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, Feb. 27, 2024 /PRNewswire/ -- 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.
"We ended 2023 with strong fourth quarter performance across
optimization and measurement with revenue growth of 16% and 18%,
respectively," said Lisa
Utzschneider, CEO of IAS. "Social media revenue increased
37% in the fourth quarter as marketers trusted IAS to maximize
their advertising spend globally, particularly in short-form video.
In 2024, we will continue to invest in data science and innovate
with AI to empower marketers with actionable data to drive superior
results. We expect to deliver double-digit revenue growth for the
full year."
Fourth Quarter 2023 Financial Highlights
- Total revenue was $134.3
million, a 14% increase compared to $117.4 million in the prior-year period.
- Optimization revenue was $63.6
million, a 16% increase compared to $55.1 million in the prior-year period.
- Measurement revenue was $52.6
million, an 18% increase compared to $44.7 million in the prior-year period.
- Publisher revenue was $18.1
million, a 2% increase compared to $17.6 million in the prior-year period.
- International revenue, excluding the Americas, was
$43.3 million, a 16% increase
compared to $37.3 million in the
prior-year period, or 32% of total revenue for the fourth quarter
of 2023.
- Gross profit was $106.0
million, an 11% increase compared to $95.5 million in the prior-year period. Gross
profit margin was 79% for the fourth quarter of 2023.
- Net income was $10.2
million, or $0.06 per basic
and diluted share, compared to $11.5
million, or $0.07 per basic
and diluted share, in the prior-year-period. Net income margin was
8% for the fourth quarter of 2023.
- Adjusted EBITDA* was $47.5
million, a 19% increase compared to $40.0 million in the prior-year period. Adjusted
EBITDA* margin was 35% for the fourth quarter of 2023.
Full Year 2023 Financial Highlights
- Total revenue was $474.4
million, a 16% increase compared to $408.3 million in the prior year.
- Optimization revenue was $224.5
million, an 18% increase compared to $190.6 million in the prior year.
- Measurement revenue was $186.0
million, a 20% increase compared to $154.9 million in the prior year.
- Publisher revenue was $63.8
million, a 2% increase compared to $62.8 million in the prior year.
- International revenue, excluding the Americas, was
$146.8 million, a 14% increase
compared to $129.1 million in the
prior year, or 31% of total revenue for the full year 2023.
- Gross profit was $375.0
million, a 13% increase compared to $332.6 million in the prior year. Gross profit
margin was 79% for the full year 2023.
- Net income was $7.2
million, or $0.04 per diluted
share, compared to $15.4 million, or
$0.10 per basic and diluted share, in
the prior year. Net income margin was 2% for the full year
2023.
- Adjusted EBITDA* was $159.5
million, a 26% increase compared to $126.6 million in the prior year. Adjusted
EBITDA* margin was 34% for the full year 2023.
- Cash and cash equivalents were $124.8 million at December
31, 2023.
Recent Business Highlights
- Meta Expansion - In February, IAS announced the
availability of its AI-driven Total Media Quality (TMQ) brand
safety and suitability measurement product across Facebook and
Instagram Feed and Reels. IAS's new post-bid brand safety and
suitability expansion with Meta gives advertisers increased
transparency into whether their campaigns are appearing next to
safe and suitable content.
- IAS MRC Continuing Accreditation for Measurement of Meta
Platforms - In January, IAS received continuing accreditation
from the MRC for viewability measurement of Meta, including
impressions and two-second video viewability, on Facebook Feed and
Instagram Feed and Stories.
- YouTube TMQ Expansion - During the fourth quarter, IAS
expanded its partnership to YouTube Shorts to offer its brand
safety and suitability measurement product to advertisers for
YouTube Shorts inventory, as part of its existing Total Media
Quality for YouTube product suite.
- X Expansion - In February, IAS expanded its partnership
with X to all U.S. advertisers. IAS classifies all vertical video
ad adjacencies for brand safety and suitability aligned to the GARM
framework, giving advertisers maximum control over where their ads
appear on the X vertical video feed.
- Quality Attention Expansion - In January, IAS announced
the general availability of its Quality Attention measurement
product. Quality Attention uses advanced machine learning
technology, actionable data from Lumen Research's eye-tracking
technology, and a variety of signals obtained as part of IAS's core
technology.
