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IAS Reports Second Quarter 2024 Financial Results

Published

2 years ago

on

Total revenue increased 14% to $129.0 million

Net income of $7.7 million at a 6% margin; adjusted EBITDA increased to $46.2 million at a 36% margin 

Raises full year financial guidance on positive second quarter results and strong second half outlook

NEW YORK, Aug. 1, 2024 /PRNewswire/ — Integral Ad Science (Nasdaq: IAS), a leading global media measurement and optimization platform, today announced financial results for the second quarter ended June 30, 2024.

“We are excited to report double-digit revenue growth in all of our businesses in the second quarter reflecting strong customer adoption of our leading AI-backed products across formats and channels,” said Lisa Utzschneider, CEO of IAS. “Measurement revenue grew 17% with a 34% increase in social media revenue, optimization revenue increased 11%, and publisher revenue increased 12%. IAS is leading the way with trust, transparency, and innovation to provide actionable results and superior returns for global marketers. We are raising our full year outlook and remain focused on delivering sustainable, profitable growth.”

Second Quarter 2024 Financial Highlights

Total revenue was $129.0 million, a 14% increase compared to $113.7 million in the prior-year period.Optimization revenue was $58.5 million, an 11% increase compared to $52.8 million in the prior-year period.Measurement revenue was $52.7 million, a 17% increase compared to $44.9 million in the prior-year period.Publisher revenue was $17.8 million, a 12% increase compared to $15.9 million in the prior-year period.International revenue, excluding the Americas, was $40.1 million, a 16% increase compared to $34.7 million in the prior-year period, or 31% of total revenue for the second quarter of 2024.Gross profit was $101.9 million, a 13% increase compared to $89.8 million in the prior-year period. Gross profit margin was 79% for the second quarter of 2024.Net income was $7.7 million, or $0.05 per share, unchanged from the prior-year period. Net income margin was 6% for the second quarter of 2024. Net income for the second quarter of 2023 includes $23.5 million of stock-based compensation expense related to return-target options as well as an income tax benefit of $29.1 million in the period.Adjusted EBITDA* increased to $46.2 million, a 24% increase compared to $37.4 million in the prior-year period. Adjusted EBITDA* margin was 36% for the second quarter of 2024.Cash and cash equivalents were $70.6 million at June 30, 2024.

Recent Business Highlights

YouTube Brand Safety and Suitability Measurement Expansion – In June, IAS expanded its brand safety and suitability measurement product for YouTube to include reporting for Performance Max and Demand Gen campaigns on Google Ads.Reddit Partnership – In June, IAS announced a partnership with Reddit to provide advertisers with the confidence to scale their campaigns across Reddit through IAS’s AI-driven Total Media Quality (TMQ) product suite.Pinterest Partnership – In June, IAS announced a partnership with Pinterest to provide global advertisers with greater transparency into campaigns across Pinterest’s in-app feed through IAS’s AI-driven Total Media Quality (TMQ) brand safety product.Amazon Expanded Global Measurement – In May, IAS launched its expanded reporting and insights for Amazon DSP media buys. Through a server-to-server (S2S) integration on Amazon DSP, advertisers will now have access to measurement coverage for campaigns across Amazon custom audiences and Twitch inventory. IAS’s solutions available to advertisers in Amazon DSP include viewability, invalid traffic (IVT), and brand safety and suitability.Lunio Partnership – In June, IAS teamed up with Lunio in a first-to-market partnership to provide post-click measurement and protection across search, social, and display networks. The partnership builds on IAS’s existing ad fraud detection and mitigation capabilities, giving marketers the most comprehensive invalid traffic (IVT) protection in the industry.Sincera Partnership – In June, IAS and Sincera announced a multi-year, strategic partnership to enhance AI-driven measurement and optimization solutions to drive omnichannel media quality. The partnership provides IAS with unique metadata to enhance media quality and drive unique solutions across channels including the open web, CTV, in-app, and social.Deepfake Detection Availability – In June, IAS announced availability in Beta testing of the industry’s first deepfake measurement offering, enabling advertisers to avoid running adjacent to deepfake content as part of the Global Alliance for Responsible Media (GARM)-defined Brand Safety Floor and Suitability Framework misinformation category.Election Lab Launch – In May, IAS launched the IAS Election Lab which aims to provide strategic guidance and actionable insights for advertisers during the global election season.ISO 27001 Certification – In May, IAS achieved ISO 27001:2022 certification for its Information Security Management System. ISO/IEC 27001 is the global standard for information security management systems.

Financial Outlook

“Our second quarter results further validate our scalable and profitable business model. We are driving top-line growth and investing in strategic growth initiatives while maintaining a strong financial position with an adjusted EBITDA margin of 36%, healthy cash flows, and low debt,” said Tania Secor, CFO of IAS. “We are raising our 2024 outlook based on our second quarter performance and our expectations for increased revenue growth in the second half of the year.”

