Total revenue increased 14% to $129.0 million
Net income of $7.7
million at a 6% margin; adjusted EBITDA increased to
$46.2 million at a 36%
margin
Raises full year financial guidance on
positive second quarter results and strong second half
outlook
NEW
YORK, Aug. 1, 2024 /PRNewswire/ -- Integral
Ad Science (Nasdaq: IAS), a leading global media measurement and
optimization platform, today announced financial results for the
second quarter ended June 30,
2024.
"We are excited to report double-digit revenue growth in all of
our businesses in the second quarter reflecting strong customer
adoption of our leading AI-backed products across formats and
channels," said Lisa Utzschneider,
CEO of IAS. "Measurement revenue grew 17% with a 34% increase in
social media revenue, optimization revenue increased 11%, and
publisher revenue increased 12%. IAS is leading the way with trust,
transparency, and innovation to provide actionable results and
superior returns for global marketers. We are raising our full year
outlook and remain focused on delivering sustainable, profitable
growth."
Second Quarter 2024 Financial Highlights
- Total revenue was $129.0
million, a 14% increase compared to $113.7 million in the prior-year period.
- Optimization revenue was $58.5
million, an 11% increase compared to $52.8 million in the prior-year period.
- Measurement revenue was $52.7
million, a 17% increase compared to $44.9 million in the prior-year period.
- Publisher revenue was $17.8
million, a 12% increase compared to $15.9 million in the prior-year period.
- International revenue, excluding the Americas, was
$40.1 million, a 16% increase
compared to $34.7 million in the
prior-year period, or 31% of total revenue for the second quarter
of 2024.
- Gross profit was $101.9
million, a 13% increase compared to $89.8 million in the prior-year period. Gross
profit margin was 79% for the second quarter of 2024.
- Net income was $7.7
million, or $0.05 per share,
unchanged from the prior-year period. Net income margin was 6% for
the second quarter of 2024. Net income for the second quarter of
2023 includes $23.5 million of
stock-based compensation expense related to return-target options
as well as an income tax benefit of $29.1
million in the period.
- Adjusted EBITDA* increased to $46.2 million, a 24% increase compared to
$37.4 million in the prior-year
period. Adjusted EBITDA* margin was 36% for the second quarter of
2024.
- Cash and cash equivalents were $70.6 million at June 30,
2024.
Recent Business Highlights
- YouTube Brand Safety and Suitability Measurement Expansion
– In June, IAS expanded its brand safety and suitability
measurement product for YouTube to include reporting for
Performance Max and Demand Gen campaigns on Google Ads.
- Reddit Partnership – In June, IAS announced a
partnership with Reddit to provide advertisers with the confidence
to scale their campaigns across Reddit through IAS's AI-driven
Total Media Quality (TMQ) product suite.
- Pinterest Partnership – In June, IAS announced a
partnership with Pinterest to provide global advertisers with
greater transparency into campaigns across Pinterest's in-app feed
through IAS's AI-driven Total Media Quality (TMQ) brand safety
product.
- Amazon Expanded Global Measurement – In May, IAS
launched its expanded reporting and insights for Amazon DSP media
buys. Through a server-to-server (S2S) integration on Amazon DSP,
advertisers will now have access to measurement coverage for
campaigns across Amazon custom audiences and Twitch inventory.
IAS's solutions available to advertisers in Amazon DSP include
viewability, invalid traffic (IVT), and brand safety and
suitability.
- Lunio Partnership – In June, IAS teamed up with Lunio in
a first-to-market partnership to provide post-click measurement and
protection across search, social, and display networks. The
partnership builds on IAS's existing ad fraud
detection and mitigation capabilities, giving marketers the most
comprehensive invalid traffic (IVT) protection in the
industry.
- Sincera Partnership – In June, IAS and Sincera announced
a multi-year, strategic partnership to enhance AI-driven
measurement and optimization solutions to drive omnichannel media
quality. The partnership provides IAS with unique metadata to
enhance media quality and drive unique solutions across channels
including the open web, CTV, in-app, and social.
