All right, good afternoon. I'm Justin Patterson. I lead the internet research team at KeyBanc. I'm really excited to have the team from Integral Ad Science with us here today, Lisa Utzschneider, the CEO, and Tania Secor, the CFO. Welcome to Vail. Hi, Justin. Hi. Thanks for having us. Great. Well, you know, to kick things off, let's just start at a very high level. Lisa, talk about just what your product is and what problem you're solving for advertisers in the market today. Sure. Thanks again for having us. Great conference. IAS, we're a leading measurement and optimization company, what we do is we verify the quality of media for marketers. We are global. We've been around for over 10 years, our core customer base is over 2,000 advertisers. Think of Fortune 500 brands, so brands like Nestlé, Coke, GlaxoSmithKline, Verifi- Verizon, not Verifi, Verizon. As marketers spend more and more of their advertising budgets in digital platforms versus linear TV, they wanna make sure there's an independent third-party player verifying the quality of the media. I'll give you an example. Nestlé. Let's say Nestlé is running a 30-second ad, a video ad in YouTube. Our technology, we verified that the Nestle ad was viewed, it was viewed by a human and not a bot, no fraudulent activity, and that Nestle ad ran adjacent to brand safe and brand suitable content. To your question, what are we solving for with the marketers, is media wastage. When you ask marketers, what do they ultimately care about? They care about connecting with consumers, and they really care about driving the highest ROI for every single advertising dollar that they spend. When you take a look at third-party research, third-party research has pegged media wastage. That means ads that weren't viewed by humans, ads that were viewed by bots. They've pegged it at $100 billion in waste. That's close to $0.33 to every dollar that an advertiser spends on digital advertising. That's a big problem, and I would say that's the primary reason why marketers are leaning into IAS and our solutions. To stick with that theme for a second there, Lisa, you know, there's been a lot of change just across the entire advertising landscape the past few years, whether that's privacy changes, driven by regulation, or even the platform changes occurring on platforms like Apple and soon to be Google with the deprecation of the third-party cookie. How, how has your conversation really just changed with advertisers over the past few years? Yeah, as I like to say, other's headwinds are our tailwinds. What I mean by that is you've probably heard this shift from cookie-based targeting. That means targeting based on consumer user personal information, shifting away from cookie-based to cookieless world. Everything that we focus on in IAS is contextual-based. What I mean by that is we process a lot of data, but none of the data has anything to do with the consumer PII. As marketers are navigating this landscape into the cookieless world, they're leaning into our solutions because we're all about the environment, the contextual environment of where they're running their ads, and the sophistication of our environment. The other trends I'll speak to in the landscape, there are a few. I like to say marketers go where the users are. Especially during the pandemic and then coming out of the pandemic, there are 2 areas in particular that are up and to the right in terms of where users are spending their time, and I know I see this in our house, having 2 girls, that, users are spending their time exponentially on social platforms and streaming TV. My girls, they don't even know what cutting the cord means. Because of that, marketers, they're doubling down and shifting their traditional ad budgets over to social platforms and connected TV. Then the 3rd area I would say is e-commerce. Lots of investments in retail media networks. Got it. Well, since you brought up just the, the different growth vectors right now, the channels that are really ramping up, taking time spent, let's, let's continue with that theme. Let's lead with CTV first. Yeah. There's a lot of focus around just the death of linear TV. The upfronts weren't great this year. You've got Netflix on board as a partner. Yeah great partner to have. Yeah. How do we think about just which inning you're in right now with CTV? I could spend an hour talking about CTV, Justin. Few tailwinds when it comes to CTV. The first is, as you mentioned, Netflix announced earlier this year, we were one of the measurement partners that they selected to launch with Netflix out of the gate with their ad-supported tier, their ad-supported offering. We are offering viewability and invalid traffic detection in all 12 markets where Netflix is running. We have seen consecutive, every month, the growth in the volume of the Netflix partnership, so it's been great to be a partner with Netflix. I'd also say CTV overall, when you take a look at the marketplace, I think it's roughly $25 billion dollar marketplace growing at 20%-22%, so it's a sizable marketplace. We made a strategic acquisition two years ago, shortly after taking IAS public. with a CTV platform called Publica. What Publica brings to the table for IAS, we have a heavy buy-side business, a lot of advertisers in our customer base. Publica beefs up our sell side, our supply side of the business. What Publica brings, it's a leading CTV platform, and it