DoubleVerify (DV) 10-Q6 Nov 242024 Q3 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2024	Oct. 25, 2024
Document and Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Document Transition Report	false
Entity File Number	001-40349
Entity Registrant Name	DoubleVerify Holdings, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	82-2714562
Entity Address, Address Line One	462 Broadway
Entity Address, City or Town	New York
Entity Address State Or Province	NY
Entity Address, Postal Zip Code	10013
City Area Code	212
Local Phone Number	631-2111
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	DV
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		169,165,009
Entity Central Index Key	0001819928
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current assets
Cash and cash equivalents	$ 311,910	$ 310,131
Short-term investments	50,686
Trade receivables, net of allowances for doubtful accounts of $9,983 and $9,442 as of September 30, 2024 and December 31, 2023, respectively	193,303	206,941
Prepaid expenses and other current assets	23,609	15,930
Total current assets	579,508	533,002
Property, plant and equipment, net	67,421	58,020
Operating lease right-of-use assets, net	70,432	60,470
Goodwill	437,646	436,008
Intangible assets, net	119,654	140,883
Deferred tax assets	31,732	13,077
Other non-current assets	5,960	1,571
Total assets	1,312,353	1,243,031
Current liabilities
Trade payables	13,376	12,932
Accrued expenses	46,541	44,264
Operating lease liabilities, current	10,761	9,029
Income tax liabilities	696	5,833
Current portion of finance lease obligations	2,528	2,934
Other current liabilities	14,295	8,863
Total current liabilities	88,197	83,855
Operating lease liabilities, non-current	79,571	71,563
Finance lease obligations	1,331	2,865
Deferred tax liabilities	9,635	8,119
Other non-current liabilities	3,039	2,690
Total liabilities	181,773	169,092
Commitments and contingencies (Note 15)
Stockholders' equity
Common stock, $0.001 par value, 1,000,000 shares authorized, 173,288 shares issued and 170,631 outstanding as of September 30, 2024; 1,000,000 shares authorized, 171,168 shares issued and 171,146 outstanding as of December 31, 2023	173	171
Additional paid-in capital	949,456	878,331
Treasury stock, at cost, 2,657 shares and 22 shares as of September 30, 2024 and December 31, 2023, respectively	(50,700)	(743)
Retained earnings	231,814	198,983
Accumulated other comprehensive loss, net of income taxes	(163)	(2,803)
Total stockholders' equity	1,130,580	1,073,939
Total liabilities and stockholders' equity	$ 1,312,353	$ 1,243,031

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
Trade receivables, net of allowances	$ 9,983	$ 9,442
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	1,000,000	1,000,000
Common stock, shares issued	173,288	171,168
Common stock, shares outstanding	170,631	171,146
Treasury stock, shares	2,657	22

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED)
Revenue	$ 169,556	$ 143,974	$ 466,228	$ 400,312
Cost of revenue (exclusive of depreciation and amortization shown separately below)	29,479	26,466	82,199	76,609
Product development	39,306	32,315	115,506	92,811
Sales, marketing and customer support	40,525	32,971	123,260	90,220
General and administrative	23,039	23,280	68,180	63,223
Depreciation and amortization	11,483	10,706	33,415	29,365
Income from operations	25,724	18,236	43,668	48,084
Interest expense	353	288	818	791
Other income, net	(4,225)	(1,633)	(8,561)	(6,843)
Income before income taxes	29,596	19,581	51,411	54,136
Income tax expense	11,395	6,234	18,580	15,775
Net income	$ 18,201	$ 13,347	$ 32,831	$ 38,361
Earnings per share:
Basic	$ 0.11	$ 0.08	$ 0.19	$ 0.23
Diluted	$ 0.10	$ 0.08	$ 0.19	$ 0.22
Weighted-average common stock outstanding:
Basic	170,254	168,606	171,060	166,937
Diluted	173,911	173,980	175,868	172,812
Comprehensive income:
Net income	$ 18,201	$ 13,347	$ 32,831	$ 38,361
Other comprehensive income (loss):
Foreign currency cumulative translation adjustment	9,079	(6,417)	2,640	(5,601)
Total comprehensive income	$ 27,280	$ 6,930	$ 35,471	$ 32,760

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	Common Stock	Treasury Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive (Loss) Income Net of Income Taxes	Total
Balance at Dec. 31, 2022	$ 165	$ (796)	$ 756,299	$ 127,517	$ (6,326)	$ 876,859
Balance (in shares) at Dec. 31, 2022	165,448	31
Foreign currency translation adjustment					1,193	1,193
Shares repurchased for settlement of employee tax withholdings		$ (787)				(787)
Shares repurchased for settlement of employee tax withholdings (in shares)		30
Stock-based compensation expense			11,992			11,992
Common stock issued upon exercise of stock options	$ 1		1,765			1,766
Common stock issued upon exercise of stock options (in shares)	527
Common stock issued upon vesting of restricted stock units (in shares)	182
Treasury stock reissued upon settlement of equity awards		$ 914	(914)
Treasury stock reissued upon settlement of equity awards (in shares)		(35)
Net income				12,175		12,175
Balance at Mar. 31, 2023	$ 166	$ (669)	769,142	139,692	(5,133)	903,198
Balance (in shares) at Mar. 31, 2023	166,157	26
Balance at Dec. 31, 2022	$ 165	$ (796)	756,299	127,517	(6,326)	876,859
Balance (in shares) at Dec. 31, 2022	165,448	31
Foreign currency translation adjustment						(5,601)
Net income						38,361
Balance at Sep. 30, 2023	$ 170	$ (397)	857,561	165,878	(11,927)	1,011,285
Balance (in shares) at Sep. 30, 2023	169,918	13
Balance at Mar. 31, 2023	$ 166	$ (669)	769,142	139,692	(5,133)	903,198
Balance (in shares) at Mar. 31, 2023	166,157	26
Foreign currency translation adjustment					(377)	(377)
Shares repurchased for settlement of employee tax withholdings		$ (1,966)				(1,966)
Shares repurchased for settlement of employee tax withholdings (in shares)		57
Stock-based compensation expense			15,399			15,399
Common stock issued upon exercise of stock options	$ 1		3,990			3,991
Common stock issued upon exercise of stock options (in shares)	711
Common stock issued upon vesting of restricted stock units (in shares)	333
Treasury stock reissued upon settlement of equity awards		$ 2,107	(2,107)
Treasury stock reissued upon settlement of equity awards (in shares)		(67)
Common stock issued under employee purchase plan			1,138			1,138
Common stock issued under employee purchase plan (in shares)	49
Net income				12,839		12,839
Balance at Jun. 30, 2023	$ 167	$ (528)	787,562	152,531	(5,510)	934,222
Balance (in shares) at Jun. 30, 2023	167,250	16
Foreign currency translation adjustment					(6,417)	(6,417)
Shares repurchased for settlement of employee tax withholdings		$ (945)				(945)
Shares repurchased for settlement of employee tax withholdings (in shares)		28
Issuance of common stock as consideration for acquisition	$ 2		52,935			52,937
Issuance of common stock as consideration for acquisition (in shares)	1,642
Stock-based compensation expense			16,088			16,088
Common stock issued upon exercise of stock options	$ 1		2,052			2,053
Common stock issued upon exercise of stock options (in shares)	653
Common stock issued upon vesting of restricted stock units (in shares)	373
Treasury stock reissued upon settlement of equity awards		$ 1,076	(1,076)
Treasury stock reissued upon settlement of equity awards (in shares)		(31)
Net income				13,347		13,347
Balance at Sep. 30, 2023	$ 170	$ (397)	857,561	165,878	(11,927)	1,011,285
Balance (in shares) at Sep. 30, 2023	169,918	13
Balance at Dec. 31, 2023	$ 171	$ (743)	878,331	198,983	(2,803)	1,073,939
Balance (in shares) at Dec. 31, 2023	171,168	22
Foreign currency translation adjustment					(4,625)	(4,625)
Shares repurchased for settlement of employee tax withholdings		$ (1,792)				(1,792)
Shares repurchased for settlement of employee tax withholdings (in shares)		48
Stock-based compensation expense			20,718			20,718
Common stock issued upon exercise of stock options			1,695			1,695
Common stock issued upon exercise of stock options (in shares)	153
Common stock issued upon vesting of restricted stock units	$ 1		(1)
Common stock issued upon vesting of restricted stock units (in shares)	435
Treasury stock reissued upon settlement of equity awards		$ 1,389	(1,389)
Treasury stock reissued upon settlement of equity awards (in shares)		(38)
Net income				7,156		7,156
Balance at Mar. 31, 2024	$ 172	$ (1,146)	899,354	206,139	(7,428)	1,097,091
Balance (in shares) at Mar. 31, 2024	171,756	32
Balance at Dec. 31, 2023	$ 171	$ (743)	878,331	198,983	(2,803)	1,073,939
Balance (in shares) at Dec. 31, 2023	171,168	22
Foreign currency translation adjustment						$ 2,640
Common stock issued upon exercise of stock options (in shares)						432
Net income						$ 32,831
Balance at Sep. 30, 2024	$ 173	$ (50,700)	949,456	231,814	(163)	1,130,580
Balance (in shares) at Sep. 30, 2024	173,288	2,657
Balance at Mar. 31, 2024	$ 172	$ (1,146)	899,354	206,139	(7,428)	1,097,091
Balance (in shares) at Mar. 31, 2024	171,756	32
Foreign currency translation adjustment					(1,814)	(1,814)
Shares repurchased for settlement of employee tax withholdings		$ (660)				(660)
Shares repurchased for settlement of employee tax withholdings (in shares)		30
Stock-based compensation expense			25,315			25,315
Common stock issued upon exercise of stock options			870			870
Common stock issued upon exercise of stock options (in shares)	126
Common stock issued upon vesting of restricted stock units	$ 1		(1)
Common stock issued upon vesting of restricted stock units (in shares)	628
Shares repurchased under the Repurchase Program		$ (25,027)				(25,027)
Share repurchase program, shares repurchased		1,369
Treasury stock reissued upon settlement of equity awards		$ 1,390	(1,390)
Treasury stock reissued upon settlement of equity awards (in shares)		(41)
Common stock issued under employee purchase plan			1,914			1,914
Common stock issued under employee purchase plan (in shares)	124
Net income				7,474		7,474
Balance at Jun. 30, 2024	$ 173	$ (25,443)	926,062	213,613	(9,242)	1,105,163
Balance (in shares) at Jun. 30, 2024	172,634	1,390
Foreign currency translation adjustment					9,079	9,079
Shares repurchased for settlement of employee tax withholdings		$ (636)				(636)
Shares repurchased for settlement of employee tax withholdings (in shares)		34
Stock-based compensation expense			23,474			23,474
Common stock issued upon exercise of stock options			324			324
Common stock issued upon exercise of stock options (in shares)	53
Common stock issued upon vesting of restricted stock units (in shares)	601
Shares repurchased under the Repurchase Program		$ (25,025)				(25,025)
Share repurchase program, shares repurchased		1,254
Treasury stock reissued upon settlement of equity awards		$ 404	(404)
Treasury stock reissued upon settlement of equity awards (in shares)		(21)
Net income				18,201		18,201
Balance at Sep. 30, 2024	$ 173	$ (50,700)	$ 949,456	$ 231,814	$ (163)	$ 1,130,580
Balance (in shares) at Sep. 30, 2024	173,288	2,657

