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Dec 31, 2022

IAS Q4 2022 Earnings Report

Reported positive fourth quarter results with growth across all business lines.

Key Takeaways

IAS reported a 15% increase in fourth-quarter revenue, reaching $117.4 million. Net income increased to $11.5 million, with adjusted EBITDA growing by 20% to $40.0 million.

Total revenue was $117.4 million, a 15% increase compared to the prior-year period.

Programmatic revenue was $55.1 million, a 30% increase compared to the prior-year period.

Net income was $11.5 million, or $0.07 per share, compared to a net loss of $(4.8) million, or $(0.03) per share, in the prior-year-period.

Adjusted EBITDA was $40.0 million, a 20% increase compared to the prior-year period.

Total Revenue
$117M
Previous year: $102M
+14.6%
EPS
$0.07
Previous year: -$0.03
-333.3%
Gross Profit
$95.5M
Previous year: $86.1M
+10.9%
Cash and Equivalents
$86.9M
Previous year: $73.2M
+18.7%
Free Cash Flow
$23.8M
Previous year: $25.6M
-7.1%
Total Assets
$1.17B
Previous year: $1.13B
+3.5%

IAS

IAS

Forward Guidance

IAS expects revenue and adjusted EBITDA for the first quarter and full year 2023.

Positive Outlook

  • Total revenue of $102 million to $104 million for the first quarter ending March 31, 2023
  • Adjusted EBITDA of $29 million to $31 million for the first quarter ending March 31, 2023
  • Total revenue of $453 million to $463 million for the year ending December 31, 2023
  • Adjusted EBITDA of $141 million to $149 million for the year ending December 31, 2023
  • Expect adjusted EBITDA margin improvement resulting from our more streamlined and efficient operations

Challenges Ahead

  • IAS is unable to provide a reconciliation for forward-looking guidance of Adjusted EBITDA and corresponding margin to net income (loss) and corresponding margin
  • Certain material reconciling items, such as depreciation and amortization, interest expense, income tax expense (benefit) and acquisition, restructuring and integration expenses, cannot be estimated due to factors outside of IAS's control
  • Stock-based compensation expense for the first quarter of 2023 in the range of $11 million to $13 million
  • Stock-based compensation expense for the full year 2023 in the range of $62 million to $66 million
  • A reconciliation is not available without unreasonable effort