Comscore Reports Second Quarter 2021 Results

RESTON, Va., Aug. 9, 2021 /PRNewswire/ — Comscore, Inc. (Nasdaq: SCOR), a trusted partner for planning, transacting, and evaluating media across…

RESTON, Va., Aug. 9, 2021 /PRNewswire/ — 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, 2021.

Second Quarter 2021 Financial Highlights

  • Revenue for the second quarter was $87.7 million compared to $88.6 million in the prior-year quarter
  • Net loss of $18.5 million compared to a net loss of $10.4 million in the prior-year quarter
  • Adjusted EBITDA of $2.6 million compared to $9.2 million in the prior-year quarter

Recent Key Renewals, Partnerships and New Business Developments

  • Syndicated Digital – New agreements from Estrella Media, Fusion92, Channel Factory, TheWrap and Minute Media
  • National TV – Six new accounts, including an exclusive long-term currency agreement with sports marketing agency Octagon, as well as an extended agreement with Fox for Comscore’s national TV measurement currency
  • Local TV – New agreements with Capitol Broadcasting and Titan TV and signed renewals with Standard Media Group and the News-Press Gazette
  • Activation – New agreements with Verisk Predictive Audiences partner for retail predictive audiences, Spiketrap Predictive Audiences partner for gaming predictive audiences, InfoSum, Experian, and LiveRamp Safe Haven to offer 1st party Predictive Audiences and Contextual Activation integration with Viant Technology Inc.
  • Movies – Long-term agreements with two major studios, in both theatrical and streaming
  • Expansion of Google data hub to include YouTube and YouTube TV for cross-platform advertising measurement
  • Integrated Comscore’s TV measurement into SQAD MediaCosts research platform for national and local market TV buys
  • Partnered with conversation analytics platform Spiketrap to launch next-generation cookieless targeting for gaming audiences
  • New agreements with Lightbox, Captivate, and GSTV for digital out-of-home measurement
  • Launched Plan Metrix Multi-Platform in India

«This quarter we saw solid performance in many areas of our business, signing many new customers that we expect to increase revenue in the second half of the year. With movie theaters beginning to reopen, we expect to see a healthy rebound in that business as well over the coming quarters. Some of these new contracts and partnerships didn’t have a revenue impact in the second quarter but will start in the second half of the year. As a result, we remain confident in our ability to grow revenue as the year progresses,» said Bill Livek, CEO and Executive Vice Chairman of Comscore.

Second Quarter Summary Results

Revenue in the second quarter of 2021 was $87.7 million, down from $88.6 million in the year-ago quarter, with growth from increases in TV, custom marketing solutions and Activation offset by lower movie and syndicated digital revenue.

Ratings and Planning revenue was $62.4 million in the second quarter of 2021, compared to $63.8 million in the year-ago quarter. The decrease was the result of lower syndicated digital and cross-platform audience products offset by higher TV revenue. TV continued to experience higher revenue compared to the prior year from new partnerships and increased agency use. Syndicated digital revenue was lower compared to the second quarter of 2020 primarily from reductions in our international business.

Analytics and Optimization revenue was $17.8 million in the second quarter of 2021, compared to $16.9 million in the year-ago quarter. The increase related to higher Lift and Survey deliveries and Activation, which experienced a 65% increase year-over-year in the quarter and 27% sequential growth as we continued to bring new solutions to market.

Movies Reporting and Analytics revenue was $7.5 million in the second quarter of 2021, compared to $7.9 million in the year-ago quarter, and up 10% sequentially. As theater reopening began in earnest in major U.S. cities in the first quarter and in Europe in the second quarter, we believe revenue from the movies business has bottomed and will continue to experience sequential quarterly increases throughout 2021.

Expenses from cost of revenues, sales and marketing, research and development, and general and administrative were $92.3 million compared to $84.5 million in the year-ago quarter. The increase relates primarily to higher data costs and professional fees. These increases were offset by lower panel costs, facility costs, and other general operating expenses. Expenses in the second quarter of 2020 were abnormally low due in part to temporary cost saving measures taken by management at the start of the pandemic, for which expenses have now returned to normal levels.

Net loss for the second quarter of 2021 was $18.5 million compared to a net loss of $10.4 million reported in the year-ago quarter. Loss per share attributable to common shares was $(0.28), compared to a loss per share attributable to common shares of $(0.15) in the year-ago quarter.

