Earnings call transcript Q2 2023

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Operator

Good day, and thank you for standing by. Welcome to the IAS Q2 2023 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. to Schaffer, conference at Head like speaker to IAS. now Jonathan today of would hand over the your I Investor Relations

Jonathan Schaffer

second Utzschneider, CEO; Thank the Tania Secor call. and afternoon, and joined quarter XXXX I'm Lisa you. conference financial by welcome today CFO. results Good IAS to

more prepared at on to differ about we filings the actual details Before and with please investors.integralads.com our statements. uncertainties forward-looking the cause expectations. that note contain begin, posted investor materially company's site relations We for call SEC and could risks today's remarks refer our important from you that to results

earnings We refer investor relations available All also most call. to prior-year on financial on today's site. the otherwise noted comparisons the A today's reconciliation directly on comparable will is are release non-GAAP non-GAAP period. measures based measures to our of GAAP unless measures in contained

to over Lisa with formalities now out of the begin. Lisa Utzschneider. I'd way, CEO, call turn like you our So the may these to

Lisa Utzschneider

Thanks $XXX.X to call. of our We Adjusted to increased Jonathan, second million. second ahead quarter million $XX prior revenue positive with at to results everyone $XXX quarter performance XX% prior million margin. exceeding of and outlook a $XXX reported our EBITDA outlook to million XXXX of of million $XX.X million our welcome $XX

and million. are the $XXX midpoint raising We expect full-year continued of outlook revenue growth and to strong we half the of profitability in the year, second revenue our

to they these Haleon. featured media Total critical team partners in event through affirmed close showcased to the technology IAS day delighted partners Media The our our was TikTok, were we first including our leadership solutions. as and demos day. June, our and of also Quality product Mindshare, highlighted CTV In ecosystem. analyst role digital investor talented our participate IAS and host have The thrilled differentiated and

best-in-class verification a place Haleon provider, their portfolio IAS as healthcare, of trust formerly global Our view great consumer leverages their selected brands end-to-end partners of one. IAS’s for four XXX is with XX to partnership IAS. scale an in Haleon, their in Haleon example markets. technology and going over GSK from how marketers of global

a We brand the unveiled refreshed investor strategy day. also at

as Our platform. a optimization global IAS’s measurement and standing media reinforces new leading branding

is advertisers most data to and global to mission Our provide the superior actionable results. publishers drive

of part we solutions our when publisher measurement, refer which and programmatic, rebranding, As replace and direct, advertiser the respectively. speaking side, business about optimization, supply will to

against we global Building on following our head-to-head quarters, new opportunities, providers other major diligence client momentum business continue win product often prior from due tech to and

news strategic We're of excited over ad L’Oréal's share their XX expanding YouTube for IAS the worldwide. reach of leveraged selection will global encompass verification, as IAS to our markets be partner to for safety across product reflects of also TV effectiveness, within various robust but Connected L’Oreal’s to especially measures brand our including other Amazon. platforms. IAS choice and social and media TikTok bolster channels, roadmap's

quarter, Electronics, and in largest company momentum consumer drove including the with innovator Singtel, telecommunications APAC During region Maruti wins the in and technology automotive manufacturer. a we global electronics, largest Singapore, India’s in Suzuki, the recent LG

focus for we In we the on growth laying the are accelerated as social We results groundwork right continue to see globally. areas. revenue media,

As generating are we solutions that growth, form are launch TikTok, YouTube user their for providing video-based Meta, and unprecedented short platforms. critical products

growth technology a differentiated accelerated in investing marketer of are increased effect getting and We that creating and is flywheel smarter demand.

text. for in video social adoption expand AI provide or content and we platforms audio, TMQ, our product media live of feeds availability of TMQ Media into strong social We Total insights ML through the into uses markets. new as are image, media to frame-level realizing Quality, analysis and

now and suitable. social year. support of that to over to are brand and media languages AI, is appearing their buys media content ability quality feeds the next this up earlier we from have ads languages just live four Marketers XX safe ensure on monitor the By globally, their leveraging