- Deepfake Detection Availability – In June, IAS announced
availability in Beta testing of the industry's first deepfake
measurement offering, enabling advertisers to avoid running
adjacent to deepfake content as part of the Global Alliance for
Responsible Media (GARM)-defined Brand Safety Floor and Suitability
Framework misinformation category.
- Election Lab Launch – In May, IAS launched the IAS
Election Lab which aims to provide strategic guidance and
actionable insights for advertisers during the global election
season.
- ISO 27001 Certification – In May, IAS achieved ISO
27001:2022 certification for its Information Security Management
System. ISO/IEC 27001 is the global standard for information
security management systems.
Financial Outlook
"Our second quarter results further validate our scalable and
profitable business model. We are driving top-line growth and
investing in strategic growth initiatives while maintaining a
strong financial position with an adjusted EBITDA margin of 36%,
healthy cash flows, and low debt," said Tania Secor, CFO of IAS. "We are raising our
2024 outlook based on our second quarter performance and our
expectations for increased revenue growth in the second half of the
year."
IAS is introducing the following financial outlook for the third
quarter of 2024 and increasing its full year 2024 revenue and
adjusted EBITDA outlook:
Third Quarter Ending September 30,
2024:
- Total revenue of $137
million to $139 million
- Adjusted EBITDA* of $48
million to $50 million
Year Ending December 31,
2024:
- Total revenue of $538
million to $544 million
- Adjusted EBITDA* of $180
million to $184 million
* See "Supplemental Disclosure Regarding Non-GAAP Financial
Information" section herein for an explanation of these measures.
IAS is unable to provide a reconciliation for forward-looking
guidance of adjusted EBITDA and corresponding margin to net income
(loss), the most closely comparable GAAP measures without
unreasonable effort, because certain material reconciling items,
such as depreciation and amortization, interest expense, income tax
expense (benefit) and acquisition, restructuring and integration
expenses, cannot be estimated due to factors outside of IAS's
control and could have a material impact on the reported results.
However, IAS estimates stock-based compensation expense for the
third quarter of 2024 in the range of $16
million to $17 million and for
the full year 2024 in the range of $63
million to $65 million.
|
INTEGRAL AD SCIENCE
HOLDING CORP.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
|
|
|
(IN THOUSANDS,
EXCEPT SHARE DATA)
|
June 30,
2024
|
|
December 31,
2023
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
70,603
|
|
$ 124,759
|
|
Restricted
cash
|
275
|
|
54
|
|
Accounts receivable,
net
|
75,233
|
|
74,609
|
|
Unbilled
receivables
|
45,320
|
|
46,548
|
|
Prepaid expenses and
other current assets
|
38,251
|
|
18,959
|
|
Total current
assets
|
229,682
|
|
264,929
|
|
Property and equipment,
net
|
4,076
|
|
3,769
|
|
Internal use software,
net
|
47,578
|
|
40,301
|
|
Intangible assets,
net
|
159,825
|
|
178,908
|
|
Goodwill
|
674,350
|
|
675,282
|
|
Operating lease
right-of-use assets
|
21,223
|
|
21,668
|
|
Deferred tax asset,
net
|
2,438
|
|
2,465
|
|
Other long-term
assets
|
4,950
|
|
4,402
|
|
Total
assets
|
$
1,144,122
|
|
$
1,191,724
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable and
accrued expenses
|
$
51,096
|
|
$
72,232
|
|
Operating lease
liability
|
9,483
|
|
9,435
|
|
Due to related
party
|
—
|
|
121
|
|
Deferred
revenue
|
558
|
|
682
|
|
Total current
liabilities
|
61,137
|
|
82,470
|
|
Deferred tax liability,
net
|
16,884
|
|
20,367
|
|
Long-term
debt
|
93,957
|
|
153,725
|
|
Operating lease
liabilities, non-current
|
18,397
|
|
19,523
|
|
Other long-term
liabilities
|
6,171
|
|
6,183
|
|
Total
liabilities
|
196,546
|
|
282,268
|
|
Commitments and
Contingencies (Note 13)
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
Preferred Stock, $0.001
par value, 50,000,000 shares authorized at June 30, 2024; 0
shares
issued and outstanding at June 30, 2024 and December 31,
2023.
