Integral Ad Science Holding Corp.

Good day, and thank you for standing by. Welcome to the IAS Q1 2025 Earnings 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 will need to press star 1-1 on your telephone. You will then hear an automated message advising that your hand is raised. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Jonathan Shaffer, SVP of Investor Relations. Please begin.

Thank you. Good afternoon and welcome to the IAS First Quarter 2025 Financial Results Conference Call. I'm joined today by Lisa Utchneider, 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 2025 first quarter call. Our first quarter results build on our positive momentum from the fourth quarter. We are setting clear expectations and delivering on them. We reported 17% revenue growth in the first quarter, ahead of our prior outlook of a 13% increase at the midpoint of our guide. We achieved an adjusted EBITDA margin of 31%. We are executing on our business strategy as we lean into our competitive differentiators. We are advancing our leading AI-backed technology, leveraging our first-to-market platform partnerships, and expanding our reach across channels and geographies with an 18% increase in revenue outside of the Americas in the first quarter. By closely listening to the voice of the customer, we are innovating and creating value across product and technology while maintaining a high bar for quality and reliability. We believe that our customer value proposition focused on driving ROI and greater efficiencies continues to resonate with marketers in the current environment. As a result, we expect double-digit profitable growth in the second quarter and for the full year 2025. On our last call, we discussed three priorities for our 2025 product roadmap, performance, reach, and innovation. Starting with performance, we are all in on increasing ROI for advertisers. Last month, we announced the availability of Dynamic Performance Profiles, or DPP. DPP is designed to help advertisers realize maximum performance across their media buys. Powered by our proprietary total visibility product, DPP uses customer outcome data to automatically identify and bundle top performing contextual targeting segments. An IAS case study of an advertiser's conversion-based campaign in APAC last December revealed that DPP activated campaigns increased conversion rates for this customer by 34% and eCPM efficiency by 26%. DPP is an essential component of our total media performance, or TMP, suite of pre-bid optimization products. designed to maximize ad performance while protecting brand equity. Within our TMP suite, we are also launching in the second quarter audience-enriched contextual targeting segments, which demonstrates our commitment to delivering advanced performance-enhancing tools. We expect these segments to reach high-value targeted audiences with a contextual first solution to enhance scale and performance. Customers can activate segments in DSPs to reach their target audience where they are most engaged. In March, we conducted a case study in partnership with a customer in the travel vertical and found that placements with audience-enriched segments drove a 159% higher success rate at 72% lower cost. We are also broadening our reach with the major platforms in protecting customers' brand equity wherever they invest. In the first quarter, we launched new features and increased global availability for our content block list optimization solution on Meta. In April, we announced general availability of pre-bid video-level exclusion lists on TikTok as part of our social optimization offering. The expansion follows successful texting on the platform. Advertisers on TikTok can now benefit from pre-bid granular exclusion powered by IAS's AI-backed multimedia technology, giving them greater control over their advertising investments. In April, we announced the expansion of our partnership with Reddit to include viewability and invalid traffic or IPT measurements. These capabilities complement our earlier integration of our total media quality or TMQ brand safety and suitability measurement on the platform. Advertisers now have access to third-party campaign insights backed by trusted and transparent metrics to help brands safeguard and scale across Reddit. Last week, we announced a strategic first-to-market partnership with Nextdoor, the essential neighborhood network Establishing IAS is the provider of pre-bid brand safety and suitability optimization on the platform. Using AI-driven multimedia technology, IAS will offer advertisers an additional layer of third-party transparency and suitability for their Nextdoor campaigns. We continue to expand our partnership with the general availability of TMQ for Nextdoor expected in the second half of 2025. Our pre-bid optimization solutions on the social platforms are shown to improve performance in ROI for advertisers. According to initial IAS studies, advertisers' annual savings can reach as high as 2x their investments when using our social optimization solutions. In May, we announced the launch of our pre-screened brand safety solution for Google's Search Partner Network. With this launch, we will provide advertisers with greater control over their investments before their ads are shown across the search partner network. We are scaling quality sync pre-bid segment adoption on the leading DSPs. With quality sync, advertisers can automatically sync their pre-bid and post-bid settings across all channels for programmatic