In terms to were the of advertisers our than with IAS XX markets. in quarter, up TikTok of suitability more the other TMQ quarter TikTok available significant brand Post-bid TMQ expansion a announced measurement XX% recent first during campaigns second now quarter from product. highlights, XXXX. in is of the safety and

out In Meta's June, viewability IAS rapidly Measurement, Instagram feed inventory. tools Reels Reels. and Invalid rolled IVT, now Viewability for measurement will growing for Traffic and video provide Facebook IAS or

forward of that to all ads suitability verify are verification brand Separately, on this Safety to users. year. their look by Brand and expansion can seen Advertisers real partners later we Feed the Suitability

the provide Video products Partners, advertisers We to into expand content TMQ Shorts our or YouTube solution to capabilities their shown. We've YouTube Google insight with of GVP. expanded greater our type and continue measurement to are ads

providing IAS is is IVT measurement measurement IAS and GARM-aligned and YouTube for Shorts' viewability market to providing brand now on inventory. first inventory. suitability GVP safety

enables with advertisers YouTube mobile GVP share publisher confidence. to with solution Our on apps beyond websites video ads and

valuable our for one across a for is and innovating media marketers. provides are marketers. of retail capabilities expanding fastest-growing and measurement the nine XX channels advertising medium top has the in and we the actively of Retail media coverage become networks, IAS space

fraud, with We validate enable division further on and to to brand help are Uber’s partner campaigns Ads Uber's performance advertising. will Uber of Journey brand IAS advertising verify transparency safety excited and clients. to effectiveness viewability, to

retail can and partnership IVT onsite viewability first-to-market network across with users Criteo. critical so partners, real channel. our engagement announced reach maximize we of and will Criteo's that across enable addition, this media In measurement IAS marketers

in brings joins to Management. Sam welcomed and and and deep and Amazon most technology recently Product us SVP product global Cox as we strategy execution optimization, from In experience trading, solutions. Google. programmatic of oversees for and IAS's advertising Sam IAS exchange-based optimization He

help strategic targeted Research to and their capabilities outcomes. metrics attention media continue In a we Lumen our IAS's data marketers eye-tracking develop We May, combine Lumen's announced to spend and with achieve with optimize actionable expertise. to attention partnership

rates boosting scale and launched Quality Quality conversion. Attention post-bid without engagement driving our quality issues, on is higher we June, driving higher In Attention product. measurement focused impressions,

consumers platforms. grow In CTV, as ad-supported adopt continues more the industry to

received IAS side: accreditation first impressions has Council CTV measurement the the industry's from Rating viewable Media for the or MRC. On

as as partnered TMQ receiving suitability, with and CTV. safety well CTV the earned is industry's for measurement to-date IAS for brand launch IAS accreditation accreditation also first company only to IRIS.TV the impressions. suitability video-level for this MRC have CTV-rendered brand to

on filters with marketers help CTV aligned provide partnered their with GARM will shift OneView IVT its to pre-bid IAS on IAS the DSP. accelerate to reporting advertisers streaming integrated Roku buys framework. to We TV Roku's with confidence.

Advertising device Watermark In addition, IAS CTV. Roku's combat spoofing on to supports

Publica a are experience. familiar, optimize on yield ad-break leveraging ad providing unified including server, stitching auction, SSAI inventory an by TV-like, our consumers publisher our By helping we customers unique ad capabilities, assets and their

that first Publisher part be Certification excited Services the of is TV. are certified Publica one streaming Server We as Ad to for of Program Amazon

DraftKings network, to of selected CTV server power has programmatic has their DraftKings as Network Publica recently world’s and their ad Publica leading they launch selected break into music announced the primary Vevo, launch as help landscape. video the the ad streaming globally. them decisioning

to priority IAS business, campaign in with the for XD other provide by solution IAS. Turning our to is the viewability XD a industry's authenticating environments. their will monitor for performance measurement strengthened of areas Sustainability and in-game first Anzu help IAS improve partnership marketers advertising.