|
—
|
|
—
|
|
Common Stock, $0.001
par value, 500,000,000 shares authorized, 160,786,740 and
158,757,620 shares issued and outstanding at June 30, 2024 and
December 31, 2023, respectively.
|
161
|
|
159
|
|
Additional
paid-in-capital
|
934,194
|
|
901,259
|
|
Accumulated other
comprehensive loss
|
(2,168)
|
|
(916)
|
|
Retained
earnings
|
15,389
|
|
8,954
|
|
Total stockholders'
equity
|
947,576
|
|
909,456
|
|
Total liabilities and
stockholders' equity
|
$
1,144,122
|
|
$
1,191,724
|
|
INTEGRAL AD SCIENCE
HOLDING CORP.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(UNAUDITED)
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
(IN THOUSANDS,
EXCEPT SHARE AND PER SHARE DATA)
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Revenue
|
|
$
129,005
|
|
$
113,651
|
|
$
243,535
|
|
$
219,743
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Cost of revenue
(excluding depreciation and amortization shown below)
|
|
27,094
|
|
23,819
|
|
53,255
|
|
45,501
|
|
Sales and
marketing
|
|
29,572
|
|
31,702
|
|
61,397
|
|
57,962
|
|
Technology and
development
|
|
17,487
|
|
21,110
|
|
35,465
|
|
36,639
|
|
General and
administrative
|
|
24,679
|
|
42,339
|
|
46,059
|
|
63,062
|
|
Depreciation and
amortization
|
|
15,709
|
|
13,521
|
|
30,789
|
|
26,346
|
|
Foreign exchange loss
(gain), net
|
|
315
|
|
(631)
|
|
1,884
|
|
(1,147)
|
|
Total operating
expenses
|
|
114,856
|
|
131,860
|
|
228,849
|
|
228,363
|
|
Operating income
(loss)
|
|
14,149
|
|
(18,209)
|
|
14,686
|
|
(8,620)
|
|
Interest expense,
net
|
|
(1,536)
|
|
(3,221)
|
|
(3,462)
|
|
(6,638)
|
|
Net income (loss)
before income taxes
|
|
12,613
|
|
(21,430)
|
|
11,224
|
|
(15,258)
|
|
(Provision) benefit for
income taxes
|
|
(4,923)
|
|
29,107
|
|
(4,789)
|
|
26,081
|
|
Net income
|
|
$
7,690
|
|
$
7,677
|
|
$
6,435
|
|
$
10,823
|
|
Net income per share -
basic and diluted
|
|
$
0.05
|
|
$
0.05
|
|
$
0.04
|
|
$
0.07
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
160,502,795
|
|
155,425,264
|
|
159,954,926
|
|
155,267,531
|
|
Diluted
|
|
163,748,596
|
|
162,634,310
|
|
164,198,233
|
|
160,850,434
|
|
Other comprehensive
income:
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
(193)
|
|
(221)
|
|
(1,252)
|
|
928
|
|
Total comprehensive
income
|
|
$
7,497
|
|
$
7,456
|
|
$
5,183
|
|
$
11,751
|
|
Stock-Based
Compensation
(UNAUDITED)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
(IN
THOUSANDS)
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
Cost of
revenue
|
$
82
|
|
$
126
|
|
$
206
|
|
$
210
|
|
|
Sales and
marketing
|
3,435
|
|
8,258
|
|
9,173
|
|
12,145
|
|
|
Technology and
development
|
4,799
|
|
7,362
|
|
9,198
|
|
10,532
|
|
|
General and
administrative
|
6,688
|
|
24,689
|
|
12,165
|
|
28,854
|
|
|
Total stock-based
compensation
|
$
15,004
|
|
$
40,4351
|
|
$
30,742
|
|
$
51,741
|
1
|
|
|
|
1
|
During the three and
six months ended June 30, 2023, with the filing of a "shelf"
registration statement on Form S-3, the market condition and the
implied performance condition relating to the Return-Target Options
were deemed to be probable and the Company recognized $23.5 million
of stock-based compensation expense for such options in both the
three and six months ended June 30, 2023. This is broken out as
follows; $2.1 million of sales and marketing expense, $2.6 million
of technology and development expense and $18.8 million of general
and administrative expense.
