Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Comscore Reports Third Quarter 2022 Results By: Comscore, Inc. via Business Wire November 08, 2022 at 16:05 PM EST Revenue of $92.8 million, up 0.3% from Q3 2021 Net loss of $52.4 million versus net income of $2.0 million in Q3 2021 Adjusted EBITDA of $11.7 million, up 4.0% from Q3 2021 Updating 2022 revenue guidance and maintaining 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 September 30, 2022. Q3 2022 Financial Highlights Revenue for the third quarter was $92.8 million compared to $92.5 million in Q3 2021 Cross Platform Solutions revenue grew 14.0% year over year to $40.4 million, driven by local and national TV measurement and a continued rebound in Movies Digital Ad Solutions revenue declined 8.2% to $52.4 million due to slower ad spend, which impacted Activation and other digital products Net loss of $52.4 million compared to net income of $2.0 million in Q3 2021, resulting primarily from a non-cash goodwill impairment charge of $46.3 million and restructuring costs of $5.8 million in Q3 2022 Adjusted EBITDA of $11.7 million compared to $11.3 million in Q3 2021 Recent Business Developments Launched Comscore TV Pulse, which provides content measurement data within 48 hours nationally and to all 210 local markets Entered into two new currency partnerships – one with Dentsu that enables the agency network to shift local TV buying to a Comscore-based currency, supporting transactions on advanced audiences in all 210 markets, and the other with Fox Television Stations, which allows the local TV broadcaster to leverage a Comscore-based currency to support transactions on advanced audiences across its entire owned and operated footprint Expanded a multiyear contract with Scripps, which now includes using Comscore as currency for all Scripps local stations, adding 16 new markets to our existing relationship Partnered with FreeWheel to launch advanced Connected TV ("CTV") contextual targeting capabilities on Beeswax, FreeWheel's demand-side platform, which provides media buyers with access to Comscore's privacy-forward Predictive Audiences and CTV brand protection offering for premium video Released a new user interface for Comscore Campaign Ratings, which is now the only cross-platform campaign measurement product in the market that can provide deduplicated reach for display and video across desktop, mobile, linear, and CTV in a single report Extended Charter's endorsement of Comscore as its preferred local measurement provider to seven years (from five) with an option to extend for the full 10-year contract term "Since stepping into the CEO role in July, I’ve been laser focused on improving speed, execution and profitability. In the third quarter, we rounded out our executive team with leadership positions that I believe are critical to the success of Comscore. We committed to delivering faster data to our customers, and in September we rolled out our Comscore TV Pulse data with a delivery speed of 48 hours. We also announced a restructuring plan as a first step in becoming more cost efficient and better aligning our operating structure and resources to our strategic priorities. We continue to see momentum in our local and national television businesses, and even though the current economic environment is challenging for our industry, we are excited about what's ahead for Comscore," said Jon Carpenter, CEO of Comscore. Third Quarter Summary Results Revenue in the third quarter was $92.8 million, up 0.3% from $92.5 million in Q3 2021, driven by double-digit growth in Cross Platform Solutions revenue from local and national TV measurement and the continued rebound in our Movies business. We saw a decline in Digital Ad Solutions revenue from Q3 2021 primarily as a result of slower ad spend, which impacted Activation and other digital products. Our core operating expenses, which include cost of revenues, sales and marketing, research and development and general and administrative expenses, were $90.4 million, flat to $90.3 million in Q3 2021. We also incurred restructuring costs of $5.8 million in connection with the restructuring plan announced in September 2022. Due in part to a decline in our stock price and market capitalization, we performed an interim review of our goodwill at quarter-end, resulting in a non-cash goodwill impairment charge of $46.3 million as of September 30, 2022. This charge does not directly impact the Company's liquidity, cash flows, or future operations. Primarily due to the goodwill impairment charge and restructuring costs, net loss for the quarter was $52.4 million, compared to net income of $2.0 million in Q3 2021. After accounting for dividends on our convertible preferred stock, loss per share attributable to common shares was $(0.60), compared to a loss per share of $(0.02) in Q3 2021. Adjusted EBITDA for the quarter was $11.7 million, compared to $11.3 million in Q3 2021, resulting in adjusted EBITDA margins of 12.6% and 12.2%, 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, impairment of goodwill, restructuring costs, and other items as presented in the accompanying tables. Balance Sheet and Liquidity As of September 30, 2022, cash, cash equivalents and restricted cash totaled $25.5 million. Total debt principal, including $16.0 million in outstanding borrowings under our senior secured revolving credit agreement, was $20.0 million. 2022 Outlook Based on current trends and expectations, we are lowering our 2022 revenue growth estimate to low single digits and are reaffirming that our adjusted EBITDA margin is expected to exceed 9% for the year. We do not provide GAAP net (loss) income 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) income, on a forward-looking basis. Conference Call Information for Today, Tuesday, November 8, 2022 at 5:00 p.m. ET Management will host a conference call to discuss the results on Tuesday, November 8, 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, the impact of new customer contracts and partnerships on our business and revenue prospects, evolving economic and industry trends, currency opportunities, product development and innovation, and restructuring plans and cost-reduction initiatives. 