NASDAQ$IAS

Integral Ad Science Holding Corp · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

IAS increased revenue at a double-digit rate driven by industry-leading products and new customers, with strong adjusted EBITDA performance.

IAS reported an 11% increase in total revenue to $133.5 million for Q3 2024. Net income was $16.1 million, representing a 12% margin, and adjusted EBITDA increased to $50.6 million, resulting in a 38% margin.

  • Total revenue increased by 11% year-over-year to $133.5 million.
  • Net income reached $16.1 million, with a 12% margin.
  • Adjusted EBITDA increased to $50.6 million, achieving a 38% margin.
  • IAS announced first-to-market optimization solution for Meta.

Headline financials

Total Revenue

$134M

Previous: $120M+11.0%
EPS (adj)

$0.10

Previous: -$0.09+211.1%
Gross Profit Margin

80.0%

Previous: 79.0%+1.3%
Net Income Margin

12.0%

No prior period
Adjusted EBITDA Margin

38.0%

Previous: 34.0%+11.8%
Capital Expenditures

-$10.3M

Previous: -$8.76M-17.7%
Net Income

$16.1M

Previous: -$13.7M+217.5%
Operating Income

$20.2M

Previous: $9.2M+119.4%
Gross Profit

$106M

Previous: $94.7M+12.1%
R&D Expense

$16.8M

Previous: $17.2M-2.2%
Stock-Based Comp

$16.4M

Previous: $13.9M+18.3%

Revenue & EPS history

IAS · Revenue · Quarterly

$134M

Q3 2024+11%vs Q3 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 updated its financial outlook for the full year, reflecting its third quarter performance and anticipated advertising demand in the fourth quarter.

Tailwinds

  • Total revenue of $148 million to $150 million for Q4 2024.
  • Adjusted EBITDA of $55 million to $57 million for Q4 2024.
  • Total revenue of $525 million to $527 million for the year ending 2024.
  • Adjusted EBITDA of $185 million to $187 million for the year ending 2024.
  • Healthy cash flows and low debt will continue to support business investments and growth.

Headwinds

  • Anticipated advertising demand in the fourth quarter is a factor in the updated financial outlook.
  • The company is unable to provide a reconciliation for forward-looking guidance of adjusted EBITDA and corresponding margin to net income (loss) without unreasonable effort.
  • 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.
  • Stock-based compensation expense for the fourth quarter of 2024 is expected to be in the range of $15 million to $16 million.
  • Stock-based compensation expense for the full year 2024 is expected to be in the range of $62 million to $63 million.

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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