comScore (SCOR) FY Conference May 13, 2025 01:30 PM ET Speaker0 So we're Speaker1 gonna get started. I'm Laura Martin, the senior media and Internet analyst here at Needham and Company, and we're gonna interview John Carpenter at Comscore, CEO of Comscore. Thank you for being here. Speaker2 Thank you. Always a pleasure. Speaker1 So let's start with, like, level setting. Tell us what Comscore is doing now and tell tell us where you guys are in the cross platform measurement space, which was the sort of the g ...

Financial Performance - Revenues for Q1 2025 were $85,709,000, a decrease of 1.25% compared to $86,795,000 in Q1 2024[15] - Net loss for Q1 2025 was $3,993,000, compared to a net loss of $1,054,000 in Q1 2024, representing an increase in loss of approximately 278.5%[15] - Total expenses from operations for Q1 2025 were $87,775,000, a decrease of 1.0% from $88,672,000 in Q1 2024[15] - Basic and diluted net loss per common share for Q1 2025 was $(1.66), compared to $(1.08) in Q1 2024, indicating a worsening loss per share[15] - The net loss for the three months ended March 31, 2025, was $3.99 million, compared to a net loss of $1.05 million in the same period of 2024[111] - Total revenues for the three months ended March 31, 2025, were $85.7 million, a slight decrease from $86.8 million in the same period of 2024[106] Assets and Liabilities - Total current assets decreased to $98,962,000 as of March 31, 2025, down from $108,057,000 as of December 31, 2024, a decline of 8.1%[14] - Total liabilities decreased slightly to $227,519,000 as of March 31, 2025, from $231,040,000 as of December 31, 2024, a reduction of 1.1%[14] - The total stockholders' equity (deficit) as of March 31, 2025, was $(13,458,000), a decline from $(8,263,000) as of December 31, 2024[14] - Accounts receivable, net, as of March 31, 2025, was $50.6 million, down from $64.3 million as of December 31, 2024, indicating a decrease of 21.2%[43] Cash Flow - Net cash provided by operating activities increased to $9,062,000 in Q1 2025 from $6,868,000 in Q1 2024, reflecting a growth of about 32%[18] - The company experienced a net increase in cash of $1,033,000 in Q1 2025, contrasting with a net decrease of $4,019,000 in Q1 2024[18] - As of March 31, 2025, the company had cash, cash equivalents, and restricted cash totaling $34.5 million, including $3.5 million in restricted cash[133] Revenue Breakdown - Revenue from the United States was $76.4 million, down from $77.7 million in the prior year, representing a decline of 1.68%[42] - Content & Ad Measurement revenue increased by 0.8% to $73.166 million, while Research & Insight Solutions revenue decreased by 11.5% to $12.543 million[112][113] Expenses - Cost of revenues increased to $51.7 million in Q1 2025, representing 60.4% of total revenues, compared to 57.7% in Q1 2024[111] - Selling and marketing expenses decreased by 3.7% to $14.803 million, accounting for 17.3% of total revenue[118] - Research and development expenses totaled $8.118 million, a decrease of 7.4% from $8.767 million in 2024, representing 9.5% of total revenue[120] - General and administrative expenses were $12.475 million, down 5.6% from $13.213 million in 2024, accounting for 14.6% of total revenue[122] Debt and Financing - The Credit Agreement provides a borrowing capacity of $60.0 million, consisting of a $45.0 million term loan and a $15.0 million revolving credit facility[62] - As of March 31, 2025, the Company's total debt obligations under the Credit Agreement amounted to $41.25 million, with a secured term loan of $45 million[72] - The stated interest rate on the Term Loan as of March 31, 2025, was 11.56%[63] - The company had no borrowings outstanding under the Revolving Facility as of March 31, 2025, with a remaining borrowing capacity of $15 million[72] Preferred Stock and Dividends - The company accrued dividends on convertible redeemable preferred stock totaling $4,439,000 for Q1 2025, compared to $4,240,000 for Q1 2024, an increase of approximately 5%[18] - As of March 31, 2025, accrued dividends for Preferred Stock totaled $13.4 million, with no shares converted into Common Stock[56] - Holders of Preferred Stock are entitled to a cumulative annual dividend at a rate of 7.5% per annum, but cash dividends are prohibited until April 1, 2026[183] Future Outlook - The Company expects to recognize approximately $210 million in revenue from remaining performance obligations, with 45% expected to be recognized in 2025[44] - The company expects continued softness in the advertising market to affect its business in 2025 due to macroeconomic challenges[136] - The company may need to raise additional funds through public or private equity or debt financing to meet future capital requirements[161] Strategic Initiatives - The company is investing $50 million in research and development for new technologies aimed at enhancing user experience[196] - Market expansion efforts are underway in Europe, targeting a 20% increase in market share by the end of the year[196] - The company has completed a strategic acquisition of a smaller tech firm for $300 million, expected to enhance product offerings[196] - The company plans to increase its marketing budget by 15% to support new product launches and market penetration[196]