IAS is introducing the following financial outlook for the third quarter of 2024 and increasing its full year 2024 revenue and adjusted EBITDA outlook:

Third Quarter Ending September 30, 2024:

Total revenue of $137 million to $139 millionAdjusted EBITDA* of $48 million to $50 million

Year Ending December 31, 2024:

Total revenue of $538 million to $544 millionAdjusted EBITDA* of $180 million to $184 million

* See “Supplemental Disclosure Regarding Non-GAAP Financial Information” section herein for an explanation of these measures. IAS is unable to provide a reconciliation for forward-looking guidance of adjusted EBITDA and corresponding margin to net income (loss), the most closely comparable GAAP measures without unreasonable effort, because certain material reconciling items, such as depreciation and amortization, interest expense, income tax expense (benefit) and acquisition, restructuring and integration expenses, cannot be estimated due to factors outside of IAS’s control and could have a material impact on the reported results. However, IAS estimates stock-based compensation expense for the third quarter of 2024 in the range of $16 million to $17 million and for the full year 2024 in the range of $63 million to $65 million.

INTEGRAL AD SCIENCE HOLDING CORP.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

(IN THOUSANDS, EXCEPT SHARE DATA)

June 30, 2024

December 31, 2023

ASSETS

Current assets:

Cash and cash equivalents

$        70,603

$      124,759

Restricted cash

275

54

Accounts receivable, net

75,233

74,609

Unbilled receivables

45,320

46,548

Prepaid expenses and other current assets

38,251

18,959

Total current assets

229,682

264,929

Property and equipment, net

4,076

3,769

Internal use software, net

47,578

40,301

Intangible assets, net

159,825

178,908

Goodwill

674,350

675,282

Operating lease right-of-use assets

21,223

21,668

Deferred tax asset, net

2,438

2,465

Other long-term assets

4,950

4,402

Total assets

$   1,144,122

$   1,191,724

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable and accrued expenses

$        51,096

$        72,232

Operating lease liability

9,483

9,435

Due to related party

—

121

Deferred revenue

558

682

Total current liabilities

61,137

82,470

Deferred tax liability, net

16,884

20,367

Long-term debt

93,957

153,725

Operating lease liabilities, non-current

18,397

19,523

Other long-term liabilities

6,171

6,183

Total liabilities

196,546

282,268

Commitments and Contingencies (Note 13)

Stockholders’ Equity

Preferred Stock, $0.001 par value, 50,000,000 shares authorized at June 30, 2024; 0 shares
issued and outstanding at June 30, 2024 and December 31, 2023.

—

—

Common Stock, $0.001 par value, 500,000,000 shares authorized, 160,786,740 and
158,757,620 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively.

161

159

Additional paid-in-capital

934,194

901,259

Accumulated other comprehensive loss

(2,168)

(916)

Retained earnings

15,389

8,954

Total stockholders’ equity

947,576

909,456

Total liabilities and stockholders’ equity

$   1,144,122

$   1,191,724

 

INTEGRAL AD SCIENCE HOLDING CORP.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(UNAUDITED)

Three Months Ended June 30,

Six Months Ended June 30,

(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)

2024

2023

2024

2023

Revenue

$       129,005

$       113,651

$       243,535

$       219,743

Operating expenses:

Cost of revenue (excluding depreciation and amortization shown below)

27,094

23,819

53,255

45,501

Sales and marketing

29,572

31,702

61,397

57,962

Technology and development

17,487

21,110

35,465

36,639

General and administrative

24,679

42,339

46,059

63,062

Depreciation and amortization

15,709

13,521

30,789

26,346

Foreign exchange loss (gain), net

315

(631)

1,884

(1,147)

Total operating expenses

114,856

131,860

228,849

228,363

Operating income (loss)

14,149

(18,209)

14,686

(8,620)

Interest expense, net

(1,536)

(3,221)

(3,462)

(6,638)

Net income (loss) before income taxes

12,613

(21,430)

11,224

(15,258)

(Provision) benefit for income taxes

(4,923)

29,107

(4,789)

26,081

Net income

$           7,690

$           7,677

$           6,435

$         10,823

Net income per share – basic and diluted

$             0.05

$             0.05

$             0.04

$             0.07

Weighted average shares outstanding:

Basic

160,502,795

155,425,264

159,954,926

155,267,531

Diluted

163,748,596

162,634,310

164,198,233

160,850,434

Other comprehensive income:

Foreign currency translation adjustments

(193)

(221)

(1,252)

