8-K
false 0001842718 0001842718 2021-08-12 2021-08-12

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 12, 2021

 

 

INTEGRAL AD SCIENCE HOLDING CORP.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   001-40557   83-0731995

(State or other jurisdiction

of incorporation)

  (Commission
File Number)
 

(IRS Employer

Identification No.)

 

95 Morton St., 8th Floor, New York, NY   10014
(Address of principal executive offices)   (Zip Code)

(646) 278-4871

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report.)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading
Symbol(s)

 

Name of each exchange
on which registered

Common Stock, $0.001 par value   IAS  

The Nasdaq Stock Market LLC

(Nasdaq Global Select Market)

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 

 


Item 2.02. Results of Operations and Financial Condition.

On August 12, 2021, Integral Ad Science Holding Corp. (the “Company”) issued a press release announcing its financial results for the quarter ended June 30, 2021. A copy of the press release is furnished herewith as Exhibit 99.1.

This information contained in this Item 2.02 and in Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

 

Exhibit No.    Description of Exhibit
99.1    Press Release dated August 12, 2021
104    Cover Page Interactive Data File (embedded within the Inline XBRL document)


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

    INTEGRAL AD SCIENCE HOLDING CORP.
Date: August 12, 2021     By:  

/s/ Joseph Pergola

    Name:   Joseph Pergola
    Title:   Chief Financial Officer
EX-99.1

Exhibit 99.1

 

LOGO

Integral Ad Science Reports Second Quarter 2021 Financial Results

Total revenue increased 55% year-over-year to $75.1 million; programmatic revenue increased 94% to $31.8 million

NEW YORK August 12, 2021 – Integral Ad Science Holding Corp. (“IAS”) (Nasdaq: IAS), a global leader in digital media quality, today announced financial results for the second quarter ended June 30, 2021.

“IAS delivered record performance in the second quarter driven by continued growth in both advertiser direct and programmatic revenue. We also achieved a significant milestone this quarter with our successful IPO, advancing our position as the global benchmark for trust and transparency in digital media quality,” said Lisa Utzschneider, CEO of IAS. “More customers are partnering with IAS to make every impression count in key growth areas including programmatic, social, connected TV (CTV), and international markets. Earlier this week, we announced our acquisition of Publica, the CTV advertising platform. By acquiring Publica, we are demonstrating our commitment to leading the future of digital media quality in CTV.”

Second Quarter 2021 Financial Highlights

 

 

Total revenue was $75.1 million, a 55% increase compared to $48.3 million in the second quarter of 2020, which was significantly impacted by the Covid-19 pandemic.

 

 

Advertiser direct revenue was $35.3 million, a 40% increase compared to $25.1 million in the prior-year period.

 

 

Programmatic revenue was $31.8 million, a 94% increase compared to $16.4 million in the prior-year period.

 

 

Supply side revenue increased to $8.0 million compared to $6.8 million in the prior-year period.


 

International revenue (excluding the Americas) was $29.6 million, a 58% increase compared to $18.7 million in the prior-year period, or approximately 40% of total revenue.

 

 

Gross profit was $62.2 million, a 57% increase compared to $39.6 million in the prior-year-period. Gross profit margin was 83% compared to 82% in the prior-year period.

 

 

Net loss was $35.1 million, or $0.26 per share, compared to a loss of $16.5 million,or $0.12 per share, in the prior-year-period.

 

 

Adjusted EBITDA* increased to $25.7 million compared to $3.8 million in the prior-year period. Adjusted EBITDA* margin increased to 34% compared to 8% in the prior-year period.

 

 

Cash and cash equivalents were $73.2 million at June 30, 2021. Following the second quarter, IAS closed its initial public offering (IPO) on July 2, 2021 raising net proceeds of over $244 million. In addition, IAS closed an additional $31 million from the exercise of the underwriters’ option, aggregating approximately $275 million in total proceeds.

 

*

See “Supplemental Disclosure Regarding Non-GAAP Financial Information” section herein for an explanation of these measures.

