Earnings call transcript: Integral Ad Science beats Q2 2025 expectations

Integral Ad Science (IAS) reported robust financial results for the second quarter of 2025, surpassing analyst expectations with an earnings per share (EPS) of $0.10 against a forecast of $0.04. The company’s revenue reached $149.2 million, slightly above the anticipated $143.39 million. According to InvestingPro analysis, IAS currently trades below its Fair Value, with a strong financial health score of 3.17 ("GREAT"). Despite this strong performance, IAS shares dipped by 1.36% in after-hours trading, closing at $7.96.

Key Takeaways

• IAS reported a 16% increase in total revenue for Q2 2025.
• The company raised its full-year revenue guidance to $597-605 million.
• Adjusted EBITDA margin stood at 35%, with a net income of $16 million.
• A notable increase in large advertising customers, rising to 240 from 232.

Company Performance

Integral Ad Science demonstrated solid growth in Q2 2025, with revenue increasing by 16% year-over-year. The company continues to strengthen its position in the digital advertising sector, benefiting from strategic partnerships and innovative product offerings. The expansion of its customer base, particularly among large advertisers, underscores IAS’s competitive edge in the market.

Financial Highlights

• Revenue: $149.2 million, up 16% year-over-year.
• Earnings per share: $0.10, exceeding the forecast of $0.04.
• Adjusted EBITDA margin: 35%.
• Net income: $16 million.

Earnings vs. Forecast

IAS outperformed market expectations with a significant EPS surprise of 150%. The revenue also exceeded forecasts by 4.05%, marking a positive deviation from anticipated figures. This performance highlights the company’s effective growth strategies and operational efficiencies.

Market Reaction

Despite the earnings beat, IAS’s stock fell by 1.36% in after-hours trading, closing at $7.96. InvestingPro data shows the stock has been quite volatile, with a beta of 1.55, which may explain such price movements despite positive results. The stock is currently trading 42% below its 52-week high of $13.62.

Outlook & Guidance

IAS has raised its full-year revenue guidance to a range of $597-605 million, indicating a 13% year-over-year growth. The company expects Q3 revenue to be between $148-150 million, with continued investment in AI and global expansion. IAS aims to achieve the "Rule of 48," combining revenue growth and profitability.

Executive Commentary

"We are customer obsessed at IAS. Our ongoing investment in AI infrastructure enables us to anticipate our customers’ needs," said Lisa Utzschneider, CEO. CFO Alpanna Wagner added, "We expect to reach the rule of 48 for the full year, which speaks to our commitment to delivering profitable growth."

Risks and Challenges

• Market competition remains intense, with new entrants and existing rivals.
• Economic uncertainties could impact advertising budgets and spending.
• Rapid technological changes require continuous innovation and adaptation.

Q&A

During the earnings call, analysts inquired about the progress of Oracle customer integration and the doubling of social optimization adoption. IAS reported a 10% year-over-year increase in optimization pricing and highlighted strong international social platform performance.

Full transcript - Integral Ad Science Holding LLC (IAS) Q2 2025:

Conference Operator: Good day, and thank you for standing by. Welcome to the IAS Second Quarter twenty twenty five Financial Results Conference Call. At this time, all participants are in a listen only mode. After the speakers’ presentation, there will be a question and answer session. Question be speakers’ Please be advised that today’s conference is being recorded.

I would now like to turn the conference over to your first speaker, Jonathan Schaeffer, Senior Vice President of Investor Relations. Please go ahead.

Jonathan Schaeffer, Senior Vice President of Investor Relations, IAS: Thank you. Good afternoon, and welcome to the IAS Second Quarter twenty twenty five Financial Results Conference Call. I’m joined today by Lisa Utzschneider, CEO and Alpano Wagner, 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 Utzschneider. Lisa, you may begin.

Lisa Utzschneider, CEO, IAS: Thank you, Jonathan. Welcome everyone to our twenty twenty five second quarter call. We continued our business momentum and delivered profitable growth in the second quarter that exceeded our expectations. Total revenue increased 16% at a 35% adjusted EBITDA margin. During the quarter, we expanded our relationships with existing customers, added new brand logos and furthered our global reach.

