NASDAQ$IAS

Integral Ad Science Holding Corp · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Achieved strong results driven by optimization and measurement revenue growth, and expanded platform partnerships.

IAS reported a 19% increase in total revenue to $120.3 million for Q3 2023. The company experienced a net loss of $13.7 million, or $0.09 per share, but adjusted EBITDA increased to $40.6 million. The company is raising its full year 2023 financial outlook based on positive third quarter performance and business momentum in the fourth quarter.

  • Total revenue increased 19% to $120.3 million compared to the prior-year period.
  • Optimization revenue increased 21% to $57.0 million compared to the prior-year period.
  • Measurement revenue increased 23% to $47.8 million compared to the prior-year period.
  • Adjusted EBITDA increased to $40.6 million, a 35% increase compared to the prior-year period.

Headline financials

Total Revenue

$120M

Previous: $101M+18.7%
EPS (adj)

-$0.09

Previous: $0.00-1940.5%
Gross Profit Margin

79.0%

No prior period
Adjusted EBITDA Margin

34.0%

No prior period
Capital Expenditures

-$8.76M

Previous: $457K-2015.8%
Free Cash Flow

$21.9M

Previous: $23.9M-8.3%
Net Income

-$13.7M

Previous: $800K-1812.5%
Operating Income

$9.2M

Previous: -$2.31M+498.7%
Gross Profit

$94.7M

Previous: $82.2M+15.2%
Cash & Equivalents

$92.2M

Previous: $73.6M+25.3%
Total Assets

$1.17B

Previous: $1.13B+3.3%
R&D Expense

$17.2M

No prior period
Stock-Based Comp

$13.9M

Previous: $14.2M-2.4%

Revenue & EPS history

IAS · Revenue · Quarterly

$120M

Q3 2023+18.7%vs Q3 2022
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 introducing financial outlook for the fourth quarter of 2023 and increasing its full year 2023 outlook for revenue and adjusted EBITDA.

Tailwinds

  • Total revenue of $130 million to $132 million for the fourth quarter ending December 31, 2023
  • Adjusted EBITDA of $45 million to $47 million for the fourth quarter ending December 31, 2023
  • Total revenue of $470 million to $472 million for the year ending December 31, 2023
  • Adjusted EBITDA of $157 million to $159 million for the year ending December 31, 2023

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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