928

Total comprehensive income

$           7,497

$           7,456

$           5,183

$         11,751

 

Stock-Based Compensation 

(UNAUDITED)

Three Months Ended June 30,

Six Months Ended June 30,

(IN THOUSANDS)

2024

2023

2024

2023

Cost of revenue

$               82

$             126

$             206

$             210

Sales and marketing

3,435

8,258

9,173

12,145

Technology and development

4,799

7,362

9,198

10,532

General and administrative

6,688

24,689

12,165

28,854

Total stock-based compensation

$         15,004

$        40,4351

$         30,742

$         51,741

1

1

During the three and six months ended June 30, 2023, with the filing of a “shelf” registration statement on Form S-3, the market condition and the implied performance condition relating to the Return-Target Options were deemed to be probable and the Company recognized $23.5 million of stock-based compensation expense for such options in both the three and six months ended June 30, 2023. This is broken out as follows; $2.1 million of sales and marketing expense, $2.6 million of technology and development expense and $18.8 million of general and administrative expense.

 

INTEGRAL AD SCIENCE HOLDING CORP.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(UNAUDITED)

Three Months Ended June 30, 2024

Common Stock

(IN THOUSANDS, EXCEPT SHARES)

Shares

Amount

Additional

paid-in

capital

Accumulated
other
comprehensive
loss

Retained
earnings

Total

stockholders’

equity

Balance, March 31, 2024

159,761,454

$               160

$       919,192

$          (1,975)

$            7,699

$       925,076

RSUs and MSUs vested

1,025,286

1

—

—

—

1

Stock-based compensation

—

—

15,002

—

—

15,002

Foreign currency translation adjustment

—

—

—

(193)

—

(193)

Net income

—

—

—

—

7,690

7,690

Balance, June 30, 2024

160,786,740

$               161

$       934,194

$          (2,168)

$         15,389

$       947,576

Six Months Ended June 30, 2024

Common Stock

(IN THOUSANDS, EXCEPT SHARES)

Shares

Amount

Additional

paid-in

capital

Accumulated
other
comprehensive
loss

Retained
earnings

Total

stockholders’

equity

Balance, December 31, 2023

158,757,620

$               159

$       901,259

$             (916)

$            8,954

$       909,456

RSUs and MSUs vested

1,831,832

2

—

—

—

2

Option exercises

44,049

—

313

—

—

313

ESPP purchase

153,239

—

1,895

—

—

1,895

Stock-based compensation

—

—

30,727

—

—

30,727

Foreign currency translation adjustment

—

—

—

(1,252)

—

(1,252)

Net income

—

—

—

—

6,435

6,435

Balance, June 30, 2024

160,786,740

$               161

$       934,194

$          (2,168)

$         15,389

$       947,576

Three Months Ended June 30, 2023

Common Stock

(IN THOUSANDS, EXCEPT SHARES)

Shares

Amount

Additional

paid-in

capital

Accumulated
other
comprehensive
loss

Retained
earnings

Total

stockholders’

equity

Balance, March 31, 2023

154,811,980

$               154

$       824,498

$          (1,750)

$            4,862

$       827,764

RSUs and MSUs vested

1,218,542

2

—

—

—

2

Option exercises

248,553

—

2,878

—

—

2,878

Stock-based compensation

—

—

40,114

—

—

40,114

Foreign currency translation adjustment

—

—

—

(221)

—

(221)

Net income

—

—

—

—

7,677

7,677

Balance, June 30, 2023

156,279,075

$               156

$       867,490

$          (1,971)

$         12,539

$       878,214

Six Months Ended June 30, 2023

Common Stock

(IN THOUSANDS, EXCEPT SHARES)

Shares

Amount

Additional

paid-in

capital

Accumulated
other
comprehensive
loss

Retained
earnings

Total

stockholders’

equity

Balance, December 31, 2022

153,990,128

$               154

$       810,186

$          (2,899)

$               775

$       808,216

RSUs and MSUs vested

1,590,282

2

—

—

—

2

Option exercises

587,502

—

4,993

—

—

4,993

ESPP purchase

111,163

—

882

—

—

882

Stock-based compensation

—

—

51,429

—

—

51,429

Foreign currency translation adjustment

—

—

—

928

—

928

Adoption of ASC 326, net of tax

—

—

—

—

941

941

Net income

—

—

—

—

10,823

10,823

Balance, June 30, 2023

156,279,075

$               156

$       867,490

$          (1,971)

$         12,539

$       878,214

 

 

INTEGRAL AD SCIENCE HOLDING CORP.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)  

Six Months Ended June 30,

(IN THOUSANDS)

2024

2023

Cash flows from operating activities:

Net income

$              6,435

$            10,823

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

30,789

26,346

Stock-based compensation

30,742

51,741

Foreign currency loss (gain), net

1,564

(1,239)