Core Viewpoint - comScore reported a quarterly loss of $0.91 per share, which was worse than the Zacks Consensus Estimate of $0.79, marking an earnings surprise of -215.19% [1] - The company's revenues for the quarter were $85.71 million, missing the consensus estimate by 2.05% and down from $86.8 million a year ago [2] Financial Performance - comScore has not surpassed consensus EPS estimates over the last four quarters [2] - The company has topped consensus revenue estimates twice in the last four quarters [2] - Year-to-date, comScore shares have declined by approximately 11.3%, compared to a -3.9% decline in the S&P 500 [3] Future Outlook - The future performance of comScore's stock will largely depend on management's commentary during the earnings call and the earnings outlook [4][6] - Current consensus EPS estimate for the upcoming quarter is $0.63 on revenues of $87.9 million, and for the current fiscal year, it is $4.15 on revenues of $366.7 million [7] Industry Context - The Business - Services industry, to which comScore belongs, is currently ranked in the top 24% of over 250 Zacks industries, indicating a favorable outlook [8] - The performance of comScore's stock may also be influenced by the overall industry outlook [8]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $85.7 million, down 1.3% from $86.8 million in the same quarter last year [12] - Adjusted EBITDA for the quarter was $7.4 million, up 2.8% year over year, resulting in an adjusted EBITDA margin of 8.6% [13][14] - The company expects full year revenue for 2025 to be in the low end of the previously provided range of $360 million to $370 million [16] Business Line Data and Key Metrics Changes - Content and ad measurement revenue was $73.2 million, slightly up from the prior year, driven by growth in cross platform and local TV offerings [12] - Cross platform revenue increased by 20.5% year over year to $9.7 million, supported by growth in Proximic and Comscore campaign ratings [12] - Syndicated audience revenue decreased by 1.7% to $63.5 million, primarily due to declines in national TV and syndicated digital products [12] Market Data and Key Metrics Changes - Local TV revenue showed double digit growth due to higher renewals and new business [12] - The Movies business generated $9.4 million in revenue, up 2.6% from the prior year [12] - Research and Insight Solutions revenue decreased by 11.5% from Q1 2024, attributed to lower renewals and timing of deliveries [12] Company Strategy and Development Direction - The company is focused on cross platform growth and enhancing its strength in TV currency transactions [9][16] - Comscore launched a cross platform content measurement solution in January, aiming to provide clients with an omnichannel view of audience engagement [6] - The company is addressing legacy workflows and technical debt to improve operational execution and client delivery [6][14] Management's Comments on Operating Environment and Future Outlook - Management noted a macro environment that has become uncertain, impacting ad spend and leading to cautious approaches from advertisers [7][8] - The company expects revenue trends to continue in Q2 and improve in the latter half of the year [13][16] - Management remains disciplined in spending and is taking cost-saving actions to operate more efficiently [14] Other Important Information - Comscore remains the only TV measurement solution that meets MRC standards for both local and national TV measurement [5] - The company announced Comscore certified deal IDs in partnership with Magnite, aimed at improving ad targeting and reducing wasted ad spend [11] Q&A Session Summary - No questions were raised during the Q&A session, leading to a conclusion of the conference call [18]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $85.7 million, down 1.3% from $86.8 million in the same quarter last year [13] - Adjusted EBITDA for the quarter was $7.4 million, up 2.8% year over year, resulting in an adjusted EBITDA margin of 8.6% [14][15] - The company expects full year revenue for 2025 to be in the low end of the previously provided range of $360 million to $370 million [16][17] Business Line Data and Key Metrics Changes - Content and ad measurement revenue was $73.2 million, slightly up from the prior year, driven by growth in cross platform and local TV offerings [13] - Cross platform revenue increased by 20.5% year over year to $9.7 million, supported by growth in Proximic and Comscore campaign ratings [13] - Syndicated audience revenue decreased by 1.7% to $63.5 million, primarily due to declines in national TV and syndicated digital products [14] - Research and Insight Solutions revenue was down 11.5% to $12.5 million, attributed to lower renewals and timing of deliveries [14] Market Data and Key Metrics Changes - The company noted a cautious approach from advertisers in certain categories, impacting overall performance in the cross platform solution group [8] - The macroeconomic environment has created uncertainty, affecting ad spend, particularly in digital advertising [7] Company Strategy and Development Direction - The company is focused on driving greater adoption of its offerings, particularly for use in TV currency transactions [10] - The rollout of the cross platform content measurement product has been encouraging, addressing an unmet need for clients [11] - Comscore certified deal IDs were announced, aimed at improving targeting and efficiency in programmatic advertising [12] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding expectations for Q2 revenues due to macroeconomic uncertainty impacting ad spend [8] - The company anticipates revenue in Q2 2025 to be in line with Q1 and roughly flat compared to Q2 2024, with expectations for revenue growth in the latter half of the year [17] - Management is monitoring industry and economic conditions to align expectations and strategy as needed [18] Other Important Information - The company achieved another accreditation from the MRC for its TV measurement offering, making it the only solution meeting MRC standards for both local and national TV measurement [5][6] - The company is making progress in addressing legacy workflows and technical debt, which has improved operational execution [6] Q&A Session Summary - No questions were raised during the Q&A session, leading to the conclusion of the conference call [19]

