NASDAQ$IAS

Integral Ad Science Holding Corp · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported positive fourth quarter results with growth across all business lines.

IAS reported a 15% increase in fourth-quarter revenue, reaching $117.4 million. Net income increased to $11.5 million, with adjusted EBITDA growing by 20% to $40.0 million.

  • Total revenue was $117.4 million, a 15% increase compared to the prior-year period.
  • Programmatic revenue was $55.1 million, a 30% increase compared to the prior-year period.
  • Net income was $11.5 million, or $0.07 per share, compared to a net loss of $(4.8) million, or $(0.03) per share, in the prior-year-period.
  • Adjusted EBITDA was $40.0 million, a 20% increase compared to the prior-year period.

Headline financials

Total Revenue

$117M

Previous: $102M+14.6%
EPS (adj)

$0.07

Previous: -$0.03+333.3%
Capital Expenditures

$1.1M

Previous: $319K+244.5%
Free Cash Flow

$23.8M

Previous: $25.6M-7.1%
Net Income

$11.5M

Previous: -$4.82M+338.5%
Operating Income

$7.31M

Previous: -$2.14M+441.4%
Gross Profit

$95.5M

Previous: $86.1M+10.9%
Cash & Equivalents

$86.9M

Previous: $73.2M+18.7%
Total Assets

$1.17B

Previous: $1.13B+3.5%
Stock-Based Comp

$11.6M

Previous: $9.09M+28.1%

Revenue & EPS history

IAS · Revenue · Quarterly

$117M

Q4 2022+14.6%vs Q4 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 revenue and adjusted EBITDA for the first quarter and full year 2023.

Tailwinds

  • Total revenue of $102 million to $104 million for the first quarter ending March 31, 2023
  • Adjusted EBITDA of $29 million to $31 million for the first quarter ending March 31, 2023
  • Total revenue of $453 million to $463 million for the year ending December 31, 2023
  • Adjusted EBITDA of $141 million to $149 million for the year ending December 31, 2023
  • Expect adjusted EBITDA margin improvement resulting from our more streamlined and efficient operations

Headwinds

  • IAS is unable to provide a reconciliation for forward-looking guidance of Adjusted EBITDA and corresponding margin to net income (loss) and corresponding margin
  • 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 first quarter of 2023 in the range of $11 million to $13 million
  • Stock-based compensation expense for the full year 2023 in the range of $62 million to $66 million
  • A reconciliation is not available without unreasonable effort

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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