered by DV from 2020 to 20222 >40% Of unmanaged display and video ads are never seen2 65% of media spending on location-based advertising is wasted3 1. CMO Council 2. DV Global Insights Report 2023 3.Location Sciences (2019)
  • 7. 7 With Solutions Throughout The Media Transaction Pre-campaign Activation Post-campaign Measurement Advertisers implement DV controls throughout the media transaction Pre-campaign Activation Planning, Pre-bid Targeting and Avoidance Performance: Contextual, Attention Brand Safety Fraud, Viewability, Brand Suitability Post-campaign Measurement Post-bid Monitoring and Blocking Brand Safety, Geo Fraud, Viewability, Brand Suitability Performance: Attention Audience: Verified Reach and Demos Media Investment Performance: OpenSlate DV SOLUTIONS
  • 8. 8 Creating A Large and Growing Market Opportunity We believe all advertising spending will eventually be digitally transacted, including the $170 billion that is forecast to be spent on linear TV in 20232. 2021E 12% Five-Year CAGR 1. Magna Global forecasts as of September 2023 2. Global Ad Spend 2023 Forecast Dentsu International $187 $245 $261 $281 $303 $322 2020A 2021A 2022E 2023E 2024E 2025E Digital Ad Spend (ex-Search) 2020 - 20251 $ in billions Global Advertising Forecast 20261 >$984B $721B $343B Global Digital Ad Spend Global Ad Spend Global Digital Ex-Search Ad Spend
  • 10. 10 DoubleVerify’s Resilient Fundamentals Customers = Top Global Brands The world’s largest and most trusted brands Essential Solutions Protect brand equity Reduce media waste Improve ROI Fixed-Fee Business Model Helps insulate revenue from CPM volatility Verify Everywhere Strategy Makes DV largely agnostic to shifts in ad spend across sectors Diversified Customer Base No single vertical drove more than 21% of revenue in FY ’22 Under- penetrated TAM Capitalizes on an expanding category within a vast and untapped global market
  • 11. 11 Year Founded 2008 Revenue $ in millions Strong Track Record of Consistent Revenue Growth $104 $183 $244 $333 $452 $572 2018A 2019A 2020A 2021A 2022A 2023E Media Transactions Measured in FY 2022 5.5T Net Income in FY 2022 $43M Employees at year-end 2022 902 Net Cash from Operating Activities FY 2022 $95M Net Revenue Retention FY 2022 127% $27 $69 $73 $110 $142 $181 2018A 2019A 2020A 2021A 2022A 2023E +34% +75% +36% +36% +27% YoY Growth 25% 38% 30% 33% 31% 32% Adjusted Ebitda1 $ in millions Adj. EBITDA margin1 1. Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures. Non-GAAP measures have limitations as analytical tools and should not be considered in isolation or as substitute for an analysis of results as reported under GAAP. See Appendix for a reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin to the nearest financial measures reported under GAAP
  • 12. 12 Our Three Key Differentiators Scale Across Platforms Innovation Identifier Independent and Industry Leading Trust Accredited & Objective
  • 13. 13 We Verify Everywhere Scale PLATFORMS DEVICES FORMATS CONTENT TYPE Social Direct Programmatic Video Embed Web Page Desktop/Laptop CTV Mobile Video Display Application Every impression, on every platform, in any media, across any market on the planet.
  • 14. 14 We Have Cross Platform Scale Scale Verify Everywhere 5.5T Media Transactions Measured In 2022 300B Approximate Daily Data Transactions Processed In 2022 Daily Transactions Processed1 300K Transactions 1.6M Orders Shipped 1B Credit Card Transactions 3.2B Likes/ Comments 5.6B Searches 6.0B Transactions 100B Messages 300B Data transactions processed 1.Spaceback presentation on Linkedin
  • 15. 15 Impartial Third-Party Verification Innovation Cookie Free, Identifier Independent Context at our Core Certified Privacy & Info Security
  • 16. 16 Our Solutions Optimize Outcomes PRE-CAMPAIGN ACTIVATION LEARNING & OPTIMIZATION CORE VERIFICATION AUTHENTIC BRAND SUITABILITY DV CUSTOM CONTEXTUALTM OPEN INTERNET POST-CAMPAIGN MEASUREMENT Innovation
  • 17. 17 Continuing to Build and Deepen Trust Trust GRR +95% LARGE CUSTOMER GROWTH +11% Q3 2023 GRR1 # GENERATING >$200 K / YR2 The most widely recognized international standard for information security management. Demonstrates DV’s commitment to information security, protection, and confidentiality. Supports Long-term, Sticky Client Relationships 1. Gross Revenue Retention Rate is the total prior period revenue earned from advertiser customers, less the portion of prior period revenue attributable to lost advertiser customers, divided by the total prior period revenue from advertiser customers. 2. DV grew the total number of customers generating more than 200 thousand dollars of revenue by +11% year-over-year, on a trailing twelve-month basis in Q3 2023.