Recent Business Highlights

 

 

IAS announced it acquired Publica, the CTV advertising platform, in a cash and stock transaction valued at $220 million. With this acquisition, IAS will help publishers better monetize their video programming across CTV devices.

 

 

IAS and TikTok have launched a brand safety beta, providing advertisers with industry-leading controls aligned with Global Alliance for Responsible Media (GARM) standards for in-feed video. The new global solution uses proprietary frame-by-frame video, audio, and text classification technology specifically designed for social environments allowing advertisers to confidently promote their brands on TikTok.

 

 

IAS released five research studies this quarter, including its anticipated H2 2020 Media Quality Report (MQR), which shared unique insights extracted from the trillions of data events the company measures monthly. The report showed that in the second half of 2020, brand risk increased worldwide, while global fraud rates among optimized campaigns dropped below 1%, indicating the demand for and value of digital ad verification solutions.

 

 

LinkedIn and IAS are expanding their partnership adding Viewability and Invalid traffic measurement for LinkedIn owned and operated video inventory.


Financial Outlook

“Our investments in product innovation and international growth are delivering results for our customers and contributed to our strong performance in the second quarter,” said Joe Pergola, CFO of IAS. “Our three revenue streams posted solid growth with programmatic representing 42% of total second quarter revenue compared to 34% in the prior-year-period. Moving forward, we expect to further develop our high-growth areas and expand our global footprint while maintaining strong profitability.”

IAS is introducing the following financial guidance for the third quarter of 2021 and full year, which includes the anticipated contribution from the Publica acquisition:

Quarter Ending September 30, 2021:

 

 

Total revenue in the range of $74 million to $76 million

 

 

Adjusted EBITDA* in the range of $16 million to $18 million

Year Ending December 31, 2021:

 

 

Total revenue in the range of $308 million to $312 million

 

 

Adjusted EBITDA* in the range of $87 million to $91 million


Integral Ad Science Holding Corp.

Condensed Consolidated Balance Sheets

(Unaudited)

 

(IN THOUSANDS, EXCEPT PER UNIT AND SHARE DATA)    June 30,
2021
     December31,
2020
 

ASSETS

     

Current assets:

     

Cash and cash equivalents

   $ 73,234      $ 51,734  

Restricted cash

     75        187  

Accounts receivable, net

     41,491        45,418  

Unbilled receivables

     25,246        28,083  

Prepaid expenses and other current assets

     12,701        4,101  
  

 

 

    

 

 

 

Total current assets

     152,747        129,523  

Property and equipment, net

     1,495        2,243  

Internal use software, net

     16,918        12,322  

Intangible assets, net

     218,820        243,348  

Goodwill

     458,276        458,586  

Other long term assets

     4,057        3,557  
  

 

 

    

 

 

 

Total assets

   $ 852,313      $ 849,579  
  

 

 

    

 

 

 

LIABILITIES AND MEMBERS’/STOCKHOLDERS’ EQUITY

     —       

Current liabilities:

     —       

Accounts payable and accrued expenses

   $ 44,732      $ 38,789  

Due to related party

     67        150  

Capital leases payable

     105        325  

Deferred revenue

     754        1,144  
  

 

 

    

 

 

 

Total current liabilities

     45,658        40,408  

Accrued rent

     1,913        1,827  

Net deferred tax liability

     18,808        24,794  

Long-term Debt

     352,095        351,071  
  

 

 

    

 

 

 

Total liabilities

   $ 418,474      $ 418,100  
  

 

 

    

 

 

 

Commitments and Contingencies (Note 13)

     —       

Members’/Stockholders’ Equity

     —       

Units, $4.1322314 par value, 0 units authorized at June 30, 2021, 0 units and 134,039,494 issued and outstanding at June 30, 2021 and December 31, 2020, respectively

     —          553,717  

Preferred Stock, $0.001 par value, 50,000,000 shares authorized at June 30, 2021; 0 shares issued and outstanding at June 30, 2021 and December 31, 2020

     —          —    

Common Stock, $0.001 par value, 500,000,000 shares authorized at June 30, 2021, 134,203,403 shares issued and outstanding at June 30, 2021; 0 shares issued and outstanding at December 31, 2020

     134        —    

Additional paid-in capital (1)

     430,368        —    

Accumulated other comprehensive income

     3,337        4,523  

Accumulated deficit (1)

     —          (126,761
  

 

 

    

 

 

 

Total members’/stockholders’ equity

     433,839        431,479  
  

 

 

    

 

 

 

Total liabilities and member’s/stockholders equity

   $ 852,313      $ 849,579  
  

 

 

    

 

 

 

 

(1)

Balances prior to the Company’s conversion to a Delaware corporation have been reclassified to additional paid-in capital to give effect to the corporate conversion described in Note 1.


