Education
About Us
Working with TipRanks
Follow Us
Integral Ad Science (IAS)
NASDAQ:IAS
Top Page
Integral Ad Science
(NASDAQ:IAS)
75Outperform
Positive Factors
Financial Performance
IAS reported stronger-than-expected 4Q results, with revenue and EBITDA outperforming prior expectations due to strength across all business lines.
International Expansion
IAS sees international markets as a compelling growth opportunity as customers expand their footprints globally.
Product Innovation
The company benefited from continued progress in rolling out pre-bid optimization features across multiple social platforms, enhancing brand safety and suitability solutions.
Negative Factors
Brand Demand
A notably weak brand demand environment is expected to continue, impacting the company's growth.
Open Web Dependency
Deceleration in open web, which constitutes 46% of measurement revenue, suggests increasing dependency on social media.
Revenue Guidance
IAS reported 3Q revenues below consensus and offered 4Q revenue guidance below consensus as well.
Integral Ad Science (IAS) vs. S&P 500 (SPY)
Market Cap
$1.42B
Dividend YieldN/A
Average Volume (3M)1.08M
Price to Earnings (P/E)37.9
Beta (1Y)1.62
Revenue Growth11.75%
EPS Growth401.94%
CountryUS
Employees902
SectorCommunication Services
Sector Strength74
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)0.23
Shares Outstanding163,800,310
10 Day Avg. Volume715,041
30 Day Avg. Volume1,078,480
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)N/A
Price to Sales (P/S)2.75
Price to Cash Flow (P/CF)5.40
P/FCF Ratio6.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$13.94Price Target Upside61.34% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
Integral Ad Science Business Overview & Revenue Model
Company DescriptionIntegral Ad Science (IAS) is a global leader in digital media quality, specializing in ad verification, optimization, and analytics. Operating within the advertising technology sector, IAS offers solutions that enable advertisers and publishers to protect their brands, maximize the impact of their advertising spend, and capture consumer attention. The company's core products include tools for viewability, ad fraud detection, brand safety, and contextual targeting, all designed to enhance the effectiveness and integrity of digital advertising campaigns.
How the Company Makes MoneyIntegral Ad Science generates revenue primarily through the sale of its digital advertising verification and optimization services. Its key revenue streams include subscription fees from advertisers and agencies who utilize its software-as-a-service (SaaS) platform to ensure their ads are viewed by real people, appear in brand-safe environments, and are optimized for performance. Additionally, IAS partners with major digital platforms and publishers, integrating its technology to provide enhanced media quality solutions, thus attracting a broader client base. The company also earns from customized analytics and reporting services, which help clients gain insights into their advertising effectiveness and optimize future campaigns.
Integral Ad Science Financial Statement Overview
Summary
Integral Ad Science demonstrates strong financial performance with solid revenue growth and profitability. The company has an improved gross profit margin of 78.5% and a net profit margin of 7.1%. The balance sheet is robust with minimal financial leverage, and the company shows efficient cash generation with a free cash flow growth rate of 18.6%.Income Statement
Integral Ad Science shows a strong financial performance with revenue growth and improved profitability. The gross profit margin improved to 78.5%, reflecting effective cost management. The net profit margin rose to 7.1%, showcasing increased profitability from prior periods. Revenue growth was significant at 11.8% from the previous year. EBIT and EBITDA margins improved, indicating operational efficiency and profitability.85
Very Positive
Balance Sheet
The balance sheet is robust with a low debt-to-equity ratio of 0.02, highlighting low financial leverage and strong equity base. Return on Equity improved to 3.7%, indicating better utilization of equity for generating profit. The equity ratio stands at 87.5%, suggesting a strong asset base supported by equity. Overall, the company maintains a stable financial position with minimal risk from debt.78
Positive
Cash Flow
Cash flow performance is solid with a free cash flow growth rate of 18.6%, indicating efficient cash generation. The operating cash flow to net income ratio is 3.1, reflecting strong cash flow relative to earnings. The free cash flow to net income ratio is 3.1 as well, underscoring the company's capability to generate cash beyond its net earnings. This shows a healthy liquidity position and ability to fund operations and investments.82
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 530.10M | 474.37M | 408.35M | 323.51M | 240.63M | Gross Profit |
| 416.14M | 375.02M | 332.59M | 268.94M | 200.13M | EBIT |
| 60.39M | 17.09M | 26.89M | -26.41M | -13.88M | EBITDA |
| 124.35M | 72.06M | 72.53M | 25.55M | 51.83M | Net Income Common Stockholders |
| 37.80M | 7.24M | 15.37M | -52.44M | -32.37M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 84.47M | 124.76M | 86.88M | 73.21M | 51.73M | Total Assets |
| 1.15B | 1.19B | 1.17B | 1.13B | 849.58M | Total Debt |
| 23.56M | 182.68M | 252.89M | 244.77M | 351.40M | Net Debt |
| -60.91M | 57.92M | 166.01M | 171.56M | 299.66M | Total Liabilities |
| 143.56M | 282.27M | 360.47M | 362.35M | 418.10M | Stockholders Equity |
| 1.01B | 909.46M | 808.22M | 767.19M | 431.48M |
| Cash Flow | Free Cash Flow | |||
| 77.35M | 97.87M | 55.78M | 49.94M | 24.27M | Operating Cash Flow |
| 117.90M | 131.62M | 72.47M | 63.59M | 33.94M | Investing Cash Flow |
| -40.54M | -34.72M | -18.29M | -200.09M | -9.66M | Financing Cash Flow |
| -116.38M | -58.85M | -37.47M | 160.19M | -1.70M |
Integral Ad Science Technical Analysis
Negative
8.64
Price Trends
10.03
Negative
10.47
Negative
10.52
Negative
Market Momentum
-0.40
Positive
29.50
Positive
13.02
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IAS, the sentiment is Negative. The current price of 8.64 is below the 20-day moving average (MA) of 9.51, below the 50-day MA of 10.03, and below the 200-day MA of 10.52, indicating a bearish trend. The MACD of -0.40 indicates Positive momentum. The RSI at 29.50 is Positive, neither overbought nor oversold. The STOCH value of 13.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IAS.
