Revenue of $91.4 million, up 4.3% from Q2 2021

Net loss of $5.1 million versus $18.5 million in Q2 2021

Adjusted EBITDA of $6.5 million, up 146.9% from Q2 2021

Updating 2022 revenue guidance and increasing adjusted EBITDA margin guidance

Comscore, Inc. (Nasdaq: SCOR), a trusted partner for planning, transacting, and evaluating media across platforms, today reported financial results for the quarter ended June 30, 2022.

Q2 2022 Financial Highlights

• Revenue for the second quarter was $91.4 million compared to $87.7 million in Q2 2021
• Cross Platform Solutions revenue grew 13.2% year over year to $39.8 million driven by local and national TV measurement and the continued rebound in our Movies business
• Digital Ad Solutions revenue declined 1.7% to $51.6 million due to slower ad spend, which impacted Activation and other digital products
• Net loss of $5.1 million compared to a net loss of $18.5 million in Q2 2021
• Adjusted EBITDA of $6.5 million compared to $2.6 million in Q2 2021

Recent Business Developments

Cross Platform Solutions

• Comscore's ongoing currency trials with Discovery, Warner Media and NBCU are proceeding well.
• Horizon Media is exclusively testing Comscore's local TV measurement solution as a new form of currency for 2023 planning and buying following their commitment to transact up to 15% of upfronts with alternative currencies.
• Publicis is testing Comscore's first generation Cross Platform Planning tool, with the goal to align local, national and cross-platform delivery.
• Gray Media expanded its local market TV subscription in 11 new local markets. Additionally, our independent agency growth was strong, signing 12 new agencies and expanding markets with nine existing independent agency accounts in Q2.

Digital Ad Solutions

• SiriusXM's AdsWizz has agreed to integrate Comscore's cookie-free Predictive Audiences targeting and AI contextual categorization engine for publishers and marketers across AdsWizz's podcast ecosystem.
• We added CTV measurement to our Video Metrix Multi-Platform product, including YouTube traffic sharing measurement, for India, Spain, the UK, Italy, France and Germany. Comscore is the first international measurement provider to deliver complete audience measurement across YouTube's largest platforms at the device level for PC, mobile and CTV.
• In Q2 we launched phase 1 of Total Digital, the new user interface for our syndicated digital suite. This new platform integrates a portion of our digital suite and all social measurement solutions into a unified, user-friendly dashboard that provides marketers, agencies and publishers with an always-on view of how consumers are engaging with content and advertising.

"I was honored to step into the CEO role in July and remain excited about the opportunity ahead for Comscore. This is a critical time for the industry and we are committed and focused on delivering innovative products and solutions that our customers want and driving the growth and profitability our shareholders expect. The quarter highlights the momentum in our business, particularly in Cross Platform Solutions, which includes our growing local and national television businesses. While there is still work to be done, I am excited and energized about the opportunity ahead," said Jon Carpenter, CEO of Comscore.

Second Quarter Summary Results

Revenue in the second quarter was $91.4 million, up 4.3% from $87.7 million in Q2 2021, with growth from increases in TV, Movies and Custom Digital Solutions partially offset by lower revenue from Activation and other digital products due to slower ad spend. Expenses from cost of revenues, sales and marketing, research and development and general and administrative were $96.0 million, up 4.0% from $92.3 million in Q2 2021.

Net loss for the quarter was $5.1 million, compared to net loss of $18.5 million in Q2 2021. After accounting for dividends on our convertible preferred stock, loss per share attributable to common shares was $(0.10), compared to a loss per share of $(0.28) in Q2 2021.

Adjusted EBITDA for the quarter was $6.5 million, compared to $2.6 million in Q2 2021, resulting in adjusted EBITDA margins of 7.1% and 3.0%, 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 June 30, 2022, cash, cash equivalents and restricted cash totaled $20.1 million. Total debt principal, including $16.0 million in outstanding borrowings under our senior secured revolving credit agreement, was $20.7 million.

2022 Outlook

Based on current trends and expectations, we believe 2022 total revenue will increase between 5% and 7% over 2021 and that our adjusted EBITDA margin will exceed 9%.

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 or adjusted EBITDA margin to the most directly comparable GAAP measure, GAAP net loss, on a forward-looking basis.

Conference Call Information for Today, Tuesday, August 9, 2022 at 5:00 p.m. ET

Management will host a conference call to discuss the results on Tuesday, August 9, 2022 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 trusted partner for planning, transacting and evaluating media across platforms. With a data footprint that combines digital, linear TV, OTT 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, continued growth in our national and local TV and Movies businesses, the impact of new customer contracts and partnerships on our business and revenue prospects, evolving industry trends, Comscore's currency opportunities and currency trials, 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.