Financial Outlook
"We reported profitable growth in the fourth quarter with a 14%
revenue increase at a 35% adjusted EBITDA* margin," said
Tania Secor, CFO of IAS. "As we move
through 2024, we expect to ramp both revenue growth and
profitability from forecasted first quarter levels as we expand
availability and customer adoption of new products. We also plan to
maintain our strong financial profile and healthy balance
sheet."
IAS is introducing the following financial outlook for the first
quarter and full year 2024:
First Quarter Ending March 31,
2024:
- Total revenue of $111
million to $113 million
- Adjusted EBITDA* of $28
million to $30 million
Year Ending December 31,
2024:
- Total revenue of $530
million to $540 million
- Adjusted EBITDA* of $171
million to $179 million
* See "Supplemental Disclosure Regarding Non-GAAP Financial
Information" section herein for an explanation of Non-GAAP
measures. IAS is unable to provide a reconciliation for
forward-looking guidance of Adjusted EBITDA to net income (loss),
the most closely comparable GAAP measure, because certain material
reconciling items, such as depreciation and amortization, interest
expense, income tax expense (benefit), restructuring and severance
costs, and acquisition and integration costs, 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 first quarter of 2024 in the range of
$14 million to $16 million and for the full year 2024 in the
range of $72 million to $76 million. A reconciliation is not available
without unreasonable effort.
INTEGRAL AD SCIENCE
HOLDING CORP.
CONSOLIDATED BALANCE
SHEETS
|
|
(IN THOUSANDS,
EXCEPT SHARE DATA)
|
December
31, 2023
|
|
December
31, 2022
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$ 124,759
|
|
$
86,877
|
Restricted
cash
|
54
|
|
45
|
Accounts receivable,
net
|
74,609
|
|
67,884
|
Unbilled
receivables
|
46,548
|
|
41,550
|
Prepaid expenses and
other current assets
|
18,959
|
|
24,761
|
Due from related
party
|
—
|
|
29
|
Total current
assets
|
264,929
|
|
221,146
|
Property and equipment,
net
|
3,769
|
|
2,412
|
Internal use software,
net
|
40,301
|
|
23,642
|
Intangible assets,
net
|
178,908
|
|
217,558
|
Goodwill
|
675,282
|
|
674,094
|
Operating lease
right-of-use assets, net
|
21,668
|
|
22,787
|
Deferred tax asset,
net
|
2,465
|
|
2,020
|
Other long-term
assets
|
4,402
|
|
5,024
|
Total
assets
|
$
1,191,724
|
|
$
1,168,683
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable and
accrued expenses
|
$
72,232
|
|
$
60,799
|
Operating lease
liabilities, current
|
9,435
|
|
6,749
|
Due to related
party
|
121
|
|
122
|
Deferred
revenue
|
682
|
|
99
|
Total current
liabilities
|
82,470
|
|
67,769
|
Deferred tax liability,
net
|
20,367
|
|
45,495
|
Long-term
debt
|
153,725
|
|
223,262
|
Operating lease
liabilities, non-current
|
19,523
|
|
22,875
|
Other long-term
liabilities
|
6,183
|
|
1,066
|
Total
liabilities
|
282,268
|
|
360,467
|
Commitments and
Contingencies
|
|
|
|
Stockholders'
Equity
|
|
|
|
Preferred Stock, $0.001
par value, 50,000,000 shares authorized at December 31, 2023; 0
shares issued and outstanding at December 31,
2023 and 2022
|
—
|
|
—
|
Common Stock, $0.001
par value, 500,000,000 shares authorized at December 31, 2023,
158,757,620 and 153,990,128 shares issued and
outstanding at December 31, 2023 and
2022, respectively
|
159
|
|
154
|
Additional
paid-in-capital
|
901,259
|
|
810,186
|
Accumulated other
comprehensive loss
|
(916)
|
|
(2,899)
|
Accumulated
earnings
|
8,954
|
|
775
|
Total stockholders'
equity
|
909,456
|
|
808,216
|
Total liabilities and
stockholders' equity
|
$
1,191,724
|
|
$
1,168,683
|
INTEGRAL AD SCIENCE
HOLDING CORP.
