Core Insights - The company reported a 16% increase in total revenue for the second quarter, reaching $149 million, with a 35% adjusted EBITDA margin, exceeding expectations [4][14] - The company raised its full-year revenue and adjusted EBITDA outlook based on strong second-quarter performance [22][23] Product and Service Developments - The introduction of Quality Sync (QSP) has enhanced transparency for advertisers in CTV ad buys, leading to improved efficiency and return on ad spend [1][2] - The company expanded its product offerings, including the Vault for CTV ad auctions and enhanced measurement solutions for social media platforms [2][10] Market Performance - CTV is identified as the fastest-growing channel for media spend, with significant contributions from publisher performance products [3] - Social media revenue grew by 22%, representing 60% of measurement revenue, driven by increased spending from large accounts [17] Customer Acquisition and Retention - The company secured several competitive wins, including partnerships with major brands in the apparel and automotive sectors, highlighting the effectiveness of its measurement and optimization solutions [5][6][7] - The number of large advertising customers increased to 240, with revenue from these customers accounting for 87% of total advertising revenue [20] International Growth - International revenue grew by 8% in the second quarter, representing 30% of total revenue, with strong adoption of products in EMEA and APAC regions [18][38] - The company is expanding its presence in China, targeting luxury and CPG brands with its verification solutions [39] Financial Metrics - Adjusted EBITDA increased by 12% to $52 million, reflecting higher revenue and operational efficiencies [19] - The company maintained a gross margin of 77% and generated $55 million in operating cash flow during the quarter [21] Strategic Partnerships - New partnerships with Lyft and Snap were announced to enhance measurement capabilities and provide advertisers with better insights [8][9] - The company is integrating its pre-bid avoidance and targeting within StackAdapt's DSP to optimize impressions for brands [10]

Core Insights - Integral Ad Science (IAS) reported a total revenue increase of 16% to $154.4 million for Q3 2025, compared to $133.5 million in the same period last year [5] - The company achieved a net income of $7.0 million, reflecting a net income margin of 5%, down from $16.1 million and a margin of 12% in the prior-year period [5][13] - Adjusted EBITDA rose by 9% to $55.3 million, with an adjusted EBITDA margin of 36% for the third quarter of 2025 [5][13] Financial Performance - Total revenue for Q3 2025 was $154.4 million, a 16% increase from $133.5 million in Q3 2024 [5] - Optimization revenue increased by 21% to $73.7 million, while measurement revenue grew by 8% to $57.1 million [5] - Publisher revenue also saw a 21% increase, reaching $23.5 million [5] - Gross profit was $118.8 million, a 12% increase from $106.2 million, resulting in a gross profit margin of 77% [5] Business Developments - IAS announced a definitive agreement to be acquired by Novacap in an all-cash transaction, which is expected to close by November 2025 [3][2] - The company will not host a quarterly earnings conference call or provide a financial outlook due to the acquisition announcement [3] - Recent partnerships include expanding Total Media Quality (TMQ) for Meta Threads and launching new Brand Safety Features for TikTok Pangle [5][21] Balance Sheet Highlights - As of September 30, 2025, IAS reported cash and cash equivalents of $129.2 million, up from $84.5 million at the end of 2024 [4] - Total assets increased to $1,207.8 million from $1,151.6 million at the end of 2024 [4] - Total liabilities decreased to $102.9 million from $143.6 million [6] Stockholder Equity - Total stockholders' equity rose to $1,105.0 million as of September 30, 2025, compared to $1,008.0 million at the end of 2024 [6] - The number of shares outstanding increased to 166.9 million from 162.9 million [6]