buys. We are generating traction with Amazon DSP, launched late last year, as well as displaying video 360, launched in the first quarter. According to an IES study, campaigns using quality sync benefit from lower contextual brand safety and IBT fail rates. Lower fail rates result in 58% lower cost per conversion, helping brands boost ROI and media efficiency. In 2025, we are optimizing our go-to-market strategy to provide superior global support and service to an ever-increasing set of customers. We are expanding our reach across market segments, channels, and geographies. We are expanding our reach and performance offerings within the mid-market segment. Mid-market customers require streamlined, impactful, and easy-to-activate solutions, and we are delivering just that. including pro-measurement powered by our next-generation signal experience built with the agentic future in mind. We continue to invest in growing media channels, including audio and gaming. Last week, IES announced with Spotify the launch of new brand safety and suitability targeting and measurement tools for podcast advertisers for the Spotify audience network. This solution includes pre-baked classification and tailored targeting to safeguard brand reputation while driving ROI. In April, Roblox announced that IES will offer coverage across media quality and performance solutions, including fraud, brand safety, and suitability and viewability. Turning to our focus on innovation, our AI and data strategy are core investment areas for IES. AI is an integral part of our DNA and powers the majority of our products. Today, AI plays a critical role in how we operate, increasing velocity by streamlining workflows, enabling scale through automation and personalization, and improving accuracy by identifying patterns and insights that inform better decisions. We apply AI with intent, not just to move faster, but to solve problems more effectively. AI enhances how we build, analyze, and deliver, while ensuring that human judgment, transparency, and responsibility remain central to everything we do. Our differentiated data fuels AI investments by our customers to enable them to maximize the value of quality media signals. In April, we announced the launch of our Impression Feed, an innovative approach to monetizing impression-level data. Advertisers and agencies can use the impression feeds granular metrics to gain transparency into their digital advertising investments. Our publisher business is another great example of how IAS innovates. IAS's public capabilities set us apart in the CTV market. We are scaling product features built to increase bidding competition in ad auctions and therefore to increase yield for publishers. We are also enabling publishers to maximize supply path optimization by providing them with optionality to connect directly with their demand sources. These differentiated solutions highlight the synergies between IES and Publica and the power of our publisher-facing technology. Turning to our new business momentum, we have secured several new wins and renewals in key verticals. Customers cite several reasons for partnering with IES. such as our advanced technology, ease of activation, and superior global customer service. Xenia, a global fashion luxury company, established an exclusive agreement with IES and expanded their global partnership to include IES's measurement and optimization solutions. IES will provide TMQ, social optimization, and attention. Xenia selected IES based on the accuracy of our classification technology. This win reinforces IAS's leadership in the luxury goods vertical along with expanded partnerships with Essilor, Luxottica, and Prada announced on last quarter's call. ASICS, a sporting goods company, picked IAS as their global verification provider for our full suite of measurement offerings, including TMQ, after previously working with Oracle. We won this partnership based on the ease of activation and use of our products, as well as the superiority of our tech and detailed reporting capabilities. AXA, one of the world's leading insurance companies, renewed their partnership with IAS following an extensive diligence process. Our established relationship and high service levels enabled IAS to maintain its position as AXA's preferred ad verification provider. This renewal continues our track record of success in France with global brands including Renault, Opella, Stellantis, and LVMH. We added a new partner and secured a major renewal in the chocolate and confectionery vertical, increasing our global leadership in the sector with partnerships with eight of the top 10 producers worldwide. Lastly, we are ramping our new clients that selected IAS following Oracle's exit from the advertising business. We are increasing adoption of our premium TMQ product for brand safety and suitability, along with our optimization offerings. We expect to grow the scope of these relationships as we build trust through actionable data that drives superior results. We exceeded our expectations for the first quarter and advanced our 2025 product roadmap with a focus on performance, reach, and innovation. By executing on these priorities and offering differentiated products, we are creating a flywheel effect to drive superior performance for our customers. We expect profitable growth in 2025 as we partner with marketers to achieve their goals. With that, I'll turn the call over to Jill to review the financials and then I'll comment on our outlook.