Comscore Reports First Quarter 2024 Results
Comscore, Inc. reported Q1 2024 financial results with revenue of $86.8 million, down 5.2% from Q1 2023. Despite a net loss of $1.1 million, adjusted EBITDA improved to $8.1 million. The company remains confident in its transformation and cross-platform capabilities, achieving MRC accreditation for Comscore TV and JIC certification.
Adjusted EBITDA improved to $8.1 million in Q1 2024 from $5.2 million in Q1 2023.
Major milestones achieved with MRC accreditation for Comscore TV and JIC certification.
Continued progress in key initiatives critical to the company's transformation.
Revenue in Q1 2024 decreased by 5.2% compared to Q1 2023.
Net loss of $1.1 million reported for Q1 2024.
National TV revenue impacted by linear ad spend pressure affecting major networks.
Insights
RESTON, Va., May 07, 2024 (GLOBE NEWSWIRE) -- Comscore, Inc. (Nasdaq: SCOR), a trusted partner for planning, transacting and evaluating media across platforms, today reported financial results for the quarter ended March 31, 2024.
Q1 2024 Financial Highlights
- Revenue for the first quarter was
$86.8 million compared to$91.6 million in Q1 2023 - Net loss of
$1.1 million compared to$8.7 million in Q1 2023 - Adjusted EBITDA of
$8.1 million compared to$5.2 million in Q1 2023 - Maintaining full-year guidance
"While revenue came in slightly below our expectations, our teams continued to make encouraging progress against a number of key initiatives that are critical to our transformation," said Jon Carpenter, CEO of Comscore. "Our adjusted EBITDA performance, and key product and client progress that we've continued to make with our cross-platform offerings, are evidence we're moving in the right direction. The quarter also saw major milestones like MRC accreditation for Comscore TV and JIC certification as a cross-platform currency - both are major validations of the progress that we continue to make. I remain confident in the direction we're taking the business, and we will continue to leverage Comscore's cross-platform capabilities to deliver value to our stakeholders."
First Quarter Summary Results
Revenue in the first quarter was
Our core operating expenses, which include cost of revenues, sales and marketing, research and development and general and administrative expenses, were
Net loss was
Non-GAAP adjusted EBITDA for the quarter was
Change in Revenue Solution Groups
In the first quarter of 2024, management decided to evaluate revenue results using solution groups that better represent the company's evolving business and customer needs, which are largely centered around measurement and insights. Beginning with Q1 2024, we are presenting revenue in the following two solution groups:
- Content & Ad Measurement represents the measurement portion of our business – measuring audiences across content and advertisements for linear TV, CTV, desktops, laptops, tablets and mobile devices. Product offerings reported in this solution group include our legacy subscription-based syndicated offerings that measure audiences for linear TV (national and local), digital and streaming, as well as theatrical box office receipts. Also included in this solution group are our transaction-based cross-platform products, Proximic and CCR. These syndicated and cross-platform products are used as currency to plan and execute ad campaigns, measure the outcome of ad campaigns, optimize ad campaigns that are in-flight, activate programmatic campaigns, and make content easier for programmatic advertisers to reach.
- Research & Insight Solutions represents the custom solutions we provide that are tailored to our clients' specific needs. These offerings include custom TV, digital and cross-platform data feeds, as well as other data integrations. They also include our survey business, our Consumer Brand Health (CBH) business, and other bespoke research, data and insight deliverables that help our clients better understand their business, competitive landscape, clients and market.
Using the new solution groups to evaluate revenue in the first quarter, Content & Ad Measurement revenue declined
If we had evaluated revenue based on the new solution groups in 2023, full-year revenue from Content & Ad Measurement and Research & Insight Solutions would have been approximately
Balance Sheet and Liquidity
As of March 31, 2024, cash, cash equivalents and restricted cash totaled
2024 Outlook
Based on current trends and expectations, we are maintaining our guidance for full-year 2024 revenue and adjusted EBITDA, expecting to have revenue between
We do not provide GAAP net income (loss) or net income (loss) margin on a forward-looking basis because we are unable to predict with reasonable certainty our future stock-based compensation expense, fair value adjustments, variable interest expense, litigation and restructuring expense and any unusual gains or losses without unreasonable effort. These items are uncertain, depend on various factors, and could be material to results computed in accordance with GAAP. For this reason, we are unable without unreasonable effort to provide a reconciliation of adjusted EBITDA or adjusted EBITDA margin to the most directly comparable GAAP measure, GAAP net income (loss) and net income (loss) margin, on a forward-looking basis.
