IAS - Earnings call transcript Q4 2024 | Integral Ad Science Holding Corp.

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Operator

Good day, and thank you for standing by. Welcome to the IAS Fourth Quarter 2024 Financial Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to Jonathan Schaffer, Senior Vice President, Investor Relations. Please go ahead.

Jonathan Schaffer

you. Thank welcome Results Fourth Conference and Year and the Financial XXXX Call. to morning, Quarter IAS Full Good I'm joined today Putman, Interim by Lisa Utzschneider, CEO; CFO. and Jill

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

also non-GAAP to A most is to will Relations reconciliation of release directly measures site. call. We on today's Investor earnings refer measures GAAP on today's non-GAAP the contained our available measures in comparable

comparisons based otherwise, are unless year on financial period. noted prior All the

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

Lisa Utzschneider

to publisher quarter margin. XX% with quarter Jonathan. XXXX and and optimization adjusted growth you, a grew year-end Thank million Full XXXX revenue XX% at fourth the EBITDA to EBITDA fourth revenue double-digit our XX% everyone, positive $XXX.X $XXX to we year a results increased at quarter call. businesses. million in Welcome, adjusted XX% Revenue measurement, delivered our margin. fourth and across

and innovation team to we technology, Our since the the of Rule fourth Chief was Officer We industry-leading publishers key advanced believe growth grew our XXXX XXXX. continued significantly consecutive new enhanced platforms in our a positions for IPO Officer. Chief addition and XXXX with profitable relationships growth leadership our that and enabled of in double-digit Product advertisers, year of our us Operating with a year the IAS exceed XX for in XXXX.

our core channels. on and new several to capture our measurement reach offerings across additional introduced spend ad We capabilities key platforms increased in

our in successfully Quality XXXX, We AI-driven performance measurement social prebid or TMQ product advertisers. our to drive scaled suite Media optimization we for media. expand product premium also In Total

IAS into platforms, safety Reddit, on Meta, Pinterest limited in integrate to including and major integrated are selected YouTube, IAS' most capabilities. Snap, recently, inventory launched their we Reddit which with We TMQ TikTok, market-leading tier-based December.

social We launch prebid platforms with also optimization on loop solution. our closed of the the

placements, settings, avoidance now waste and Advertisers on optimize advertisers and optimization In ad for drive leading eliminate platforms their on across their spend. Instagram suitability social higher Feed can solution their first-to-market October, a testing Facebook and announced customize level content returns the on Meta ad of Reels. IAS

we unsuitable content support solution XX% for now delivered this Earlier testing, month, our block features on additional solutions and content of in increased availability global and content. XX list XX. of total a Meta total on announced a spend ad content categories We reduction for X list a During Meta. new on languages our wasted additional optimization block X for

to this product offers coverage In low our in IAS alpha the social impressions differentiated In for beta. can retention attention quality IS complete our now of and delivering testing launched for prebid is With ads Quality We expansion, TikTok the and for participants is SSPs. attention Alpha product optimization released quality prebid and XXXX, addition, these in attention signals the eye-tracking quality comparing machine rates metrics across to their in conversion lift utilize versus media we on look video forward product solution. in In for learning. to publishers scores with both impression-level unify TikTok partnership XXX% partner first social first quarter, IAS half TikTok. can and attention. fourth XXXX. advertisers, postbid, and optimization measurement optimization for capabilities high with its measurement to list the on when track remain media. on new attention up Brands Lumen Research's currently exclusion in technology with drive we attention

continue fourth DSP. now is in the In we available roll all across availability segment, announced We major the out DSPs. segment which Sync Prebid quarter, Amazon Prebid our Sync of to Quality our Quality

to earlier programmatic in Google automatically this the Sync this momentum delighted their with Suite Quality workflows can With in across Sync of launch We channels XXXX settings all month Video XX. and prebid advertisers simplify continue Display are their syncing Quality by and for post-bid buys.

