NASDAQ$IAS

Integral Ad Science Holding Corp · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported strong fourth-quarter performance with revenue increase and adjusted EBITDA margin.

IAS reported a 14% increase in fourth-quarter revenue to $134.3 million and a 19% increase in adjusted EBITDA to $47.5 million. The company's social media revenue increased by 37% during the quarter. IAS expects to deliver double-digit revenue growth for the full year 2024.

  • Total revenue increased by 14% year-over-year to $134.3 million.
  • Net income was $10.2 million, representing an 8% margin.
  • Adjusted EBITDA increased by 19% year-over-year to $47.5 million, with a 35% margin.
  • Social media revenue grew by 37%.

Headline financials

Total Revenue

$134M

Previous: $117M+14.4%
EPS (adj)

$0.06

Previous: $0.07-14.3%
Capital Expenditures

-$8.26M

Previous: $1.1M-851.5%
Net Income

$10.2M

Previous: $11.5M-11.6%
Operating Income

$16.5M

Previous: $7.31M+125.9%
Gross Profit

$106M

Previous: $95.5M+11.0%
R&D Expense

$19.1M

No prior period
Stock-Based Comp

$15.5M

Previous: $11.6M+32.8%

Revenue & EPS history

IAS · Revenue · Quarterly

$134M

Q4 2023+14.4%vs Q4 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 provided financial outlook for the first quarter and full year 2024, expecting revenue growth and profitability to ramp up throughout the year.

Tailwinds

  • Total revenue of $111 million to $113 million for Q1 2024.
  • Adjusted EBITDA of $28 million to $30 million for Q1 2024.
  • Total revenue of $530 million to $540 million for the full year 2024.
  • Adjusted EBITDA of $171 million to $179 million for the full year 2024.
  • Expects to ramp both revenue growth and profitability from forecasted first quarter levels as new products become available.

Headwinds

  • IAS is unable to provide a reconciliation for forward-looking guidance of Adjusted EBITDA to net income (loss)
  • Certain material reconciling items, such as depreciation and amortization, interest expense, income tax expense (benefit), restructuring and severance costs, and acquisition and integration costs, cannot be estimated due to factors outside of IAS's control
  • Estimates stock-based compensation expense for the first quarter of 2024 in the range of $14 million to $16 million
  • Estimates stock-based compensation expense for the full year 2024 in the range of $72 million to $76 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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