Total revenue increased 19% to $120.3 million
Net loss of $13.7
million, or $0.09 per share,
at an 11% margin; adjusted EBITDA increased to $40.6 million at a 34% margin
Increases full year financial outlook
NEW
YORK, Nov. 2, 2023 /PRNewswire/ -- Integral Ad
Science Holding Corp. (Nasdaq: IAS), a leading global media
measurement and optimization platform, today announced financial
results for the third quarter ended September 30, 2023.
"We achieved strong results in the third quarter highlighted by
21% growth in optimization revenue and a 23% increase in
measurement revenue. Social media revenue growth accelerated to 41%
as we extended our global platform partnerships and increased
customer adoption of our market leading products. We are raising
our full year 2023 financial outlook based on our positive third
quarter performance and business momentum in the fourth quarter,"
said Lisa Utzschneider, CEO of IAS.
Third Quarter 2023 Financial Highlights
- Total revenue was $120.3
million, a 19% increase compared to $101.3 million in the prior-year period.
- Optimization revenue was $57.0
million, a 21% increase compared to $47.1 million in the prior-year period.
- Measurement revenue was $47.8
million, a 23% increase compared to $39.0 million in the prior-year period.
- Publisher revenue was $15.5
million compared to $15.3
million in the prior-year period.
- International revenue, excluding the Americas, was
$36.9 million, a 17% increase
compared to $31.6 million in the
prior-year period, or 31% of total revenue for the third quarter of
2023.
- Gross profit was $94.7
million, a 15% increase compared to $82.2 million in the prior-year period. Gross
profit margin was 79% for the third quarter of 2023.
- Net loss was $13.7
million, or $0.09 per share,
compared to net income of $0.8
million, or $0.00 per share,
in the prior-year-period. Net loss margin was 11% for the third
quarter of 2023.
- Adjusted EBITDA* increased to $40.6 million, a 35% increase compared to
$30.1 million in the prior-year
period. Adjusted EBITDA* margin was 34% for the third quarter of
2023.
- Cash and cash equivalents were $92.2 million at September
30, 2023.
Recent Business Highlights
- TikTok Expansion - During the quarter, IAS continued to
expand its Total Media Quality (TMQ) brand safety and suitability
measurement product in TikTok. TMQ is now available to advertisers
in more than 50 markets.
- YouTube Suitability Dashboard - Advertisers using IAS's
TMQ product on YouTube now have access to a suitability dashboard
that allows them to analyze brand suitability trends and create a
custom suitability profile.
- Google Campaign Manager Integration - IAS enhanced its
integration with Google Campaign Manager 360. Marketers now have
the ability to wrap tags, create, and launch campaigns with ease.
This enhancement ensures advertiser data is automatically populated
in IAS Signal and creates greater efficiencies and reduced campaign
creation time.
- X Partnership - IAS announced an exclusive,
first-to-market partnership with X to provide pre-bid brand safety
and suitability across the social media platform. IAS leads the
industry in providing end-to-end support for marketers on X with a
full array of solutions from measurement to optimization.
- Instacart Partnership - IAS announced that it will
provide viewability and invalid traffic (IVT) measurement on
Instacart Ads, Instacart's advertising products and solutions,
which reaches more than 5,500 brands.
- Amazon DSP Integration - IAS enhanced its integration
with Amazon Ads to include Context Control pre-bid segments. In
addition to IAS's standard pre-bid segments within Amazon's DSP,
customers can now easily discover and avoid unsuitable content and
reach contextually relevant content.
- TrustArc Certification - IAS earned its first
certification from TrustArc. The TRUSTe Enterprise Privacy seal
certifies that IAS's data privacy policies and practices align with
the standards set by the leaders in governance and compliance.
Financial Outlook
"We are pleased with 19% revenue growth for the third quarter
which reflects investments we have made in key business
initiatives," said Tania Secor, CFO
of IAS. "We continue to prioritize profitable growth, and adjusted
EBITDA margin expanded to 34% in the period. During the quarter, we
paid down an additional $20 million
in debt for a total of $50 million in
debt reduction year-to-date. We look forward to executing on our
strategy in the fourth quarter, our seasonally strongest
period."