leaning XXXX. data our clients deeply measurement Publica CTV, to and are In our expected more eMarketer November with offerings. and market According is the XXXX reach and $XX billion U.S. as solutions our by IAS integrating of into CTV to over

differentiators, call, efficiencies and with focused increased quarter's on product Oracle the bidding the These increase with wins, publisher to powerful XX% competition in publisher contributed are in We from introduction product look contribution offering to features along auctions. which forward the superior and quarter. fourth last Publica. the discussed to in scaling On driving I are growth We performance ad XXXX. new of

looking XX% with In X we Americas. data revenue China's currently offer quarter for testing. alpha ad This our advertising XXXX, and the verticals. market are spend in factor billion Chinese Vietnam. our estimated reach the markets consistently December, that local of markets: to of Kong, with outside IAS a find coverage global second IAS plans also operations support XXXX. in into largest to is expand winning will Taiwan, of we We grow leads an key the expansion borders. beyond advertisers where industry APAC across of RFQs Thailand to fourth November announcement IAS' initiative Hong according globally eMarketer announced $XXX their as differentiating unlocks in world's the digital The in in China, to follows

with we an with content popular Brazil the December, and platforms for social users. partnership in announced Business, most communities Kwai billion exclusive first-to-market one X active in Also of

on major In suitability wins TMQ now signed and Kwai publishers. and and we safety brand renewals, advertisers Oracle Our customer in measurement former including across LATAM customers brands, are platforms APAC. including available XXXX, new for and solutions

and capabilities To this successfully programmatic of and who wins have data opportunity provide we activation integration mid-market the to driving additional exciting customers. these experience. seen onboarded hires over and are Oracle from these Oracle bring end, XX previous We IAS extensive to

call, product expanded we secured Mitsubishi the and service. Since well existing global their and between multiyear global builds including partnership IAS with and automotive expansions wins, verticals financial with luxury in the partners. and on a services include and Nissan, sustainability. Renault, partnership IAS' renewal exclusive with as strategic our renewed global and TMQ The relationships Renault our to superior long-standing new alliance and renewals automakers attention Nissan on as innovative offerings based three last with Mitsubishi, several

to for optimization Attention, and their and renewed large Total and brand prebid as IAS our to Trust, every provider for maximize while IAS. IAS Visibility importance to seeing our our digital quality our solutions in protecting are an as position exposure. their More global IAS and established four protection incumbent with impact their leads social Visibility both their Prada partner global brands partnership care We renewals optimization. marketers on leadership brand optimization are At renewed technology and ads. our EssilorLuxottica, to renewal and of was media service TMQ All efficiency their with markets. and well eyewear the with proving coverage to The of They global unparalleled offering both consider IAS of from selected based testament IAS' Marriott and their IAS global these Product offerings drive offerings. brand's maximize media expanding with higher service. and and social renewed measurement attention seeking Sustainability are vision switched as across our TMQ and ROI on believe include social partnership expanded and Total offering. higher measurement leading value home performance ever, its to superior outcomes customers. ad the includes than and across we of IAS' differentiated is to agreement to a crucial mid-market in interaction team safeguard a our IAS offerings. digital brands spend. that the our

can we products. insights result, leverage to optimization with performance and a data our As premium drive

performance brand map further customer key media integrations recently Total quality through are and insights suite on delivering equity. while ad DPP prebid brand products and The outcomes and three serve designed TMP, based TMP delivers automatically is optimization align and maximize pre- on suite that product our DPP and better XXXX, or performance Media in path to controls. by on media protection. prebid objectives: adjusting is and We a focusing major performance In DPP. all targeting segments includes to dynamic DSPs reach announced profiles our of customers performance effectiveness, our or quality or postpaid unique ad outcomes Performance seamlessly protecting IAS' innovating we offered road data. expanding efficiency our

platforms. including the ways, the our We prebid in solution social of are several across largest optimization expanding reach scaling our

for In our measurement addition, optimization opportunity mid-market represents offerings. and a meaningful

seamless who are developing dedicated resources have We require activate. self-serve customers products solutions for to that easy specifically to mid-market

are our We efficiency offerings prioritize innovating and to protection. media

content Curation ad high-quality forward on precisely Ad to XXXX. quarter, inventory Curation, contextually the and launched fourth expanding In bidding efficiency to Google Curation Manager. drive more SSPs can their IAS consolidate With look advertisers in with for to now we IAS target buys. IAS relevant We

momentum CTV, build are high-growth we In in on this our excited to market.

expect for advertisers ad We spend. in and use on and their efficient competition and to to auctions. drive are Web capabilities in extend bidding focus increase helping social to most media on path the to possible. built Publica adoption for CTV performance sellers of Open and IAS scale the to we supply Publica's they focused features efficiency product continue optimization connect buyers new will ways fast-growing

driving strategy to data and both AI cost is Our product and critical innovation efficiency.

