comScore(US:SCOR)2025-03-06 21:54Financial Performance - Total revenues for 2024 were $356,047 thousand, a decrease of 4.3% from $371,343 thousand in 2023[353]. - The net loss for 2024 was $60,248 thousand, compared to a net loss of $79,361 thousand in 2023, indicating a 24.1% improvement[353]. - The company reported a loss from operations of $59,509 thousand in 2024, an improvement from a loss of $73,601 thousand in 2023[353]. - The net loss for the year ended December 31, 2023, was $60,248,000, compared to a net loss of $79,361,000 in 2022, indicating a reduction in losses by approximately 24%[358]. - Total revenue for 2024 was $356.0 million, a decrease of 4.1% from $371.3 million in 2023[462]. - Revenue from the United States was $318.4 million in 2024, down from $335.8 million in 2023, representing a decline of 5.0%[463]. - The Company recognized revenue of $308.6 million from products and services transferred over time in 2024, down from $315.1 million in 2023[463]. Cash and Liquidity - As of December 31, 2024, the Company had total cash and cash equivalents of $33.5 million, with $9.1 million held by foreign subsidiaries[326]. - Cash and cash equivalents at the end of the period increased to $29,937,000 in 2024 from $22,750,000 in 2023, reflecting a growth of about 32%[358]. - Total cash, cash equivalents, and restricted cash reached $33,468,000 as of December 31, 2024, compared to $22,936,000 in 2023, marking a significant increase of approximately 46%[358]. - The Company incurred stock-based compensation expenses of $3,191,000 in 2023, a decrease from $4,535,000 in 2022[358]. - The net cash provided by operating activities for 2023 was $18,104,000, down from $28,926,000 in 2022, representing a decline of about 37%[358]. Impairment Charges - The Company recorded a $63.0 million non-cash impairment charge during the three months ended September 30, 2024, due to goodwill impairment[344]. - The Company recorded a $34.1 million non-cash impairment charge during Q4 2023 as the reporting unit did not pass the goodwill impairment test[398]. - The Company recorded a $44.1 million non-cash impairment charge during Q2 2023 related to goodwill impairment[399]. - The Company recorded a $1.4 million non-cash impairment charge related to a right-of-use asset during Q3 2024[404]. - The Company recorded a $1.5 million non-cash impairment charge related to right-of-use assets during Q3 2023[405]. Expenses and Costs - Cost of revenues increased slightly to $208,708 thousand in 2024 from $205,580 thousand in 2023, representing a 0.6% increase[353]. - Selling and marketing expenses decreased to $57,622 thousand in 2024 from $63,322 thousand in 2023, a reduction of 9.5%[353]. - Research and development expenses remained relatively stable at $33,066 thousand in 2024 compared to $33,701 thousand in 2023[353]. - Cost of revenues primarily includes expenses related to data acquisition, network infrastructure, and employee costs, including stock-based compensation[434]. - Research and development expenses consist mainly of salaries and related costs for personnel involved in R&D activities[438]. Stock and Equity - The company’s total stockholders' equity deficit was $8,263 thousand in 2024, a significant decline from a positive equity of $56,103 thousand in 2023[352]. - The total number of shares of stock authorized for issuance was reduced from 380 million to 118.75 million following the Reverse Stock Split[365]. - The total number of outstanding Common Stock equivalents increased to 5,127,567 in 2024 from 4,924,034 in 2023[456]. - The Company issued 13,257,294 additional shares of Preferred Stock in July 2024, in exchange for cancellation of accrued dividends totaling $32.8 million[379]. - The Company awarded 229,795 time-based RSUs in 2024, with 119,720 RSUs vesting immediately related to the settlement of an accrued 2023 annual incentive plan liability[501]. Debt and Financing - As of December 31, 2024, the stated interest rate on the Term Loan was 11.59% per annum[321]. - The Company entered into a senior secured financing agreement with a borrowing capacity of $60 million, including a $45 million term loan fully funded at closing[509]. - The Credit Agreement requires annual prepayments of loans with Excess Cash Flow starting in 2025, with percentages based on the Total Leverage Ratio[513]. - The Credit Agreement prohibits cash dividends on Preferred Stock until April 1, 2026, and imposes limitations on cash dividends thereafter[514]. - The Company has a full valuation allowance against its deferred tax assets, which has not materially impacted its tax rate or results of operations[450]. Revenue Recognition - The Company’s revenue recognition involves complex contracts with multiple performance obligations, which require significant management judgment[337]. - The Company recognizes revenue for subscription-based products on a straight-line basis over the access period specified in the contract[427]. - The Company evaluates whether it is the principal or agent in transactions involving third parties, which can significantly affect revenue recognition[429]. - The Company expects to recognize approximately $240 million in revenue from remaining performance obligations as of December 31, 2024, with 53% expected in 2025[466]. Foreign Currency and Interest Rate Risks - A 10% decrease in foreign currency value would have resulted in a decrease to the net loss of approximately $10.9 million, while a 10% increase would have resulted in an increase to the net loss of approximately $7.3 million for the year ended December 31, 2024[325]. - The Company has exposure to foreign currency exchange rate risk from its global operations, impacting revenues and operating expenses[324]. - The Company is subject to interest rate risk based on the Adjusted Term SOFR rate, with borrowings under the Credit Agreement[321]. - The Company has not engaged in any transactions that hedge foreign currency exchange rate risk, exposing it to adverse changes in exchange rates[324].