into to their lower emissions Recently sustainability IAS footprint and leverage With to carbon reporting. data their can collect campaign emissions. to reduce transparency carbon and and partnered provide spend IAS marketers own ScopeX optimize

participating and The those by with ad addition, Index Exchange partnership OpenRTB programmatic Publica carbon The data. emissions adopting in ScopeX findings CTV study. highlighted of support the selection Desk released Trade In for X.X XX% research sustainability powered advertising in indicating results to an in in benefits decrease the

the reduce partnership, the also to platforms and working industry We Ad advertising advertising carbon footprint IAS help joined Through to the alongside reduce advertising's not-for-profit Zero Net the to to industry. carbon work the that biggest drive coalition impact net-zero. for will advertising agencies change is and this

on and AI placing In increased Lions scrutiny leveraging today's tremendous are this every how on and increase excitement with June quality heard efficacy. Cannes media We ML environment, invested to repeatedly accuracy marketers dollar. around at greater are and ROI with we in ad efficiency even

increasingly meet media portfolio create particularly video. to is engagement like media actionable goal platforms customers' broad product and channels fast innovating major for The consumers in a data. social are in with to Our needs CTV growing based evolving on greater our

to even these are that time. for adoption We this roadmap opportunity into with scale our We of greater believe may offerings. translate drive our platforms accelerating IAS over product at massive

to expectations exceeded the half review of call to quarter we the forward profitable conclude, revenue with for over our turn look delivering the Tania second in financials. the To that, And I'll to the and second growth year.

Tania Secor

of welcome, and of growth profitable Lisa coming ahead our prior solid quarter everyone. Thanks, another off outlook. We're

point second XXX the improvement generated quarter, a and double-digit XX%. margin year-over-year revenue growth to During basis in adjusted EBITDA we

measurement revenue with for adoption our quarter the marketer our products quarter industry million. Revenue second Total growth demand We growth $XXX.X quarter. realized products across increased the and XX% increased media the revenue to optimization notably outpacing social most the trends. measurement mix second second reflects for of in in

line grew contribution period wins the Context in CPG by Optimization reflects $XX.X growth clients. as maturing known revenue demand strength programmatic in prior and year-over-year slower the the our vertical partially Optimization second the in growth quarter logo million. offset XX% expectations, with revenue formerly to tech/telco Control from revenue from in new

investing our We in of adoption to optimization are drive continued offerings.

enhancing engine. product both go-to-market are our and capabilities We

was measurement quarter from a XX% large XX% The XXXX. in of growth the revenue media $XX.X impressive an spend formerly from higher advertiser adoption of social web marketers first new million, as revenue and volumes and contribution ongoing increase open Measurement existing and to direct known growth. grew the to acceleration increase advertisers, attributable of revenue as our growth in products, CTV year-over-year

Social XX% the our in XX% quarter, as revenue first YouTube. and driven Year-over-year measurement from as well quarter solutions was second TikTok, the for and by growth revenue XXXX. double-digit growth of of media represented in Meta revenue measurement up in grew XX%

the from revenue up XX% in of second XXXX. total in revenue Social quarter, media quarter represented first the of XX%

from accounted display pricing Video, XX% the revenue revenue for of represented second advertisers second a in quarter the first Video measurement premium of which in XXXX. XX% and a optimization On in up grew the revenue combined measurement of including quarter. quarter quarter, second XX% revenue. to from total XX% basis, commands

a formerly known performance to quarter of our side Publica non-CTV a increased of revenue. of side growth Publisher $XX.X XX% adoption revenue by revenue as was the year-over-year EMEA as quarter. XX% period. XX% of grew offerings second markets. offset emerging the result Americas total supply revenue performed the well, new increase excluding in in revenue revenue in Publisher million our particular businesses. represented wins, business and supply in second Europe the revenue investments in International fueling

global and the including L'Oreal, Singtel, our quarter second wins that Maruti of referenced LG Electronics, strength Suzuki reflect international The Lisa earlier presence.

infrastructure data us the keeping costs. to our XX% to Gross quarter and and XX% our hosting on realize second was increased investment profit margin reflecting of expectation track full-year for XX% in

expect We margin to the scale optimize as our time. of we offerings profit over gross

During related or S-X second recognized the a stock of quarter, quarter, probable. we expense RTOs. the $XX.X the May, were by Form expense to of period. changing the performance triggered the and implied of The exercised or options compensation filing no stock-based in registration was on statement shelf target million RTOs the fully were The during RTOs to in vested be expensed the RTOs return

for and line RTO expense, Sales development $XX.X administrative second period Excluding compensation including million prior general and expenses with and expense the expectation. million our quarter. increased the combined, marketing, stock-based million to and $XX.X the in $XX.X technology was in the

ahead Adjusted Net million $X.XX in tax million items or EBITDA a of quarter excludes million. the the RTO prior per the as of was $XX.X share, which for to $XX.X for our outlook. the quarter, benefit the margin EBITDA of million one-time includes year-over-year compensation as well stock-based income and $X.X Adjusted increased second period. second XX% $XX.X which was XX% midpoint expense

our to Turning performance metrics.