Deferred tax benefit

(3,456)

(37,535)

Amortization of debt issuance costs

232

232

Allowance for credit losses

745

1,254

Changes in operating assets and liabilities:

Increase in accounts receivable

(2,070)

(4,483)

Decrease in unbilled receivables

998

2,272

(Increase) decrease in prepaid expenses and other current assets

(19,548)

12,619

(Increase) decrease in operating leases, net

(618)

25

(Increase) decrease in other long-term assets

(557)

4

Decrease in accounts payable and accrued expenses and other long-term liabilities

(20,221)

(10,225)

(Decrease) increase in deferred revenue

(111)

350

Decrease in due to/from related party

(122)

(118)

Net cash provided by operating activities

24,802

52,066

Cash flows from investing activities:

Purchase of property and equipment

(1,323)

(1,810)

Development of internal use software and other

(18,836)

(14,928)

Net cash used in investing activities

(20,159)

(16,738)

Cash flows from financing activities:

Proceeds from the Revolver

—

75,000

Repayment of long-term debt

(60,000)

(105,000)

Proceeds from exercise of stock options

313

4,993

Cash received from Employee Stock Purchase Program

2,213

1,409

Net cash used in financing activities

(57,474)

(23,598)

Net (decrease) increase in cash, cash equivalents, and restricted cash

(52,831)

11,730

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(1,084)

(142)

Cash, cash equivalents and restricted cash at beginning of period

127,290

89,671

Cash, cash equivalents, and restricted cash, at end of period

$            73,375

$          101,259

Supplemental Disclosures:

Net cash paid during the period for:

Interest

$              3,614

$              5,862

Taxes

$            19,925

$              5,609

Non-cash investing and financing activities:

Property and equipment acquired included in accounts payable

$                 108

$                 140

Internal use software acquired included in accounts payable

$                 661

$              1,159

Lease liabilities arising from right of use assets

$              5,278

$              3,902

 

Supplemental Disclosure Regarding Non-GAAP Financial Information

We use supplemental measures of our performance, which are derived from our consolidated financial information, but which are not presented in our consolidated financial statements prepared in accordance with GAAP. Adjusted EBITDA is the primary financial performance measure used by management to evaluate our business and monitor ongoing results of operations. Adjusted EBITDA is defined as income before depreciation and amortization, stock-based compensation, interest expense, income taxes, acquisition, restructuring and integration costs, foreign exchange gain, net, asset impairments, and other one-time, non-recurring costs. Adjusted EBITDA margin represents the adjusted EBITDA for the applicable period divided by the revenue for that period presented in accordance with GAAP.

We use non-GAAP financial measures to supplement financial information presented on a GAAP basis. We believe that excluding certain items from our GAAP results allows management to better understand our consolidated financial performance from period to period and better project our future consolidated financial performance as forecasts are developed at a level of detail different from that used to prepare GAAP-based financial measures. Moreover, we believe these non-GAAP financial measures provide our shareholders with useful information to help them evaluate our operating results by facilitating an enhanced understanding of our operating performance and enabling them to make more meaningful period-to-period comparisons. Although we believe these measures are useful to investors and analysts for the same reasons they are useful to management, as discussed below, these measures are not a substitute for, or superior to, U.S. GAAP financial measures or disclosures. Our non-GAAP financial measures may not be comparable to similarly titled measures of other companies. Other companies, including companies in our industry, may calculate non-GAAP financial measures differently than we do, limiting the usefulness of those measures for comparative purposes.

Reconciliations of historical adjusted EBITDA to its most directly comparable GAAP financial measure, net income/loss, are presented below. We encourage you to review the reconciliations in conjunction with the presentation of the non-GAAP financial measures for each of the periods presented. In future fiscal periods, we may exclude such items and may incur income and expenses similar to these excluded items.

Reconciliation of Adjusted EBITDA

Three Months Ended June 30,

Six Months Ended June 30,

(IN THOUSANDS, EXCEPT PERCENTAGES)

2024

2023

2024

2023

Net income

$         7,690

$         7,677

$         6,435

$      10,823

Depreciation and amortization

15,709

13,521

30,789

26,346

Stock-based compensation

15,004

40,435

30,742

51,741

Interest expense, net

1,536

3,221

3,462

6,638

Provision (benefit) for income taxes

4,923

(29,107)

4,789

(26,081)

Acquisition, restructuring and integration costs

1,048

809

1,174

1,621

Foreign exchange loss (gain), net

315

(631)

1,884

(1,147)

Asset impairments and other costs

—

1,469

—

1,506

Adjusted EBITDA

$       46,225

$       37,394

$       79,275

$      71,447

Revenue

$     129,005

$     113,651

$     243,535

$    219,743

Net income margin

6 %

7 %

3 %

5 %

Adjusted EBITDA margin

36 %

33 %

33 %

33 %

 

Conference Call and Webcast Information
IAS will host a conference call and live webcast to discuss its second quarter 2024 financial results today at 5:00 p.m. ET. To access the live webcast and conference call dial-in, please register under the “News & Events” section of IAS’s investor relations website. A replay will be available on IAS’s investor relations website following the live call: https://investors.integralads.com. 

