UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
(Mark One)
EXCHANGE ACT OF 1934
For the quarterly period ended
or
EXCHANGE ACT OF 1934
For the transition period from to
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
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TABLE OF CONTENTS
2
Note About Forward Looking Statements
This Quarterly Report on Form 10-Q (“Quarterly Report”) includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements other than statements of historical facts included in this Quarterly Report, including, without limitation, statements regarding our future financial position, business strategy, budgets, projected costs, savings and plans and objectives of management for future operations, are forward-looking statements. In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe” or “continue” or the negative thereof or variations thereon or similar terminology. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to have been correct.
You should read the “Special Note Regarding Forward-Looking Statements” and “Risk Factors” sections of our final prospectus, dated April 20, 2021 and filed with the Securities and Exchange Commission (“SEC”), pursuant to Rule 424(b)(4) under the Securities Act, on April 22, 2021 (the “Prospectus”), for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis. There may be other factors not presently known to us or which we currently consider to be immaterial that may cause our actual results to differ materially from the forward-looking statements.
All forward-looking statements attributable to us or persons acting on our behalf apply only as of the date of this Quarterly Report and are expressly qualified in their entirety by the cautionary statements included in this Quarterly Report. We undertake no obligation to publicly update or revise forward-looking statements to reflect events or circumstances after the date made or to reflect the occurrence of unanticipated events.
“DoubleVerify,” “the DV Authentic Ad,” “Authentic Brand Safety,” “DV Pinnacle” and other trademarks of ours appearing in this report are our property and we deem particularly important to the marketing activities conducted by each of our businesses. Solely for convenience, the trademarks, service marks and trade names referred to in this report are without the ® and ™ symbols, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights to these trademarks, service marks and trade names. This report contains additional trade names and trademarks of other companies. We do not intend our use or display of other companies' trade names or trademarks to imply an endorsement or sponsorship of us by such companies, or any relationship with any of these companies.
Unless the context otherwise requires, the terms “DoubleVerify,” ‘‘we,’’ ‘‘us,’’ ‘‘our,’’ and the ‘‘Company,’’ as used in this report refer to DoubleVerify Holdings, Inc. and its consolidated subsidiaries. DoubleVerify Holdings, Inc. and its subsidiary DoubleVerify MidCo, Inc. changed their names from Pixel Group Holdings Inc. and Pixel Parent Inc., respectively, prior to the date of this report. All references to DoubleVerify Holdings, Inc. and DoubleVerify MidCo, Inc. are to these entities both prior to and after the name changes.
3
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
DoubleVerify Holdings, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
| As of |
| As of | |||
(in thousands, except per share data) | June 30, 2021 | December 31, 2020 | ||||
Assets: |
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Current assets |
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Cash and cash equivalents | $ | | $ | | ||
Trade receivables, net of allowances for doubtful accounts of $ | | | ||||
Prepaid expenses and other current assets |
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Total current assets |
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Property, plant and equipment, net |
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Goodwill |
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Intangible assets, net |
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Deferred tax assets |
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Other non-current assets |
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Total assets | $ | | $ | | ||
Liabilities and Stockholders' Equity: |
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Current liabilities |
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Trade payables | $ | | $ | | ||
Accrued expense |
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Income tax liabilities |
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Current portion of capital lease obligations |
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Contingent considerations current |
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Other current liabilities |
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Total current liabilities |
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Long-term debt |
| — |
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Capital lease obligations |
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Deferred tax liabilities |
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Other non-current liabilities |
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Contingent considerations non-current |
| — |
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Total liabilities | $ | | $ | | ||
Commitments and contingencies (Note 13) |
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Stockholders’ equity |
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Common stock, $ | | |||||
Preferred stock, $ |
| — |
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Additional paid-in capital | | | ||||
Treasury stock, at cost, | — | ( | ||||
Retained earnings |
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Accumulated other comprehensive income, net of income taxes |
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Total stockholders’ equity |
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Total liabilities and stockholders' equity | $ | | $ | |
See accompanying Notes to unaudited Condensed Consolidated Financial Statements.