|
|
INTEGRAL AD SCIENCE
HOLDING CORP.
CONDENSED
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS'
EQUITY
(UNAUDITED)
|
|
|
Three Months Ended
June 30, 2024
|
|
|
|
Common
Stock
|
|
|
|
|
|
|
|
|
|
(IN THOUSANDS,
EXCEPT SHARES)
|
|
Shares
|
|
Amount
|
|
Additional
paid-in
capital
|
|
Accumulated
other
comprehensive
loss
|
|
Retained
earnings
|
|
Total
stockholders'
equity
|
|
Balance, March 31,
2024
|
|
159,761,454
|
|
$
160
|
|
$
919,192
|
|
$
(1,975)
|
|
$
7,699
|
|
$
925,076
|
|
RSUs and MSUs
vested
|
|
1,025,286
|
|
1
|
|
—
|
|
—
|
|
—
|
|
1
|
|
Stock-based
compensation
|
|
—
|
|
—
|
|
15,002
|
|
—
|
|
—
|
|
15,002
|
|
Foreign currency
translation adjustment
|
|
—
|
|
—
|
|
—
|
|
(193)
|
|
—
|
|
(193)
|
|
Net income
|
|
—
|
|
—
|
|
—
|
|
—
|
|
7,690
|
|
7,690
|
|
Balance, June 30,
2024
|
|
160,786,740
|
|
$
161
|
|
$
934,194
|
|
$
(2,168)
|
|
$
15,389
|
|
$
947,576
|
|
|
|
Six Months Ended
June 30, 2024
|
|
|
|
Common
Stock
|
|
|
|
|
|
|
|
|
|
(IN THOUSANDS,
EXCEPT SHARES)
|
|
Shares
|
|
Amount
|
|
Additional
paid-in
capital
|
|
Accumulated
other
comprehensive
loss
|
|
Retained
earnings
|
|
Total
stockholders'
equity
|
|
Balance, December
31, 2023
|
|
158,757,620
|
|
$
159
|
|
$
901,259
|
|
$
(916)
|
|
$
8,954
|
|
$
909,456
|
|
RSUs and MSUs
vested
|
|
1,831,832
|
|
2
|
|
—
|
|
—
|
|
—
|
|
2
|
|
Option
exercises
|
|
44,049
|
|
—
|
|
313
|
|
—
|
|
—
|
|
313
|
|
ESPP
purchase
|
|
153,239
|
|
—
|
|
1,895
|
|
—
|
|
—
|
|
1,895
|
|
Stock-based
compensation
|
|
—
|
|
—
|
|
30,727
|
|
—
|
|
—
|
|
30,727
|
|
Foreign currency
translation adjustment
|
|
—
|
|
—
|
|
—
|
|
(1,252)
|
|
—
|
|
(1,252)
|
|
Net income
|
|
—
|
|
—
|
|
—
|
|
—
|
|
6,435
|
|
6,435
|
|
Balance, June 30,
2024
|
|
160,786,740
|
|
$
161
|
|
$
934,194
|
|
$
(2,168)
|
|
$
15,389
|
|
$
947,576
|
|
|
|
Three Months Ended
June 30, 2023
|
|
|
|
Common
Stock
|
|
|
|
|
|
|
|
|
|
(IN THOUSANDS,
EXCEPT SHARES)
|
|
Shares
|
|
Amount
|
|
Additional
paid-in
capital
|
|
Accumulated
other
comprehensive
loss
|
|
Retained
earnings
|
|
Total
stockholders'
equity
|
|
Balance, March 31,
2023
|
|
154,811,980
|
|
$
154
|
|
$
824,498
|
|
$
(1,750)
|
|
$
4,862
|
|
$
827,764
|
|
RSUs and MSUs
vested
|
|
1,218,542
|
|
2
|
|
—
|
|
—
|
|
—
|
|
2
|
|
Option
exercises
|
|
248,553
|
|
—
|
|
2,878
|
|
—
|
|
—
|
|
2,878
|
|
Stock-based
compensation
|
|
—
|
|
—
|
|
40,114
|
|
—
|
|
—
|
|
40,114
|
|
Foreign currency
translation adjustment
|
|
—
|
|
—
|
|
—
|
|
(221)
|
|
—
|
|
(221)
|
|
Net income
|
|
—
|
|
—
|
|
—
|
|
—
|
|
7,677
|
|
7,677
|
|
Balance, June 30,
2023
