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INVESTOR PRESENT A TION Q1 2025
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2 DISCLAIMER Important Information About This Presentation This presentation is for informational purposes and does not constitute an offer to sell, a solicitation to buy, or a recommendation to purchase any equity, debt or other financial instruments of Integral Ad Science Holding Corp. ("IAS," "we," "us," or the "Company") or any of its affiliates. The listing of customers and associated marks provided in this presentation are meant to represent a sampling of customers that use our products and services as of May 2025 and do not constitute any representation regarding the ongoing relationship or endorsement of any particular customer. Market Data We include statements and information in this presentation concerning our industry ranking and the markets in which we operate, including our general expectations and market opportunity, which are based on information from the Company’s internal estimates and research, independent industry organizations and other third-party sources (including a third-party market study, industry publications, surveys and forecasts). While IAS believes these Company internal and third-party sources to be reliable as of the date of this presentation, we have not independently verified any third-party information and such information is inherently imprecise. The Company’s estimates are derived from independent industry analysts and publications, as well as our own internal estimates and research, and are based on such data and the Company’s knowledge of its industry, which the Company believes to be reasonable. In addition, projections, assumptions and estimates of the future performance of the industry in which we operate and our future performance are necessarily subject to a high degree of uncertainty and risk due to a variety of risks. These and other factors could cause results to differ materially from those expressed in the estimates made by the independent parties and by us. Cautionary Note Regarding Forward-Looking Statements This presentation contains forward-looking statements, which involve risks and uncertainties. These forward-looking statements are generally identified by the use of forward-looking terminology, including the terms “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “likely,” “may,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and, in each case, their negative or other various or comparable terminology. All statements other than statements of historical facts contained in this presentation, including statements regarding our strategy, future operations, future financial position, future revenue, projected costs, prospects, plans, objectives of management and general economic trends and trends in the industry and markets are forward-looking statements. These statements involve known and unknown risks, uncertainties and other important factors, including those described in the Company's Annual Report on Form 10-K filed with the SEC on February 28, 2025 and other documents we file with the SEC that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These forward-looking statements reflect our views with respect to future events as of the date of this presentation and are based on assumptions and subject to risks and uncertainties and actual results may differ materially from such forward-looking statements. Given these uncertainties, you should not place undue reliance on these forward-looking statements. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this presentation, except as required by law. Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures, including adjusted EBITDA and adjusted EBITDA margin. These non-GAAP financial measures are not measures of financial performance in accordance with GAAP and may exclude items that are significant in understanding and assessing our financial results as well as certain other key performance indicators. Therefore, these measures should not be considered in isolation or as an alternative or superior to GAAP measures. Y ou should be aware that our presentation of these measures may not be comparable to similarly-titled measures used by other companies. Please see the appendix of this presentation for of non-GAAP financial measures to the most closely comparable GAAP measures. Key Performance Indicators In addition to our GAAP financial information, we review a number of operating and financial metrics, including net revenue retention to evaluate our business, measure our performance, identify trends affecting our business, formulate business plans and make strategic decisions. The key business metrics are presented based on our advertising customers, as revenue from these customers represents substantially all the revenue.
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OUR SOLUTIONS 33 IAS is a leading global media measurement and optimization platform PUBLISHER MEASUREMENT OPTIMIZA TION
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IAS A T A GLANCE 4 Q1 2025 FINANCIALS Q1 2025 BUSINESS ST A TS2024 FINANCIALS Q1’2025 Revenue 17% Y oY Growth $134.1MM Marketer/ Publisher Revenue Mix 84%/16%$530.1MM 2024 Revenue 12% Y oY Growth 1) Non-GAAP metrics; see appendix for a reconciliation of adjusted EBITDA to GAAP net income and a presentation of the calculation of adjusted EBITDA margin 2) Defined as those who spend at least $200,000 per year Q1’2025 Gross Profit Margin 78% Americas / Rest of World Revenue Mix 68%/32% 2024 Gross Profit Margin 79% Q1’2025 Adj. EBITDA Margin (1) 31% Large advertising customers (2) 239 2024 Adj. EBITDA Margin (1) 36% Q1’2025 Adj. EBITDA(1) $41.5MM NRR 109% 2024 Adj. EBITDA(1) $191.3MM
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IAS IS A LEADING GLOBAL MEDIA MEASUREMENT AND OPTIMIZA TION PLA TFORM 5 Comprehensive Data Collection captures 280 billion interactions/day globally ADVERTISERS & AGENCIES 2,000+ Advertisers All Major Agency Holding Companies PUBLISHERS & PLA TFORMSMEDIA MEASUREMENT & OPTIMIZA TION PLA TFORM Over 400+ direct integrations on premium publishers worldwide Proprietary Data Enrichment with software and AI/ML Real-time Data Processing real-time data collection and transformation We provide the industry’s most actionable data to drive superior results.