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, including changes or declines in ad spending; 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, including the restructuring plan we announced in September 2022. 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) income, 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) income. These reconciliations should be carefully evaluated. COMSCORE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS As of As of September 30, 2022 December 31, 2021 (In thousands, except share and par value data) (Unaudited) Assets Current assets: Cash and cash equivalents $ 25,086 $ 21,854 Restricted cash 425 425 Accounts receivable, net of allowances of $677 and $1,173, respectively 48,223 72,059 Prepaid expenses and other current assets 15,207 14,769 Total current assets 88,941 109,107 Property and equipment, net 36,661 36,451 Operating right-of-use assets 25,422 29,186 Deferred tax assets 2,636 2,811 Intangible assets, net 19,622 39,945 Goodwill 386,245 435,711 Other non-current assets 11,546 10,263 Total assets $ 571,073 $ 663,474 Liabilities, Convertible Redeemable Preferred Stock and Stockholders' Equity Current liabilities: Accounts payable $ 28,763 $ 23,575 Accrued expenses 41,642 45,264 Contract liabilities 52,564 54,011 Customer advances 10,633 11,613 Current operating lease liabilities 7,667 7,538 Warrants liability 2,049 10,520 Other current liabilities 12,321 12,850 Total current liabilities 155,639 165,371 Non-current operating lease liabilities 31,184 36,055 Non-current portion of accrued data costs 23,230 16,005 Revolving line of credit 16,000 16,000 Deferred tax liabilities 2,145 2,103 Other non-current liabilities 13,035 16,879 Total liabilities 241,233 252,413 Commitments and contingencies Convertible redeemable preferred stock, $0.001 par value; 82,527,609 shares authorized, issued and outstanding as of September 30, 2022 and December 31, 2021; aggregate liquidation preference of $207,953 as of September 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 September 30, 2022 and December 31, 2021, respectively; no shares issued or outstanding as of September 30, 2022 or December 31, 2021 — — Common stock, $0.001 par value; 275,000,000 shares authorized as of September 30, 2022 and December 31, 2021; 98,774,405 shares issued and 92,009,609 shares outstanding as of September 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 1,690,609 1,683,883 Accumulated other comprehensive loss (21,736 ) (12,098 ) Accumulated deficit (1,297,026 ) (1,218,715 ) Treasury stock, at cost, 6,764,796 shares as of September 30, 2022 and December 31, 2021 (229,984 ) (229,984 ) Total stockholders' equity 141,955 223,176 Total liabilities, convertible redeemable preferred stock and stockholders' equity $ 571,073 $ 663,474 COMSCORE, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, (In thousands, except share and per share data) 2022 2021 2022 2021 Revenues $ 92,783 $ 92,487 $ 278,183 $ 270,476 Cost of revenues (1) (2) 51,530 49,179 155,915 153,267 Selling and marketing (1) (2) 17,199 15,212 51,850 49,569 Research and development (1) (2) 8,741 9,051 28,190 29,536 General and administrative (1) (2) 12,899 16,895 48,119 45,609 Amortization of intangible assets 6,772 6,172 20,323 18,866 Restructuring 5,784 — 5,784 — Impairment of goodwill 46,300 — 46,300 — Total expenses from operations 149,225 96,509 356,481 296,847 Loss from operations (56,442 ) (4,022 ) (78,298 ) (26,371 ) Other income (expense), net 1,477 5,713 8,467 (9,069 ) Gain from foreign currency transactions 2,781 1,180 5,728 1,884 Interest expense, net (284 ) (169 ) (660 ) (7,569 ) Loss on extinguishment of debt — — — (9,629 ) (Loss) income before income taxes (52,468 ) 2,702 (64,763 ) (50,754 ) Income tax benefit (provision) 86 (722 ) (1,945 ) (2,166 ) Net (loss) income $ (52,382 ) $ 1,980 $ (66,708 ) $ (52,920 ) Net loss available to common stockholders: Net (loss) income $ (52,382 ) $ 1,980 $ (66,708 ) $ (52,920 ) Convertible redeemable preferred stock dividends (3,910 ) (3,910 ) (11,603 ) (8,713 ) Total net loss available to common stockholders: $ (56,292 ) $ (1,930 ) $ (78,311 ) $ (61,633 ) Net loss per common share: Basic and diluted $ (0.60 ) $ (0.02 ) $ (0.85 ) $ (0.77 ) Weighted-average number of shares used in per share calculation - Common Stock: Basic and diluted 93,347,017 82,185,009 92,380,984 79,951,857 Comprehensive (loss) income: Net (loss) income $ (52,382 ) $ 1,980 $ (66,708 ) $ (52,920 ) Other comprehensive loss: Foreign currency cumulative translation adjustment (4,553 ) (1,917 ) (9,638 ) (3,337 ) Total comprehensive (loss) income $ (56,935 ) $ 63 $ (76,346 ) $ (56,257 ) (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 September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Cost of revenues $ 155 $ 231 $ 877 $ 1,554 Selling and marketing 132 208 804 1,679 Research and development 116 170 627 1,162 General and administrative 1,013 2,425 4,906 6,761 Total stock-based compensation expense $ 1,416 $ 3,034 $ 7,214 $ 11,156 COMSCORE, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Nine Months Ended September 30, (In thousands) 2022 2021 Operating activities: Net loss $ (66,708 ) $ (52,920 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Amortization of intangible assets 20,323 18,866 Depreciation 12,542 11,873 Stock-based compensation expense 7,214 11,156 Non-cash operating lease expense 4,540 3,952 Change in fair value of contingent consideration liability 2,447 — Amortization expense of finance leases 1,875 1,485 Deferred tax (benefit) provision (90 ) 652 Change in fair value of warrants liability (8,471 ) 10,938 Loss on extinguishment of debt — 9,629 Non-cash interest expense on senior secured convertible notes — 4,692 Impairment of goodwill 46,300 — Other 1,456 660 Changes in operating assets and liabilities: Accounts receivable 22,143 (12,661 ) Prepaid expenses and other assets (1,081 ) 283 Accounts payable, accrued expenses and other liabilities 3,159 6,632 Contract liabilities and customer advances (3,448 ) (12,563 ) Operating lease liabilities (5,665 ) (3,795 ) Net cash provided by (used in) operating activities 36,536 (1,121 ) Investing activities: Capitalized internal-use software costs (12,402 ) (10,925 ) Purchases of property and equipment (823 ) (744 ) Net cash used in investing activities (13,225 ) (11,669 ) Financing activities: Payments for dividends on convertible redeemable preferred stock (15,512 ) (4,760 ) Principal payments on finance leases (2,004 ) (1,475 ) 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 borrowing on revolving line of credit — 16,000 Proceeds from issuance of convertible redeemable preferred stock, net of issuance costs — 188,183 Other (61 ) (429 ) Net cash used in financing activities (17,577 ) (20,526 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash (2,502 ) (691 ) Net increase (decrease) in cash, cash equivalents and restricted cash 3,232 (34,007 ) Cash, cash equivalents and restricted cash at beginning of period 22,279 50,741 Cash, cash equivalents and restricted cash at end of period $ 25,511 $ 16,734 As of September 30, 2022 2021 Cash and cash equivalents $ 25,086 $ 15,940 Restricted cash 425 794 Total cash, cash equivalents and restricted cash $ 25,511 $ 16,734 Reconciliation of Non-GAAP Financial Measures The following table presents a reconciliation of GAAP net (loss) income to non-GAAP adjusted EBITDA and adjusted EBITDA margin for each of the periods identified: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2022 (Unaudited) 2021 (Unaudited) 2022 (Unaudited) 2021 (Unaudited) GAAP net (loss) income $ (52,382 ) $ 1,980 $ (66,708 ) $ (52,920 ) Amortization of intangible assets 6,772 6,172 20,323 18,866 Depreciation 4,186 3,882 12,542 11,873 Amortization expense of finance leases 515 543 1,875 1,484 Income tax (benefit) provision (86 ) 722 1,945 2,166 Interest expense, net 284 169 660 7,569 EBITDA (40,711 ) 13,468 (29,363 ) (10,962 ) Adjustments: Stock-based compensation expense 1,416 3,034 7,214 11,156 Amortization of cloud-computing implementation costs 358 342 1,076 342 Change in fair value of contingent consideration liability 44 — 2,447 — Loss on extinguishment of debt — — — 9,629 Restructuring 5,784 — 5,784 — Impairment of goodwill 46,300 — 46,300 — Other (income) expense, net (1) (1,476 ) (5,582 ) (8,464 ) 9,288 Non-GAAP adjusted EBITDA $ 11,715 $ 11,262 $ 24,994 $ 19,453 Non-GAAP adjusted EBITDA margin (2) 12.6 % 12.2 % 9.0 % 7.2 % (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) Income. (2) Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue reported on our Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income for the applicable period. We do not provide GAAP net (loss) income 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) income, on a forward-looking basis. Revenues Revenues from our two offerings of products and services are as follows: Three Months Ended September 30, (In thousands) 2022 (Unaudited) % of Revenue 2021 (Unaudited) % of Revenue $ Variance % Variance Digital Ad Solutions $ 52,360 56.4 % $ 57,039 61.7 % $ (4,679 ) (8.2 ) % Cross Platform Solutions(1) 40,423 43.6 % 35,448 38.3 % 4,975 14.0 % Total revenues $ 92,783 100.0 % $ 92,487 100.0 % $ 296 0.3 % (1) Cross Platform Solutions revenue includes revenue from our movies business, which grew from $7.9 million in the third quarter of 2021 to $8.7 million in the third quarter of 2022. Nine Months Ended September 30, (In thousands) 2022 (Unaudited) % of Revenue 2021 (Unaudited) % of Revenue $ Variance % Variance Digital Ad Solutions $ 157,127 56.5 % $ 162,581 60.1 % $ (5,454 ) (3.4 ) % Cross Platform Solutions(1) 121,056 43.5 % 107,895 39.9 % 13,161 12.2 % Total revenues $ 278,183 100.0 % $ 270,476 100.0 % $ 7,707 2.8 % (1) Cross Platform Solutions revenue includes revenue from our movies business, which grew from $22.2 million in the first nine months of 2021 to $25.3 million in the first nine months of 2022. View source version on businesswire.com: https://www.businesswire.com/news/home/20221108006183/en/Contacts Press Bill Daddi Daddi Brand Communications 917-620-3717 press@comscore.com Investors John Tinker Comscore, Inc. 212-203-2129 jtinker@comscore.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Comscore Reports Third Quarter 2022 Results By: Comscore, Inc. via Business Wire November 08, 2022 at 16:05 PM EST Revenue of $92.8 million, up 0.3% from Q3 2021 Net loss of $52.4 million versus net income of $2.0 million in Q3 2021 Adjusted EBITDA of $11.7 million, up 4.0% from Q3 2021 Updating 2022 revenue guidance and maintaining 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 September 30, 2022. Q3 2022 Financial Highlights Revenue for the third quarter was $92.8 million compared to $92.5 million in Q3 2021 Cross Platform Solutions revenue grew 14.0% year over year to $40.4 million, driven by local and national TV measurement and a continued rebound in Movies Digital Ad Solutions revenue declined 8.2% to $52.4 million due to slower ad spend, which impacted Activation and other digital products Net loss of $52.4 million compared to net income of $2.0 million in Q3 2021, resulting primarily from a non-cash goodwill impairment charge of $46.3 million and restructuring costs of $5.8 million in Q3 2022 Adjusted EBITDA of $11.7 million compared to $11.3 million in Q3 2021 Recent Business Developments Launched Comscore TV Pulse, which provides content measurement data within 48 hours nationally and to all 210 local markets Entered into two new currency partnerships – one with Dentsu that enables the agency network to shift local TV buying to a Comscore-based currency, supporting transactions on advanced audiences in all 210 markets, and the other with Fox Television Stations, which allows the local TV broadcaster to leverage a Comscore-based currency to support transactions on advanced audiences across its entire owned and operated footprint Expanded a multiyear contract with Scripps, which now includes using Comscore as currency for all Scripps local stations, adding 16 new markets to our existing relationship Partnered with FreeWheel to launch advanced Connected TV ("CTV") contextual targeting capabilities