Company Announcements

Comscore Reports First Quarter 2022 Results

Revenue of $94.0 Million, up 4% from Q1 2021

Net Loss of $9.3 Million versus $36.4 Million in Q1 2021

Adjusted EBITDA of $6.8 Million, up 22% from Q1 2021

RESTON, Va.--(BUSINESS WIRE)--May 10, 2022-- 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, 2022.

Q1 2022 Financial Highlights

  • Revenue for the first quarter was $94.0 million compared to $90.3 million in Q12021
  • TV measurement grew double digits year over year on new business wins and renewals with long-standing partners
  • Activation up 20% year over year as our privacy-forward solutions are beginning to scale
  • Net loss of $9.3 million compared to a net loss of $36.4 million in Q12021
  • Adjusted EBITDA of $6.8 million compared to $5.6 million in Q12021

Recent Business Developments

Cross Platform Solutions

  • MRC audit for Local and National Television measurement is underway
  • New National TV business wins with Warner Bros. Discovery and Paramount Global
  • Warner Bros. Discovery considers Comscore as an alternative currency provider with multiple national agencies
  • NBCU certifies Comscore for Local currency measurement, NBCU's only certified Local provider
  • Comcast Cable's ad sales division Effectv announces Comscore as a currency for its local markets
  • Sinclair becomes first TV group to subscribe to a multiyear contract with Comscore's Consumer Intelligence (CCI) for local markets
  • Expanded relationship with WideOrbit to include Comscore as a new currency for its local markets, with automated TV buying and selling across 1700 stations in all 210 markets

Digital Ad Solutions

  • Renewed partnership with IRI to add custom CPG segments to Comscore's growing Activation suite of privacy-forward product offerings
  • Tremor International partners with Comscore's cookie-free Predictive Audiences to pre-bid audience targeting across desktop, mobile and connected TV (CTV)
  • New business with Redfin and WebMD
  • CCR engagement with NBCU and Warner Bros. Discovery

"This was another solid quarter of year-over-year growth for Comscore. I am proud of the progress we are making across all our lines of business. As the measurement landscape evolves, Comscore remains focused on delivering superior products that drive the best outcomes for our clients. Throughout the quarter we continued to sign new clients and renewed long-standing currency relationships with industry-leading companies. There continues to be a tremendous opportunity for Comscore as it positions itself as the leading cross-platform currency, which we expect will continue to drive revenue growth throughout 2022," said Bill Livek, CEO and Executive Vice Chairman of Comscore.

First Quarter Summary Results

Revenue in the first quarter was $94.0 million, up 4% from $90.3 million in Q12021, with growth from increases in TV, Movies, Custom Solutions, and Activation partially offset by lower revenue from services related to our international digital measurement offering. Expenses from cost of revenues, sales and marketing, research and development and general and administrative were $97.7 million, up 2.5% from $95.4 million in Q12021.

Net loss for the quarter was $9.3 million, compared to net loss of $36.4 million in Q12021. Included in net loss for Q1 2021 was a $15.3 million non-cash charge related to the recapitalization transaction that closed in March 2021. After accounting for dividends on our convertible preferred stock, loss per share attributable to common shares was $(0.14), compared to a loss per share of $(0.49) in Q12021.

Adjusted EBITDA for the quarter was $6.8 million, compared to $5.6 million in Q12021, resulting in adjusted EBITDA margins of 7% and 6%, respectively. Adjusted EBITDA and adjusted EBITDA margin exclude stock-based compensation, change in fair value of contingent consideration, financing derivatives and warrants liability, debt extinguishment costs, amortization of cloud-computing implementation costs, and other items as presented in the accompanying tables.

Balance Sheet and Liquidity

As of March 31, 2022, cash, cash equivalents and restricted cash totaled $30.1 million. Total debt principal, including $16.0 million in outstanding borrowings under our senior secured revolving credit agreement, was $20.5 million.

2022 Outlook

Based on current trends and expectations, we continue to believe that revenue will increase mid to high single digits over 2021 and expect the adjusted EBITDA margin to be consistent with 2021.

Conference Call Information for Today, Tuesday, May 10, 2022 at 5:00 p.m. ET

Management will provide commentary on the company's results in a conference call on Tuesday, May 10, 2022 at 5:00 p.m. ET. To access this call, dial +1 844-229-7593 (U.S. and Canada) or +1 314-888-4258 (international) and reference Conference ID # 9990618. Participants are advised to dial in at least 10 minutes prior to the call to register. Additionally, a live webcast of the conference call will be available on the Investor Relations section of the company's website at ir.comscore.com/events-presentations.