advertising Second was customers. our revenue revenue The and sequentially, compared annual to over increased XXX with quarter retention large of number customers from XXXX. XXX% of grow net to NRR, or year first up XXX ability to $XXX,XXX XXX reflecting in last total with quarter our the

XX% business from healthy of advertising revenue cash of our at customers period, was that strong of the balance while Revenue XX% the flexibility advertising end with us March lowering the with total the maintain sheet, to XX from and conversion from invest the a provides unchanged financial at the XXXX. We debt. of in long-term up end quarter flow second of large growth

cash $XX Cash equivalents were quarter second end the and of the million. at

debt During our long-term million $XXX in debt million of $XX net by the reduced we quarter, to million. $XX resulting

quarter midpoint. is guidance, September for million or Adjusted third range. the $XXX for range third EBITDA margin XXXX to XX, of midpoint $XX a the the the of million $XXX $XX at XX% year-over-year growth expected the XX% total we million, expect Turning in quarter of at to range revenue a ending in rate the the million to

we the range EBITDA ranges. year- million of midpoint are $XXX full-year at expect revenue adjusted XX% midpoint total and in the or XXXX, range. We For our the the increasing revenue million the over-year $XXX growth, now to of of

the EBITDA midpoint for to $XXX million XX% margin We expect at XXXX, full-year adjusted $XXX adjusted of or EBITDA range. of the the a million

points. few additional A

expect for to of XX% to continue We full XX% gross the margin year. range in the profit

compensation expense is stock-based the $XX $XX which now the $XX quarter range million. to expense, Third expected stock-based includes $XX in million. compensation range expected million million is Full-year of in of to the expense, RTO

for shares million full for XXX the average to million shares weighted to quarter expect outstanding of year. We and range XXX million million third XXX XXX shares the the in

the and in to on our double-digit outlook adjusted our reflect momentum of half with outlook, back full-year margin. the in EBITDA second we've revenue pleased of for quarter, increased the and expanded We're have We're our excited exceeded growth to the year business. partnerships to midpoint revenue our build continued

We long-term condition. financial our growth, while in and our cost continue structure invest efficiently strengthening sustainable managing to

are I, take and now your questions. Lisa ready Operator? to

Operator

you. Thank

Oppenheimer. now And Instructions] Jason from question-and-answer first with our comes question [Operator conduct session. will We Helfstein a

Jason Helfstein

Thanks. Hi, and everybody. almost platforms. with all of major Lisa, expanded you've relationship launched ton a the products IAS'

with when help platform think what your for then, does are coverage maybe on spend. who the years us work. something And Just you let's two or how of don't the across know, help say, inning understand, largest I their us cadence clients about been kind they

So of understand new like this on, kind turn with you. as on? offer do like this turn renewals, you clients? do help capability budget how Does as it like once they upon soon Thank year? they evolves happen us Just a

Lisa Utzschneider

question. Great Jason. Thanks Sure.

XXX our with they look to a So, us I product you they measurement global map. very -- prioritizing Fortune is road but evolution agree the think and at in usually right velocity typically with the We're the about launch optimization bets after launch our our we're innovation completely investing first in when when take way you accounts areas. on on especially And with high that. focused

the platforms. the tech The And are media. platforms are users their areas prioritizing where time with spending tech we're large in like where social large especially are

Total platforms whether those are Quality it's So right Meta with a lot the and of ecosystem. products Reels, YouTube about Shorts, digital TikTok you hear the YouTube now largest in Media the

and especially QX. measurement major I adoption is the particular. our for in doubling social rates in in that where a we're that those on down look has a That take before So, of platforms few doubling we earnings the And when call platforms innovating. where know down been is tailwind shared that's in a we're they're our at numbers in you business marketers the

Jason Helfstein

you. Thank

Lisa Utzschneider

Thanks.