Core Insights - Integral Ad Science (IAS) has integrated with TikTok Pangle to enhance brand safety features, viewability, and invalid traffic measurement for advertisers on the TikTok ad network [1][3]. Group 1: Brand Safety and Measurement Features - The new brand safety features provide advertisers with independent and trusted third-party measurement across TikTok's offerings, including Pangle's extensive app network [3][8]. - IAS's Post-Bid Measurement for TikTok Pangle allows global advertisers to utilize AI-driven Total Media Quality (TMQ) for post-bid measurement, enhancing their advertising strategies [2][4]. Group 2: Partnership and Historical Context - This announcement builds on the existing partnership between IAS and TikTok, which began with a pre-bid optimization product launched in 2021, and was expanded in April to include pre-bid Video Exclusion Lists [5][6]. - IAS aims to provide brands with greater transparency in their digital media spending, enabling them to scale campaigns confidently [3][6]. Group 3: Global Reach and Impact - TikTok Pangle encompasses over 380,000 global apps, reaching a daily active user base of 2.9 billion, thereby offering significant advertising inventory across various regions [2][8]. - The integration supports advertisers in ensuring their ads appear in brand-safe environments, adhering to industry standards [8].

Financial Data and Key Metrics Changes - Revenue in Q4 2024 increased 14% to $153 million, with a 40% adjusted EBITDA margin [6][37] - Full year 2024 revenue grew 12% to $530.1 million, achieving a 36% adjusted EBITDA margin [6][38] - Adjusted EBITDA for Q4 increased 29% to $61.4 million, with a margin increase from 35% to 40% year-over-year [44][49] - Net income for Q4 was $15.3 million or $0.09 per share, compared to $10.2 million or $0.06 per share in Q4 2023 [45][49] Business Line Data and Key Metrics Changes - Optimization revenue grew 11% to $70.6 million in Q4 [39] - Measurement revenue increased 12% to $59.1 million, with social media revenue growth at 25% [40] - Publisher revenue rose 30% to $23.4 million, driven by new product adoption and increased political spend [41] - International revenue grew 13% to $49 million, representing 32% of total revenue [42] Market Data and Key Metrics Changes - 32% of Q4 revenue came from markets outside of the Americas, with 45% of measurement revenue from international sources [17][42] - The US CTV market is projected to exceed $47 billion by 2028, indicating significant growth potential [15] Company Strategy and Development Direction - The company aims for continued double-digit growth in 2025, focusing on performance, reach expansion, and innovation [7][27] - Plans to expand into China and enhance operations in key APAC markets, unlocking significant digital ad spend opportunities [18][69] - The introduction of new capabilities in measurement and optimization products is expected to drive future growth [7][27] Management's Comments on Operating Environment and Future Outlook - Management noted a positive impact from political spending on the publisher side, while advertiser spending improved in retail and CPG sectors [104] - The shift towards real-time bidding in CTV is viewed as a tailwind for the business, with strong growth in publisher performance [105][106] - The company expects to deliver double-digit profitable growth in 2025, supported by ongoing investments in differentiated products [33][50] Other Important Information - The appointment of Jill Puttman as interim CFO was announced, bringing extensive finance experience to the role [34][83] - The company reduced long-term debt by $30 million to $35 million during the quarter [46] Q&A Session Summary Question: Impact of political spending and CTV shift - Political spending had limited impact on advertiser business but benefited the publisher side, with strong growth in retail and CPG [104] - The shift to real-time bidding in CTV is seen as beneficial, with a 30% year-over-year growth in the segment [105][106] Question: Pricing dynamics and measurement growth - The company experienced competitive pricing dynamics during RFPs, with strong adoption of total media quality (TMQ) across social platforms [110][111] - The pre-bid product on Meta has shown a 71% reduction in wasted ad spend, indicating strong early adoption [115] Question: Long-term visibility with pre-bid and post-bid products - The focus on performance and linking media quality signals with cost data enhances revenue forecasting and visibility [124][125] - The company is seeing strong adoption of pre-bid products, which is expected to improve overall business visibility [124] Question: Growth outlook by segment - Total advertiser revenue is expected to have double-digit growth, with measurement anticipated to see single-digit growth initially [128]