has deep integrations with many of the video platforms. Think of Samsung, Viacom, CBS, MLB. Publica also brings an ad server, technology called SSAI, where we can stitch the creative real time into the live stream. If you take a look at the use case, like Samsung, Samsung, we just renewed them, exclusive deal as a global partner of IAS and Publica, we are helping Samsung maximize, optimize their CTV inventory and drive as much yield as possible, selling the ads that they run on the Samsung platform. We also serve Samsung's creative, right, through the ad server, and we stitch that creative real time in the stream to ensure that consumers are getting ads that resonate with them. One more thing I'll say about CTV: when you ask marketers: "What are the two reasons-- What's holding you back from moving your linear TV dollars over to CTV?" They say, "We just want the same transparency. When I run a 30-second commercial in the Today Show, I have total transparency where it's running, NBCU, Today Show, what time it runs, the content it's adjacent to." Because of our acquisition of Publica and integrating Publica's data with IAS's data, we now can provide similar transparency to marketers. You know, which genre, where did you run, which app? That transparency is really helps marketers with their investments in programmatic CTV. Got it. It sounds like there's a lot of room to grow with CTV. There's a lot of room. Early inning, first inning. First, second pitch, first inning. Great to hear. Shifting that over to, say, the social side of it, you know, TikTok's been up and running. Yep. I'm not sure I always forget if you qualify YouTube as social or not. Yeah. That's always a bit of. Yeah ... ambiguity. Then there's Facebook coming to market. Reels obviously experiencing very fast growth. Meta. Yes. Meta. Took me a while to get from Facebook to Meta. Yeah? It's still taking people time to say Alphabet instead of Google. That's true. So it's always a- That's true. ... a very slow behavior change. Would love to hear you talk a little bit more about just that opportunity you're seeing across these different social channels. Sure. I'm happy to go through the product side of social and then, Tania, if you wanna speak- Numbers ... to our numbers. Social platforms, also early inning and lots of opportunity. The quick picture I'll paint with social, think of big building blocks and then medium building blocks. The big building blocks of social are TikTok, YouTube, Meta, and Twitter. TikTok, we launched our Total Media Quality product last year. We are able to classify in the live feed of TikTok what content is safe, what is unsafe, classify video, image, audio, text. We're offering pre-bid, post-bid. We are ahead of the roadmap schedule, so Q2, and we talked about this in the earnings, we went from 20 to 30 markets, so we're accelerating the product rollout. We're also have gone with TMQ from 4 to over 90 languages, and we're seeing tremendous adoption with TikTok because marketers, they see the growth of TikTok, they see the user engagement. They just wanna rest assured that when they run a L'Oréal ad, a Nestlé ad, a Diet Coke ad, it's adjacent to brand safe, brand suitable. First building block. Second building block, YouTube. We launched Total Media Quality in YouTube, end of second quarter, 30 languages, off to the races. Meta. Meta will be the back half of this year. Meta is targeting fourth quarter to launch TMQ in the live feed, Facebook first. Twitter, further, not as far down the path with the TMQ roadmap, but leaning into brand safety and suitability solutions. Also, my turn to correct the names. It's X now. Yes. Yeah, you can say that. 1 to 1. Then the next... You're right. You are right. The next smaller, I would go just medium building blocks, but it's fascinating to watch, is short-form video content. The tech platforms, and if you listen to Alphabet's earnings or Meta earnings two weeks ago, they're all talking about how their short-form video is just taking off like a rocket ship. We launched on YouTube Shorts, viewability, invalid traffic detection recently. Also, Meta Reels, same thing, viewability, invalid traffic. But given the incredible adoption rate, we're really looking forward to continuing to drive adoption of the products. Then, Tania, if you want to speak to- Just to chime in, too, Lisa talks about all these partnerships, the innovation that we're pursuing with our social media partners. You're seeing it in our numbers. In the second, upticked to 18% of our revenue from 16%, and our social media measurement revenue grew at a 33% clip quarter, last year over this year in the second quarter, which is an acceleration from the first quarter social media growth of 25%. ... Great. Tania, sticking with you for a moment, you know, I think it's good to just kind of level set back to the model. Talk about just how IAS really generates revenue in there. It tends to be more volume-weighted in nature, so it seems like there's a lot of tailwinds forming from these new partnerships starting up. Yeah, I mean, overall, we have a really attractive revenue model. First of all, our offerings are very diverse, whether it's global diversity, it's diversity in all of our offerings, from measurement to optimization, to, to publisher. That, and also, if you look at the industries we serve, we're very well diversified. Of our top seven industries, each industry