# EDGAR Filing Document

**Accession Number:** 0001819928
**File Stem:** 0001558370-23-002585
**Filing Date:** 2023-3
**Character Count:** 38694
**Document Hash:** 19a8d5152d3538dac6c99f54a0206650
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001558370-23-002585.hdr.sgml**: 20230301

**ACCESSION NUMBER**: 0001558370-23-002585

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20230301

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230301

**DATE AS OF CHANGE**: 20230301

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** DoubleVerify Holdings, Inc.
- **CENTRAL INDEX KEY:** 0001819928
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC. [7370]
- **IRS NUMBER:** 822714562
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-40349
- **FILM NUMBER:** 23693924

**BUSINESS ADDRESS:**
- **STREET 1:** 462 BROADWAY
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10013
- **BUSINESS PHONE:** 212-631-2111

**MAIL ADDRESS:**
- **STREET 1:** 462 BROADWAY
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10013

?xml version='1.0' encoding='UTF-8'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): March 1, 2023

**DoubleVerify Holdings, Inc.**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-40349** | **82-2714562** |
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |

---

---

| | |
|:---|:---|
| **462 Broadway** |  |
| **New York, New York** | **10013** |
| (Address of principal executive offices) | (Zip Code) |

---

**(212) 631-2111**

(Registrant's telephone number, including area code)

**N/A**

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Title of Class** | &nbsp;&nbsp;**Trading Symbol** | &nbsp;&nbsp;**Name of Each Exchange on Which Registered** |
| &nbsp;&nbsp;Common stock, par value $0.001 per share | &nbsp;&nbsp;DV | &nbsp;&nbsp;New York Stock Exchange |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

#### Item 2.02. Results of Operations and Financial Condition.
**On March 1, 2023, DoubleVerify Holdings, Inc. (the "Company") issued a press release announcing its financial results for the three months and year ended December 31, 2022. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.**

**The information in this Item 2.02 and in Exhibit 99.1 attached to this Form 8-K shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing made by the Company under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference in such filing.**

#### Item 9.01. Financial Statements and Exhibits.
(d)&nbsp;&nbsp;&nbsp;&nbsp; Exhibits

---

| | |
|:---|:---|
| **Exhibit Number** | **Description** |
| 99.1 | [Press Release dated March 1, 2023.](dv-20230301xex99d1.htm) |
| 104 | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101) |

---

#### SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
|  | DOUBLEVERIFY HOLDINGS, INC. | DOUBLEVERIFY HOLDINGS, INC. | DOUBLEVERIFY HOLDINGS, INC. |
|  | By: | /s/ Nicola Allais | /s/ Nicola Allais |
|  |  | Name: | Nicola Allais |
|  |  | Title: | Chief Financial Officer |
| Date: March 1, 2023 |  |  |  |

---

## Exhibit 99.1

![Graphic](dv-20230301xex99d1001.jpg)

#### Exhibit 99.1
***DoubleVerify Reports Fourth Quarter and Full Year 2022 Financial Results***

*Achieved Record Fourth Quarter and Full-Year 2022 Revenue and Net Cash from Operating Activities*

*Increased 2022 Revenue by **36%** Year-over-Year to **$452.4** Million, Driven by Growth in Pre-Campaign Activation Across Programmatic, Social and CTV*

*Increased 2022 Net Cash from Operating Activities by **15%** to **$94.9** Million*

*Achieved Full Year 2022 Net Income of **$43.3** Million and Adjusted EBITDA of **$141.6** Million, representing a **31%** Adjusted EBITDA margin*

NEW YORK – March 1, 2023 – DoubleVerify ("DV") (NYSE: DV), a leading software platform for digital media measurement, data and analytics, today announced financial results for the fourth quarter and full year ended December 31, 2022.

#### Fourth Quarter 2022 Financial Highlights:
(All comparisons are to the fourth quarter of 2021)

● Total revenue of $133.6 million, an increase of 27%.

● Activation revenue of $75.5 million, an increase of 40%.

● Measurement revenue of $46.3 million, an increase of 10%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Media Transactions Measured ("MTM") for CTV and Social increased by 29% and 33% respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o International measurement revenue increased by 5%, with APAC revenue growth of 14% while EMEA revenue was stable.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

● Supply-Side revenue of $11.8 million, an increase of 29%.