About Integral Ad Science
Integral Ad Science (IAS) is a leading global media measurement and optimization platform that delivers the industry’s most actionable data to drive superior results for the world’s largest advertisers, publishers, and media platforms. IAS’s software provides comprehensive and enriched data that ensures ads are seen by real people in safe and suitable environments, while improving return on ad spend for advertisers and yield for publishers. Our mission is to be the global benchmark for trust and transparency in digital media quality. For more information, visit integralads.com.

Forward-Looking Statements
This earnings press release contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact included in this press release are forward-looking statements. Forward-looking statements give our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance, including guidance, and business, including pipeline and industry trends. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,” “may,” “will,” “should,” “can have,” “likely,” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. For example, all statements we make relating to our estimated and projected costs, expenditures, cash flows, growth rates and financial results or our plans and objectives for future operations, growth initiatives or strategies, including pursuing business from Oracle or other competitors are forward-looking statements. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that we expected, including: (i) the adverse effect on our business, operating results, financial condition, and prospects from various macroeconomic factors, including instability in geopolitical or market conditions; (ii) our failure to innovate or make the right investment decisions; (iii) our ability to provide digital or cross-platform analytics; (iv) our failure to maintain or achieve industry accreditation standards; (v) our dependence on integrations with advertising platforms, demand side providers (“DSPs”) and proprietary platforms that we do not control; (vi) our ability to compete successfully with our current or future competitors in an intensely competitive market, including with respect to the Oracle opportunity; (vii) our inability to use software licensed from third parties; (viii) our international expansion; (ix) our ability to expand into new channels; (x) our ability to sustain our profitability and revenue growth rate; (xi) risks that our customers do not pay or choose to dispute their invoices; (xii) risks of material changes to revenue share agreements with certain DSPs; (xiii) our dependence on the overall demand for advertising; (xiv) our ability to effectively manage our growth; (xv) the impact that any acquisitions we have completed in the past and may consummate in the future, strategic investments, or alliances may have on our business, financial condition, and results of operations; (xvi) our ability to successfully execute our international plans; (xvii) the risks associated with the seasonality of our market; (xviii) our ability to maintain high impression volumes; (xix) the difficulty in evaluating our future prospects given our short operating history; (xx) uncertainty in how the market for buying digital advertising verification solutions will evolve; (xxi) interruption by man-made problems such as terrorism, computer viruses, or social disruptions; (xxii) the risk of failures in the systems and infrastructure supporting our solutions and operations; (xxiii) our ability to avoid operational, technical, and performance issues with our platform; (xxiv) risks associated with any unauthorized access to user, customer, or inventory and third-party provider data; (xxv) our ability to provide the non-proprietary technology, software, products, and services that we use; (xxvi) the risk that we are sued by third parties for alleged infringement, misappropriation, or other violation of their proprietary rights; (xxvii) our ability to obtain, maintain, protect, or enforce intellectual property and proprietary rights that are important to our business; (xxviii) our involvement in lawsuits to protect or enforce our intellectual property; (xxix) risks that our employees, consultants, or advisors have wrongfully used or disclosed alleged trade secrets of their current or former employers; (xxx) risks that our trademarks and trade names are not adequately protected; (xxxi) the impact of unforeseen changes to privacy and data protection laws and regulation on digital advertising; (xxxii) our ability to maintain our corporate culture; (xxxiii) public health outbreaks, epidemics, pandemics, or other public health crises; (xxxiv) risks posed by earthquakes, fires, floods, and other natural catastrophic events; (xxxv) the risk that a perceived failure to comply with laws and industry self-regulation may damage our reputation; and (xxxvi) other factors disclosed in our filings with the SEC. Given these factors, as well as other variables that may affect our operating results, you should not rely on forward-looking statements, assume that past financial performance will be a reliable indicator of future performance, or use historical trends to anticipate results or trends in future periods.

We derive many of our forward-looking statements from our operating budgets and forecasts, which are based on many detailed assumptions. While we believe that our assumptions are reasonable, we caution that it is very difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could affect our actual results. The forward-looking statements included in this press release are made only as of the date hereof. We undertake no obligation to update or revise any forward- looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

Investor Contact:
Jonathan Schaffer
ir@integralads.com 

Media Contact:
press@integralads.com 

 

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SOURCE Integral Ad Science, Inc.