Following the conference call, a replay will be available by dialing +1 855-859-2056 (U.S. and Canada) or +1 404-537-3406 (international) with Conference ID #9990618. The replay will also be available via webcast at ir.comscore.com/events-presentations.

About Comscore

Comscore is a 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 allows media buyers and sellers to quantify their multiscreen behavior and make 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 future periods, the impact of new customer contracts and partnerships on our business and revenue prospects, evolving industry trends, Comscore's currency opportunities, and product development and innovation. 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; evolving privacy and regulatory standards; the continuing impact of the Covid-19 pandemic and related government mandates; 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 herein adjusted EBITDA and adjusted EBITDA margin, 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 loss, 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 measure, net loss. These reconciliations should be carefully evaluated.

 

COMSCORE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

 

As of

 

As of

 

March 31, 2022

 

December 31, 2021

(In thousands, except share and par value data)

(Unaudited)

 

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

29,629

 

 

$

21,854

 

Restricted cash

 

425

 

 

 

425

 

Accounts receivable, net of allowances of $972 and $1,173, respectively

 

64,618

 

 

 

72,059

 

Prepaid expenses and other current assets

 

14,378

 

 

 

14,769

 

Total current assets

 

109,050

 

 

 

109,107

 

Property and equipment, net

 

35,600

 

 

 

36,451

 

Operating right-of-use assets

 

27,744

 

 

 

29,186

 

Deferred tax assets

 

3,173

 

 

 

2,811

 

Intangible assets, net

 

33,166

 

 

 

39,945

 

Goodwill

 

435,473

 

 

 

435,711

 

Other non-current assets

 

11,507

 

 

 

10,263

 

Total assets

$

655,713

 

 

$

663,474

 

Liabilities, Convertible Redeemable Preferred Stock and Stockholders' Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

29,124

 

 

$

23,575

 

Accrued expenses

 

38,393

 

 

 

45,264

 

Contract liability

 

58,563

 

 

 

54,011

 

Customer advances

 

10,933

 

 

 

11,613

 

Warrants liability

 

8,085

 

 

 

10,520

 

Current operating lease liabilities

 

7,579

 

 

 

7,538

 

Other current liabilities

 

18,251

 

 

 

12,850

 

Total current liabilities

 

170,928

 

 

 

165,371

 

Non-current operating lease liabilities

 

34,238

 

 

 

36,055

 

Non-current portion of accrued data costs

 

18,195

 

 

 

16,005

 

Revolving line of credit

 

16,000

 

 

 

16,000

 

Deferred tax liabilities

 

2,762

 

 

 

2,103

 

Other non-current liabilities

 

12,445

 

 

 

16,879

 

Total liabilities

 

254,568

 

 

 

252,413

 

Commitments and contingencies

 

 

 

Convertible redeemable preferred stock, $0.001 par value; 82,527,609 shares authorized, issued and outstanding as of March 31, 2022 and December 31, 2021; aggregate liquidation preference of $215,688 as of March 31, 2022, and $211,863 as of December 31, 2021

 

187,885

 

 

 

187,885

 

Stockholders' equity:

 

 

 

Preferred stock, $0.001 par value; 7,472,391 shares authorized as of March 31, 2022 and December 31, 2021, respectively; no shares issued or outstanding as of March 31, 2022 or December 31, 2021

 

 

 

 

 

Common stock, $0.001 par value; 275,000,000 shares authorized as of March 31, 2022 and December 31, 2021; 97,470,138 shares issued and 90,705,342 shares outstanding as of March 31, 2022, and 97,172,086 shares issued and 90,407,290 shares outstanding as of December 31, 2021

 

91

 

 

 

90

 

Additional paid-in capital

 

1,687,608

 

 

 

1,683,883

 

Accumulated other comprehensive loss

 

(12,639

)

 

 

(12,098

)

Accumulated deficit

 

(1,231,816

)

 

 

(1,218,715

)

Treasury stock, at cost, 6,764,796 shares as of March 31, 2022 and December 31, 2021

 

(229,984

)

 

 

(229,984

)

Total stockholders' equity

 

213,260

 

 