IAS is introducing the following financial outlook for the
fourth quarter of 2023 and increasing its full year 2023 outlook
for revenue and adjusted EBITDA:
Fourth Quarter Ending December 31,
2023:
- Total revenue of $130
million to $132 million
- Adjusted EBITDA* of $45
million to $47 million
Year Ending December 31,
2023:
- Total revenue of $470
million to $472 million
- Adjusted EBITDA* of $157
million to $159 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
fourth quarter of 2023 in the range of $15
million to $16 million and for
the full year 2023 in the range of $81
million to $82 million.
INTEGRAL AD SCIENCE
HOLDING CORP.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
|
|
(IN THOUSANDS,
EXCEPT SHARE DATA)
|
September
30, 2023
|
|
December 31,
2022
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
92,248
|
|
$
86,877
|
Restricted
cash
|
127
|
|
45
|
Accounts receivable,
net
|
86,682
|
|
67,884
|
Unbilled
receivables
|
41,857
|
|
41,550
|
Prepaid expenses and
other current assets
|
18,853
|
|
24,761
|
Due from related
party
|
20
|
|
29
|
Total current
assets
|
239,787
|
|
221,146
|
Property and equipment,
net
|
3,506
|
|
2,412
|
Internal use software,
net
|
36,079
|
|
23,642
|
Intangible assets,
net
|
188,402
|
|
217,558
|
Goodwill
|
673,755
|
|
674,094
|
Operating lease
right-of-use assets
|
22,368
|
|
22,787
|
Deferred tax asset,
net
|
1,673
|
|
2,020
|
Other long-term
assets
|
4,705
|
|
5,024
|
Total
assets
|
$
1,170,275
|
|
$
1,168,683
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable and
accrued expenses
|
$
59,748
|
|
$
60,799
|
Due to related
party
|
38
|
|
122
|
Deferred
revenue
|
237
|
|
99
|
Operating lease
liabilities, current
|
9,031
|
|
6,749
|
Total current
liabilities
|
69,054
|
|
67,769
|
Net deferred tax
liability
|
24,371
|
|
45,495
|
Long-term
debt
|
173,609
|
|
223,262
|
Operating lease
liabilities, non-current
|
20,299
|
|
22,875
|
Other long-term
liabilities
|
4,296
|
|
1,066
|
Total
liabilities
|
291,629
|
|
360,467
|
Commitments and
Contingencies (Note 13)
|
|
|
|
Stockholders'
Equity
|
|
|
|
Preferred Stock, $0.001
par value, 50,000,000 shares authorized at September 30,
2023; 0 shares issued
and
outstanding at
September 30, 2023 and December 31, 2022.
|
—
|
|
—
|
Common Stock, $0.001
par value, 500,000,000 shares authorized, 157,597,931
and 153,990,128 shares
issued
and outstanding at
September 30, 2023 and December 31, 2022, respectively.
|
158
|
|
154
|
Additional
paid-in-capital
|
883,386
|
|
810,186
|
Accumulated other
comprehensive loss
|
(3,688)
|
|
(2,899)
|
Retained earnings
(accumulated deficit)
|
(1,210)
|
|
775
|
Total stockholders'
equity
|
878,646
|
|
808,216
|
Total liabilities and
stockholders' equity
|
$
1,170,275
|
|
$
1,168,683
|
INTEGRAL AD SCIENCE
HOLDING CORP.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(UNAUDITED)
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
(IN THOUSANDS,
EXCEPT SHARE AND PER SHARE DATA)
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenue
|
|
$
120,331
|
|
$
101,343
|
|
$
340,074
|
|
$
290,913
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Cost of revenue
(excluding depreciation and amortization shown below)
|
|
25,599
|
|
19,171
|
|
71,100
|
|
53,864
|
Sales and
marketing
|
|
29,604
|
|
28,190
|
|
87,566
|
|
77,961
|
Technology and
development
|
|
17,211
|
|
19,459
|
|
53,850
|
|
54,071
|
General and
administrative
|
|
22,611
|
|
20,150
|
|
85,673
|
