Integral Ad Science Holding Corp.

Good day, and thank you for standing by. Welcome to the IAS Q2 2023 earnings call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your handset is raised. To withdraw your question, please press star 1-1 again. Please be advised, that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jonathan Schaffer, Head of Investor Relations at IAS.

Thank you. Good afternoon and welcome to the IAS 2023 Second Quarter Financial Results Conference Call. I'm joined today by Lisa Utschneider, CEO, and Tanya Secor, CFO. Before we begin, please note that today's call and prepared remarks contain forward-looking statements. We refer you to the company's filings with the SEC posted on our investor relations site at investors.integralads.com for more details about important risks and uncertainties that could cause actual results to differ materially from our expectations. We will also refer to non-GAAP measures on today's call. A reconciliation of non-GAAP measures to the most directly comparable GAAP measures is contained in today's earnings release available on our investor relations site. 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 2023 second quarter results call. We reported positive second quarter performance with revenue of $113.7 million, exceeding our prior outlook of $111 to $113 million. Adjusted EBITDA increased to $37.4 million ahead of our prior outlook of $35 to $37 million at a 33% margin. We expect continued revenue growth and strong profitability in the second half of the year, and we are raising the midpoint of our full-year revenue outlook to $462 million. In June, we were delighted to host our first Analyst and Investor Day. The event highlighted our talented IES leadership team and showcased our differentiated technology through product demos of our total media quality and CTV solutions. The day also featured partners including TikTok, Mindshare, and Halion. IES was thrilled to have these close partners participate as they affirmed our critical role in the digital media ecosystem. Our partnership with Halion, formerly GSK Consumer Healthcare, is a great example of how marketers place their trust in IES. Halion selected IES as their global verification provider. going from four partners to one. Halion leverages IES's global scale and best-in-class technology for an end-to-end view of their portfolio of over 100 brands in 92 markets. We also unveiled a refresh brand strategy at the investor day. Our new branding reinforces IES's standing as a leading global media measurement and optimization platform. Our mission is to provide global advertisers and publishers the most actionable data to drive superior results. As part of the rebranding, when speaking about our business, we will refer to measurement, optimization, and publisher solutions, which replace advertiser direct, programmatic, and supply side, respectively. Building on our new business momentum from prior quarters, we continue to win major global client opportunities, often following head-to-head product and tech due diligence against other providers. We're excited to share the news of L'Oreal's selection of IES as their global strategic partner for ad verification, expanding our reach to encompass over 45 markets worldwide. IES will be leveraged for YouTube, but also to bolster brand safety measures across various other channels, including TikTok and Amazon. L'Oreal's choice of IES reflects our robust product roadmap's effectiveness, especially within connected TV and social media platforms. During the quarter, we drove momentum in the APAC region with recent wins, including LG Electronics, a global innovator in technology and consumer electronics, Singtel, the largest telecommunications company in Singapore, and Maruti Suzuki, India's largest automotive manufacturer. We continue to see results as we focus on the right areas. In social media, we are laying the groundwork for accelerated revenue growth globally. As TikTok, Meta, and YouTube launch short-form video-based products that are generating unprecedented user growth, we are providing critical solutions for their platforms. We are investing in differentiated technology that is getting smarter and creating a flywheel effect of accelerated growth and increased marketer demand. We are realizing strong adoption of our Total Media Quality, or TMQ, product, for social media platforms as we expand availability into new markets. TMQ uses AI and ML to provide insights into video content in the social media live feeds through frame-level analysis of image, audio, and text. Marketers have the ability to monitor the quality of their media buys on social media live feeds and ensure their ads are appearing next to content that is brand safe and suitable. By leveraging AI, we now support over 90 languages globally, up from just four languages earlier this year. In terms of other recent highlights, during the quarter, IAS announced a significant expansion with TikTok of our TMQ brand safety and suitability measurement product. TMQ is now available to advertisers in more than 30 markets. Post-bid TikTok campaigns were up 78% in the second quarter from the first quarter of 2023. In June, IAS rolled out viewability measurement tools for Facebook and Instagram Reels. IAS will now provide viewability and invalid traffic measurement, or IVT, for Meta's rapidly growing Reels video feed inventory. Advertisers can verify that their ads are seen by real users. Separately, we look forward to the expansion of brand suitability verification on feed to all brand safety and suitability partners later this year. We continue to expand our YouTube measurement products to provide advertisers with greater insight into the type of content their ads are shown. We've expanded our TMQ solution capabilities to YouTube Shorts and Google Video Partners, or GVP. IES is now providing viewability and IVT measurement for YouTube Shorts' inventory. IES is first to market, providing GARM-aligned brand safety and suitability measurement on GVP inventory. Our solution with GVP enables advertisers to share video ads on publisher websites and mobile apps beyond YouTube with confidence. Retail media advertising is one of the fastest growing channels and has become a valuable medium for marketers. IES provides coverage across nine out of the top 10 retail media networks, and we are actively expanding our measurement capabilities and innovating in the space for marketers. We are excited to partner with Uber's advertising division to help validate performance and effectiveness of journey ad campaigns on Uber advertising. IES will verify viewability, fraud, and brand safety to enable further transparency to Uber's brand clients. In addition, we announced our first market partnership with Criteo. IES will enable onsite viewability and IVT measurement across Criteo's network of retail media partners so that marketers can reach real users and maximize engagement across this critical channel. In optimization, we welcome Sam Cox to IAS as SVP of product management. Sam oversees global product strategy and execution for IAS's programmatic and optimization solutions. He brings deep experience in advertising technology and exchange-based trading and joins us most recently from Amazon and Google. We continue to develop our attention metrics to help marketers optimize their media spend and achieve targeted outcomes. In May, we announced a strategic partnership with Lumen Research to combine IAS's attention capabilities and actionable data with Lumen's eye-tracking expertise. In June, we launched our quality attention post-bid measurement product. Quality attention is focused on driving quality impressions boosting higher engagement rates without scale issues and driving higher conversion. In CTV, the industry continues to grow as more consumers adopt ad-supported platforms. On the measurement side, IES has received the industry's first accreditation for CTV viewable impressions from the Media Rating Council, or MRC. IAS is the only company to date to have earned this accreditation as well as also receiving MRC accreditation for CTV rendered impressions. IAS partnered with Iris TV to launch TMQ for CTV brand safety and suitability, the industry's first video-level brand suitability measurement for CTV. IAS will provide marketers with reporting on CTV buys aligned to the GIME framework. We partner with Roku to help advertisers accelerate their shift to TV streaming with confidence. IES integrated its IVT pre-bid filters on Roku's OneView DSP. In addition, IES supports Roku's advertising watermark to combat device spoofing on CTV. By leveraging our unique Publica assets, including an ad server, unified ad auction, and SSAI stitching capabilities, We are helping our publisher customers optimize yields on their inventory by providing consumers a familiar TV-like ad break experience. We are excited that Publica is one of the first to be certified as part of Amazon Publisher Services ad server certification program for streaming TV. DraftKings recently announced the launch of DraftKings Network and has selected Publica as their primary CTV ad server as they launch into the streaming landscape. Vivo, the world's leading music video network, has selected Publica to help them power their programmatic ad break decisioning globally. Turning to other areas of the business, IIS strengthened our partnership with Anzu to provide the industry's first measurement solution for 3D in-game advertising. IAS will help marketers monitor and improve their campaign performance by authenticating viewability in 3D environments. Sustainability is a priority for IAS. Recently, IAS and Scope 3 partnered to provide transparency into sustainability reporting. With IAS, marketers can collect and leverage their carbon emissions data to reduce their own carbon footprint and optimize campaign spend to lower emissions. In addition, Publica, in partnership with the Trade Desk and Index Exchange, released research findings powered by Scope 3 data. The results highlighted the benefits of adopting OpenRTB 2.6 to support sustainability and programmatic CTB advertising, indicating an 84% decrease in ad selection carbon emissions for those participating in the study. We also joined Ad Net Zero, advertising's not-for-profit coalition that is working to reduce the carbon footprint for the advertising industry. Through this partnership, IES will work alongside the biggest platforms and advertising agencies to drive change and help the advertising industry to reduce the carbon impact to net zero. In today's environment, marketers are placing even greater scrutiny on media quality and ROI with increased efficiency on every invested ad dollar. We heard this repeatedly at Canline in June with tremendous excitement around how we are leveraging AI and ML to increase accuracy and efficacy. Our goal is to meet our customers' evolving needs with a broad product portfolio based on increasingly actionable data. The major media platforms and fast-growing channels like social media and CTV are innovating to create greater engagement for consumers, particularly in video. We are accelerating our product roadmap with these platforms to drive adoption of our offerings. We believe that this may translate into even greater opportunity for IES at massive scale over time. To conclude, we exceed our expectations for the second quarter and look forward to delivering profitable revenue growth in the second half of the year. And with that, I'll turn the call over to Tanya to review the financials.