For the second quarter of 2021, non-GAAP adjusted EBITDA was $2.6 million, compared to $9.2 million in the year-ago quarter. The decrease in the second quarter of 2021 compared to the prior-year quarter relates primarily to higher data costs associated with our new commercial agreements, as well as second-quarter 2020 expenses being abnormally low as discussed above. Adjusted EBITDA excludes stock-based compensation expense, impairment charges, change in fair value of financing derivatives and warrants liability, debt extinguishment costs, and other items as presented in the accompanying tables.

Balance Sheet and Liquidity

As of June 30, 2021, cash, cash equivalents and restricted cash totaled $17.7 million, including $1.0 million in restricted cash. Total debt principal as of June 30, 2021 was $5.4 million.

2021 Outlook

Based on current trends and expectations, we believe full-year 2021 revenue and adjusted EBITDA margin will be at the lower end of the previously announced ranges. Those ranges estimated a revenue increase between 3% and 5% over 2020 and adjusted EBITDA margin of 6% to 8%. While the company has signed and announced many new customers and expects these partnerships and agreements to generate higher revenue over the long-term, the contracts were executed later in the year than anticipated, which will result in a less significant revenue impact to 2021 than previously contemplated.

We do not provide GAAP net income (loss) on a forward-looking basis because we are unable to predict with reasonable certainty our future stock-based compensation expense, fair value adjustments for financing derivatives and warrants, 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), on a forward-looking basis.

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

Management will provide commentary on the company’s results in a conference call on Monday, August 9, 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 # 2741059. 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 #2741059. 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 2021, the impact of new customer contracts and partnerships on our business and revenue prospects, the continued impact of the Covid-19 pandemic on our business, evolving industry trends, 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; 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 non-GAAP net income (loss), 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), 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 income (loss). These reconciliations should be carefully evaluated.

COMSCORE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and par value data)



As of


As of


June 30, 2021


December 31, 2020


(Unaudited)



Assets




Current assets:




Cash and cash equivalents

$

16,659



$

31,126


Restricted cash

1,021



19,615


Accounts receivable, net of allowances of $1,332 and $2,757, respectively

63,903



69,379


Prepaid expenses and other current assets

12,261



16,910


Total current assets

93,844



137,030


Property and equipment, net

31,683



30,973


Operating right-of-use assets

31,201



28,959


Goodwill

417,619



418,327


Intangible assets, net

39,645



52,340


Deferred tax assets

2,783



2,741


Other non-current assets

10,604



7,600


Total assets

$

627,379



$

677,970


Liabilities, Convertible Redeemable Preferred Stock and Stockholders’ Equity




Current liabilities:




Accounts payable

$

44,965



$

36,640


Accrued expenses

43,227



48,380


Contract liability

50,309



58,529


Customer advances

10,187



12,477


Warrants liability

19,351



2,831


Current operating lease liabilities

6,823



7,024


Secured term note



12,644


Other current liabilities

2,617



5,750


Total current liabilities

177,479



184,275


Non-current operating lease liabilities

38,717



36,127


Non-current contract liabilities

3,050



4,156


Deferred tax liabilities

1,637



627


Senior secured convertible notes



192,895


Financing derivatives



11,300


Other non-current liabilities

19,990



19,600


Total liabilities

240,873



448,980


Commitments and contingencies




Convertible redeemable preferred stock, $0.001 par value; 82,527,609 and zero shares authorized, issued and outstanding as of June 30, 2021 and December 31, 2020, respectively; aggregate liquidation preference of $204,043 as of June 30, 2021

187,885




Stockholders’ equity:




Preferred stock, $0.001 par value; 7,472,391 and 5,000,000 shares authorized as of June 30, 2021 and December 31, 2020, respectively; no shares issued or outstanding as of June 30, 2021 or December 31, 2020




Common stock, $0.001 par value; 275,000,000 and 150,000,000 shares authorized as of June 30, 2021 and December 31, 2020, respectively; 88,936,873 shares issued and 82,172,077 shares outstanding as of June 30, 2021, and 79,703,342 shares issued and 72,938,546 shares outstanding as of December 31, 2020

82



73


Additional paid-in capital

1,652,731



1,621,986


Accumulated other comprehensive loss

(8,450)



(7,030)


Accumulated deficit

(1,215,758)



(1,156,055)


