Integral Ad Science Holding Corp (IAS) Reports 19% Revenue Growth in Q3 2023
IAS's total revenue increased by 19% to $120.3 million in Q3 2023.
The company reported a net loss of $13.7 million, or $0.09 per share.
Adjusted EBITDA increased to $40.6 million, marking a 35% increase compared to the prior-year period.
IAS has increased its full-year 2023 financial outlook based on positive Q3 performance.
Integral Ad Science Holding Corp (NASDAQ:IAS) released its Q3 2023 earnings report on November 2, 2023. The company reported a 19% increase in total revenue, reaching $120.3 million, compared to $101.3 million in the prior-year period. Despite this, IAS reported a net loss of $13.7 million, or $0.09 per share, at an 11% margin.
Financial Highlights
IAS's Q3 2023 financial highlights include a 21% growth in optimization revenue and a 23% increase in measurement revenue. The company's social media revenue growth accelerated to 41% due to extended global platform partnerships and increased customer adoption of its products. Gross profit was $94.7 million, a 15% increase compared to $82.2 million in the prior-year period. The gross profit margin was 79% for the third quarter of 2023.
IAS's adjusted EBITDA increased to $40.6 million, a 35% increase compared to $30.1 million in the prior-year period. The adjusted EBITDA margin was 34% for the third quarter of 2023. As of September 30, 2023, the company's cash and cash equivalents were $92.2 million.
Business Highlights
During Q3 2023, IAS expanded its Total Media Quality (TMQ) brand safety and suitability measurement product in TikTok, now available to advertisers in more than 50 markets. The company also enhanced its integration with Google Campaign Manager 360 and Amazon Ads, and announced partnerships with X and Instacart. IAS also earned its first certification from TrustArc, certifying that IASs data privacy policies and practices align with the standards set by the leaders in governance and compliance.
Financial Outlook
IAS has increased its full-year 2023 financial outlook based on its positive Q3 performance and business momentum in the fourth quarter. The company expects total revenue of $470 million to $472 million and adjusted EBITDA of $157 million to $159 million for the year ending December 31, 2023.
Balance Sheet and Cash Flow Statement
As of September 30, 2023, IAS's total assets were $1,170,275,000, with total liabilities at $291,629,000. The company's total stockholders' equity was $878,646,000. The company's net cash and cash equivalents were $92,248,000.
IAS's operating income for the three months ended September 30, 2023, was $9,201,000, compared to a loss of $2,308,000 in the same period in 2022. The company's net loss for the period was $13,749,000.
IAS's financial results reflect the company's ongoing efforts to optimize its revenue streams and maintain profitability. Despite the reported net loss, the company's increased revenue and adjusted EBITDA highlight its potential for growth and profitability in the future.
Explore the complete 8-K earnings release (here) from Integral Ad Science Holding Corp for further details.
This article first appeared on GuruFocus.