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Operating activities:
Net income	$ 32,831	$ 38,361
Adjustments to reconcile net income to net cash provided by operating activities
Bad debt expense	3,546	6,901
Depreciation and amortization expense	33,415	29,365
Amortization of debt issuance costs	334	221
Non-cash lease expense	5,329	4,899
Deferred taxes	(17,253)	(19,721)
Stock-based compensation expense	67,906	42,771
Interest (income) expense, net	(854)	176
Loss on disposal of fixed assets		5
Other	1,360	874
Changes in operating assets and liabilities, net of effects of business combinations
Trade receivables	10,333	(25,787)
Prepaid expenses and other assets	(12,592)	(9,370)
Trade payables	617	2,475
Accrued expenses and other liabilities	(2,692)	(3,484)
Net cash provided by operating activities	122,280	67,686
Investing activities:
Purchase of property, plant and equipment	(19,792)	(12,309)
Acquisition of businesses, net of cash acquired		(67,240)
Purchase of short-term investments	(81,937)
Proceeds from maturity of short-term investments	32,210
Net cash used in investing activities	(69,519)	(79,549)
Financing activities:
Proceeds from revolving credit facility		50,000
Payments to revolving credit facility		(50,000)
Proceeds from common stock issued upon exercise of stock options	2,889	7,810
Proceeds from common stock issued under employee purchase plan	1,914	1,138
Finance lease payments	(1,940)	(1,605)
Shares repurchased under the Repurchase Program	(50,052)
Shares repurchased for settlement of employee tax withholdings	(3,088)	(3,698)
Net cash (used in) provided by financing activities	(50,277)	3,645
Effect of exchange rate changes on cash and cash equivalents and restricted cash	150	(389)
Net increase (decrease) in cash, cash equivalents, and restricted cash	2,634	(8,607)
Cash, cash equivalents, and restricted cash - Beginning of period	310,257	267,938
Cash, cash equivalents, and restricted cash - End of period	312,891	259,331
Supplemental cash flow information:
Cash paid for taxes	36,141	52,738
Cash paid for interest	430	427
Non-cash investing and financing activities:
Right-of-use assets obtained in exchange for new operating lease liabilities, net of impairments and tenant improvement allowances	14,553	2,017
Acquisition of equipment under finance lease		5,479
Capital assets financed by accounts payable and accrued expenses	82
Stock-based compensation included in capitalized software development costs	$ 1,585	708
Common stock issued in connection with acquisition		52,937
Liabilities for contingent consideration		$ 1,193

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Cash and cash equivalents	$ 311,910	$ 259,212
Restricted cash - current (included in Prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets)	$ 128	$ 119
Restricted Cash and Cash Equivalents, Current, Statement of Financial Position [Extensible Enumeration]	Prepaid Expense and Other Assets, Current	Prepaid Expense and Other Assets, Current
Restricted cash - non-current (included in Other non-current assets on the Condensed Consolidated Balance Sheets)	$ 853
Restricted Cash and Cash Equivalents, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other Assets, Noncurrent	Other Assets, Noncurrent
Total cash and cash equivalents and restricted cash	$ 312,891	$ 259,331

Description of Business

Description of Business	9 Months Ended
Description of Business	Sep. 30, 2024
Description of Business
Description of Business	1. Description of Business DoubleVerify Holdings, Inc. (the “Company”) is one of the industry’s leading media effectiveness platforms that leverages artificial intelligence (“AI”) to drive superior outcomes for global brands. By creating more effective, transparent ad transactions, we make the digital advertising ecosystem stronger, safer and more secure, thereby preserving the fair value exchange between buyers and sellers of digital media. The Company’s solutions provide advertisers unbiased data analytics that enable advertisers to increase the effectiveness, quality and return on their digital advertising investments. The DV Authentic Ad is our proprietary metric of digital media quality, which measures whether a digital ad was delivered in a brand suitable environment, fully viewable, by a real person and in the intended geography. The Company’s software interface, DV Pinnacle, delivers these metrics to our customers in real time, allowing them to access critical performance data on their digital transactions. The Company’s software solutions are integrated across the entire digital advertising ecosystem, including programmatic platforms, 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 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 100% of the outstanding equity instruments of DoubleVerify Inc., (the “Acquisition”) resulting in a change of control at the parent level. The merger resulted in the application of acquisition accounting under the provisions of Financial Accounting Standards Board (“FASB”) Topic Accounting Standards Codification (“ASC”) 805 , The Company is headquartered in New York, New York and has wholly-owned subsidiaries in numerous jurisdictions, including Israel, the United Kingdom, the United Arab Emirates, Germany, Singapore, Australia, Canada, Brazil, Belgium, Mexico, France, Japan, Spain, Finland, Italy and India, and operates in one reportable segment.

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2024
Basis of Presentation and Summary of Significant Accounting Policies
Basis of Presentation and Summary of Significant Accounting Policies	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 September 30, 2024 and December 31, 2023, the Condensed Consolidated Statements of Operations and Comprehensive Income for the three and nine months ended September 30, 2024 and 2023, the Condensed Consolidated Statements of Stockholders’ Equity for the three and nine months ended September 30, 2024 and 2023, and the Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023 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 Company’s audited consolidated financial statements and related notes included in its Annual Report on Form 10-K for the year ended December 31, 2023. 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 including, 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, assumptions in valuing acquired assets and liabilities assumed in business combinations, 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 . Restricted Cash Restricted cash represents amounts pledged as collateral for certain agreements with third parties. Upon satisfying the terms of the relevant agreements, the funds are expected to be released and available for use by the Company. Restricted cash is recorded in the Condensed Consolidated Balance Sheets in Prepaid expenses and other current assets or Other non-current assets, depending on if such funds will be released and available for use by the Company within the next twelve months. Short-term Investments Debt Securities The Company’s accounting for debt securities varies depending on the legal form of the security, our intended holding period for the security, and the nature of the transaction. Investments in marketable debt securities include U.S. treasury bills. The Company considers all of its marketable debt securities as available for use in current operations and, therefore, classifies these securities as Short-term investments on the Condensed Consolidated Balance Sheets. Marketable debt securities are classified as available-for-sale and are initially recorded at fair value. Unrealized gains and losses related to available-for-sale debt securities are recorded as a separate component of Other comprehensive income (loss), net of tax on the Condensed Consolidated Statements of Operations and Comprehensive Income until realized. Interest on marketable debt securities classified as available-for-sale is included as a component of Other income, net on the Condensed Consolidated Statements of Operations and Comprehensive Income. Refer to Note 8 for further information. The Company accounts for credit losses on available-for-sale debt securities in accordance with ASC 326, “Financial Instruments - Credit Losses” (“ASC 326”). The Company uses ASC 326 to assess the investment portfolio for impairment at the individual security level and evaluates all securities in an unrealized loss position to determine if the impairment is credit related (realized loss recorded in earnings) or non-credit related (unrealized loss). Debt Issuance Costs The New Revolving Credit Facility (as defined in Note 9) includes debt issuance costs that meet the definition of an asset and are recorded in the Condensed Consolidated Balances Sheets in Other non-current assets. Debt issuance costs for the New Revolving Credit Facility are amortized to interest expense over the contractual term of the underlying debt instrument on a straight-line basis through the maturity date of the New Revolving Credit Facility on August 12, 2029. Recently Issued Accounting Pronouncements Segment Reporting – Improvements to Reportable Segment Disclosures In November 2023, the FASB issued Accounting Standards Update (“ASU”) No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures”, which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. The updated standard is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted and the update requires retrospective application to all prior periods presented. The Company is currently in the process of evaluating the impact of this standard on the Company’s Condensed Consolidated Financial Statements. Income Taxes – Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”), which expands annual disclosure requirements related to the rate reconciliation and income taxes paid disclosures. ASU 2023-09 requires consistent categories and greater disaggregation of information in the rate reconciliation and income taxes paid to be disaggregated by jurisdiction. The updated standard is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted and the update may be applied on a prospective basis with retrospective application permitted. The Company is currently in the process of evaluating the impact of this standard on the Company’s Condensed Consolidated Financial Statements.