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(UNAUDITED)
|
|
|
|
Three months
ended December
31,
|
|
Year
ended December
31,
|
(IN THOUSANDS,
EXCEPT SHARE AND PER SHARE DATA)
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenue
|
|
$
134,295
|
|
$
117,435
|
|
$ 474,369
|
|
$ 408,348
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Cost of revenue
(excluding depreciation and amortization shown below)
|
|
28,252
|
|
21,891
|
|
99,352
|
|
75,755
|
Sales and
marketing
|
|
30,423
|
|
28,325
|
|
117,989
|
|
106,286
|
Technology and
development
|
|
19,056
|
|
22,280
|
|
72,906
|
|
76,351
|
General and
administrative
|
|
25,961
|
|
23,572
|
|
111,634
|
|
79,654
|
Depreciation and
amortization
|
|
14,593
|
|
12,811
|
|
54,966
|
|
50,396
|
Foreign exchange
(gain) loss, net
|
|
(501)
|
|
1,246
|
|
430
|
|
4,749
|
Total operating
expenses
|
|
117,784
|
|
110,125
|
|
457,277
|
|
393,191
|
Operating
income
|
|
16,511
|
|
7,310
|
|
17,092
|
|
15,157
|
Interest expense,
net
|
|
(2,489)
|
|
(3,194)
|
|
(12,236)
|
|
(9,053)
|
Employee retention tax
credit
|
|
—
|
|
—
|
|
—
|
|
6,981
|
Net income before
income taxes
|
|
14,022
|
|
4,116
|
|
4,856
|
|
13,085
|
(Provision) benefit
from income taxes
|
|
(3,858)
|
|
7,371
|
|
2,382
|
|
2,288
|
Net income
|
|
$
10,164
|
|
$
11,487
|
|
$
7,238
|
|
$
15,373
|
Net income per
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.06
|
|
$
0.07
|
|
$
0.05
|
|
$
0.10
|
Diluted
|
|
$
0.06
|
|
$
0.07
|
|
$
0.04
|
|
$
0.10
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
158,243,619
|
|
153,792,438
|
|
156,272,335
|
|
154,699,694
|
Diluted
|
|
163,060,805
|
|
155,288,725
|
|
161,723,131
|
|
157,258,083
|
Other comprehensive
income:
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
2,772
|
|
8,634
|
|
1,983
|
|
(2,584)
|
Total comprehensive
income
|
|
$
12,936
|
|
$
20,121
|
|
$
9,221
|
|
$
12,789
|
INTEGRAL AD SCIENCE
HOLDING CORP.
CONSOLIDATED
STATEMENTS OF CHANGES IN STOCKHOLDERS'/MEMBERS'
EQUITY
|
|
|
Members'
Interest
|
|
Common
Stock
|
|
|
|
|
|
|
|
|
(IN THOUSANDS,
EXCEPT UNITS
AND SHARES DATA)
|
Units
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Additional
paid-in
capital
|
|
Accumulated
other
comprehensive
income
(loss)
|
|
Accumulated
earnings
(deficit)
|
|
Total members'/
stockholders'
equity
|
Balances at January
1, 2021
|
134,039,494
|
|
$
553,717
|
|
—
|
|
$
—
|
|
$
—
|
|
$
4,523
|
|
$
(126,761)
|
|
$
431,479
|
Repurchase of
units
|
(99,946)
|
|
(413)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(791)
|
|
(1,204)
|
Units vested
|
17,486
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Option
exercises
|
246,369
|
|
1,075
|
|
—
|
|
—
|
|
3,360
|
|
—
|
|
—
|
|
4,435
|
Foreign currency
translation
adjustment
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(4,838)
|
|
—
|
|
(4,838)
|
Net loss prior to
corporate conversion
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(37,832)
|
|
(37,832)
|
Conversion to Delaware
corporation
|
(134,203,403)
|
|
(554,379)
|
|
134,203,403
|
|
134
|
|
388,860
|
|
—
|
|
165,385
|
|
—
|
Rounding units/shares
as a result of
corporate conversion
|
—
|
|
—
|
|
(17)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Stock-based
compensation
|
—
|
|
—
|
|
—
|
|
—
|
|
55,222
|
|
—
|
|
—
|
|
55,222
|
RSUs vested
|
—
|
|
—
|
|
26,931
|
|
—
|
|
150
|
|
—
|
|
—
|
|
150
|
Issuance of common
stock in
connection with initial public offering
|
—
|
|
—
|
|
16,821,330
|
|
17
|
|
274,340
|
|
—
|
|
—
|
|
274,357
|
Issuance of common
stock for Publica
acquisition
|
—
|
|
—
|
|
2,888,889
|
|
3
|
|
49,628
|
|
—
|
|
—
|
|
49,631
|
Issuance of common