the our capabilities that reduce empower operational made IAS' brand to maximize and designed XXXX to of efficiency. ad our and data, to online publishers and also cases we new advanced We believe technology only the significant power market deploy will for new costs. deepened our but are XXXX, as harnessing time across By in to cutting-edge innovative and technology to unlock products are ecosystem. new scale opportunities performance our progress we we data and to we use deploying In advancing deliver models marketers. brands partnerships see advertising AI We processing not accelerate by impact science

double-digit across markets. We expand and we formats, coverage expect to our XXXX channels deliver growth in as profitable

since role, Audit has announced IAS XXXX member proven a we an of the is of Holding Jill permanent with finance as Jill month, She Corp. with and Last thank for as also Chief years of leader Interim Board over including Committee was a appointment firm XX our the Jam as Financial executive Chair. Officer. served find Putman Jill stepping CFO. experience, search CFO into engaged to and have we We an

turn we'll take call then I'll With and financials, questions. the to over your review the that, to Jill

Jill Putman

an IAS everyone. very Interim welcome, member. CFO transitional the and Lisa, look addition Thanks, to and I've period. my step as been Board team to as the forward in this I'm role with in through to impressed supporting company excited

our results me Let walk to the XXXX and quarter our quarter first before through for XXXX financial outlook full fourth year. turning

revenue outlook quarter million million, Total $XXX ahead fourth in XX% increased to to of of $XXX our million. prior $XXX the

XX% EBITDA fourth an achieved adjusted we margin addition, In of in the quarter.

year year million adjusted EBITDA $XXX.X For $XXX ahead XXXX, our the margin. of increased total XX% million. million XX% to was outlook $XXX.X million, a to full revenue prior at $XXX full of XXXX

from in services. Fourth in quarter, by double-digit verticals saw three Advertisers we strength and financial major across improved CPG spend third quarter retail revenue all revenue and the was driven growth of gains continued categories. our the

our recently revenue in of Measurement revenue across on segments. in As to Improved contextual XX% businesses. both recognize impact noted, fourth $XX.X optimization drove positive began Lisa in fourth quarter. won the increased Oracle XX% and million Optimization product million our our noncontextual and business we quarter. to $XX.X spend advertiser to the leading grew advertiser volumes the publisher

measurement revenue by Looking at channel.

Pinterest revenue in Social launched PMQ to across second the year. of the continued and including that Snap half adoption with media XX% increased of platforms, were growth

measurement Social Open period fourth measurement revenue XX% revenue represented of the the year media XX% and XX% of revenue. Web with in of represented prior total revenue quarter. and consistent was

total with OEM for XX% to to represented the large revenue quarter measurement the accounted revenue measurement XX% revenue quarter as Video adoption of new display of revenue. driven increased format. by as measurement of by spend. Publisher XX% by representing revenue revenue. fourth Publisher million, XX% of increased in grew well partners Turning $XX.X political fourth Publica and XX% product

accelerated $XX international footprint, to coverage. to differentiator up key a revenue customers million as XX% our revenue. growth prioritize continue expand fourth competitive or which quarter, global We the is of International in total XX%

measurement outside of XX% fourth addition, revenue In came the in quarter of from Americas.

end margin for from of outlook for high XX% came at was XX% XX% the Americas. Gross our year, Gross million fourth prior to quarter $XXX full margin full revenue XX%. the the or the profit outside For of profit of of year the was XX%.

of period noncash primarily On a internally the our capitalization items software for bad fourth expense $XX.X $XX.X or operating up expense. to flat expenses $XXX.X the in combined of expense was increased for and million and $XX outlook million. was XX% million at to to were to of compensation the for fourth million, XX% increased quarter, above year. year. last onetime at excluding million million, debt of million for outlook a share basis, XX% XXXX developed $XX compensation XXXX. XX% lower per share to margin lower-than-anticipated last XX% quarter our EBITDA year-over-year XX% fourth $XX.X due $XXX.X $XX quarter, or increased quarter Stock-based for Net from to for year $XX our Adjusted million. Adjusted the Adjusted than prior fourth per $X.XX stock-based EBITDA from which increased the compared income prior excludes to fourth $X.XX items, EBITDA $XX a quarter margin million margin, the million full the