Revenue

Revenue	9 Months Ended
Revenue	Sep. 30, 2024
Revenue
Revenue	3. Revenue The following table disaggregates revenue between advertiser customers, where revenue is generated based on the number of ads measured and purchased for Activation or measured for Measurement, and Supply-side, 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 was as follows: Three Months Ended Nine Months Ended September 30, September 30, ( in thousands) 2024 2023 2024 2023 Activation $ 96,791 $ 81,700 $ 263,584 $ 229,534 Measurement 58,468 51,263 162,560 137,637 Supply-side 14,297 11,011 40,084 33,141 Total revenue $ 169,556 $ 143,974 $ 466,228 $ 400,312 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 $59.3 million and $55.0 million as of September 30, 2024 and December 31, 2023, respectively. Remaining Performance Obligations As of September 30, 2024, the Company had $29.7 million of remaining performance obligations which are expected to be recognized over the next one

Business Combinations

Business Combinations	9 Months Ended
Business Combinations	Sep. 30, 2024
Business Combinations
Business Combinations	4. Business Combinations Scibids Technology SAS On August 14, 2023, the Company acquired all of the outstanding stock of Scibids Technology SAS (“Scibids”), a global leader in AI technology for digital campaign optimization. The acquisition combines DoubleVerify’s proprietary data with Scibids’ AI-powered optimization technology to provide advertiser customers with enhanced insights and control over their advertising performance. The total purchase price of $121.1 million, net of cash acquired, includes measurement period adjustments of $0.3 million recorded during the nine months ended September 30, 2024. The effect of these adjustments on the preliminary purchase price allocation was a decrease to the purchase consideration of $0.3 million and a corresponding decrease recorded to Goodwill As of September 30, 2024, the purchase price allocation for Scibids is final.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
Goodwill and Intangible Assets	Sep. 30, 2024
Goodwill and Intangible Assets
Goodwill and Intangible Assets	5. The following is a summary of changes to the goodwill carrying value from December 31, 2023 to September 30, 2024: (in thousands) Goodwill at December 31, 2023 $ 436,008 Measurement period adjustments (300) Foreign exchange impact 1,938 Goodwill at September 30, 2024 $ 437,646 The following table summarizes the Company’s intangible assets and related accumulated amortization: ( in thousands) September 30, 2024 December 31, 2023 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Amount Amortization Amount Amount Amortization Amount Trademarks and brands $ 11,735 $ (5,775) $ 5,960 $ 11,734 $ (5,140) $ 6,594 Customer relationships 161,474 (73,675) 87,799 161,173 (62,955) 98,218 Developed technology 93,356 (67,461) 25,895 93,013 (56,942) 36,071 Non-compete agreements 67 (67) — 66 (66) — Total intangible assets $ 266,632 $ (146,978) $ 119,654 $ 265,986 $ (125,103) $ 140,883 Amortization expense related to intangible assets for the three months ended September 30, 2024 and September 30, 2023 was $7.2 million and $7.4 million, respectively. Amortization expense related to intangible assets amounted to $21.6 million and $20.0 million for the nine months ended September 30, 2024 and September 30, 2023, respectively. Estimated future expected amortization expense of intangible assets as of September 30, 2024 is as follows: (in thousands) 2024 (for remaining three months) $ 7,186 2025 26,983 2026 22,230 2027 18,252 2028 14,999 2029 12,648 Thereafter 17,356 Total $ 119,654 The weighted-average remaining useful life by major asset classes as of September 30, 2024 is as follows: (In years) Trademarks and brands 8 Customer relationships 6 Developed technology 2 There were no impairments of Goodwill or Intangible assets identified during the nine months ended September 30, 2024 and September 30, 2023.

Property, Plant and Equipment

Property, Plant and Equipment	9 Months Ended
Property, Plant and Equipment	Sep. 30, 2024
Property, Plant and Equipment
Property, Plant and Equipment, net	6. Property, plant and equipment, including equipment under finance lease obligations and capitalized software development costs, consisted of the following: As of (in thousands) September 30, 2024 December 31, 2023 Computers and peripheral equipment $ 26,845 $ 25,013 Office furniture and equipment 4,744 3,170 Leasehold improvements 35,245 32,595 Capitalized software development costs 50,066 35,039 Less accumulated depreciation and amortization (49,479) (37,797) Total property, plant and equipment, net $ 67,421 $ 58,020 For the three months ended September 30, 2024 and September 30, 2023, total depreciation expense was $4.3 million and $3.3 million, respectively. For the nine months ended September 30, 2024 and September 30, 2023, total depreciation expense was $11.8 million and $9.4 million, respectively. Property and equipment under finance lease obligations, consisting of computer equipment, totaled $17.8 million as of September 30, 2024 and December 31, 2023, respectively. As of September 30, 2024 and December 31, 2023, accumulated depreciation related to property and equipment under finance lease obligations totaled $14.5 million and $12.9 million, respectively. Refer to Note 7 for further information. There were no impairments of Property, plant and equipment identified during the nine months ended September 30, 2024 and September 30, 2023.

Leases

Leases	9 Months Ended
Leases	Sep. 30, 2024
Leases
Leases	7. Leases The following table presents lease cost and cash paid for amounts included in the measurement of lease liabilities for finance and operating leases for the three and nine months ended September 30, 2024 and 2023, respectively. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2024 2023 2024 2023 Lease cost: Operating lease cost (1) $ 2,921 $ 2,614 $ 8,248 $ 7,783 Finance lease cost: Depreciation of finance lease assets (2) 493 620 1,605 1,151 Interest on finance lease liabilities (3) 49 83 170 149 Short-term lease cost (1) 294 219 938 708 Sublease income (1) — (266) — (800) Total lease cost $ 3,757 $ 3,270 $ 10,961 $ 8,991 Other information: Cash paid for amounts included in the measurement of lease liabilities Operating cash outflows from operating leases $ 2,870 $ 1,921 $ 7,908 $ 4,773 Operating cash outflows from finance leases $ 37 $ 38 $ 192 $ 78 Financing cash outflows from finance leases $ 378 $ 577 $ 1,940 $ 1,605 (1) Included in Cost of revenue, Sales, marketing and customer support, Product development and General and administrative expenses in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income. (2) Included in Depreciation and amortization in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income. (3) Included in Interest expense in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income. The following table presents weighted-average remaining lease terms and weighted-average discount rates for finance and operating leases as of September 30, 2024 and 2023, respectively: September 30, 2024 2023 Weighted-average remaining lease term - operating leases (in years) 11.9 13.7 Weighted-average remaining lease term - finance leases (in years) 1.6 2.4 Weighted-average discount rate - operating leases 4.8% 4.6% Weighted-average discount rate - finance leases 5.5% 5.3% Maturities of lease liabilities as of September 30, 2024 were as follows: September 30, 2024 (in thousands) Operating Leases Finance Leases 2024 (for remaining three months) $ 2,775 $ 1,083 2025 11,689 2,150 2026 10,786 819 2027 10,212 — 2028 9,041 — 2029 8,837 — Thereafter 67,160 — Total lease payments 120,500 4,052 Less amount representing interest (30,168) (193) Present value of total lease payments $ 90,332 $ 3,859 As of September 30, 2024, the Company has entered into additional international office space leases that have not yet commenced with contractual commitments of $1.7 million. These operating leases will commence in fiscal year 2025 with lease terms of two There were no impairments of Operating lease right-of-use assets identified during the nine months ended September 30, 2024 and September 30, 2023.

Fair Value Measurement

Fair Value Measurement	9 Months Ended
Fair Value Measurement	Sep. 30, 2024
Fair Value Measurement
Fair Value Measurement	8. Fair Value Measurement The following tables present the Company’s financial instruments that are measured at fair value on a recurring basis: As of September 30, 2024 Quoted Market Prices in Active Significant Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs Total Fair Value ( in thousands) (Level 1) (Level 2) (Level 3) Measurements Assets: Cash equivalents $ 33,860 $ — $ — $ 33,860 Short-term investments $ 50,686 $ — $ — $ 50,686 As of December 31, 2023 Quoted Market Prices in Active Significant Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs Tota1 Fair Value (in thousands) (Level 1) (Level 2) (Level 3) Measurements Assets: Cash equivalents $ 61,463 $ — $ — $ 61,463 As of September 30, 2024, Cash equivalents consisted of treasury bills with original maturities at the date of purchase of three months or less and money market funds of $33.9 million. As of December 31, 2023, Cash equivalents consisted of treasury bills with original maturities at the date of purchase of three months or less and money market funds of $61.5 million. Short-term investments consisted of treasury bills of $50.7 million as of September 30, 2024. As of September 30, 2024, all of the Company’s Short-term investments are contractually due within one year. As of September 30, 2024 and December 31, 2023, the amortized cost of the Company’s treasury bills approximated fair value. The Company did not record any unrealized gains, unrealized losses, or credit losses for the three and nine months ended September 30, 2024.