We are raising our full year outlook to reflect our positive second quarter performance. We are customer obsessed at IAS. Our ongoing investment in AI infrastructure enables us to anticipate our customers’ needs and drive demand in this rapidly evolving AI landscape. In the second quarter, we executed on our product priorities of performance, reach and innovation as we enhanced our differentiated technology and grew our platform partnerships. Our performance products are driving efficiency and ROI for our customers.

CTV is the fastest growing channel in terms of media spend according to eMarketer. Our publisher performance products for CTV were strong contributors in the second quarter. We are growing our international leadership position in CTV with our public of products as we partner with major broadcasters globally. In the second quarter, we reached a two year expansion and renewal with Samsung, a leader in the CTV space and our largest OEM partner. In EMEA, we won the ad serving business of a major German publisher.

In APAC, we signed Australia SBS, a public service broadcaster, for a strategic deal to monetize their live sports inventory focused on the twenty twenty six FIFA World Cup. In addition, we continue to drive customer adoption of our Vault offering built to increase bidding competition in CTV ad auctions. We are expanding our capabilities across channels to wherever brands activate their digital advertising. We added to our buy side offerings for CTV by expanding Quality Sync or QSP into CTV inventory supply to support quality control and supply path insights for CTV. Advertisers now have access to a transparent view into where their ads are being delivered across all their CTV buys to enable them to find the most efficient pathways for their ad dollars.

QSP is available across all major DSPs with strength in the second quarter on DV360 launched in the first quarter and on Amazon DSP launched late last year. QSP is part of Total Media Performance, or TMP, an AI driven bundle of our leading measurement and optimization solutions. According to our study of a client campaign, our performance products delivered eight times more efficient eCPMs and nearly $9 in return on ad spent for every dollar spent on media over a four month period. That’s 93% higher than the customer’s target. We continue to see strong demand for our products with significant room to grow with new and existing customers.

In the second quarter, we secured several competitive wins. A global apparel company selected IES for our leading measurement products in The U. S. Our superior brand suitability classification technology and supply path transparency were deciding factors for the company. A luxury retailer switched to IES from an incumbent provider for our measurement and optimization solutions.

We are excited to expand our leading presence in the luxury vertical after demonstrating the value, efficiency, and performance of our offerings. A major media and entertainment company selected IES to provide viewability, invalid traffic and brand safety and suitability products. We won this customer as a result of our best in class service and suitability offerings. We are also driving penetration across our product stack with existing customers. Volkswagen of America chose to adopt TMQ across the major social platforms in The U.

S. This builds on our multiyear partnership with Volkswagen Group for our measurement and optimization offerings, including QSP and total visibility. TMQ provides Volkswagen with transparency and efficiency across the social platforms, helping to maximize return on ad spend while ensuring their brands are protected. We have completely transformed our head to head testing capabilities in the last twelve months. As a result, another major automotive company switched to IES following a competitive RFP process with our performance products.

We were originally selected to provide our verification offerings in The U. S. We’ve now expanded this partnership to include QSP to drive improved outcomes for the brand while optimizing for safety. A leading financial services company expanded their relationship with IES to include social optimization in the second quarter. Our superior automation capabilities allowed this company to scale their needs across social environments while prioritizing performance.

We are expanding our product reach through deeper integrations with our platform partners. In June, we launched new contextual category reporting for meta platforms across Facebook and Instagram Feed and Reels. We are closing the loop for advertisers by aligning measurement reporting to contextual categories available through IAS’ first to market content block list optimization solution for Meta. During the quarter, we extended our track record of first to market platform integrations on the strength of our leading AI backed technology. In June, we announced a partnership with Lyft, enabling advertisers to validate the quality of their Lyft media buys with our viewability, invalid traffic, and brand safety measurement.