Moving metrics. performance to our

XX-month XXX%, which net growth. quarter revenue grew quarter. revenue trailing of in year on for includes periods. publisher to total and and advertising growth retention, large to advertising trailing lower mid-tier $XXX,XXX advertising XX-month of prior with or the our was $XXX,XXX over from number which fourth both NRR, revenue large a compared customers, reflects revenue annual with basis, and top-tier was The excludes recent XX% $XXX,XXX Our clients the $XXX,XXX XXXX the advertiser total customers consistent in period third Revenue period

a and $XX cash fourth We healthy of end continue maintain to sheet at balance generate equivalents with the of million. strong cash and cash quarter flows the

we million quarter, debt reduced $XX million. the $XX by long-term During our to

guidance. Turning to

at we total the or year-over-year range in quarter XX% revenue $XXX first the For XXXX, XX, ending the of growth million million expect $XXX March to midpoint.

revenue the in expected to is for margin XX% the quarterly expect quarter the of the We be range to similar million a to Adjusted for years. EBITDA XXXX at million $XX spread recent $XX or midpoint. first

year full or range revenue margin million XXXX or million midpoint. to is the to year a XX% $XXX million the $XXX year-over-year $XXX is our in the of the Full XXXX, XX% midpoint. adjusted at outlook For million expected at EBITDA growth $XXX

modeling additional A points. few

full the XX%. maintain to expect to range year of in We gross XX% margins the XXXX for

stock-based compensation the quarter in $XX expense $XX full million $XX is to range of million First to for expected million year. and $XX million the

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

XXXX. rate year expect XX% approximately an of effective tax the We full for

differentiated we achieve In of conclusion, in products while for which to year fourth invest solid our Rule XX we results, reported the enabled quarter managing us full In XXXX. XXXX, continue the costs. to will

adjusted revenue outlook EBITDA profitability. double-digit strong growth XXXX calls and Our for

Lisa take questions. to I that, are with your and And ready now

Operator?

Operator

Kelley of Stifel. the [Operator Our question line from first with Mark comes Instructions]

Mark Kelley

given all, what over of broader few ad the community the heard done. especially First quarter, from so we've weeks, nice last well tech

direct First on does in towards out and around main question as a in overall headwind scales coming then election. pricing? CTV volume CTV. to on political question your of continues political? hear shift really your called less what business a post with deals, real-time bidding is not more quarter just impact that how brands you Curious back guess, and and to the And second I saw terms competitor

Lisa Utzschneider

questions. both take to happy Mark,

political first the to The couple the of lead was one to in up around A from limited November. spending. callouts. elections So political impact

quarter headwinds business were political the did publisher They we while we our strength noted bidding, quarter. we second as particular, in service benefited as fourth with CTV increased to our sector. to actually in We product we sided pleased continued improved continue shift the tailwind year-over-year offerings, uptick verticals. with actually in see spend. with quarter seeing ongoing from some CPG a CTV in our a the political advertiser especially strength XX% are the spend financial we also related real-time CTV see and On Publica, your to fourth fourth in publisher board, side, in advertiser across see results, in And question to in invest retail the that as business in growth for

Operator

Our line next question comes the from Squali Truist. of with Youssef

Youssef Squali

on an in measurement, pricing from was you've on impressive clients? the prebid maybe on growth Meta bit and nonmoat talk seen delineating Maybe your products the Congrats one particularly where moat all maybe measurement, considered. then quarter you a the versus what a questions wins already, things on in pricing. did having lift pricing competitor measurement on which of get ahead just maybe Can still And two about QX from was? on --

Lisa Utzschneider

the Youssef, thank you questions. for

the So thrilled were that year's with question pricing moat put up to Oracle. during last from related of summer We the first the measurement board we on on wins versus non-moat.

pricing of the was able with a situation, It XX% there. rate both of products, moat, were You win from And measurement, might offer competitive north XX-plus coming jump-ball there the dynamics wins. related during with uptick value jump differentiation remember our a the new the rate to were then to question the we to see high RFP demonstrate those couple that balls. were second these win we of customers we but callouts able in was but

very adoption major within advertising the the see these all all of of focused on from especially seeing to of social to advertisers. top as TMQ total nice adoption markets think continue we're the are global across The XX those for Where XXX quality across the accounts, XXX sales is customers, enterprise adoption our We platforms. media teams driving advertisers. top

last TMQ selected then the new expand we year, few out IAS partner platforms, launched to the the last We're growth including Meta revenue. launched on the call with fourth social in social prebid a GA. also and call in the back we platforms of being XX% and adoption We in Meta like of in and be they terms and content quarter of summer. that platforms unsuitable measurement with when things pleased were launch We half second social into you product. TMQ, Pinterest but announced September. through in driving. to the driving last that's what reduction we in beta we're optimization, ramp to to we're with And It's again, a co-build also of our in TMQ of prebid Reddit days a I'm the prebid, seeing in that selected with first brands terms that us rolled out early new The fourth of learning social year demonstration seeing reach spend we're optimization is that beta quarter social wasted able out the the that sure remember we're But it's thrilled early days. product, the adopted ad quarter. that value have is very launch, a Snap,

just and product, our were that on we're to on that's the is focused call Meta. the both that the important on on team they're driving thing are solution already the the measurement TikTok. running running adopting So And value. the the again, social, Meta we're clients other And postbid prebid adoption, ensuring demonstrating out

