comScore Returns to Revenue Growth for the First Quarter 2018
comScore Returns to Revenue Growth for the First Quarter 2018
RESTON, Va., May 9, 2018 /PRNewswire/ -- comScore, Inc. (OTC: SCOR), a leading cross-platform measurement company that measures audiences, brands and consumer behavior everywhere, today reported financial results for the first quarter of 2018, ended March 31, 2018.
Revenue advanced 5% year-over-year for the first quarter of 2018 to $105.9 million from $100.9 million reported in the same period for 2017. GAAP net loss for the first quarter of 2018 was $51.5 million, or $(0.93) per share as compared to $40.8 million, or $(0.71) per share reported in the same period for 2017.
Revenue from the digital audience product offering in the first quarter of 2018 was $57.8 million, consistent with the same period of 2017. TV and Cross-Platform revenue increased 15% year-over-year to $25.3 million. Advertising product revenue increased 6% year-over-year to $12.2 million and movies revenue increased 13% year-over-year to $10.6 million. All revenue figures reflect the implementation of new revenue standard ASC 606.
On a non-GAAP basis, net loss for the first quarter of 2018 was $13.8 million, or $(0.25) per share, excluding investigation and audit-related expenses, stock-based compensation expense and certain other items as presented in the accompanying tables. This compares to a non-GAAP net loss of $17.7 million, or $(0.31) per share, reported in the same period for 2017.
For the first quarter of 2018, comScore generated adjusted EBITDA of $3.6 million, excluding investigation and audit-related expenses, stock-based compensation and certain other items as presented in the accompanying tables. This compares to adjusted EBITDA loss of $(1.9) million reported in the same period one year ago.
"I am excited to lead comScore at this pivotal moment in the advertising industry," commented Bryan Wiener, CEO-elect. "With an unmatched data footprint, universal brand recognition and loyal customers across major brands and media companies, we're positioned to lead the marketplace as the independent cross-platform measurement solution that will empower our partners to make business decisions with complete confidence."
Wiener added, "To meet this aim, we plan to accelerate product innovation, increase operational excellence and simplify our cost structure. Our revenue results in the first quarter demonstrate relative stability in our digital business and encouraging growth in our TV and cross-platform business and other investment areas."
"As CEO, my priority will be to drive meaningful change within the company by reenergizing our teams around a clearly defined strategy that will allow us to reach our full potential as the market leader in cross-platform measurement. I look forward to communicating more details of this strategy on our next earnings call in August," continued Wiener.
Conference Call information for today Wednesday, May 9 at 5:00 p.m. ET
Management will provide commentary on the company's results in a conference call today at 5:00 p.m. ET. To access this call, dial 800-263-0877 (domestic) or +1 323-794-2094 (international) and reference conference ID 5244430. Participants are advised to dial in at least 10 minutes prior to the call to register. Additionally, a webcast of the conference call will be available on the Investor Relations section of the company's website at ir.comscore.com/events-presentations.
About comScore
comScore is a leading cross-platform measurement company that measures audiences, brands and consumer behavior everywhere. Built on precision and innovation, our data footprint combines proprietary digital, TV and movie intelligence with vast demographic details to quantify consumers' multiscreen behavior at massive scale. This approach helps media companies monetize their complete audiences and allows marketers to reach these audiences more effectively. With more than 3,200 clients and global footprint in 70 countries, comScore is delivering the future of measurement. Shares of comScore stock are currently traded on the OTC Market (OTC: SCOR). For more information on comScore, please visit comscore.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of federal and state securities laws, including, without limitation, comScore's expectations and opinions regarding business and market opportunities, product development and innovation, competitive advantages, financial stability and growth, operational improvements, changes to cost structure, strategic plans, and plans to hold future earnings calls. These statements involve risks and uncertainties that could cause actual events to differ materially from expectations, including, but not limited to, comScore's ability to achieve its expected strategic, financial and operational plans. For additional discussion of risk factors, please refer to comScore's respective Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and other filings that comScore makes from time to time with the U.S. Securities and Exchange Commission (the "SEC"), which are available on the SEC's website (www.sec.gov).
Investors are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date such statements are made. comScore does not intend or undertake any obligation to publicly update any forward-looking statements to reflect events, circumstances or new information after the date of this press release, or to reflect the occurrence of unanticipated events.