  • 18. 18 Media Rating Council® Accreditations Authentic Attention: Privacy-friendly Attention & Performance Measurement ●* Authentic Brand Suitability: A single targeting segment for property-level Brand Suitability & IVT ●* Authentic Viewable Impression: A unified quality metric standard (Viewability, Brand Suitability, & SIVT) ●* Impression Counting Display & Video ● Display & Video — CTV ● Facebook (Third-party Integrated Reporting)▲ ● YouTube (Independent Reporting of Google ADH Data)+ ◑ Ad Viewability Display & Video ● Facebook (Third-party Integrated Reporting)▲ ● YouTube (Independent Reporting of Google ADH Data)+ ◑ Programmatic targeting segments ● SIVT Detection & filtration ● Detection & filtration — CTV ● Programmatic targeting segments — Desktop, Mobile Web, Mobile Apps & CTV ● Platform-wide avoidance — Desktop, Mobile Web, Mobile Apps & CTV ● Brand Suitability & Safety Property-level detection, blocking & video filtering ●* Property-level detection, blocking & video filtering — CTV ●* Property-level programmatic targeting segments ● Platform-wide avoidance (Brand Safety Floor) ● Custom & Standard Contextual Segments: Property-level contextual programmatic targeting segments ● Comprehensive Media Rating Council® Accreditations Across programmatic targeting segments and post-bid measurement Accreditations are across desktop, mobile web and mobile apps environments unless otherwise mentioned. *Accredited in 41 languages for domains, mobile apps and pages (9 for CTV apps). ◑ Accredited video solution ● Accredited display & video solution + Data specifically from Google Ads, DV360 and YouTube Reserve services ▲ Applies to Newsfeed placement types in Facebook Desktop and Mobile Newsfeed and Instagram Newsfeed Media Rating Council (MRC) MRC accreditation provides independent third-party validation that a product and company’s procedures, controls, disclosures and reporting meet established industry standards for validity, reliability and effectiveness. Trust
  • 20. 20 Meta Reels YouTube Shorts CTV & Retail Media Key Business Highlights Launching Innovative Outcome-Driving Products Scaling Core Verification Solutions Expanding Partnerships with Advertisers and Platforms + Algorithmic Optimizer Universal Attention Segments CTV Attention Measurement
  • 21. 21 21 AI-powered optimization that makes DV data more impactful for advertisers and accelerates our evolution from protection to performance + AI Enhances Real-Time Decision Making DATA AI OUTCOMES
  • 22. 22 Scibids AI Expands DV’s Addressable Market >$320b ~$21b ~$1b Global Digital Ex-Search Ad Spend DV Addressable Market Scibids Addressable Market Global Advertising Spend and DV Addressable Market Forecast 20251 Scibids’ Addressable Market Forecast 20251 Global programmatic ad spend1 $123b Global programmatic ad spend utilizing customizable bidding algorithms2 $12b Scibids Addressable Market (based on % of spend) 2 $1b 1. Magna Global forecasts as of September 2023 2. DV and Scibids addressable market forecast is estimated by management
  • 23. 23 AI Fuels Growing Revenue Opportunities Activation DV Programmatic Activation $ Authentic Brand Suitability $ Core Programmatic Products & Contextual $ AI Optimization DV DATA • Attention data • Contextual data • Viewability 3rd Party Data • Audience data • Alternate verification data • Cost data Measurement DV Measurement $ Authentic Attention $ DV Authentic Ad (brand safety, fraud, viewability) $ New revenue $ Existing revenue
  • 24. Growth Drivers and Customer KPIs
  • 25. 25 Significant Growth Opportunities for DV 1. Percentage of DV Q3’23 revenue. 2. Percentage of Top 836 global advertisers not active with DV as of December 31, 2022. 3. Percentage based off the last twelve months revenue data ending September 2023. New Product Introduction & Upsell Channel Expansion Current & New Client Growth / Acquisition International Expansion Strategic M&A >50% of DV’s Top 700 customers are using less than 4 products 3 61% of top 836 global advertisers not covered 2 29% of DV’s measurement revenue is international with significant room for growth 1 • International Expansion • Product/Technology Extensions • Product/ Technology Adjacencies 16% of DV’s revenue is derived from social with significant room for expansion 1
