Tariff Impact? Not For Software Provider DoubleVerify, Here's Why

Needham analyst Laura Martin reiterated a Buy rating on the shares of DoubleVerify Holdings Inc (NYSE:DV) with a price forecast of $22.

On April 2, President Trump announced reciprocal tariffs, including a 10% hike on all countries except Mexico and Canada, with higher rates for select nations with trade deficits.

The analyst discussed DoubleVerify’s exposure to tariffs and the implications. The New York-based company operates on a fixed-fee basis rather than a revenue-sharing model, ensuring stable earnings regardless of ad spend fluctuations, said the analyst.

Since all of DoubleVerify's revenue is digital, with 30% generated outside the U.S., it is less vulnerable to domestic tariff impacts.

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DoubleVerify verifies ads across Walled Gardens and the Open Internet, ensuring consistent revenue as long as digital advertising continues.

The company is not heavily reliant on industries like automotive, industrials, or durables, which are more affected by tariffs, noted the analyst.

Expanding customer adoption, product up-sells, and traction with Meta's pre-bid product could mitigate economic uncertainties.

DV has maintained double-digit growth across activation, measurement, and supply-side revenue streams, with a 95%+ gross revenue retention rate, positioning it as more resilient than other ad-focused companies, the analyst opined.

The digital advertising industry is expanding at 10% annually, providing a long-term growth opportunity for DV, uniquely verifying impressions across both Walled Gardens (Meta, Google, TikTok, etc.) and the Open Internet.

DoubleVerify benefits from high barriers to entry, a strong client retention record, and a dominant 70-80% success rate in competitive bids, reinforcing its leadership in digital ad verification, Martin said.

Price Action: DoubleVerify shares traded lower by 0.95% at $12.52 at last check Friday.

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