DoubleVerify (DV) Ad Metrics Under Scrutiny – Hagens Berman

/EIN News/ -- SAN FRANCISCO, March 13, 2025 (GLOBE NEWSWIRE) -- Hagens Berman, a leading class-action law firm, has launched an investigation into DoubleVerify Holdings, Inc. (NYSE: DV) for possible violations of U.S. securities laws.   The probe comes in the wake of a series of disappointing financial results following the company's disclosure of issues with its brand safety score tool for X (formerly Twitter) advertisers.

Hagens Berman urges investors who purchased DoubleVerify shares and suffered substantial losses to submit your losses now. The firm also encourages persons with information who may assist the firm’s investigation to contact its attorneys.

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DoubleVerify Holdings, Inc. (DV) Investigation:

DoubleVerify, known for its analytics tools that help advertisers gauge the effectiveness of their spending, has been facing a troubling trend of decelerating growth. While the company reported a 15% year-over-year revenue increase for 2024, its fourth-quarter results fell short of expectations, with revenue of $190.6 million representing only an 11% increase.

The company’s outlook for 2025 has further fueled concerns, with projected revenue growth of just 10%, continuing a multi-year slowdown. This marks a stark contrast to DoubleVerify's previous performance, which saw revenue growth of 36% in both 2021 and 2022, followed by 27% in 2023.

At the heart of the firm’s investigation is the question of whether DoubleVerify made misrepresentations or omissions regarding its analytic tools, including its brand safety score tool for X advertisers. The company faced a significant setback when it was revealed that incorrect data had been displayed for nearly five months, potentially deterring advertisers from investing in the platform.

The fallout from this error became apparent on May 7, 2024, when DoubleVerify reduced its fiscal 2024 revenue guidance. The company explained in April 2024 that its dashboard had incorrectly displayed X’s brand safety rates as low as 70% for nearly five months, when the correct score was actually 99.99%. This error potentially deterred advertisers from investing in the platform, leading to a pullback in customer spending. The announcement led to a dramatic 38.5% drop in the company's stock price, closing at $18.78 per share on May 8, 2024.

The situation worsened with DoubleVerify's recent Q4 2024 earnings report delivered on February 28, 2025. During the earnings call, management attributed the decelerating growth to reduced spending from some of its largest customers. Notably, one major client cut back so significantly that DoubleVerify has excluded them entirely from its 2025 guidance. This wasn't an isolated incident, as six of DoubleVerify's big customers purportedly reduced their spending in 2024.

While DoubleVerify has blamed the customers’ reduced spending on company-specific issues, questions about whether the provision of potentially defective analytics could be behind this significant customer exodus. The investigation by Hagens Berman aims to determine if DoubleVerify’s actions constitute a breach of the federal securities laws.

“The company’s decelerating growth and loss of major customers raise serious questions about the quality of their services and the potential impact on shareholder value,” said Reed Kathrein, the Hagens Berman Partner leading the firm's probe. “Our investigation focuses on whether DoubleVerify misrepresented the accuracy and reliability of its analytics tools, particularly the brand safety score for X advertisers.”

If you invested in DoubleVerify and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »

If you’d like more information and answers to frequently asked questions about the DoubleVerify investigation, read more »

Whistleblowers: Persons with non-public information regarding DoubleVerify should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email DV@hbsslaw.com.

About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw. 

Contact:
Reed Kathrein, 844-916-0895