Integral Ad Science Risk Analysis
Integral Ad Science disclosed 60 risk factors in its most recent earnings report. Integral Ad Science reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Integral Ad Science Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $1.42B | 37.86 | 3.94% | ― | 11.75% | 401.94% | |
73 Outperform | $1.99B | 19.18 | 10.43% | ― | -1.22% | 112.13% | |
70 Outperform | $1.78B | 90,066.67 | -0.25% | ― | 14.50% | ― | |
67 Neutral | $482.85M | 42.89 | 4.36% | ― | 9.08% | 43.58% | |
66 Neutral | $28.41B | 73.36 | 15.37% | ― | 25.63% | 118.49% | |
64 Neutral | $1.76B | 88.68 | 3.10% | ― | 7.82% | ― | |
59 Neutral | $28.05B | 1.00 | -21.89% | 4.05% | 2.23% | -51.39% |
* Communication Services Sector Average
Performance Comparison
IAS
Integral Ad Science
8.24
-1.47
-15.14%
RAMP
LiveRamp Holdings
26.34
-7.68
-22.57%
CRTO
Criteo SA
35.02
-0.10
-0.28%
MGNI
Magnite
11.60
1.02
9.64%
TTD
Trade Desk
55.85
-31.46
-36.03%
PUBM
PubMatic
9.28
-14.46
-60.91%
Integral Ad Science Earnings Call Summary
Earnings Call Date: Feb 28, 2025 | % Change Since: -10.47% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue growth, robust EBITDA margins, and successful global expansion efforts, particularly into China. They demonstrated strong product innovation and customer retention. However, there were some challenges, such as political headwinds and the need for investment in mid-market expansion. Overall, the positive aspects of revenue growth, profitability, and strategic advancements outweigh the challenges.Highlights
Double-Digit Revenue Growth
Fourth quarter revenue increased by 14% to $153 million, with a full-year revenue growth of 12% to $530.1 million.
Strong Adjusted EBITDA Margin
Achieved a 40% adjusted EBITDA margin in Q4 and a 36% margin for the full year 2024.
Expansion in Global Markets
32% of Q4 revenue came from markets outside the Americas, with plans to expand into China.
Growth in Publisher Revenue
Publisher revenue increased by 30% in Q4, driven by Publica products and political spend.
Major Customer Wins and Renewals
Secured renewals and expansions with major brands like Renault Nissan Mitsubishi, Marriott, EssilorLuxottica, and Prada.
Innovations and Product Launches
Launched new capabilities like TMQ, pre-bid optimization, and a quality attention measurement product.
Reduction in Wasted Ad Spend
Achieved a 71% reduction in wasted ad spend on unsuitable content on Meta during testing.
Lowlights
Political Headwinds in Advertising Business
Experienced some political headwinds on the advertiser business side leading up to the elections.
Challenges in Mid-Market Expansion
Mid-market channel requires significant investment to capture opportunity, particularly with Oracle's former customers.
Company Guidance
In the 2024 fiscal year, Integral Ad Science Holding Corp. reported a 12% increase in total revenue, reaching $530.1 million, with a 36% adjusted EBITDA margin. For the fourth quarter, revenue saw a 14% growth to $153 million, surpassing the previous outlook of $148-$150 million, with an adjusted EBITDA margin of 40%. The company's net income for Q4 was $15.3 million, translating to $0.09 per share. In terms of revenue distribution, the measurement segment grew by 12% to $59.1 million, optimization revenues by 11% to $70.6 million, and publisher revenues surged 30% to $23.4 million. For 2025, IAS forecasts a revenue increase to $588-$600 million, representing 12% growth, with an adjusted EBITDA expected between $202 million and $210 million at a 35% margin. The company anticipates a gross margin of 77%-79% for the full year, alongside stock-based compensation expenses between $77 million and $81 million. Integral Ad Science continues to expand globally, with 31% of 2024 revenue derived from outside the Americas, and is planning strategic expansions, including in the Chinese market.Integral Ad Science Corporate Events
Executive/Board Changes
Integral Ad Science CFO Departure and Severance Agreement
Neutral
Feb 3, 2025
Tania Secor, the former CFO of Integral Ad Science, departed the company on January 3, 2025. A Separation Agreement was established on January 30, 2025, providing Secor with severance pay, a 2024 annual bonus, COBRA premium coverage, and continuation of her market stock units’ vesting, subject to various conditions.
Executive/Board ChangesBusiness Operations and Strategy
Integral Ad Science Announces Interim CFO Appointment
Positive
Jan 3, 2025
Integral Ad Science announced the appointment of Jill Putman as Interim CFO following the departure of Tania Secor, with Putman expected to lead the finance team during the search for a permanent CFO. This transition reflects IAS’s ongoing strategy for growth and innovation, reaffirming its financial outlook for 2024 and illustrating Putman’s extensive experience as a valuable asset to the company.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.