4
DoubleVerify Holdings, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (UNAUDITED)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
(in thousands, except per share data) |
| 2021 |
| 2020 |
| 2021 |
| 2020 | ||||
Revenue | $ | | $ | | $ | | $ | | ||||
Cost of revenue (exclusive of depreciation and amortization shown separately below) |
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Product development |
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Sales, marketing and customer support |
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General and administrative |
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Depreciation and amortization |
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(Loss) income from operations |
| ( |
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| ( |
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Interest expense |
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Other expense (income), net |
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| — |
| ( | ||||
(Loss) income before income taxes |
| ( |
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| ( |
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Income tax expense |
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Net (loss) income | $ | ( | $ | | $ | ( | $ | | ||||
(Loss) earnings per share: |
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Basic | $ | ( | $ | | $ | ( | $ | | ||||
Diluted | $ | ( | $ | | $ | ( | $ | | ||||
Weighted-average common stock outstanding: |
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Basic |
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Diluted |
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Comprehensive (loss) income: |
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Net (loss) income | $ | ( | $ | | $ | ( | $ | | ||||
Other comprehensive (loss) income: |
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Foreign currency cumulative translation adjustment |
| |
| |
| ( |
| | ||||
Total comprehensive (loss) income | $ | ( | $ | | $ | ( | $ | |
See accompanying Notes to unaudited Condensed Consolidated Financial Statements.
5
DoubleVerify Holdings, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)
Accumulated |
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Other | |||||||||||||||||||||||||||
Comprehensive | |||||||||||||||||||||||||||
Additional | Income (Loss) | Total | |||||||||||||||||||||||||
Common Stock | Preferred Stock | Treasury Stock | Paid-in | Retained | Net of | Stockholders’ | |||||||||||||||||||||
(in thousands) |
| Shares |
| Amount |
| Shares |
| Amount |
| Shares |
| Amount |
| Capital |
| Earnings |
| Income Taxes |
| Equity | |||||||
Balance as of January 1, 2021 | | $ | | | $ | | | $ | ( | $ | | $ | | $ | | $ | | ||||||||||
Foreign currency translation adjustment | — |
| — | — |
| — | — |
| — |
| — |
| — |
| ( |
| ( | ||||||||||
Stock-based compensation expense | — |
| — | — |
| — | — |
| — |
| |
| — |
| — |
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Common stock issued upon exercise of stock options | |
| — | — |
| — | — |
| — |
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| — |
| — |
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Net income | — |
| — | — |
| — | — |
| — |
| — |
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| — |
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Balance as of March 31, 2021 | | $ | | | $ | | | $ | ( | $ | | $ | | $ | | $ | | ||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | — | | | |||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | | — | — | | |||||||||||||||||
Common stock issued upon exercise of stock options | | | — | — | — | — | | — | — | | |||||||||||||||||
RSU vested | | — | — | — | — | — | — | — | — | — | |||||||||||||||||
Conversion of Series A preferred stock to common stock in connection with initial public offering | | | ( | ( | ( | | ( | — | — | — | |||||||||||||||||
Issuance of common stock in connection with initial public offering | | | — | — | — | — | | — | — | | |||||||||||||||||
Issuance of common stock in connection with the private placement concurrent with the initial public offering | | | — | — | — | — | | — | — | | |||||||||||||||||
Net loss | — | — | — | — | — | — | — | ( | — | ( | |||||||||||||||||
Balance as of June 30, 2021 | | $ | | — | $ | — | — | $ | — | $ | | $ | | $ | | $ | | ||||||||||
Balance as of January 1, 2020 | | $ | | — | $ | — | — | $ | — | $ | | $ | | $ | ( | $ | | ||||||||||
Foreign currency translation adjustment | — |
| — | — |
| — | — |
| — |
| — |
| — |
| ( |
| ( | ||||||||||
Stock-based compensation expense | — |
| — | — |
| — | — |
| — |
| |
| — |
| — |
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Common stock issued upon exercise of stock options | |
| — | — |
| — | — |
| — |
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| — |
| — |
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Net income | — |
| — | — |
| — | — |
| — |
| — |
| |
| — |
| | ||||||||||
Balance as of March 31, 2020 | | $ | | — | $ | — | — | $ | — | $ | | $ | | $ | ( | $ | | ||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | — | | | |||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | | — | — | | |||||||||||||||||
Common stock issued upon exercise of stock options | | — | — | — | — | — | | — | — | | |||||||||||||||||
Net income | — | — | — | — | — | — | — | | — | | |||||||||||||||||
Balance as of June 30, 2020 | | $ | | — | $ | — | — | $ | — | $ | | $ | | $ | | $ | |
See accompanying Notes to unaudited Condensed Consolidated Financial Statements.