Conference Call Information for Today, Tuesday, May 7, 2024 at 5:00 p.m. ET
Management will host a conference call to discuss the results on Tuesday, May 7, 2024 at 5:00 p.m. ET. The live audio webcast along with supplemental information will be accessible at ir.comscore.com/events-presentations. Participants can obtain dial-in information by registering for the call at the same web address and are advised to register in advance of the call to avoid delays. Following the conference call, a replay will be available via webcast at ir.comscore.com/events-presentations.
About Comscore
Comscore is a global, trusted partner for planning, transacting and evaluating media across platforms. With a data footprint that combines digital, linear TV, over-the-top and theatrical viewership intelligence with advanced audience insights, Comscore empowers media buyers and sellers to quantify their multiscreen behavior and make meaningful business decisions with confidence. A proven leader in measuring digital and TV audiences and advertising at scale, Comscore is the industry's emerging, third-party source for reliable and comprehensive cross-platform measurement.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of federal and state securities laws, including, without limitation, our expectations, forecasts, plans and opinions regarding expected revenue growth and adjusted EBITDA margin for 2024, growth drivers, economic and industry trends, value delivery to clients and shareholders, product infrastructure and innovation, and transformation plans. These statements involve risks and uncertainties that could cause actual events to differ materially from expectations, including, but not limited to, changes in our business and customer, partner and vendor relationships; external market conditions and competition; changes or declines in ad spending or other macroeconomic factors; evolving privacy and regulatory standards; and our ability to achieve our expected strategic, financial and operational plans. For additional discussion of risk factors, please refer to our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and other filings that we make from time to time with the U.S. Securities and Exchange Commission (the "SEC"), which are available on the SEC's website (www.sec.gov).
Investors are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date such statements are made. We do not intend or undertake, and expressly disclaim, any duty or obligation to publicly update any forward-looking statements to reflect events, circumstances or new information after the date of this press release, or to reflect the occurrence of unanticipated events.
Use of Non-GAAP Financial Measures
To provide investors with additional information regarding our financial results, we are disclosing in this press release adjusted EBITDA, adjusted EBITDA margin and FX adjusted EBITDA, which are non-GAAP financial measures used by our management to understand and evaluate our core operating performance and trends. We believe that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our operating results, as they permit our investors to view our core business performance using the same metrics that management uses to evaluate our performance. Nevertheless, our use of these non-GAAP financial measures has limitations as an analytical tool, and investors should not consider these measures in isolation or as a substitute for analysis of our results as reported under GAAP. Instead, you should consider these measures alongside GAAP-based financial performance measures, net income (loss), net income (loss) margin, various cash flow metrics, and our other GAAP financial results. Set forth below are reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures, net income (loss) and net income (loss) margin. These reconciliations should be carefully evaluated.
