comScore(US:SCOR)2024-08-07 02:09Financial Data and Key Metrics Changes - Total revenue for Q2 2024 was $85.8 million, down 8.4% from $93.7 million in the same quarter last year [7] - Adjusted EBITDA for Q2 2024 was $6.9 million, down 22.8% from the prior year, resulting in an adjusted EBITDA margin of 8.1% [9] - Full year revenue guidance for 2024 is revised to between $350 million and $360 million, a decline of 3% to 6% over 2023 [10] Business Line Data and Key Metrics Changes - Content and ad measurement revenue was $72.2 million, down 6.7% from 2023, primarily due to lower revenue from syndicated audience offerings [7] - Movies business showed solid performance with a revenue growth of 5% over the prior year [8] - Research and Insight Solutions revenue was $13.6 million, down 16.5% from 2023, mainly due to lower deliverables of custom digital solutions [8] Market Data and Key Metrics Changes - Cross-platform revenue declined in Q2, primarily driven by a decrease in CCR revenue due to a pause in usage with a large enterprise client [8] - Proximic revenue growth was slightly lower than expected, impacted by Oracle's announcement to shut down their ad business [8] Company Strategy and Development Direction - The company is transitioning from reliance on syndicated revenue from legacy markets to a transactional model focused on future media measurement [4] - Emphasis on cross-platform offerings and integration of new products to address emerging market needs [5][18] - Plans to release new products, including insights into AI tool usage and an omnichannel content measurement offering [18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that 2024 has not met expectations, with a significant revenue decline in the first half [10] - There is optimism about a potential return to growth as early as Q4 2024, driven by cross-platform products and new client relationships [16] - The company is focused on operational efficiency while investing in new capabilities [9] Other Important Information - The company has made significant progress in strengthening its balance sheet, including paying down $6 million of outstanding balance and evaluating alternative financing options [11] - An agreement was reached with preferred shareholders to issue additional Series B preferred shares, canceling approximately $33 million in accrued dividends [12] Q&A Session Summary Question: What is the path forward given the challenges in the legacy business? - The company is focused on cross-platform capabilities and expanding CCR integrations, which are seen as significant growth opportunities [20] Question: What are the risks of ongoing headwinds in the business? - Management indicated that visibility into traditional products is expected to stabilize by the end of the year, with major renewals anticipated [22] Question: How should the ramp in Proximic and CCR be measured? - The integration timelines are not always in the company's control, and meaningful momentum is expected to build over months and quarters [24]