Long-term Debt

Long-term Debt	9 Months Ended
Long-term Debt	Sep. 30, 2024
Long-term Debt.
Long-term Debt	9. Long-term Debt On August 12, 2024, DoubleVerify Inc., as borrower (the “Borrower”) and Midco, as holdings (“Holdings”), entered into a credit agreement with the banks and other financial institutions party thereto, as lenders and letter of credit issuers, and JPMorgan Chase Bank, N.A., as administrative agent, letter of credit issuer and swing lender (the “Credit Agreement”), to provide for a new senior secured revolving credit facility (the “New Revolving Credit Facility”) in an aggregate principal amount of $200.0 million (with a letter of credit facility of up to a $20.0 million sublimit), which matures on August 12, 2029 (the “Revolving Termination Date”). Subject to certain terms and conditions, the Borrower is entitled to add one or more term loan facilities or revolving credit facilities and / or increase the amount of the revolving credit commitments under the New Revolving Credit Facility. The New Revolving Credit Facility replaces in full the Company’s prior senior secured revolving credit facility provided under the Second Amended and Restated Credit Agreement, dated as of October 1, 2020 (the “Prior Revolving Credit Facility”) as amended by the First Amendment, dated as March 29, 2023, and as further amended, restated, amended and restated, supplemented or otherwise modified prior to the date hereof). The loans under the New Revolving Credit Facility, at the Borrower's option, bear interest at either a Secured Overnight Financing Rate (“SOFR”) or an Alternate Base Rate (“ABR”). In the case of SOFR loans, for each day during each interest period with respect thereto, a rate per annum equal to Term SOFR (as defined in the Credit Agreement) determined for such day plus an applicable margin ranging from 2.00% to 2.75% per annum (depending on the total net leverage ratio of Holdings and its subsidiaries (the “Credit Group”)). In the case of ABR loans, a rate per annum equal to ABR (as defined in the Credit Agreement) plus an applicable margin ranging from 1.00% to 1.75% per annum (depending on the total net leverage ratio of the Credit Group). The New Revolving Credit Facility is payable in monthly or quarterly installments for interest, with the principal balance due in full at the Revolving Termination Date, subject to customary events of default as defined by the Credit Agreement. The New Revolving Credit Facility bears a commitment fee ranging from 0.25% to 0.35% per annum (depending on the total net leverage ratio of the Credit Group), payable quarterly in arrears commencing on April 15, 2025 and on the fifteenth day following the last day of each calendar quarter occurring thereafter prior to the Revolving Termination Date, and on the Revolving Termination Date, based on the utilization of the New Revolving Credit Facility, and customary letter of credit fees. The New Revolving Credit Facility contains customary representations and warranties and customary affirmative and negative covenants. The negative covenants include restrictions on, among other things: paying dividends or purchasing, redeeming or retiring capital stock; granting liens; incurring or guaranteeing additional debt; making investments and acquisitions; entering into transactions with affiliates; entering into any merger, consolidation or amalgamation or disposing of all or substantially all property or business; and disposing of property, including issuing capital stock. All obligations under the New Revolving Credit Facility are guaranteed by the Company pursuant to the guarantee agreement (the “Guarantee Agreement”) made by the Company in favor of JPMorgan Chase Bank, N.A., as administrative agent under the Credit Agreement. The obligations are also guaranteed by Midco, Ad-Juster, Inc. and Outrigger Media, Inc., and secured by a first priority perfected security interest in substantially all of the assets (subject to customary exceptions) of Midco, the Borrower, Ad-Juster, Inc. and Outrigger Media, Inc. (but not the Company). The Credit Agreement requires the Credit Group to remain in compliance with a maximum total net leverage ratio of 4.50x as at the last day of each fiscal quarter. Such requirement will commence with the fiscal quarter ending March 31, 2025. As of September 30, 2024 and December 31, 2023, there was no outstanding debt under the New Revolving Credit Facility or the Prior Revolving Credit Facility, respectively.

Income Tax

Income Tax	9 Months Ended
Income Tax	Sep. 30, 2024
Income Tax
Income Tax	10. Income Tax The Company’s quarterly income tax provision is calculated using an estimated annual effective income tax rate (“ETR”) based on historical information and forward-looking estimates. The Company’s estimated annual ETR may fluctuate due to changes in forecasted annual pre-tax income, and changes to forecasted permanent book to tax differences (e.g., non-deductible expenses). The Company’s ETR for a particular reporting period may fluctuate as the result of changes to the valuation allowance for net deferred tax assets, the impact of anticipated tax settlements with federal, state, or foreign tax authorities, or the impact of tax law changes. The Company identifies items that are unusual and non-recurring in nature and treats these as discrete events. The tax effect of these discrete events is booked entirely in the quarter in which they occur. During the three and nine months ended September 30, 2024, the Company recorded an income tax provision of $11.4 million and $18.6 million, respectively, resulting in an effective tax rate of 38.5% and 36.1%, that includes the effects of various permanent book-to-tax adjustments, foreign tax rate differences, U.S. tax on foreign operations, and U.S. state/local taxes. During the three and nine months ended September 30, 2023, the Company recorded an income tax provision of $6.2 million and $15.8 million, respectively, resulting in an effective tax rate of 31.8% and 29.1%. A valuation allowance has been established against a small amount of foreign capital losses and certain U.S. tax loss carryforwards. All other net deferred tax assets have been determined to be more likely than not realizable. The Company regularly reviews its deferred tax assets for recoverability and would establish a valuation allowance if it believed that such assets may not be recovered, taking into consideration historical operating results, expectations of future earnings, changes in its operations, and the expected timing of the reversals of existing temporary differences. The Company accounts for uncertainty in income taxes utilizing ASC 740-10, “Income Taxes.” ASC 740-10 clarifies whether or not to recognize assets or liabilities for tax positions taken that may be challenged by a tax authority. It prescribes a recognition threshold and measurement attribute for financial statement disclosure of tax positions taken or expected to be taken. This interpretation also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, and disclosures. The application of ASC 740-10 requires judgment related to the uncertainty in income taxes and could impact the Company’s effective tax rate. The Company and its subsidiaries file income tax returns with the Internal Revenue Service (“IRS”) in various state and international jurisdictions. The Company’s Israeli subsidiary is under audit by the Israeli Tax Authority for the 2021 and later tax years. The Company closed its audit with the Commonwealth of Massachusetts for the 2019 and 2020 tax years that resulted in an immaterial adjustment of $0.1 million. The audit closed during the three months ended September 30, 2024. The adjustment will be posted in the subsequent quarter upon settlement. The Israeli examination may lead to ordinary course adjustments or proposed adjustments to the Company’s taxes. Aside from the aforementioned, the Company is not currently under audit in any other jurisdiction.

