Ad verification company Integral Ad Science (NASDAQ: IAS) will be reporting earnings this Thursday after market hours. Here’s what to look for.
Integral Ad Science beat analysts’ revenue expectations by 3.2% last quarter, reporting revenues of $134.1 million, up 17.1% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA estimates but EBITDA guidance for next quarter missing analysts’ expectations significantly.
Is Integral Ad Science a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Integral Ad Science’s revenue to grow 11.4% year on year to $143.7 million, slowing from the 13.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.17 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Integral Ad Science has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2.1% on average.
Looking at Integral Ad Science’s peers in the sales and marketing software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Zeta delivered year-on-year revenue growth of 35.4%, beating analysts’ expectations by 3.9%, and DoubleVerify reported revenues up 21.3%, topping estimates by 4.5%.
Read our full analysis of Zeta’s results here and DoubleVerify’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the sales and marketing software stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.4% on average over the last month. Integral Ad Science is down 2.1% during the same time and is heading into earnings with an average analyst price target of $13.47 (compared to the current share price of $8.20).
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