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  "documentTitle": "DoubleVerify Holdings, Inc. (DV)",
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  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2023-05-02 00:00:00",
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      "kind": "callout",
      "text": "Needham: Growth has come it at the low end, growing by ~2x, but that includes abnormal and unexplained Q4 2022 revenue that management needs to explain. Future growth is likely to be much slower. Barclays: Offices are closing. Now fewer foreign office locations are listed on the website.",
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      "text": "Sell-side promoters have relied on DV management's story that the international opportunity is large and growing fast. However, we believe the opposite is true.",
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      "text": "Barclays Capital Promotion of DV: International Expansion on Horizon. The last major vector for growth in the business is the pathway to expanding deeper internationally. Although strides have been made of late (offices in 6 countries in 2018 to 15 countries now), DoubleVerify has a lower level of international business compared to the other capable large vendors. Thus, International expansion into existing customers represents a larger opportunity for the company than it does to the competition.",
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      "text": "Needham Promotion of DV: International Growth Option. We estimate that DV garnered about 15% of its revenue outside the US in 2020. Strategically, DV follows its US clients offshore, which minimizes costs (and risks) associated with international revenue growth. We expect offshore revenue growth to be 2-3x faster than US revenue growth over the next 3 years.",
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      "text": "Sell-side promoters have relied on DV management's story that the international opportunity is large and growing fast. However, we believe the opposite is true. Our evidence shows that DV's global expansion is stalling out and that it is relying on unusually large and unexplainable revenue recognition to perpetuate its story. However, there is no better sign of its challenges than seeing its EMEA and APAC leaders depart, its office locations close, and its lost accreditation.",
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      "text": "Needham: Growth has come it at the low end, growing by ~2x, but that includes abnormal and unexplained Q4 2022 revenue that management needs to explain. Future growth is likely to be much slower. Barclays: Offices are closing. Now fewer foreign office locations are listed on the website. — Spruce Point Capital Management",
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      "kind": "source-note",
      "text": "Source: Needham Initiation, “Gold Standard of Verification: Initiate DV at BUY”, May 17, 2021",
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      "kind": "source-note",
      "text": "Source: Barclays Initiation, “Unique Asset But No Need for a Double Take; Initiate Equal Weight”, May 17, 2021",
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      "kind": "title",
      "text": "Bull Case Predicated On Overly Optimistic And Challenged International Ambitions",
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