As the first media quality measurement partner for Lyft media, we are trusted to ride along on every impression. This enables us to provide advertisers with greater transparency into their media buys through trusted and transparent metrics. In June, we announced a strategic partnership with Snap and Lumen Research to bring customized attention measurement to Snapchat. Snap Attention Measurement will now enable advertisers to directly and seamlessly gain social attention metrics, combining Lumen eye tracking and IES’ AI powered media quality data to create a bespoke Snapchat attention score within the IES signal platform. Our leading global presence is a clear differentiator and important contributor to our customer growth and retention.

International accounts represented over 50% of adoption of our ramping pre bid social optimization offering in the second quarter. Our performance products are purpose built for mid market customers and offer streamlined, self serve, easy to activate solutions. We are excited to announce a partnership with StackAdapt, a mid market focused technology company in advertising and marketing. We are integrating IS pre bid avoidance and targeting within the Stack Adept DSP, so brands of any size can remain confident that they are optimizing impressions with greater confidence and accuracy. In June, the IS team attended the Cannes Lime Festival of Creativity, where we unveiled new signal platform capabilities.

The signal application platform offers customers a unified experience across activation, pre bid optimization and post bid measurement, encompassing open and closed ecosystems, CTV and emerging channels. Recent enhancements enable mid market customers to adopt measurement features via self-service. We are investing in new AgenTic and GenAI capabilities to accelerate activation and deliver actionable insights. At IAS, we are scaling GenAI into our technology and product stack to drive innovation. Up to 97% of model validation has moved from humans in the loop to GenAI.

Our AI labeling is now 29 times faster and 45% more precise than human annotators. We process fifty years of video content per day, up from just two years of video less than twenty four months ago. This heightened velocity and precision fuels premium products like total media quality, pre bid social optimization, and our TMP bundled solution. Leveraging our AI models, we can now launch new suitability profiles quickly, detect new content risks at speed, and proactively build custom segments. These capabilities position IES as the industry’s signal to what works when investing in digital advertising.

Last week, we announced that we received the first ethical artificial intelligence certification from the Alliance for Audited Media. This certification sets IAS apart for our use of AI and underscores our high standards of responsible and ethical AI across our measurement products and services. We are investing in top talent to amplify our innovation leadership and enhance our go to market capabilities. In July, we appointed industry leader Carrie Seifer, as Executive Vice President of Global Sales, reporting into Mark Brobowski, COO. In conclusion, we executed on our strategic priorities in the second quarter and built on our growth momentum.

Our investments in performance, reach and innovation continue to drive results. We believe there is significant runway for growth as we scale product adoption, add new customers and partners and deepen existing relationships. We were thrilled to welcome Alpanna Wagner as our new CFO in June. Alpanna brings over twenty five years of financial leadership to IES, including significant public company experience. Alpanna is off to a great start.

We are excited to have her join today’s call. I will now turn the call over to Alpanna to review the financials, and then we’ll take your questions.

Alpanna Wagner, CFO, IAS: Thanks, Lisa. It’s great to be here today. I’m excited to join the IIS team. I’ve been impressed with the company’s deep customer relationships, AI first technology, and differentiated products, all of which provides us with a strong foundation to increase shareholder value as we execute on our growth strategy. Let’s start with our second quarter results, and then we’ll turn to our financial outlook for the third quarter and full year.

Total revenue in the second quarter increased 16% to $149,000,000 ahead of our prior outlook as a result of the higher than expected spend on our social measurement offerings and optimization products. We also benefited from the contribution of the new customers, including the Oracle wins. During the second quarter, we generated double digit growth in our optimization and publisher businesses, and our measurement revenue growth rate increased to 8% from 4% in the first quarter with continued gains in social media. Optimization revenue grew 16% to $68,000,000 in the second quarter. We continue to capitalize on the industry’s shift to performance with our leading optimization products.