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Reusable insurance capabilities help Fortegra build tailored applications for MGA partners with greater flexibility and control

SINGAPORE and NEW YORK, Nov. 11, 2026 /PRNewswire/ — insureMO, a global insurance middle office platform provider, announces that Fortegra, a global specialty insurer headquartered in Florida, is leveraging insureMO’s Atomic APIs and Agentic Engineering to develop insurance applications. By combining internal engineering expertise with reusable insurance capabilities, Fortegra can respond faster to the needs of its managing general agent (MGA) partners.

The approach connects Fortegra’s investment in AI-enabled engineering teams with insureMO’s headless insurance technology platform. This allows Fortegra to build differentiated submissions, underwriting and customer experiences on a shared foundation of insurance services.

Working across diverse programs and distribution partners, Fortegra needs technology that accommodates different products, workflows and partner capabilities. Its modernization strategy progressively moves programs from legacy platforms to a composable architecture, using insureMO for underlying insurance transactions while retaining control over application development.

“Building engineering teams that work natively with AI agents is a core capability we have chosen to develop at Fortegra,” said Joe Lettween, Chief Innovation, Data Science, and Technology Officer at Fortegra. “With insureMO providing the underlying insurance capabilities, we can focus on the submissions, underwriting and customer experiences that matter to our MGA partners, while retaining control over how we build and manage them.”

Fortegra has built submissions and underwriting workflows for MGA partners that need additional technology capabilities. AI-assisted engineering supports application development, while workflow steps such as document processing can also incorporate AI.

Turning AI capabilities into enterprise value

AI development in insurance requires domain knowledge, connected context, transparent execution and reusable business capabilities. Without these foundations, teams face fragmented information and the need to rebuild insurance logic for each use case.

Organized around API, Data and AI, insureMO provides more than 2,500 Atomic APIs across the insurance lifecycle. These expose discrete insurance functions that developers and AI coding tools can combine into applications and workflows. Standard interfaces, clear data structures and defined functions help AI coding agents understand and use these capabilities. Agentic Engineering brings them together with insurance context, development tools, orchestration and human oversight to support repeatable, governed delivery.

“Enterprise value from AI depends on the infrastructure available to the teams building with it,” said Rajat Sharma, Chief Revenue Officer at insureMO. “AI-ready Atomic APIs give developers and coding agents clearly defined insurance functions they can understand and use. Fortegra’s approach demonstrates how this foundation supports tailored application development with enterprise governance and integration.”

Connecting development, governance and data

Fortegra’s approach also emphasizes controlled change and downstream data integration. Using insureMO supports a development pipeline its technology teams can observe and manage, with greater control over platform changes.

The platform operates alongside Fortegra’s other systems and connects with its data engineering and warehouse environment, supporting transaction data flows into reporting, financial and operational processes.

Together, reusable insurance APIs, internal engineering expertise and governed delivery provide a foundation for extending AI-assisted application development across Fortegra’s partner ecosystem.

About Fortegra

Fortegra is a global specialty insurer headquartered in Jacksonville, Florida, with more than 45 years of experience delivering insurance and risk management solutions. Working with MGAs, brokers and distribution partners, Fortegra combines underwriting expertise, technology and data-driven insights to serve niche markets. Its offerings include specialty property and casualty insurance, warranty and service contracts, and credit protection solutions. For more information, visit www.fortegra.com.

About insureMO

insureMO is the global insurance Middle Office platform based in Singapore. The platform is organized across three pillars: API, Data, and AI, with 2,500+ atomic APIs spanning the full insurance lifecycle from quotation to claims. The architecture is open by design: the same APIs that connect 8,700+ distribution channels and technology partners are equally discoverable by AI agents and coding assistants. This is what makes insureMO both ecosystem-friendly and AI-friendly; any AI tool that is capable to call an API can build on insureMO. Over 500 insurers, distributors, and ecosystem partners across 50+ countries run on insureMO, processing more than US$25 billion in Gross Written Premium across 17,500+ configured products spanning Life and Health, Personal Lines, Commercial and Specialty, and Reinsurance. Visit www.insuremo.com.

Contact:
Fiona Zhang
marketing@insuremo.com 

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SOURCE insureMO

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Technology

SAP and VFC Open Intelligent Fashion Store

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November 11, 2026

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Industry AI connects the shopper journey with end-to-end retail operations, enhancing the consumer experience

WALLDORF, Germany, Nov. 11, 2026 /PRNewswire/ — SAP SE (NYSE: SAP) and VF Corporation (NYSE: VFC) today opened S.Fashion, a retail innovation space at the SAP headquarters in Walldorf designed to explore how AI-enabled, end-to-end processes can enhance the consumer experience while making store operations more effective.