● Net income of $18.1 million and adjusted EBITDA of $48.9 million, which represented a 37% adjusted EBITDA margin.

#### Full Year 2022 Financial Highlights:
(All comparisons are to full year 2021)

● Total revenue of $452.4 million, an increase of 36%.

● Media Transactions Measured (MTM) were 5.5 trillion, an increase of 22%.

● Measured Transaction Fee (MTF) was $0.072, an increase of 7%

● Net Revenue Retention (NRR) of 127%

● Activation revenue of $251.2 million, an increase of 50%.

● Measurement revenue of $157.9 million, an increase of 17%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Social measurement revenue increased by 28% and represented 37% of Measurement Revenue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Media Transactions Measured for CTV increased by 45%.

● International revenue increased by 12%

● Supply-Side revenue of $43.3 million, an increase of 47%.

● Net income of $43.3 million, an increase of 48%.

● Adjusted EBITDA of $141.6 million, an increase of 29%, representing a 31% adjusted EBITDA margin.

#### Fourth Quarter and Recent Business Highlights:
● Grew Media Transactions Measured ("MTM") by 22% and increased Measured Transaction Fee ("MTF") by 3%.

● Continued to achieve a Gross Revenue Retention rate of over 95% in the fourth quarter.

● Grew premium-priced Authentic Brand Suitability (ABS) revenues by 38% year-over-year in the fourth quarter driven by new advertisers activating the solution as well as by existing client upsells and geographic expansion.

● Drove global market share growth through product upsells, international expansion and new enterprise logo wins, including Dropbox, AirBnB, GlaxoSmithKline, Swarovski, Mattress Firm, Adobe Japan and Fujifilm Japan.

● Successfully launched post campaign Brand Safety and Suitability measurement on TikTok and on Twitter's newsfeed, known as Timelines. This proprietary solution leverages DV's artificial intelligence, machine learning, ontology, and manual review to give advertisers confidence that their ads are appearing next to content that is brand safe and suitable.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

● Launched the industry's first-ever scalable solution to verify viewability on Connected TV (CTV), augmenting advertiser confidence in their media investment on this premium channel. This expansion of viewability enables advertisers to more fully measure delivery of the DV Authentic Ad™ across CTV inventory. The DV Authentic Ad™ is a proprietary, MRC-accredited metric that ensures consistent media quality across digital environments.

● Received Media Rating Council (MRC) accreditation for its DV Authentic Attention® metrics, DV's attention-based analytics and performance solution. This first time accreditation for attention spans DV's full set of display and video DV Authentic Attention® metrics for desktop, mobile web, and mobile app.

● Uncovered "BeatSting," the first large-scale ad impression fraud scheme to target audio inventory. Since the DV Fraud Lab first identified the family of fraud in 2019, an estimated $20 million has been siphoned from advertisers. BeatSting alone is responsible for costing unprotected advertisers up to $1 million per month.

"We delivered another strong year with 36% revenue growth and 31% adjusted EBITDA margins as we continued to outperform the broader digital advertising industry through a challenging macroeconomic environment," said Nicola Allais, CFO of DoubleVerify. "Our fourth quarter and full-year outperformance is a testament to the essential nature of our products and to the strong execution of our teams. Our pipeline remains robust and with nearly $270 million dollars of cash and zero debt on our balance sheet, we are well-positioned to drive further business expansion and accelerate our long term growth."

#### First Quarter and Full-Year 2023 Guidance:
DoubleVerify anticipates Revenue and Adjusted EBITDA to be in the following ranges:

#### First Quarter 2023:
● Revenue of $117 to $119 million, a year-over-year increase of 22% at the midpoint.

● Adjusted EBITDA in the range of $28 to $30 million, representing a 25% margin at the midpoint.

#### Full Year 2023:
● Revenue of $550 to $564 million, a year-over-year increase of 23% at the midpoint .

● Adjusted EBITDA in the range of $164 to $172 million, representing a 30% margin at the midpoint .

------

With respect to the Company's expectations under "First 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 stock-based compensation expense, 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.

