Integral Ad Science (IAS)

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Integral Ad Science (IAS) - 2024 Q1 - Quarterly Report
2024-05-09 20:10
[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) The unaudited condensed consolidated financial statements for Q1 2024 report **$114.5 million** revenue, a **$1.3 million** net loss, and **$1.1 million** net cash used in operating activities Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$1,145,822** | **$1,191,724** | | Cash and cash equivalents | $83,947 | $124,759 | | Goodwill | $674,454 | $675,282 | | **Total Liabilities** | **$220,746** | **$282,268** | | Long-term debt | $123,841 | $153,725 | | **Total Stockholders' Equity** | **$925,076** | **$909,456** | Condensed Consolidated Statement of Operations Highlights (in thousands) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Revenue | $114,530 | $106,092 | | Total operating expenses | $113,993 | $96,503 | | Operating income | $537 | $9,589 | | Net (loss) income | $(1,255) | $3,146 | | Diluted EPS | $(0.01) | $0.02 | Condensed Consolidated Statement of Cash Flows Highlights (in thousands) | Cash Flow Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(1,131) | $22,956 | | Net cash used in investing activities | $(10,291) | $(8,342) | | Net cash used in financing activities | $(28,294) | $(7,098) | [Notes to the Condensed Consolidated Financial Statements (Unaudited)](index=7&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) Detailed notes reveal the Americas as the largest revenue region, **$125 million** outstanding revolver debt, and **$15.7 million** in stock-based compensation expense for the quarter - The company operates as a single segment. Revenue is primarily generated from the Americas, which contributed **$78.5 million** in Q1 2024, up from **$74.2 million** in Q1 2023[65](index=65&type=chunk)[66](index=66&type=chunk) Revenue by Geographic Area (in thousands) | Region | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Americas | $78,519 | $74,201 | | EMEA | $27,227 | $24,063 | | APAC | $8,784 | $7,828 | | **Total Revenue** | **$114,530** | **$106,092** | - As of March 31, 2024, the company had **$125 million** outstanding on its revolving credit facility, which matures in 2026. The interest rate on the debt was **7.4%**. The company was in compliance with all debt covenants[55](index=55&type=chunk)[57](index=57&type=chunk)[59](index=59&type=chunk) - Total stock-based compensation expense was **$15.7 million** for Q1 2024, an increase from **$11.3 million** in Q1 2023. The majority of the expense is related to Restricted Stock Units (RSUs) and Market Stock Units (MSUs)[68](index=68&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2024 financial results, noting **8%** revenue growth to **$114.5 million**, an **18%** rise in operating expenses, and a contraction in Adjusted EBITDA margin to **29%** [Key Business Metrics](index=24&type=section&id=Key%20Business%20Metrics) Key performance indicators show an **11%** increase in large advertising customers to **227**, but net revenue retention for advertising customers decreased to **113%** Key Performance Indicators | Metric | March 31, 2024 | March 31, 2023 | | :--- | :--- | :--- | | Net revenue retention of advertising customers | 113% | 118% | | Total number of large advertising customers | 227 | 204 | - The decrease in net revenue retention was primarily due to lower advertising revenue growth during the trailing-twelve-month period (**15%** in 2024 vs. **22%** in 2023)[130](index=130&type=chunk) - Revenue from large advertising customers represented **85%** of total advertising revenue for the trailing-twelve-month period ended March 31, 2024[131](index=131&type=chunk) [Results of Operations](index=26&type=section&id=Results%20of%20Operations) Q1 2024 revenue grew **8%** to **$114.5 million**, but total operating expenses increased **18%**, leading to a **94%** decrease in operating income and a **$1.3 million** net loss Revenue Breakdown (in thousands) | Revenue Type | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | Optimization revenue | $52,461 | $51,033 | 3% | | Measurement revenue | $46,315 | $40,703 | 14% | | Publisher revenue | $15,754 | $14,356 | 10% | | **Total revenue** | **$114,530** | **$106,092** | **8%** | - Cost of revenue increased by **21%** (**$4.5 million**), mainly due to higher hosting fees[149](index=149&type=chunk) - Sales and marketing expenses rose **21%** (**$5.6 million**), driven by increased compensation (**$3.5 