DoubleVerify Holdings (DV) risk factors, FY2025 10-K

Risks Relating to Our Business

1. 01If we fail to respond to technological developments, evolving industry standards or shifting advertiser preference, our solutions may become obsolete or less competitive38% rewritten
2. 02The market in which we participate is highly competitive29% rewritten
3. 03System failures, security breaches, cyberattacks or other unforeseen events could interrupt the operation of our platform and data centers and significantly harm our business, financial condition and results of operations34% rewritten
4. 04We may face risks associated with our use of artificial intelligence and machine learning models24% rewritten
5. 05Our solutions rely on integrations with demand- and supply-side advertising platforms, ad servers and social platforms
6. 06Economic downturns and unstable market conditions could adversely affect our business, financial condition and results of operations52% rewritten
7. 07We have completed several acquisitions in the past and may consummate additional acquisitions in the future, which may be difficult to integrate, disrupt our business, expose us to unanticipated liabilities, dilute stockholder value or divert management attention
8. 08We are subject to payment-related risks, and if our ability to accurately and timely collect payments is impaired, our business, financial condition and results of operations may be adversely affected25% rewritten
9. 09Defects, errors or inaccuracies associated with our solutions could negatively impact our business, financial condition and results of operations37% rewritten
10. 10We often have long sales cycles, which can result in significant time between initial contact with a prospect and execution of a contractual agreement, making it difficult to project when, if at all, we will generate revenue from new customers
11. 11We depend on our management team and other key personnel to manage our business effectively, and if we are unable to retain such key personnel or hire additional qualified personnel, our ability to compete could be harmed31% rewritten
12. 12Increasing scrutiny and evolving expectations from customers, employees, regulators and other stakeholders with respect to our corporate social responsibility (“CSR”) practices may expose us to new or additional risks
13. 13Data privacy legislation and regulation on digital advertising and privacy and data protection may adversely affect our business
14. 14Public criticism of digital advertising technology in the U.S. and internationally, including digital advertising on social media platforms, could adversely affect the demand for and use of our solutions32% rewritten
15. 15The success of our business depends in large part on our ability to protect and enforce our intellectual property rights
16. 16An assertion from a third party that we are infringing its intellectual property rights, whether such assertion is valid or not, could subject us to costly and time-consuming litigation, expensive licenses or other impacts to our business
17. 17We are exposed to the risks of operating internationally
18. 18Exposure to foreign currency exchange rate fluctuations could negatively impact our results of operations
19. 19Our use of “open source” software could subject our technology to general release or require us to re-engineer our platform, or subject us to litigation, which could harm our business, financial condition and results of operations
20. 20Seasonal and other fluctuations in advertising activity could have a negative impact on our revenue, cash flow and operating results40% rewritten
21. 21Our operating history may not be indicative of our future growth or financial results and we may not be able to sustain our historical growth ratesNew
22. 22We are subject to taxation in multiple jurisdictions. Any adverse development in the tax laws of any of these jurisdictions or any disagreement with our tax positions could have a material and adverse effect on our business, financial condition or results of operations20% rewritten
23. 23Our revenues and results of operations may fluctuate in the future. As a result, we may fail to meet the expectations of securities analysts or investors, which could cause our stock price to decline
24. 24We maintain cash deposits in excess of federally insured limits. Adverse developments affecting financial institutions, including bank failures, could adversely affect our or our customers’ liquidity
25. 25Our estimates of market opportunity and forecasts of market growth included in this Annual Report on Form 10-K may prove to be inaccurate
26. 26Our financial condition and results of operations could be adversely affected if we incur an impairment of goodwill or other intangible and long-lived assets
27. 27Restrictions in the New Revolving Credit Facility could adversely affect our business, financial condition and results of operations
28. 28In the future, we may need to obtain additional financing that may not be available or may reduce our profitability or result in dilution to our stockholders

Risks Related to Our Common Stock

1. 29The market price of our common stock may be volatile and could decline regardless of our operating performance
2. 30DoubleVerify is a holding company with no operations of its own, and it depends on its subsidiaries for cash to fund all of its operations and expenses, including to make future dividend payments, if any
3. 31Future sales of shares by us or our existing stockholders could cause our stock price to decline
4. 32If securities or industry analysts do not publish research or publish misleading or unfavorable research about our business, our stock price and trading volume could decline48% rewritten
5. 33Providence has significant influence over us and may not always exercise its influence in a way that benefits our public stockholders
6. 34Under our amended and restated certificate of incorporation, Providence and its affiliates and, in some circumstances, any of our directors and officers who is also a director, officer, employee, member or partner of Providence and its affiliates, have no obligation to offer us corporate opportunities
7. 35Future offerings of debt or equity securities which would rank senior to our common stock may adversely affect the market price of our common stock
8. 36Anti-takeover provisions in our amended and restated certificate of incorporation and amended and restated bylaws could discourage, delay or prevent a change of control of our company and may affect the trading price of our common stock
9. 37We could be the subject of securities class action or other litigation due to future stock price volatility, which could divert management’s attention and materially and adversely affect our business, financial condition, results of operations or cash flows
10. 38We do not intend to pay dividends on our common stock for the foreseeable future and, consequently, your ability to achieve a return on your investment depends on appreciation in the price of our common stock
11. 39Our amended and restated certificate of incorporation includes provisions limiting the personal liability of our directors for breaches of fiduciary duty under the DGCL