What happened
Shares of advertising-technology (adtech) company DoubleVerify Holdings (DV 0.30%) jumped on Thursday after the company's results for the second quarter of 2022 beat expectations and management raised full-year guidance. As of 11:40 a.m. ET today, DoubleVerify stock was up 5%, but it had been up nearly 16% earlier in the session.
So what
Many adtech stocks were challenged in the second quarter. But DoubleVerify proved resilient. Its technology helps brands be sure ads are being seen by consumers and are being shown in appropriate contexts. The company's revenue was up 43% year over year to nearly $110 million, a record for the second quarter and ahead of management's high-end guidance of $103 million.
Perhaps most encouraging in DoubleVerify's second-quarter report was the strength of its Custom Contextual product. According to management, revenue for this product was up 200% year over year and was one of the main drivers for its Activation revenue's 60% increase from last year.
Developed in 2020, Custom Contextual helps brands advertise without third-party identifiers, also known as cookies. And considering that big tech companies will be doing away with cookies in coming years, strength in this product is particularly good news for DoubleVerify.
Now what
DoubleVerify raised its full-year revenue guidance from a range of $439 million to $445 million to a range of $448 million to $450 million. This increase appears to simply be compensating for the size of its second-quarter beat, but it is encouraging for shareholders.
In short, this guidance suggests that DoubleVerify's second-quarter adoption was better than expected. Therefore, if this trend continues in 2022, investors can expect future quarters to also beat management's guidance.
