comScore(US:SCOR)2022-05-10 21:04Financial Performance - Revenues for the three months ended March 31, 2022, were $93,966,000, representing an increase of 3.6% compared to $90,330,000 for the same period in 2021[15]. - Net loss for the three months ended March 31, 2022, was $9,276,000, a significant improvement from a net loss of $36,355,000 in the same period of 2021[15]. - The company reported a basic and diluted net loss per common share of $0.14 for the three months ended March 31, 2022, compared to $0.49 for the same period in 2021[15]. - The company reported a comprehensive loss of $9,817,000 for the three months ended March 31, 2022, compared to a comprehensive loss of $38,506,000 for the same period in 2021[15]. - Total revenue for the three months ended March 31, 2022, was $93.966 million, an increase of 4.1% compared to $90.330 million for the same period in 2021[51]. - Digital Ad Solutions revenue was $53.137 million, while Cross Platform Solutions revenue increased to $40.829 million from $37.285 million year-over-year[51]. - The United States market contributed $84.082 million to total revenue, up from $77.774 million in the prior year, representing a growth of 8.4%[51]. - Revenues for Q1 2022 were $93,966,000, a 4.0% increase from $90,330,000 in Q1 2021[106]. Expenses and Losses - The company incurred total expenses from operations of $104,512,000 for the three months ended March 31, 2022, compared to $101,789,000 for the same period in 2021[15]. - Total expenses from operations for Q1 2022 were $104,512,000, leading to a loss from operations of $10,546,000, compared to a loss of $11,459,000 in Q1 2021[106]. - Selling and marketing expenses decreased to $17,166,000, down 3.7% from $17,827,000 in Q1 2021[115]. - Research and development expenses were $9,532,000, a decrease of 7.9% from $10,353,000 in Q1 2021[117]. - General and administrative expenses increased to $18,117,000, up 25.2% from $14,468,000 in Q1 2021[119]. - Systems and bandwidth costs rose by 41.4% to $9,667,000, primarily due to cloud computing and processing costs[113]. Assets and Liabilities - Total current assets as of March 31, 2022, were $109,050,000, slightly down from $109,107,000 as of December 31, 2021[14]. - Total liabilities increased to $254,568,000 as of March 31, 2022, compared to $252,413,000 as of December 31, 2021[14]. - Total stockholders' equity decreased to $213,260,000 as of March 31, 2022, down from $223,176,000 as of December 31, 2021[14]. - The company’s accounts receivable decreased to $64,618,000 as of March 31, 2022, from $72,059,000 as of December 31, 2021[14]. - Current contract liabilities increased to $58.563 million from $54.011 million as of December 31, 2021[52]. - The contingent consideration liability increased to $7,948,000 as of March 31, 2022, from $5,600,000 as of December 31, 2021, reflecting a loss of $2,348,000 due to remeasurement[83]. Cash Flow - Cash and cash equivalents increased to $29,629,000 as of March 31, 2022, from $21,854,000 as of December 31, 2021[14]. - Net cash provided by operating activities in Q1 2022 was $12,408,000, down from $17,888,000 in Q1 2021[19]. - Net cash used in investing activities was $3.8 million for the three months ended March 31, 2022, compared to $3.7 million in 2021[149]. - Net cash used in financing activities decreased significantly to $0.7 million for the three months ended March 31, 2022, from $30.5 million for the same period in 2021[150]. Debt and Financing - The company had outstanding borrowings of $16.0 million and issued letters of credit of $3.3 million under the amended Revolving Credit Agreement as of March 31, 2022, leaving a remaining borrowing capacity of $20.7 million[71]. - The Revolving Credit Agreement was amended on February 25, 2022, increasing the borrowing capacity from $25.0 million to $40.0 million and modifying the interest rate to a SOFR-based rate[66]. - The company recorded a $9.6 million loss on extinguishment of debt in March 2021, primarily due to the write-off of unamortized deferred financing costs and issuance discounts[125]. - The company may need to raise additional funds through public or private equity or debt financing if existing cash and cash flow are insufficient for future activities[154]. Stock and Equity - The company issued 82,527,609 shares of Preferred Stock on March 10, 2021, generating gross proceeds of $204.0 million, with net proceeds totaling $187.9 million after costs[54]. - Each share of Preferred Stock was convertible into 1.057292 shares of Common Stock as of March 31, 2022, with the conversion rate set to return to 1.00 upon payment of accrued dividends on June 30, 2022[55]. - The company recognized accrued dividends to holders of Preferred Stock totaling $11.7 million as of March 31, 2022, compared to $7.9 million as of December 31, 2021, marking a 48.1% increase[90]. - As of March 31, 2022, the Preferred Stock is convertible into an aggregate of 87,255,755 shares of Common Stock, potentially causing substantial dilution to existing stockholders[172]. Corporate Governance and Compliance - The Chief Financial Officer, Jonathan Carpenter, has certified the financial reports, ensuring compliance with the Sarbanes-Oxley Act[31.1][31.2]. - The company is focused on maintaining compliance with the Securities Exchange Act of 1934, as evidenced by the signed reports[185]. - The company has filed various amendments to its Certificate of Incorporation and Bylaws, indicating ongoing corporate governance updates[3][4][5][6][7]. Strategic Partnerships and Agreements - The company entered into a Data License Agreement with Charter Communications, reflecting strategic partnerships to enhance data offerings[10.1]. - The company amended its Credit Agreement with Bank of America, which may indicate a restructuring of its financial obligations[10.2]. - The company has undergone a transition and separation agreement with former executive William Livek, suggesting changes in leadership structure[10.3]. Market and Operational Risks - The ongoing geopolitical situation, including the Russian invasion of Ukraine, may lead to increased regulatory scrutiny and operational risks[171]. - The company anticipates continued revenue growth in the movies business as consumer attendance in theaters increases[110].