6
DoubleVerify Holdings, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Six Months Ended | ||||||
June 30, | ||||||
(in thousands) |
| 2021 |
| 2020 | ||
Operating activities: |
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Net (loss) income | $ | ( | $ | | ||
Adjustments to reconcile net (loss) income to net cash provided by operating activities |
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Bad debt expense |
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Depreciation and amortization expense |
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Amortization of debt issuance costs |
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Accretion of acquisition liabilities |
| — |
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Deferred taxes |
| ( |
| ( | ||
Stock-based compensation expense |
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Interest expense (income) |
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| ( | ||
Change in fair value of contingent consideration |
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| ( | ||
Offering costs | | | ||||
Other |
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Changes in operating assets and liabilities net of effect of business combinations |
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Trade receivables |
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| ( | ||
Prepaid expenses and other current assets |
| ( |
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Other non-current assets |
| ( |
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Trade payables and other liabilities |
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Accrued expenses |
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| ( | ||
Other current liabilities |
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| ( | ||
Other non-current liabilities |
| ( |
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Net cash provided by operating activities |
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Investing activities: |
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Purchase of property, plant and equipment |
| ( |
| ( | ||
Net cash (used in) investing activities |
| ( |
| ( | ||
Financing activities: |
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Payments of long-term debt | ( | ( | ||||
Deferred payment related to Leiki acquisition | — | ( | ||||
Deferred payment related to Zentrick acquisition | ( | ( | ||||
Payment of contingent consideration related to Zentrick acquisition |
| — |
| ( | ||
Proceeds from common stock issued upon exercise of stock options | | | ||||
Proceeds from issuance of common stock upon initial public offering | | — | ||||
Proceeds from issuance of common stock in connection with concurrent private placement | | — | ||||
Payments related to offering costs | ( | ( | ||||
Capital lease payments | ( |
| ( | |||
Net cash provided by (used in) financing activities |
| |
| ( | ||
Effect of exchange rate changes on cash and cash equivalents and restricted cash |
| |
| ( | ||
Net increase in cash, cash equivalents, and restricted cash |
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Cash, cash equivalents, and restricted cash - Beginning of period |
| |
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Cash, cash equivalents, and restricted cash - End of period | $ | | $ | | ||
Cash and cash equivalents | | | ||||
Restricted cash (included in prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets) |
| |
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Total cash and cash equivalents and restricted cash | $ | | $ | | ||
Supplemental cash flow information: |
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Cash paid for taxes |
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Cash paid for interest |
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Non-cash investing and financing activities: |
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Conversion of Series A preferred stock to common stock in connection with the initial public offering | | — | ||||
Treasury stock reissued upon the conversion of Series A preferred stock to common stock | | — | ||||
Acquisition of equipment under capital lease |
| |
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Capital assets financed by accounts payable |
| — |
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Offering costs included in accounts payable and accrued expense | | |
See accompanying Notes to unaudited Condensed Consolidated Financial Statements.
