Integral Ad Science (IAS)

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Compared to Estimates, Integral Ad Science (IAS) Q1 Earnings: A Look at Key Metrics
ZACKS· 2025-05-12 23:01
Core Insights - Integral Ad Science (IAS) reported revenue of $134.07 million for the quarter ended March 2025, reflecting a year-over-year increase of 17.1% [1] - The earnings per share (EPS) for the quarter was $0.05, a significant improvement from -$0.01 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $129.66 million by 3.40%, while the EPS surpassed the consensus estimate of $0.03 by 66.67% [1] Revenue Breakdown - Optimization revenue reached $64.81 million, exceeding the average estimate of $60.56 million by four analysts, marking a year-over-year increase of 23.4% [4] - Publisher revenue was reported at $20.89 million, surpassing the average estimate of $19.30 million, with a year-over-year growth of 32.2% [4] - Measurement revenue totaled $48.37 million, slightly below the average estimate of $49.82 million, but still showing a year-over-year increase of 4.5% [4] Stock Performance - Shares of Integral Ad Science have returned +14.7% over the past month, outperforming the Zacks S&P 500 composite's +3.8% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]
Integral Ad Science (IAS) Beats Q1 Earnings and Revenue Estimates
ZACKS· 2025-05-12 22:35
分组1 - Integral Ad Science (IAS) reported quarterly earnings of $0.05 per share, exceeding the Zacks Consensus Estimate of $0.03 per share, compared to a loss of $0.01 per share a year ago, representing an earnings surprise of 66.67% [1] - The company posted revenues of $134.07 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.40%, and compared to year-ago revenues of $114.53 million [2] - IAS has surpassed consensus EPS estimates three times over the last four quarters, indicating a positive trend in earnings performance [2] 分组2 - The stock has underperformed, losing about 26.1% since the beginning of the year, while the S&P 500 declined by only 3.8% [3] - The current consensus EPS estimate for the coming quarter is $0.06 on revenues of $143.42 million, and for the current fiscal year, it is $0.28 on revenues of $592 million [7] - The Advertising and Marketing industry, to which IAS belongs, is currently in the top 40% of Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]
Integral Ad Science (IAS) - 2025 Q1 - Earnings Call Transcript
2025-05-12 22:02
Financial Data and Key Metrics Changes - The company reported a 17% year-over-year revenue growth in Q1 2025, exceeding the prior outlook of 13% [6][24] - Adjusted EBITDA for Q1 was $41.5 million, representing a 31% margin, an increase from 29% in the prior year [24][30] - Net income for Q1 was $8 million, or $0.05 per share, compared to a net loss of $1.3 million, or $0.01 per share, in Q1 2024 [30] Business Line Data and Key Metrics Changes - Optimization revenue increased by 24% to $64.8 million, driven by sectors such as financial services, retail, and travel [25][27] - Measurement revenue grew by 4% to $48.4 million, with social media revenue increasing by 15% [26][27] - Publisher revenue rose by 33% to $20.9 million, attributed to the adoption of new Publica products [28] Market Data and Key Metrics Changes - Revenue outside of The Americas increased by 18% to $42.7 million, representing 32% of total revenue [29] - The company achieved a net revenue retention (NRR) of 109%, up from 107% in the previous quarter [30] Company Strategy and Development Direction - The company is focusing on three priorities for its 2025 product roadmap: performance, reach, and innovation [8][22] - There is a strong emphasis on AI-backed technology and expanding partnerships across various platforms [7][11] - The company is investing in mid-market strategies, targeting performance-based marketers with streamlined solutions [14][68] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit profitable growth for both Q2 and the full year 2025 [8][32] - The current macroeconomic environment is influencing budget shifts from measurement to optimization, reflecting a focus on efficiency and ROI [84][85] - The company is optimistic about its growth in China, with ongoing alpha testing and a strong pipeline of global brands [99] Other Important Information - The company is expanding its reach in emerging markets and investing in automation to simplify product activation for mid-market clients [68][130] - The company has secured several new partnerships and renewals, enhancing its position in key verticals [20][21] Q&A Session Summary Question: Can you discuss advertiser demand in the current digital advertising market? - Management noted that the focus on performance is driving demand, with a 24% growth in optimization reflecting the value offered to brands [48] Question: Is the open web measurement business still an onboarding point for new clients? - Management indicated that there is softness in open web display, but social measurement growth is strong, with a shift in budgets towards optimization [51] Question: What are the expectations