million**) and stock-based compensation (**$1.9 million**) to support revenue growth[150](index=150&type=chunk) - Depreciation and amortization increased **18%** (**$2.3 million**), primarily from higher amortization of capitalized internal-use software[153](index=153&type=chunk) [Non-GAAP Financial Measures](index=29&type=page&id=Non-GAAP%20Financial%20Measures) Adjusted EBITDA for Q1 2024 was **$33.1 million**, a slight decrease from Q1 2023, with the margin contracting from **32%** to **29%** Adjusted EBITDA Reconciliation (in thousands) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net (loss) income | $(1,255) | $3,146 | | Depreciation and amortization | $15,080 | $12,825 | | Stock-based compensation | $15,738 | $11,306 | | Interest expense, net | $1,926 | $3,417 | | (Benefit) provision from income taxes | $(134) | $3,026 | | Other adjustments | $1,695 | $333 | | **Adjusted EBITDA** | **$33,050** | **$34,053** | | **Adjusted EBITDA margin** | **29%** | **32%** | [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2024, liquidity included **$83.9 million** in cash, with **$1.1 million** net cash used in operating activities and **$30.0 million** in long-term debt repayment - Principal sources of liquidity as of March 31, 2024, were cash and cash equivalents of **$83.9 million**[162](index=162&type=chunk) - Net cash used in operating activities was **$1.1 million**, compared to **$23.0 million** provided in Q1 2023, primarily due to a **$32.0 million** decrease in working capital[172](index=172&type=chunk)[173](index=173&type=chunk) - Net cash used in financing activities was **$28.3 million**, driven by a **$30.0 million** repayment of long-term debt[176](index=176&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=32&type=page&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's market risk exposure, primarily from inflation and interest rates, has not materially changed since the 2023 Annual Report on Form 10-K - The company's primary market risk exposure is from potential changes in inflation or interest rates[182](index=182&type=chunk) - There have been no material changes to market risks since the year-ended December 31, 2023[183](index=183&type=chunk) [Item 4. Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting - The CEO and CFO concluded that disclosure controls and procedures were effective at a reasonable assurance level as of March 31, 2024[185](index=185&type=chunk) - There were no changes during the quarter in internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, internal controls[186](index=186&type=chunk) [PART II. OTHER INFORMATION](index=34&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=34&type=page&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any legal proceedings expected to have a material adverse effect on its financial condition or operations - As of the reporting date, the company is not involved in any legal proceedings that would have a material adverse effect on the business[190](index=190&type=chunk) [Item 1A. Risk Factors](index=34&type=page&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the 2023 Annual Report on Form 10-K have occurred - There have been no material changes to the risk factors disclosed in the company's 2023 Form 10-K[191](index=191&type=chunk) [Other Items (Items 2, 3, 4, 5, 6)](index=34&type=section&id=Other%20Items%20(Items%202,%203,%204,%205,%206)) This section covers other disclosures, including no unregistered equity sales, no defaults on senior securities, and no Rule 10b5-1 trading plan adoptions or terminations by directors or officers - The company reported no unregistered sales of equity securities or use of proceeds for the period[192](index=192&type=chunk) - No defaults upon senior securities were reported[193](index=193&type=chunk) - During the quarter, no directors or officers adopted or terminated a Rule 10b5-1 trading arrangement[195](index=195&type=chunk)
Integral Ad Science (IAS) - 2024 Q1 - Quarterly Results
2024-05-09 20:07
IAS Reports First Quarter 2024 Financial Results Total revenue increased 8% to $114.5 million Net loss of $1.3 million at a 1% net loss margin; adjusted EBITDA of $33.1 million at a 29% margin Introduces positive second quarter outlook and raises full-year outlook NEW YORK – May 9, 2024 – Integral Ad Science Holding Corp. (Nasdaq: IAS), a leading global media measurement and optimization platform, today announced financial results for the first quarter ended March 31, 2024. "Our first quarter results exceed ...