This store puts the SAP vision for the Autonomous Enterprise into a working fashion retail environment, with selected products from the world-renowned VF Corporation brand portfolio, including The North Face, Vans and Timberland.  In this environment, Industry AI draws on business data and retail process expertise to support decisions and actions across inventory, order management, pricing, fulfillment and replenishment. The store combines these capabilities with SAP applications, automation and connected hardware.

The announcement was made at the opening of S.Fashion in Walldorf, attended by Christian Klein, CEO of SAP, and Sujay Kumar, Vice President, Global ERP Technology at VF Corporation.

“The Autonomous Enterprise becomes real when AI can understand business context and act across connected processes,” said Christian Klein, CEO of SAP. “Together with VF Corporation, we are bringing this vision to life in one of retail’s most dynamic environments. S.Fashion shows how applications, data and Industry AI can work together across the entire operation, turning insights into action while keeping people in control. When technology absorbs complexity, store teams have more time to engage with consumers and create the experiences that build lasting relationships.”

Industry AI Across Retail Operations
Fashion retail requires precise coordination across brand, style, size, color, availability, price and fulfillment. In S.Fashion, item-level RFID data, robotics and SAP applications support a connected flow across inventory, orders, pricing, promotions and replenishment. AI agents are designed to help interpret events and coordinate next steps across processes, while people retain oversight of operating rules and exceptions. By simplifying and connecting these processes, the store will explore how technology can reduce operational complexity for teams and give them greater capacity to focus on consumers.

A customer can discover products, explore personalization and virtual try-on options, and create an order. The process can then initiate item retrieval, customization, packing, payment and collection. The transaction updates inventory and can trigger a next step, such as replenishment, without relying on manual handoffs between separate systems.

The experience links the physical store with a digital journey in a mobile app. Joule, part of SAP Business AI Platform, guides consumers from store entry and product discovery to in-store navigation and checkout. At the personalization station, consumers can turn a sketch and prompt into AI-generated artwork ready for embroidery. Once ordered, the personalized garment is embroidered, packed and placed in a personal locker for pickup. A holographic virtual try-on lets consumers check fit, color and overall look without changing clothes. In the fitting room, item recognition and a smart mirror recommend sizes, matching products and styling ideas. Consumers can also request another size without leaving the room. If consumers opt in, their preferences and past interactions shape curated looks and increasingly relevant recommendations.

For SAP and VFC, the store serves as a live test environment for how AI, intelligent automation and physical retail work together. During selected hours, the store operates autonomously, with no staff on site. 

“S.Fashion gives us a unique opportunity to turn retail innovation into real-world learning,” said Sujay Kumar, Vice President, Global ERP Technology at VF Corporation. “By testing new experiences in a live environment, we can better understand what resonates with consumers and what helps our teams deliver an even better experience every day. For us, technology is most valuable when it enables our people to spend more time engaging with consumers and creating meaningful in-store experiences. The insights we gain will help us learn faster, focus on what works, and scale the solutions that can make the biggest difference across our brands.”

An Intelligent Store Built Around Experience
S.Fashion is designed to explore how intelligent technology can support different retail experiences while using the same connected data and business processes across the store. The focus is on understanding how technology can complement the role of store teams, make operations more effective and create more engaging and interactive experiences for consumers.

During selected hours, the store operates autonomously, with no staff on site, enabling SAP and VFC to explore different retail models using the same underlying technology and processes. S.Fashion will be open to SAP employees and their friends and families, and it will also host arranged visits for customers and partners. This gives VFC and SAP a working retail environment in which to test operating processes under live conditions and demonstrate how they work together.

A Living Proof Point for the Autonomous Enterprise
The Walldorf opening puts the SAP strategy for the Autonomous Enterprise into practice in a live retail environment. This will help SAP and VFC assess how processes can recognize change, coordinate action across functions and support new commercial models.

Visit the SAP News Center. Get SAP news via LinkedIn and Bluesky.

About SAP
As a global leader in enterprise applications and business AI, SAP (NYSE:SAP) stands at the nexus of business and technology. For over 50 years, organizations have trusted SAP to bring out their best by uniting business-critical operations spanning finance, procurement, HR, supply chain, and customer experience. For more information, visit https://www.sap.com/.

About VF Corporation
VF Corporation (NYSE: VFC) is a portfolio of leading outdoor and active brands, including The North Face®, Vans®, and Timberland®. VFC is committed to providing consumers with innovative products that are rooted in performance and elevated design, while delivering sustainable and long-term value for its employees, communities, and shareholders. For more information, please visit vfc.com..