for second quarter growth by discipline? - Management anticipates double-digit growth in total advertiser revenue and optimization, with single-digit growth in measurement [56] Question: Can you elaborate on the mid-market strategy? - The mid-market strategy focuses on performance-based marketers, with investments in automation and a dedicated sales team to drive growth [68][130] Question: How is the market responding to pre-bid optimization tools? - The adoption rate for pre-bid social optimization is in line with expectations, with advertisers reporting improved performance and ROI [91] Question: What is the outlook for the company's growth in China? - The company is pleased with the interest and engagement in China, with plans to continue alpha testing and expanding its presence [99]
Integral Ad Science (IAS) - 2025 Q1 - Earnings Call Transcript
2025-05-12 22:00
Financial Data and Key Metrics Changes - The company reported a 17% year-over-year revenue growth in Q1 2025, exceeding the prior outlook of 13% [5][24] - Adjusted EBITDA for Q1 was $41.5 million, with a margin of 31%, an increase from 29% in the prior year [6][29] - Net income for Q1 was $8 million, or $0.05 per share, compared to a net loss of $1.3 million, or $0.01 per share, in Q1 2024 [29] Business Line Data and Key Metrics Changes - Optimization revenue increased by 24% to $64.8 million, driven by verticals such as financial services, retail, and travel [25] - Measurement revenue grew by 4% to $48.4 million, with social media revenue increasing by 15% [26] - Publisher revenue rose by 33% to $20.9 million, attributed to the adoption of new Publica products [27] Market Data and Key Metrics Changes - Revenue outside of The Americas increased by 18% to $42.7 million, representing 32% of total revenue [28] - Social media accounted for 58% of measurement revenue and 21% of total revenue in Q1 [26] - Video revenue increased by 14%, driven by growth in social media [27] Company Strategy and Development Direction - The company is focusing on three priorities for its 2025 product roadmap: performance, reach, and innovation [7][22] - A strategic emphasis on AI-backed technology and partnerships is being leveraged to enhance product offerings and customer value [6][16] - The company is expanding its reach in mid-market segments and investing in automation to simplify product activation for these clients [14][70] Management's Comments on Operating Environment and Future Outlook - Management expects double-digit profitable growth in Q2 and for the full year 2025, raising the revenue outlook based on strong Q1 performance [33][34] - The current macroeconomic environment is being closely monitored, with a focus on customer feedback regarding brand spend and product value [31][87] - The company is optimistic about its growth trajectory, particularly in performance-oriented solutions amid a competitive digital advertising landscape [48][49] Other Important Information - The company is investing in growing media channels, including audio and gaming, with new partnerships and product launches [15][105] - The company has secured several new wins and renewals in key verticals, reinforcing its leadership in the luxury goods sector [20][21] Q&A Session Summary Question: Can you discuss advertiser demand in the current digital advertising market? - Management noted that the focus on performance-oriented solutions is driving demand, with a 24% growth in optimization reflecting the value offered to brands [48][49] Question: How is the open web measurement business performing? - There is softness in the open web display business, but social measurement growth remains strong at 15% [51][52] Question: What are the expectations for second quarter growth by discipline? - Anticipated double-digit growth in total advertiser revenue, with optimization growth expected to be below Q1 levels [56][58] Question: Can you elaborate on the mid-market strategy? - The mid-market strategy focuses on performance-based marketers, with investments in automation and a dedicated sales team to drive growth [70][132] Question: How is the company leveraging AI in its products? - AI is integral to the company's operations, enhancing product performance and driving measurable outcomes for customers [16][106]
Integral Ad Science (IAS) - 2025 Q1 - Earnings Call Presentation
2025-05-12 20:28
Financial Performance - Q1 2025 revenue reached $134.1 million, a 17% year-over-year increase[10] - The company's 2024 revenue was $530.1 million, representing a 12% year-over-year growth[10] - Adjusted EBITDA for Q1 2025 was $41.5 million, resulting in a 31% margin[10] - The adjusted EBITDA margin in 2024 was 36%[10] Business Metrics - The company's net revenue retention rate is 109%[10] - Large advertising customers, numbering 239, constitute 84% of the company's revenue mix[10] - Marketer revenue accounts for 84% of the revenue mix, while publisher revenue accounts for 16%[10] Market Opportunity - U S programmatic digital display ad spending is expected to grow from $159 billion in 2024 to $202 billion in 2026[17] - U S CTV ad spend is expected to grow 61% from $33 billion in 2025 to over $53 billion in 2029[17] - Global social media ad sales are expected to reach $244 billion in 2025[46]