Integral Ad Science Holding Corp.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(Unaudited)

 

     Three Months Ended
June 30,
    Six Months Ended
June 30,
 
     2021     2020     2021     2020  

Revenues

   $ 75,075     $ 48,320     $ 142,027     $ 102,362  

Operating expenses:

        

Costs of revenue

     12,925       8,756       24,344       17,911  

Sales and marketing

     27,268       16,754       43,813       35,124  

Technology and development

     20,176       12,726       32,944       25,062  

General and administrative

     33,044       7,946       41,592       15,586  

Depreciation and amortization

     14,603       16,413       28,998       32,751  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     108,016       62,595       171,691       126,434  

Operating loss

     (32,941     (14,275     (29,664     (24,072

Interest expense, net

     (5,167     (7,695     (12,126     (15,953
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss before benefit from income taxes

     (38,108     (21,970     (41,790     (40,025

Benefit from income taxes

     3,045       5,519       3,958       9,130  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

   $ (35,063   $ (16,451   $ (37,832   $ (30,885
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss per share - basic and diluted (1):

   $ (0.26   $ (0.12   $ (0.28   $ (0.23

Basic and diluted weighted average shares outstanding

     133,981,985       134,050,576       133,996,147       134,051,786  

Other comprehensive income (loss):

        

Foreign currency translation adjustments

     718       1,190       (1,186     (724
  

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive loss

   $ (34,345   $ (15,261   $ (39,018   $ (31,619
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)

Amounts for periods prior to the Company’s conversion to a Delaware corporation have been retrospectively adjusted to give effect to the corporate conversion described in Note 1.


Integral Ad Science Holding Corp.

Condensed Consolidated Statements of Changes in Members’/Stockholders’ Equity

(Unaudited)

Three Months Ended June 30, 2021

 

    Members’ Interest     Common Stock                    
(IN THOUSANDS, EXCEPT UNITS
AND SHARES)
  Units (1)     Amount     Shares     Amount     Additional
paid-in capital
    Accumulated other
comprehensive
income (loss)
    Accumulated
deficit
    Total members’
equity/stockholders’
equity
 

Balances at April 1, 2021

    133,957,034     $ 553,304       —       $ —       $ —       $ 2,619     $ (130,322   $ 425,601  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Option exercises

    246,369       1,075       —         —         3,360       —         —         4,435  

Stock-based compensation

    —         —         —         —         38,148       —         —         38,148  

Foreign currency translation adjustment

    —         —         —         —         —         718       —         718  

Net loss

    —         —         —         —         —         —         (35,063     (35,063

Conversion to Delaware corporation (Note 1)

    (134,203,403     (554,379     134,203,403       134       388,860       —         165,385       —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balances at June 30, 2021

    —       $ —         134,203,403     $ 134     $ 430,368     $ 3,337     $ —       $ 433,839  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

Six Months Ended June 30, 2021

 

     
    Members’ Interest     Common Stock                    
(IN THOUSANDS, EXCEPT UNITS
AND SHARES)
  Units (1)     Amount     Shares     Amount     Additional
paid-in capital
    Accumulated other
comprehensive
income (loss)
    Accumulated
deficit
    Total members’
equity/stockholders’
equity
 

Balances at January 1, 2021

    134,039,494     $ 553,717       —       $ —       $ —       $ 4,523     $ (126,761   $ 431,479  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Repurchase of units

    (99,946     (413     —         —         —         —         (791     (1,204

Units vested

    17,486       —         —         —         —         —         —         —    

Option exercises

    246,369       1,075       —         —         3,360       —         —         4,435  

