Ad verification company Integral Ad Science (NASDAQ: IAS) will be announcing earnings results tomorrow after the bell. Here’s what to look for.
Integral Ad Science beat analysts’ revenue expectations by 2.7% last quarter, reporting revenues of $153 million, up 14% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and EBITDA guidance for next quarter beating analysts’ expectations.
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 13.1% year on year to $129.6 million, improving from the 8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.14 per share.
Analysts covering the company have generally 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% on average.
Looking at Integral Ad Science’s peers in the advertising software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. AppLovin delivered year-on-year revenue growth of 40.3%, beating analysts’ expectations by 7.3%, and Zeta reported revenues up 35.6%, topping estimates by 4.1%. AppLovin traded up 11.9% following the results while Zeta’s stock price was unchanged.
Read our full analysis of AppLovin’s results here and Zeta’s results here.
There has been positive sentiment among investors in the advertising software segment, with share prices up 12.9% on average over the last month. Integral Ad Science is up 15.4% during the same time and is heading into earnings with an average analyst price target of $13.54 (compared to the current share price of $7.57).
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