on Beeswax, FreeWheel's demand-side platform, which provides media buyers with access to Comscore's privacy-forward Predictive Audiences and CTV brand protection offering for premium video Released a new user interface for Comscore Campaign Ratings, which is now the only cross-platform campaign measurement product in the market that can provide deduplicated reach for display and video across desktop, mobile, linear, and CTV in a single report Extended Charter's endorsement of Comscore as its preferred local measurement provider to seven years (from five) with an option to extend for the full 10-year contract term "Since stepping into the CEO role in July, I’ve been laser focused on improving speed, execution and profitability. In the third quarter, we rounded out our executive team with leadership positions that I believe are critical to the success of Comscore. We committed to delivering faster data to our customers, and in September we rolled out our Comscore TV Pulse data with a delivery speed of 48 hours. We also announced a restructuring plan as a first step in becoming more cost efficient and better aligning our operating structure and resources to our strategic priorities. We continue to see momentum in our local and national television businesses, and even though the current economic environment is challenging for our industry, we are excited about what's ahead for Comscore," said Jon Carpenter, CEO of Comscore. Third Quarter Summary Results Revenue in the third quarter was $92.8 million, up 0.3% from $92.5 million in Q3 2021, driven by double-digit growth in Cross Platform Solutions revenue from local and national TV measurement and the continued rebound in our Movies business. We saw a decline in Digital Ad Solutions revenue from Q3 2021 primarily as a result of slower ad spend, which impacted Activation and other digital products. Our core operating expenses, which include cost of revenues, sales and marketing, research and development and general and administrative expenses, were $90.4 million, flat to $90.3 million in Q3 2021. We also incurred restructuring costs of $5.8 million in connection with the restructuring plan announced in September 2022. Due in part to a decline in our stock price and market capitalization, we performed an interim review of our goodwill at quarter-end, resulting in a non-cash goodwill impairment charge of $46.3 million as of September 30, 2022. This charge does not directly impact the Company's liquidity, cash flows, or future operations. Primarily due to the goodwill impairment charge and restructuring costs, net loss for the quarter was $52.4 million, compared to net income of $2.0 million in Q3 2021. After accounting for dividends on our convertible preferred stock, loss per share attributable to common shares was $(0.60), compared to a loss per share of $(0.02) in Q3 2021. Adjusted EBITDA for the quarter was $11.7 million, compared to $11.3 million in Q3 2021, resulting in adjusted EBITDA margins of 12.6% and 12.2%, 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, impairment of goodwill, restructuring costs, and other items as presented in the accompanying tables. Balance Sheet and Liquidity As of September 30, 2022, cash, cash equivalents and restricted cash totaled $25.5 million. Total debt principal, including $16.0 million in outstanding borrowings under our senior secured revolving credit agreement, was $20.0 million. 2022 Outlook Based on current trends and expectations, we are lowering our 2022 revenue growth estimate to low single digits and are reaffirming that our adjusted EBITDA margin is expected to exceed 9% for the year. We do not provide GAAP net (loss) income 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) income, on a forward-looking basis. Conference Call Information for Today, Tuesday, November 8, 2022 at 5:00 p.m. ET Management will host a conference call to discuss the results on Tuesday, November 8, 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, the impact of new customer contracts and partnerships on our business and revenue prospects, evolving economic and industry trends, currency opportunities, product development and innovation, and restructuring plans and cost-reduction initiatives. 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, including changes or declines in ad spending; 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, including the restructuring plan we announced in September 2022. 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) income, 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) income. These reconciliations should be carefully evaluated. COMSCORE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS As of As of September 30, 2022 December 31, 2021 (In thousands, except share and par value data) (Unaudited) Assets Current assets: Cash and cash equivalents $ 25,086 $ 21,854 Restricted cash 425 425 Accounts receivable, net of allowances of $677 and $1,173, respectively 48,223 72,059 Prepaid expenses and other current assets 15,207 14,769 Total current assets 88,941 109,107 Property and equipment, net 36,661 36,451 Operating right-of-use assets 25,422 29,186 Deferred tax assets 2,636 2,811 Intangible assets, net 19,622 39,945 Goodwill 386,245 435,711 Other non-current assets 11,546 10,263 Total assets $ 571,073 $ 663,474 Liabilities, Convertible Redeemable Preferred Stock and Stockholders' Equity Current liabilities: Accounts payable $ 28,763 $ 23,575 Accrued expenses 41,642 45,264 Contract liabilities 52,564 54,011 Customer advances 10,633 11,613 Current operating lease liabilities 7,667 7,538 Warrants liability 2,049 10,520 Other current liabilities 12,321 12,850 Total current liabilities 155,639 165,371 Non-current operating lease liabilities 31,184 36,055 Non-current portion of accrued data costs 23,230 16,005 Revolving line of credit 16,000 16,000 Deferred tax liabilities 2,145 2,103 Other non-current liabilities 13,035 16,879 Total liabilities 241,233 252,413 Commitments and contingencies Convertible redeemable preferred stock, $0.001 par value; 82,527,609 shares authorized, issued and outstanding as of September 30, 