Integral Ad Science Holding Corp.

Thank you, ladies and gentlemen. My name is Michelle, and I will be your operator today. At this time, I would like to welcome everyone to the conference. Jonathan Schaffer with VP Investor Relations, IAS. You may now start your conference.

Thank you. Good afternoon, and welcome to the IAS 2022 Second Quarter Financial Results Conference Call. I'm joined today by Lisa Utschneider, CEO, and Joe Pergola, CFO. Before we begin, please note that today's call contains forward-looking statements. We refer you to the company's filings with the SEC for more details about important risks and uncertainties that could cause actual results to differ materially from our expectations. On today's call, we will also refer to non-GAAP measures. A reconciliation of non-GAAP measures to the most directly comparable GAAP measures is contained in today's earnings release, available on the company's IR site, investors.integralads.com. All financial comparisons, unless noted otherwise, are based on the prior year period. So with these formalities out of the way, I'd now like to turn the call over to our CEO, Lisa Utschneider. Lisa, you may begin.

Thanks, Jonathan, and welcome everyone to our 2022 second quarter earnings call. We delivered strong revenue growth of 34% to $100.3 million. with an adjusted EBITDA margin of 31%. We also achieved net income profitability for the second consecutive quarter. I am proud of our team for generating new wins in the quarter, including Red Bull, Tim Hortons, Sherwin-Williams, and WestJet. We're also excited that LinkedIn selected IES to provide global ad verification services for their paid media marketing campaigns. This marquee win came after extensive technology due diligence against the competitor. It also represents the next step in our global strategic partnership with LinkedIn and parent company Microsoft. Lastly, Seven Stars, a leading independent agency in the UK, switched from a direct competitor to IAS based on our efficiency tools and engagement plan. While we are revising our full-year outlook to reflect global macroeconomic headwinds, today's results exceeded expectations for the quarter. We continue to launch differentiated products that have accelerated our product roadmap to address marketers' evolving needs in a dynamic and fast-paced market. Our second quarter performance reflects IES's standing as a leader in digital media quality. including core ad verification measurement of viewability, fraud, and brand safety. We have also successfully broadened our scope beyond verification. We are benefiting from a sizable and increasing contribution from our pre-bid activation and post-bid measurement solutions in programmatic contextual, social media, and CTV. In programmatic context control, our contextual avoidance and targeting solution represented 45% of programmatic revenue in the second quarter and drove a 51% increase in total programmatic revenue. Context control is based on our differentiated contextual intelligence technology. Context control is available in all major DSPs in global markets in 32 languages. Eighty-six of our top 100 accounts now use context control for avoidance with continued momentum. In addition to the strong adoption in the U.S., we've also seen significant growth of contextual avoidance in EMEA and APAC ahead of expectations. In July, we expanded our DSP partnerships for contextual targeting and avoidance with Zeta Global and TEADS, as well as CTV fraud pre-bid with Zeta Global. Also, within programmatic, we launched our quality sync pre-bid solution with Zanders Invest DSP, a Microsoft subsidiary. In social media, our TikTok pre-bid brand safety solution classifies video, image, audio, and text in TikTok's feed according to GARM standards. In May, we launched our post-bid viewability and fraud measurement solution for TikTok, which is seeing strong customer adoption, with over 100 campaigns currently underway. IAS offers combined video-level pre-bid brand safety in TikTok, plus viewability and IVT measurement globally. Our technology for TikTok is scalable and portable to other platforms. We are soon launching in beta our post-bid brand safety and suitability solution in Twitter's live feeds. We expect social media to be a more meaningful contributor to revenue beginning in 2023 as we partner with the leading social media platforms. In CTV, IES provides marketers and publishers with CTV capabilities for media quality measurement, transparent reporting, and contextual solutions. We've recently integrated these capabilities into Publica, to help publishers optimize their inventory. In the second quarter, we entered into an agreement with Hearst Television to provide them with our server-side ad insertion SSAI product. Our SSAI essentially stitches a marketer's creative right into the publisher's content stream to make for a seamless viewing experience. To further drive synergies and efficiencies across the combined IES and Publica CTV assets, we fully integrated publisher sales under the leadership of a new CRO at Publica. For marketers, we continue to build on our solutions by providing new ways to target transparent