Stock-based compensation

    —         —         —         —         38,148       —         —         38,148  

Foreign currency translation adjustment

    —         —         —         —         —         (1,186     —         (1,186

Net loss

    —         —         —         —         —         —         (37,832     (37,832

Conversion to Delaware corporation (Note 1)

    (134,203,403     (554,379     134,203,403       134       388,860       —         165,385       —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balances at June 30, 2021

    —       $ —         134,203,403     $ 134     $ 430,368     $ 3,337     $ —       $ 433,839  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

Three Months Ended June 30, 2020      
     Members’ Interest                      
(IN THOUSANDS, EXCEPT UNITS AND
SHARES)
   Units (1)      Amount      Additional
paid in capital
     Accumulated other
comprehensive
income (loss)
    Accumulated
deficit
    Total members’
equity/stockholders’
equity
 

Balances at April 1, 2020

     134,050,576      $ 553,778      $ —        $ (1,739   $ (108,821   $ 443,218  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Foreign currency translation adjustment

     —          —          —          1,190       —         1,190  

Net loss

     —          —          —          —         (16,451     (16,451
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Balances at June 30, 2020

     134,050,576      $ 553,778      $ —        $ (549   $ (125,272   $ 427,957  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

 

Six Months Ended June 30, 2020     
     Members’ Interest                     
(IN THOUSANDS, EXCEPT UNITS AND
SHARES)
   Units (1)     Amount     Additional paid
in capital
     Accumulated other
comprehensive
income (loss)
    Accumulated
deficit
    Total members’
equity/stockholders’
equity
 

Balances at January 1, 2020

     134,034,604     $ 553,862     $ —        $ 175     $ (94,365   $ 459,672  
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Repurchase of units

     (20,328     (84     —          —         (12     (96

Units vested

     36,300       —         —          —         —         —    

Foreign currency translation adjustment

     —         —         —          (724     —         (724

Net loss

     —         —         —          —         (30,895     (30,895
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Balances at June 30, 2020

     134,050,576     $ 553,778     $ —        $ (549   $ (125,272   $ 427,957  
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

 

(1)

Amounts for periods prior to the Company’s conversion to a Delaware corporation have been retrospectively adjusted to give effect to the corporate conversion described in Note 1.


Integral Ad Science Holding Corp.

Consolidated Statement of Cash Flows

(Unaudited)

 

     Six Months Ended June 30,  
(IN THOUSANDS)    2021     2020  

Cash Flow from Operations

    

Net loss

   $ (37,832   $ (30,985

Adjustments to reconcile net loss to net cash provided by operating activities

    

Depreciation and amortization

     28,998       32,751  

Stock-based compensation

     41,531       —    

Deferred tax provision

     (6,582     —    

Amortization of debt issuance costs

     683       683  

Allowance for doubtful accounts

     99       1,170  

Non-cash interest expense

     395       2,223  

Changes in operating assets and liabilities:

    

Decrease in accounts receivable

     3,718       5,777  

Decrease in unbilled receivables

     2,769       5,073  

Increase in prepaid expenses and other current assets

     (2,791     (590

Increase in taxes receivable

     —         (9,074

Increase in other long-term assets

     (602     (32

Increase in accounts payable and accrued expenses

     2,852       6,622  

Increase (decrease) in due from related party

     67       (172

Increase in accrued rent

     128       122  

Decrease in deferred revenue

     (377     (420
  

 

 

   

 

 

 

Net cash provided by operating activities

     33,056       13,238  
  

 

 

   

 

 

 

Cash Flows from Investing Activities:

    

Purchase of property and equipment

     (318     (330

Acquisition and development of internal use software

     (7,778     (6,385
  

 

 

   

 

 

 

Net cash used by investing activities

     (8,096     (6,715
  

 

 

   

 

 

 

Cash Flows from Financing Activities:

    

Principal payments on capital lease obligations

     (219     (976

Cash paid for share repurchases

     (1,204     (96

Initial public offering costs paid

     (2,767     —    

Exercise of stock options

     1,075       —    
  

 