Earnings Per Share

Earnings Per Share	9 Months Ended
Earnings Per Share	Sep. 30, 2024
Earnings Per Share
Earnings Per Share	11. Earnings Per Share The following table reconciles the numerators and denominators used in computations of the basic and diluted EPS for the three and nine months ended September 30, 2024 and September 30, 2023: Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 Numerator: Net Income (basic and diluted) $ 18,201 $ 13,347 $ 32,831 $ 38,361 Denominator: Weighted-average common shares outstanding 170,254 168,606 171,060 166,937 Dilutive effect of share-based awards 3,657 5,374 4,808 5,875 Weighted-average dilutive shares outstanding 173,911 173,980 175,868 172,812 Basic earnings per share $ 0.11 $ 0.08 $ 0.19 $ 0.23 Diluted earnings per share $ 0.10 $ 0.08 $ 0.19 $ 0.22 Approximately 10.7 million and 4.3 million weighted average shares issuable under stock-based awards were not included in the diluted EPS calculation in the three and nine months ended September 30, 2024, respectively, because they were antidilutive. Approximately 7.7 million and 7.8 million weighted average shares issuable under stock-based awards were not included in the diluted EPS calculation in the three and nine months ended September 30, 2023, respectively, because they were also antidilutive.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
Stock-Based Compensation	Sep. 30, 2024
Stock-Based Compensation
Stock-Based Compensation	12. Stock-Based Compensation Employee Equity Incentive Plan On September 20, 2017, the Company established its 2017 Omnibus Equity Incentive Program (the “2017 Plan”) which provides for the granting of equity-based awards to certain employees, directors, independent contractors, consultants and agents. Under the 2017 Plan, the Company may grant non-qualified stock options, stock appreciation rights, restricted stock units, and other stock-based awards. On April 19, 2021, the Company established its 2021 Omnibus Equity Incentive Plan (“2021 Equity Plan”). The 2021 Equity Plan provides for the grant of stock options (including qualified incentive stock options and nonqualified stock options), stock appreciation rights, restricted stock, restricted stock units, dividend equivalents, and other stock or cash settled incentive awards. Stock Options Options become exercisable subject to vesting schedules up to four years from the date of the grant and subject to certain timing restrictions upon an employee’s separation of service and no later than 10 years after the grant date. A summary of stock option activity as of and for the nine months ended September 30, 2024 is as follows: Stock Option Weighted Average Remaining Number of Weighted Average Contractual Life Aggregate Options Exercise Price (Years) Intrinsic Value Outstanding as of December 31, 2023 9,992 $ 17.01 6.91 $ 197,598 Options granted — — Options exercised (432) 6.69 Options forfeited (69) 30.97 Outstanding as of September 30, 2024 9,491 $ 17.38 6.20 $ 47,666 Options expected to vest as of September 30, 2024 1,776 $ 26.91 7.91 $ — Options exercisable as of September 30, 2024 7,650 $ 15.09 5.79 $ 47,666 Stock options include grants to executives that contain both market-based and performance-based vesting conditions. There were no stock options granted that contain both market-based and performance-based vesting conditions during the nine months ended September 30, 2024. During the nine months ended September 30, 2024, 60 stock options were exercised and 1,313 market-based and performance-based stock options remain outstanding as of September 30, 2024. The total intrinsic value of options exercised during the nine months ended September 30, 2024 and September 30, 2023 was $9.3 million and $54.1 million, respectively. The Company’s board of directors (the “Board”) did not declare or pay dividends on any Company stock during the nine months ended September 30, 2024 and September 30, 2023. Restricted Stock Units (“RSUs”) RSUs are subject to vesting schedules up to four years from the date of the grant and subject to certain restrictions upon employee separation. A summary of RSUs activity as of and for the nine months ended September 30, 2024 is as follows: RSUs Number of Weighted Average Shares Grant Date Fair Value Outstanding as of December 31, 2023 4,720 $ 28.03 Granted 2,972 31.93 Vested (1,664) 28.98 Forfeited (228) 29.41 Outstanding as of September 30, 2024 5,800 $ 29.70 The total grant date fair value of RSUs that vested during the nine months ended September 30, 2024 was $48.2 million. Performance Stock Units (“PSUs”) PSUs are subject to vesting and performance periods of up to approximately three years from the date of the grant. A summary of PSUs activity as of and for the nine months ended September 30, 2024 is as follows: PSUs Weighted Average Grant Number of Date Fair Shares (1) Value Outstanding as of December 31, 2023 480 $ 41.31 Granted 186 41.28 Vested — — Forfeited — — Outstanding as of September 30, 2024 666 $ 41.30 (1) The fair market value of PSUs with market-based and service-based vesting conditions granted for the years presented has been estimated on the grant date using the Monte Carlo Simulation model with the following assumptions: 2024 Risk‑free interest rate (percentage) 3.9 - 4.1 Expected dividend yield (percentage) — Expected volatility (percentage) 46.7 Stock-based Compensation Expense Total stock-based compensation expense recorded in the Condensed Consolidated Statements of Operations and Comprehensive Income was as follows: Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2024 2023 2024 2023 Product development $ 8,899 $ 6,235 $ 26,006 $ 16,589 Sales, marketing and customer support 7,152 4,945 20,591 13,198 General and administrative 6,899 4,611 21,309 12,984 Total stock-based compensation $ 22,950 $ 15,791 $ 67,906 $ 42,771 As of September 30, 2024, unrecognized stock-based compensation expense was $182.4 million, which is expected to be recognized over a weighted-average period of 1.3 years. Employee Stock Purchase Plan (“ESPP”) In March 2021, the Board approved the Company’s 2021 ESPP. Purchases are accomplished through participation in discrete offering periods. The ESPP is available to U.S.-based employees and most of the Company’s non-U.S.-based employees. The current offering period began on June 1, 2024 and will end on November 30, 2024. The Company expects the program to continue consecutively for six-month offering periods for the foreseeable future. Under the ESPP, eligible employees are able to acquire shares of the Company’s common stock by accumulating funds through payroll deductions. The purchase price for shares of common stock purchased under the ESPP is 85% of the lesser of the fair market value of the common stock on (i) the first trading day of the applicable offering period and (ii) the last trading day of the applicable offering period. Employees are required to hold shares purchased for a minimum of six months following the purchase date. Stock-based compensation expense for the ESPP is recognized on a straight-line basis over the requisite service period of each award. Stock-based compensation expense related to the ESPP totaled $0.3 million and $0.8 million for the three and nine months ended September 30, 2024, respectively. Stock-based compensation expense related to the ESPP totaled $0.2 million and $0.6 million for the three and nine months ended September 30, 2023, respectively.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
Stockholders' Equity	Sep. 30, 2024
Stockholders' Equity
Stockholders' Equity	13. Stockholders’ Equity Repurchase Program On May 16, 2024, the Company announced that the Board authorized the repurchase of up to $150.0 million of the Company’s outstanding common stock (the “Repurchase Program”). Under the Repurchase Program, the Company may repurchase for cash from time to time shares of its common stock through open market purchases pursuant to Rule 10b-18 and/or Rule 10b5-1 plans, in compliance with applicable securities laws and other legal requirements. The Repurchase Program does not obligate the Company to repurchase any specific number of shares, has no time limit, and may be modified, suspended, or discontinued at any time at the Company’s discretion. During the three months ended September 30, 2024, the Company repurchased 1.3 million shares of its common stock for an aggregate repurchase amount of $25.0 million, which included immaterial amounts of broker commissions. During the nine months ended September 30, 2024, the Company repurchased 2.6 million shares of its common stock for an aggregate repurchase amount of $50.1 million, which included immaterial amounts of broker commissions. As of September 30, 2024, $100.0 million remained available and authorized for repurchase under the Repurchase Program. Activity under the Repurchase Program was recognized in the Condensed Consolidated Balance Sheets on a trade-date basis.

Supplemental Financial Statemen

Supplemental Financial Statement Information	9 Months Ended
Supplemental Financial Statement Information	Sep. 30, 2024
Supplemental Financial Statement Information
Supplemental Financial Statement Information	14. Supplemental Financial Statement Information Accrued Expenses Accrued expenses as of September 30, 2024 and December 31, 2023 were as follows: As of (in thousands) September 30, 2024 December 31, 2023 Vendor payments $ 6,303 $ 6,286 Employee commissions and bonuses 21,342 20,809 Payroll and other employee related expense 11,751 10,602 401k and pension expense 2,680 2,982 Other taxes 4,465 3,585 Total accrued expenses $ 46,541 $ 44,264 Other Income, Net The components of Other income, net recorded in the Condensed Consolidated Statements of Operations and Comprehensive Income were as follows: Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2024 2023 2024 2023 Interest income $ (3,232) $ (2,584) $ (9,822) $ (8,027) Foreign currency exchange (gain) loss (893) 955 1,323 1,184 Other miscellaneous income, net (100) (4) (62) — Other income, net $ (4,225) $ (1,633) $ (8,561) $ (6,843)

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2024
Commitments and Contingencies.
Commitments and Contingencies	15. Commitments and Contingencies Contingencies Litigation From time to time, the Company is subject to various legal proceedings and claims, either asserted or unasserted, that arise in the ordinary course of business. The Company records liabilities for contingencies including legal costs when it is probable that a liability has been incurred and when the amount can be reasonably estimated. Legal costs are expensed as incurred. Although the outcome of the various legal proceedings and claims cannot be predicted with certainty, management does not believe that any of these proceedings or other claims will have a material effect on the Company’s business, financial condition, results of operations or cash flows.

Segment Information

Segment Information	9 Months Ended
Segment Information	Sep. 30, 2024
Segment Information
Segment Information	16. Segment Information The Company has determined that it operates as one operating and reportable

Subsequent Events

Subsequent Events	9 Months Ended
Subsequent Events	Sep. 30, 2024
Subsequent Events
Subsequent Events	17. Subsequent Events In October 2024, the Company repurchased 1.5 million shares of its common stock for an aggregate repurchase amount of $25.0 million, which included immaterial amounts of broker commissions. As of November 6, 2024, $75.0 million remained available and authorized for repurchase under the Repurchase Program. On November 6, 2024, the Company announced that the Board authorized the repurchase of up to $200.0 million of the Company’s outstanding common stock (the “New Repurchase Program”), which amount is in addition to the initial Repurchase Program previously approved by the Board in May 2024. Under the New Repurchase Program, the Company may repurchase for cash from time to time shares of its common stock through open market purchases pursuant to Rule 10b-18 and/or Rule 10b5-1 plans, in compliance with applicable securities laws and other legal requirements. The New Repurchase Program does not obligate the Company to repurchase any specific number of shares, has no time limit, and may be modified, suspended, or discontinued at any time at the Company’s discretion. As of November 6, 2024, $200.0 million remained available and authorized for repurchase under the New Repurchase Program.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 18,201	$ 7,474	$ 7,156	$ 13,347	$ 12,839	$ 12,175	$ 32,831	$ 38,361

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 30, 2024 shares
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	Securities Trading Plans of Directors and Executive Officers During the three months ended September 30, 2024, the following directors and "officers" (as defined in Rule 16a-1(f) under the Exchange Act) of the Company adopted, modified or terminated “Rule 10b5-1 trading arrangements” (as defined in Item 408 of Regulation S-K). The trading arrangements are intended to satisfy the affirmative defense in Rule 10b5-1(c): Name Position Adoption Date Total Shares to be Sold Expiration Date Nicola T. Allais Chief Financial Officer August 9, 2024 160,000 May 15, 2025 Andrew E. Grimmig Chief Legal Officer September 2, 2024 250,000 June 13, 2025
Nicola T. Allais
Trading Arrangements, by Individual
Name	Nicola T. Allais
Title	Chief Financial Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	August 9, 2024
Expiration Date	May 15, 2025
Aggregate Available	160,000
Andrew E. Grimmig
Trading Arrangements, by Individual
Name	Andrew E. Grimmig
Title	Chief Legal Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	September 2, 2024
Expiration Date	June 13, 2025
Aggregate Available	250,000