|
|
156,279,075
|
|
$
156
|
|
$
867,490
|
|
$
(1,971)
|
|
$
12,539
|
|
$
878,214
|
|
|
|
Six Months Ended
June 30, 2023
|
|
|
Common
Stock
|
|
|
|
|
|
|
|
|
|
(IN THOUSANDS,
EXCEPT SHARES)
|
|
Shares
|
|
Amount
|
|
Additional
paid-in
capital
|
|
Accumulated
other
comprehensive
loss
|
|
Retained
earnings
|
|
Total
stockholders'
equity
|
|
Balance, December
31, 2022
|
|
153,990,128
|
|
$
154
|
|
$
810,186
|
|
$
(2,899)
|
|
$
775
|
|
$
808,216
|
|
RSUs and MSUs
vested
|
|
1,590,282
|
|
2
|
|
—
|
|
—
|
|
—
|
|
2
|
|
Option
exercises
|
|
587,502
|
|
—
|
|
4,993
|
|
—
|
|
—
|
|
4,993
|
|
ESPP
purchase
|
|
111,163
|
|
—
|
|
882
|
|
—
|
|
—
|
|
882
|
|
Stock-based
compensation
|
|
—
|
|
—
|
|
51,429
|
|
—
|
|
—
|
|
51,429
|
|
Foreign currency
translation adjustment
|
|
—
|
|
—
|
|
—
|
|
928
|
|
—
|
|
928
|
|
Adoption of ASC 326,
net of tax
|
|
—
|
|
—
|
|
—
|
|
—
|
|
941
|
|
941
|
|
Net income
|
|
—
|
|
—
|
|
—
|
|
—
|
|
10,823
|
|
10,823
|
|
Balance, June 30,
2023
|
|
156,279,075
|
|
$
156
|
|
$
867,490
|
|
$
(1,971)
|
|
$
12,539
|
|
$
878,214
|
|
INTEGRAL AD SCIENCE HOLDING
CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
(UNAUDITED)
|
|
|
|
Six Months Ended
June 30,
|
|
(IN
THOUSANDS)
|
|
2024
|
|
2023
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
Net income
|
|
$
6,435
|
|
$
10,823
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
|
30,789
|
|
26,346
|
|
Stock-based
compensation
|
|
30,742
|
|
51,741
|
|
Foreign currency loss
(gain), net
|
|
1,564
|
|
(1,239)
|
|
Deferred tax
benefit
|
|
(3,456)
|
|
(37,535)
|
|
Amortization of debt
issuance costs
|
|
232
|
|
232
|
|
Allowance for credit
losses
|
|
745
|
|
1,254
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Increase in accounts
receivable
|
|
(2,070)
|
|
(4,483)
|
|
Decrease in unbilled
receivables
|
|
998
|
|
2,272
|
|
(Increase) decrease in
prepaid expenses and other current assets
|
|
(19,548)
|
|
12,619
|
|
(Increase) decrease in
operating leases, net
|
|
(618)
|
|
25
|
|
(Increase) decrease in
other long-term assets
|
|
(557)
|
|
4
|
|
Decrease in accounts
payable and accrued expenses and other long-term
liabilities
|
|
(20,221)
|
|
(10,225)
|
|
(Decrease) increase in
deferred revenue
|
|
(111)
|
|
350
|
|
Decrease in due
to/from related party
|
|
(122)
|
|
(118)
|
|
Net cash provided by
operating activities
|
|
24,802
|
|
52,066
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
Purchase of property
and equipment
|
|
(1,323)
|
|
(1,810)
|
|
Development of
internal use software and other
|
|
(18,836)
|
|
(14,928)
|
|