#### Conference Call, Webcast and Other Information
DoubleVerify will host a conference call and live webcast to discuss its fourth quarter 2022 financial results at 4:30 p.m. Eastern Time today, March 1, 2023. To access the conference call, dial (877) 841-2987 for the U.S. or Canada, or (215) 268-9878 for international callers. The webcast will be available live on the Investors section of the Company's website at https://ir.doubleverify.com/. An archived webcast will be available approximately two hours after the conclusion of the live event.

In addition, DoubleVerify plans to post certain additional historical quarterly financial information on the investor relations portion of its website for easy access to investors.

#### Key Business Terms
**Activation** revenue is generated from the evaluation, verification and measurement of advertising impressions purchased through programmatic demand-side and social media platforms.

**Measurement** revenue is generated from the verification and measurement of advertising impressions that are directly purchased on digital media properties, including publishers and social media platforms.

**Supply-Side** revenue is generated from platforms and publisher partners who use DoubleVerify's data analytics to evaluate, verify and measure their advertising inventory.

**Net Revenue Retention Rate** is the total current period revenue earned from advertiser customers, which were also customers during the entire most recent twelve-month period, divided by the total prior year period revenue earned from the same advertiser customers, excluding a portion of our revenues that cannot be allocated to specific advertiser customers.

**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.

**Media Transactions Measured (MTM)** is the volume of media transactions that DoubleVerify's software platform measures.

**Measured Transaction Fee (MTF)** is the fixed fee DoubleVerify charges per thousand Media Transactions Measured.

------

**International Revenue Growth Rates** are inclusive of foreign currency fluctuations.

------

#### DoubleVerify Holdings, Inc.<br>CONSOLIDATED BALANCE SHEETS

---

| | | |
|:---|:---|:---|
|  | **As of December 31,**  | **As of December 31,**  |
| ***(in thousands, except per share data)*** | **2022** | **2021** |
| **Assets:** |  |  |
| Current assets |  |  |
| &nbsp;&nbsp;Cash and cash equivalents | $267813 | $221591 |
| &nbsp;&nbsp;Trade receivables, net of allowances for doubtful accounts of $8,893 and $6,527 as of December 31, 2022 and December 31, 2021, respectively | 167122 | 122938 |
| &nbsp;&nbsp;Prepaid expenses and other current assets | 10161 | 23295 |
| Total current assets | 445096 | 367824 |
| Property, plant and equipment, net | 47034 | 17575 |
| Operating lease right-of-use assets, net | 64692 |  |
| Goodwill | 343011 | 350560 |
| Intangible assets, net | 135429 | 153395 |
| Deferred tax assets | 35 | 60 |
| Other non-current assets | 1731 | 2780 |
| Total assets | $1037028 | $892194 |
| **Liabilities and Stockholder's Equity:** |  |  |
| Current liabilities |  |  |
| &nbsp;&nbsp;Trade payables | $6675 | $3853 |
| &nbsp;&nbsp;Accrued expense | 33085 | 41456 |
| &nbsp;&nbsp;Operating lease liabilities, current | 7041 |  |
| &nbsp;&nbsp;Income tax liabilities | 11953 | 1321 |
| &nbsp;&nbsp;Current portion of finance lease obligations | 1846 | 1970 |
| &nbsp;&nbsp;Contingent consideration current |  | 1717 |
| &nbsp;&nbsp;Other current liabilities | 8310 | 6716 |
| Total current liabilities | 68910 | 57033 |
| Operating lease liabilities, non-current | 74086 |  |
| Finance lease obligations | 779 | 2579 |
| Deferred tax liabilities | 12890 | 30307 |
| Other non-current liabilities | 3504 | 3209 |
| Total liabilities | $160169 | $93128 |
| Commitments and contingencies (Note 15) |  |  |
| Stockholders' equity |  |  |
| Common stock, $0.001 par value, 1,000,000 shares authorized, 165,448 shares issued and 165,417 outstanding as of December 31, 2022; 1,000,000 shares authorized, 162,347 shares issued and 162,297 outstanding as of December 31, 2021 | 165 | 162 |
| Additional paid-in capital | 756299 | 717228 |
| Treasury stock, at cost, 31 shares and 50 shares as of December 31, 2022 and December 31, 2021, respectively | (796) | (1802) |
| Retained earnings | 127517 | 84249 |
| Accumulated other comprehensive loss, net of income taxes | (6326) | (771) |
| Total stockholders' equity | 876859 | 799066 |
| Total liabilities and stockholders' equity | $1037028 | $892194 |

