Total revenue increased 34% to $100.3 million; programmatic revenue increased 51%

Net income of $2.0 million, or $0.01 per share at a 2% margin; adjusted EBITDA increased to $31.6 million at a 31% margin

NEW YORK – August 4, 2022 – Integral Ad Science Holding Corp. (Nasdaq: IAS), a global leader in digital media quality, today announced financial results for the second quarter ended June 30, 2022.

“We exceeded our outlook for the second quarter with 34% revenue growth and strong profitability,” said Lisa Utzschneider, CEO of IAS. “Marketers trust IAS as an independent provider of verification, targeting, and optimization solutions. Our programmatic revenue grew 51% in the second quarter driven by continued adoption of Context Control.”

Second Quarter 2022 Financial Highlights

• Total revenue increased 34% to $100.3 million compared to $75.1 million in the prior-year period. Second quarter 2022 results include the contribution from Publica, acquired in the third quarter of 2021.

• Programmatic revenue was $47.9 million, a 51% increase compared to $31.8 million in the prior-year period. 

• Advertiser direct revenue was $36.6 million, a 4% increase compared to $35.3 million in the prior-year period.

• Supply side revenue increased to $15.8 million compared to $8.0 million in the prior-year period.

• International revenue, excluding the Americas, was $31.6 million, a 7% increase compared to $29.6 million in the prior-year period, or 31% of total revenue for the second quarter of 2022.

• Gross profit was $82.2 million, a 32% increase compared to $62.2 million in the prior-year period. Gross profit margin was 82% for the second quarter of 2022.

• Net income was $2.0 million, or $0.01 per share, compared to a net loss of $(35.1) million, or $(0.26) per share, in the prior-year-period. Net income margin was 2% for the second quarter of 2022.

• Adjusted EBITDA* increased to $31.6 million, a 23% increase compared to $25.7 million in the prior-year period. Adjusted EBITDA* margin was 31% for the second quarter of 2022.

• Cash and cash equivalents were $77.4 million at June 30, 2022.

Recent Business Highlights

• IAS announced that Thomas Joseph will join the firm as its Chief Technology Officer, effective August 8, 2022. Joseph will lead the engineering team to develop and scale new offerings while continuing to evolve existing products. Joseph brings over two decades of tech-industry leadership with SiriusXM and Pandora as well as with Microsoft. He has extensive experience working in media, advertising and emerging platforms including gaming.

• IAS expanded its integration with Mediaocean’s Prisma, Mediaocean’s buyer workflow. Brands that use Prisma, IAS Signal, and Google Campaign Manager 360 will be able to link campaigns and enable auto-tagging via Google seamlessly. The expansion is expected to have an immediate impact on campaign and workflow efficiency for ad buyers across the globe.

• IAS announced a partnership with Anzu, an in-game advertising leader. This partnership enables global brands and agencies to effectively monitor the quality of their in-game media investments in mobile gaming environments. Through this collaboration, IAS provides advertisers with invalid traffic (IVT) measurement and reports on viewability through the IAS Signal platform.

• IAS extended its reach in digital audio with announced global partnerships with Spotify and Pandora. IAS and Spotify plan to establish a first-ever brand safety solution for podcast advertisers based on GARM brand safety and suitability categories. The announcement was followed by the launch of IAS’s audibility verification and IVT measurement solutions on Pandora, which help brands validate their media spend.
  
  
• IAS has been selected by LinkedIn to provide ad verification services, including viewability, fraud, and brand safety for its global paid media marketing campaigns across platforms.
  
  
• IAS launched its Quality Sync Pre-bid solution with Xandr’s Invest DSP. This solution allows advertisers to seamlessly mirror their post-bid advertising campaign settings with their pre-bid settings.
  
  
• IAS partnered with Clinch to launch its industry-leading automated tag wrapping solution. Advertisers can easily activate IAS’s verification solutions across all campaigns in Flight Control, Clinch’s omnichannel campaign management platform.
  
  
• IAS announced enhancements to IAS Signal that incorporates the Total Visibility solution via a new and improved dashboard. Marketers can access critical insights into their supply paths in one reporting platform, simplifying how they analyze and manage campaign performance.
  
  

Financial Outlook

Utzschneider commented, “We are revising our full-year outlook to reflect the current macroeconomic environment. We expect full-year 2022 revenue growth of approximately 24% compared to 2021, and we are maintaining our adjusted EBITDA margin outlook for 2022 at prior levels of approximately 31% based on the midpoint of our revised guidance ranges, reinforcing the profitable and durable nature of our business model.”

IAS expects revenue and adjusted EBITDA for the third quarter and full-year 2022 in the following ranges:

Third Quarter Ending September 30, 2022:

• Total revenue of $99 million to $101 million
• Adjusted EBITDA* of $28 million to $30 million

Year Ending December 31, 2022:

• Total revenue of $398 million to $402 million
• Adjusted EBITDA* of $120 million to $124 million