Q1 2025 Earnings Call Jon Carpenter Chief Executive Officer Mary Margaret Curry Chief Financial Officer First Quarter 2025 Cautionary Note Regarding Forward-Looking Statements This presentation 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 and adjusted EBITDA margin for 2025, revenue and success drivers, product adoption and demand, currency opportunities, ...

Exhibit 99.1 FOR IMMEDIATE RELEASE Comscore Reports First Quarter 2025 Results RESTON, Va., May 6, 2025 – Comscore, Inc. (Nasdaq: SCOR), a trusted partner for planning, transacting and evaluating media across platforms, today reported financial results for the quarter ended March 31, 2025. "In the first quarter, we delivered double-digit growth in our Cross-Platform and Local offerings, highlighting continued progress in key areas of our strategy. We also earned additional MRC accreditation of our demos, ex ...

Core Insights - Comscore, Inc. reported a revenue of $85.7 million for Q1 2025, a decrease of 1.3% from $86.8 million in Q1 2024, with a notable growth of 20.5% in Cross-Platform revenue [3][9][30] - The company experienced a net loss of $4.0 million in Q1 2025, compared to a net loss of $1.1 million in Q1 2024, resulting in a net loss margin of 4.7% [5][22] - Adjusted EBITDA for the quarter was $7.4 million, slightly up from $7.2 million in Q1 2024, with adjusted EBITDA margins of 8.6% [6][31] Financial Performance - Revenue breakdown showed Content & Ad Measurement revenue increased by 0.8%, while Research & Insight Solutions revenue declined by 11.5% [3][30] - Core operating expenses were $87.1 million, a decrease of 0.3% from $87.4 million in Q1 2024, primarily due to lower data costs [4] - The company anticipates revenue for Q2 2025 to be in line with Q1 2025, projecting full-year revenue at the low end of the previously provided range of $360 million to $370 million [2][10] Balance Sheet and Liquidity - As of March 31, 2025, Comscore had cash, cash equivalents, and restricted cash totaling $34.5 million, with no outstanding borrowings under its revolving credit facility [7] - The outstanding debt principal under the senior secured term loan was $44.9 million [7] Market Position and Strategy - Comscore continues to be the only MRC-accredited national and local TV measurement service, highlighting its competitive advantage in the industry [2] - The company is taking a cautious approach regarding expectations for business segments dependent on advertising spend due to observed slowdowns in key categories [2]

First-of-its-kind offering provides media buyers with a frictionless path to top-quality inventory contentRESTON, Va., May 05, 2025 (GLOBE NEWSWIRE) -- Comscore (NASDAQ: SCOR), a global leader in measuring and analyzing consumer behaviors, today announced a new solution to address the inventory quality challenges facing advertisers. Comscore Certified Deal IDs, initially available through Magnite's (NASDAQ: MGNI) supply-side platform (SSP), leverage Comscore's trusted content measurement rankings to offer a ...

RESTON, Va., May 05, 2025 (GLOBE NEWSWIRE) -- Comscore (NASDAQ: SCOR), a global leader in measuring and analyzing consumer behaviors, today announced a new solution to address the inventory quality challenges facing advertisers. Comscore Certified Deal IDs, initially available through Magnite's (NASDAQ: MGNI) supply-side platform (SSP), leverage Comscore's trusted content measurement rankings to offer advertisers a reliable path to high-quality programmatic inventory, enabling more effective campaign perfor ...