Use of Non-GAAP Financial Measures
To provide investors with additional information regarding our financial results, we are disclosing herein non-GAAP net income (loss) and net income (loss) per share and adjusted EBITDA, each of which are non-GAAP financial measures used by our management to understand and evaluate our core operating performance and trends. We believe that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our operating results, as they permit our investors to view our core business performance using the same metrics that management uses to evaluate our performance. Nevertheless, our use of these non-GAAP financial measures has limitations as an analytical tool, and investors should not consider these measures in isolation or as a substitute for analysis of our results as reported under GAAP. Instead, you should consider these measures alongside GAAP-based financial performance measures, net income (loss), various cash flow metrics, and our other GAAP financial results.
Set forth below are reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures. These reconciliations should be carefully evaluated.
COMSCORE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
March 31, 2018 December 31, 2017
-------------- -----------------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $67,266 $37,859
Restricted cash 7,564 7,266
Accounts receivable, net of
allowances of $1,779 and
$1,991, respectively ($1,487
and $2,899 of accounts
receivable attributable to
related parties) 70,902 82,029
Prepaid expenses and other
current assets 15,581 15,168
Insurance recoverable on
litigation settlements 37,232 37,232
Total current assets 198,545 179,554
Property and equipment, net 26,894 28,893
Other non-current assets 8,106 7,259
Deferred tax assets 4,252 4,532
Intangible assets, net 151,275 159,777
Goodwill 643,006 642,424
------- -------
Total assets $1,032,078 $1,022,439
========== ==========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable ($227 and
$2,715 attributable to related
parties) $26,223 $27,889
Accrued expenses ($1,442 and
$5,857 attributable to related
parties) 68,966 86,031
Accrued litigation settlements 27,447 27,718
Other current liabilities 9,428 10,485
Deferred revenue ($2,386 and
$2,755 attributable to related
parties) 96,388 98,367
Financing derivatives, current 4,100 -
-----
Total current liabilities 232,552 250,490
Financing derivatives 11,020 -
Senior secured convertible
notes 126,246 -
Deferred tax liabilities 4,259 3,641
Accrued litigation settlements 90,800 90,800
Other non-current liabilities 18,458 21,016
Total liabilities 483,335 365,947
------- -------
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par
value per share; 5,000,000
shares authorized at March 31,
2018 and December 31, 2017; no
shares issued or outstanding
as of March 31, 2018 and
December 31, 2017 - -
Common stock, $0.001 par value
per share; 100,000,000 shares
authorized as of March 31,
2018 and December 31, 2017;
60,382,466 shares issued and
55,017,670 shares outstanding
as of March 31, 2018 and
60,053,843 shares issued and
57,289,047 shares outstanding
as of December 31, 2017,
respectively 60 60
Additional paid-in capital 1,414,109 1,407,717
Accumulated other comprehensive
loss (4,609) (6,224)
Accumulated deficit (661,277) (609,091)
Treasury stock, at cost,
5,364,796 and 2,764,796 shares
as of March 31, 2018 and
December 31, 2017,
respectively (199,540) (135,970)
-------- --------
Total stockholders' equity 548,743 656,492
------- -------
Total liabilities and
stockholders' equity $1,032,078 $1,022,439
========== ==========
COMSCORE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Unaudited)
(In thousands, except share and per share data)
Three Months Ended March 31,
2018 2017
---- ----
Revenues (1) $105,919 $100,861
-------- --------
Cost of revenues (1) (2) (3) 47,254 47,313
Selling and marketing (1) (2)
(3) 25,905 29,733
Research and development (1) (2)
(3) 18,716 21,020
General and administrative (1)
(2) (3) 18,661 17,785
Investigation and audit related
(1) 31,867 17,678
Amortization of intangible
assets 8,544 8,735
Settlement of litigation, net - 1,533
Restructuring 1,257 -
----- ---
Total expenses from operations 152,204 143,797
------- -------
Loss from operations (46,285) (42,936)
Interest expense, net (1) (2,905) (154)
Other income, net 77 3,184
Loss from foreign currency
transactions (922) (20)
Loss before income taxes (50,035) (39,926)
Income tax provision (1,415) (866)
------ ----
Net loss $(51,450) $(40,792)
======== ========
Net loss per common share:
Basic $(0.93) $(0.71)
Diluted (0.93) (0.71)
Weighted-average number of
shares used in per share
calculation - Common Stock:
Basic 55,227,046 57,274,851
Diluted 55,227,046 57,274,851
-------
Comprehensive loss:
Net loss $(51,450) $(40,792)
Other comprehensive income:
Foreign currency cumulative
translation adjustment 1,615 603
Total comprehensive loss $(49,835) $(40,189)
======== ========
(1) Transactions with related parties are included in the line items above (refer to Footnote 8, Related Party Transactions, of
the Notes to Condensed Consolidated Financial Statements in our Quarterly Report on Form 10-Q for the period ended March 31,
2018 for additional information).