Net cash used in
investing activities
|
|
(20,159)
|
|
(16,738)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
Proceeds from the
Revolver
|
|
—
|
|
75,000
|
|
Repayment of long-term
debt
|
|
(60,000)
|
|
(105,000)
|
|
Proceeds from exercise
of stock options
|
|
313
|
|
4,993
|
|
Cash received from
Employee Stock Purchase Program
|
|
2,213
|
|
1,409
|
|
Net cash used in
financing activities
|
|
(57,474)
|
|
(23,598)
|
|
Net (decrease) increase
in cash, cash equivalents, and restricted cash
|
|
(52,831)
|
|
11,730
|
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
|
(1,084)
|
|
(142)
|
|
Cash, cash equivalents
and restricted cash at beginning of period
|
|
127,290
|
|
89,671
|
|
Cash, cash
equivalents, and restricted cash, at end of period
|
|
$
73,375
|
|
$
101,259
|
|
Supplemental
Disclosures:
|
|
|
|
|
|
Net cash paid during
the period for:
|
|
|
|
|
|
Interest
|
|
$
3,614
|
|
$
5,862
|
|
Taxes
|
|
$
19,925
|
|
$
5,609
|
|
Non-cash investing
and financing activities:
|
|
|
|
|
|
Property and equipment
acquired included in accounts payable
|
|
$
108
|
|
$
140
|
|
Internal use software
acquired included in accounts payable
|
|
$
661
|
|
$
1,159
|
|
Lease liabilities
arising from right of use assets
|
|
$
5,278
|
|
$
3,902
|
Supplemental Disclosure Regarding Non-GAAP Financial
Information
We use supplemental measures of our performance, which are
derived from our consolidated financial information, but which are
not presented in our consolidated financial statements prepared in
accordance with GAAP. Adjusted EBITDA is the primary financial
performance measure used by management to evaluate our business and
monitor ongoing results of operations. Adjusted EBITDA is defined
as income before depreciation and amortization, stock-based
compensation, interest expense, income taxes, acquisition,
restructuring and integration costs, foreign exchange gain, net,
asset impairments, and other one-time, non-recurring costs.
Adjusted EBITDA margin represents the adjusted EBITDA for the
applicable period divided by the revenue for that period presented
in accordance with GAAP.
We use non-GAAP financial measures to supplement financial
information presented on a GAAP basis. We believe that excluding
certain items from our GAAP results allows management to better
understand our consolidated financial performance from period to
period and better project our future consolidated financial
performance as forecasts are developed at a level of detail
different from that used to prepare GAAP-based financial measures.