Operator

Helfstein with Oppenheimer. comes question Jason from next Our

Jason Helfstein

Two questions.

want that measures say would way to post limited but higher have coverage and covered much seem Nielsen where I coverage, verification similar XXX%, TV sampling. a could is much smaller prebid relevant, So with Lisa, whereas higher don't the bid to it potentially much

format, and prebid then outlook expanding started the talked for with And perhaps long-term with and does different you full us Jill, year significantly visibility the by color this there? for business? is more you your you across can that all change could about. outlook second, How I and now Given segment postbid give any the give areas much your if

Lisa Utzschneider

the for question. you Thank Jason. Thanks, Yes.

prebid, that visibility take and the into question first around postbid the I'll business. we So have

call things of out to a there. couple So

our first performance investing The are doubling question, down we in capabilities your performance, in to programmatic. and is heavily exactly and

XXXX, like efficiency, product performance we're That road doubling mentioned on ROI. key map, when three on I things as earlier about our down think call performance, As transparency, we in in includes delivering brands the focused objectives. are

innovation, platforms, thing the Second reach, inventories, efficiency area new both and AI. is reach. we're media of Expanding on by with then international in terms new both protection third focused And expansion. leveraging expanding key is

are are buying. it earlier tied advertisers forecast, And who optimization comes closer programmatic understanding point prebid, So on that, we're we're to it prebid Meta. it seeing to media a and we're to better Total and to that, that have key and we because prebid I that of they're with them. nice postbid and particular, hands launched, And be side. visibility adoption we data, on with running made when other Visibility and in all about of both in and that, to on And Meta up several able the performance doubling social Visibility related from prebid and adopting planning measurement down linking in advertisers terms the are prebid on we how all solutions and products data. signals of getting Total nice postbid deck things performance, link they cost their with Meta is performance greater social we're us revenue prebid being seeing gives where to one really media adoption because side cost One quality

the prebid with That's another product. running that, know and they're So to second because adopting the postbid, would and how question? take great level. we're you Jill, at Jason's postbid transparency they're we both like already of seeing prebid example what

Jill Putman

Yes, sure.

year have total growth. QX seeing to for rate fourth and the full business growth the the the total So expect the as provided revenue quarter both in is growth. first across double-digit We're outpace about we're relative optimization to performance XXXX, as revenue improved this far how thinking to growth advertiser that and the in quarter guidance expected we

throughout the first be we guide full for total and provided with publisher, below year. for improvement quarter, growth revenue year we've the we expect expect to the QX then single-digit the forecasted for growth again and outpace rates. measurement, as the in that full so growth well double-digit CTV here will And both For in the

Operator

Our comes Raimo Barclays. from next question with Lenschow

Raimo Lenschow

discussions -- a of Congrats one change the the terms Jill. some as companies their industry, me more you kind probably look any it you feel since improve well, follow-up. election, clients changed can standing environment . from content. how because should in the them and on guys we've in that with because social of like have evolving help there? welcome want seen to tremendously does at Has one that And for like like media of the I kind of more then

Lisa Utzschneider

Yes. question, Thank Raimo. you for the

best-in-class and the not conversation So to some was banned the platform, holdcos, doing is or of And your of social velocity, and in whether trust We CES. both help a business The Meta classification of We feeds deeply the the look multimedia largest efficiency, role then our in be TikTok and role was live many And announced say all business. these not tech. with our seeing and with advertisers leaning the we digital providing during that every face-to-face opportunity gave granularity trust time of our And CES. or I would the our us right that you're that, the brands the strategy have our with it us with too for tailwind to away a why it's into major they it's the early in advertisers, we're environment the to year to in clients. there of whether U.S. a checking. in social of ecosystem, navigate when XXXX. we're back, January, is for about our them in fact that reason the big it. very of shifts clear in unknown the their you accuracy social that's invest with have continue say trust. -- in the when that platforms And platforms some tech. multimedia the will is holdcos discussions CES of But with they're IAS, during were the opportunity also, And in operating early biggest spend we week, now, when IAS. were