Operator

Your next Fitzgerald with question comes from Wells Fargo. Brian

Brian Fitzgerald

of Wondering out CPM the mix or if factors influence any the Thanks. else with call I and wanted optimization segment. saw there. discuss regional what you to about the anything to volume ask the you price trends in and could like

were Google have as maybe with you've that then very that classification past to your and innovations fairly years? you've was something given couple or around spin the your fundamental quickly the video rolled that follow-up Jason's to working on while, Partners something Is Video been a done for that you able timely. And obviously solution of out on up a you over work question platform

Tania Secor

our were the from shifts it pleased and the at for Yes, And quarter-to-quarter in that CPM the thanks really quarter, a average optimization. decline levels question. of XX%. optimization average continue product in see an expect reflection volumes not slight did on period we -- second to the mix we see our shifts QX and continuing We for Hi, to that trend fluctuate that a is and average can is do in customers. will of reflect in

down first measurement video. to average measurement which a we in of the turning reflects The saw what for quarter over pleased quarter. in the uptick CPM we of the that the But was increase were and reversal X% for

know in up -- drove We what revenue measurement XX% a of quarter as to the and CPM video-related. that's measurement the And premium reached on display a video you side. was second our the is all

Lisa Utzschneider

take the we're GVP viewability years. Google on and past be when and and GVP. on us to to actually big this invalid to brand differentiator GVP of be second then question announce And partner traffic safety innovating Video for it Google And offered were comes Fitz. ours we continues And across the suitability I'll strategic thrilled Partners platform. a or able quarter to first-to-market, for offering we've

In we past Total in launched and Media GVP, this Shorts. IVT, to YouTube addition quarter viewability, Quality also

leaning is in our on Google we'll partner. customers. them to So, continue a joint of We're innovate with behalf again, great and

Brian Fitzgerald

Thanks Tania, thanks Lisa.

Lisa Utzschneider

Thanks.

Operator

And from James question next Heaney comes our with Jefferies.

James Heaney

you How taking talk questions. and next my contribution product XXXX? about Meta revenue thinking for for about guys Thanks rollout? the the map Reels we be the quarters should just Could road over two

the And in and saw just strong then verticals on then particular is that QX and you Thanks. ad weak in call environment Any or out my seeing you're -- far stand second QX. as and or that in markets or similarly out? so weakness question QX being to strength macro around

Lisa Utzschneider

Happy Sure to Yes. questions. those James. answer

viewability just of mentioned with Facebook invalid Instagram. June and for and both Reels. traffic on So, rolled before incredible as Meta It's see Reels explosive to adoption we Reels I've in Meta out the

it early last just that perspective, plays I it's because too Instagram, and Meta billion know just the that we on contribution it a per their XXX week growth think I and launched talked sharing day about tell had so earnings From like to Facebook opportunity. numbers exceeded call across love revenue product.

as is then ramp XXXX the see the and would XXXX, look back we would I contribution. of when adoption. half revenue So at And

add? to give Tania macro few a are down macroeconomic in conditions investing about for the be disciplined of time half in. much overall continue happy deliberate they're are ROI we're the on terms in then -- sharing are year of what things. market, Marketers else feel I is spend you'd just to marketers optimistic we macro overly spend free level the to also, to the doubling in of marketers anything and and and efficiency. high business. what XXXX conditions scrutiny economic and they a areas lot then and cautiously being in back returns and they're And chime I'm of with and their hearing And -- Tania, the about Ongoing like more fluid the that year. yielding

Tania Secor

Sure.

I what James, on it to Meta think on we stages, your did question, build first while it's just Reels, our into was Lisa saying impact factor the early guide. of

to In Meta I The quarter accelerated to from quarter. the XX% rate to social overall. as first social in was second our highlight, wanted contributor the in the growth a second overall, growth rate as TikTok thing well our XX% second quarter

the partnership YouTube about we and growth So going are in our the momentum second forward terms in the the contributions quarter. really from pleased Meta of TikTok, social to-date, overall

James Heaney

Thank you.

