Integral Ad Science Holding Corp.

Good day and thank you for standing by. Welcome to the IAS fourth quarter 2024 financial results conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 1 1 on your telephone. You will then hear an automated message advising your hand 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 Jonathan Schaefer, Senior Vice President, Investor Relations. Please go ahead.

Thank you. Good morning and welcome to the IAS fourth quarter and full year 2024 financial results conference call. I'm joined today by Lisa Utschneider, CEO, and Jill Putman, Interim 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.

Thank you, Jonathan. Welcome, everyone, to our 2024 fourth quarter and year-end call. We deliver positive fourth quarter results with double-digit revenue growth across our measurement, optimization, and publisher businesses. Revenue in the fourth quarter increased 14% to $153 million at a 40% adjusted EBITDA margin. Full year 2024 revenue grew 12% to $530.1 million at a 36% adjusted EBITDA margin. Our profitable growth in 2024 enabled us to significantly exceed the rule of 40 for the fourth consecutive year since our IPO in 2021. 2024 was a year of innovation that we believe positions IAS for continued double-digit growth in 2025. We advanced our industry-leading technology, grew our relationships with key advertisers, platforms, and publishers, and enhanced our leadership team with the addition of a new chief operating officer and chief product officer. We introduced several new capabilities in our core measurement offerings and increased our reach on key platforms to capture additional ad spend across channels. We also expand our pre-bid optimization product suite to drive performance for advertisers. In 2024, we successfully scaled our premium AI-driven total media quality or TMQ measurement product in social media. We are integrated with major platforms including Meta, YouTube, TikTok, Snap, Pinterest, and most recently Reddit, which we launched in December. Reddit selected IES to integrate into their limited inventory safety tier based on IES's market leading TMQ capabilities. We also closed the loop on the social platforms with the launch of our pre-bid optimization solution. Advertisers on the leading social platforms can now optimize their ad placements, customize their suitability settings, eliminate waste, and drive higher returns on their ad spend. In October, IAS announced testing of a first-to-market content-level avoidance optimization solution for advertisers on Meta across Facebook and Instagram feed and Reels. During testing, our content block list solution on Meta delivered a 71% reduction in wasted ad spend on unsuitable content. Earlier this month, we announced new features and increased global availability for our content block list optimization solutions on Meta. We now support nine additional content categories for a total of 45 and six additional languages for a total of 34. In addition, IES is currently in alpha testing in partnership with TikTok for its new video exclusion list solution. Alpha participants can partner with IES for both measurement and optimization on TikTok. We remain on track and look forward to delivering these social optimization capabilities on TikTok in the first half of 2025. In 2024, we launched our differentiated quality attention measurement product for advertisers, publishers, and SSPs. Quality attention is the first product to unify impression level media quality signals and Lumen Research's eye tracking technology with machine learning. Brands can utilize these attention scores to drive up to 130% lifting conversion rates for their ads when comparing high attention impressions versus low attention. In the fourth quarter, we released our quality attention optimization product in beta. With this pre-bid expansion, IES now offers complete coverage for attention metrics across post-bid, pre-bid, and social media. We continue to roll out our quality sync pre-bid segment, which is now available across all major DSPs. In the fourth quarter, we announced the availability of our QualitySync pre-bid segment in Amazon DSP. We are delighted to continue this momentum in 2025 with the launch earlier this month of QualitySync in Google Display and Video 360. With QualitySync, advertisers can simplify their workflows by automatically syncing their pre-bid and post-bid settings across all channels for programmatic buys. In CTV, our clients are leaning into our solutions and integrating more deeply with our Publica and IES measurement offerings. According to eMarketer data, as of November 2024, the U.S. CTV market is expected to reach over $47 billion by 2028. We are focused on driving publisher performance and increased efficiencies with Publica. On last quarter's call, I discussed the introduction of new product features to increase bidding competition in ad auctions. These are powerful and superior product differentiators, which, along with the contribution from Oracle WINS, contributed to 30% publisher growth in the fourth quarter. We look forward to scaling the offering in 2025. IES leads the industry globally with 32% of our fourth quarter revenue from markets outside of the Americas. We consistently find that our global coverage is a differentiating factor in winning RFPs across verticals. In December, we announced plans to expand into China, where we are currently in alpha testing. This initiative unlocks the world's second largest advertising market with an estimated $140 billion in digital ad spend in 2024, according to eMarketer data as of November 2024. IAS will also offer local support to Chinese advertisers looking to grow their reach beyond China's borders. The announcement follows the expansion of IAS's operations in four key APAC markets. Hong Kong, Taiwan, Thailand, and Vietnam. Also in December, we announced an exclusive first-to-market partnership with Kwai for Business, one of the most popular content communities and social platforms in Brazil