Raimo Lenschow

Perfect. Yes.

like question converting progression them Okay. in having them good getting very the like And what's the there? and where a kind does the of It you win, look bit on then talk That's that clear. on of progress -- there platform. on can little about journey? are another terms But Oracle the -- you're we

Lisa Utzschneider

Yes. Thank you.

with you and their before, shut our they spoke I fourth remember, that Oracle, fact solution customer at off their and shut might rate down, the entire So you base quarter, Oracle, the September. to of to win end

is few the formerly call And in of in third last Oracle, then luxury Bobowski, have out deep and So mid-market. Also with fourth who Global we're in adopting board and to we the call solution. a November, CRO quarter heavily we -- much Oracle drive board, is it's new to runway the who in. of is all more call And a brand our verticals. following the suitability where get see important did was area on is quarter to channel. services had great Oracle robust COO, very robust of Mid-market financial particular, have because mid-market out our safety where investing with XXXX nice products. a customers integration, in Oracle, particular our the the earnings we base has did as background in brands not an the mid-market was wins see opportunity on the upsell, have cross-sell Mark that additional

Operator

question next comes ISI. Our from Robert Coolbrith with Evercore

Robert Coolbrith

couple, Just please. wanted to ask a

in a IPO, about years seen talked potential you of measurement back competitor TAM expander. the We've as Going performance MTA to number the a space. get a involved

I in across area and just of a interest lot you're the recently, think industry, incrementality. seeing the Just

particular, how area tell lot time. over closely? in You think, last us that? And MTA an and they a about I assets, your talked looking you could measurement or leveraged more can be Is data anything quarter, you're about that at

Lisa Utzschneider

for thank you Robert, question. Yes, the

mean I focused by down mentioned I very before, is as So in performance on activation. doubling what And we're performance.

leads signals, is find way Our signals, higher marrying media by And leveraging we're higher and the ROI. outcomes. is media brands to cost the quality data working quality that doing with thesis contextual tied up that helping to our

you of terms our data, In our And media we're audience assets, of data now, first-party data our signals every brand billions of classifying doing more lot day. signals. that spoke data focusing activation. with assets, is billions robust that activation on a web performance have with and much primary XXXX we we're and in single to right quality area This before, data layering I interesting of focus a performance third-party and our so and events is of that's work because

Robert Coolbrith

it. I industry couple developments could And been some Got page a then the Amazon think, is there have then questions one, One some, secondly, Sincera we had And acquisition. recent second about. I begin level ask, if new of reporting.

we've So any been And seeing seeing the to what make vertically verification? DSPs that. of movement integrate you Are questions of you part some about are there?

Lisa Utzschneider

Sure. take questions, Sincera. I'll both

to reporting several the referring you strategic -- half the we'll our reporting? ours. is of the So several powering be a products In Amazon URL question first a really Sincera has related continue important in to portions transparency partner the -- of are level of of for to and been company, it the partner

Robert Coolbrith

Yes, yes. one, that's the

Lisa Utzschneider

Yes.

capability offered in. an and we'll to have customer actually we to XXXX. since several transparency, offered continue URL with stay a base is our area for years. innovate transparency It's we've So close URL This that

Operator

comes with question Justin Patterson from next Our KeyBanc.

Justin Patterson

not an been talk engage products there you versus about you pipeline new you're thinking the this these able years It business previously. prior to might social as for might across you've that to how like reach be year capabilities? seems more about introduced have opportunity just the customers even market, could Lisa,

Lisa Utzschneider

Thank Yes. for Sure, you the Justin. question.

tied I goals say three the the would -- before, innovation, that to it's to question expanding I is around So reach reach. performance, expansion of and of spoke in

So when levers take for at. are you the industry, going hard of robust we're couple look there that SAM a at the a

we're the platforms cross-sell, the Those channels, customers volumes adopt XXX adoption, upsell, That's The expanding with more is the to advertisers. our brands launch innovative new that new continue top but first customers. about inventory is products. the enterprise launching largest of are importantly, launch can engagement top the those so products, that all

heavily with on IAS IAS. Mark for are spending are green more both million as the mid-market. are U.S. to space in the customers mid-market is end support. end, There channel this COO, front back important investing tons And in really investing on in mid-market, board we and we between and more advertisers. We as $XXX,XXX the $X With sellers, in both year internationally. really the is technical that Second, mid-market who investing matters performance more support, in of define

our on and in investing fuel pouring products, automation performance self-serve. So

where important say markets note being more with Mid-market third So markets. December. in script, into emerging -- new that's China we're China And called alpha two the area the a and currently in expansion we the strategy most is in and China recent is And I to launched of I out. for of would drivers both in pipeline. the an those business. then the that it's Enterprise tons out new expansion play. in