Integral Ad Science (IAS) - 2025 Q1 - Quarterly Report
2025-05-12 20:17
Part I [Condensed Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) The company reported a 17% year-over-year revenue increase to **$134.1 million** and swung to a net income of **$8.0 million** from a net loss of **$1.3 million** in the prior-year period Condensed Consolidated Statements of Operations (Q1 2025 vs Q1 2024) | (IN THOUSANDS, EXCEPT PER SHARE DATA) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Revenue** | **$134,066** | **$114,530** | | Operating income | $11,451 | $537 | | **Net income (loss)** | **$7,993** | **$(1,255)** | | Net income (loss) per share – diluted | $0.05 | $(0.01) | Condensed Consolidated Balance Sheets Highlights | (IN THOUSANDS) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $59,120 | $84,469 | | Total current assets | $238,342 | $254,457 | | Total assets | $1,132,352 | $1,151,571 | | Long-term debt, net | $14,305 | $34,189 | | Total liabilities | $97,326 | $143,560 | | Total stockholders' equity | $1,035,026 | $1,008,011 | Revenue by Channel (Q1 2025 vs Q1 2024) | (IN THOUSANDS) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Optimization revenue | $64,807 | $52,461 | | Measurement revenue | $48,371 | $46,315 | | Publisher revenue | $20,888 | $15,754 | | **Total revenue** | **$134,066** | **$114,530** | - Net cash provided by operating activities was **$3.5 million**, a significant improvement from a net cash use of **($1.1 million)** in Q1 2024, with **$18.8 million** used in financing activities primarily for a **$20.0 million** repayment of long-term debt[17](index=17&type=chunk)[171](index=171&type=chunk) - Subsequent to the quarter's end, the company granted RSUs and MSUs with aggregate grant date fair values of **$36.3 million** and **$27.6 million**, respectively, to employees and certain executive officers[100](index=100&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the **17%** year-over-year revenue growth to strong performance in optimization (up **24%**) and publisher (up **33%**) revenues, achieving an operating income of **$11.5 million** and an Adjusted EBITDA of **$41.5 million** Key Performance Indicators | Metric | As of March 31, 2025 | As of March 31, 2024 | | :--- | :--- | :--- | | Net revenue retention of advertising customers | 109% | 113% | | Total number of large advertising customers | 239 | 227 | - Revenue growth was primarily driven by a **24%** increase in optimization revenue (**$12.3 million**) and a **33%** increase in publisher revenue (**$5.1 million**), while measurement revenue saw modest growth of **4%** (**$2.1 million**)[143](index=143&type=chunk)[144](index=144&type=chunk) - Operating expenses increased by **8%** year-over-year, slower than revenue growth, with the largest increase in General & Administrative expenses, which rose **23%** (**$4.8 million**) due to higher professional services and compensation costs[141](index=141&type=chunk)[148](index=148&type=chunk) Adjusted EBITDA Reconciliation (Non-GAAP) | (IN THOUSANDS) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net income (loss) | $7,993 | $(1,255) | | Adjustments (Depreciation, Stock Comp, etc.) | $33,522 | $34,305 | | **Adjusted EBITDA** | **$41,515** | **$33,050** | | **Adjusted EBITDA margin** | **31%** | **29%** | - The company's principal sources of liquidity are **$59.1 million** in cash and cash equivalents and an available revolving credit facility, with non-cancelable purchase commitments of approximately **$363.3 million** through 2029, primarily for hosting services[157](index=157&type=chunk)[158](index=158&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company states that its market risk exposure, primarily from potential changes in inflation and interest rates, has not materially changed from the disclosures in its 2024 Annual Report on Form 10-K - There have been no material changes to market risks since the year-ended December 31, 2024[179](index=179&type=chunk) [Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and Interim CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of March 31, 2025 - The Chief Executive Officer and Interim Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[179](index=179&type=chunk) - There were no changes in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal controls[180](index=180&type=chunk) Part II [Legal Proceedings](index=35&type=section&id=Item%201.%20Legal%20Proceedings) The company reports that it is not currently involved in any legal proceedings that would be expected to have a material adverse effect on its business, financial condition, or operating results - As of the report date, the company is not a party to any legal proceeding that would, individually or in the aggregate, have a material adverse effect on its business[184](index=184&type=chunk) [Risk Factors](index=35&type=section&id=Item%201A.