  • 26. 26 Scibids AI Five Year Revenue Projection1 $15 - $17m 2024E 2028E ~$100m 58% CAGR 1. Management’s estimate of Scibids’ revenue contribution
  • 27. 27 Large Product Cross-Sell and Up-Sell Opportunity 1. Data YTD June 30, 2023. Reflects revenue Multipliers Based on DV Product Pricing. 2. Percentage based off the last twelve months revenue data ending September 2023. DV Revenue Multiplier Opportunity 1 Customer Lifetime Revenue Can Grow Exponentially Plus Scibids Opportunity + Scibids AI Post Campaign Measurement Authentic Attention Social Measurement Core Programmatic Activation Social Pre-Screen Authentic Brand Suitability Custom Contextual Measurement Activation 1.0x 1.8x 2.6x 3.6x 6.0x 9.3x 13.2x >50% of DV’s Top 700 customers are using less than 4 products 2
  • 28. 28 The World’s Largest Brands Rely on DV Q3 2023 New Client Wins 33% Competitive Wins 67% Greenfield Key New Client Wins, Expansions And Upsells In 2023
  • 29. 29 Long Standing Relationships and Exceptional Retention Top Customer Tenure (Yrs)1 Number of Customers >$1M in Annual Revenue Top 75 Customer Retention 1. Customer tenure as of year-end 2022. 2. Average revenue for Top 100 customers in each fiscal year. Average Revenue per Customer ($M)2 100% 100% 100% 100% 2019 2020 2021 2022 8.1 8.3 7.3 Top 25 Top 50 Top 75 41 45 64 78 2019 2020 2021 2022 $1.1 $1.8 $2.2 $2.6 2019 2020 2021 2022
  • 30. 30 Diversified Client Base Bolsters Resiliency 2022 Revenue Mix1 1% 2% 3% 5% 6% 7% 11% 12% 12% 20% 21% 0% 5% 10% 15% 20% 25% Public Sector Restaurants Travel Automotive Media & Entertainment Healthcare Financial Retail Telecom Technology CPG 20% 1. Data as December, 2022. Reflects revenue contribution of Top 100 customers. Diversification reduces spend variability on any unique customer or vertical No single vertical is more than 21%
  • 32. 32 Financial Highlights 1 In-year revenue from prior year existing customers / prior year revenue from this subset of customers; excludes portion of unallocated programmatic revenue 2 Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures. Non-GAAP measures have limitations as analytical tools and should not be considered in isolation or as substitute for an analysis of results as reported under GAAP. See Appendix for a reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin to the nearest financial measures reported under GAAP. Rapid Growth At Scale Full Year 2022 36% YoY Growth High Profitability 31% Adj. EBITDA Margin2 Strong Balance Sheet $0 Long Term Debt At Year End Excellent Customer Retention 100% Retention of Top 75 Customers Over Past 4 Years $452M Revenue $142M Adj. EBITDA $268M Cash on Hand At Year End YTD 2023 $400M Revenue $122M Adj. EBITDA $259M Cash on Hand 26% YoY Growth 30% Adj. EBITDA Margin2 $0 Long Term Debt 100% Retention of Top 75 Customers Over Past 12 Months
  • 33. 33 Our Revenue Model Customers Products Advertisers Activation Pre-campaign Measurement Post-campaign Publishers Integrations Programmatic Social and CTV Direct Social and CTV Platforms Publisher s Supply Side Model Transactional Media Transactions Measured (MTM) x Measured Transaction Fee (MTF) Subscription-based 92% 8% % OF DV YTD 2023 REVENUE
  • 34. 34 Strong Historical Growth Across All Revenue Types MEDIA TRANSACTIONS MEASURED (MTM) Volume-Led Growth 2019–2022 CAGR +28% Activation ($M) YOY GROWTH 50% Measurement ($M) YOY GROWTH 17% 56% Supply Side ($M) YOY GROWTH 47% Total ($M) YOY GROWTH 36%