Operator

comes question James Our from Jefferies. Heaney of next

James Heaney

thinking in within the senior organization. the How of XXXX? about number heard the Dock double from I are desire people Trade think about to we you hiring

So would needs the business? think growing profitability curious to just with headcount be about how continue philosophically balancing you the

Lisa Utzschneider

James. the for Yes. Thank question, you

are couple And greatest base it the these for drive to company, that that there for focused accelerated our the growth set areas us hiring So the in are areas profitable on a for up and when growth. long-term we comes customer again, drive XXXX. value of are

in Science data R&D science. of So and the the name first area is the company. R&D, is

data tech, on related all will We particular, to we continue science to best-in-class have and and focus, in performance, classification differentiated things leveraging to AI. engineers in and invest

performance, is particular, of and mid-market. in and sales bucket second programmatic go-to-market, hiring in The

where those put So emerging areas. in to ground. the expand the boots markets. two invest emerging we then I And see again, say are would markets continue sense to opportunity We'll it makes and in to new on

Operator

Our Marok next comes Andrew question Raymond from James. with

Andrew Marok

for health heard in ad what's some indicate your was previous full about assumptions cetera? of seemed doing how or your through other to one some that shakiness economic and CPG and I some tariffs, to from question into the like view around answers of competitor heard baked We year et customer the pretty of is your your from idiosyncratic you. market? and health main the well XQ guess impacts I've CPG seat, going major your although reports, things And on a issues, CPG

Lisa Utzschneider

Andrew, thank you for the question.

QX in guide for out confident are we we So put the that and XXXX.

in fourth QX quarter, you started As we from into heading in CPG, noted, retail, to both strength see financial services.

ISS business, vertical have top advertisers years. been a also, XXX and at with for look you of over our And predictable. take X Our consistent profile the is fairly our when stickiness

drum, the boat, those and We're note more know we're that performance, what value And for driving so ensuring keep I hitting into leaned are accounts. about them driving the ROI publishers continue and that's to new onward. playing one important, performance keeping I in call -- I but IAS we advertisers very and note and macro efficiency, we're ensuring one the we the value. that bring And more -- top

invest understand solutions. so make box programmatic the helping outcomes with truly in and keeping wastage from to they the it they the brands away every continue that lead higher because invest dollar in is take could are drive laser-focused see just better We they out ensuring media digital investments so are black on that brands We media our ROI, buying, them of this how drive we return. area we a that advertising, quality the to in so higher critical

Operator

of Dessouky America. Our next Omar from comes Bank question with

Omar Dessouky

for more here competitive Lisa, a minute strategic to ask advocate devil's I the of play a wanted question. and

be risk wait be you without those market a of measurement to have scale rather a efficient, does in to markets have be would order two-horse to the be to back that kind in, the or optimize the activation It products market? the that fast in first generally between some you race follower makes investment customers, you it that perhaps takes competition put play and the are the there the and Given seem than potential to one to and have until solutions those more activation DoubleVerify, would products with to of market and be make seems other. in investment losing share. customers market Why sense also and

wanted think here. how So again, devil's you about see advocate that. I to just playing the

Lisa Utzschneider

Yes. Omar. Thank you for the question,

that one, can early, product, a We're that we is about culture our a the in patiently GA. clients, there's testing interesting and and with seeds it learning are over question of launch learn. to the time so what's planning on loop then improve test ensure we culture feedback and invest product So of a customer

several learns, public we of in we our product. remarks market actually acquisition Have have off time, and 'XX. made over did just a activation, around had built my Amino going No. the -- that example, we for adoption activation years. several that product we that of that lot that's started we rapid We've last So Visibility product. the acquisition unveiling really did when in how ago? for came Total is years year before And big quietly It we'll forward. And test engine of a before to moving and operate Payments see

the our to tech on we're from doing map hearing to we'll and road and and performance, our both product prioritize right equity and and protecting in brand in customers, and insurance, and want IAS activation. performance customers products and we're feedback reputation brand play loud in clear our continue So They invest both. now. We based build from

Omar Dessouky

what So question there's are that's interpret how if to the to it market, a mean be I you're of market if not first important I'm to you saying is I market? said, that potentially like loss first you asking risk just share really