We also benefited from the strength in financial services, particularly in insurance, as well as increased adoption of our QSP product across DSPs, most notably, DV three sixty and Amazon DSP. Measurement revenue increased 8% to $57,000,000 in the second quarter. Measurement growth was fueled by the strength in the retail and financial services verticals. Looking at measurement revenue by channel, social media revenue grew 22%, representing 60% of measurement revenue and 23% of total revenue, with increased spend from large accounts. Open web revenue declined 7% year over year, which is the same rate as the first quarter, representing the balance of our measurement revenue.

Turning to measurement revenue by format. Video grew 26% on the strength of TMQ, accounting for 61% of measurement revenue. We continue to see consistent trends in display impacted by the shift to social measurement and optimization. Publisher revenue increased 36% to $24,000,000 representing 16% of total revenue. We continue to expand our OEM partnerships, which include our new CTV products, such as our Publica Vault offering.

We also benefited from the onboarding of new customers. International revenue in the second quarter grew 8% to $43,000,000 and year to date increased 13% and represented 30% of total revenue. International revenue growth in the second quarter reflects timing of advertiser campaigns. In addition, 45% of measurement revenue in the second quarter came from outside of The Americas. We continue to prioritize global coverage where our product capabilities are a key competitive differentiator.

Turning to profitability. Gross margin for the second quarter was 77%, reflecting our ongoing infrastructure investments as well as higher costs related to optimization growth. We expect gross margin to improve in the back half of the year due to typical seasonality and increased operational efficiencies. Operating expenses for the second quarter, excluding stock based compensation, increased 14% due primarily to the timing of compensation related items. In addition, sales and marketing increased due to investment in mid market sales.

The increase in technology and development reflects higher investments in our engineering and product team, and G and A increased as a result of higher professional services fees, partially offset by lower bad debt expense. Stock based comp expense for the period was $19,000,000 within our expected range. Adjusted EBITDA, which excludes stock based compensation and onetime items, increased 12% to $52,000,000 at a 35% margin ahead of our prior outlook as a result of higher revenue. On a year over year basis, adjusted EBITDA margin reflects lower gross margin in the quarter as well as the timing of certain compensation related items as previously anticipated. Net income for the second quarter was $16,000,000 or $0.10 per share, compared to $8,000,000 or $05 per share in the 2024.

Moving to our performance metrics, our second quarter advertiser net revenue retention, or NRR, was 110% on a trailing twelve month basis. The total number of large advertising customers, which includes both mid tier and top tier customers, with annual revenue over $200,000 grew to two forty compared to two thirty two in the prior year period. Revenue from large advertising customers was 87% of total advertising revenue on a trailing twelve month basis. We continue to generate strong cash flows with $55,000,000 in operating cash flow We maintained a healthy balance sheet with cash and cash equivalents at the end of the second quarter of $91,000,000 During the quarter, we paid off our remaining long term debt.

We also announced the extension of our $300,000,000 credit facility, which increases our borrowing capacity with an accordion feature that allows borrowings to at least $550,000,000 at more favorable rates. As a result, we have greater flexibility to pursue our growth initiatives as part of our build by partner strategy. Turning to guidance. We remain encouraged by the current advertising environment as reflected in our positive second quarter performance and increased outlook for the full year. Our outlook assumes that the macro environment in the second half of the year remains consistent with what we are seeing today.

For the third quarter ending 09/30/2025, we expect total revenue in the range of $148,000,000 to $150,000,000 or 12% year over year growth at the midpoint. Adjusted EBITDA for the third quarter is expected in the range of $51,000,000 to $53,000,000 or a 35% margin at the midpoint. We are raising our full year 2025 revenue and adjusted EBITDA outlook. For the full year 2025, we are increasing our revenue outlook to $597,000,000 to $6.00 $5,000,000 or 13% year over year growth at the midpoint. For the full year 2025, we are increasing our adjusted EBITDA outlook to $2.00 8,000,000 to $214,000,000 or a 35% margin at the midpoint.

A few additional modeling points. We expect to maintain gross margin for the full year 2025 in the range of 77% to 79%. Third quarter stock based compensation expense is expected in the range of 18,500,000.0 to $19,500,000 and $71,000,000 to $73,000,000 for the full year. We expect weighted average shares outstanding for the third quarter in the range of 166,000,000 to 167,000,000 shares and 165,000,000 to 167,000,000 shares for the full year. We expect an effective tax rate of approximately 25% for the full year 2025.