stock for Context
acquisition
|
—
|
|
—
|
|
457,959
|
|
—
|
|
10,391
|
|
—
|
|
—
|
|
10,391
|
Net loss
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(14,600)
|
|
(14,600)
|
Balances at December
31, 2021
|
—
|
|
$
—
|
|
154,398,495
|
|
$
154
|
|
$
781,951
|
|
$
(315)
|
|
$
(14,600)
|
|
$
767,190
|
RSUs vested
|
—
|
|
—
|
|
1,084,966
|
|
1
|
|
—
|
|
—
|
|
—
|
|
1
|
Option
exercises
|
—
|
|
—
|
|
1,586,728
|
|
2
|
|
7,153
|
|
—
|
|
—
|
|
7,155
|
Stock-based
compensation
|
—
|
|
—
|
|
—
|
|
—
|
|
44,733
|
|
—
|
|
—
|
|
44,733
|
Foreign currency
translation
adjustment
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(2,584)
|
|
—
|
|
(2,584)
|
Repurchase of common
stock
|
—
|
|
—
|
|
(3,080,061)
|
|
(3)
|
|
(23,652)
|
|
—
|
|
—
|
|
(23,655)
|
Net income
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
15,373
|
|
15,373
|
Balances at December
31, 2022
|
—
|
|
$
—
|
|
153,990,128
|
|
$
154
|
|
$
810,186
|
|
$
(2,899)
|
|
$
775
|
|
$
808,216
|
RSUs and MSUs
vested
|
—
|
|
—
|
|
3,492,130
|
|
4
|
|
—
|
|
—
|
|
—
|
|
4
|
Option
exercises
|
—
|
|
—
|
|
1,001,793
|
|
1
|
|
7,988
|
|
—
|
|
—
|
|
7,989
|
ESPP
purchase
|
—
|
|
—
|
|
273,569
|
|
—
|
|
2,306
|
|
—
|
|
—
|
|
2,306
|
Stock-based
compensation
|
—
|
|
—
|
|
—
|
|
—
|
|
80,779
|
|
—
|
|
—
|
|
80,779
|
Foreign currency
translation adjustment
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,983
|
|
—
|
|
1,983
|
Adoption of ASC 326,
net of tax
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
941
|
|
941
|
Net income
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
7,238
|
|
7,238
|
Balances at December
31, 2023
|
—
|
|
$
—
|
|
158,757,620
|
|
$
159
|
|
$
901,259
|
|
$
(916)
|
|
$
8,954
|
|
$
909,456
|
INTEGRAL AD SCIENCE HOLDING
CORP.
CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
|
|
Year ended December 31,
|
(IN
THOUSANDS)
|
2023
|
|
2022
|
Cash flows from
operating activities:
|
|
|
|
Net income
|
$
7,238
|
|
$
15,373
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
54,966
|
|
50,396
|
Stock-based
compensation
|
81,103
|
|
44,752
|
Foreign exchange
(gain) loss, net
|
(484)
|
|
5,233
|
Deferred tax
benefit
|
(21,531)
|
|
(8,880)
|
Amortization of debt
issuance costs
|
463
|
|
464
|
Allowance for credit
losses
|
3,816
|
|
1,837
|
Employee retention tax
credit
|
—
|
|
(6,981)
|
Impairment of
assets
|
33
|
|
974
|
Changes in operating
assets and liabilities:
|
|
|
|
Increase in accounts
receivable
|
(8,148)
|
|
(18,581)
|
Increase in unbilled
receivables
|
(4,685)
|
|
(5,830)
|
Decrease (increase) in
prepaid expenses and other current assets
|
6,418
|
|
(10,641)
|
Increase in operating
leases, net
|
(29)
|
|
(852)
|
Decrease (increase) in
other long-term assets
|
375
|
|
(1,057)
|
Increase in accounts
payable and accrued expenses and other long-term
liabilities
|
11,478
|
|
6,286
|
Increase (decrease) in
deferred revenue
|
582
|
|
(88)
|
Increase in due
to/from related party
|
28
|
|
62
|
Net cash provided by
operating activities
|
131,623
|
|
72,467
|
Cash flows from
investing activities:
|
|
|
|
Payment for
acquisitions, net of acquired cash
|
(966)
|
|
(1,603)
|
Purchase of property
and equipment
|
(1,975)
|
|
(2,016)
|
Acquisition and
development of internal use software and other
|
(31,777)
|
|
(14,673)
|
Net cash used in
investing activities
|
(34,718)
|
|
(18,292)
|
Cash flows from
financing activities:
|
|
|
|
Repayment of long-term
debt
|
(145,000)
|
|
(35,000)
|
Repayment of
short-term debt
|
—
|
|
(1,816)
|
Proceeds from the
Revolver
|
75,000
|
|
15,000
|
Proceeds from exercise
of stock options
|
7,989
|
|
7,155
|
Payments for
repurchase of common stock
