We have a special feeling for DoubleVerify, as it has blacklisted WOLF Street from the “brand safety” services that DoubleVerify promotes to advertisers.
Written by Wolf Richter of Wolf Street.
DoubleVerify Holdings shares [DV] After announcing its earnings last night, the stock plunged 40% today and is currently trading at $18.25. The stock is now down 62% from its intraday high on June 29, 2021, and well below its April 2021 IPO price of $27.
The ad tech company is intervening between advertisers and Internet publishers, seeking to extract funds from both for a variety of services it promotes with dubious claims. Before today’s accident, the company’s market capitalization was $5.3 billion, but it is now $3.2 billion, down $2.1 billion.
The company’s stock price fell today as it disclosed several issues and lowered its full-year sales outlook from a range of $688 million to $704 million to a range of $663 million to $675 million. It fell sharply today. It also lowered its “adjusted EBITDA” guidance. “This was primarily due to uneven spending patterns by some of the large retail and consumer goods advertisers mentioned in the previous quarter,” the report said.
Net income fell 42% to $7.1 million. Adjusted for foreign currency translation, the figure was even smaller at just $2.5 million. This is close to zero for a company, even though his new and improved market cap is $3.2 billion. Wolf Street downgraded DV from “should have already sold” to “should never have bought”.
The company’s IPO took place in April 2021, just two months after the peak of hype and fuss in February 2021. By March 2021, we were surprised to see all of this fall apart and created the Hall of Collapse Stocks. They plummeted by more than 70%. And we are currently busy securing space for his DoubleVerify in this increasingly crowded pantheon.
We have a special feeling for DoubleVerify because they have blacklisted WOLF Street as part of the brand safety services they promote to advertisers. So in effect, advertisers are paying her DoubleVerify to block their carefully crafted and costly communications from reaching their readers.
Our readers tend to have high incomes. Many have invested heavily. Many work in finance or real estate. Many own companies, from financial advisors to manufacturing companies. Many are top executives. Quite a few of them have reached out to me and donated very generously to WOLF Street (mainly supported by donations).
These are the audiences that advertisers, especially financial services companies, have difficulty reaching through communication channels. However, some of these advertisers pay DoubleVerify to block their communications from reaching their readers. In addition to being a terrible deal for advertisers, it also costs Wolf Street a lot of advertising revenue.
In July 2020, DoubleVerify announced, no joke, that it had updated some of its terms after a “social justice hackathon.” For example, the company replaced the word “blacklist” with “exclusion list” in the service it promotes to advertisers because, as you know, it includes the word “black.” It also replaced the term “whitelist” because it includes the word “white.”
“DoubleVerify ensures advertisers get what they pay for by ensuring their ads are shown to their target audience and not displayed alongside objectionable content,” Barron’s said. touted the service today when it reported on the domestic violence coaching debacle – the disturbing content. Articles and charts found on Wolf Street.
Ad tech, including Google and companies like DoubleVerify, is sucking more and more ad dollars out of the flow between advertisers and publishers, with advertisers continuing to pay more and more and publishers earning less and less. I am. He now joins a long list of online publishers who have drastically cut back on work, many of which have shut down completely.
Thankfully, WOLF Street is supported primarily by donations from our many generous and loyal readers, people who do not want DoubleVerify to see communications from their advertiser clients.
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