What Analyst Projections for Key Metrics Reveal About Integral Ad Science (IAS) Q1 Earnings
Zacks Investment Research· 2024-05-07 14:20
In its upcoming report, Integral Ad Science (IAS) is predicted by Wall Street analysts to post quarterly loss of $0.02 per share, reflecting a decline of 200% compared to the same period last year. Revenues are forecasted to be $112.1 million, representing a year-over-year increase of 5.7%.The consensus EPS estimate for the quarter has been revised 11.1% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates ...
IAS ANNOUNCES FIRST-TO-MARKET INTEGRATION WITH ROBLOX TO PROVIDE 3D IMMERSIVE MEASUREMENT
Prnewswire· 2024-05-01 13:05
Industry-Leading Viewability and Invalid Traffic Measurement to Provide Global Brands and Agencies Increased Transparency into Immersive Environments on Roblox NEW YORK, May 1, 2024 /PRNewswire/ -- Integral Ad Science (Nasdaq: IAS), a leading global media measurement and optimization platform, today announced a first-to-market integration with Roblox, a global immersive platform for connection and communication. Available for advertising campaigns on Roblox later this year, IAS's Viewability and Invalid Tra ...
IAS EXPANDS BRAND SAFETY AND SUITABILITY MEASUREMENT TO INCLUDE REPORTING ON THE TOPIC OF MISINFORMATION
Prnewswire· 2024-04-16 11:00
GARM-Aligned AI-Driven Solution Provides Added Confidence Campaigns Run Against Brand Safe & Suitable ContentNEW YORK, April 16, 2024 /PRNewswire/ -- Integral Ad Science (Nasdaq: IAS), a leading global media measurement and optimization platform, today announced the expansion of its Brand Safety and Suitability Measurement product to now include the Global Alliance for Responsible Media (GARM) category of misinformation across Facebook and Instagram Feed and Reels. IAS expands Meta brand safety and suita ...
IAS to Announce First Quarter 2024 Financial Results on May 9, 2024
Prnewswire· 2024-04-11 20:05
NEW YORK, April 11, 2024 /PRNewswire/ -- Integral Ad Science Holding Corp. (Nasdaq: IAS), a leading global media measurement and optimization platform, today announced that it will report its first quarter 2024 financial results after the market close on Thursday, May 9, 2024. Management will host a conference call and webcast to discuss the company's financial results that day at 5:00 p.m. ET. IAS First Quarter 2024 Financial Results Conference CallDate: Thursday, May 9, 2024Time: 5:00 p.m. ETLive Call: To ...
IAS ENHANCES TIKTOK BRAND SAFETY WITH NEW CATEGORY EXCLUSIONS AND VERTICAL SENSITIVITY SEGMENTS
Prnewswire· 2024-04-11 13:35
Industry-Leading Brand Safety & Suitability Measurement Expands to 11 Additional Countries to a Total of 60+ Countries on TikTokNEW YORK, April 11, 2024 /PRNewswire/ -- Integral Ad Science (Nasdaq: IAS), a leading global media measurement and optimization platform, today announced it is expanding its unparalleled brand safety and suitability measurement reporting on TikTok to include new Category Exclusion and Vertical Sensitivity Segments, enabling advertisers to avoid a wider range of content unsuitable t ...
Integral Ad Science (IAS) - 2023 Q4 - Annual Report
2024-02-27 21:17
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ Commission File Number: 001-40557 INTEGRAL AD SCIENCE HOLDING CORP. (Exact name of registrant as specified in its charter) (State or Other Jurisdiction ...
Integral Ad Science (IAS) - 2023 Q4 - Annual Results
2024-02-27 21:08
Fourth quarter revenue increased 14% to $134.3 million Fourth quarter net income of $10.2 million at an 8% margin; fourth quarter adjusted EBITDA increased 19% to $47.5 million at a 35% margin NEW YORK – February 27, 2024 – Integral Ad Science Holding Corp. (Nasdaq: IAS), a leading global media measurement and optimization platform, today announced financial results for the fourth quarter and full year ended December 31, 2023. IAS Reports Fourth Quarter and Full Year 2023 Financial Results "We ended 2023 wi ...
Integral Ad Science (IAS) - 2023 Q3 - Quarterly Report
2023-11-02 20:08
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to ______________ Commission File Number: 001-40557 INTEGRAL AD SCIENCE HOLDING CORP. (Exact name of registrant as specified in its charter) (State or ...