Ad verification company Integral Ad Science (NASDAQ:IAS) beat Wall Street’s revenue expectations in Q4 CY2024, with sales up 14% year on year to $153 million. Guidance for next quarter’s revenue was better than expected at $129.5 million at the midpoint, 1.9% above analysts’ estimates. Its GAAP profit of $0.09 per share was 20% below analysts’ consensus estimates.
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Revenue: $153 million vs analyst estimates of $149.1 million (14% year-on-year growth, 2.7% beat)
EPS (GAAP): $0.09 vs analyst expectations of $0.11 (20% miss)
Adjusted EBITDA: $61.35 million vs analyst estimates of $56.17 million (40.1% margin, 9.2% beat)
Management’s revenue guidance for the upcoming financial year 2025 is $594 million at the midpoint, beating analyst estimates by 0.6% and implying 12.1% growth (vs 11.6% in FY2024)
EBITDA guidance for the upcoming financial year 2025 is $206 million at the midpoint, below analyst estimates of $208.3 million
Operating Margin: 16.7%, up from 12.3% in the same quarter last year
Free Cash Flow Margin: 44.1%, up from 18.9% in the previous quarter
Market Capitalization: $1.57 billion
«We achieved 14% revenue growth in the fourth quarter with double-digit gains across our optimization, measurement, and publisher businesses,» said Lisa Utzschneider, CEO of IAS.
Founded in 2009, Integral Ad Science (NASDAQ:IAS) provides digital advertising verification and optimization solutions, ensuring that ads are viewable by real people in brand-safe environments across various platforms and devices.
The digital advertising market is large, growing, and becoming more diverse, both in terms of audiences and media. As a result, there is a growing need for software that enables advertisers to use data to automate and optimize ad placements.
Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last three years, Integral Ad Science grew its sales at a 17.9% annual rate. Although this growth is acceptable on an absolute basis, it fell slightly short of our standards for the software sector, which enjoys a number of secular tailwinds. Luckily, there are other things to like about Integral Ad Science.
This quarter, Integral Ad Science reported year-on-year revenue growth of 14%, and its $153 million of revenue exceeded Wall Street’s estimates by 2.7%. Company management is currently guiding for a 13.1% year-on-year increase in sales next quarter.
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