Media |
Jenny Mulholland |
Broadsheet Communications |
press@comscore.com |
Investors |
John Tinker |
Comscore, Inc. |
212-203-2129 |
jtinker@comscore.com |
COMSCORE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
As of | As of | ||||||
March 31, 2024 | December 31, 2023 | ||||||
(In thousands, except share and per share data) | (Unaudited) | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 18,730 | $ | 22,750 | |||
Restricted cash | 187 | 186 | |||||
Accounts receivable, net of allowances of | 55,724 | 63,826 | |||||
Prepaid expenses and other current assets | 13,010 | 11,228 | |||||
Total current assets | 87,651 | 97,990 | |||||
Property and equipment, net | 41,431 | 41,574 | |||||
Operating right-of-use assets | 17,293 | 18,628 | |||||
Deferred tax assets | 2,453 | 2,588 | |||||
Intangible assets, net | 7,314 | 8,115 | |||||
Goodwill | 309,751 | 310,360 | |||||
Other non-current assets | 11,782 | 12,040 | |||||
Total assets | $ | 477,675 | $ | 491,295 | |||
Liabilities, Convertible Redeemable Preferred Stock and Stockholders' Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 28,508 | $ | 30,551 | |||
Accrued expenses | 32,855 | 34,422 | |||||
Contract liabilities | 50,097 | 48,912 | |||||
Revolving line of credit | 16,000 | 16,000 | |||||
Accrued dividends | 28,372 | 24,132 | |||||
Customer advances | 8,798 | 11,076 | |||||
Current operating lease liabilities | 8,424 | 7,982 | |||||
Current portion of contingent consideration | 1,202 | 4,806 | |||||
Other current liabilities | 3,044 | 4,680 | |||||
Total current liabilities | 177,300 | 182,561 | |||||
Non-current operating lease liabilities | 19,849 | 23,003 | |||||
Non-current portion of accrued data costs | 34,156 | 32,833 | |||||
Deferred tax liabilities | 1,232 | 1,321 | |||||
Other non-current liabilities | 5,901 | 7,589 | |||||
Total liabilities | 238,438 | 247,307 | |||||
Commitments and contingencies | |||||||
Convertible redeemable preferred stock, | 187,885 | 187,885 | |||||
Stockholders' equity: | |||||||
Preferred stock, | — | — | |||||
Common stock, | 5 | 5 | |||||
Additional paid-in capital | 1,699,142 | 1,696,612 | |||||
Accumulated other comprehensive loss | (16,097 | ) | (14,110 | ) | |||
Accumulated deficit | (1,401,714 | ) | (1,396,420 | ) | |||
Treasury stock, at cost, 338,239 shares as of March 31, 2024 and December 31, 2023 | (229,984 | ) | (229,984 | ) | |||
Total stockholders' equity | 51,352 | 56,103 | |||||
Total liabilities, convertible redeemable preferred stock and stockholders' equity | $ | 477,675 | $ | 491,295 |
COMSCORE, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) | |||||||
Three Months Ended March 31, | |||||||
(In thousands, except share and per share data) | 2024 | 2023 | |||||
Revenues | $ | 86,795 | $ | 91,558 | |||
Cost of revenues (1) (2) | 50,067 | 51,929 | |||||
Selling and marketing (1) (2) | 15,364 | 17,154 | |||||
Research and development (1) (2) | 8,767 | 8,919 | |||||
General and administrative (1) (2) | 13,213 | 13,574 | |||||
Amortization of intangible assets | 801 | 2,811 | |||||
Restructuring | 460 | 998 | |||||
Total expenses from operations | 88,672 | 95,385 | |||||
Loss from operations | (1,877 | ) | (3,827 | ) | |||
Other income (expense), net | 275 | (1,812 | ) | ||||
Gain (loss) from foreign currency transactions | 963 | (1,466 | ) | ||||
Interest expense, net | (572 | ) | (352 | ) | |||
Loss before income taxes | (1,211 | ) | (7,457 | ) | |||
Income tax benefit (provision) | 157 | (1,214 | ) | ||||
Net loss | $ | (1,054 | ) | $ | (8,671 | ) | |
Net loss available to common stockholders: | |||||||
Net loss | $ | (1,054 | ) | $ | (8,671 | ) | |
Convertible redeemable preferred stock dividends | (4,240 | ) | (3,825 | ) | |||
Total net loss available to common stockholders | $ | (5,294 | ) | $ | (12,496 | ) | |
Net loss per common share (3): | |||||||
Basic and diluted | $ | (1.08 | ) | $ | (2.66 | ) | |
Weighted-average number of shares used in per share calculation - Common Stock (3): | |||||||
Basic and diluted | 4,895,121 | 4,692,513 | |||||
Comprehensive loss: | |||||||
Net loss | $ | (1,054 | ) | $ | (8,671 | ) | |
Other comprehensive (loss) income: | |||||||
Foreign currency cumulative translation adjustment | (1,987 | ) | 1,517 | ||||
Total comprehensive loss | $ | (3,041 | ) | $ | (7,154 | ) | |
(1) Excludes amortization of intangible assets, which is presented as a separate line item. | |||||||
(2) Stock-based compensation expense is included in the line items above as follows: | |||||||