|
56,081
|
Depreciation and
amortization
|
|
14,027
|
|
12,617
|
|
40,373
|
|
37,585
|
Foreign exchange loss,
net
|
|
2,078
|
|
4,064
|
|
931
|
|
3,503
|
Total operating
expenses
|
|
111,130
|
|
103,651
|
|
339,493
|
|
283,065
|
Operating income
(loss)
|
|
9,201
|
|
(2,308)
|
|
581
|
|
7,848
|
Interest expense,
net
|
|
(3,109)
|
|
(2,619)
|
|
(9,747)
|
|
(5,859)
|
Employee retention tax
credit
|
|
—
|
|
6,981
|
|
—
|
|
6,981
|
Net income (loss)
before income taxes
|
|
6,092
|
|
2,054
|
|
(9,166)
|
|
8,970
|
Benefit (provision)
from income taxes
|
|
(19,841)
|
|
(1,287)
|
|
6,240
|
|
(5,083)
|
Net income
(loss)
|
|
$
(13,749)
|
|
$
767
|
|
$
(2,926)
|
|
$
3,887
|
Net income (loss) per
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
(0.09)
|
|
$
0.00
|
|
$
(0.02)
|
|
$
0.03
|
Diluted
|
|
$
(0.09)
|
|
$
0.00
|
|
$
(0.02)
|
|
$
0.02
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
157,055,904
|
|
155,389,195
|
|
157,691,005
|
|
155,007,655
|
Diluted
|
|
157,055,904
|
|
156,696,754
|
|
157,691,005
|
|
157,581,569
|
Other comprehensive
loss:
|
|
|
|
|
|
|
|
|
Foreign
currency translation adjustments
|
|
(1,717)
|
|
(3,248)
|
|
(789)
|
|
(11,218)
|
Total comprehensive
loss
|
|
$
(15,466)
|
|
$
(2,481)
|
|
$
(3,715)
|
|
$
(7,331)
|
Stock-Based
Compensation
(UNAUDITED)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
(IN
THOUSANDS)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Cost of
revenue
|
$
118
|
|
$
101
|
|
$
328
|
|
$
258
|
Sales and
marketing
|
5,714
|
|
4,457
|
|
17,859
|
|
10,650
|
Technology and
development
|
2,902
|
|
3,168
|
|
13,434
|
|
6,979
|
General and
administrative
|
5,166
|
|
6,521
|
|
34,020
|
|
15,220
|
Total stock-based
compensation
|
$
13,900
|
|
$
14,247
|
|
$
65,641
|
|
$
33,107
|
INTEGRAL AD SCIENCE
HOLDING CORP.
CONDENSED
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS'
EQUITY
(UNAUDITED)
|
Three Months Ended
September 30, 2023
|
|
|
|
Common
Stock
|
|
|
|
|
|
|
|
|
(IN THOUSANDS,
EXCEPT SHARES)
|
|
Shares
|
|
Amount
|
|
Additional
paid-in
capital
|
|
Accumulated
other
comprehensive
loss
|
|
Retained
earnings
(accumulated
deficit)
|
|
Total
stockholders'
equity
|
Balance, July 1,
2023
|
|
156,279,075
|
|
$
156
|
|
$
867,490
|
|
$
(1,971)
|
|
$
12,539
|
|
$
878,214
|
RSUs and MSUs
vested
|
|
1,102,702
|
|
1
|
|
—
|
|
—
|
|
—
|
|
1
|
Option
exercises
|
|
53,748
|
|
1
|
|
590
|
|
—
|
|
—
|
|
591
|
ESPP
purchase
|
|
162,406
|
|
—
|
|
1,424
|
|
—
|
|
—
|
|
1,424
|
Stock-based
compensation
|
|
—
|
|
—
|
|
13,882
|
|
—
|
|
—
|
|
13,882
|
Foreign currency
translation adjustment
|
|
—
|
|
—
|
|
—
|
|
(1,717)
|
|
—
|
|
(1,717)
|
Net loss
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(13,749)
|
|
(13,749)
|
Balance, September
30, 2023
|
|
157,597,931
|
|
$
158
|
|
$
883,386
|
|
$
(3,688)
|
|
$
(1,210)
|
|
$
878,646
|
|
Nine Months Ended
September 30, 2023
|
|
|
|
Common
Stock
|
|
|
|
|
|
|
|
|
(IN THOUSANDS,
EXCEPT SHARES)
|
|
Shares
|
|
Amount
|
|
Additional
paid-in
capital
|
|
Accumulated
other
comprehensive
loss
|
|
Retained
earnings
(accumulated
deficit)
|
|
Total
stockholders'
equity
|
Balance, January 1,
2023
|
|
153,990,128
|
|
$
154
|
|
$
810,186
|
|
$
(2,899)
|
|
$
775
|
|
$
808,216
|
RSUs and MSUs
vested
|
|
2,692,984
|
|
3
|
|
—
|
|
—
|
|
—
|
|
3
|
Option
exercises
|
|
641,250
|
|
1
|
|
5,583
|
|
—
|
|
—
|
|
5,584
|
ESPP
purchase
|
|
273,569
|
|
—
|
|
2,306
|
|
—
|
|
—
|
|
2,306
|
Stock-based
compensation
|
|
—
|
|