---

------

#### DoubleVerify Holdings, Inc.<br>CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,**  | **Year Ended December 31,**  | **Year Ended December 31,**  |
| ***(in thousands, except per share data)*** | **2022** | **2021** | **2020** |
| Revenue | $452418 | $332741 | $243917 |
| Cost of revenue (exclusive of depreciation and amortization shown separately below) | 77866 | 54382 | 35750 |
| Product development | 95118 | 62698 | 47004 |
| Sales, marketing and customer support | 107416 | 77312 | 62157 |
| General and administrative | 78666 | 81380 | 53056 |
| Depreciation and amortization | 34328 | 30285 | 24595 |
| &nbsp;&nbsp;Income from operations | 59024 | 26684 | 21355 |
| Interest expense | 905 | 1172 | 4931 |
| Other income, net | (1249) | (309) | (885) |
| &nbsp;&nbsp;Income before income taxes | 59368 | 25821 | 17309 |
| Income tax expense (benefit) | 16100 | (3487) | (3144) |
| &nbsp;&nbsp;Net income | $43268 | $29308 | $20453 |
| Earnings per share: |  |  |  |
| &nbsp;&nbsp;Basic | $0.26 | $0.20 | $0.15 |
| &nbsp;&nbsp;Diluted | $0.25 | $0.18 | $0.14 |
| Weighted-average common stock outstanding: |  |  |  |
| &nbsp;&nbsp;Basic | 163882 | 148309 | 138072 |
| &nbsp;&nbsp;Diluted | 170755 | 160264 | 145443 |
| Comprehensive income: |  |  |  |
| Net income | $43268 | $29308 | $20453 |
| Other comprehensive (loss) income: |  |  |  |
| &nbsp;&nbsp;Foreign currency cumulative translation adjustment | (5555) | (1782) | 1078 |
| Total comprehensive income | $37713 | $27526 | $21531 |