and GARM brand safety inventory, filter out unmeasurable non-compliant traffic, and measures CTV video ad performance. We're thrilled to highlight our growth and expansion into audio and gaming with Spotify, Pandora, and Anzu. Marketers see tremendous opportunity to tap into higher user adoption of these platforms. In audio, we recently announced the first-ever global partnership with Spotify. to establish their third-party post-bid brand safety solution for podcast advertisers. In July, we announced with Pandora the launch of post-bid verification product for audio measurement and IVT. In gaming, we recently announced our partnership with Israeli-based Anzu, an in-game advertising leader. Through this partnership, IAS enables marketers to monitor the quality of their in-game media investments in mobile gaming environments. We're tremendously excited to lead the innovation in audio and gaming on behalf of marketers and look forward to updating you on our progress. We continue to expand our global reach. International revenue represents 31% of total revenue for the second quarter. Building on our leading presence in EMEA and APAC that was established over eight years ago, we are investing in emerging markets, including LATAM and Southeast Asia. We recently announced four new senior appointments to our customer success team in APAC to add commercial expertise and to grow our customer base in the region. We consistently hear from marketers that they choose to partner with IAS, in part because of the high level of service we provide in local markets. On last quarter's call, we announced the appointment of Yanis Dosios to the newly created position of Global Chief Commercial Officer. Yanis has been tasked with driving greater alignment between sales, marketing, and product globally. Yanis is off to a strong start since joining in May, and international growth is a top priority. One of our core values at IES is customer obsession. We understand that the last mile of execution matters to customers, how we show up for our customers, our integrity in building enterprise partnerships with brands and platforms, our investments in service and local markets, as well as our ability to set clear expectations and deliver differentiated products on time. We continue to invest in research, insights, and attention metrics to demonstrate the value of investing in high-quality media. We process massive amounts of differentiated data related to ad events every day. There are three datasets that we leverage that are differentiated from our competitors, transparency, cost, and performance. We are connecting the dots between media quality, cost of media, and business outcomes. By layering these unique findings with our advanced contextual targeting solutions, our customers are able to make smarter decisions that lead to better outcomes and better ROI. In a recent study we launched in partnership with HP, we found that contextually relevant environments drove higher attention and outcomes. When HP's ads ran on contextually relevant pages, it led to a 3% higher attention and a 14% higher purchase attendance. According to internal data from June, we found that quality impressions that are in view and brand safe drove a 423% uplift in conversion rate when compared against flagged impressions. Earlier this week, we announced the expansion of our integration with MediaOcean. Agency and brand media buyers use IAS's Signal Dashboard and Prisma, MediaOcean's buyer workflow, can automate campaign creation and benefit from increased efficiencies. As part of the integration, brands and advertisers who use Prisma, IAS, and Google Campaign Manager 360 We'll be able to link campaigns and enable auto-tagging via Google seamlessly. As a substantial portion of IAS's customers use MediaOcean, we believe this expansion of capabilities will have an immediate impact on campaign and workflow efficiency for ad buyers across the globe. At IAS, we are executing on our business plan, launching differentiated products, and innovating for the future. We achieved strong results in the second quarter. However, we experienced softness in some verticals beginning late in the second quarter across geographies related to macroeconomic conditions. We've also experienced delayed starts on recent wins and longer sales cycles on prospective new business related to the current climate. This is consistent with what other companies have discussed recently, and we expect these conditions to continue for the remainder of the year. As a result, we are revising our full-year financial outlook. We believe our model is well-suited to navigate this challenging period. We expect to exceed the Rule of 50 for 2022 with continued growth and profitability at scale. We expect to achieve full-year revenue growth of approximately 24%, and we are maintaining full-year adjusted EBITDA margin levels at approximately 31% based on the midpoints of our revised forecast. Despite the current market challenges, we remain excited about our long-term vision. We're still early in on our journey, and we're just getting started. And with that, I'll turn it over to Joe to review the financials.