Q3 Earnings Highlights: DoubleVerify (NYSE:DV) Vs The Rest Of The Advertising Software Stocks

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how DoubleVerify (NYSE:DV) and the rest of the advertising software stocks fared in Q3.

The digital advertising market is large, growing, and becoming more diverse, both in terms of audiences and media. As a result, there is a growing need for software that enables advertisers to use data to automate and optimize ad placements.

The 7 advertising software stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.8% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Weakest Q3: DoubleVerify (NYSE:DV)

Using advanced analytics to evaluate over 17 billion digital ad transactions daily, DoubleVerify (NYSE:DV) provides AI-powered technology that verifies digital ads are viewable, fraud-free, brand-suitable, and displayed in the intended geographic location.

DoubleVerify reported revenues of $188.6 million, up 11.2% year on year. This print fell short of analysts’ expectations by 0.8%. Overall, it was a slower quarter for the company with revenue guidance for next quarter slightly missing analysts’ expectations and a slight miss of analysts’ revenue estimates.

DoubleVerify delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 7% since reporting and currently trades at $10.20.

Read our full report on DoubleVerify here, it’s free for active Edge members.

Best Q3: AppLovin (NASDAQ:APP)

Sitting at the crossroads of the mobile advertising ecosystem with over 200 free-to-play games in its portfolio, AppLovin (NASDAQ:APP) provides software solutions that help mobile app developers market, monetize, and grow their apps through AI-powered advertising and analytics tools.

AppLovin reported revenues of $1.41 billion, up 17.3% year on year, outperforming analysts’ expectations by 4.5%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ revenue estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 8.4% since reporting. It currently trades at $559.52.

Is now the time to buy AppLovin? Access our full analysis of the earnings results here, it’s free for active Edge members.

LiveRamp (NYSE:RAMP)

Serving as the digital middleman in an increasingly privacy-conscious world, LiveRamp (NYSE:RAMP) provides technology that helps companies securely share and connect their customer data with trusted partners while maintaining privacy compliance.

LiveRamp reported revenues of $199.8 million, up 7.7% year on year, exceeding analysts’ expectations by 1%. It may have had the worst quarter among its peers, but its results were still good as it also locked in an impressive beat of analysts’ EBITDA estimates and a narrow beat of analysts’ annual recurring revenue estimates.

LiveRamp delivered the weakest full-year guidance update in the group. The company added 5 enterprise customers paying more than $1 million annually to reach a total of 132. Interestingly, the stock is up 4.7% since the results and currently trades at $28.72.

Read our full analysis of LiveRamp’s results here.

Integral Ad Science (NASDAQ:IAS)

Processing over 280 billion digital ad interactions daily through its AI-powered technology, Integral Ad Science (NASDAQ:IAS) provides a cloud-based platform that measures and verifies digital advertising across devices, channels, and formats to ensure ads are viewable, fraud-free, and brand-safe.

Integral Ad Science reported revenues of $154.4 million, up 15.6% year on year. This result surpassed analysts’ expectations by 3.4%. It was a very strong quarter as it also put up a solid beat of analysts’ EBITDA estimates and a decent beat of analysts’ revenue estimates.

The stock is flat since reporting and currently trades at $10.26.

Read our full, actionable report on Integral Ad Science here, it’s free for active Edge members.

Zeta Global (NYSE:ZETA)

Powered by an AI engine that processes over one trillion consumer signals monthly, Zeta Global (NYSE:ZETA) operates a data-driven cloud platform that helps companies target, connect, and engage with consumers through personalized marketing across channels like email, social media, and video.

Zeta Global reported revenues of $337.2 million, up 25.7% year on year. This print topped analysts’ expectations by 2.7%. Overall, it was a very strong quarter as it also produced an impressive beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations.

Zeta Global pulled off the fastest revenue growth and highest full-year guidance raise among its peers. The stock is up 11.3% since reporting and currently trades at $18.65.

Read our full, actionable report on Zeta Global here, it’s free for active Edge members.

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

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