---

------

#### DoubleVerify Holdings, Inc.<br>CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | **Preferred Stock** | **Preferred Stock** |  |  | | | | |
|  | | | | | **Treasury Stock** | **Treasury Stock** | | | | |
| ***(in thousands)*** | **Shares**<br>**Issued** | <br>**Amount** | **Shares**<br>**Issued** | <br>**Amount** | **Shares** | **Amount** | <br>**Additional**<br>**Paid-in**<br>**Capital** | <br>**Retained**<br>**Earnings** | **Accumulated**<br>**Other**<br>**Comprehensive**<br>**(Loss) Income**<br>**Net of**<br>**Income Taxes** | <br>**Total**<br>**Stockholders'**<br>**Equity** |
| **Balances as of January 1, 2020** | 139721 | $140 |  | $— |  | $— | $283457 | $34488 | $(67) | $318018 |
| Foreign currency translation adjustment |  |  |  |  |  |  |  |  | 1078 | 1078 |
| Stock-based compensation  |  |  |  |  |  |  | 5984 |  |  | 5984 |
| Exchange of common stock for Series A preferred stock |  |  | 45438 | 454 | 15146 | (260686) | 260232 |  |  |  |
| Additional Series A preferred stock issuance, net of issuance costs |  |  | 15568 | 156 |  |  | 85308 |  |  | 85464 |
| Repurchase of vested options |  |  |  |  |  |  | (15506) |  |  | (15506) |
| Common stock issued under employee purchase plan | 61 |  |  |  |  |  | 424 |  |  | 424 |
| Common stock issued upon exercise of stock options | 255 |  |  |  |  |  | 780 |  |  | 780 |
| Common stock issued upon vesting of restricted stock units | 185 |  |  |  |  |  |  |  |  |  |
| Net income |  |  |  |  |  |  |  | 20453 |  | 20453 |
| **Balances as of December 31, 2020** | 140222 | $140 | 61006 | $610 | 15146 | $(260686) | $620679 | $54941 | $1011 | $416695 |
| Foreign currency translation adjustment |  |  |  |  |  |  |  |  | (1782) | (1782) |
| Shares repurchased for settlement of employee tax withholdings |  |  |  |  | 50 | (1802) |  |  |  | (1802) |
| Issuance of common stock as consideration for acquisition | 684 | 1 |  |  |  |  | 22525 |  |  | 22526 |
| Stock-based compensation |  |  |  |  |  |  | 21887 |  |  | 21887 |
| Common stock issued under employee purchase plan | 15 |  |  |  |  |  | 404 |  |  | 404 |
| Common stock issued upon exercise of stock options | 4782 | 5 |  |  |  |  | 12435 |  |  | 12440 |
| Common stock issued upon vesting of restricted stock units | 366 |  |  |  |  |  |  |  |  |  |
| Conversion of Series A preferred stock to common stock | 5190 | 5 | (61006) | (610) | (15146) | 260686 | (260081) |  |  |  |
| Issuance of common stock upon initial public offering | 9977 | 10 |  |  |  |  | 269380 |  |  | 269390 |
| Private placement stock issuance concurrent with initial public offering | 1111 | 1 |  |  |  |  | 29999 |  |  | 30000 |
| Net income |  |  |  |  |  |  |  | 29308 |  | 29308 |
| **Balances as of December 31, 2021** | 162347 | $162 |  | $— | 50 | $(1802) | $717228 | $84249 | $(771) | $799066 |
| Foreign currency translation adjustment |  |  |  |  |  |  |  |  | (5555) | (5555) |
| Shares repurchased for settlement of employee tax withholdings |  |  |  |  | 402 | (10244) |  |  |  | (10244) |
| Stock-based compensation expense |  |  |  |  |  |  | 42787 |  |  | 42787 |
| Common stock issued to non-employees | 4 |  |  |  |  |  |  |  |  |  |
| Common stock issued upon exercise of stock options | 1518 | 2 |  |  |  |  | 5801 |  |  | 5803 |
| Common stock issued upon vesting of restricted stock units | 1488 | 1 |  |  |  |  | (1) |  |  |  |
| Common stock issued under employee purchase plan | 91 |  |  |  |  |  | 1734 |  |  | 1734 |
| Treasury stock reissued upon settlement of equity awards |  |  |  |  | (421) | 11250 | (11250) |  |  |  |
| Net income |  |  |  |  |  |  |  | 43268 |  | 43268 |
| **Balances as of December 31, 2022** | 165448 | $165 |  | $— | 31 | $(796) | $756299 | $127517 | $(6326) | $876859 |