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IAS’S VALUE PROPOSITION 6 PROTECT BRAND EQUITY INDEPENDENT VERIFICA TION TO REDUCE FRAUD & WASTE INCREASE MEDIA EFFECTIVENESS & DRIVE ENGAGEMENT INCREASE TRANSPARENCY TO MAXIMIZE OUTCOMES
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FUNDAMENT AL SHIFTS HAVE CREA TED MORE OPPORTUNITY 71) Fraud waste projection for 2029, Juniper Research, 2024; 2) eMarketer, January 2025; 3) Meta, April 2025; 4) Y ouTube, April 2025; 5) eMarketer, March 2025; 6) eMarketer, March 2024 CONSUMERS SHIFTING TO DIGIT AL U.S. programmatic digital display ad spending is expected to grow from $159 billion in 2024 to $202 billion in 2026 (2) SHIFT TO PROGRAMMA TIC More than 500 hours of content are uploaded to Y ouTube every minute (4) Meta reported 3.43 billion Family Daily Active People on average for March 2025, up 6% y/y(3) GROWTH AND DYNAMICS OF SOCIAL PLA TFORMS CTV will account for all growth in the converged TV market after 2024(6) U.S. CTV ad spend is expected to grow 61% from $33B in 2025 to over $53B in 2029 (5)SHIFT TO CTV Shift to innovative strategies like contextual advertising GROWING PRIVACY REGULA TION & COOKIE UNCERT AINTY Fraud and media waste will cost marketers over $107B annually (1) GREA TER MARKETER EMPHASIS ON ROI AND BRAND SAFETY IMPROVED ABILITY TO DRIVE ROI INCREASED DIGIT AL AD INVENTORY
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8 PRODUCT SUITE DRIVES SUPERIOR RESULTS FOR MARKETERS AND YIELD FOR PUBLISHERS Optimization (pre-bid) ACTIONABLE DA T A WITH REAL-TIME PROCESSING Measurement (post-bid) GROW MEASUREMENT VOLUME UPSELL OPTIMIZA TION SOLUTION QUALITY MEDIA PERFORMS DIFFERENTIA TED DA T A WITH SCALE & AI/ML ENRICHMENT
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9 A GLOBAL SOLUTION PORTFOLIO THA T SPANS MEASUREMENT, OPTIMIZA TION, AND PUBLISHER NEEDS ● Publica Unified CTV Auction ● Publica CTV Ad Server ● Media Quality and Contextual Optimization PUBLISHEROPTIMIZA TION ● T otal Media Quality ● Quality Attention™ ● Quality Impressions™ (Viewable, Fraud-free, Brand Safe, In Geo) MEASUREMENT ● Context Control ● T otal Visibility ● Quality Sync Protect brands and verify the impact of digital media Maximize campaign ROI and optimize quality media investments Maximize yield and grow your audience
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IMAGE AUDIO TEXT (Metadata) 10 MEASUREMENT SOLUTIONS Protect brands and verify the impact of digital media investments across all major digital channels and platforms QUALITY A TTENTIONTM CARBON EMISSIONS MEASUREMENT QUALITY IMPRESSIONS™ (Viewable, Fraud-Free, Brand Safe, In Geo) MADE-FOR-ADVERTISING (MFA) IAS MULTIMEDIA TECHNOLOGY ANAL YSIS For Social & Video platforms TOT AL MEDIA QUALITY 74% More Effective than limited frame sampling at detecting some industry safety standards MORE ACCURA TE, FRAME-BY-FRAME ANAL YSIS Example for illustrative purposes. Methodology varies by platform due to multiple factors, including by what signals are available, and how the ad placements work, and the length of each video
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11 OPTIMIZA TION SOLUTIONS Maximize campaign ROI, optimize quality media investments across social, CTV, and programmatic across all major digital channels and platforms ● 650+ industry vertical and topical segments available today for avoidance and targeting ● Brand-specific content avoidance ● Semantic technology powered by the largest knowledge graph in digital media quality ● Sentiment and emotion detection TOT AL VISIBILITY SOCIAL OPTIMIZA TION PRE-BID VERIFICA TION CONTEXT CONTROL AVOIDANCE AND T ARGETING QUALITY SYNC SOFTWARE CLASSIFICATION OF CONTENT AT SCALE WITH SENTIMENT AND EMOTION For open web CATEGORIES Golf Success Negative Neutral Positive SENTIMENT & EMOTION ENTITIES Companies: Transaction Processing Council… and 4 more People: Michael Thompson, Nick Faldo, Jimmy Fallon… and 3 more How this pro pulled off the ‘shot of the year’ in golf… 54% Decrease in Block Rate Compared to Competitive Benchmark
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12 PUBLISHER SOLUTIONS Maximize yield and grow publisher audiences with ad monetization services that power revenue growth and better streaming experiences ● Demand-agnostic ● Only ad server specifically built for CTV publishers ● Reduce data loss, improve latency, increase yield, and improve user experiences PUBLICA SERVER SIDE AD INSERTION (SSAI) MEDIA QUALITY AND CONTEXTUAL OPTIMIZA TION PUBLICA CTV UNIFIED AUCTION PUBLICA CTV AD SERVER MEDIA QUALITY AND CONTEXTUAL VERIFICA TION INCREASE CTV YIELD AND DELIVER SEAMLESS AD BREAKS