represents between 10 and 16% of our revenue. We have the products and services to be where our marketers are spending, where they're shifting, their digital media campaigns. From a price and volume perspective, we have fixed CPMs that are bundled, so we contract with marketers, a fixed CPM, it's a fixed price, and the prices are different for each of our offerings, and then it's multiplied by the volume in the period. That is what we call a recurring revenue model, where we have this long customer tenure of eight years. We've got attractive NRR, of 115% in the second quarter. We have relatively low churn, and what's nice is you can see the uptick in adoption of our products and offerings from our clients as they typically start with measurement, adopt optimization, and there's a premium to some of our offerings, like video versus display, or contextual control versus our measurement offerings, and with that, it's really helping drive this attractive NRR and customer loyalty. Got it. Stepping back, and this one's perhaps for Lisa, you led off talking about, I think, 30% of media budgets are wasted. That sounds like a lot of the products you're bringing to market can help with performance. Yet, I think there's an industry perception that this is more of a, a brand-centric product, at the end of the day, can't really move the needle around performance. How do you respond to that, and what do you think are the gating factors to bringing that next wave of advertisers, the non-Ad Age, 200, 500- Sure into the platform? It's true the majority of our advertisers are more brand-focused, brand-based, but there are a few things that we're doubling down on. The first is, we have a hypothesis that if we help our marketers find higher quality media, higher quality media leads to higher ROI. A good example is the early test that we're doing with TMQ in TikTok is leading to 3X higher quality media for advertisers versus core verification products. The second thing we're doubled down on is providing greater transparency in optimization, supply path optimization in particular. When you talk to marketers, they get frustrated with the black box of programmatic buying, and we have a product we launched called, called Total Visibility that brings greater transparency into marketers' investments in the DV360s of the world. With our product, let's say L'Oréal invests $100,000 in DV360, we are able to give the transparency for them so they can see line by line every SSP that's running through their inventory and see which SSPs are yielding efficient, efficient buys, which are inefficient, and which ones do they turn off. That's an additional theme you, you'll keep hearing from us, is bringing transparency into digital media buying to help marketers drive higher ROI. Got it. With just some of these investments that you're making, Tania, could you talk about just how that's, how that NRR is fueling your ability to invest while also still maintaining an attractive margin profile? Mm-hmm. In terms from an advertiser perspective? Yeah. Yeah. Yeah. You know, we have a really attractive NRR, like I said, it was 115% in the second quarter, and our customer base is very recurring. We have very low churn. Our advertisers are adopting, they'll like I said, they'll typically start with measurement, expand to optimization. They're continuing to grow with us, and we continue to grow with our customers because of this very strong customer value proposition that really is a result of our tech and our innovation. Got it. With innovation, AI is obviously getting a lot of focus. There was an acquisition recently. You certainly have AI incorporated in your business. Would love to hear you flesh out a little bit more, Lisa, just how Double-- how IAS uses AI differently than some of the others in market, and, you know, do you need to actually do acquisitions, or can this be an organic growth, growth mode? Sure. AI and ML is in our DNA. It's the core of what we do. Science is in the name of our company. An example I shared recently in how to leverage OpenAI to accelerate a product roadmap, to accelerate and get products out the door faster, faster time to market for our advertisers, was with our Total Media Quality product. One component that's really important with all of our products that are global and scalable is language translation. Something we have been working on with language translation, for example, TMQ, you know, marketers want us running in 40, 50 markets, many languages. The team internally was working on language translation by language translation. It was taking weeks and months. We actually leveraged OpenAI, and within 24 hours, we went from 4 languages, Total Media Quality, this is the product, running in TikTok, to over 90 languages overnight. That's how we're thinking about Gen AI, OpenAI, is how to leverage it and layer it on top of our existing technology to accelerate the go-to-market or create more sophistication in the product. Got it. Well, I'd also add that not just Science is in your name, but so are the letters AI for Integral, and Lisa and Tania. I'm just good at Scrabble like that. Oh, nice! Yeah. It's also in Vail. It's an AI conference now. Nice. We only see middle, middle letters. You're welcome. The Mountain Dew is working. With that, I mean, it doesn't seem like there's a big new investment or cost structure implication from AI, that it builds naturally in the