Three Months Ended March 31, | |||||||
2024 | 2023 | ||||||
Cost of revenues | $ | 243 | $ | 78 | |||
Selling and marketing | 140 | 105 | |||||
Research and development | 180 | 55 | |||||
General and administrative | 815 | 879 | |||||
Total stock-based compensation expense | $ | 1,378 | $ | 1,117 | |||
(3) Adjusted retroactively for a 1-for-20 reverse split of our common stock effected on December 20, 2023. |
COMSCORE, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||||||
Three Months Ended March 31, | |||||||
(In thousands) | 2024 | 2023 | |||||
Operating activities: | |||||||
Net loss | $ | (1,054 | ) | $ | (8,671 | ) | |
Adjustments to reconcile to net cash provided by operating activities: | |||||||
Depreciation | 5,248 | 4,724 | |||||
Stock-based compensation expense | 1,378 | 1,117 | |||||
Non-cash operating lease expense | 1,249 | 1,395 | |||||
Amortization of intangible assets | 801 | 2,811 | |||||
Amortization expense of finance leases | 644 | 429 | |||||
Change in fair value of contingent consideration liability | 89 | 96 | |||||
Change in fair value of warrants liability | (286 | ) | 1,815 | ||||
Deferred tax (benefit) provision | (132 | ) | 566 | ||||
Other | 623 | 254 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 7,605 | 5,868 | |||||
Prepaid expenses and other assets | (2,172 | ) | 38 | ||||
Accounts payable, accrued expenses and other liabilities | (3,311 | ) | (4,914 | ) | |||
Contract liabilities and customer advances | (1,164 | ) | 3,540 | ||||
Operating lease liabilities | (2,650 | ) | (1,817 | ) | |||
Net cash provided by operating activities | 6,868 | 7,251 | |||||
Investing activities: | |||||||
Capitalized internal-use software costs | (5,833 | ) | (5,345 | ) | |||
Purchases of property and equipment | (263 | ) | (487 | ) | |||
Net cash used in investing activities | (6,096 | ) | (5,832 | ) | |||
Financing activities: | |||||||
Contingent consideration payment at initial value | (3,693 | ) | (1,037 | ) | |||
Principal payments on finance leases | (658 | ) | (445 | ) | |||
Other | (56 | ) | (174 | ) | |||
Net cash used in financing activities | (4,407 | ) | (1,656 | ) | |||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (384 | ) | 467 | ||||
Net (decrease) increase in cash, cash equivalents and restricted cash | (4,019 | ) | 230 | ||||
Cash, cash equivalents and restricted cash at beginning of period | 22,936 | 20,442 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 18,917 | $ | 20,672 |
As of March 31, | |||||
2024 | 2023 | ||||
Cash and cash equivalents | $ | 18,730 | $ | 20,274 | |
Restricted cash | 187 | 398 | |||
Total cash, cash equivalents and restricted cash | $ | 18,917 | $ | 20,672 |
Reconciliation of Non-GAAP Financial Measures
The following table presents a reconciliation of GAAP net loss and net loss margin to non-GAAP adjusted EBITDA, adjusted EBITDA margin and non-GAAP FX adjusted EBITDA for each of the periods identified:
Three Months Ended March 31, | |||||||
(In thousands) | 2024 (Unaudited) | 2023 (Unaudited) | |||||
GAAP net loss | $ | (1,054 | ) | $ | (8,671 | ) | |
Depreciation | 5,248 | 4,724 | |||||
Income tax (benefit) provision | (157 | ) | 1,214 | ||||
Amortization of intangible assets | 801 | 2,811 | |||||
Interest expense, net | 572 | 352 | |||||
Amortization expense of finance leases | 644 | 429 | |||||
EBITDA | 6,054 | 859 | |||||
Adjustments: | |||||||
Stock-based compensation expense | 1,378 | 1,117 | |||||
Restructuring | 460 | 998 | |||||
Amortization of cloud-computing implementation costs | 362 | 359 | |||||
Change in fair value of contingent consideration liability | 89 | 96 | |||||
Transformation costs (1) | 75 | — | |||||
Other (income) expense, net (2) | (286 | ) | 1,815 | ||||
Non-GAAP adjusted EBITDA | $ | 8,132 | $ | 5,244 | |||
Net loss margin (3) | (1.2)% | (9.5)% | |||||
Non-GAAP adjusted EBITDA margin (4) | 9.4 | % | 5.7 | % | |||
Adjustments: | |||||||
(Gain) loss from foreign currency transactions | (963 | ) | 1,466 | ||||
Non-GAAP FX adjusted EBITDA | $ | 7,169 | $ | 6,710 |
(1) Transformation costs represent expenses incurred prior to formal launch of identified strategic projects with anticipated long-term benefits to the company. These costs generally relate to third-party consulting and non-capitalizable technology costs tied directly to the identified projects. We added transformation costs as an adjustment in Q3 2023 for greater transparency around these costs and have applied the adjustment to prior periods for comparison.
