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

And again, it’s very early days because we just rolled out, both with YouTube Shorts and Meta Reels. And then with TikTok, so with TikTok, it’s — in terms of baseball analogy, it’s probably more like second inning third inning from a product perspective. But the international rollout, we just launched it last quarter, right? And so we got ahead of our road map from 20 to 30 markets, line of sight to 40 markets by year-end running the Total Media Quality product in 90 languages. And the inventory is quite sizable on TikTok. So we’re just focused on scaling all of the products, all of the adoptions and again, doubling down on these large global tech platforms, because that’s where the users are and the marketers want to be where the users are.

Tania, do you want to take the second question?

Tania Secor: Sure. So Rob, as you probably saw we introduced a new metric and that really gets at your question around spend from large advertisers. And as we look out in the future, we really see growth from both incremental spend from our large advertisers, but also new logos. And so, if you even just look at where we are today at the end of the second quarter, when you do the math with 84% of our advertising revenue coming from large advertisers who spend more than $200,000 in the period with us and you measure that where we were last year at the end of the second quarter, our revenue growth is up 26% from those large advertisers. The other thing I’d want to highlight in both the first quarter and accelerating into the second quarter is the revenue we’ve ascertained from new logos, both on the optimization side and also on the measurement side.

And we’re seeing our new logos and accounts that we’re winning and Lisa talked about a lot of these on our last earnings call and the earnings call before, they’re spending with us faster and sooner than they had in the past. And we’re seeing the benefits of that across our revenue and we expect that to continue in the future.

Robert Zeller: Okay. Thank you.

Operator: One moment for our next question. And our next question comes from Mark Zgutowicz with The Benchmark Company.

Mark Zgutowicz: Thank you. Tania, maybe just to tail on that your last point, I do see the 26% growth in terms of large customer advertising revenue. When looking at revenue per large advertiser that grew at about — by my calculations here about 4% year-over-year and that compares to 16% in the March quarter. So, just trying to understand that dynamic a bit. And then I had a follow-up. Thanks.

Tania Secor: Sure, yes. No, we have seen an expansion of our revenue from large advertisers. For the second quarter, yes, when you do the math, I can verify the amount you calculated. I would say overall, we’re expanding the number of large advertisers. It was 173 last year at this quarter and it’s up to 208 which was also a 20% increase in the number of large advertisers. So we’re excited to see the higher spend and also the incremental number of large advertisers.

Mark Zgutowicz: Okay. And Lisa, just a follow-up to a prior question about all the partnerships that you’ve been signing and the revenue there, you’ve obviously been clearly busy from the last quarter or so. And maybe to frame that revenue in terms of ’24 given there’s certainly a lag to recognizing that revenue or some of these partnerships ramping. Is there some way you can quantify that in terms of ’24, just loosely sort of how incremental that revenue could be to your ’24 revenue? Thanks.