In conclusion, we executed on our strategic plan in the second quarter and extended our business momentum with 16% revenue growth. Based on the midpoints of our increased revenue and adjusted EBITDA outlooks for 2025, we expect to reach the rule of 48 for the full year, which speaks to our commitment to delivering profitable growth. We look forward to updating you on our progress moving forward. And with that, Lisa and I are now ready to take your questions. Operator?

Conference Operator: Thank you. Our first question is going to come from the line of Andrew Merk with Raymond James. Your line is open. Please go ahead.

Andrew Merk, Analyst, Raymond James: Thank you for taking my question. Maybe first, if we could talk about the mode customers. I guess, how would you characterize your progress on getting those customers up the curve? I know there was the intent to just acquire them and then upsell them eventually in some of your premium priced products. Kind of wondering how that’s going at this point.

Lisa Utzschneider, CEO, IAS: Sure, Andrew. Thank you for the question. Happy to take it. So, we continue to see great momentum with our Oracle customers. As you might remember, back half of last year, the team did a terrific job of signing over 75 accounts, 70% renewal rate, very focused on onboarding, integrating the new brands, publishers, and platforms to IAS.

Round into 2025, the team’s very focused on cross selling and upselling all of these three customer types. And we’re seeing great performance, especially in our optimization solutions. The Oracle customers are leaning into optimization. In addition to cross sell and up sell, the team’s also continuing to put new Oracle wins across the board. So, really excited about the ramp.

We’re excited about the ongoing strength of the Oracle business. And the team, again, they’re doing a great job both extending the existing accounts and then putting new wins on the board.

Andrew Merk, Analyst, Raymond James: Great, thank you. And maybe one more if I could. It kind of dovetailed into that last question. On the social optimization features, obviously, you’re continuing to put out new segments, new capabilities, etcetera. Is there ever a point at which you kind of hit a critical mass where some customers who may have been on the fence about adopting social optimization, that’s the key decision factor for them and they choose to come over?

Or is it something where it’s just an additional value enhancer for the customers that you have and are looking to acquire? Thanks.

Lisa Utzschneider, CEO, IAS: Yeah, happy to take that one too. So we’re very pleased with the onboarding we’re also seeing with pre bid social optimization. You might remember that we have hundreds and hundreds of advertisers who’ve already adopted TMQ across all of the major social platforms, Meta being the largest one. In addition to continuing to increase and expand the TMQ adoption internationally, the team is also very focused on driving adoption of Prebid Social Optimization. And for example, what we’re seeing quarter over quarter is we’ve doubled the number of advertisers who’ve adopted Prebid Social.

And where we’re seeing lots of adoption happening is in EMEA. In addition to Prebid Social, we were also thrilled that Meta announced this afternoon. I don’t know if you saw that announcement with threads. The fact that IES has been selected to expand our partnership with Meta through a new test to measure Threads feed inventory. And it starts today, the test.

It’s with a limited number of advertisers. But we’ll be running third party brand safety and suitability measurement for the Threads Feed, again, with a select group of advertisers. Meta also plans to make the third party verification for ThreadsFeed globally available in the coming months. And again, this deep strategic collaboration that we have with Meta, It underscores our mutual dedication to brand safety, transparency, and innovation. So, we were thrilled that that announcement came out this afternoon, and we’re thrilled we’ve already started the test on threats.

Nick Kroner, Analyst, Truist Securities: Thank you.

Lisa Utzschneider, CEO, IAS: Thanks, Andrew.

Conference Operator: Thank you. And one moment for our next question. Our next question is going to come from the line of James Henny with Jefferies. Your line is open. Please go ahead.

James Henny, Analyst, Jefferies: Great, thank you. You continue putting up really impressive growth in the Publisher segment. Just hoping you could talk a bit more about the underlying drivers there and how we should think about the growth in that segment going forward. Thank you.