7
DoubleVerify Holdings, Inc.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Amounts in thousands, except per share data, unless otherwise stated)
1. Description of Business
DoubleVerify is a software platform for digital media measurement, data and analytics. The Company’s solutions provide advertisers with a single measure of digital ad quality and effectiveness, the DV Authentic Ad, which ensures that a digital ad was delivered in a brand-safe environment, fully viewable, by a real person and in the intended geography. The Company’s software interface, DV Pinnacle, provides customers with access to data on all of their digital ads and enables them to make changes to their ad strategies on a real-time basis. The Company’s software solutions are integrated across the entire digital advertising ecosystem, including programmatic platforms, Connected TV (“CTV”), social media channels and digital publishers. The Company’s solutions are accredited by the Media Rating Council, which allows the Company’s data to be used as a single-source standard in the evaluation and measurement of digital ads.
The Company was incorporated on August 16, 2017, is registered in the state of Delaware and is the parent company of DoubleVerify Midco, Inc. (“MidCo”), which is in turn the parent company of DoubleVerify Inc. On August 18, 2017, DoubleVerify Inc. entered into an agreement and plan of merger (the “Agreement”), whereby the Company, formerly known as Pixel Group Holdings, Inc. and Pixel Merger Sub, Inc. (“Merger Sub”), a wholly owned subsidiary of the Company, agreed to provide for the merger of the Merger Sub with DoubleVerify Inc. pursuant to the terms and conditions of the Agreement.
On the effective date, Merger Sub was merged with and into DoubleVerify Inc. whereupon the separate corporate existence of Merger Sub ceased and DoubleVerify Inc. continued as the surviving corporation.
Through the merger, the Company acquired
The Company has wholly owned subsidiaries in numerous jurisdictions including Israel, the United Kingdom, Germany, Singapore, Australia, Canada, Brazil, Belgium, Mexico, France, Japan, Spain, and Finland, and operates in
On April 23 2021, the Company completed an initial public offering of its common stock (“IPO”). See Footnote 12, Stockholders’ Equity.
2. Basis of Presentation and Summary of Significant Accounting Policies
Basis of Preparation and Principles of Consolidation
The accompanying Condensed Consolidated Balance Sheets as of June 30, 2021 and December 31, 2020, the Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income for the three and six months ended June 30, 2021 and 2020, the Condensed Consolidated Statements of Stockholders’ Equity for the three and six months ended June 30, 2021 and 2020, and the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2021 and 2020 reflect all adjustments that are of a normal recurring nature and that are considered necessary for a fair presentation of the results for the periods shown in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the applicable rules and regulations of the SEC for interim financial reporting periods. Accordingly, certain information and footnote disclosures have been condensed or omitted pursuant to SEC rules that would ordinarily be required under GAAP for complete financial statements. These unaudited interim Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements as of December 31, 2020 and 2019 and for the years then ended and the accompanying notes thereto included in the Company’s Prospectus.
8
DoubleVerify Holdings, Inc.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Amounts in thousands, except per share data, unless otherwise stated)
On March 29, 2021, the Company effected a
Use of Estimates and Judgments in the Preparation of the Condensed Consolidated Financial Statements
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenue and expense during the reporting periods. Significant estimates and judgments are inherent in the analysis and measurement of items include, but not limited to: revenue recognition criteria including the determination of principal versus agent revenue considerations, income taxes, the valuation and recoverability of goodwill and intangible assets, the assessment of potential loss from contingencies, the allowance for doubtful accounts, and assumptions used in determining the fair value of stock-based compensation. Management bases its estimates and assumptions on historical experience and on various other factors that are believed to be reasonable under the circumstances. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be affected by changes in those estimates. These estimates are based on the information available as of the date of the Condensed Consolidated Financial Statements.
Recently Issued Accounting Pronouncements
The Company is an emerging growth company, as defined in the Jumpstart Our Business Startups Act (“JOBS Act”). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company has elected to use this extended transition period for complying with certain new or revised accounting standards.
Financial Instruments - Credit Losses
In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which is intended to provide more decision-useful information about expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. ASU 2016-13 revises the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in more timely recognition of losses on financial instruments, including, but not limited to accounts receivable. This guidance is effective for annual reporting periods beginning after December 15, 2022 for non-public entities, including interim periods within that reporting period. Early adoption is permitted and the update allows for a modified retrospective method of adoption. The Company is currently in process of evaluating the impact of this standard on the Company’s Condensed Consolidated Financial Statements.