—
|
|
65,311
|
|
—
|
|
—
|
|
65,311
|
Foreign currency
translation adjustment
|
|
—
|
|
—
|
|
—
|
|
(789)
|
|
—
|
|
(789)
|
Adoption of ASC 326,
net of tax
|
|
—
|
|
—
|
|
—
|
|
—
|
|
941
|
|
941
|
Net loss
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(2,926)
|
|
(2,926)
|
Balance, September
30, 2023
|
|
157,597,931
|
|
$
158
|
|
$
883,386
|
|
$
(3,688)
|
|
$
(1,210)
|
|
$
878,646
|
|
Three Months Ended
September 30, 2022
|
|
|
|
Common
Stock
|
|
|
|
|
|
|
|
|
(IN THOUSANDS,
EXCEPT SHARES)
|
|
Shares
|
|
Amount
|
|
Additional
paid-in
capital
|
|
Accumulated
other
comprehensive
loss
|
|
Accumulated
deficit
|
|
Total
stockholders'
equity
|
Balance, July 1,
2022
|
|
155,498,704
|
|
$
155
|
|
$
804,175
|
|
$
(8,285)
|
|
$
(11,479)
|
|
$
784,566
|
RSUs vested
|
|
471,995
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Option
exercises
|
|
603,670
|
|
1
|
|
2,526
|
|
—
|
|
—
|
|
2,527
|
Stock-based
compensation
|
|
—
|
|
—
|
|
14,225
|
|
—
|
|
—
|
|
14,225
|
Foreign currency
translation adjustment
|
|
—
|
|
—
|
|
—
|
|
(3,248)
|
|
—
|
|
(3,248)
|
Repurchase of common
stock
|
|
(3,080,061)
|
|
(3)
|
|
(23,652)
|
|
—
|
|
—
|
|
(23,655)
|
Net income
|
|
—
|
|
—
|
|
—
|
|
—
|
|
767
|
|
767
|
Balance, September
30, 2022
|
|
153,494,308
|
|
$
153
|
|
$
797,274
|
|
$
(11,533)
|
|
$
(10,711)
|
|
$
775,183
|
|
Nine Months Ended
September 30, 2022
|
|
|
|
Common
Stock
|
|
|
|
|
|
|
|
|
(IN THOUSANDS,
EXCEPT SHARES)
|
|
Shares
|
|
Amount
|
|
Additional
paid-in
capital
|
|
Accumulated
other
comprehensive
loss
|
|
Accumulated
deficit
|
|
Total
stockholders'
equity
|
Balance, January 1,
2022
|
|
154,398,495
|
|
$
154
|
|
$
781,951
|
|
$
(315)
|
|
$
(14,600)
|
|
$
767,190
|
RSUs vested
|
|
761,208
|
|
1
|
|
—
|
|
—
|
|
—
|
|
1
|
Option
exercises
|
|
1,414,666
|
|
1
|
|
5,907
|
|
—
|
|
—
|
|
5,908
|
Stock-based
compensation
|
|
—
|
|
—
|
|
33,068
|
|
—
|
|
—
|
|
33,068
|
Foreign currency
translation adjustment
|
|
—
|
|
—
|
|
—
|
|
(11,218)
|
|
—
|
|
(11,218)
|
Repurchase of common
stock
|
|
(3,080,061)
|
|
(3)
|
|
(23,652)
|
|
—
|
|
—
|
|
(23,655)
|
Net income
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3,887
|
|
3,887
|
Balance, September
30, 2022
|
|
153,494,308
|
|
$
153
|
|
$
797,274
|
|
$
(11,533)
|
|
$
(10,711)
|
|
$
775,183
|
INTEGRAL AD SCIENCE
HOLDING CORP.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
|
|
|
|
Nine Months Ended
September 30,
|
(IN
THOUSANDS)
|
|
2023
|
|
2022
|
Cash flows from
operating activities:
|
|
|
|
|
Net income
(loss)
|
|
$
(2,926)
|
|
$
3,887
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities
|
|
|
|
|
Depreciation and
amortization
|
|
40,373
|
|
37,585
|
Stock-based
compensation
|
|
65,641
|
|
33,107
|
Foreign currency loss,
net
|
|
571
|
|
3,503
|
Deferred tax
benefit
|
|
(17,974)
|
|
(657)
|
Amortization of debt
issuance costs
|
|
348
|
|
348
|
Allowance for credit
losses
|
|
2,223
|
|
647
|
Employee retention tax
credit
|
|
—
|
|
(6,981)
|
Impairment of
assets
|
|
—
|
|
55
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Increase in accounts
receivable
|
|
(19,936)
|
|
(8,031)
|
Increase in unbilled
receivables
|
|
(370)
|
|
(289)
|
Decrease (increase) in
prepaid expenses and other current assets
|
|
5,851
|
|
(6,757)
|
Decrease (increase) in
operating leases, net
|
|
139
|
|
(502)
|
Increase in other
long-term assets
|
|
(27)
|
|
(330)
|
Increase (decrease) in
accounts payable and accrued expenses
|
|
148
|
|