model. I know another thing that's happened over the past year or so, there's been a lot of tech transformation within, within IAS. How has just product philosophy, the productivity of the engineers really changed over the past year or two? Sure, I'm happy to take that. We hired a new CTO, Thomas Joseph. His nickname is TJ, a year ago. He spent years at Microsoft, both onshore, offshore engineering, and then was at SiriusXM and helped drive the Pandora integration. He did two rearchitects at SiriusXM. He has been a force of nature at IAS, and he joined the company, and he's been focused on a few key areas, modernizing our tech stack, creating within our tech stack greater flexibility and nimbleness with our data, cleaning up the data so that we're categorizing and cataloging the data, so the engineers have easier access. I mean, we work with so much data and process so much data. He's laying sort of the foundation to get to a place where we will have a real-time data platform, that we will be able to optimize the data real time on behalf of the marketers, getting back to your point of outcome that I call athletes. Also worked with existing engineers and reorganized the team to just focus on the right areas. The final thing he's been doing is unleashing the data science team. We have an incredibly strong data science team, and ensuring that we're focused on current product tech roadmap, but equally, if not more important, that we're focused on long-term innovation. He has a group of data science, scientists off working on future stuff that could create more growth for us at IAS. Got it. I'll be excited to see that. Yeah ... as that comes to fruition. For the very near term, you just came off of Q2 earnings. You're one of the few companies in my space that does provide a full year outlook in there. Tania, could you talk about just some of the trends you're seeing into Q3 and into year-end? Sure, yeah, and, and I also wanna touch on what Lisa was just saying, too. We're doing this from a technology perspective, while driving efficiency and productivity, and reinvesting. We're doing this in a very profitable way to support, you know, the so many levers and opportunities we have for growth. In the second quarter, EBITDA margin was up 140 basis points from the second quarter of last year. Moving into the rest of the year outlook, we were pleased with, to have a very solid second quarter where we beat revenue, we beat our guidance on revenue, we beat the upper end of our range. On EBITDA, we beat the upper end of our range. In our full year guidance, we took up the midpoint of our guide, each $1 million, both on revenue and on profitability. We're seeing an improved marketer environment in terms of the advertising market, so we did factor that into our guide. You know, we're still, the macro environment is still fluid, so we're still being thoughtful about our approach to the third quarter, and particularly the fourth quarter, which is our largest quarter for the year. We're really pleased to be guiding, you know, healthy double-digit growth, continued expansion of our EBITDA margins in the second half of the year. Great. I think we have time for one or two questions from the audience, if there's any takers. Otherwise, I can keep on going. Yes. You, you referenced social media is very strong, CTV is strong, and then just sort of reconciling that with the great rates of the teams, where, which parts of the business you're seeing have some headwinds in or less strength than those weaknesses? Sure. I can take this. The way to think about the growth vectors... Thank you for the question. The social platforms, those building blocks I spoke to, back half of this year, more of TikTok, YouTube, and Meta. CTV, longer play. Okay? In terms of areas where we need to do a better job of accelerating the growth is optimization. That's our programmatic business. We launched a product called Context Control, March of 2020, shortly after acquiring a company called ADmantX, embedding it in the tech stack, and then launching the product within 5 months. We launched it with The Trade Desk. Tremendous growth for our optimization business, now represents, like, 47% of the revenue. That product, we're seeing high adoption with the top 100 advertisers. Over 90 of 100 have adopted it. We now are very focused on driving adoption with what we call mid-market advertisers, north of 100 accounts, we're also rolling out additional new segments for advertisers. The first half of this year, we rolled out 16 new segments. Think of segments like DEI, politics, kid content avoidance, 'cause we're constantly getting feedback from the advertisers. "Here are additional areas of content I'd like to avoid or I'd like to pursue," that will help with the growth. And in addition to that, we're refining some of our back-end programmatic product capabilities, tweaking what we call Quality Sync, some of the integrations with the DSPs, and a few weeks ago, we announced hiring Sam Cox, who ran Amazon's DSP, big hire for us, and he is tasked with improving the back end. Then on the front end, the go-to-market, we're investing in more programmatic expertise, so programmatic specialists, and doubling down more on the trading desk with the holdcos. That's it. Correct. Yes. Yep. Great. I think we are out of time with that question. Lisa, Tania, thank you so much for attending. Yeah. Thank you, Jackson. Thank you.