Lisa Utzschneider, CEO, IAS: Sure. Thanks, James. Happy to take that one, too. Yeah. So, again, we’re really pleased with the 36% growth in the publisher business that we put on the board for second quarter.

A couple of drivers of the Publisher business, it includes expanding our OEM partnerships, including driving adoption of new CTV products, including Vault, which helps the OEMs with their bidding functionality. We’ve also benefited in Publica. The team, again, has done a great job of putting new customers on the board. We cited a few of them previously internationally, both in EMEA and APAC. So, Publisher continues to be a tailwind for our business, both with Publica, which is a leading CTV platform, as well as IES Publisher, which we are seeing double digit growth in second quarter as we continue to drive greater enhancements for the traditional publishers with IES solutions.

Conference Operator: Great, thank you. Thank Our next question comes from the line of Youssef Squali with Truist Securities. Your line is open. Please go ahead.

Nick Kroner, Analyst, Truist Securities: Yeah. Hi. This is Nick Kroner on for Youssef. Thanks for taking the question. So on the 3Q guide, can you just unpack a little bit what’s baked in across optimization measurement and and publisher?

And then, stepping back to, like, trends in the international markets, can you can you just talk about what trends you’re seeing across these markets and where you’re seeing pockets of strength or weakness? Thanks.

Alpanna Wagner, CFO, IAS: Yep. Thanks, Nick, for the question. This is Altana. It’s great to speak with you today. And I’ll take the first one in terms of the guide on a business line basis, and then I’ll let Lisa weigh in on your question on the international market.

So from an overall second half perspective and what we’re seeing trending in the business, we’re happy coming off of a strong Q2 with the 16% growth in the top line. As we look across the various lines of business, we continue to expect measurement to be in the high single digits and similar to what we saw in Q2. We expect optimization to continue to see the trends that we’re seeing there more broadly in terms of the shift of spend, and we see that continue to grow in the mid teens, just below what we saw in Q2. And then from a publisher standpoint, we still anticipate, as Lisa just mentioned, strong double digit growth. We do have some anniversarying of some benefits year over year from last year, but we continue to see growth there in the double digits, more in line with what we’re seeing from a total company perspective.

Lisa Utzschneider, CEO, IAS: Sure. Thanks, Alpanna. And I’ll take the second question, Nick, in terms of international trends that we’re seeing. So, our international footprint, it continues to be a big differentiator at IES, growing 13% in the first half of the year. A couple of callouts in terms of trends that we’re seeing in international.

The first is social. When you take a look at social, as I mentioned before, TMQ, so TMQ adoption as these large Fortune 500 global brands continue to adopt our TMQ solution in international markets, emerging markets. We’re really pleased with that adoption we’re seeing across EMEA and APAC, as well as pre bid social optimization adoption, in particular in EMEA. Second trend, as I mentioned before, Publica. We love the fact that the team is putting international wins on the board, both in EMEA and APAC.

We have been investing in more boots on the ground with Publica and CTV. And then, the third trend I’ll call out, not necessarily a trend, but China. We announced China two quarters ago, and we have luxury and CPG brands that are running our China in solutions. You might remember that’s IS verification solutions that we’re offering to major global brands who want to extend the reach into China. We’re really pleased with the beta that we’re seeing in China, and we are starting to hire in China.

Nick Kroner, Analyst, Truist Securities: Very helpful. Thank you,

Lisa Utzschneider, CEO, IAS: Thanks, Nick.

Conference Operator: Thank you. And one moment for our next question. Our next question comes from the line of Jason Helfstein with Oppenheimer. Your line is open. Please go ahead.

James Henny, Analyst, Jefferies: Hey, thanks. Hi, everybody. Busy nights. I’ll do this one. So, Lisa, we’ve seen a bunch of volatility, like between the different segments between measurement and optimization, if you look at year over year growth on a quarterly basis.