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2024
Basis of Presentation and Summary of Significant Accounting Policies
Basis of Preparation and Principles of Consolidation	Basis of Preparation and Principles of Consolidation The accompanying Condensed Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023, the Condensed Consolidated Statements of Operations and Comprehensive Income for the three and nine months ended September 30, 2024 and 2023, the Condensed Consolidated Statements of Stockholders’ Equity for the three and nine months ended September 30, 2024 and 2023, and the Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023 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 Company’s audited consolidated financial statements and related notes included in its Annual Report on Form 10-K for the year ended December 31, 2023.
Use of Estimates and Judgments in the Preparation of the Condensed Consolidated Financial Statements	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 including, 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, assumptions in valuing acquired assets and liabilities assumed in business combinations, 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 .
Restricted Cash	Restricted Cash Restricted cash represents amounts pledged as collateral for certain agreements with third parties. Upon satisfying the terms of the relevant agreements, the funds are expected to be released and available for use by the Company. Restricted cash is recorded in the Condensed Consolidated Balance Sheets in Prepaid expenses and other current assets or Other non-current assets, depending on if such funds will be released and available for use by the Company within the next twelve months.
Short-term Investments	Short-term Investments Debt Securities The Company’s accounting for debt securities varies depending on the legal form of the security, our intended holding period for the security, and the nature of the transaction. Investments in marketable debt securities include U.S. treasury bills. The Company considers all of its marketable debt securities as available for use in current operations and, therefore, classifies these securities as Short-term investments on the Condensed Consolidated Balance Sheets. Marketable debt securities are classified as available-for-sale and are initially recorded at fair value. Unrealized gains and losses related to available-for-sale debt securities are recorded as a separate component of Other comprehensive income (loss), net of tax on the Condensed Consolidated Statements of Operations and Comprehensive Income until realized. Interest on marketable debt securities classified as available-for-sale is included as a component of Other income, net on the Condensed Consolidated Statements of Operations and Comprehensive Income. Refer to Note 8 for further information. The Company accounts for credit losses on available-for-sale debt securities in accordance with ASC 326, “Financial Instruments - Credit Losses” (“ASC 326”). The Company uses ASC 326 to assess the investment portfolio for impairment at the individual security level and evaluates all securities in an unrealized loss position to determine if the impairment is credit related (realized loss recorded in earnings) or non-credit related (unrealized loss).
Debt Issuance Costs	Debt Issuance Costs The New Revolving Credit Facility (as defined in Note 9) includes debt issuance costs that meet the definition of an asset and are recorded in the Condensed Consolidated Balances Sheets in Other non-current assets. Debt issuance costs for the New Revolving Credit Facility are amortized to interest expense over the contractual term of the underlying debt instrument on a straight-line basis through the maturity date of the New Revolving Credit Facility on August 12, 2029.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements Segment Reporting – Improvements to Reportable Segment Disclosures In November 2023, the FASB issued Accounting Standards Update (“ASU”) No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures”, which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. The updated standard is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted and the update requires retrospective application to all prior periods presented. The Company is currently in the process of evaluating the impact of this standard on the Company’s Condensed Consolidated Financial Statements. Income Taxes – Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”), which expands annual disclosure requirements related to the rate reconciliation and income taxes paid disclosures. ASU 2023-09 requires consistent categories and greater disaggregation of information in the rate reconciliation and income taxes paid to be disaggregated by jurisdiction. The updated standard is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted and the update may be applied on a prospective basis with retrospective application permitted. The Company is currently in the process of evaluating the impact of this standard on the Company’s Condensed Consolidated Financial Statements.

Revenue (Tables)

Revenue (Tables)	9 Months Ended
Revenue (Tables)	Sep. 30, 2024
Revenue
Schedule of disaggregated revenue	Three Months Ended Nine Months Ended September 30, September 30, ( in thousands) 2024 2023 2024 2023 Activation $ 96,791 $ 81,700 $ 263,584 $ 229,534 Measurement 58,468 51,263 162,560 137,637 Supply-side 14,297 11,011 40,084 33,141 Total revenue $ 169,556 $ 143,974 $ 466,228 $ 400,312

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
Goodwill and Intangible Assets (Tables)	Sep. 30, 2024
Goodwill and Intangible Assets
Summary of changes to the goodwill carrying value	(in thousands) Goodwill at December 31, 2023 $ 436,008 Measurement period adjustments (300) Foreign exchange impact 1,938 Goodwill at September 30, 2024 $ 437,646
Schedule of intangible assets and related accumulated amortization	( in thousands) September 30, 2024 December 31, 2023 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Amount Amortization Amount Amount Amortization Amount Trademarks and brands $ 11,735 $ (5,775) $ 5,960 $ 11,734 $ (5,140) $ 6,594 Customer relationships 161,474 (73,675) 87,799 161,173 (62,955) 98,218 Developed technology 93,356 (67,461) 25,895 93,013 (56,942) 36,071 Non-compete agreements 67 (67) — 66 (66) — Total intangible assets $ 266,632 $ (146,978) $ 119,654 $ 265,986 $ (125,103) $ 140,883
Schedule of estimated future expected amortization expense of intangible assets	(in thousands) 2024 (for remaining three months) $ 7,186 2025 26,983 2026 22,230 2027 18,252 2028 14,999 2029 12,648 Thereafter 17,356 Total $ 119,654
Schedule of weighted-average remaining useful life by major asset classes	(In years) Trademarks and brands 8 Customer relationships 6 Developed technology 2

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	9 Months Ended
Property, Plant and Equipment (Tables)	Sep. 30, 2024
Property, Plant and Equipment
Schedule of property, plant and equipment	As of (in thousands) September 30, 2024 December 31, 2023 Computers and peripheral equipment $ 26,845 $ 25,013 Office furniture and equipment 4,744 3,170 Leasehold improvements 35,245 32,595 Capitalized software development costs 50,066 35,039 Less accumulated depreciation and amortization (49,479) (37,797) Total property, plant and equipment, net $ 67,421 $ 58,020

Leases (Tables)

Leases (Tables)	9 Months Ended
Leases (Tables)	Sep. 30, 2024
Leases
Schedule of lease cost and other information about leases	Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2024 2023 2024 2023 Lease cost: Operating lease cost (1) $ 2,921 $ 2,614 $ 8,248 $ 7,783 Finance lease cost: Depreciation of finance lease assets (2) 493 620 1,605 1,151 Interest on finance lease liabilities (3) 49 83 170 149 Short-term lease cost (1) 294 219 938 708 Sublease income (1) — (266) — (800) Total lease cost $ 3,757 $ 3,270 $ 10,961 $ 8,991 Other information: Cash paid for amounts included in the measurement of lease liabilities Operating cash outflows from operating leases $ 2,870 $ 1,921 $ 7,908 $ 4,773 Operating cash outflows from finance leases $ 37 $ 38 $ 192 $ 78 Financing cash outflows from finance leases $ 378 $ 577 $ 1,940 $ 1,605 (1) Included in Cost of revenue, Sales, marketing and customer support, Product development and General and administrative expenses in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income. (2) Included in Depreciation and amortization in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income. (3) Included in Interest expense in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income.
Schedule of weighted-average remaining lease terms and discount rates	The following table presents weighted-average remaining lease terms and weighted-average discount rates for finance and operating leases as of September 30, 2024 and 2023, respectively: September 30, 2024 2023 Weighted-average remaining lease term - operating leases (in years) 11.9 13.7 Weighted-average remaining lease term - finance leases (in years) 1.6 2.4 Weighted-average discount rate - operating leases 4.8% 4.6% Weighted-average discount rate - finance leases 5.5% 5.3%
Schedule of the future operating lease commitment under agreement	Maturities of lease liabilities as of September 30, 2024 were as follows: September 30, 2024 (in thousands) Operating Leases Finance Leases 2024 (for remaining three months) $ 2,775 $ 1,083 2025 11,689 2,150 2026 10,786 819 2027 10,212 — 2028 9,041 — 2029 8,837 — Thereafter 67,160 — Total lease payments 120,500 4,052 Less amount representing interest (30,168) (193) Present value of total lease payments $ 90,332 $ 3,859
Schedule of maturities of finance lease liabilities	September 30, 2024 (in thousands) Operating Leases Finance Leases 2024 (for remaining three months) $ 2,775 $ 1,083 2025 11,689 2,150 2026 10,786 819 2027 10,212 — 2028 9,041 — 2029 8,837 — Thereafter 67,160 — Total lease payments 120,500 4,052 Less amount representing interest (30,168) (193) Present value of total lease payments $ 90,332 $ 3,859

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	9 Months Ended
Fair Value Measurement (Tables)	Sep. 30, 2024
Fair Value Measurement
Schedule of financial instruments measured at fair value on recurring basis	As of September 30, 2024 Quoted Market Prices in Active Significant Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs Total Fair Value ( in thousands) (Level 1) (Level 2) (Level 3) Measurements Assets: Cash equivalents $ 33,860 $ — $ — $ 33,860 Short-term investments $ 50,686 $ — $ — $ 50,686 As of December 31, 2023 Quoted Market Prices in Active Significant Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs Tota1 Fair Value (in thousands) (Level 1) (Level 2) (Level 3) Measurements Assets: Cash equivalents $ 61,463 $ — $ — $ 61,463

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
Earnings Per Share (Tables)	Sep. 30, 2024
Earnings Per Share
Schedule of computations of the basic and diluted EPS	Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 Numerator: Net Income (basic and diluted) $ 18,201 $ 13,347 $ 32,831 $ 38,361 Denominator: Weighted-average common shares outstanding 170,254 168,606 171,060 166,937 Dilutive effect of share-based awards 3,657 5,374 4,808 5,875 Weighted-average dilutive shares outstanding 173,911 173,980 175,868 172,812 Basic earnings per share $ 0.11 $ 0.08 $ 0.19 $ 0.23 Diluted earnings per share $ 0.10 $ 0.08 $ 0.19 $ 0.22