Lisa Utzschneider

on entirely on social markets, we've largest IAS had the the product, I plenty the it platform opportunity. IAS think technology. selecting example, because depends and also being Meta depends our recent of historically, of first sophisticated most it the to

But there it and product. have and learn advantage that test to sense are in and until to where to we're we Of other we of course, more viable need take both. going launch makes do product areas if a place, a first-to-market

Operator

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

Jason Kreyer

on ramp Publica growth publisher last over driving products Can resurgence wanted just couple and that quarters. highlight just I that of to the there? double are the resonating that click you are seen what you've

Lisa Utzschneider

Thank question, for Yes. you the Jason.

seeing pleased were And growth -- our quarter. Publica And IAS coming with So offering keep a see nice But heels. there off and this our particular Publica in in with where XX% are again, we're Publisher, is uptick. with Publishers, solutions. to in and we couple of the Publica both mind, areas fourth

continuing closer might of scaled seeing team. the is from perspective, to brought was particular, has last You product ad new And we're we're our platform. we interesting, FreeWheel, that ready Publica nice innovative and customers adoption bidding to just bringing we're leading who which We're the fresh Cam to product auctions. to new ideas hired really And is are June differentiated Publica, that. features competition increase Publica seeing in in adoption. where remember, share Milli Publica's he we'll portfolio, CRO, in more the CTV product And a invest built about do is when

Operator

This Rob question of Sanderson Loop comes from Capital. line with the

Robert Sanderson

lean -- strategic listed more kind it initiatives. into to that of the go-to-market strategy? you terms how -- growth priority, also bit the should size seed like expand strategic point And wanted of be cross-border about maybe terms how You of Is we'll your China? a tricky looks then Lisa, around going you or into to of in emerging you if of right sort both? think three sort after script, What your cross-border. opportunity, the sort China ask they more mentioned develop you domestic domestic Are China? little but plant about a China. about to market, market the put of we promising? the framing say can of priority it the in markets Is some sellers Or of the your mentioned plans a see to It can more and in penetrate. expansion I in

Lisa Utzschneider

Sure. for the you question. Thank

test So planting learn. what on China, just you think and said, seeds, the to about way exactly

mentioned China. think the loudly about in way major there China, December publicly to announced have important been and a long then Two verification be opportunity they're that China? loud it We The Chinese clear about RTB for of strategy. -- in want some China China. is Asia. before, leverage are opportunity and to product and CPG been has China, in adoption, market they view partnership our we've brands our outside brands There XXX We in game, way China, hearing you -- particular, for a culture, advertising and verification outside over advertisers major a of solutions and in really offering is and China to two But them planting for early, alpha our Fortune currently doing is test-and-learn a again, we're China spirit running who going The China China. 'XX into is seeing first market into global sides out. the had as global verticals, been luxury. the solutions. in that launching our adoption I I China going in getting when are And out are advertising viable it flying wheel of product to But and GA. in having of China it's brands, is time the long to in in seeds China play. for consumers with where the in global us China

Robert Sanderson

articulate? China on that that to seeing trying that something that a In what to the China? am in China be Or there I in -- something not may like the but is out, future? Is sort that and China of is third not now? say, the thinking you're that that Is kind plan for context, about opportunity framework you're of please is about

Lisa Utzschneider

had the with say, yes, China. you and raised the to have big hands in Yes. on the like The we've spoke China areas way strategy to seem focus is in crawl-walk-run. who areas we marketers, on, right love our we're to seeds to their in right I out And especially with now particular plant, we focused test China view would China proactively before, right those the with and that several

So we're now. on two just right areas those focused

our to on map. in continue make tech our products we plan our across XXXX road focus deliverables for we and sure hit As entire that

Operator

like Utzschneider That Lisa concludes closing to call to question-and-answer today's session. turn I'd for the . back remarks.

Lisa Utzschneider

Thank the fourth you, joining deliver positive today's call. were pleased results for for to quarter. everyone, We

conferences thank San entire weekend. and hard for outlook next a and great profitability a like two and and to driven our and you work financial industry-leading to on in be I'd Our strong dedication. by double-digit our Have calls product their IAS great We'll technology growth updating the progress. Francisco week XXXX innovation. revenue look at forward day for investor team

Operator

call. conference you Thank for today's concludes participating. This

now may disconnect. You

Integral Ad Science Holding (IAS) 28 Feb 252024 Q4 Earnings call transcript