SINGAPORE — Integral Ad Science Holding Corp. (“IAS”) (Nasdaq: IAS), a global leader in digital media quality, today announced financial results for the third quarter ended September 30, 2021.
“We achieved impressive results in the third quarter as we deepened our partnerships with marketers, publishers, and platforms to maximize their target outcomes,” said Lisa Utzschneider, CEO of IAS. “IAS was first-to-market last year with programmatic contextual targeting solutions at scale. Even more customers adopted our Context Control offering this quarter as they prepare for a cookie-less world. In addition, we expect to advance our leadership in digital media quality in high-growth areas including CTV through our acquisition of Publica in the third quarter as well as in social media where we recently launched our brand safety solution for in-feed video ads on TikTok.”
Third Quarter 2021 Financial Highlights
- Total revenue was $79.0 million, a 32% increase compared to $60.0 million in the prior-year period.
- Advertiser direct revenue was $34.4 million, a 15% increase compared to $30.0 million in the prior-year period.
- Programmatic revenue was $33.7 million, a 49% increase compared to $22.6 million in the prior-year period.
- Supply side revenue increased to $10.8 million which includes a partial quarter contribution from Publica, compared to $7.3 million in the prior-year period.
- International revenue, excluding the Americas, was $28.7 million, a 25% increase compared to $22.9 million in the prior-year period, or 36% of total revenue for the third quarter of 2021.
- Gross profit was $65.2 million, a 31% increase compared to $49.8 million in the prior-year period. Gross profit margin was 82% for the third quarter of 2021.
- Net loss was $9.8 million, or $0.06 per share, compared to a net loss of $4.4 million, or $0.03 per share, in the prior-year-period.
- Adjusted EBITDA* increased to $25.4 million compared to $18.5 million in the prior-year period. Adjusted EBITDA* margin was 32% for the third quarter of 2021.
- Cash and cash equivalents were $63.8 million at September 30, 2021. During the third quarter, IAS replaced its existing credit facility with a new $300 million credit facility on more favorable terms.
Recent Business Highlights
- IAS has been accredited by the Media Rating Council (MRC) for impression and viewability measurement and reporting of display and video ads across Facebook and Instagram. The accreditation is further recognition of marketers’ reliance on IAS and its advanced technology to drive much-needed transparency along with greater outcomes for their campaigns on social platforms.
- IAS launched IAS Signal, its new unified global reporting platform that delivers the data and insights advertisers and publishers need to manage their digital campaigns. IAS Signal incorporates several feature updates into one powerful platform, while setting a foundation for future innovation.
- IAS launched its new brand safety solution for in-feed video ads on TikTok, initially available in the U.S., France, and Germany, with additional markets expected soon. Brands including L’Oreal participated in the successful beta program.
- IAS released its latest Media Quality Report for H1 2021. The report showed that advertisers across the Americas achieved brand safety wins, while connected TV (CTV) viewability rates remained strong and desktop ads were more susceptible to ad fraud issues globally.
- IAS was the first ad verification provider to partner with the Global Disinformation Index (GDI) to help marketers avoid misinformation content based on GDI’s standards. This partnership is the latest example of how IAS protects brands from running ads on sites that have been identified for misinformation.
- Innovid expanded its partnership with IAS to maximize cross-device measurement, including CTV. IAS’s unified video solution gives Innovid clients access to reporting based on IAS metrics for invalid traffic as well as additional performance data.
- Viant expanded its partnership with IAS and integrated IAS’s CTV fraud pre-bid solution into the Adelphic DSP to enhance CTV fraud protection capabilities for brands and agencies.
- Publica continued to forge strong partnerships across the CTV landscape and announced new integrations with LiveRamp and Smart AdServer.
Financial Outlook
“We continued to drive revenue and margin performance in the third quarter while investing in our technology and people,” said Joe Pergola, CFO of IAS. “We realized double-digit growth in the period and extended our global footprint in new and existing markets. We also strengthened our balance sheet by improving our leverage ratio with access to capital on more favorable terms. Looking forward to our fourth quarter and the holiday season, we expect to continue our business momentum as highlighted by our increased full-year outlook.”
IAS is providing the following financial guidance for the fourth quarter of 2021 and increasing its full-year outlook:
Quarter Ending December 31, 2021:
- Total revenue in the range of $94 million to $96 million
- Adjusted EBITDA* in the range of $28 million to $30 million
Year Ending December 31, 2021:
- Total revenue in the range of $315 million to $317 million
- Adjusted EBITDA* in the range of $98 million to $100 million
* See “Supplemental Disclosure Regarding Non-GAAP Financial Information” section herein for an explanation of these measures. Refer page 3 – 9 HERE.