Moreover, we believe these non-GAAP financial measures provide our
shareholders with useful information to help them evaluate our
operating results by facilitating an enhanced understanding of our
operating performance and enabling them to make more meaningful
period-to-period comparisons. Although we believe these measures
are useful to investors and analysts for the same reasons they are
useful to management, as discussed below, these measures are not a
substitute for, or superior to, U.S. GAAP financial measures or
disclosures. Our non-GAAP financial measures may not be comparable
to similarly titled measures of other companies. Other companies,
including companies in our industry, may calculate non-GAAP
financial measures differently than we do, limiting the usefulness
of those measures for comparative purposes.
Reconciliations of historical adjusted EBITDA to its most
directly comparable GAAP financial measure, net income/loss, are
presented below. We encourage you to review the reconciliations in
conjunction with the presentation of the non-GAAP financial
measures for each of the periods presented. In future fiscal
periods, we may exclude such items and may incur income and
expenses similar to these excluded items.
|
Reconciliation of
Adjusted EBITDA
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
(IN THOUSANDS,
EXCEPT PERCENTAGES)
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net income
|
|
$
7,690
|
|
$
7,677
|
|
$
6,435
|
|
$ 10,823
|
|
Depreciation and
amortization
|
|
15,709
|
|
13,521
|
|
30,789
|
|
26,346
|
|
Stock-based
compensation
|
|
15,004
|
|
40,435
|
|
30,742
|
|
51,741
|
|
Interest expense,
net
|
|
1,536
|
|
3,221
|
|
3,462
|
|
6,638
|
|
Provision (benefit) for
income taxes
|
|
4,923
|
|
(29,107)
|
|
4,789
|
|
(26,081)
|
|
Acquisition,
restructuring and integration costs
|
|
1,048
|
|
809
|
|
1,174
|
|
1,621
|
|
Foreign exchange loss
(gain), net
|
|
315
|
|
(631)
|
|
1,884
|
|
(1,147)
|
|
Asset impairments and
other costs
|
|
—
|
|
1,469
|
|
—
|
|
1,506
|
|
Adjusted
EBITDA
|
|
$
46,225
|
|
$
37,394
|
|
$
79,275
|
|
$ 71,447
|
|
Revenue
|
|
$ 129,005
|
|
$ 113,651
|
|
$ 243,535
|
|
$
219,743
|
|
Net income
margin
|
|
6 %
|
|
7 %
|
|
3 %
|
|
5 %
|
|
Adjusted EBITDA
margin
|
|
36 %
|
|
33 %
|
|
33 %
|
|
33 %
|
Conference Call and Webcast Information
IAS will host
a conference call and live webcast to discuss its second quarter
2024 financial results today at 5:00 p.m.
ET. To access the live webcast and conference call dial-in,
please register under the "News & Events" section of IAS's
investor relations website. A replay will be available on IAS's
investor relations website following the live call:
https://investors.integralads.com.
About Integral Ad Science
Integral Ad Science (IAS) is
a leading global media measurement and optimization platform that
delivers the industry's most actionable data to drive superior
results for the world's largest advertisers, publishers, and media
platforms. IAS's software provides comprehensive and enriched data
that ensures ads are seen by real people in safe and suitable
environments, while improving return on ad spend for advertisers
and yield for publishers. Our mission is to be the global benchmark
for trust and transparency in digital media quality. For more
information, visit integralads.com.
Forward-Looking Statements
This earnings press release
contains forward-looking statements that are subject to risks and
uncertainties. All statements other than statements of historical
fact included in this press release are forward-looking statements.