Lisa Utzschneider

James. Thanks,

Jonathan Schaffer

take next please. question We will

Operator

Cost question comes Stanley. Matt Morgan with from next Our

Matt Cost

the Great. Hi, taking everyone. Thanks for question.

these like guidance I expect been this revenue seems year. about IAS there's set to there's you. to midpoint couple But every incrementality of think to you at were we just the quite bunch us impressive and we're and and look quarter perspective a in revenue drive Thank line if them few announcements up quarter. guess we partnerships forward. start path map partnerships, quarters, when whole the them where top bit a see start the platform the of above a of the them for less or of onboard revision going over new to and past more I talk about ones for And road now the when it little So, from where the is at new integrations a of

Lisa Utzschneider

happy to take Matt. I'm Sure. that

revenue, we've So, deliverables, and want announced. that partnerships partnerships at do I'm in also about our the road we you innovative I both our proud thing adoption four are we've the very call a And call way I product take and it of velocity customers, following. I'd product is market. look out revenue when the that the to agree team that launching products on upped both to of terms think first But announced of map, one that to leading today's for the

and markets a the you for of of for that we revenue That big and being: revenue ahead the rolled is in with road out half look year. and the quarter tech So the back tailwind track schedule both on those nice TikTok XX some our XX spoke map TikTok quarter TikTok, a partners seeing adoption year-end. to we're -- measurement at in second we take growth last TikTok markets so were product of

the that Media so revenue. is YouTube YouTube Total languages. product launched year YouTube, we had Quality. back We would last adoption in quarter say launch XX for half example, announced Shorts I with for XXXX of

like that in of the with back Everyone live year. the adoption by that Meta hasn't feed lines up That product Reels. happen leading their to opened revenue anticipate year, following is product Meta Some half -- yet. of this knows XXXX. newer revenue the We of end

again how and scale So are the international the I'd how able out on offer also, both multiple depends adopting in say, platform of we're language roll products markets fast it to translation. but fast the

Matt Cost

you. Thank

Lisa Utzschneider

Thanks, Matt.

Operator

Andrew And question from comes James. Raymond with our next Marok

Andrew Marok

can. question. One Context if I taking Control for on Thanks my

and adoption high call we And guess the how reaccelerate optimization? was I on into that the levels slowed growth The are the hope some leg. that can maybe on Control give as off recently. as coming selling customers? in had us would can come avoidance you sales another adoption Context mentioned on You finding an are that targeting where targeting performance staff strong update reached solution that

Lisa Utzschneider

Thank for you, Sure. question. Andrew the

couple a things call I'll out. So of

of particular see new period. and the from by from Context Control where from of we CPG Over period. revenue telco logos lots top in Control XX with growth was our our product. clients optimization slower adopted double-digit terms saw tech growth is in in offset we That customers vertical advertisers. And XX% verticals, maturing advertising of adoption represents Context demand our expected over as XXX in with in And partially is First of the CPG. the

at in And anticipate with along when walked of that's we optimization you see saw our And second take back the Context same Control what half revenue majority overall a lines the look just with we in the will possible growth the be I it products Context our quarter we And demand of of upside. through the where is you is Control. the everything avoidance the contextual the of of majority avoidance. adoption for year, contextual

for more are contextual seeing We avoidance. still contextual targeting but demand it's

Andrew Marok

All right. Thank you the And tech be space. cause XQ? ad then another any really quick MediaMath impact one IAS if around there I kind to bankruptcy And beyond the that Any could. QX? disruptions impact to lingering We've seen would of the there in extent was some

Lisa Utzschneider

no impact no to from Andrew, impact there's to MediaMath the bankruptcy. us us material

Andrew Marok

you. Thank Great.

Operator

Thanks, comes next our Kelley from Andrew. question And moment with next question. One for our Mark Stifel.

Mark Kelley

your overall of of you channels of to retail Thank the or just sense channels to do in ad you to expect wanted want exposed just Uber a get that there. had mix and into to can we to to channels play I you fashion the I how to over better about you Should and think time? guess relative first different kind I'll market a announcement the ask media with Criteo be digital all lump this market, mirror retail think for and I media you're you. you market? nice really but material the

Lisa Utzschneider

Sure.

a media. So retail on few things

the app; and mentioned advertising really safety networks coverage to viewability both the We've media media Uber media network and the and from top also nine of offering of marketers. we're of we in measurement brand high the and XX media then offering retail retail across traffic we'll where with expand is our past viewability be know the adoption excited were we see announce that and to Criteo's fastest-growing the to measurement capabilities. Uber one of IAS partners. continue continue We where retail partnerships we across our channels within As Criteo invalid fraud all

I before In to is a nice platforms this seeing of right? products So and sizing terms growth. the of similar ramp some to we're other spoke revenue,

media with thing the the the steady is into We we good would with and being networks. of back other And growth I the a say, year volume of retail about of one the partners. seeing adoption media XXXX. call partners half addition are across our strong out feeling in XX integrations I encouraged nine for are retail very growth will strong the it's to this But out

Mark Kelley

one just follow-up retail media stuff. on And the Okay.