 

As of

 

As of

 

June 30, 2022

 

December 31, 2021

(In thousands, except share and par value data)

(Unaudited)

 

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

19,634

 

 

$

21,854

 

Restricted cash

 

425

 

 

 

425

 

Accounts receivable, net of allowances of $911 and $1,173, respectively

 

56,566

 

 

 

72,059

 

Prepaid expenses and other current assets

 

14,593

 

 

 

14,769

 

Total current assets

 

91,218

 

 

 

109,107

 

Property and equipment, net

 

36,462

 

 

 

36,451

 

Operating right-of-use assets

 

26,167

 

 

 

29,186

 

Deferred tax assets

 

2,738

 

 

 

2,811

 

Intangible assets, net

 

26,394

 

 

 

39,945

 

Goodwill

 

434,014

 

 

 

435,711

 

Other non-current assets

 

11,311

 

 

 

10,263

 

Total assets

$

628,304

 

 

$

663,474

 

Liabilities, Convertible Redeemable Preferred Stock and Stockholders' Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

33,299

 

 

$

23,575

 

Accrued expenses

 

37,287

 

 

 

45,264

 

Contract liability

 

53,936

 

 

 

54,011

 

Customer advances

 

10,909

 

 

 

11,613

 

Current operating lease liabilities

 

7,528

 

 

 

7,538

 

Warrants liability

 

3,525

 

 

 

10,520

 

Other current liabilities

 

6,664

 

 

 

12,850

 

Total current liabilities

 

153,148

 

 

 

165,371

 

Non-current operating lease liabilities

 

32,348

 

 

 

36,055

 

Non-current portion of accrued data costs

 

20,781

 

 

 

16,005

 

Revolving line of credit

 

16,000

 

 

 

16,000

 

Deferred tax liabilities

 

2,997

 

 

 

2,103

 

Other non-current liabilities

 

13,358

 

 

 

16,879

 

Total liabilities

 

238,632

 

 

 

252,413

 

Commitments and contingencies

 

 

 

Convertible redeemable preferred stock, $0.001 par value; 82,527,609 shares authorized, issued and outstanding as of June 30, 2022 and December 31, 2021; aggregate liquidation preference of $204,043 as of June 30, 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 June 30, 2022 and December 31, 2021, respectively; no shares issued or outstanding as of June 30, 2022 or December 31, 2021

 

—

 

 

 

—

 

Common stock, $0.001 par value; 275,000,000 shares authorized as of June 30, 2022 and December 31, 2021; 98,538,188 shares issued and 91,773,392 shares outstanding as of June 30, 2022, and 97,172,086 shares issued and 90,407,290 shares outstanding as of December 31, 2021

 

92

 

 

 

90

 

Additional paid-in capital

 

1,689,596

 

 

 

1,683,883

 

Accumulated other comprehensive loss

 

(17,183

)

 

 

(12,098

)

Accumulated deficit

 

(1,240,734

)

 

 

(1,218,715

)

Treasury stock, at cost, 6,764,796 shares as of June 30, 2022 and December 31, 2021

 

(229,984

)

 

 

(229,984

)

Total stockholders' equity

 

201,787

 

 

 

223,176

 

Total liabilities, convertible redeemable preferred stock and stockholders' equity

$

628,304

 

 

$

663,474

 

 

COMSCORE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

(In thousands, except share and per share data)

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Revenues

$

91,434

 

 

$

87,659

 

 

$

185,400

 

 

$

177,989

 

 

 

 

 

 

 

 

 

Cost of revenues (1) (2)

 

51,467

 

 

 

51,386

 

 

 

104,385

 

 

 

104,088

 

Selling and marketing (1) (2)

 

17,485

 

 

 

16,530

 

 

 

34,651

 

 

 

34,357

 

Research and development (1) (2)

 

9,917

 

 

 

10,132

 

 

 

19,449

 

 

 

20,485

 

General and administrative (1) (2)

 

17,103

 

 

 

14,246

 

 

 

35,220

 

 

 

28,714

 

Amortization of intangible assets

 

6,772

 

 

 

6,255

 

 

 

13,551

 

 

 

12,694

 

Total expenses from operations

 

102,744

 

 

 

98,549

 

 

 

207,256

 

 

 

200,338

 

Loss from operations

 

(11,310

)

 

 

(10,890

)

 

 

(21,856

)

 

 

(22,349

)

Other income (expense), net

 

4,557

 