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
Stock-Based Compensation (Tables)	Sep. 30, 2024
Stock-Based Compensation
Schedule of stock option activity	Stock Option Weighted Average Remaining Number of Weighted Average Contractual Life Aggregate Options Exercise Price (Years) Intrinsic Value Outstanding as of December 31, 2023 9,992 $ 17.01 6.91 $ 197,598 Options granted — — Options exercised (432) 6.69 Options forfeited (69) 30.97 Outstanding as of September 30, 2024 9,491 $ 17.38 6.20 $ 47,666 Options expected to vest as of September 30, 2024 1,776 $ 26.91 7.91 $ — Options exercisable as of September 30, 2024 7,650 $ 15.09 5.79 $ 47,666
Schedule of restricted stock activity	RSUs Number of Weighted Average Shares Grant Date Fair Value Outstanding as of December 31, 2023 4,720 $ 28.03 Granted 2,972 31.93 Vested (1,664) 28.98 Forfeited (228) 29.41 Outstanding as of September 30, 2024 5,800 $ 29.70
Schedule of PSUs activity	PSUs Weighted Average Grant Number of Date Fair Shares (1) Value Outstanding as of December 31, 2023 480 $ 41.31 Granted 186 41.28 Vested — — Forfeited — — Outstanding as of September 30, 2024 666 $ 41.30 (1)
Schedule of stock-based compensation expense	Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2024 2023 2024 2023 Product development $ 8,899 $ 6,235 $ 26,006 $ 16,589 Sales, marketing and customer support 7,152 4,945 20,591 13,198 General and administrative 6,899 4,611 21,309 12,984 Total stock-based compensation $ 22,950 $ 15,791 $ 67,906 $ 42,771
Performance share units (PSUs)
Stock-Based Compensation
Schedule of valuation assumptions	2024 Risk‑free interest rate (percentage) 3.9 - 4.1 Expected dividend yield (percentage) — Expected volatility (percentage) 46.7

Supplemental Financial Statem_2

Supplemental Financial Statement Information (Tables)	9 Months Ended
Supplemental Financial Statement Information (Tables)	Sep. 30, 2024
Supplemental Financial Statement Information
Schedule of accrued expenses	As of (in thousands) September 30, 2024 December 31, 2023 Vendor payments $ 6,303 $ 6,286 Employee commissions and bonuses 21,342 20,809 Payroll and other employee related expense 11,751 10,602 401k and pension expense 2,680 2,982 Other taxes 4,465 3,585 Total accrued expenses $ 46,541 $ 44,264
Schedule of other income, net	Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2024 2023 2024 2023 Interest income $ (3,232) $ (2,584) $ (9,822) $ (8,027) Foreign currency exchange (gain) loss (893) 955 1,323 1,184 Other miscellaneous income, net (100) (4) (62) — Other income, net $ (4,225) $ (1,633) $ (8,561) $ (6,843)

Description of Business (Detail

Description of Business (Details) - segment	9 Months Ended
Description of Business (Details) - segment	Sep. 30, 2024	Aug. 18, 2017
Business Combinations
Number of reportable segments	1
DoubleVerify Inc.
Business Combinations
Ownership percentage acquired		100%

Revenue (Details)

Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Revenue (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Disaggregation of revenue
Total revenue	$ 169,556	$ 143,974	$ 466,228	$ 400,312
Unbilled receivable	59,300		59,300		$ 55,000
Remaining performance obligation	$ 29,700		$ 29,700
Minimum \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-01
Disaggregation of revenue
Remaining performance obligations	1 year		1 year
Maximum \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-01
Disaggregation of revenue
Remaining performance obligations	3 years		3 years
Activation
Disaggregation of revenue
Total revenue	$ 96,791	81,700	$ 263,584	229,534
Measurement
Disaggregation of revenue
Total revenue	58,468	51,263	162,560	137,637
Supply-side
Disaggregation of revenue
Total revenue	$ 14,297	$ 11,011	$ 40,084	$ 33,141
Supply-side revenue	8.60%		8.60%

Business Combinations - Acquisi

Business Combinations - Acquisition (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($)
Business Acquisition [Line Items]
Adjustments recorded to goodwill	$ 300
Scibids
Business Acquisition [Line Items]
Aggregate net purchase price, including measurement period adjustments	121,100
Measurement period adjustments recorded	300
Purchase consideration	(300)
Adjustments recorded to goodwill	$ (300)

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Goodwill (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($)
Changes to the goodwill carrying value
Goodwill at Beginning	$ 436,008
Measurement period adjustments	(300)
Foreign exchange impact	1,938
Goodwill at Ending	$ 437,646

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Summary of Company's intangible assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 266,632		$ 266,632		$ 265,986
Accumulated Amortization	(146,978)		(146,978)		(125,103)
Total	119,654		119,654		140,883
Amortization expense	7,200	$ 7,400	21,600	$ 20,000
Trademarks and brands
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	11,735		11,735		11,734
Accumulated Amortization	(5,775)		(5,775)		(5,140)
Total	5,960		5,960		6,594
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	161,474		161,474		161,173
Accumulated Amortization	(73,675)		(73,675)		(62,955)
Total	87,799		87,799		98,218
Developed Technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	93,356		93,356		93,013
Accumulated Amortization	(67,461)		(67,461)		(56,942)
Total	25,895		25,895		36,071
Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	67		67		66
Accumulated Amortization	$ (67)		$ (67)		$ (66)

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Estimated future expected amortization expense (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2024 (for remaining three months)	$ 7,186
2025	26,983
2026	22,230
2027	18,252
2028	14,999
2029	12,648
Thereafter	17,356
Total	$ 119,654	$ 140,883

Goodwill and Intangible Asset_5

Goodwill and Intangible Assets - Weighted-average remaining useful life (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Finite-Lived Intangible Assets [Line Items]
Impairment of intangible assets	$ 0	$ 0
Impairment of goodwill	$ 0	$ 0
Trademarks and brands
Finite-Lived Intangible Assets [Line Items]
Remaining useful life	8 years
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Remaining useful life	6 years
Developed Technology
Finite-Lived Intangible Assets [Line Items]
Remaining useful life	2 years

Property, Plant and Equipment_2

Property, Plant and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Less accumulated depreciation and amortization	$ (49,479)		$ (49,479)		$ (37,797)
Total property, plant and equipment, net	67,421		67,421		58,020
Depreciation expense	4,300	$ 3,300	11,800	$ 9,400
Property, plant and equipment
Property, Plant and Equipment [Line Items]
Impairments of Property, plant and equipment			0	$ 0
Computers and Peripheral Equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment gross	26,845		26,845		25,013
Finance lease assets, gross	17,800		17,800		17,800
Finance lease assets, accumulated depreciation	14,500		14,500		12,900
Office Furniture and Equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment gross	4,744		4,744		3,170
Leasehold Improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment gross	35,245		35,245		32,595
Capitalized software development costs
Property, Plant and Equipment [Line Items]
Property, plant and equipment gross	$ 50,066		$ 50,066		$ 35,039

Leases - Leases Cost (Details)

Leases - Leases Cost (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Leases - Leases Cost (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Lease cost:
Operating lease cost (1)	$ 2,921	$ 2,614	$ 8,248	$ 7,783
Finance lease cost
Depreciation of finance lease assets (2)	493	620	1,605	1,151
Interest on finance lease liabilities (3)	49	83	170	149
Short-term lease cost (1)	294	219	938	708
Sublease income (1)		(266)		(800)
Total lease cost	3,757	3,270	10,961	8,991
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows from operating leases	2,870	1,921	7,908	4,773
Operating cash outflows from finance leases	37	38	192	78
Financing cash outflows from finance leases	$ 378	$ 577	$ 1,940	$ 1,605

Leases - Weighted-average remai

Leases - Weighted-average remaining lease terms and discount rates (Details)	Sep. 30, 2024	Sep. 30, 2023
Leases
Weighted-average remaining lease term - operating leases (in years)	11 years 10 months 24 days	13 years 8 months 12 days
Weighted-average remaining lease term - finance leases (in years)	1 year 7 months 6 days	2 years 4 months 24 days
Weighted-average discount rate - operating leases	4.80%	4.60%
Weighted-average discount rate - finance leases	5.50%	5.30%

Leases - Maturities of Operatin

Leases - Maturities of Operating Lease Liabilities (Details) $ in Thousands	Sep. 30, 2024 USD ($)
Maturities of operating lease liabilities
2024 (for remaining three months)	$ 2,775
2025	11,689
2026	10,786
2027	10,212
2028	9,041
2029	8,837
Thereafter	67,160
Total lease payments	120,500
Less amount representing interest	(30,168)
Present value of total lease payments	$ 90,332

Leases - Maturities of Finance

Leases - Maturities of Finance Lease Liabilities (Details) $ in Thousands	Sep. 30, 2024 USD ($)
Maturities of finance lease liabilities
2024 (for remaining three months)	$ 1,083
2025	2,150
2026	819
Total lease payments	4,052
Less amount representing interest	(193)
Present value of total lease payments	$ 3,859

Leases - Narratives (Details)

Leases - Narratives (Details) $ in Millions	Sep. 30, 2024 USD ($)
Minimum
Unrecorded Unconditional Purchase Obligation [Line Items]
Lease Term	2 years
Maximum
Unrecorded Unconditional Purchase Obligation [Line Items]
Lease Term	3 years
Operating Lease, Lease Not yet Commenced
Unrecorded Unconditional Purchase Obligation [Line Items]
Unconditional Purchase Obligation	$ 1.7