You're doing is correct? people on off then first-party off-site that the sure the website that find website. So both on-site to correct? that data to and just also make retailers' like retailer's got I and want using I of

Lisa Utzschneider

inventory. inventory and correct. That's It's both O&O third-party Correct?

Mark Kelley

Okay. All you right. Thank Great, so much.

Lisa Utzschneider

Thanks, Mark.

Operator

next our And question KeyBanc. Justin comes with Patterson from

Justin Patterson

Thanks. Great. space a ask wanted big the bit a to there How Obviously or of I towards and further afternoon, resources, was Good Is to need in do really this within about yourself week. AI. acqui-hire about existing you look some think do kind just you your usage suite product develop today? can that augment to through today? something product suite you your tuck-ins AI's

Lisa Utzschneider

Justin. Yes. Great question

fuels with in example Total an of ML, a the products. and it's and we AI AI a and tech we good perspective. leverage ML Quality our is do It So from everything IAS. DNA And innovation of how Media that

ability content unlock last with AI with the familiar classify leveraging is the safe. that text our languages product and that and TikTok translation quarterly able in for what's in powerful four live to leveraging Total overnight. the I over you're by But real-time really XX earnings, happened to languages is And think is we're type brand of example determine audio live I real-time OpenAI. That language from gave not safe OpenAI. with image, to technology to So, brand example Quality what classify our feed, Media of what

important unleash and we're a about equally unlock with But how more is at I lot our our use leveraging core if technology. hear to not our you'll scale. innovation more we OpenAI and products how AI So, think

Justin Patterson

you. Thank

Operator

one question. moment And for our next

question next Group. Our Craig-Hallum comes from Kreyer Capital with Jason

Cal Bartyzal

Hey, Jason. this here on Cal Bartyzal is for

of into I have you what progress in this see trying back penetrate circle question first to mid-market just kind kind to initiative guys mid-market? and of to the So seen wanted you've just

Lisa Utzschneider

Sure, to speak Cal. happy mid-market. to I'm

with a when One So, it's north XXX overall Control top Control mid-market where mid-market than of growing as Context growth revenue Context are define seeing we accounts. take penetration. from is mid-market the in particular uptick of area We you nice clients, at faster look mid-market. the QX of a

like But seeing thing a both data in the but the seeing at you agencies bets lighting EMEA when say we're markets nice and the markets the putting APAC, in in and not look markets that mid-market in activation mid-market is, boots investments emerging our Thailand of Korea, about adoption so we're the take on investment other some revenue. South And the in that's we're just placing in up the both independent internationally. I'll ground emerging U.S.,

we'll to continue local the more brands channel, and in markets also in markets bring they the mid-market more in continue emerging invest to but to invest category. beef as So our up the on mid-market of local

Cal Bartyzal

one last me. lately then seen for We've And like sites. Perfect. headlines numerous made-for-advertising around things

with if industry? any desire So solutions saw just headlines on the impact for kind of IAS maybe permeating potential those furthering the wondering you across

Lisa Utzschneider

Yes, sure.

great question. So

next in to sites, definitely detect help that we and are developing So, call. forward area to on our look earnings MFA our an update we in our share progress MFA will solutions

Cal Bartyzal

Perfect. much. guys Thank you so

Lisa Utzschneider

you. Thank

Operator

One moment next our question. for

Zeller Robert Our Securities. with from comes next question Truist

Robert Zeller

how Hi. And curious their versus to is available Robert inventory much on available there are Squali. and opening Reels on how This idea short they able how TikTok, us Shorts much just taking up How much I'm on questions. an much platform inventory for give you form opening -- TikTok? video. TikTok are Thanks measured? is for their Youssef to be are the of

bigger And then one just picture question.

from see large customers growth? being few increased bigger advertisers you curious, years, driver of Thanks. if I'm spend spend a or next from the new like new mid-market Over