---

------

#### DoubleVerify Holdings, Inc.<br>CONSOLIDATED STATEMENTS OF CASH FLOWS

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,**  | **Year Ended December 31,**  | **Year Ended December 31,**  |
| ***(in thousands)*** | **2022** | **2021** | **2020** |
| **Operating activities:** |  |  |  |
| Net income | $43268 | $29308 | $20453 |
| Adjustments to reconcile net income to net cash provided by operating activities |  |  |  |
| &nbsp;&nbsp;&nbsp;Bad debt expense (recovery) | 5033 | (711) | 4811 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization expense | 34328 | 30285 | 24595 |
| &nbsp;&nbsp;&nbsp;Amortization of debt issuance costs | 294 | 294 | 285 |
| &nbsp;&nbsp;&nbsp;Non-cash lease expense | 7339 |  |  |
| &nbsp;&nbsp;&nbsp;Loss on extinguishment of debt |  |  | 350 |
| &nbsp;&nbsp;&nbsp;Accretion of acquisition liabilities |  |  | 36 |
| &nbsp;&nbsp;&nbsp;Deferred taxes | (19581) | (7866) | (5137) |
| &nbsp;&nbsp;&nbsp;Stock-based compensation expense | 42307 | 21887 | 5984 |
| &nbsp;&nbsp;&nbsp;Interest expense (income) | 107 | 103 | (12) |
| &nbsp;&nbsp;&nbsp;Loss on disposal of fixed assets | 1353 |  |  |
| &nbsp;&nbsp;&nbsp;Impairment of long-lived assets | 1510 |  |  |
| &nbsp;&nbsp;&nbsp;Change in fair value of contingent consideration  |  | 57 | (949) |
| &nbsp;&nbsp;&nbsp;Offering costs |  | 22074 | 3555 |
| &nbsp;&nbsp;&nbsp;Other | 87 | 733 | 673 |
| Changes in operating assets and liabilities, net of effects of business combinations |  |  |  |
| &nbsp;&nbsp;&nbsp;Trade receivables | (49765) | (22004) | (30443) |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | 9094 | (7567) | (9013) |
| &nbsp;&nbsp;&nbsp;Trade payables | 2884 | (49) | 2482 |
| &nbsp;&nbsp;&nbsp;Accrued expenses and other liabilities | 16604 | 16205 | 3546 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 94862 | 82749 | 21216 |
| **Investing activities:** |  |  |  |
| Purchase of property, plant and equipment | (39981) | (9397) | (9751) |
| Acquisition of businesses, net of cash acquired |  | (149217) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (39981) | (158614) | (9751) |
| **Financing activities:** |  |  |  |
| Proceeds from long-term debt |  |  | 89650 |
| Payments of long-term debt |  | (22000) | (142113) |
| Deferred payment related to Leiki acquisition |  |  | (2033) |
| Deferred payment related to Zentrick acquisition |  | (50) | (50) |
| Payment of contingent consideration related to Zentrick acquisition | (3247) |  | (601) |
| Repurchase of vested options |  |  | (15506) |
| Proceeds from Series A preferred stock issuance, net of issuance costs |  |  | 346150 |
| Payments to shareholders for preferred stock Series A |  |  | (260686) |
| Proceeds from common stock issued upon exercise of stock options  | 5803 | 12440 | 780 |
| Proceeds from common stock issued under employee purchase plan | 1734 | 404 | 424 |
| Proceeds from issuance of common stock upon initial public offering |  | 269390 |  |
| Proceeds from issuance of common stock in connection to concurrent private placement |  | 30000 |  |
| Payments related to offering costs | (6) | (22069) | (3610) |
| Payments related to debt issuance costs  |  |  | (577) |
| Finance lease payments | (1924) | (1918) | (1443) |
| Shares repurchased for settlement of employee tax withholdings | (10244) | (1802) |  |
| &nbsp;&nbsp;&nbsp;Net cash (used in) provided by financing activities | (7884) | 264395 | 10385 |
| Effect of exchange rate changes on cash and cash equivalents and restricted cash | (784) | (200) | 203 |
| Net increase in cash, cash equivalents, and restricted cash | 46213 | 188330 | 22053 |
| Cash, cash equivalents, and restricted cash—Beginning of period | 221725 | 33395 | 11342 |
| Cash, cash equivalents, and restricted cash—End of period | $267938 | $221725 | $33395 |
| Cash and cash equivalents | $267813 | $221591 | $33354 |
| Restricted cash (included in prepaid expenses and other assets on the Consolidated Balance Sheets) | 125 | 134 | 41 |
| Total cash and cash equivalents and restricted cash | $267938 | $221725 | $33395 |
| **Supplemental cash flow information:** |  |  |  |
| Cash paid for taxes | 12351 | 7698 | 16180 |
| Cash paid for interest | 554 | 774 | 3369 |
| **Non-cash investing and financing transactions:** |  |  |  |
| Common stock issued in connection with acquisition |  | 22526 |  |
| Exchange of common stock for preferred stock |  |  | 260686 |
| Right-of-use assets obtained in exchange for new operating lease liabilities, net of impairments and tenant improvement allowances | 71979 |  |  |
| Acquisition of equipment under finance lease |  | 1518 | 1603 |
| Capital assets financed by accounts payable | 12 | 36 |  |
| Treasury stock reissued upon the conversion of Series A preferred stock for common stock |  | 260686 |  |
| Offering costs included in accounts payable and accrued expense |  | 5 | 75 |
| Stock-based compensation included in capitalized software development costs | 480 |  |  |