Treasury stock, at cost, 6,764,796 shares as of June 30, 2021 and December 31, 2020

(229,984)



(229,984)


Total stockholders’ equity

198,621



228,990


Total liabilities, convertible redeemable preferred stock and stockholders’ equity

$

627,379



$

677,970


 

COMSCORE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited)

(In thousands, except share and per share data)



Three Months Ended June 30,


Six Months Ended June 30,


2021


2020


2021


2020

Revenues

$

87,659



$

88,566



$

177,989



$

178,094










Cost of revenues (1) (2)

51,386



44,949



104,088



90,747


Selling and marketing (1) (2)

16,530



16,007



34,357



35,220


Research and development (1) (2)

10,132



9,765



20,485



19,901


General and administrative (1) (2)

14,246



13,741



28,714



29,284


Amortization of intangible assets

6,255



6,846



12,694



13,764


Impairment of right-of-use and long-lived assets







4,671


Total expenses from operations

98,549



91,308



200,338



193,587


Loss from operations

(10,890)



(2,742)



(22,349)



(15,493)


Other (expense) income, net

(6,508)



1,477



(14,782)



8,671


(Loss) gain from foreign currency transactions

(370)



(944)



704



(140)


Interest expense, net

(355)



(8,856)



(7,400)



(17,702)


Loss on extinguishment of debt





(9,629)




Loss before income taxes

(18,123)



(11,065)



(53,456)



(24,664)


Income tax (provision) benefit

(422)



664



(1,444)



1,079


Net loss

$

(18,545)



$

(10,401)



$

(54,900)



$

(23,585)


Net loss available to common stockholders:








Net loss

$

(18,545)



$

(10,401)



$

(54,900)



$

(23,585)


Convertible redeemable preferred stock dividends

(3,868)





(4,803)




Total net loss available to common stockholders

$

(22,413)



$

(10,401)



$

(59,703)



$

(23,585)


Net loss per common share:








Basic and diluted

$

(0.28)



$

(0.15)



$

(0.76)



$

(0.34)


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








Basic and diluted

81,427,971



70,554,326



78,813,987



70,340,658


Comprehensive loss:








Net loss

$

(18,545)



$

(10,401)



$

(54,900)



$

(23,585)


Other comprehensive loss:








Foreign currency cumulative translation adjustment

731



1,564



(1,420)



(1,309)


Total comprehensive loss

$

(17,814)



$

(8,837)



$

(56,320)



$

(24,894)










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










Three Months Ended June 30,


Six Months Ended June 30,


2021


2020


2021


2020

Cost of revenues

$

468



$

487



$

1,323



$

696


Selling and marketing

516



720



1,471



1,329


Research and development

350



375



992



431


General and administrative

1,851



764



4,336



2,548


Total stock-based compensation expense

$

3,185



$

2,346



$

8,122



$

5,004










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

 

COMSCORE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)



Six Months Ended June 30,


2021


2020

Operating activities:




Net loss

$

(54,900)



$

(23,585)


Adjustments to reconcile net loss to net cash provided by (used in) operating activities:




Change in fair value of warrants liability

16,520



(3,893)


Amortization of intangible assets

12,694



13,764


Loss on extinguishment of debt

9,629




Stock-based compensation expense

8,122



5,004


Depreciation

7,991



6,788


Non-cash interest expense on senior secured convertible notes

4,692




Non-cash operating lease expense

2,597



2,978


Accretion of debt discount

1,620



3,617


Deferred tax provision

967



324


Amortization expense of finance leases

941



784


Amortization of deferred financing costs

320



739


Bad debt (benefit) expense

(153)



1,590


Change in fair value of financing derivatives

(1,800)



(4,687)


Impairment of right-of-use and long-lived assets



4,671


Other

370



(6)


Changes in operating assets and liabilities:




Accounts receivable

5,336



5,836


Prepaid expenses and other assets

1,516



(779)


Accounts payable, accrued expenses and other liabilities

8,692



(13,948)


Contract liabilities and customer advances

(11,608)



2,330


Operating lease liabilities

(2,686)



(3,319)


Net cash provided by (used in) operating activities

10,860



(1,792)






Investing activities:




Capitalized internal-use software costs

(7,369)



(7,836)


Purchases of property and equipment

(354)



(45)


Net cash used in investing activities

(7,723)



(7,881)






Financing activities:




Principal payment and extinguishment costs on senior secured convertible notes

(204,014)




Principal payment and extinguishment costs on secured term note

(14,031)




Payments for dividends on convertible redeemable preferred stock

(4,760)




Principal payments on finance leases

(920)



(823)


Principal payments on software license arrangements

(228)



(155)


Revolving line of credit issuance costs

(68)




Payments for taxes related to net share settlement of equity awards

(38)



(68)


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

188,183




Net cash used in financing activities

(35,876)



(1,046)


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

(322)



(544)


Net decrease in cash, cash equivalents and restricted cash

(33,061)



(11,263)


Cash, cash equivalents and restricted cash at beginning of period

50,741



66,773


Cash, cash equivalents and restricted cash at end of period

$

17,680



$

55,510







As of June 30,


2021


2020

Cash and cash equivalents

$

16,659



$

35,899


Restricted cash

1,021



19,611


Total cash, cash equivalents and restricted cash

$

17,680



$

55,510


Reconciliation of Non-GAAP Financial Measures

The following table presents a reconciliation of net loss (GAAP) to adjusted EBITDA for each of the periods identified:


Three Months Ended June 30,


Six Months Ended June 30,

(In thousands)

2021 (Unaudited)


2020 (Unaudited)


2021 (Unaudited)


2020 (Unaudited)

Net loss (GAAP)

$

(18,545)



$

(10,401)



$

(54,900)



$

(23,585)










Amortization of intangible assets

6,255



6,846



12,694



13,764


Depreciation

3,937



3,404



7,991



6,788


Amortization expense of finance leases

498



394



941



784


Income tax provision (benefit)

422



(664)



1,444



(1,079)


Interest expense, net

355



8,856



7,400



17,702


EBITDA

(7,078)



8,435



(24,430)



14,374










Adjustments:








Stock-based compensation expense

3,185



2,346



8,122



5,004


Loss on extinguishment of debt





9,629




Impairment of right-of-use and long-lived assets







4,671


Other expense (income), net (1)

6,519



(1,542)



14,870



(8,434)


Adjusted EBITDA

$

2,626



$

9,239



$

8,191



$

15,615



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

The following table presents a reconciliation of net loss (GAAP) to non-GAAP net loss for each of the periods identified:


Three Months Ended June 30,


Six Months Ended June 30,

(In thousands)

2021 (Unaudited)


2020 (Unaudited)


2021 (Unaudited)


2020 (Unaudited)

Net loss (GAAP)

$

(18,545)



$

(10,401)



$

(54,900)



$

(23,585)










Adjustments:








Amortization of intangible assets

6,255



6,846



12,694



13,764


Stock-based compensation expense

3,185



2,346



8,122



5,004


Loss on extinguishment of debt





9,629




Impairment of right-of-use and long-lived assets







4,671


Other expense (income), net (1)

6,519



(1,542)



14,870



(8,434)


Non-GAAP net loss

$

(2,586)



$

(2,751)



$

(9,585)



$

(8,580)



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

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

Revenues

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


Three Months Ended June 30,





(In thousands)

2021

(Unaudited)


% of Revenue


2020

(Unaudited)


% of Revenue


$ Variance


% Variance

Ratings and Planning

$

62,418



71.2

%


$

63,779



72.0

%


$

(1,361)



(2.1)

%

Analytics and Optimization

17,764



20.3

%


16,894



19.1

%


870



5.1

%

Movies Reporting and Analytics

7,477



8.5

%


7,893



8.9

%


(416)



(5.3)

%

Total revenues

$

87,659



100.0

%


$

88,566



100.0

%


$

(907)



(1.0)

%




Six Months Ended June 30,





(In thousands)

2021

(Unaudited)


% of Revenue


2020

(Unaudited)


% of Revenue


$ Variance


% Variance

Ratings and Planning

$

128,224



72.1

%


$

127,300



71.5

%


$

924



0.7

%

Analytics and Optimization

35,465



19.9

%


32,395



18.2

%


3,070



9.5

%

Movies Reporting and Analytics

14,300



8.0

%


18,399



10.3

%


(4,099)



(22.3)

%

Total revenues

$

177,989



100.0

%


$

178,094



100.0

%


$

(105)



(0.1)

%

 

New comScore logo (PRNewsFoto/comScore, Inc.)

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/comscore-reports-second-quarter-2021-results-301351355.html

SOURCE Comscore