comScore(US:SCOR)2023-03-02 01:04Financial Performance - Total revenues for 2022 were $376,423 thousand, an increase of 2% from $367,013 thousand in 2021 [353]. - The net loss for 2022 was $66,561 thousand, compared to a net loss of $50,037 thousand in 2021, reflecting a 33% increase in losses [353]. - The total comprehensive loss for 2022 was $70,403 thousand, compared to $55,105 thousand in 2021, reflecting an increase of 28% [353]. - The company reported a loss per common share of $0.89 for 2022, compared to a loss of $0.78 per share in 2021 [353]. - The company’s accumulated deficit increased to $1,300,789 thousand in 2022 from $1,218,715 thousand in 2021, indicating a worsening financial position [352]. - Total stockholders' equity decreased significantly to $144,162 thousand in 2022 from $223,176 thousand in 2021, a drop of approximately 35% [352]. Cash and Liquidity - The company has $20.4 million in cash and cash equivalents, with $10.6 million held by foreign subsidiaries, potentially subject to a 5% to 15% income tax withholding if repatriated [325]. - Cash and cash equivalents decreased to $20,044 thousand in 2022 from $21,854 thousand in 2021, a decline of about 8% [352]. - The company reported net cash provided by operating activities of $34,937 thousand in 2022, an increase from $9,856 thousand in 2021 [358]. - The total cash, cash equivalents, and restricted cash at the end of 2022 was $20,442 thousand, compared to $22,279 thousand in 2021 [358]. Goodwill and Impairment - The company recorded a non-cash goodwill impairment charge of $46.3 million during the three months ended September 30, 2022, due to the estimated fair value of its reporting unit being less than its carrying value [343]. - Goodwill impairment recorded in 2022 amounted to $46,300 thousand, while there was no impairment in 2021 [353]. - The Company recognized an impairment of goodwill amounting to $46,300 thousand in 2022, while there were no impairments recorded in 2021 and 2020 [358]. Revenue Recognition - The company’s revenue recognition involves complex contracts with multiple performance obligations, requiring significant management judgment [336]. - The Company recognizes revenue based on the transfer of control to customers, reflecting the consideration expected to be entitled [421]. - The Company recognizes revenue for subscription-based products on a straight-line basis over the access period specified in the contract [427]. - Revenue recognition for impression-based products is typically based on time elapsed or volume of impressions processed during a discrete period [427]. - Contract liabilities relate to amounts billed in advance under non-cancelable contracts, with the portion to be recognized in the succeeding twelve-month period presented separately within current liabilities [432]. Foreign Currency and Market Risks - A 10% decrease in foreign currency values would decrease the company's net loss by approximately $9.6 million, while a 10% increase would increase the net loss by approximately $5.2 million for the year ended December 31, 2022 [324]. - The company has not engaged in any transactions to hedge foreign currency exchange rate risk, exposing it to adverse changes in exchange rates [323]. - As of December 31, 2022, the company had outstanding warrants with a liability of $0.7 million, which are subject to market risk based on the price of its Common Stock [320]. Debt and Credit Facilities - The company’s borrowings under the Revolving Credit Agreement bore interest at a variable rate, which increased from Daily SOFR plus 2.50% to Daily SOFR plus 3.50% as of February 24, 2023 [318]. - The Revolving Credit Agreement was amended in February 2022 to expand borrowing capacity from $25.0 million to $40.0 million [510]. - The Company is required to maintain a minimum Consolidated EBITDA of not less than $20.0 million for the most recent four fiscal quarters as of December 31, 2022 [511]. Stock and Equity - The Company issued 27,509,203 shares of Preferred Stock to Charter, Qurate, and Pine for a total of $204.0 million in March 2021 [472]. - The Company recognized $15.5 million in dividends paid to holders of Preferred Stock for the year ended December 31, 2022 [456]. - The holders of Preferred Stock are entitled to a cumulative dividend at a rate of 7.5% per annum, payable annually in arrears [479]. - The maximum number of shares available for future issuance under the 2018 Equity and Incentive Compensation Plan as of December 31, 2022, is 5,693,104 [496]. Acquisitions - The Company acquired Shareablee for a total consideration of $31.4 million, including $5.6 million for contingent consideration based on future performance [388]. - The goodwill recorded from the Shareablee acquisition was $19.2 million, reflecting expected cost synergies and the value of the acquired workforce [460]. - Shareablee contributed revenues of $0.4 million and a loss before income tax provision of $1.4 million for the year ended December 31, 2021 [464].