First-Quarter Advertising Software Stock Teardown: DoubleVerify (NYSE:DV) vs. the Rest
As first-quarter earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the advertising software industry, including DoubleVerify (NYSE:DV) and its peers.
The digital advertising market is large, growing and becoming more diverse in terms of both target groups and media. Therefore, there is a growing need for software that allows advertisers to use data to automate and optimize ad placements.
The six advertising software stocks we track reported a strong first quarter. Overall, sales beat analyst consensus estimates by 2.8%, while the next quarter’s sales forecast was 0.6% higher.
Given this news, company share prices remained stable, rising an average of 3.3% since the last earnings results.
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DoubleVerify (NYSE:DV)
DoubleVerify (NYSE:DV) uses advanced analytics to evaluate over 17 billion daily digital ad transactions and offers AI-powered technology that verifies that digital ads are viewable, fraud-free, brand-appropriate and displayed in their intended geographic location.
DoubleVerify reported revenue of $180.8 million, up 9.6% year over year. This figure was in line with analysts’ expectations and overall it was a satisfactory quarter for the company, significantly exceeding analysts’ EBITDA estimates, but full-year revenue guidance was in line with analysts’ expectations.
“We continued our solid execution in the first quarter, reporting 10% year-over-year revenue growth while delivering strong adjusted EBITDA margins of 31%,” said Mark Zagorski, CEO of DoubleVerify.
DoubleVerify total sales
DoubleVerify delivered the weakest full-year guidance update among its peers. Even though it was a relatively good quarter, the market seems to be unhappy with the results. The stock has fallen 2.7% since reporting and is currently trading at $10.85.
Is now the time to buy DoubleVerify? You can access our full earnings results analysis for free here.
Best Q1: PubMatic (NASDAQ:PUBM)
PubMatic (NASDAQ:PUBM) operates a technology platform that powers billions of ad impressions daily across the open internet, helping publishers maximize revenue from their digital advertising inventory while providing advertisers with greater control and transparency.
PubMatic reported revenue of $62.57 million, down 2% from a year ago and beating analysts’ expectations by 4.4%. The company had an exceptional quarter, with EBITDA guidance for the next quarter beating analysts’ expectations and impressively beating analysts’ EBITDA estimates.
PubMatic total sales
PubMatic achieved the highest advisory increase of the entire group. The market seems pleased with the results as the stock is up 23.6% since reporting. It is currently trading at $12.66.
The story continues
Is now the time to buy PubMatic? You can access our full earnings results analysis for free here.
Weakest Q1: The Trade Desk (NASDAQ:TTD)
Designed as an alternative to walled garden advertising ecosystems, The Trade Desk (NASDAQ:TTD) provides a cloud-based platform that helps advertisers and agencies plan, manage and optimize digital advertising campaigns across multiple channels and devices.
The Trade Desk reported revenue of $688.9 million, up 11.8% from a year ago and beating analysts’ expectations by 1.4%. Still, it was a weaker quarter as the revenue forecast for the next quarter fell well short of analyst expectations and the EBITDA forecast for the next quarter fell well short of analyst expectations.
The trade desk delivered the weakest guidance update in the group. As expected, the stock has fallen 25.1% since the results and is currently trading at $17.60.
Read our full analysis of The Trade Desk’s results here.
AppLovin (NASDAQ:APP)
AppLovin (NASDAQ:APP) stands at the intersection of the mobile advertising ecosystem and offers over 200 free-to-play games in its portfolio. It provides software solutions that help mobile app developers market, monetize and grow their apps through AI-powered advertising and analytics tools.
AppLovin reported revenue of $1.84 billion, up 59% year over year. This value exceeded analysts’ expectations by 3.9%. Overall, it was a very strong quarter as it also impressively beat analysts’ EBITDA estimates and EBITDA guidance for the next quarter, exceeding analysts’ expectations.
AppLovin achieved the fastest revenue growth among its competitors. The stock has fallen 11.8% since reporting and is currently trading at $413.46.
Read our full actionable report on AppLovin here, it’s free.
Zeta Global (NYSE:ZETA)
Powered by an AI engine that processes over one trillion consumer signals monthly, Zeta Global (NYSE:ZETA) operates a data-driven cloud platform that helps companies target, engage and engage with consumers through personalized marketing across channels such as email, social media and video.
Zeta Global reported revenue of $396.3 million, up 49.9% year over year. This figure beat analysts’ expectations by 7%. It was a very strong quarter as it also impressively beat analysts’ billing estimates and significantly beat analysts’ EBITDA estimates.
Zeta Global achieved the largest beat over analyst estimates and the highest full-year forecast increase in the group. The stock is up 9.5% since reporting and is currently trading at $20.17.
Read our full, actionable report on Zeta Global for free here.
Market update
Over the past year, investors have had to answer the same question again and again: What is the market’s biggest risk? The answer has changed several times, and each shift has changed market leadership.
In late 2025 and early 2026, artificial intelligence became the market’s biggest uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive advantages because AI makes it easier to reproduce once-differentiated products.
In the spring, technology took a back seat to geopolitics. The US conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption subsided, investors quickly refocused on fundamentals.
Want to invest in winners with rock-solid fundamentals? Check out our top 6 stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
https://finance.yahoo.com/media-advertising/articles/advertising-software-stocks-q1-teardown-121708810.html