(8,226)
|
Increase in deferred
revenue
|
|
150
|
|
127
|
Increase (decrease) in
due to/from related party
|
|
(93)
|
|
74
|
Net cash provided by
operating activities
|
|
74,118
|
|
47,560
|
Cash flows from
investing activities:
|
|
|
|
|
Payment for
acquisitions, net of acquired cash
|
|
—
|
|
(1,603)
|
Purchase of property
and equipment
|
|
(1,954)
|
|
(917)
|
Acquisition and
development of internal use software and other
|
|
(23,539)
|
|
(9,952)
|
Net cash used in
investing activities
|
|
(25,493)
|
|
(12,472)
|
Cash flows from
financing activities:
|
|
|
|
|
Proceeds from the
Revolver
|
|
75,000
|
|
15,000
|
Repayment of long-term
debt
|
|
(125,000)
|
|
(25,000)
|
Repayment of
short-term debt
|
|
—
|
|
(1,836)
|
Proceeds from exercise
of stock options
|
|
5,584
|
|
5,908
|
Payments for
repurchase of common stock
|
|
—
|
|
(23,655)
|
Cash received from
Employee Stock Purchase Program
|
|
2,236
|
|
388
|
Net cash used in
financing activities
|
|
(42,180)
|
|
(29,195)
|
Net increase in cash,
cash equivalents and restricted cash
|
|
6,445
|
|
5,893
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
|
(1,330)
|
|
(5,396)
|
Cash, cash equivalents
and restricted cash at beginning of period
|
|
89,671
|
|
76,078
|
Cash, cash
equivalents and restricted cash at end of period
|
|
$
94,786
|
|
$
76,575
|
Supplemental
Disclosures:
|
|
|
|
|
Cash paid during the
period for:
|
|
|
|
|
Interest
|
|
$
8,880
|
|
$
5,548
|
Taxes
|
|
$
10,361
|
|
$
11,817
|
Non-cash investing
and financing activities:
|
|
|
|
|
Property and equipment
acquired included in accounts payable
|
|
$
17
|
|
$
145
|
Internal use software
acquired included in accounts payable
|
|
$
1,012
|
|
$
1,385
|
Lease liabilities
arising from right of use assets
|
|
$
29,330
|
|
$
26,214
|
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
September 30,
|
|
Nine Months Ended
September 30,
|
(IN THOUSANDS,
EXCEPT PERCENTAGES)
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net income
(loss)
|
|
$ (13,749)
|
|
$
767
|
|
$
(2,926)
|
|
$
3,887
|
Depreciation and
amortization
|
|
14,027
|
|
12,617
|
|
40,373
|
|
37,585
|
Stock-based
compensation
|
|
13,900
|
|
14,247
|
|
65,641
|
|
33,107
|
Interest expense,
net
|
|
3,109
|
|
2,619
|
|
9,747
|
|
5,859
|
Provision (benefit)
from income taxes
|
|
19,841
|
|
1,287
|
|
(6,240)
|
|
5,083
|
Acquisition,
restructuring and integration costs
|
|
1,353
|
|
1,518
|
|
2,974
|
|
4,396
|
Foreign exchange loss,
net(1)
|
|
2,078
|
|
4,064
|
|
931
|
|
3,551
|
Employee retention tax
credit
|
|
—
|
|
(6,981)
|
|
—
|
|
(6,981)
|
Asset impairments and
other costs
|
|
11
|
|
6
|
|
1,517
|
|
55
|
Adjusted
EBITDA
|
|
$
40,570
|
|
$
30,144
|
|
$ 112,017
|
|
$ 86,542
|
Revenue
|
|
$ 120,331
|
|
$ 101,343
|
|
$ 340,074
|
|
$
290,913
|
Net income (loss)
margin
|
|
(11) %
|
|
1 %
|
|
(1) %
|
|
1 %
|
Adjusted EBITDA
margin
|
|
34 %
|
|
30 %
|
|
33 %
|
|
30 %
|
|
(1)The
adjustment for foreign exchange loss, net, was effective for the
three months ended June 30, 2022 and periods thereafter. Adjusted
EBITDA has not been recast for this adjustment for periods prior to
June 30, 2022, because such adjustments would have been immaterial
in such periods.
|
Conference Call and Webcast Information
IAS will host
a conference call and live webcast to discuss its third quarter
2023 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, safety, 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 and business. 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 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 inflation, rising