 

   

 

 

 

Net cash used in financing activities

     (3,115     (1,072
  

 

 

   

 

 

 

Net increase in cash, cash equivalents and restricted cash

     21,845       5,451  

Effect of exchange rate changes on cash, cash equivalents and restricted cash

     (553     76  

Cash, cash equivalents and restricted cash at beginning of period

     54,721       30,370  
  

 

 

   

 

 

 

Cash, cash equivalents and restricted cash at end of period

   $ 76,013     $ 35,897  
  

 

 

   

 

 

 

Supplemental Disclosures:

    

Cash paid during the month for:

    

Interest

   $ 11,710     $ 8,909  

Taxes

   $ 1,170     $ 477  

Non-cash investing and financing activities:

    

Deferred offering costs accrued, not paid

   $ 2,956     $ —    

Assets acquired under capital leases

   $ —       $ 185  

Property and equipment acquired in accounts payable

   $ 127     $ 113  

Conversion of members’ equity to additional paid-in capital

   $ 165,385     $ —    


Supplemental Disclosure Regarding Non-GAAP Financial Information

We use supplemental measures of our performance, which are derived from our consolidated financial information, but which are not presented in our consolidated financial statements prepared in accordance with GAAP. Adjusted EBITDA is the primary financial performance measure used by management to evaluate our business and monitor ongoing results of operations. Adjusted EBITDA is defined as earnings (loss) before depreciation and amortization, stock-based compensation, interest expense, benefit from income taxes, acquisition, restructuring and integration costs and IPO readiness costs. Adjusted EBITDA margin represents the Adjusted EBITDA for the applicable period divided by the revenue for that period presented in accordance with GAAP.

We use non-GAAP financial measures to supplement financial information presented on a GAAP basis. We believe that excluding certain items from our GAAP results allows management to better understand our consolidated financial performance from period to period and better project our future consolidated financial performance as forecasts are developed at a level of detail different from that used to prepare GAAP-based financial measures. Moreover, we believe these non-GAAP financial measures provide our shareholders with useful information to help them evaluate our operating results by facilitating an enhanced understanding of our operating performance and enabling them to make more meaningful period-to-period comparisons. Although we believe these measures are useful to investors and analysts for the same reasons, they are useful to management, as discussed below, these measures are not a substitute for, or superior to, U.S. GAAP financial measures or disclosures.

IAS is unable to provide a reconciliation for forward-looking guidance of Adjusted EBITDA to net income (loss), the most closely comparable GAAP measure, because certain material reconciling items, such as depreciation and amortization, stock-based compensation, interest expense, income tax expense (benefit) and acquisition, restructuring and integration expenses, cannot be estimated due to factors outside of IAS’s control and could have a material impact on the reported results. Accordingly, a reconciliation is not available without unreasonable effort.

Reconciliation of Adjusted EBITDA to its most directly comparable GAAP financial measure, net loss, is presented below. We encourage you to review the reconciliations in conjunction with the presentation of the non-GAAP financial measures for each of the periods presented. In future fiscal periods, we may exclude such items and may incur income and expenses similar to these excluded items.


Reconciliation of Adjusted EBITDA

 

     Three Months Ended June 30,     Six Months Ended June 30,  
(in thousands)    2021     2020     2021     2020  

Net loss

   $ (35,063   $ (16,451   $ (37,832   $ (30,895

Depreciation and amortization

     14,603       16,413       28,998       32,751  

Stock-based compensation

     41,531       —         41,531       —    

Interest expense, net

     5,167       7,695       12,126       15,953  

Benefit from income taxes

     (3,045     (5,519     (3,958     (9,130

Acquisition, restructuring and integration costs

     2,408       1,699       2,578       1,851  

IPO readiness costs (a)

     93       —         1,038       —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 25,694     $ 3,837     $ 44,481     $ 10,530  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA margin

     34     8     32     10

 

(a)

IPO readiness costs for the three and six months ended June 30, 2021 consist of third-party costs incurred in preparation and completion of our IPO.

