comScore(US:SCOR)2020-02-28 03:16Financial Data and Key Metrics Changes - The company reported fourth quarter revenue of $95.2 million, down from $109.3 million in the same quarter last year, primarily due to lower syndicated digital and custom solutions [26] - The net loss for the fourth quarter was $21.4 million, an improvement from a net loss of $27.2 million in the same period last year [36] - Adjusted EBITDA for the fourth quarter was $5.5 million, compared to $6.3 million in the prior year [36] - The company ended the quarter with total cash of $66.8 million, an increase of $8.3 million from the third quarter [37] Business Line Data and Key Metrics Changes - Revenue from Ratings and Planning was $66.8 million, a decrease of $8 million year-over-year, attributed to declines in syndicated digital products, national TV, and cross-platform products, offset by higher local TV and addressable revenue [27] - Revenue from analytics and optimization was $17.7 million, down $6.2 million from the previous year, primarily due to lower digital custom marketing solutions [30] - Movies reporting and analytics revenue was $10.7 million, slightly up from $10.6 million in the prior year, indicating stability in this segment [31] Market Data and Key Metrics Changes - Local TV revenue grew 35% year-over-year, reflecting strong demand for third-party measurement [16] - The company secured key renewals and new agreements in local TV, including partnerships with CBS and other local stations [16][17] Company Strategy and Development Direction - The company announced a significant measurement deal with Comcast, enhancing its TV measurement capabilities and expected to drive revenue growth [5][10] - Focus on developing new products for addressable advertising and cross-platform measurement to capitalize on the fragmented media ecosystem [18][19] - The strategic review is ongoing, with the company exploring options to maximize shareholder value [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the stabilization of the digital business and the potential for revenue growth in 2020, driven by privacy laws and returning customers [29][54] - The company expects 2020 revenue to be in the range of $390 million to $410 million, with a gradual increase throughout the year [40][41] - Management highlighted the importance of the upcoming political cycle and Olympic events as catalysts for TV revenue growth [61] Other Important Information - The company completed a small financing transaction that increased its cash position, providing greater operational flexibility [24][39] - The integration of Comcast data is targeted for completion by year-end, which is expected to enhance service offerings [78] Q&A Session Summary Question: Impact of Comcast deal on margins - Management indicated that the integration costs for the Comcast deal would be low and already accounted for in their plans, expecting no significant negative impact in 2020 [46][49] Question: Stability of digital revenue - Management noted that recent trends, including the impact of privacy laws, have led to returning customers, indicating stabilization in the digital segment [51][54] Question: Product roadmap for extended TV and addressable advertising - Management confirmed that both extended TV and addressable advertising are integral to their strategy and are seeing strong demand [55][56] Question: Outlook for TV business - Management expressed confidence in a strong year for the TV business, driven by the political cycle and advancements in privacy-compliant targeting [60][61] Question: Expense management and cost reductions - Management indicated that while the heavy lifting on cost reductions is done, there are still opportunities to lower expenses further throughout 2020 [65][68] Question: Exposure to coronavirus - Management stated that they do not foresee any significant impact from the coronavirus, given their previous exits from certain international markets [92] Question: Strategic options for the company - Management reiterated that they are exploring various strategic options but did not provide specific details at this time [95]