2022 and December 31, 2021; aggregate liquidation preference of $207,953 as of September 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 September 30, 2022 and December 31, 2021, respectively; no shares issued or outstanding as of September 30, 2022 or December 31, 2021 — — Common stock, $0.001 par value; 275,000,000 shares authorized as of September 30, 2022 and December 31, 2021; 98,774,405 shares issued and 92,009,609 shares outstanding as of September 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 1,690,609 1,683,883 Accumulated other comprehensive loss (21,736 ) (12,098 ) Accumulated deficit (1,297,026 ) (1,218,715 ) Treasury stock, at cost, 6,764,796 shares as of September 30, 2022 and December 31, 2021 (229,984 ) (229,984 ) Total stockholders' equity 141,955 223,176 Total liabilities, convertible redeemable preferred stock and stockholders' equity $ 571,073 $ 663,474 COMSCORE, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, (In thousands, except share and per share data) 2022 2021 2022 2021 Revenues $ 92,783 $ 92,487 $ 278,183 $ 270,476 Cost of revenues (1) (2) 51,530 49,179 155,915 153,267 Selling and marketing (1) (2) 17,199 15,212 51,850 49,569 Research and development (1) (2) 8,741 9,051 28,190 29,536 General and administrative (1) (2) 12,899 16,895 48,119 45,609 Amortization of intangible assets 6,772 6,172 20,323 18,866 Restructuring 5,784 — 5,784 — Impairment of goodwill 46,300 — 46,300 — Total expenses from operations 149,225 96,509 356,481 296,847 Loss from operations (56,442 ) (4,022 ) (78,298 ) (26,371 ) Other income (expense), net 1,477 5,713 8,467 (9,069 ) Gain from foreign currency transactions 2,781 1,180 5,728 1,884 Interest expense, net (284 ) (169 ) (660 ) (7,569 ) Loss on extinguishment of debt — — — (9,629 ) (Loss) income before income taxes (52,468 ) 2,702 (64,763 ) (50,754 ) Income tax benefit (provision) 86 (722 ) (1,945 ) (2,166 ) Net (loss) income $ (52,382 ) $ 1,980 $ (66,708 ) $ (52,920 ) Net loss available to common stockholders: Net (loss) income $ (52,382 ) $ 1,980 $ (66,708 ) $ (52,920 ) Convertible redeemable preferred stock dividends (3,910 ) (3,910 ) (11,603 ) (8,713 ) Total net loss available to common stockholders: $ (56,292 ) $ (1,930 ) $ (78,311 ) $ (61,633 ) Net loss per common share: Basic and diluted $ (0.60 ) $ (0.02 ) $ (0.85 ) $ (0.77 ) Weighted-average number of shares used in per share calculation - Common Stock: Basic and diluted 93,347,017 82,185,009 92,380,984 79,951,857 Comprehensive (loss) income: Net (loss) income $ (52,382 ) $ 1,980 $ (66,708 ) $ (52,920 ) Other comprehensive loss: Foreign currency cumulative translation adjustment (4,553 ) (1,917 ) (9,638 ) (3,337 ) Total comprehensive (loss) income $ (56,935 ) $ 63 $ (76,346 ) $ (56,257 ) (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 September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Cost of revenues $ 155 $ 231 $ 877 $ 1,554 Selling and marketing 132 208 804 1,679 Research and development 116 170 627 1,162 General and administrative 1,013 2,425 4,906 6,761 Total stock-based compensation expense $ 1,416 $ 3,034 $ 7,214 $ 11,156 COMSCORE, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Nine Months Ended September 30, (In thousands) 2022 2021 Operating activities: Net loss $ (66,708 ) $ (52,920 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Amortization of intangible assets 20,323 18,866 Depreciation 12,542 11,873 Stock-based compensation expense 7,214 11,156 Non-cash operating lease expense 4,540 3,952 Change in fair value of contingent consideration liability 2,447 — Amortization expense of finance leases 1,875 1,485 Deferred tax (benefit) provision (90 ) 652 Change in fair value of warrants liability (8,471 ) 10,938 Loss on extinguishment of debt — 9,629 Non-cash interest expense on senior secured convertible notes — 4,692 Impairment of goodwill 46,300 — Other 1,456 660 Changes in operating assets and liabilities: Accounts receivable 22,143 (12,661 ) Prepaid expenses and other assets (1,081 ) 283 Accounts payable, accrued expenses and other liabilities 3,159 6,632 Contract liabilities and customer advances (3,448 ) (12,563 ) Operating lease liabilities (5,665 ) (3,795 ) Net cash provided by (used in) operating activities 36,536 (1,121 ) Investing activities: Capitalized internal-use software costs (12,402 ) (10,925 ) Purchases of property and equipment (823 ) (744 ) Net cash used in investing activities (13,225 ) (11,669 ) Financing activities: Payments for dividends on convertible redeemable preferred stock (15,512 ) (4,760 ) Principal payments on finance leases (2,004 ) (1,475 ) 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 borrowing on revolving line of credit — 16,000 Proceeds from issuance of convertible redeemable preferred stock, net of issuance costs — 188,183 Other (61 ) (429 ) Net cash used in financing activities (17,577 ) (20,526 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash (2,502 ) (691 ) Net increase (decrease) in cash, cash equivalents and restricted cash 3,232 (34,007 ) Cash, cash equivalents and restricted cash at beginning of period 22,279 50,741 Cash, cash equivalents and restricted cash at end of period $ 25,511 $ 16,734 As of September 30, 2022 2021 Cash and cash equivalents $ 25,086 $ 15,940 Restricted cash 425 794 Total cash, cash equivalents and restricted cash $ 25,511 $ 16,734 Reconciliation of Non-GAAP Financial Measures The following table presents a reconciliation of GAAP net (loss) income to non-GAAP adjusted EBITDA and adjusted EBITDA margin for each of the periods identified: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2022 (Unaudited) 2021 (Unaudited) 2022 (Unaudited) 2021 (Unaudited) GAAP net (loss) income $ (52,382 ) $ 1,980 $ (66,708 ) $ (52,920 ) Amortization of intangible assets 6,772 6,172 20,323 18,866 Depreciation 4,186 3,882 12,542 11,873 Amortization expense of finance leases 515 543 1,875 1,484 Income tax (benefit) provision (86 ) 722 1,945 2,166 Interest expense, net 284 169 660 7,569 EBITDA (40,711 ) 13,468 (29,363 ) (10,962 ) Adjustments: Stock-based compensation expense 1,416 3,034 7,214 11,156 Amortization of