It kind of feels like we shouldn’t be focusing on quarterly trends there, and instead looking at it on an annual basis on a trailing twelve month basis. But just can you just unpack that a bit? Because I just think there just continues to be surprised how like volatile those kind of components have been quarter to quarter. Thanks.

Lisa Utzschneider, CEO, IAS: Thanks, Jason, for the question. Happy to answer it. So, a couple of things to note. The first is we’re pleased with our 16% growth in Q2. We’re seeing strength across all of our businesses, including 16% in optimization.

Measurement, yes, it’s single digit at 8%, but it doubled quarter over quarter. We continue to see strength in social at 22% as well as CTV Publisher at 36%. Our Q2 performance, it’s actually driven by higher than expected spend in social from the large global advertisers who I had cited before, as well as we are really pleased with the adoption we’re seeing of our optimization products. Similar to last quarter, we continue to see a shift from the big brands as they are shifting away from Open Web Display into optimization as they’re leaning in solutions that are driving ROI, efficiency, transparency, and performance, as well as continue to spend in social. So, we actually, it’s playing out as expected, and we’re really pleased with our performance.

Alpanna Wagner, CFO, IAS: Thank you.

Conference Operator: And our last question is going to come from the line of Jacob Armstrong with Key. Your line is open. Please go ahead.

Jacob Armstrong, Analyst, Key: Thanks for taking my question. I guess, first, can you talk about the drivers of optimization average CPMs growing 10% year over year this quarter, while optimization volumes saw considerable deceleration? And maybe more broadly, can you kind of discuss how you’re viewing pricing as growth lever moving forward? Thank you.

Lisa Utzschneider, CEO, IAS: Yeah, I’m happy to take that too. So, again, we’re really pleased with our optimization performance in the quarter at 16% growth. With optimization products or pre bid products, we continue to drive and command a premium price for optimization, which we’re pleased with. Our optimization pricing, it increased 10% year over year in Q2, primarily related to the ongoing adoption of QSP. We’ve been really pleased with our QSP adoption, especially as we lit up the last two DSPs being Google DV360 and Amazon, and very pleased with the performance of QSP across those two DSPs, as well as all of the major DSPs.

Jacob Armstrong, Analyst, Key: Thank you. So I have time for one follow-up. On social this quarter, is there anything you can share on advertiser adoption of the meta optimization products and how that’s progressing? And maybe just more broadly on how you’re viewing the social optimization opportunity as a whole?

Lisa Utzschneider, CEO, IAS: Yeah, happy to take that one too. So, as I mentioned before, we have more than doubled the number of brands on Meta who are adopting Prebid Social from Q1 to Q2. And we also have seen over 50% of the adoption is coming from international, in particular EMEA. You might remember both Meta and TikTok, over 50% of our revenue comes internationally. So, we love the adoption rate we’re seeing and the strength internationally.

The other thing I should call out with Meta, we were also pleased in Q2 with the expansion of the content categories, which provides additional coverage on Meta for our brands, extending 46 content categories as well as in 34 languages. The other noteworthy thing I should call out about social is in addition to Meta and the other large social platforms I’ve mentioned, we’re also really pleased with the contribution that we’re seeing with some of the other really important social platforms, include Reddit, Pinterest, and Snap. So, we’re well diversified across the social platforms. And again, really pleased with the adoption rate that we’re seeing. And there’s definitely room for growth with the adoption, both of our pre and post bid measurement products on the social platforms.

Jacob Armstrong, Analyst, Key: Thank you.

Conference Operator: Thank you. And I would now like to hand the conference back over to Lisa Umchneider for any closing remarks.

Lisa Utzschneider, CEO, IAS: Thanks, everyone, for joining today’s call. We executed on our strategic plan and delivered another strong quarter of profitable growth. As a result, we raised our outlook for the full year. Our continued momentum reflects the hard work and dedication of the global IS team. I’d like to thank the team for their efforts along with the support of our customers and shareholders.

We look forward to speaking with you throughout the quarter. Have a good night.

Conference Operator: This concludes today’s conference call. Thank you for participating and you may now disconnect.

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