NASDAQ$IAS

Integral Ad Science Holding Corp · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported second quarter results with revenue growth and strong profitability.

IAS reported strong second quarter 2022 financial results, with total revenue increasing by 34% to $100.3 million and programmatic revenue increasing by 51%. The company's net income was $2.0 million, or $0.01 per share, and adjusted EBITDA increased to $31.6 million.

  • Total revenue increased 34% to $100.3 million.
  • Programmatic revenue increased 51% to $47.9 million.
  • Net income was $2.0 million, or $0.01 per share.
  • Adjusted EBITDA increased to $31.6 million.

Headline financials

Total Revenue

$100M

Previous: $75.1M+33.6%
EPS (adj)

$0.01

Previous: -$0.26+103.8%
Gross Profit Margin

82.0%

No prior period
Net Income Margin

2.0%

No prior period
Adjusted EBITDA Margin

31.0%

No prior period
Capital Expenditures

$132K

Previous: $318K-58.5%
Free Cash Flow

$11.9M

Previous: $25M-52.5%
Net Income

$2M

Previous: -$35.1M+105.7%
Operating Income

$6.75M

Previous: -$32.9M+120.5%
Gross Profit

$82.2M

Previous: $62.2M+32.3%
Cash & Equivalents

$77.4M

Previous: $73.2M+5.7%
Total Assets

$1.14B

Previous: $852M+34.0%
Stock-Based Comp

$10.7M

Previous: $41.5M-74.2%

Revenue & EPS history

IAS · Revenue · Quarterly

$100M

Q2 2022+33.6%vs Q2 2021
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

IAS · $120M total across 3 segments · Q3 2023

  • Optimization Revenue
    $57M
  • Measurement Revenue
    $47.8M
  • Publisher Revenue
    $15.5M

Forward guidance

IAS expects full-year 2022 revenue growth of approximately 24% compared to 2021, and is maintaining its adjusted EBITDA margin outlook for 2022 at prior levels of approximately 31%.

Tailwinds

  • Expects full-year 2022 revenue growth of approximately 24% compared to 2021.
  • Maintaining adjusted EBITDA margin outlook for 2022 at prior levels of approximately 31%.
  • Third Quarter 2022 Total revenue of $99 million to $101 million.
  • Third Quarter 2022 Adjusted EBITDA of $28 million to $30 million.
  • Year Ending December 31, 2022 Total revenue of $398 million to $402 million.

Headwinds

  • Reflecting the current macroeconomic environment.
  • IAS is unable to provide a reconciliation for forward-looking guidance of Adjusted EBITDA and corresponding margin to net income (loss) and corresponding margin, the most closely comparable GAAP measures, 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.
  • IAS estimates stock-based compensation expense for the third quarter of 2022 in the range of $13.5 million to $15 million and for the full year 2022 in the range of $46 million to $50 million.
  • A reconciliation is not available without unreasonable effort.
  • All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that we expected

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 3 quarterly earnings reports

Historical avg

+3.2%

Avg return

Earnings day

+4.2%

Avg return

5 days after

+3.8%

Avg return

30 days after

64%

14 / 22 earnings

Positive

+34.4%

Q3 2022

Best reaction

-40.7%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025
Q3 2025+0.0%+0.1%+0.3%
Q2 2025+13.0%+13.5%+9.8%
Q1 2025-0.2%-1.0%+1.2%
Q4 2024+9.0%
Q3 2024-15.2%
Q2 2024+11.3%
Q1 2024+13.9%
Q4 2023-40.7%
Q3 2023+20.8%
Q2 2023-19.4%
Q1 2023+6.4%
Q4 2022+13.2%
Q3 2022+34.4%
Q2 2022-7.5%
Q1 2021+5.8%
Q1 2022+5.8%
Q4 2019-1.5%
Q4 2021-1.5%
Q3 2021+7.9%
Q3 2020+7.9%
Q4 2020+3.5%
Q2 2021+3.5%
Q2 2020
Q1 2020

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