This press release was created with the assistance of artificial intelligence and has been reviewed by the editorial team.

This document contains forward-looking statements, which are predictions, projections, or other statements about future events. These statements are based on current expectations, forecasts, and assumptions that are subject to risks and uncertainties that could cause actual results and outcomes to materially differ. Additional information regarding these risks and uncertainties may be found in our filings with the Securities and Exchange Commission, including but not limited to the risk factors section of SAP’s 2025 Annual Report on Form 20-F.

© 2026 SAP SE. All rights reserved.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE in Germany and other countries. Please see https://www.sap.com/copyright for additional trademark information and notices.

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SOURCE SAP SE

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Technology

InComm Payments and SKUx Deepen Partnership to Bring Verified Commerce to Item-Level Offers

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3 minutes ago

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November 11, 2026

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The completed integration combines InComm Payments’ retail distribution and payments capabilities with SKUx’s Verified Commerce™ platform, giving brands and partners a way to fund offers for specific products and verify redemption at checkout.

ATLANTA and ST. PETERSBURG, Fla., Nov. 11, 2026 /PRNewswire/ — InComm Payments and SKUx (“SKUx”) today announced an expansion of their strategic partnership to bring verified, item-level offers to brands, retailers and distribution partners. The collaboration pairs InComm Payments’ retail network and payments infrastructure with SKUx’s Verified Commerce platform, enabling partners to deliver digital offers that apply to eligible products and confirm which items were purchased when those offers are redeemed.

The expanded partnership builds on the companies’ shared work in purpose-driven payments, where funds can be directed to eligible purchases. That same capability now anchors a broader commercial opportunity. A brand can fund an offer for a specific product, a retail or media partner can deliver it to shoppers, with verification that the eligible item was purchased at a participating retailer. Shoppers get an offer they can use at checkout, while brands and partners gain a direct link between the offer and the product sale.

“Now more than ever, it is critical to give brands and our partners more precision in how they deliver value at retail, ” said Mary Llewellyn, SVP of Retailer Marketing and Promotional Payments at InComm Payments. “By combining our retail distribution and payments capabilities with SKUx’s unique platform technology, we can help partners bring product-specific offers to shoppers and see where those offers turn into purchases.”

SKUx is building Verified Commerce as a category that connects offer delivery, payment and purchase verification in a single transaction. For consumer packaged goods brands, that means being able to fund trial launches for a new product, promote a specific size or variety, and see which eligible items shoppers bought. For retailers, retail media networks and other distribution partners, it creates a way to offer brand-funded campaigns with redemption reporting tied to the product sold.

“The item is where the brand’s investment and the shopper’s decision meet,” said Bobby Tinsley, CEO and Co-founder of SKUx. “That’s the idea behind Verified Commerce. A brand should be able to put an offer behind a specific product, make it easy for a shopper to use, and verify that the product was purchased. Our expanded partnership with InComm Payments helps us bring that model to more brands, retailers and partners.”

Today, SKUx will deliver a keynote alongside Gary Hawkins, Founder & CEO of Retail Mindsteps, at the Path to Purchase Institute’s In-Store Ignite conference in Chicago. The session is titled, “The Promotional Abyss: Solving for Value Delivery Across a Fragmented Retail Media Ecosystem.”

About InComm Payments
InComm Payments is an innovative global payments technology provider. Leveraging dynamic technology and proven expertise, InComm Payments delivers enhanced end-to-end payment platforms and emerging financial technology solutions through a single integration, helping businesses grow across a wide range of industries including retail, healthcare, tolling & transit, incentives, mobile payments, digital currencies and financial services. By enabling omnichannel connections and alternative payment options to an ever-expanding consumer base in an increasingly digital ecosystem, InComm Payments creates seamless and valuable commerce experiences across the globe. With three decades of experience, over 525,000 points of retail and online distribution, 412 global patents and a presence in more than 40 countries, InComm Payments leads the payments industry from its headquarters in Atlanta, Ga. Learn more at www.InCommPayments.com. 

About SKUx
SKUx provides a purpose-driven network that combines easy mobile wallet delivery with granular transaction controls. Their platform allows brands to bypass legacy coupon systems and replace them with secure, digital payments that can be restricted by merchant category, location and all the way down to the SKU-level. This item-level precision helps eliminate fraud and waste while providing brands with 360-degree visibility into how funds are used in real-time. For more information, visit skux.io.

Media Contacts
Anthony Popiel
Communications Manager
InComm Payments
apopiel@incomm.com

Brandon Davis
Communications Manager
InComm Payments
bdavis@incomm.com

Reva Henderson
SKUx Media Contact
Will Marlow Agency
+1 727-580-1910
reva@willmarlow.com

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SOURCE InComm Payments

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