Integral Ad Science Holding Corp. (NASDAQ:IAS) Q2 2023 Earnings Call Transcript

Mark Kelley: I just wanted to ask you about retail media and I’ll lump Uber into this but you had the nice announcement with Criteo and first to market there. I just want to get a sense for how material you think retail media and I guess really all of the channels that you’re exposed to can be over time? Should we expect your mix of channels to kind of mirror the overall digital ad market, or do you think you play to different channels in a better fashion relative to the market? Thank you.

Lisa Utzschneider: Sure. So a few things on retail media. As we all know retail media advertising one of the fastest-growing channels of media and we continue to see high adoption from the marketers. We’ve mentioned in the past that IAS our coverage is across nine of the top 10 retail media networks and we continue to expand our measurement capabilities. We were really excited to announce both the partnerships with Uber where we’ll be offering viewability fraud and brand safety within the Uber app; and then also Criteo where we’re offering viewability and invalid traffic measurement across Criteo’s network of retail media partners. In terms of revenue, sizing similar to some of the other platforms and products I spoke to before this is a ramp right?

So we’re seeing nice growth. We are feeling good about our nine out of 10 integrations with the retail media networks. But I would say, it’s a steady growth for the back half of this year and into 2024. And the one other thing I will call out is in addition to being encouraged with the strong adoption of the retail media partners we are seeing very strong volume growth across the partners.

Mark Kelley: Okay. And just one follow-up on the retail media stuff. You’re doing both on-site and off-site is that correct? So like on the retailers’ website and then also using first-party data to find people off of the retailer’s website. I just want to make sure that I got that correct?

Lisa Utzschneider: That’s correct. It’s both O&O inventory and third-party inventory. Correct?

Mark Kelley: Okay. All right. Great, Thank you so much.

Lisa Utzschneider: Thanks, Mark.

Operator: And our next question comes from Justin Patterson with KeyBanc.

Justin Patterson: Great. Thanks. Good afternoon, and I wanted to ask a bit about AI. Obviously there was a big acqui-hire in the space this week. How do you think about just AI’s usage within your product suite today? Is that something you can really develop yourself through existing resources, or do you need to look towards some tuck-ins to kind of further augment your product suite today?

Lisa Utzschneider: Yes. Great question Justin. So AI and ML, it’s in the DNA of IAS. It fuels everything that we do from a tech and an innovation perspective. And a good example of how we leverage AI and ML is with our Total Media Quality products. So, I think you’re familiar with that product that we’re able to classify real-time in the live feed, for example of TikTok classify image, audio and text real-time to determine what type of live content is brand safe and what is not brand safe. But what’s really powerful is leveraging our AI technology with OpenAI. And the example I gave in the last quarterly earnings, our ability to unlock language translation from four languages to over 90 languages with Total Media Quality overnight.

That happened by leveraging OpenAI. So, you’ll hear a lot more about how we use AI with our innovation and our core technology. But I think equally if not more important is how we’re leveraging OpenAI to unleash and unlock our products at scale.

Justin Patterson: Thank you.