Lisa Utzschneider

first Happy Yes, question. sure. to take the

So Meta when early again, their share Reels. with viewability at data I that you quarters days and Meta's large these in more ads talked is We the of point out rolled on earnings call are that Reels. three Reels look our week than running Shorts. platforms, just YouTube it's one advertisers invalid traffic with and But will last Meta Meta about

excited stats it's with Reels, again, and adoption that sizable about think we I early on to inventory, of just rolled overall users thing week, also Shorts, the with just be YouTube Same believe was days, offering. some last you we that it of I Reels really were are stating when scale. as mentioned in billion X incredible earnings the and YouTube but Meta Meta So Shorts out ad they call partnered before using our their

days very third of so more from analogy, it's Reels. again, with with TikTok, And we the both with second international probably product just inning terms YouTube because Shorts TikTok, And XX quarter, languages. -- we inning markets, baseball to Meta product by just rollout, rolled early like last our perspective. sight a and right? then Quality in map it's XX in But so it's ahead year-end on is And inventory it XX And of sizable line from markets to the XX the launched we TikTok. Media got of road out, Total quite running

large these take where again, So the we're global and down just do focused to doubling you platforms, want to users want where are question? the products, tech Tania, the the the adoptions of and that's second scaling all on are. marketers on be users the because of all

Tania Secor

Sure.

large So you also question really look Rob, saw growth new logos. future, from but and from the around out we both new as from And really large advertisers, introduced spend spend a at our your we that incremental in probably as we see gets advertisers. metric

where than the the end the more second from XX% our at those in coming even large of you with advertising we period you second spend when revenue last large just do revenue advertisers. the at up where year if quarter, so, of quarter, from our that end of growth at were we are today is advertisers math measure XX% and the And who look $XXX,XXX you the with us

that a of in future. The we're other us the had is optimization the sooner new we're call thing both the revenue on new I'd spending side talked and across both our the on about of logos, quarter and faster Lisa our earnings that and highlight with that call expect last on the we to they're lot than in before, past. they our benefits seeing want continue And and measurement winning in revenue ascertained these and first to earnings And logos second from quarter accelerating and we've seeing the and accounts side. the we're also the into the

Robert Zeller

Thank Okay. you.

Operator

Company. with comes The One moment Zgutowicz Benchmark for from next our our next Mark question. And question

Mark Zgutowicz

March Thank revenue. compares your calculations customer that my XX% to terms the about do you. advertising per -- just XX% year-over-year tail point, to of Tania, X% in see on that here in large and at the about at revenue last maybe large I growth quarter. When looking that by advertiser grew

dynamic to I trying just And understand bit. follow-up. had Thanks. a then a So, that

Tania Secor

an advertisers. No, we expansion revenue of Sure, from yes. our seen have large

do yes, this last verify It can up XX% XXX the also you quarter, and was calculated. you advertisers. it's the large which XXX in say we're amount would expanding the I a the of the large at quarter number was year For to advertisers. math, of overall, second increase I when number

incremental higher advertisers. number So the and of we're excited also large see to spend the

Mark Zgutowicz

loosely you've Okay. obviously revenue in the to 'XX a to all there's so. that Thanks. And partnerships signing question follow-up last way clearly to quantify sort of or a the to been or there, that terms from some 'XX, Is the given maybe And revenue of partnerships be just terms that these could lag busy incremental certainly your there that recognizing Lisa, just prior you've ramping. revenue? that been frame 'XX quarter in of can about and a some revenue how revenue you of

Lisa Utzschneider

just new out ready the We've do of of when back we're adoption, half we've level at for on in market all driving terms shared share we'll our adoption, we with year. the partnerships I say XXXX expectations so. guide, so XXXX a these the language And rollout, high we're product shared of to guide. Yes. the would translation. that And XXXX, focused rolled

Mark Zgutowicz

you. Fair Okay. Thank enough.

Operator

I I'm closing this time. Utzschneider showing remarks. further turn would questions no at for to now conference back to the like Lisa

Lisa Utzschneider

for joining everyone call. today's Thanks

to business partnerships recently that you half the year. We of progress. are expectations quarter pleased you. look second exceeded to forward back provider. four Thank trusted on announced look the first-to-market a to our forward continuing in momentum as the and independent We for our updating have We underscore role our

Operator

concludes you conference this for today's Thank participating. And call.

You disconnect. may now

Integral Ad Science Holding (IAS) 3 Aug 232023 Q2 Earnings call transcript