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13 Optimization ACTIONABLE DA T A WITH REAL-TIME PROCESSING Measurement MEASUREMENT OPTIMIZA TION GLOBAL EXPANSION ADVERTISER CUSTOMER JOURNEY OPEN WEB & SOCIAL CHANNELS CONTEXT CONTROL CTV & EMERGING CHANNELS
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14 WE WORK WITH SOME OF THE LARGEST GLOBAL COMPANIES NOTE: IAS customers/partners not to be referenced without IAS permission 14 ADVERTISERS PUBLISHERS PLA TFORMS AND MANY MORE… AGENCIES
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ACTIONABLE DA T A, GLOBAL SUPPORT, AND FOCUS ON SUPERIOR RESULTS 15 ACTIONABLE DA T A GLOBAL SERVICE & SUPPORT SUPERIOR RESULTS FOR ADVERTISERS FOR PUBLISHERS Improve return on ad spend Protect the brand Increase efficiencies Maximize yield Increase control Improve user and advertiser experience 15 WHY IAS?
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GROWING WITH OUR CUSTOMERS 1616 LARGE CUSTOMERS MID-TIER CHANNEL EXPANSION ● Increase wallet share ● Upsell/cross-sell ● International expansion ● New logos ● Ease of activation ● Performance marketing ● New agency and DSP partnerships ● New contextual segments ● Open Web ● Social ● CTV ● Omnichannel Data and AI EMERGING OPPORTUNITIES ● Retail media ● Audio ● Gaming
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17 GROWTH IN SOCIAL MEDIA 2020 2021 2022 2023 $42.2 $56.0 $88.2 Global social media ad sales expected to reach $244 billion in 20251 28% CAGR 1) Magna December 2024 Recent Social Media Highlights ■ TikT ok – Announced general availability of pre-bid video exclusion lists on TikT ok. ■ Reddit – Expanded partnership with Reddit to include viewability and invalid traffic measurement. ■ Nextdoor - Announced partnership with Nextdoor to provide pre-bid BS&S optimization. 2024 $65.6 $113.6
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18 EXPERIENCED LEADERS WITH PROVEN ABILITY TO EXECUTE LISA UTZSCHNEIDER Chief Executive Officer THOMAS JOSEPH Chief T echnology Officer JILL PUTMAN Interim Chief Financial Officer LISA NADLER Chief HR Officer YOSSI ALMANI Chief Legal Officer ROB JANECEK Chief Information Officer MARC GRABOWSKI Chief Operating Officer SRISHTI GUPT A Chief Product Officer JIM EGAN SVP, Business Development
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FINANCIAL OVERVIEW
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20 A TTRACTIVE AND SUST AINABLE FINANCIAL PROFILE TRACK RECORD OF PROFIT ABLE GROWTH MULTIPLE DRIVERS OF SUST AINABLE GROWTH LOY AL CUSTOMER BASE THA T GROWS WITH IAS STRONG FCF GENERA TION AND CAPIT AL POSITION Premium products offer cart value expansion opportunities Multiple expansion opportunities and favorable industry trends Adjusted EBITDA margin of 36% in 2024 Double-digit full-year revenue growth Large advertising customers represented 84% of total advertising revenue (1) 109% net revenue retention rate(1) Average customer tenure of 8+ years Strong capital position with excess cash and revolver capacity Attractive free cash flow generation Productivity gains enabling investment for growth 1) As of 3/31/25
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21 ($ Millions) PROVEN TRACK RECORD OF PROFIT ABLE GROWTH ADJUSTED EBITDA(1) 22% CAGR 20% CAGR 83% 83% 81% 36% CAGR 23% 32% 31% 13% CAGR 1) Non-GAAP metric; see appendix for a reconciliation of adjusted EBITDA to GAAP net income and a presentation of the calculation of adjusted EBITDA margin REVENUE GROSS PROFIT INTERNA TIONAL REVENUE 34% 79% 79% 36%
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Q1 2025 RESULTS 22 AMERICAS EMEA APAC TOT AL REVENUE - QUARTERL Y(1) 8% 24% 69% 7% 25% 68% $114.5MM $134.1MM Q1 ‘24 Q1 ‘25 29% Adj. EBITDA Margin(2) 31% Adj. EBITDA Margin(2) Q1 ‘24 Q1 ’25 $33.1MM $41.5MM ADJUSTED EBITDA(2)- QUARTERL Y 1) The sum of the total may not equal 100% due to rounding. 2) Non-GAAP metric; see appendix for a reconciliation of adjusted EBITDA to GAAP net income and a presentation of the calculation of adjusted EBITDA margin 17% 26%
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Q1 2025 REVENUE: GROWTH AND MIX 23 $52.5MM $64.8MM Q1‘24 Q1’25 $46.3MM $48.4MM Q1‘24 Q1’25 $15.8MM $20.9MM Q1’24 Q1’25 PUBLISHER 16% of total revenue(1) MEASUREMENT 36% of total revenue(1)OPTIMIZA TION 48% of total revenue(1) 24% 4% 33% 1) The sum of the total may not equal 100% due to rounding.