 

223,176

 

Total liabilities, convertible redeemable preferred stock and stockholders' equity

$

655,713

 

 

$

663,474

 

 

COMSCORE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Unaudited)

 

Three Months Ended March 31,

(In thousands, except share and per share data)

 

2022

 

 

 

2021

 

Revenues

$

93,966

 

 

$

90,330

 

 

 

 

 

Cost of revenues(1) (2)

 

52,918

 

 

 

52,702

 

Selling and marketing (1) (2)

 

17,166

 

 

 

17,827

 

Research and development(1) (2)

 

9,532

 

 

 

10,353

 

General and administrative (1) (2)

 

18,117

 

 

 

14,468

 

Amortization of intangible assets

 

6,779

 

 

 

6,439

 

Total expenses from operations

 

104,512

 

 

 

101,789

 

Loss from operations

 

(10,546

)

 

 

(11,459

)

Other income (expense), net

 

2,433

 

 

 

(8,274

)

Gain from foreign currency transactions

 

420

 

 

 

1,074

 

Interest expense, net

 

(200

)

 

 

(7,045

)

Loss on extinguishment of debt

 

 

 

 

(9,629

)

Loss before income taxes

 

(7,893

)

 

 

(35,333

)

Income tax provision

 

(1,383

)

 

 

(1,022

)

Net loss

$

(9,276

)

 

$

(36,355

)

Net loss available to common stockholders

 

 

 

Net loss

$

(9,276

)

 

$

(36,355

)

Convertible redeemable preferred stock dividends

 

(3,825

)

 

 

(935

)

Total net loss available to common stockholders

$

(13,101

)

 

$

(37,290

)

Net loss per common share:

 

 

 

Basic and diluted

$

(0.14

)

 

$

(0.49

)

Weighted-average number of shares used in per share calculation - Common Stock:

 

 

 

Basic and diluted

 

91,686,733

 

 

 

76,147,342

 

Comprehensive loss:

 

 

 

Net loss

$

(9,276

)

 

$

(36,355

)

Other comprehensive loss:

 

 

 

Foreign currency cumulative translation adjustment

 

(541

)

 

 

(2,151

)

Total comprehensive loss

$

(9,817

)

 

$

(38,506

)

 

 

 

 

(1) Excludes amortization of intangible assets, which is presented separately in the Consolidated Statements of Operations and Comprehensive Loss.

(2) Stock-based compensation expense is included in the line items above as follows:

 

 

 

 

 

Three Months Ended March 31,

 

 

2022

 

 

 

2021

 

Cost of revenues

$

301

 

 

$

855

 

Selling and marketing

 

263

 

 

 

955

 

Research and development

 

200

 

 

 

642

 

General and administrative

 

1,772

 

 

 

2,485

 

Total stock-based compensation expense

$

2,536

 

 

$

4,937

 

 

COMSCORE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

 

Three Months Ended March 31,

(In thousands)

 

2022

 

 

 

2021

 

Operating activities:

 

 

 

Net loss

$

(9,276

)

 

$

(36,355

)

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

 

 

 

Amortization of intangible assets

 

6,779

 

 

 

6,439

 

Depreciation

 

4,191

 

 

 

4,054

 

Stock-based compensation expense

 

2,536

 

 

 

4,937

 

Change in fair value of contingent consideration liability

 

2,348

 

 

 

 

Non-cash operating lease expense

 

1,483

 

 

 

1,262

 

Amortization expense of finance leases

 

704

 

 

 

443

 

Deferred tax provision

 

513

 

 

 

638

 

Change in fair value of warrants liability

 

(2,435

)

 

 

10,001

 

Loss on extinguishment of debt

 

 

 

 

9,629

 

Non-cash interest expense on senior secured convertible notes

 

 

 

 

4,692

 

Other

 

469

 

 

 

260

 

Changes in operating assets and liabilities, net of effect of acquisition:

 

 

 

Accounts receivable

 

7,301

 

 

 

7,326

 

Prepaid expenses and other assets

 

(1,270

)

 

 

3,119

 

Accounts payable, accrued expenses and other liabilities

 

(2,288

)

 

 

4,970

 

Contract liabilities and customer advances

 

3,209

 

 

 

(2,085

)

Current Operating lease liabilities

 

(1,856

)

 

 

(1,442

)

Net cash provided by operating activities

 

12,408

 

 