 

 

(6,508

)

 

 

6,990

 

 

 

(14,782

)

Gain (loss) from foreign currency transactions

 

2,527

 

 

 

(370

)

 

 

2,947

 

 

 

704

 

Interest expense, net

 

(176

)

 

 

(355

)

 

 

(376

)

 

 

(7,400

)

Loss on extinguishment of debt

 

—

 

 

 

—

 

 

 

—

 

 

 

(9,629

)

Loss before income taxes

 

(4,402

)

 

 

(18,123

)

 

 

(12,295

)

 

 

(53,456

)

Income tax provision

 

(648

)

 

 

(422

)

 

 

(2,031

)

 

 

(1,444

)

Net loss

$

(5,050

)

 

$

(18,545

)

 

$

(14,326

)

 

$

(54,900

)

Net loss available to common stockholders

 

 

 

 

 

 

 

Net loss

$

(5,050

)

 

$

(18,545

)

 

$

(14,326

)

 

$

(54,900

)

Convertible redeemable preferred stock dividends

 

(3,868

)

 

 

(3,868

)

 

 

(7,693

)

 

 

(4,803

)

Total net loss available to common stockholders

$

(8,918

)

 

$

(22,413

)

 

$

(22,019

)

 

$

(59,703

)

Net loss per common share:

 

 

 

 

 

 

 

Basic and diluted

$

(0.10

)

 

$

(0.28

)

 

$

(0.24

)

 

$

(0.76

)

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

 

 

 

 

 

 

 

Basic and diluted

 

92,405,250

 

 

 

81,427,971

 

 

 

92,048,120

 

 

 

78,813,987

 

Comprehensive loss:

 

 

 

 

 

 

 

Net loss

$

(5,050

)

 

$

(18,545

)

 

$

(14,326

)

 

$

(54,900

)

Other comprehensive (loss) income:

 

 

 

 

 

 

 

Foreign currency cumulative translation adjustment

 

(4,544

)

 

 

731

 

 

 

(5,085

)

 

 

(1,420

)

Total comprehensive loss

$

(9,594

)

 

$

(17,814

)

 

$

(19,411

)

 

$

(56,320

)

 

 

 

 

 

 

 

 

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

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

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Cost of revenues

$

421

 

 

$

468

 

 

$

722

 

 

$

1,323

 

Selling and marketing

 

409

 

 

 

516

 

 

 

672

 

 

 

1,471

 

Research and development

 

311

 

 

 

350

 

 

 

511

 

 

 

992

 

General and administrative

 

2,121

 

 

 

1,851

 

 

 

3,893

 

 

 

4,336

 

Total stock-based compensation expense

$

3,262

 

 

$

3,185

 

 

$

5,798

 

 

$

8,122

 

 

COMSCORE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

Six Months Ended June 30,

(In thousands)

 

2022

 

 

 

2021

 

Operating activities:

 

 

 

Net loss

$

(14,326

)

 

$

(54,900

)

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

 

 

 

Amortization of intangible assets

 

13,551

 

 

 

12,694

 

Depreciation

 

8,356

 

 

 

7,991

 

Stock-based compensation expense

 

5,798

 

 

 

8,122

 

Non-cash operating lease expense

 

2,990

 

 

 

2,597

 

Change in fair value of contingent consideration liability

 

2,403

 

 

 

—

 

Amortization expense of finance leases

 

1,360

 

 

 

941

 

Deferred tax provision

 

781

 

 

 

967

 

Change in fair value of warrants liability

 

(6,995

)

 

 

16,520

 

Loss on extinguishment of debt

 

—

 

 

 

9,629

 

Non-cash interest expense on senior secured convertible notes

 

—

 

 

 

4,692

 

Other

 

1,128

 

 

 

357

 

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

 

 

 

Accounts receivable

 

14,413

 

 

 

5,336

 

Prepaid expenses and other assets

 

(2,278

)

 

 

1,516

 

Accounts payable, accrued expenses and other liabilities

 

2,544

 

 

 

8,692

 

Contract liabilities and customer advances

 

(1,642

)

 

 

(11,608

)

Current Operating lease liabilities

 

(3,850

)

 

 

(2,686

)

Net cash provided by operating activities

 

24,233

 

 

 

10,860

 

 

 

 

 

Investing activities:

 

 

 

Capitalized internal-use software costs

 

(7,587

)

 

 

(7,369

)

Purchases of property and equipment

 

(669

)

 

 

(354

)

Net cash used in investing activities

 

(8,256

)

 

 

(7,723

)

 

 

 

 

Financing activities:

 

 

 

Payments for dividends on convertible redeemable preferred stock

 

(15,512

)

 

 

(4,760

)

Principal payments on finance leases

 

(1,456

)

 

 

(920

)

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

 

(21

)

 

 

(334

)

Net cash used in financing activities

 

(16,989

)

 

 

(35,876

)

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

 

(1,208

)

 

 

(322

)

Net decrease in cash, cash equivalents and restricted cash

 

(2,220

)

 

 

(33,061

)

Cash, cash equivalents and restricted cash at beginning of period

 

22,279

 

 

 

50,741

 

Cash, cash equivalents and restricted cash at end of period

$

20,059

 

 

$

17,680

 

 

As of June 30,

 

 

2022

 

 

2021

Cash and cash equivalents

$

19,634

 

$

16,659

Restricted cash

 

425

 

 

1,021

Total cash, cash equivalents and restricted cash

$

20,059

 

$

17,680

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 June 30,

 

Six Months Ended June 30,

(In thousands)

2022 (Unaudited)

 

2021 (Unaudited)

 

2022 (Unaudited)

 

2021 (Unaudited)

GAAP net loss

$

(5,050

)

 

$

(18,545

)

 

$

(14,326

)

 

$

(54,900

)

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

6,772

 

 

 

6,255

 

 

 

13,551

 

 

 

12,694

 

Depreciation

 

4,165

 

 

 

3,937

 

 

 

8,356

 

 

 

7,991

 

Amortization expense of finance leases

 

656

 

 

 

498

 

 

 

1,360

 

 

 

941

 

Income tax provision

 

648

 

 

 

422

 

 

 

2,031

 

 

 

1,444

 

Interest expense, net

 

176

 

 

 

355

 

 

 

376

 

 

 

7,400

 

EBITDA

 

7,367

 

 

 

(7,078

)

 

 

11,348

 

 

 

(24,430

)

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

Stock-based compensation expense

 

3,262

 

 

 

3,185

 

 

 

5,798

 

 

 

8,122

 

Amortization of cloud-computing implementation costs

 

359

 

 

 

—

 

 

 

718

 

 

 

—

 

Change in fair value of contingent consideration liability

 

55

 

 

 

—

 

 

 

2,403

 

 

 

—

 

Loss on extinguishment of debt

 

—

 

 

 

—

 

 

 

—

 

 

 

9,629

 

Other (income) expense, net (1)

 

(4,560

)

 

 

6,519

 

 

 

(6,995

)

 

 

14,870

 

Non-GAAP adjusted EBITDA

$

6,483

 

 

$

2,626

 

 

$

13,272

 

 

$

8,191

 

Non-GAAP adjusted EBITDA margin (2)

 

7.1

%

 

 

3.0

%

 

 

7.2

%

 

 

4.6

%

(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 or adjusted EBITDA margin 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 June 30,

 

 

 

 

(In thousands)

2022 (Unaudited)

 

% of Revenue

 

2021 (Unaudited)

 

% of Revenue

 

$ Variance

 

% Variance

Digital Ad Solutions

$

51,630

 

56.5

%

 

$

52,497

 

59.9

%

 

$

(867

)

 

(1.7

) %

Cross Platform Solutions (1)

 

39,804

 

43.5

%

 

 

35,162

 

40.1

%

 

 

4,642

 

 

13.2

%

Total revenues

$

91,434

 

100.0

%

 

$

87,659

 

100.0

%

 

$

3,775

 

 

4.3

%

(1) Cross Platform Solutions revenue includes revenue from our movies business, which grew from $7.5 million in the second quarter of 2021 to $8.4 million in the second quarter of 2022.

 

Six Months Ended June 30,

 

 

 

 

(In thousands)

2022 (Unaudited)

 

% of Revenue

 

2021 (Unaudited)

 

% of Revenue

 

$ Variance

 

% Variance

Digital Ad Solutions

$

104,767

 

56.5

%

 

$

105,542

 

59.3

%

 

$

(775

)

 

(0.7

) %

Cross Platform Solutions (1)

 

80,633

 

43.5

%

 

 

72,447

 

40.7

%

 

 

8,186

 

 

11.3

%

Total revenues

$

185,400

 

100.0

%

 

$

177,989

 

100.0

%

 

$

7,411

 

 

4.2

%

(1) Cross Platform Solutions revenue includes revenue from our movies business, which grew from $14.3 million in the first half of 2021 to $16.5 million in the first half of 2022.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220809006027/en/

Press Bill Daddi Daddi Brand Communications 917-920-3717 press@comscore.com

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