Forward-looking statements give our current expectations and
projections relating to our financial condition, results of
operations, plans, objectives, future performance, including
guidance, and business, including pipeline and industry trends. You
can identify forward-looking statements by the fact that they do
not relate strictly to historical or current facts. These
statements may include words such as "anticipate," "estimate,"
"expect," "project," "plan," "intend," "believe," "may," "will,"
"should," "can have," "likely," and other words and terms of
similar meaning in connection with any discussion of the timing or
nature of future operating or financial performance or other
events. For example, all statements we make relating to our
estimated and projected costs, expenditures, cash flows, growth
rates and financial results or our plans and objectives for future
operations, growth initiatives or strategies, including pursuing
business from Oracle or other competitors are forward-looking
statements. All forward-looking statements are subject to risks and
uncertainties that may cause actual results to differ materially
from those that we expected, including: (i) the adverse effect on
our business, operating results, financial condition, and prospects
from various macroeconomic factors, including instability in
geopolitical or market conditions; (ii) our failure to innovate or
make the right investment decisions; (iii) our ability to provide
digital or cross-platform analytics; (iv) our failure to maintain
or achieve industry accreditation standards; (v) our dependence on
integrations with advertising platforms, demand side providers
("DSPs") and proprietary platforms that we do not control; (vi) our
ability to compete successfully with our current or future
competitors in an intensely competitive market, including with
respect to the Oracle opportunity; (vii) our inability to use
software licensed from third parties; (viii) our international
expansion; (ix) our ability to expand into new channels; (x) our
ability to sustain our profitability and revenue growth rate; (xi)
risks that our customers do not pay or choose to dispute their
invoices; (xii) risks of material changes to revenue share
agreements with certain DSPs; (xiii) our dependence on the overall
demand for advertising; (xiv) our ability to effectively manage our
growth; (xv) the impact that any acquisitions we have completed in
the past and may consummate in the future, strategic investments,
or alliances may have on our business, financial condition, and
results of operations; (xvi) our ability to successfully execute
our international plans; (xvii) the risks associated with the
seasonality of our market; (xviii) our ability to maintain high
impression volumes; (xix) the difficulty in evaluating our future
prospects given our short operating history; (xx) uncertainty in
how the market for buying digital advertising verification
solutions will evolve; (xxi) interruption by man-made problems such
as terrorism, computer viruses, or social disruptions; (xxii) the
risk of failures in the systems and infrastructure supporting our
solutions and operations; (xxiii) our ability to avoid operational,
technical, and performance issues with our platform; (xxiv) risks
associated with any unauthorized access to user, customer, or
inventory and third-party provider data; (xxv) our ability to
provide the non-proprietary technology, software, products, and
services that we use; (xxvi) the risk that we are sued by third
parties for alleged infringement, misappropriation, or
other violation of their proprietary rights; (xxvii) our ability to
obtain, maintain, protect, or enforce intellectual property and
proprietary rights that are important to our business; (xxviii) our
involvement in lawsuits to protect or enforce our intellectual
property; (xxix) risks that our employees, consultants, or advisors
have wrongfully used or disclosed alleged trade
secrets of their current or former employers; (xxx) risks that our
trademarks and trade names are not adequately protected; (xxxi) the
impact of unforeseen changes to privacy and data protection laws
and regulation on digital advertising; (xxxii) our ability to
maintain our corporate culture; (xxxiii) public health outbreaks,
epidemics, pandemics, or other public health crises; (xxxiv) risks
posed by earthquakes, fires, floods, and other natural catastrophic
events; (xxxv) the risk that a perceived failure to comply with
laws and industry self-regulation may damage our reputation; and
(xxxvi) other factors disclosed in our filings with the SEC. Given
these factors, as well as other variables that may affect our
operating results, you should not rely on forward-looking
statements, assume that past financial performance will be a
reliable indicator of future performance, or use historical trends
to anticipate results or trends in future periods.
We derive many of our forward-looking statements from our
operating budgets and forecasts, which are based on many detailed
assumptions. While we believe that our assumptions are reasonable,
we caution that it is very difficult to predict the impact of known
factors, and it is impossible for us to anticipate all factors that
could affect our actual results. The forward-looking statements
included in this press release are made only as of the date hereof.
We undertake no obligation to update or revise any forward- looking
statement as a result of new information, future events or
otherwise, except as otherwise required by law.
Investor Contact:
Jonathan
Schaffer
ir@integralads.com
Media Contact:
press@integralads.com
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SOURCE Integral Ad Science, Inc.