 

17,888

 

 

 

 

 

Investing activities:

 

 

 

Capitalized internal-use software costs

 

(3,452

)

 

 

(3,535

)

Purchases of property and equipment

 

(347

)

 

 

(157

)

Net cash used in investing activities

 

(3,799

)

 

 

(3,692

)

 

 

 

 

Financing activities:

 

 

 

Principal payments on finance leases

 

(796

)

 

 

(466

)

Principal payment and extinguishment costs on senior secured convertible notes

 

 

 

 

(204,014

)

Principal payment and extinguishment costs on secured term note

 

 

 

 

(14,031

)

Proceeds from issuance of convertible redeemable preferred stock, net of issuance costs

 

 

 

 

188,183

 

Other

 

48

 

 

 

(149

)

Net cash used in financing activities

 

(748

)

 

 

(30,477

)

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

 

(86

)

 

 

(588

)

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

 

7,775

 

 

 

(16,869

)

Cash, cash equivalents and restricted cash at beginning of period

 

22,279

 

 

 

50,741

 

Cash, cash equivalents and restricted cash at end of period

$

30,054

 

 

$

33,872

 

 

As of March 31,

 

 

2022

 

 

2021

Cash and cash equivalents

$

29,629

 

$

29,075

Restricted cash

 

425

 

 

4,797

Total cash, cash equivalents and restricted cash

$

30,054

 

$

33,872

 

Reconciliation of Non-GAAP Financial Measures

The following table presents a reconciliation of GAAP net loss to non-GAAP adjusted EBITDA and adjusted EBITDA margin for each of the periods identified:

 

Three Months Ended March 31,

(In thousands)

2022 (Unaudited)

 

2021 (Unaudited)

GAAP net loss

 

(9,276

)

 

 

(36,355

)

 

 

 

 

Amortization of intangible assets

 

6,779

 

 

 

6,439

 

Depreciation

 

4,191

 

 

 

4,054

 

Income tax provision

 

1,383

 

 

 

1,022

 

Amortization expense of finance leases

 

704

 

 

 

443

 

Interest expense, net

 

200

 

 

 

7,045

 

EBITDA

 

3,981

 

 

 

(17,352

)

 

 

 

 

Adjustments:

 

 

 

Stock-based compensation expense

 

2,536

 

 

 

4,937

 

Change in fair value of contingent consideration liability

 

2,348

 

 

 

 

Amortization of cloud-computing implementation costs

 

359

 

 

 

 

Loss on extinguishment of debt

 

 

 

 

9,629

 

Other (income) expense, net (1)

 

(2,435

)

 

 

8,351

 

Non-GAAP adjusted EBITDA

$

6,789

 

 

$

5,565

 

Non-GAAP adjusted EBITDA margin (2)

 

7.2

%

 

 

6.2

%

(1) Adjustments to other (income) expense, net reflect non-cash changes in the fair value of financing derivatives, interest make-whole derivative and warrants liability included in other income (expense), net on our Condensed Consolidated Statements of Operations and Comprehensive Loss.

(2) Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue reported on our Condensed Consolidated Statements of Operations and Comprehensive Loss for the applicable period.

We do not provide GAAP net loss 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 to the most directly comparable GAAP measure, GAAP net loss, on a forward-looking basis.

Revenues

Revenues from our two offerings of products and services are as follows:

 

Three Months Ended March 31,

 

 

 

 

(In thousands)

2022 (Unaudited)

 

% of Revenue

 

2021 (Unaudited)

 

% of Revenue

 

$ Variance

 

% Variance

Digital Ad Solutions

$

53,137

 

56.5

%

 

$

53,045

 

58.7

%

 

$

92

 

0.2

%

Cross Platform Solutions (1)

 

40,829

 

43.5

%

 

 

37,285

 

41.3

%

 

 

3,544

 

9.5

%

Total revenues

$

93,966

 

100.0

%

 

$

90,330

 

100.0

%

 

$

3,636

 

4.0

%

(1) Cross Platform Solutions revenue includes revenue from our movies business, which grew from $6.8 million in the first quarter of 2021 to $8.2 million in the first quarter of 2022.

 

Press
Bill Daddi
Daddi Brand Communications
917-370-1341
press@comscore.com

Investors
John Tinker
Comscore, Inc.
212-203-2129
jtinker@comscore.com

Source: Comscore, Inc.