NASDAQ$IAS

Integral Ad Science Holding Corp · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported double-digit revenue growth across all businesses, driven by strong customer adoption of AI-backed products. Raised full year financial guidance due to positive second quarter results and a strong second half outlook.

IAS reported a 14% increase in total revenue to $129.0 million for the second quarter of 2024. Net income was $7.7 million, representing a 6% margin. The company is raising its full-year financial guidance.

  • Total revenue increased by 14% to $129.0 million compared to the prior-year period.
  • Measurement revenue grew by 17%, with a 34% increase in social media revenue.
  • Optimization revenue increased by 11% compared to the prior-year period.
  • Adjusted EBITDA increased to $46.2 million, a 24% increase compared to the prior-year period, representing a 36% margin.

Headline financials

Total Revenue

$129M

Previous: $114M+13.5%
EPS (adj)

$0.05

Previous: $0.05+0.0%
Net Income Margin

6.0%

Previous: 7.0%-14.3%
Adjusted EBITDA Margin

36.0%

Previous: 33.0%+9.1%
Capital Expenditures

-$9.87M

Previous: $528K-1968.9%
Net Income

$7.7M

Previous: $7.7M+0.0%
Operating Income

$14.1M

Previous: -$18.2M+177.7%
Gross Profit

$102M

Previous: $89.8M+13.5%
R&D Expense

$17.5M

No prior period
Stock-Based Comp

$15M

Previous: $40.4M-62.9%

Revenue & EPS history

IAS · Revenue · Quarterly

$129M

Q2 2024+13.5%vs Q2 2023
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 is providing the following financial outlook for the third quarter of 2024 and increasing its full year 2024 revenue and adjusted EBITDA outlook.

Tailwinds

  • Total revenue of $137 million to $139 million for Q3 2024.
  • Adjusted EBITDA of $48 million to $50 million for Q3 2024.
  • Total revenue of $538 million to $544 million for the year ending December 31, 2024.
  • Adjusted EBITDA of $180 million to $184 million for the year ending December 31, 2024.
  • Stock-based compensation expense for the third quarter of 2024 is expected to be in the range of $16 million to $17 million.

Headwinds

  • IAS is unable to provide a reconciliation for forward-looking guidance of adjusted EBITDA and corresponding margin to net income (loss).
  • 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.
  • These items could have a material impact on the reported results.
  • Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those expected.
  • Do 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.

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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