with 1 billion active users. Our brand safety and suitability measurement solutions, including TMQ, are now available for advertisers on Kwai in LATAM and APAC. In 2024, we sign major new customer wins and renewals, including former Oracle customers across brands, platforms, and publishers. We are driving the integration and activation of these Oracle wins and see an exciting opportunity to provide additional IaaS capabilities to these customers. To this end, we have successfully onboarded over 30 previous hires from Oracle, who bring extensive programmatic, mid-market, and data experience. Since our last call, we secured several new wins, including in the luxury, financial services, and automotive verticals, as well as renewals and expansions with existing partners. Renault-Nissan-Mitsubishi, a strategic alliance between the three global automakers, renewed and expanded their multi-year global partnership with IAS to include TMQ, attention, and sustainability. The renewal builds on IAS's longstanding exclusive partnership with Renault and global relationships with Nissan and Mitsubishi based on our innovative product offerings and superior service. Marriott renewed their global social measurement partnership with IAS and switched to IAS from an incumbent provider for our optimization offerings. IAS was selected based on our differentiated total visibility offering and our superior service. Essilor Luxottica, home to leading global vision care and eyewear brands, renewed and expanded its agreement with IAS. The renewal includes TMQ, attention, sustainability, and total visibility, as well as our pre-bid social optimization offering. They value our service and consider IAS as a crucial partner in protecting their brand's digital exposure. Prada renewed their global partnership with IAS across our TMQ and attention offerings while expanding to include social optimization. Prada trusts IAS's technology and team to safeguard their brand and maximize the impact of their ads. All four of these renewals are a testament to our global leadership and the importance to brand marketers of IAS's established coverage across markets. More than ever, brands are seeking both protection and performance solutions to drive efficiency and maximize outcomes on their ad spend. We believe we are proving that higher quality media leads to higher ROI for both large and mid-market customers. IES is in the unparalleled position of seeing every digital media interaction with our measurement offerings. As a result, we can leverage insights and data to drive performance with our premium optimization products. In 2025, we are focusing our product roadmap on three key objectives, delivering performance and ad effectiveness, expanding our reach to better serve our customers, and innovating further in media efficiency and protection. We recently announced Total Media Performance, or TMP, a suite of pre-bid optimization insights products that maximize ad performance while protecting brand equity. The TMP suite includes Dynamic Performance Profiles, or DPP. DPP delivers performance or brand outcomes by automatically adjusting targeting segments based on IAS's unique quality path and customer outcomes data. DPP is offered on all major DSPs through our pre-bid integrations and is designed to seamlessly align pre- and post-bid media quality controls. We are expanding our reach in several ways, including the scaling of our pre-bid optimization solution across the largest social platforms. In addition, mid-market represents a meaningful opportunity for our measurement and optimization offerings. We have dedicated resources to developing products specifically for mid-market customers who require seamless, self-serve solutions that are easy to activate. We are innovating our offerings to prioritize media efficiency and protection. In the fourth quarter, we launched IAS Curation with Google Ad Manager. With IAS Curation, advertisers can now consolidate bidding on high-quality inventory, and precisely target contextually relevant content to drive efficiency for their ad buys. We look forward to expanding IAS curation to more SSPs in 2025. In CTV, we are excited to build on our momentum in this high-growth market. We are focused on helping advertisers extend the capabilities they use for open web and social media to drive efficiency and performance for their fast-growing CTV spend. We expect to scale adoption of Publica's new product features built to increase bidding competition in ad auctions. IES and Publica will continue to focus on supply path optimization to connect buyers and sellers in the most efficient ways possible. Our AI and data strategy is critical to driving both product innovation and cost efficiency. We are advancing our data science capabilities by deploying cutting-edge AI models that are designed not only to accelerate time to market and scale new products, but also to reduce processing costs. By harnessing the power of our data, we empower brands and publishers to unlock new, innovative use cases to maximize ad performance and operational efficiency. We made significant progress in 2024 as we advanced our technology and deepened our partnerships across the online advertising ecosystem. In 2025, we believe we will see new opportunities to deploy IES's technology and deliver impact for brand marketers. We expect to deliver double-digit profitable growth in 2025 as we expand our coverage across formats, channels, and markets. Last month, we announced the appointment of Jill Putman as interim chief financial officer. Jill has served as an IAS board member since 2021 and was also our audit committee chair. She is a proven finance leader with over 30 years of experience, including as CFO of Jamf Holding Corp. We thank Jill for stepping into the role, and we have engaged with an executive search firm to find a permanent CFO. With that, I'll turn the call over to Jill to review the financials, and then we'll take your questions. Thanks, Lisa, and welcome, everyone.