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24 INCREASING PENETRA TION OF LARGE AD CUSTOMERS 1) KPIs are calculated using full year 2020, 2021, 2022, 2023 and 2024 2) Advertising revenue from Measurement and Optimization, excludes Publisher 3) For the full year ended 12/31/24 LARGE CUSTOMERS REPRESENT 85% OF ADVERTISING REVENUE(3) AVG. AD REVENUE FROM LARGE CUSTOMERS ($ MILLIONS)(2) AD REVENUE FROM LARGE CUSTOMERS ($ MILLIONS)(2) NUMBER OF LARGE AD CUSTOMERS (>$200K)(1) 10% CAGR 24% CAGR 12% CAGR
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25 MULTIPLE OFFERINGS WITH FIXED PRICING MEASUREMENT OPTIMIZA TION Fixed CPM x V olume of Impressions PUBLISHER MEASUREMENT OPTIMIZA TION Fixed CPM x V olume of Impressions PUBLISHER
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26 PROVEN ABILITY TO EXPAND CART VALUE MEASUREMENT OPTIMIZA TION Measurement CPM Contextual Avoidance CPM Non-Contextual CPM Contextual Avoidance Viewability Brand SafetyIVT DetectionViewability, IVT + Brand Safety (TMQ) TMQ
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27 FINANCIAL MODEL HIGHLIGHTS 237 Large Advertising Customers at 12/31/24(1) 36% FY 2024 Adjusted EBITDA Margin(3) 107% Net Revenue Retention at 12/31/24(2) 12% FY 2024 Y oY Revenue Growth HIGH PROFIT ABILITY AND ABILITY TO SCALE LOY AL CUSTOMER BASE RE-OCCURRING REVENUE HIGH GROWTH 1) Defined as those who spend at least $200,000 per year 2) Reflects net revenue retention for all customers who have at least $3,000 in annual spend (during the trailing twelve months). IAS defines net revenue retention as a metric to reflect the expansion or contraction of our customers’ revenue by measuring the period-over-period change in revenues from these customers 3) Non-GAAP metric; see appendix for a reconciliation of adjusted EBITDA to GAAP net income and a calculation of adjusted EBITDA margin
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28 INVESTMENT HIGHLIGHTS Significant opportunity to address multiple large and growing markets Healthy balance sheet and cash flows Large global footprint with solutions in over 50 languages Attractive business model with balanced mix of growth and profitability Strong management team with deep industry experience Deeply integrated throughout ecosystem including today’s leading tech platforms
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APPENDIX 29
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30 NON-GAAP RECONCILIA TION OF ADJUSTED EBITDA $ IN THOUSANDS THREE MONTHS ENDED MARCH 31, 2025 2024 NET INCOME (LOSS) $7,993 ($1,255) Depreciation and amortization 16,463 15,080 Stock-based compensation 15,525 15,738 Interest expense, net 72 1,926 Provision (benefit) for income taxes 3,386 (134) Acquisition, restructuring and integration costs 74 126 Foreign exchange (gain) loss, net (1,998) 1,569 ADJUSTED EBITDA $41,515 $33,050 REVENUE $134,066 $114,530 Net income (loss) margin 6% (1)% Adjusted EBITDA margin1 31% 29% 1) Adjusted EBITDA margin represents adjusted EBITDA over revenue for the periods presented
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31 NON-GAAP RECONCILIA TION OF NET DEBT $ IN THOUSANDS 3/31/2025 12/31/2024 DEBT $15,000 $35,000 LESS: CASH & CASH EQUIVALENTS $59,120 $84,469 NET DEBT $(44,120) $(49,469)