---

------

#### Comparison of the Three and Twelve Months Ended December 31, 2022 and December 31, 2021

#### Revenue

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended December 31,**  | **Three Months Ended December 31,**  | | **Year Ended December 31,**  | **Year Ended December 31,**  | |
|  | **2022** | **2021** | **Change**<br>$**%** | **2022** | **2021** | **Change**<br>$**%** |
|  | ***(In Thousands)*** | ***(In Thousands)*** |  | ***(In Thousands)*** | ***(In Thousands)*** |  |
| **Revenue by customer type:** |  |  |  |  |  |  |
| Measurement (f/k/a Advertiser - direct) | $46324 | $42256 | 10% | $157908 | $135516 | 17% |
| Activation (f/k/a Advertiser - programmatic) | 75502 | 54104 | 40 | 251198 | 167798 | 50 |
| Supply-side customer | 11810 | 9173 | 29 | 43312 | 29427 | 47 |
| Total revenue | $133636 | $105533 | 27% | $452418 | $332741 | 36% |

---

#### Adjusted EBITDA
In addition to our results determined in accordance with GAAP, we believe that certain non-GAAP financial measures, including Adjusted EBITDA and Adjusted EBITDA Margin, are useful in evaluating our business. We calculate Adjusted EBITDA Margin as Adjusted EBITDA divided by total revenue. The following table presents a reconciliation of Adjusted EBITDA, a non-GAAP financial measure, to the most directly comparable financial measure prepared in accordance with GAAP.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended December 31,**  | **Three Months Ended December 31,**  | **Year Ended December 31,**  | **Year Ended December 31,**  |
|  | **2022** | **2021** | **2022** | **2021** |
|  | ***(In Thousands)*** | ***(In Thousands)*** | ***(In Thousands)*** | ***(In Thousands)*** |
| Net income | $18068 | $28308 | $43268 | $29308 |
| Net income margin | 14% | 27% | 10% | 9% |
| Depreciation and amortization | 8882 | 8296 | 34328 | 30285 |
| Stock-based compensation | 11083 | 9787 | 42307 | 21887 |
| Interest expense | 224 | 237 | 905 | 1172 |
| Income tax expense (benefit) | 11979 | (11848) | 16100 | (3487) |
| M&A and restructuring costs (a) | 5 | 2382 | 1224 | 3510 |
| Offering, IPO readiness and secondary offering costs (b) | 566 | 1099 | 1292 | 23564 |
| Other (recoveries) costs (c)  | (245) | 2825 | 3414 | 3812 |
| Other income (d) | (1671) | (674) | (1249) | (309) |
| &nbsp;&nbsp;Adjusted EBITDA | $48891 | $40412 | $141589 | $109742 |
| Adjusted EBITDA margin | 37% | 38% | 31% | 33% |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;(a) M&A and restructuring costs for the year ended December 31, 2022 consist of transaction costs, integration and restructuring costs related to the acquisition of OpenSlate. M&A costs for the year ended December 31, 2021 consist of transaction and integration costs related to the acquisition of Meetrics and OpenSlate as well as associated restructuring costs and related activities.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Offering, IPO readiness and secondary offering costs for the year ended December 31, 2022 consist of third-party costs incurred for the Company's filing of a "shelf" registration statement on Form S-3, and costs incurred for an underwritten secondary public offering by certain stockholders of the Company. Offering, IPO readiness and secondary offering costs for the year ended December 31, 2021 consist of third-party costs incurred for the Company's IPO, and costs for an underwritten secondary public offering by certain stockholders of the Company.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;(c) Other costs for the year ended December 31, 2022 consist of 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, partially offset by sublease income for lease office space. Other costs for the year ended December 31, 2021 include reimbursements paid to Providence for costs incurred prior to the IPO date, non-recurring recognition of a cease-use liability related to unoccupied lease office space, and costs associated with the early termination of the agreement for the Zentrick Deferred Payment Terms, previously disclosed as a contingency.

&nbsp;&nbsp;&nbsp;&nbsp;(d) Other income for the years ended December 31, 2022 and 2021 consists of interest income earned on monetary assets, changes in fair value associated with contingent consideration, and 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 our operating results on a consistent basis by excluding items that we do not believe are indicative of our core operating performance.