  • 35. 35 Strong Profitability and Cash Position Balance Sheet ($M) AS OF 09/30/2023 1. Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures. Non-GAAP measures have limitations as analytical tools and should not be considered in isolation or as substitute for an analysis of results as reported under GAAP. See Appendix for a reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin to the nearest financial measures reported under GAAP. CASH POSITION $259 LONG-TERM DEBT $0 38% 30% 33% 31% 30% $73 $69 $110 $142 $122 FY 2019 FY 2020 FY 2021 FY 2022 YTD 2023 Adjusted EBITDA ($M) & Margin %1
  • 37. 37 Non-GAAP Financial Measures Reconciliation ($mm) FY 2019 FY 2020 FY 2021 FY 2022 YTD 20231 Net income (loss) $23.3 $20.5 $29.3 $43.3 $38.4 Depreciation and amortization 21.8 24.6 30.3 34.3 29.4 Stock-based compensation 1.7 20.5 21.9 42.3 42.8 Interest expense 5.2 4.9 1.2 0.9 0.8 Income tax (benefit) expense 12.1 (3.1) (3.5) 16.1 15.8 M&A and restructuring costs (a) 3.4 0.2 3.5 1.2 1.6 Offering, IPO readiness and secondary offering costs (b) 2.8 4.9 23.6 1.3 0.6 Other (recoveries) costs (c) 0.2 1.6 3.8 3.4 (0.8) Other (income) expense (d) (1.5) (0.9) (0.3) (1.2) (6.8) Adjusted EBITDA $69.0 $73.2 $109.7 $141.6 $121.6 % margin 38% 30% 33% 31% 30% 1. YTD 2023 is the nine-months ended September 30, 2023
  • 38. 38 Non-GAAP Financial Measures Reconciliation (a) M&A and restructuring costs for the three and nine months ended September 30, 2023 consist of transaction costs related to the acquisition of Scibids Technology SAS (“Scibids”). M&A and restructuring costs for the three and nine months ended September 30, 2022 consist of transaction costs, integration and restructuring costs related to the acquisition of OpenSlate. (b) Offering, IPO readiness and secondary offering costs for the three and nine months ended September 30, 2023 consist of third-party costs incurred for underwritten secondary public offerings by certain stockholders of the Company. Offering, IPO readiness and secondary offering costs for the three and nine months ended September 30, 2022 consist of third-party costs incurred for the Company’s filing of a “shelf” registration statement on Form S-3. (c) Other recoveries for the three and nine months ended September 30, 2023 consist of sublease income for leased office space. For the three and nine months ended September 30, 2022, other (recoveries) costs consist of sublease income for lease office space, offset by costs related to the departures of the Company’s former Chief Operating Officer and Chief Customer Officer, impairment related to a subleased office space and costs related to the disposal of furniture for unoccupied lease office space. (d) Other (income) expense for the three and nine months ended September 30, 2023 and September 30, 2022 consist of interest income earned on interest-bearing monetary assets, and of the impact of changes in foreign currency exchange rates. We use Adjusted EBITDA and Adjusted EBITDA Margin as measures of operational efficiency to understand and evaluate our core business operations. We believe that these non- GAAP financial measures are useful to investors for period to period comparisons of our core business and for understanding and evaluating trends in operating results on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Fourth Quarter and Full-Year 2023 Guidance: With respect to the Company’s expectations under “Fourth Quarter and Full Year 2023 Guidance" above, the Company has not reconciled the non-GAAP measure Adjusted EBITDA to the GAAP measure net income in this press release because the Company does not provide guidance for depreciation and amortization expense, acquisition-related costs, interest income, and income taxes on a consistent basis as the Company is unable to quantify these amounts without unreasonable efforts, which would be required to include a reconciliation of Adjusted EBITDA to GAAP net income. In addition, the Company believes such a reconciliation would imply a degree of precision that could be confusing or misleading to investors.