Operating Expenses Excluding Stock-Based Compensation

(Non-GAAP)

 

    Operating Expenses     Stock-Based
Compensation
   

Operating Expenses

Excluding Stock-

Based Compensation

    Operating Expenses              
    Three Months Ended,     Three Months Ended,     Three Months Ended,     Three Months Ended,              
(In thousands, 000s)   June 30, 2021     June 30, 2021     June 30, 2021     June 30, 2020     $ Change     % Change  

Costs of revenue

  $ 12,925       $ 12,925     $ 8,756     $ 4,169       48

Sales and marketing

    27,268       10,807       16,461       16,754       (293     -2

Technology and development

    20,176       7,009       13,167       12,726       441       3

General and administrative

    33,044       23,715       9,329       7,946       1,383       17

Depreciation and amortization

    14,603         14,603       16,413       (1,810     -11
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

  $ 108,016     $ 41,531     $ 66,485     $ 62,595     $ 3,890       6
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 


Conference Call and Webcast Information

IAS will host a conference call and live webcast to discuss itssecond quarter 2021 financial results today at 5:00 p.m. ET. To access the conference call, please dial US/Canada Toll-Free: 877-313-2138 International: 470-495-9538 Conference ID: 9609315 The webcast will beavailable live on IAS’s investor relations website: https://investors.integralads.com. A replay will be available following the conclusion of the call.

About Integral Ad Science

Integral Ad Science (IAS) is a global leader in digital media quality. IAS makes every impression count, ensuring that ads are viewable by real people, in safe and suitable environments, activating contextual targeting, and driving supply path optimization. Our mission is to be the global benchmark for trust and transparency in digital media quality for the world’s leading brands, publishers, and platforms. We do this through data-driven technologies with actionable real-time signals and insight. Founded in 2009 and headquartered in New York, IAS works with thousands of top advertisers and premium publishers worldwide. For more information, visit integralads.com.

Forward-Looking Statements

This earnings press release contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact included in this press release are forward-looking statements. Forward-looking statements give our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,” “may,” “will,” “should,” “can have,” “likely,” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. For example, all statements we make relating to our estimated and projected costs, expenditures, cash flows, growth rates and financial results or our plans and objectives for future operations, growth initiatives, or strategies are forward-looking statements. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that we expected, including: (i) the adverse effect on our business, operating results, financial condition, and prospects from the current COVID-19 pandemic and related economic downturns; (ii) our dependence on the overall demand for advertising; (iii) our dependence on the overall demand for advertising; (iv) a failure to innovate or make the right investment decisions; (v) our failure to maintain or achieve industry accreditation standards; (vi) our ability to compete successfully with our current or future competitors in an intensely competitive market; (vii) our dependence on integrations with advertising platforms, demand-sideproviders (“DSPs”) and proprietary platforms that we do not control; (viii) our international expansion; (ix) our ability to expand into new channels; (x) our ability to sustain our profitability and revenue growth rate decline; (xi) risks that


our customers do not pay or choose to dispute their invoices; (xii) risks of material changes to revenue share agreements with certain DSPs; (xiii) the impact that any future acquisitions, strategic investments, or alliances may have on our business, financial condition, and results of operations; (xiv) interruption by man-made problems such as terrorism, computer viruses, or social disruption impacting advertising spending; and (xv) other factors disclosed in the section entitled “Risk Factors” Prospectus filed with the SEC on July 1, 2021 in connection with our initial public offering. Given these factors, as well as other variables that may affect our operating results, you should not rely on forward-looking statements, assume that past financial performance will be a reliable indicator of future performance, or use historical trends to anticipate results or trends in future periods.

We derive many of our forward-looking statements from our operating budgets and forecasts, which are based on many detailed assumptions. While we believe that our assumptions are reasonable, we caution that it is very difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could affect our actual results. The forward-looking statements included in this press release are made only as of the date hereof. We undertake no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.


Investor Contact:

Lally Zirkle

Investor Relations at IAS

Jonathan Schaffer and Cameron Felton

The Blueshirt Group, for IAS

ir@integralads.com

Media Contact:

Julie Nicholson

jnicholson@integralads.com