Palantir shares rise 5% premarket as AI-fueled demand powers annual guidance raise
NEW YORK - DoubleVerify (NYSE: NYSE:DV), a prominent software platform for digital media measurement and analytics with an impressive 82.42% gross profit margin and market capitalization of $3.71 billion, has announced an agreement to purchase Rockerbox, a marketing attribution company. According to InvestingPro analysis, the company appears undervalued based on its Fair Value estimates, with strong fundamentals supported by a perfect Piotroski Score of 9. The $85 million cash transaction is set to enhance DoubleVerify’s data solutions, adding advanced capabilities in media performance measurement and AI-powered campaign optimization. The company’s strong balance sheet, with more cash than debt and a healthy current ratio of 6.57, positions it well for this strategic acquisition.
The acquisition, expected to close early in the second quarter, aims to provide advertisers with a comprehensive view of campaign performance across various channels, including the open web, search, social, and Connected TV (CTV). By integrating Rockerbox’s technology, DoubleVerify will offer insights into customer journeys, enabling marketers to optimize media investments and drive real business outcomes.
Mark Zagorski, CEO of DoubleVerify, highlighted the significance of the acquisition, stating that it represents a transformative opportunity to extend the company’s offerings from media quality and performance measurement to definitive ad KPI achievement. He emphasized the potential for DoubleVerify to become a unified, independent platform for digital-first performance measurement and AI-powered optimization.
Rockerbox’s CEO, Ron Jacobson, expressed enthusiasm about joining DoubleVerify, emphasizing the combined capabilities of both companies to deliver a leading full-funnel measurement offering. The integration is designed to provide advertisers with granular, cross-channel path-to-conversion insights, improve budget allocation and media planning, and boost operational efficiency through automated data collection and media optimization.
A recent test with a global brand demonstrated the effectiveness of the combined solution, with reported reductions in cost per acquisition (CPA) of 39% and 20% across two live campaigns. This showcases the potential of AI-powered activation and advanced attribution insights to enhance efficiency and performance.
The deal is expected to expand DoubleVerify’s total addressable market, particularly in lower-funnel direct-response advertising, and strengthen its ability to serve small to mid-sized performance companies. With revenue growth of 19.57% and eight analysts recently revising earnings estimates upward, the company shows promising momentum. InvestingPro subscribers can access 11 additional key insights about DoubleVerify, including detailed financial health scores and comprehensive Pro Research Reports, which are available for over 1,400 US stocks.
DoubleVerify will offer more details about the acquisition during its fourth-quarter 2024 earnings call on February 27, 2025. The information in this article is based on a press release statement.
In other recent news, DoubleVerify has introduced new content-level controls for advertising on Meta’s Facebook (NASDAQ:META) and Instagram platforms. This development aims to enhance brand safety and ad performance by allowing advertisers to avoid unsuitable content proactively. The company has rolled out 30 new content-level avoidance categories, improving advertisers’ ability to control ad placement according to brand values. Additionally, DoubleVerify plans to implement a price increase of about 5% across its products, effective February 1st, as reported by Stifel analysts. This strategic move is seen as a response to alleviate pricing pressure concerns within the verification industry.
Stifel has maintained its Buy rating for DoubleVerify, with a price target of $22.00, suggesting a positive outlook for the company. Furthermore, Raymond (NSE:RYMD) James has initiated coverage on DoubleVerify with an Outperform rating and a price target of $25.00. The firm highlighted DoubleVerify’s strong market position and anticipated growth in digital advertising spend. The company’s financial profile is expected to remain attractive, with projected medium-term growth rates and EBITDA margins surpassing 35%. These recent developments reflect a favorable sentiment towards DoubleVerify’s future prospects in the digital advertising landscape.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.