cloud-computing implementation costs 358 342 1,076 342 Change in fair value of contingent consideration liability 44 — 2,447 — Loss on extinguishment of debt — — — 9,629 Restructuring 5,784 — 5,784 — Impairment of goodwill 46,300 — 46,300 — Other (income) expense, net (1) (1,476 ) (5,582 ) (8,464 ) 9,288 Non-GAAP adjusted EBITDA $ 11,715 $ 11,262 $ 24,994 $ 19,453 Non-GAAP adjusted EBITDA margin (2) 12.6 % 12.2 % 9.0 % 7.2 % (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) Income. (2) Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue reported on our Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income for the applicable period. We do not provide GAAP net (loss) income 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) income, on a forward-looking basis. Revenues Revenues from our two offerings of products and services are as follows: Three Months Ended September 30, (In thousands) 2022 (Unaudited) % of Revenue 2021 (Unaudited) % of Revenue $ Variance % Variance Digital Ad Solutions $ 52,360 56.4 % $ 57,039 61.7 % $ (4,679 ) (8.2 ) % Cross Platform Solutions(1) 40,423 43.6 % 35,448 38.3 % 4,975 14.0 % Total revenues $ 92,783 100.0 % $ 92,487 100.0 % $ 296 0.3 % (1) Cross Platform Solutions revenue includes revenue from our movies business, which grew from $7.9 million in the third quarter of 2021 to $8.7 million in the third quarter of 2022. Nine Months Ended September 30, (In thousands) 2022 (Unaudited) % of Revenue 2021 (Unaudited) % of Revenue $ Variance % Variance Digital Ad Solutions $ 157,127 56.5 % $ 162,581 60.1 % $ (5,454 ) (3.4 ) % Cross Platform Solutions(1) 121,056 43.5 % 107,895 39.9 % 13,161 12.2 % Total revenues $ 278,183 100.0 % $ 270,476 100.0 % $ 7,707 2.8 % (1) Cross Platform Solutions revenue includes revenue from our movies business, which grew from $22.2 million in the first nine months of 2021 to $25.3 million in the first nine months of 2022. View source version on businesswire.com: https://www.businesswire.com/news/home/20221108006183/en/Contacts Press Bill Daddi Daddi Brand Communications 917-620-3717 press@comscore.com Investors John Tinker Comscore, Inc. 212-203-2129 jtinker@comscore.com
Revenue of $92.8 million, up 0.3% from Q3 2021 Net loss of $52.4 million versus net income of $2.0 million in Q3 2021 Adjusted EBITDA of $11.7 million, up 4.0% from Q3 2021 Updating 2022 revenue guidance and maintaining 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 September 30, 2022. Q3 2022 Financial Highlights Revenue for the third quarter was $92.8 million compared to $92.5 million in Q3 2021 Cross Platform Solutions revenue grew 14.0% year over year to $40.4 million, driven by local and national TV measurement and a continued rebound in Movies Digital Ad Solutions revenue declined 8.2% to $52.4 million due to slower ad spend, which impacted Activation and other digital products Net loss of $52.4 million compared to net income of $2.0 million in Q3 2021, resulting primarily from a non-cash goodwill impairment charge of $46.3 million and restructuring costs of $5.8 million in Q3 2022 Adjusted EBITDA of $11.7 million compared to $11.3 million in Q3 2021 Recent Business Developments Launched Comscore TV Pulse, which provides content measurement data within 48 hours nationally and to all 210 local markets Entered into two new currency partnerships – one with Dentsu that enables the agency network to shift local TV buying to a Comscore-based currency, supporting transactions on advanced audiences in all 210 markets, and the other with Fox Television Stations, which allows the local TV broadcaster to leverage a Comscore-based currency to support transactions on advanced audiences across its entire owned and operated footprint Expanded a multiyear contract with Scripps, which now includes using Comscore as currency for all Scripps local stations, adding 16 new markets to our existing relationship Partnered with FreeWheel to launch advanced Connected TV ("CTV") contextual targeting capabilities on Beeswax, FreeWheel's demand-side platform, which provides media buyers with access to Comscore's privacy-forward Predictive Audiences and CTV brand protection offering for premium video Released a new user interface for Comscore Campaign Ratings, which is now the only cross-platform campaign measurement product in the market that can provide deduplicated reach for display and video across desktop, mobile, linear, and CTV in a single report Extended Charter's endorsement of Comscore as its preferred local measurement provider to seven years (from five) with an option to extend for the full 10-year contract term "Since stepping into the CEO role in July, I’ve been laser focused on improving speed, execution and profitability. In the third quarter, we rounded out our executive team with leadership positions that I believe are critical to the success of Comscore. We committed to delivering faster data to our customers, and in September we rolled out our Comscore TV Pulse data with a delivery speed of 48 hours. We also announced a restructuring plan as a first step in becoming more cost efficient and better aligning our operating structure and resources to our strategic priorities. We continue to see momentum in our local and national television businesses, and even though the current economic environment is challenging for our industry, we are excited about what's ahead for Comscore," said Jon Carpenter, CEO of Comscore. Third Quarter Summary Results Revenue in the third quarter was $92.8 million, up 0.3% from $92.5 million in Q3 2021, driven by double-digit growth in Cross Platform Solutions revenue from local and national TV measurement and the continued rebound in our Movies business. We saw a decline in Digital Ad Solutions revenue from Q3 2021 primarily as a result of slower ad spend, which impacted Activation and other digital products. Our core operating expenses, which include cost of revenues, sales and marketing, research and development and general and administrative expenses, were $90.4 million, flat to $90.3 million in Q3 2021. We also incurred restructuring costs of $5.8 million in connection with the restructuring