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Dec 31, 2023

IAS Q4 2023 Earnings Report

Reported strong fourth-quarter performance with revenue increase and adjusted EBITDA margin.

Key Takeaways

IAS reported a 14% increase in fourth-quarter revenue to $134.3 million and a 19% increase in adjusted EBITDA to $47.5 million. The company's social media revenue increased by 37% during the quarter. IAS expects to deliver double-digit revenue growth for the full year 2024.

Total revenue increased by 14% year-over-year to $134.3 million.

Net income was $10.2 million, representing an 8% margin.

Adjusted EBITDA increased by 19% year-over-year to $47.5 million, with a 35% margin.

Social media revenue grew by 37%.

Total Revenue
$134M
Previous year: $117M
+14.4%
EPS
$0.06
Previous year: $0.07
-14.3%
Gross Profit
$106M
Previous year: $95.5M
+11.0%
Cash and Equivalents
$125M
Previous year: $86.9M
+43.6%
Free Cash Flow
$57.5M
Previous year: $23.8M
+141.4%
Total Assets
$1.19B
Previous year: $1.17B
+2.0%

IAS

IAS

Forward Guidance

IAS provided financial outlook for the first quarter and full year 2024, expecting revenue growth and profitability to ramp up throughout the year.

Positive Outlook

  • Total revenue of $111 million to $113 million for Q1 2024.
  • Adjusted EBITDA of $28 million to $30 million for Q1 2024.
  • Total revenue of $530 million to $540 million for the full year 2024.
  • Adjusted EBITDA of $171 million to $179 million for the full year 2024.
  • Expects to ramp both revenue growth and profitability from forecasted first quarter levels as new products become available.

Challenges Ahead

  • IAS is unable to provide a reconciliation for forward-looking guidance of Adjusted EBITDA to net income (loss)
  • Certain material reconciling items, such as depreciation and amortization, interest expense, income tax expense (benefit), restructuring and severance costs, and acquisition and integration costs, cannot be estimated due to factors outside of IAS's control
  • Estimates stock-based compensation expense for the first quarter of 2024 in the range of $14 million to $16 million
  • Estimates stock-based compensation expense for the full year 2024 in the range of $72 million to $76 million
  • A reconciliation is not available without unreasonable effort.