Cloud Computing
In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract (“ASU 2018-15”). This update was issued to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The amendments in ASU 2018-15 are effective for annual periods beginning after December 15, 2020 for non-public entities, and interim periods within annual periods beginning after December 15, 2021. The update allows for a retrospective or prospective method of adoption. The Company is currently in process of evaluating the impact of this standard on the Company’s Condensed Consolidated Financial Statements.
9
DoubleVerify Holdings, Inc.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Amounts in thousands, except per share data, unless otherwise stated)
Leases
In February 2016, the FASB issued ASU No. 2016-02, Leases Topic 842 (“ASU 2016-02”). The guidance in ASU 2016-02 supersedes the lease recognition requirements in ASC 840, Leases. ASU 2016-02 requires an entity to recognize assets and liabilities arising from a lease for both financing and operating leases, along with additional qualitative and quantitative disclosures. In July 2018, FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases, ("ASU No. 2018-10") to further clarify, correct and consolidate various areas previously discussed in ASU 2016-02. FASB also issued ASU No. 2018-11, Leases: Targeted Improvements ("ASU 2018-11") to provide entities another option for transition and lessors with a practical expedient. The transition option allows entities to not apply ASU No. 2016-02 in comparative periods in the financial statements in the year of adoption. The amendments in ASU No. 2016-02, ASU No. 2018-10 and ASU No. 2018-11 are effective for fiscal years beginning after December 15, 2021 for non-public entities and interim periods within fiscal years beginning after December 15, 2022, with early adoption permitted. The Company is currently in process of evaluating the impact of this standard on the Company’s Condensed Consolidated Financial Statements.
Simplifying the Accounting for Income Taxes
In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (Topic 740) (“ASU 2019-12”). ASU 2019-12 issued guidance on the accounting for income taxes that, among other provisions, eliminates certain exceptions to existing guidance related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. This guidance also requires an entity to reflect the effect of an enacted change in tax laws or rates in its effective income tax rate in the first interim period that includes the enactment date of the new legislation, aligning the timing of recognition of the effects from enacted tax law changes on the effective income tax rate with the effects on deferred income tax assets and liabilities. Under existing guidance, an entity recognizes the effects of the enacted tax law change on the effective income tax rate in the period that includes the effective date of the tax law. For non-public entities, the amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption is permitted. Certain amendments included in the update allows for a retrospective, modified retrospective, or prospective methods of adoption. The adoption of this guidance is not expected to have a material impact on the Company’s Condensed Consolidated Financial Statements.
3. Revenue
The following table disaggregates revenue between advertiser customers, where revenue is generated based on number of ads measured for Direct or measured and purchased for Programmatic, and supply-side customers, where revenue is generated based on contracts with minimum guarantees or contracts that contain overages after minimum guarantees are achieved.
Disaggregated revenue by customer type is as follows:
Three Months Ended |
| Six Months Ended | ||||||||||
June 30, | June 30, | |||||||||||
(in thousands) |
| 2021 |
| 2020 |
| 2021 |
| 2020 | ||||
Advertiser - direct | $ | | $ | | $ | | $ | | ||||
Advertiser - programmatic |
| |
| |
| |
| | ||||
Supply-side customer |
| |
| |
| |
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Total revenue | $ | | $ | | $ | | $ | |
Contract assets relate to the Company’s conditional right to consideration for completed performance under the contract (e.g., unbilled receivables). Trade receivables, net of allowance for doubtful accounts, include unbilled receivable balances of $
10
DoubleVerify Holdings, Inc.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Amounts in thousands, except per share data, unless otherwise stated)
4. Business Combinations
On February 15, 2019, the Company acquired all of the outstanding stock of Zentrick NV (“Zentrick”). Zentrick, headquartered in Ghent, Belgium is a digital video technology company that provides middleware solutions that increase the performance of online video advertising for brand advertisers, advertising platforms and publishers. This acquisition integrates technology into the Company’s suite of products related to advertising viewability specifically on video formats, a growing segment of the advertising market and critical for the delivery of verification services to social platforms and CTV. The aggregate purchase price consists of 1) $
Under the terms of the deferred payment, a portion of the technical milestones and revenue targets have been accounted at fair value as contingent consideration in the business combination with the remaining portion being accounted for as compensation expense under ASC 710, Compensation - General.