plan announced in September 2022. Due in part to a decline in our stock price and market capitalization, we performed an interim review of our goodwill at quarter-end, resulting in a non-cash goodwill impairment charge of $46.3 million as of September 30, 2022. This charge does not directly impact the Company's liquidity, cash flows, or future operations. Primarily due to the goodwill impairment charge and restructuring costs, net loss for the quarter was $52.4 million, compared to net income of $2.0 million in Q3 2021. After accounting for dividends on our convertible preferred stock, loss per share attributable to common shares was $(0.60), compared to a loss per share of $(0.02) in Q3 2021. Adjusted EBITDA for the quarter was $11.7 million, compared to $11.3 million in Q3 2021, resulting in adjusted EBITDA margins of 12.6% and 12.2%, 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, impairment of goodwill, restructuring costs, and other items as presented in the accompanying tables. Balance Sheet and Liquidity As of September 30, 2022, cash, cash equivalents and restricted cash totaled $25.5 million. Total debt principal, including $16.0 million in outstanding borrowings under our senior secured revolving credit agreement, was $20.0 million. 2022 Outlook Based on current trends and expectations, we are lowering our 2022 revenue growth estimate to low single digits and are reaffirming that our adjusted EBITDA margin is expected to exceed 9% for the year. We do not provide GAAP net (loss) income 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) income, on a forward-looking basis. Conference Call Information for Today, Tuesday, November 8, 2022 at 5:00 p.m. ET Management will host a conference call to discuss the results on Tuesday, November 8, 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, the impact of new customer contracts and partnerships on our business and revenue prospects, evolving economic and industry trends, currency opportunities, product development and innovation, and restructuring plans and cost-reduction initiatives. 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, including changes or declines in ad spending; 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, including the restructuring plan we announced in September 2022. 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) income, 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) income. These reconciliations should be carefully evaluated. COMSCORE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS As of As of September 30, 2022 December 31, 2021 (In thousands, except share and par value data) (Unaudited) Assets Current assets: Cash and cash equivalents $ 25,086 $ 21,854 Restricted cash 425 425 Accounts receivable, net of allowances of $677 and $1,173, respectively 48,223 72,059 Prepaid expenses and other current assets 15,207 14,769 Total current assets 88,941 109,107 Property and equipment, net 36,661 36,451 Operating right-of-use assets 25,422 29,186 Deferred tax assets 2,636 2,811 Intangible assets, net 19,622 39,945 Goodwill 386,245 435,711 Other non-current assets 11,546 10,263 Total assets $ 571,073 $ 663,474 Liabilities, Convertible Redeemable Preferred Stock and Stockholders' Equity Current liabilities: Accounts payable $ 28,763 $ 23,575 Accrued expenses 41,642 45,264 Contract liabilities 52,564 54,011 Customer advances 10,633 11,613 Current operating lease liabilities 7,667 7,538 Warrants liability 2,049 10,520 Other current liabilities 12,321 12,850 Total current liabilities 155,639 165,371 Non-current operating lease liabilities 31,184 36,055 Non-current portion of accrued data costs 23,230 16,005 Revolving line of credit 16,000 16,000 Deferred tax liabilities 2,145 2,103 Other non-current liabilities 13,035 16,879 Total liabilities 241,233 252,413 Commitments and contingencies Convertible redeemable preferred stock, $0.001 par value; 82,527,609 shares authorized, issued and outstanding as of September 30, 2022 and December 31, 2021; aggregate liquidation preference of $207,953 as of September 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 September 30, 2022 and December 31, 2021, respectively; no shares issued or outstanding as of September 30, 2022 or December 31, 2021 — — Common stock, $0.001 par value; 275,000,000 shares authorized as of September 30, 2022 and December 31, 2021; 98,774,405 shares issued and 92,009,609 shares outstanding as of September 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 1,690,609 1,683,883 Accumulated other comprehensive loss (21,736 ) (12,098 ) Accumulated deficit (1,297,026 ) (1,218,715 ) Treasury stock, at cost, 6,764,796 shares as of September 30, 2022 and December 31, 2021 (229,984 ) (229,984 ) Total stockholders' equity 141,955 223,176 Total liabilities, convertible redeemable preferred stock and stockholders' equity $ 571,073 $ 663,474 COMSCORE, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, (In thousands, except share and per share data) 2022 2021 2022 2021 Revenues $ 92,783 $ 92,487 $ 278,183 $ 270,476 Cost of revenues (1) (2) 51,530 49,179 155,915 153,267 Selling and marketing (1) (2) 17,199 15,212 51,850 49,569 Research and development (1) (2) 8,741 9,051 28,190 29,536 General and administrative (1) (2) 12,899 16,895 48,119 45,609 Amortization of intangible assets 6,772 6,172 20,323 18,866 Restructuring 5,784 — 5,784 — Impairment of goodwill 46,300 — 46,300 — Total expenses from operations 149,225 96,509 356,481 296,847 Loss from operations (56,442 ) (4,022 ) (78,298 ) (26,371 ) Other income (expense), net 1,477 5,713 8,467 (9,069 ) Gain from foreign currency transactions 2,781 1,180 5,728 1,884 Interest expense, net (284 ) (169 ) (660 ) (7,569 ) Loss on extinguishment of debt — — — (9,629 ) (Loss) income before income taxes (52,468 ) 2,702 (64,763 ) (50,754 ) Income tax benefit (provision) 86 (722 ) (1,945 ) (2,166 ) Net (loss) income $ (52,382 ) $ 1,980 $ (66,708 ) $ (52,920 ) Net loss available to common stockholders: Net (loss) income $ (52,382 ) $ 1,980 $ (66,708 ) $ (52,920 ) Convertible redeemable preferred stock dividends (3,910 ) (3,910 ) (11,603 ) (8,713 ) Total net loss available to common stockholders: $ (56,292 ) $ (1,930 ) $ (78,311 ) $ (61,633 ) Net loss per common share: Basic and diluted $ (0.60 ) $ (0.02 ) $ (0.85 ) $ (0.77 ) Weighted-average number of shares used in per share calculation - Common Stock: Basic and diluted 93,347,017 82,185,009 92,380,984 79,951,857 Comprehensive (loss) income: Net (loss) income $ (52,382 ) $ 1,980 $ (66,708 ) $ (52,920 ) Other comprehensive loss: Foreign currency cumulative translation adjustment (4,553 ) (1,917 ) (9,638 ) (3,337 ) Total comprehensive (loss) income $ (56,935 ) $ 63 $ (76,346 ) $ (56,257 ) (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 September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Cost of revenues $ 155 $ 231 $ 877 $ 1,554 Selling and marketing 132 208 804 1,679 Research and development 116 170 627 1,162 General and administrative 1,013 2,425 4,906 6,761 Total stock-based compensation expense $ 1,416 $ 3,034 $ 7,214 $ 11,156 COMSCORE, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Nine Months Ended September 30, (In thousands) 2022 2021 Operating activities: Net loss $ (66,708 ) $ (52,920 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Amortization of intangible assets 20,323 18,866 Depreciation 12,542 11,873 Stock-based compensation expense 7,214 11,156 Non-cash operating lease expense 4,540 3,952 Change in fair value of contingent consideration liability 2,447 — Amortization expense of finance leases 1,875 1,485 Deferred tax (benefit) provision (90 ) 652 Change in fair value of warrants liability (8,471 ) 10,938 Loss on extinguishment of debt — 9,629 Non-cash interest expense on senior secured convertible notes — 4,692 Impairment of goodwill 46,300 — Other 1,456 660 Changes in operating assets and liabilities: Accounts receivable 22,143 (12,661 ) Prepaid expenses and other assets (1,081 ) 283 Accounts payable, accrued expenses and other liabilities 3,159 6,632 Contract liabilities and customer advances (3,448 ) (12,563 ) Operating lease liabilities (5,665 ) (3,795 ) Net cash provided by (used in) operating activities 36,536 (1,121 ) Investing activities: Capitalized internal-use software costs (12,402 ) (10,925 ) Purchases of property and equipment (823 ) (744 ) Net cash used in investing activities (13,225 ) (11,669 ) Financing activities: Payments for dividends on convertible redeemable preferred stock (15,512 ) (4,760 ) Principal payments on finance leases (2,004 ) (1,475 ) 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 borrowing on revolving line of credit — 16,000 Proceeds from issuance of convertible redeemable preferred stock, net of issuance costs — 188,183 Other (61 ) (429 ) Net cash used in financing activities (17,577 ) (20,526 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash (2,502 ) (691 ) Net increase (decrease) in cash, cash equivalents and restricted cash 3,232 (34,007 ) Cash, cash equivalents and restricted cash at beginning of period 22,279 50,741 Cash, cash equivalents and restricted cash at end of period $ 25,511 $ 16,734 As of September 30, 2022 2021 Cash and cash equivalents $ 25,086 $ 15,940 Restricted cash 425 794 Total cash, cash equivalents and restricted cash $ 25,511 $ 16,734 Reconciliation of Non-GAAP Financial Measures The following table presents a reconciliation of GAAP net (loss) income to non-GAAP adjusted EBITDA and adjusted EBITDA margin for each of the periods identified: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2022 (Unaudited) 2021 (Unaudited) 2022 (Unaudited) 2021 (Unaudited) GAAP net (loss) income $ (52,382 ) $ 1,980 $ (66,708 ) $ (52,920 ) Amortization of intangible assets 6,772 6,172 20,323 18,866 Depreciation 4,186 3,882 12,542 11,873 Amortization expense of finance leases 515 543 1,875 1,484 Income tax (benefit) provision (86 ) 722 1,945 2,166 Interest expense, net 284 169 660 7,569 EBITDA (40,711 ) 13,468 (29,363 ) (10,962 ) Adjustments: Stock-based compensation expense 1,416 3,034 7,214 11,156 Amortization of cloud-computing implementation costs 358 342 1,076 342 Change in fair value of contingent consideration liability 44 — 2,447 — Loss on extinguishment of debt — — — 9,629 Restructuring 5,784 — 5,784 — Impairment of goodwill 46,300 — 46,300 — Other (income) expense, net (1) (1,476 ) (5,582 ) (8,464 ) 9,288 Non-GAAP adjusted EBITDA $ 11,715 $ 11,262 $ 24,994 $ 19,453 Non-GAAP adjusted EBITDA margin (2) 12.6 % 12.2 % 9.0 % 7.2 % (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) Income. (2) Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue reported on our Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income for the applicable period. We do not provide GAAP net (loss) income 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) income, on a forward-looking basis. Revenues Revenues from our two offerings of products and services are as follows: Three Months Ended September 30, (In thousands) 2022 (Unaudited) % of Revenue 2021 (Unaudited) % of Revenue $ Variance % Variance Digital Ad Solutions $ 52,360 56.4 % $ 57,039 61.7 % $ (4,679 ) (8.2 ) % Cross Platform Solutions(1) 40,423 43.6 % 35,448 38.3 % 4,975 14.0 % Total revenues $ 92,783 100.0 % $ 92,487 100.0 % $ 296 0.3 % (1) Cross Platform Solutions revenue includes revenue from our movies business, which grew from $7.9 million in the third quarter of 2021 to $8.7 million in the third quarter of 2022. Nine Months Ended September 30, (In thousands) 2022 (Unaudited) % of Revenue 2021 (Unaudited) % of Revenue $ Variance % Variance Digital Ad Solutions $ 157,127 56.5 % $ 162,581 60.1 % $ (5,454 ) (3.4 ) % Cross Platform Solutions(1) 121,056 43.5 % 107,895 39.9 % 13,161 12.2 % Total revenues $ 278,183 100.0 % $ 270,476 100.0 % $ 7,707 2.8 % (1) Cross Platform Solutions revenue includes revenue from our movies business, which grew from $22.2 million in the first nine months of 2021 to $25.3 million in the first nine months of 2022. View source version on businesswire.com: https://www.businesswire.com/news/home/20221108006183/en/
Press Bill Daddi Daddi Brand Communications 917-620-3717 press@comscore.com Investors John Tinker Comscore, Inc. 212-203-2129 jtinker@comscore.com