|
—
|
|
(23,655)
|
Cash received from
Employee Stock Purchase Program (ESPP)
|
3,160
|
|
845
|
Net cash used in
financing activities
|
(58,851)
|
|
(37,471)
|
Net increase in cash,
cash equivalents, and restricted cash
|
38,054
|
|
16,704
|
Effect of exchange rate
changes on cash and cash equivalents, and restricted
cash
|
(435)
|
|
(3,111)
|
Cash, cash equivalents,
and restricted cash, at beginning of year
|
89,671
|
|
76,078
|
Cash, cash
equivalents, and restricted cash, at end of year
|
$ 127,290
|
|
$
89,671
|
Supplemental
Disclosures:
|
|
|
|
Cash paid during the
year for:
|
|
|
|
Interest
|
$
11,229
|
|
$
8,511
|
Taxes
|
$
10,985
|
|
$
16,396
|
Non-cash investing
and financing activities:
|
|
|
|
Property and equipment
acquired included in accounts payable
|
$
431
|
|
$
97
|
Internal use software
acquired included in accounts payable
|
$
1,444
|
|
$
1,517
|
Lease liabilities
arising from right of use assets
|
$
6,282
|
|
$
29,624
|
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/loss before depreciation and amortization, stock-based
compensation, interest expense, income taxes, restructuring and
severance costs, acquisition and integration costs, foreign
exchange gains and losses, 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, 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.
Reconciliation of historical Adjusted EBITDA and corresponding
margin to their most directly comparable GAAP financial measures,
net income/loss and corresponding margin 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 December
31,
|
|
Year
ended December
31,
|
(in thousands,
except percentages)
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net income
|
|
$
10,164
|
|
$
11,487
|
|
$
7,238
|
|
$ 15,373
|
Depreciation and
amortization
|
|
14,593
|
|
12,811
|
|
54,966
|
|
50,396
|
Stock-based
compensation
|
|
15,462
|
|
11,645
|
|
81,103
|
|
44,752
|
Interest expense,
net
|
|
2,489
|
|
3,194
|
|
12,236
|
|
9,053
|
Provision (benefit)
from income taxes
|
|
3,858
|
|
(7,371)
|
|
(2,382)
|
|
(2,288)
|
Restructuring and
severance costs
|
|
1,054
|
|
5,904
|
|
4,028
|
|
10,321
|
Acquisition and
integration costs
|
|
—
|
|
118
|
|
—
|
|
97
|
Foreign exchange (gain)
loss, net
|
|
(501)
|
|
1,246
|
|
430
|
|
4,798
|
Employee retention tax
credit
|
|
—
|
|
—
|
|
—
|
|
(6,981)
|
Offering costs,
impairments and other costs
|
|
396
|
|
1,003
|
|
1,913
|
|
1,058
|
Adjusted
EBITDA
|
|
$
47,515
|
|
$
40,037
|
|
$ 159,532
|
|
$
126,579
|
Revenue
|
|
$ 134,295
|
|
$ 117,435
|
|
$ 474,369
|
|
$
408,348
|
Net income
margin
|
|
8 %
|
|
10 %
|
|
2 %
|
|
4 %
|
Adjusted EBITDA
margin
|
|
35 %
|
|
34 %
|
|
34 %
|
|
31 %
|
Stock-Based
Compensation
|
|
|
Three months
ended December
31,
|
|
Year
ended December
31,
|
(in
thousands)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Cost of
revenue
|
$
124
|
|
$
249
|
|
$
452
|
|
$
507
|
Sales and
marketing
|
5,512
|
|
2,871
|
|
23,371
|
|
13,520
|
Technology and
development
|
4,104
|
|
2,958
|
|
17,538
|
|
9,937
|
General and
administrative
|
5,722
|
|
5,567
|
|
39,742
|
|
20,788
|
Total stock-based
compensation
|
$
15,462
|
|
$
11,645
|
|
$
81,103
|
|
$
44,752
|
Conference Call and Webcast Information
IAS will host
a conference call and live webcast to discuss its fourth quarter
and full year 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 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; (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 / Lauren Hartman
ir@integralads.com
Media Contact:
press@integralads.com
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SOURCE Integral Ad Science, Inc.