(2) Adjustments to other (income) expense, net reflect non-cash changes in the fair value of warrants liability included in other income (expense), net on our Condensed Consolidated Statements of Operations and Comprehensive Loss.
(3) Net loss margin is calculated by dividing net loss by revenues reported on our Condensed Consolidated Statements of Operations and Comprehensive Loss for the applicable period.
(4) Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenues reported on our Condensed Consolidated Statements of Operations and Comprehensive Loss for the applicable period.
Revenues
Revenues from our offerings of products and services (based on the new solution groups described above) are as follows:
Three Months Ended March 31, | ||||||||||||||||||
(In thousands) | 2024 (Unaudited) | % of Revenue | 2023 (Unaudited) | % of Revenue | $ Variance | % Variance | ||||||||||||
Content & Ad Measurement | ||||||||||||||||||
Syndicated Audience (1) | $ | 64,600 | 74.4 | % | $ | 70,466 | 77.0 | % | $ | (5,866 | ) | (8.3)% | ||||||
Cross-Platform | 8,020 | 9.3 | % | 6,245 | 6.8 | % | 1,775 | 28.4 | % | |||||||||
Total Content & Ad Measurement | 72,620 | 83.7 | % | 76,711 | 83.8 | % | (4,091 | ) | (5.3)% | |||||||||
Research & Insight Solutions | 14,175 | 16.3 | % | 14,847 | 16.2 | % | (672 | ) | (4.5)% | |||||||||
Total revenues | $ | 86,795 | 100.0 | % | $ | 91,558 | 100.0 | % | $ | (4,763 | ) | (5.2)% | ||||||
(1) Syndicated Audience revenue includes revenue from our movies business, which grew from |
If we had evaluated revenue based on our old solution groups, revenues from our offerings would have been as follows:
Three Months Ended March 31, | |||||||||||||||||
(In thousands) | 2024 (Unaudited) | % of Revenue | 2023 (Unaudited) | % of Revenue | $ Variance | % Variance | |||||||||||
Digital Ad Solutions | $ | 49,667 | 57.2 | % | $ | 50,447 | 55.1 | % | $ | (780 | ) | (1.5)% | |||||
Cross Platform Solutions (1) | 37,128 | 42.8 | % | 41,111 | 44.9 | % | (3,983 | ) | (9.7)% | ||||||||
Total revenues | $ | 86,795 | 100.0 | % | $ | 91,558 | 100.0 | % | $ | (4,763 | ) | (5.2)% | |||||
(1) Cross Platform Solutions revenue includes revenue from our movies business, which grew from |
If we had evaluated revenue in 2023 based on our new solution groups, full-year revenues from our offerings of products and services would have been as follows:
Three Months Ended (Unaudited) | Year Ended | ||||||||||||||||
(In thousands) | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | December 31, 2023 | % of Total 2023 Revenue | |||||||||||
Content & Ad Measurement | |||||||||||||||||
Syndicated Audience (1) | $ | 70,466 | $ | 69,139 | $ | 67,946 | $ | 68,550 | $ | 276,101 | 74.4 | % | |||||
Cross-Platform | 6,245 | 8,208 | 7,664 | 11,686 | 33,803 | 9.1 | % | ||||||||||
Total Content & Ad Measurement | 76,711 | 77,347 | 75,610 | 80,236 | 309,904 | 83.5 | % | ||||||||||
Research & Insight Solutions | 14,847 | 16,337 | 15,390 | 14,865 | 61,439 | 16.5 | % | ||||||||||
Total revenues | $ | 91,558 | $ | 93,684 | $ | 91,000 | $ | 95,101 | $ | 371,343 | 100.0 | % | |||||
(1) Syndicated Audience revenue includes revenue from our movies business, which was |
FAQ
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