interest rates, potential recessions, instability in geopolitical
or market conditions generally and instability in the financial
markets and banking industry; (ii) our dependence on the overall
demand for advertising; (iii) a failure to innovate or make the
right investment decisions; (iv) our failure to maintain or achieve
industry accreditation standards; (v) our ability to compete
successfully with our current or future competitors in an intensely
competitive market; (vi) our dependence on integrations with
advertising platforms, demand-side providers ("DSPs") and
proprietary platforms that we do not control; (vii) our ability to
expand into new channels; (viii) our ability to sustain our
profitability and revenue growth rate decline; (ix) risks that our
customers do not pay or choose to dispute their invoices; (x) risks
of material changes to revenue share agreements with certain DSPs;
(xi) our ability to effectively manage our growth; (xii) 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; (xiii) our ability to successfully execute our
international plans; (xiv) the risks associated with the
seasonality of our market; (xv) our ability to maintain high
impression volumes; (xvi) the difficulty in evaluating our future
prospects given our short operating history; (xvii) uncertainty in
how the market for buying digital advertising verification
solutions will evolve; (xviii) our ability to provide digital or
cross-platform analytics; (xix) our ability to maintain our
corporate culture; (xx) public health outbreaks, epidemics or
pandemics, such as the COVID-19 pandemic; (xxi) risks posed by
earthquakes, fires, floods, and other natural catastrophic events;
(xxii) interruption by man-made problems such as terrorism,
computer viruses, or social disruption; (xxiii) risks that our
existing indebtedness could adversely affect our business and
growth prospects; (xxiv) the risk of failures in the systems and
infrastructure supporting our solutions and operations; (xxv) our
ability to avoid operational, technical, and performance issues
with our platform; (xxvi) risks associated with any unauthorized
access to user, customer, or inventory and third-party provider
data; (xxvii) our inability to use software licensed from third
parties; (xxviii) our ability to provide the non-proprietary
technology, software, products, and services that we use; (xxiv)
the risk that we are sued by third parties for alleged
infringement, misappropriation, or other violation of their
proprietary rights; (xxx) our ability to obtain, maintain, protect,
or enforce intellectual property and proprietary rights that are
important to our business; (xxxi) our involvement in lawsuits to
protect or enforce our intellectual property; (xxxii) risks that
our employees, consultants, or advisors have wrongfully used or
disclosed alleged trade secrets of their current or
former employers; (xxxiii) risks that our trademarks and trade
names are not adequately protected; (xxxiv) the impact of
unforeseen changes to privacy and data protection laws and
regulation on digital advertising; (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 / Lauren Hartman
ir@integralads.com
Media Contact:
press@integralads.com
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SOURCE Integral Ad Science, Inc.