Fair Value Measurement - Fair v

Fair Value Measurement - Fair value on a recurring basis (Details) - Recurring - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Assets:
Cash equivalents	$ 33,860	$ 61,463
Short-term investments	50,686
Level 1
Assets:
Cash equivalents	33,860	$ 61,463
Short-term investments	$ 50,686

Fair Value Measurement - Narrat

Fair Value Measurement - Narrative (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Treasury Bills
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	$ 50.7
Level 1 \| Money market funds and time deposits
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	$ 33.9	$ 61.5

Long-term Debt (Details)

Long-term Debt (Details)	Aug. 12, 2024 USD ($)	Sep. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)
Debt Instrument [Line Items]
Maximum total net leverage ratio		4.50
Letter of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 20,000,000
New Revolving Credit Facility
Debt Instrument [Line Items]
Aggregate principal amount	$ 200,000,000
Outstanding amount		$ 0	$ 0
New Revolving Credit Facility \| Minimum
Debt Instrument [Line Items]
Percentage of commitment fee payable periodically	0.25%
New Revolving Credit Facility \| Maximum
Debt Instrument [Line Items]
Percentage of commitment fee payable periodically	0.35%
New Revolving Credit Facility \| SOFR \| Minimum
Debt Instrument [Line Items]
Spread rate	2%
New Revolving Credit Facility \| SOFR \| Maximum
Debt Instrument [Line Items]
Spread rate	2.75%
New Revolving Credit Facility \| Alternate Base Rate \| Minimum
Debt Instrument [Line Items]
Spread rate	1%
New Revolving Credit Facility \| Alternate Base Rate \| Maximum
Debt Instrument [Line Items]
Spread rate	1.75%

Income Tax (Details)

Income Tax (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Income Tax (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Tax [Line Items]
Income tax provision	$ 11,395	$ 6,234	$ 18,580	$ 15,775
Effective tax rate	38.50%	31.80%	36.10%	29.10%
Israel tax authority
Income Tax [Line Items]
Immaterial adjustment	$ 100		$ 100

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Numerator:
Net Income (Loss)	$ 18,201	$ 7,474	$ 7,156	$ 13,347	$ 12,839	$ 12,175	$ 32,831	$ 38,361
Denominator:
Weighted-average common shares outstanding	170,254			168,606			171,060	166,937
Dilutive effect of share-based awards	3,657			5,374			4,808	5,875
Weighted-average dilutive shares outstanding	173,911			173,980			175,868	172,812
Basic earnings per share	$ 0.11			$ 0.08			$ 0.19	$ 0.23
Diluted earnings per share	$ 0.10			$ 0.08			$ 0.19	$ 0.22
Weighted average shares issuable under stock-based awards, excluded from diluted EPS calculation	10,700			7,700			4,300	7,800

Stock-Based Compensation (Detai

Stock-Based Compensation (Details)	9 Months Ended
Stock-Based Compensation (Details)	Sep. 30, 2024
Equity Incentive Program
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term of award	10 years
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
Performance share units (PSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock option activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2024 USD ($) $ / shares shares	Dec. 31, 2023 USD ($) $ / shares shares
Number of Options
Outstanding beginning balance \| shares	9,992
Options exercised \| shares	(432)
Options forfeited \| shares	(69)
Outstanding ending balance \| shares	9,491	9,992
Options expected to vest \| shares	1,776
Options exercisable \| shares	7,650
Weighted Average Exercise Price
Outstanding beginning balance (in dollars per share) \| $ / shares	$ 17.01
Options exercised (in dollars per share) \| $ / shares	6.69
Options forfeited (in dollars per share) \| $ / shares	30.97
Outstanding ending balance (in dollars per share) \| $ / shares	17.38	$ 17.01
Options expected to vest (in dollars per share) \| $ / shares	26.91
Options exercisable (in dollars per share) \| $ / shares	$ 15.09
Additional disclosures
Weighted Average Remaining Contractual Life (Years)	6 years 2 months 12 days	6 years 10 months 28 days
Options expected to vest (in years)	7 years 10 months 28 days
Options exercisable (Years)	5 years 9 months 14 days
Aggregate Intrinsic Value, outstanding (Beginning balance) \| $	$ 197,598
Aggregate Intrinsic Value, outstanding (ending balance) \| $	47,666	$ 197,598
Aggregate Intrinsic Value, exercisable \| $	$ 47,666

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional information (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding ending balance	9,491		9,491
Intrinsic value			$ 9,300	$ 54,100
Options exercised			432
Stock-based compensation expense	$ 22,950	$ 15,791	$ 67,906	42,771
2021 Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Purchase price of common stock purchased (in percent)			85%
Stock-based compensation expense	$ 300	$ 200	$ 800	$ 600
Performance and Market Based Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted			0
Outstanding ending balance	1,313		1,313
Options exercised			60
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested, Fair value			$ 48,200

Stock-Based Compensation - RSUs

Stock-Based Compensation - RSUs and PSUs (Details) shares in Thousands	9 Months Ended
	Sep. 30, 2024 $ / shares shares
Restricted Stock Units (RSUs)
Number of Shares
Outstanding beginning balance \| shares	4,720
Granted \| shares	2,972
Vested \| shares	(1,664)
Forfeited \| shares	(228)
Outstanding ending balance \| shares	5,800
Weighted Average Grant Date Fair Value
Outstanding beginning balance (in dollars per share) \| $ / shares	$ 28.03
Granted (in dollars per share) \| $ / shares	31.93
Vested (in dollars per share) \| $ / shares	28.98
Forfeited (in dollars per share) \| $ / shares	29.41
Outstanding ending balance (in dollars per share) \| $ / shares	$ 29.70
Performance share units (PSUs)
Number of Shares
Outstanding beginning balance \| shares	480
Granted \| shares	186
Outstanding ending balance \| shares	666
Weighted Average Grant Date Fair Value
Outstanding beginning balance (in dollars per share) \| $ / shares	$ 41.31
Granted (in dollars per share) \| $ / shares	41.28
Outstanding ending balance (in dollars per share) \| $ / shares	$ 41.30

Stock-Based Compensation - Valu

Stock-Based Compensation - Valuation Assumptions (Details) - Performance share units (PSUs)	9 Months Ended
	Sep. 30, 2024
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Risk - free interest rate (percentage), minimum	3.90%
Risk - free interest rate (percentage), maximum	4.10%
Expected volatility (percentage)	46.70%

Stock-Based Compensation - St_2

Stock-Based Compensation - Stock-based compensation expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Share-based payment arrangements information
Total stock-based compensation	$ 22,950	$ 15,791	$ 67,906	$ 42,771
Unrecognized stock-based compensation expense	182,400		$ 182,400
Weighted-average period over which unrecognized stock-based compensation expense are expected to be recognized			1 year 3 months 18 days
Product development
Share-based payment arrangements information
Total stock-based compensation	8,899	6,235	$ 26,006	16,589
Sales, marketing and customer support
Share-based payment arrangements information
Total stock-based compensation	7,152	4,945	20,591	13,198
General and administrative
Share-based payment arrangements information
Total stock-based compensation	$ 6,899	$ 4,611	$ 21,309	$ 12,984

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($) $ in Thousands, shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Sep. 30, 2024	May 16, 2024
Share repurchase program, amount repurchased	$ 25,025	$ 25,027
Share Repurchase Program [Member]
Share repurchase program, authorized amount				$ 150,000
Share Repurchase Program [Member] \| Common Stock
Share repurchase program, shares repurchased	1.3		2.6
Share repurchase program, amount repurchased	$ 25,000		$ 50,100
Share Repurchase Program, Remaining Authorized, Amount	$ 100,000		$ 100,000

Supplemental Financial Statem_3

Supplemental Financial Statement Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Accrued Expenses
Vendor payments	$ 6,303		$ 6,303		$ 6,286
Employee commissions and bonuses	21,342		21,342		20,809
Payroll and other employee related expense	11,751		11,751		10,602
401k and pension expense	2,680		2,680		2,982
Other taxes	4,465		4,465		3,585
Total accrued expense	46,541		46,541		$ 44,264
Other Income, Net
Interest income	(3,232)	$ (2,584)	(9,822)	$ (8,027)
Foreign currency exchange (gain) loss	(893)	955	1,323	1,184
Other miscellaneous income, net	(100)	(4)	(62)
Other income, net	$ (4,225)	$ (1,633)	$ (8,561)	$ (6,843)

Segment Information (Details)

Segment Information (Details)	9 Months Ended
Segment Information (Details)	Sep. 30, 2024 segment
Segment Information
Number of operating segments	1
Number of reportable segments	1

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ in Thousands, shares in Millions	1 Months Ended	3 Months Ended
	Oct. 31, 2024	Sep. 30, 2024	Jun. 30, 2024	Nov. 06, 2024	May 16, 2024
Subsequent Event [Line Items]
Share repurchase program, amount repurchased		$ 25,025	$ 25,027
Share Repurchase Program
Subsequent Event [Line Items]
Share repurchase program, authorized amount					$ 150,000
Subsequent Event \| Share Repurchase Program
Subsequent Event [Line Items]
Share repurchase program, shares repurchased	1.5
Remaining Authorized, Amount				$ 75,000
Share repurchase program, amount repurchased	$ 25,000
Subsequent Event \| New Share Repurchase Program
Subsequent Event [Line Items]
Share repurchase program, authorized amount				200,000
Remaining Authorized, Amount				$ 200,000