NEW YORK - DoubleVerify (NYSE:DV) Holdings, Inc. (NYSE: DV), a prominent software platform for digital media measurement, data, and analytics, announced today that its Board of Directors has approved a new stock repurchase program. The company may buy back up to $150 million of its outstanding common stock, a move that reflects its current financial strength and commitment to shareholder value.
The repurchase program allows DoubleVerify to acquire shares via open market purchases, aligning with the guidelines of Rule 10b-18 and/or Rule 10b5-1 plans. The decision to repurchase shares will be made based on market conditions, capital management, and other strategic considerations.
There is no set number of shares that DoubleVerify is committed to repurchasing, and the program has no expiration date. It can be modified, suspended, or discontinued at the discretion of the company.
As of March 31, 2024, DoubleVerify reported having cash and cash equivalents totaling approximately $302 million. The company plans to fund the repurchase program using its existing cash balance in addition to future cash flows. With about 172 million shares of common stock outstanding as of April 29, 2024, DoubleVerify is positioned to execute this program without compromising its operational liquidity.
The announcement includes forward-looking statements regarding the anticipated repurchases under the program and the program's funding. These statements are not guarantees of future performance and are subject to various risks and uncertainties. Actual results may differ from those projected in the forward-looking statements, which are based on management's current expectations and are subject to change.
DoubleVerify is known for leveraging artificial intelligence to enhance media effectiveness for global brands, aiming to strengthen the digital advertising ecosystem by ensuring transparency and securing fair value exchanges between buyers and sellers.
This news is based on a press release statement and does not constitute an endorsement of DoubleVerify's claims or future performance. The company's stock repurchase program is subject to change based on numerous factors, including market conditions and corporate strategy.
InvestingPro Insights
As DoubleVerify Holdings , Inc. (DV) initiates its stock repurchase program, a closer look at the company's financial health through InvestingPro data and insights may provide investors with a clearer picture of its current position. With a market capitalization of approximately $3.24 billion USD and a robust gross profit margin of 81.5% in the last twelve months as of Q1 2024, DoubleVerify showcases its financial resilience.
The company's commitment to shareholder value is further underlined by its strategic financial moves. One of the InvestingPro Tips highlights that DoubleVerify holds more cash than debt on its balance sheet, which supports the company's ability to fund the repurchase program using its existing cash balance. Moreover, the impressive gross profit margins underscore the company's ability to generate revenue efficiently, a positive sign for investors considering the stock's future potential.
Despite recent market volatility, with the stock trading near its 52-week low, DoubleVerify's strong fundamentals may offer a silver lining. The company's cash flows are sufficient to cover interest payments, and its liquid assets exceed short-term obligations, suggesting a solid financial footing. Still, it is worth noting that six analysts have revised their earnings downwards for the upcoming period, which could indicate potential headwinds.
For investors interested in a deeper dive into DoubleVerify's financials and future outlook, InvestingPro offers additional insights and metrics. Utilize the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and gain access to a wealth of information, including 17 more InvestingPro Tips that could guide your investment decisions.
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