%20Risk%20Factors) This section directs readers to the company's Annual Report on Form 10-K for the year ended December 31, 2024, for a comprehensive discussion of material risk factors - For a discussion of material risk factors, the report refers to Part 1, Item 1A "Risk Factors" in the Annual Report on Form 10-K for the year ended December 31, 2024[185](index=185&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=35&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds during the quarter - None reported for the period[186](index=186&type=chunk) [Defaults Upon Senior Securities](index=35&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon its senior securities - None reported[187](index=187&type=chunk) [Mine Safety Disclosures](index=35&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[187](index=187&type=chunk) [Other Information](index=35&type=section&id=Item%205.%20Other%20Information) The company disclosed that no directors or officers adopted or terminated a Rule 10b5-1 trading arrangement in the first quarter - No directors or officers adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the quarter ended March 31, 2025[188](index=188&type=chunk) - On May 7, 2025, the company amended the employment agreement of CEO Lisa Utzschneider, extending the term for salary continuation and COBRA coverage to **18 months** upon a termination by the company without "cause" or a resignation by her for "good reason"[189](index=189&type=chunk) [Exhibits](index=36&type=section&id=Item%206.%20Exhibits) This section provides a list of all exhibits filed with the quarterly report, including certifications by the CEO and Interim CFO, and an amendment to the CEO's employment agreement - The list of exhibits includes the CEO and Interim CFO certifications (Exhibits 31.1, 31.2, 32.1, 32.2) and the amendment to the CEO's employment agreement (Exhibit 10.3)[192](index=192&type=chunk)
Integral Ad Science (IAS) - 2025 Q1 - Quarterly Results
2025-05-12 20:08
IAS Reports First Quarter 2025 Financial Results Total revenue increased 17% to $134.1 million Net income of $8.0 million at a 6% margin; adjusted EBITDA of $41.5 million at a 31% margin Raises midpoint of full-year revenue and adjusted EBITDA outlook • TikTok Social Optimization Expansion - In April, IAS announced an expansion of Social Optimization for TikTok to include pre-bid Video Level Exclusion Lists. Paired with TikTok's Inventory Filter, advertisers applying pre-bid Video Level Exclusion Lists bene ...
Seeking Clues to Integral Ad Science (IAS) Q1 Earnings? A Peek Into Wall Street Projections for Key Metrics
ZACKS· 2025-05-08 14:21
In its upcoming report, Integral Ad Science (IAS) is predicted by Wall Street analysts to post quarterly earnings of $0.03 per share, reflecting an increase of 400% compared to the same period last year. Revenues are forecasted to be $129.66 million, representing a year-over-year increase of 13.2%.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timefram ...
IAS Introduces Pre-Screen Brand Safety and Suitability Solution for Google Search Partner Network
Prnewswire· 2025-05-08 12:00
Advertisers Can Now Benefit from Curated Pre-Screen Exclusion Lists across Google's Search Partner Network InventoryNEW YORK, May 8, 2025 /PRNewswire/ -- Integral Ad Science (Nasdaq: IAS), a leading global media measurement and optimization platform, today announced the launch of IAS Pre-Screen Brand Safety Solution for Search Partner Network (SPN). IAS will now drive performance and protection across SPN by providing advertisers with greater control over their advertising investments before their ads are s ...
IAS Expands Social Optimization for TikTok with Launch of Pre-Bid Video Exclusions
Prnewswire· 2025-04-14 14:00
Core Insights - Integral Ad Science (IAS) has expanded its Social Optimization for TikTok by introducing pre-bid Video Exclusion Lists, allowing advertisers enhanced control over their ad placements to preserve brand equity and improve performance [1][2][4] Group 1: Product Features - The pre-bid Video Exclusion Lists enable advertisers to implement granular exclusions tailored to brand-specific needs, enhancing suitability and contextual requirements for ad placements on TikTok [2][6] - IAS's AI-driven Total Media Quality (TMQ) can be combined with Social Optimization for post-bid measurement, providing comprehensive brand safety, viewability, and invalid traffic detection across over 75 markets in more than 30 languages [3][6] - The new features allow advertisers to avoid unsuitable content, create custom suitability profiles, and ensure a comprehensive global solution for their advertising strategies on TikTok [6] Group 2: Strategic Partnerships - The partnership between IAS and TikTok aims to innovate beyond traditional suitability standards, empowering advertisers with greater control and confidence in their investments [4][6] - This expansion builds on IAS's ongoing collaboration with TikTok, which began with the launch of a pre-bid optimization product in 2021 and has since included enhancements to Total Media Quality [4][5]