ironSource Ltd.

Q1 2022 total revenue was $190 million, up 58% year over year from $120 million in Q1 2021. Adjusted EBITDA was $59 million, up 49% year over year from $40 million, and adjusted EBITDA margin was 31%. Non-GAAP diluted EPS was $0.05. Revenue mix was 90% Sonic and 10% Aura. For Q2 2022, management guided to revenue of $180 million to $185 million and adjusted EBITDA of $52 million to $54 million. For full-year 2022, guidance was reduced to revenue of $750 million to $780 million from $790 million to $820 million previously, and adjusted EBITDA of $230 million to $240 million from $255 million to $265 million previously.

Tomer Bar-Zeev said the company had a strong start to the year despite a challenging macro backdrop, emphasizing profitable growth, market share gains, and a differentiated platform for app developers and telcos. He highlighted the completion of Tapjoy and Bidalgo integration, the launch of new products like Luna, Luna Search Ads, and marketability testing, and said Aura’s device-level footprint continues to expand through new carriers and OEMs. His tone was confident but cautious: he repeatedly stressed prudence around guidance and the need to balance growth with profitability.

Assaf Ben Ami framed Q1 as a record quarter on both the top and bottom line, citing $190 million of revenue, $59 million of adjusted EBITDA, 31% EBITDA margin, and $0.05 non-GAAP EPS. He noted cash and cash equivalents of $441 million at quarter end, with the decline from the prior quarter tied to the Tapjoy acquisition closing in early Q1. On guidance, he pointed to near-term headwinds from mobile gaming customers, seasonality, and macro uncertainty, and said the company is slightly reducing full-year revenue and EBITDA targets while continuing to invest and maintain positive free cash flow.

Analysts focused on whether the lower guidance reflected actual weakness in the core business or a precautionary response to broader industry conditions. Management said it does not see a slowdown in platform KPIs and continues to gain share, but is being prudent because some gaming customers have signaled slower growth and may invest less in user acquisition. Questions also centered on Aura penetration, M&A integration, Apple Search Ads adoption, and the impact of media ecosystem changes; management said Aura’s device footprint and touch points are still growing, Bidalgo integration is essentially complete, Tapjoy integration is far along, and Luna Search Ads is seeing strong adoption.