As of June 30, 2021, the technical milestone and revenue target components of the contingent consideration had a fair value of $
As of June 30, 2021, the technical milestone and revenue target components treated as compensation cost total $
5. Goodwill and Intangible Assets
There were
The following table summarizes the Company’s intangible assets and related accumulated amortization:
(in thousands) | June 30, 2021 |
| December 31, 2020 | |||||||||||||||
Gross Carrying | Accumulated | Net Carrying | Gross Carrying | Accumulated | Net Carrying | |||||||||||||
| Amount |
| Amortization |
| Amount |
| Amount |
| Amortization |
| Amount | |||||||
Trademarks and brands | | ( | | | ( | | ||||||||||||
Customer relationships |
| |
| ( |
| |
| |
| ( |
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Developed technology |
| |
| ( |
| |
| |
| ( |
| | ||||||
Total intangible assets | $ | | $ | ( | $ | | $ | | $ | ( | $ | |
Amortization expense for three months ended June 30, 2021 and June 30, 2020 is $
11
DoubleVerify Holdings, Inc.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Amounts in thousands, except per share data, unless otherwise stated)
Estimated future expected amortization expense of intangible assets as of June 30, 2021, is as follows:
(in thousands) |
|
| |
2021 | $ | | |
2022 | | ||
2023 | | ||
2024 | | ||
2025 | | ||
2026 | | ||
Thereafter |
| | |
Total | $ | |
The weighted-average remaining useful life by major asset classes as of June 30, 2021 is as follows:
| (In years) | |
Trademarks and brands |
| |
Customer relationships |
| |
Developed technology |
|
There were
6. Property, Plant and Equipment
Property, plant and equipment, including equipment under capital lease obligations and capitalized software development costs, consists of the following:
As of | ||||||
(in thousands) | June 30, 2021 | December 31, 2020 | ||||
Computers and peripheral equipment |
| $ | |
| $ | |
Office furniture and equipment |
| |
| | ||
Leasehold improvements |
| |
| | ||
Capitalized software development costs |
| |
| | ||
Less accumulated depreciation and amortization |
| ( |
| ( | ||
Total property, plant and equipment, net | $ | | $ | |
For the three months ended June 30, 2021 and 2020, total depreciation expense was $
Property and equipment financed through capital lease obligations, consisting of computer equipment, totaled $
12
DoubleVerify Holdings, Inc.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Amounts in thousands, except per share data, unless otherwise stated)
7. Fair Value Measurement
The following tables present the Company’s financial instruments that are measured at fair value on a recurring basis:
As of June 30, 2021 | ||||||||||||
Quoted Market | ||||||||||||
Prices in Active | Significant | |||||||||||
(in thousands) | Markets for | Significant Other | Unobservable | |||||||||
Identical Assets | Observable Inputs | Inputs | Total Fair Value | |||||||||
(Level 1) | (Level 2) | (Level 3) | Measurements | |||||||||
Assets: |
|
|
|
|
|
|
|
| ||||
Cash equivalents: | $ | | — | — | | |||||||
Liabilities: | ||||||||||||
Contingent consideration current |
| — | — | |
| | ||||||
Contingent consideration non-current |
| — | — | — |
| — | ||||||
Total contingent consideration | $ | — | $ | — | $ | | $ | |
As of December 31, 2020 | ||||||||||||
Quoted Market |
| |||||||||||
Prices in Active | Significant | |||||||||||
(in thousands) | Markets for | Significant Other | Unobservable | |||||||||
| Identical Assets |
| Observable Inputs | Inputs | Tota1 Fair Value | |||||||
(Level 1) | (Level 2) |
| (Level 3) | Measurements | ||||||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Cash equivalents: |
| $ | |
|