These non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as substitutes for an analysis of our results as reported under GAAP. Some of the limitations of these measures are:

● they do not reflect changes in, or cash requirements for, working capital needs;

● Adjusted EBITDA does not reflect capital expenditures or future requirements for capital expenditures or contractual commitments;

● they do not reflect income tax expense or the cash requirements to pay income taxes;

● they do not reflect interest expense or the cash requirements necessary to service interest or principal debt payments; and

● although depreciation and amortization are non-cash charges related mainly to intangible assets, certain assets being depreciated and amortized will have to be replaced in the future, and Adjusted EBITDA does not reflect any cash requirements for such replacements.

In addition, other companies in our industry may calculate these non-GAAP financial measures differently than we do, limiting their usefulness as a comparative measure. You should compensate for these limitations by relying primarily on our GAAP results and using the non-GAAP financial measures only supplementally.

Total stock-based compensation expense recorded in the Consolidated Statements of Operations and Comprehensive Income is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  | **Year Ended**  | **Year Ended**  |
|  | **December 31,**  | **December 31,**  | **December 31,**  | **December 31,**  |
| ***(in thousands)*** | **2022** | **2021** | **2022** | **2021** |
| Product development | 4455 | 2416 | 15030 | 4369 |
| Sales, marketing and customer support | 3547 | 2632 | 14265 | 6375 |
| General and administrative | 3081 | 4739 | 13012 | 11143 |
| Total stock-based compensation | $11083 | $9787 | $42307 | $21887 |

---

------

The weighted average basic and diluted shares outstanding for the three months and year ended December 31, 2022 is as follows:

---

| | | |
|:---|:---|:---|
| ***(in thousands)*** | **Three Months Ended** <br>**December 31, 2022** | **Year Ended** <br>**December 31, 2022** |
| &nbsp;&nbsp;Weighted-average common shares outstanding: |  |  |
| &nbsp;&nbsp;Basic | 164978 | 163882 |
| &nbsp;&nbsp;Diluted | 171214 | 170755 |

---

#### Forward-Looking Statements
This press release includes "forward-looking statements". Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "plan," "seek," "will," "expect," "intend," "estimate," "anticipate," "believe" or "continue" or the negative thereof or variations thereon or similar terminology. Any statements in this press release regarding future revenues, earnings, margins, financial performance or results of operations (including the guidance provided under "First Quarter and Full-Year 2023 Guidance"), and any other statements that are not historical facts are forward-looking statements. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. We caution you that the forward-looking information presented in this press release is not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking information contained in this press release. These risks, uncertainties, assumptions and other factors include, but are not limited to, the competitiveness of our solutions amid technological developments or evolving industry standards, the competitiveness of our market, system failures, security breaches, cyberattacks or natural disasters, economic downturns and unstable market conditions, our ability to collect payments, data privacy legislation and regulation, public criticism of digital advertising technology, our international operations, our use of "open source" software, our limited operating history and the potential for our revenues and results of operations to fluctuate in the future. Moreover, we operate in a very competitive and rapidly changing environment, and new risks may emerge from time to time. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make.

Further information on these and additional risks, uncertainties, and other factors that could cause actual outcomes and results to differ materially from those included in or contemplated by the forward-looking statements contained in this press release are included under the caption "Risk Factors" under our Annual Report on Form 10-K filed with the SEC on March 1, 2023 and other filings and reports we make with the SEC from time to time.

We have based our forward-looking statements on our management's beliefs and assumptions based on information available to our management at the time the statements are made. Any forward-looking information presented herein is made only as of the date of this press release, and, except as required by law, we do not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

------

#### About DoubleVerify
DoubleVerify is a leading software platform for digital media measurement and analytics. Our mission is to make the digital advertising ecosystem stronger, safer and more secure, thereby preserving the fair value exchange between buyers and sellers of digital media. Hundreds of Fortune 500 advertisers employ our unbiased data and analytics to drive campaign quality and effectiveness, and to maximize return on their digital advertising investments – globally.

#### Investor Relations
Tejal Engman

DoubleVerify

IR@doubleverify.com

#### Media Contact
Chris Harihar

Crenshaw Communications

646-535-9475

chris@crenshawcomm.com

------