(2) Amortization of stock-based compensation expense is included in the line items above as follows:
Three Months Ended March 31,
2018 2017
---- ----
Cost of revenues $213 $629
Selling and marketing 575 1,446
Research and development 344 821
General and administrative 749 924
$1,881 $3,820
====== ======
(3) Excludes amortization of intangible assets, which is presented separately in the Condensed Consolidated Statements of
Operations and Comprehensive Loss.
COMSCORE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
Three Months Ended March 31,
2018 2017
---- ----
Operating activities
Net loss $(51,450) $(40,792)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation 4,563 6,129
Amortization of intangible
assets 8,544 8,735
Stock-based compensation 1,881 3,820
Deferred tax benefit 906 879
Change in fair value of
financing derivatives 2,180 -
Change in fair value of equity
securities 449 -
Accretion of debt discount 752 -
Amortization of deferred
financing costs 207 -
Other (69) 806
Changes in operating assets and liabilities:
Accounts receivable 11,095 8,271
Prepaid expenses and other
assets (597) (14,932)
Accounts payable, accrued
expenses, and other
liabilities (19,761) 19,807
Deferred revenue (3,498) 5,325
Net cash used in operating
activities (44,798) (1,952)
Investing activities
Purchase of property and
equipment (2,657) (2,999)
------ ------
Net cash used in investing
activities (2,657) (2,999)
Financing activities
Proceeds from borrowings on
senior secured convertible
notes 85,000 -
Debt issuance costs (4,315) -
Financing proceeds received on
subscription receivable
(related party) 3,065 1,259
Repurchase of Common Stock
(withholding taxes) (4,099) (1,262)
Principal payments on capital
lease and software license
arrangements (2,859) (4,499)
Net cash provided by (used in)
financing activities 76,792 (4,502)
Effect of exchange rate
changes on cash 368 (1,721)
--- ------
Net increase (decrease) in
cash, cash equivalents and
restricted cash 29,705 (11,174)
Cash, cash equivalents and
restricted cash at beginning
of period 45,125 88,341
------ ------
Cash, cash equivalents and
restricted cash at end of
period $74,830 $77,167
======= =======
Three Months Ended March 31,
2018 2017
---- ----
Cash and cash equivalents $67,266 $72,635
Restricted cash 7,564 4,532
----- -----
Total cash, cash equivalents
and restricted cash $74,830 $77,167
======= =======
Reconciliation of Non-GAAP Financial Measures
The following table presents a reconciliation of Adjusted EBITDA to net loss for each of the periods identified:
Three Months Ended March 31,
(In thousands) 2018 2017
---- ----
Net loss (GAAP) $(51,450) $(40,792)
-------- --------
Income tax provision 1,415 866
Interest expense, net 2,905 154
Depreciation 4,563 6,129
Amortization of
intangible assets 8,544 8,735
----- -----
EBITDA (34,023) (24,908)
Adjustments:
Stock-based compensation 1,881 3,820
Investigation and audit
related (1) 31,867 17,678
Settlement of litigation,
net - 1,533
Restructuring costs 1,257 -
Other income, net (2)) 2,629 13
Adjusted EBITDA $3,611 $(1,864)
====== =======
(1) Amounts represent charges for
matters relating to the Audit Committee
investigation described in our Annual
Report on Form 10-K for the year ended
December 31, 2017, including litigation
and investigation-related costs, costs
associated with tax projects, audits
and other professional, consulting or
other fees.
(2) In 2018, adjustments to other
income, net, reflect non-cash changes
in the fair value of financing
derivatives and equity securities
investments included in other income,
net on our Condensed Consolidated
Statements of Operations and
Comprehensive Loss. These financial
instruments were not held in the prior
period. The prior period adjustment to
other income, net reflects items
classified as non-operating other
income, net on our Condensed
Consolidated Statements of Operations
and Comprehensive Loss, excluding the
other income associated with the
transition services agreement for the
DAx disposition. Our change to exclude
non-operating other income, net from
our calculation of Adjusted EBITDA for
2018 is intended to conform Adjusted
EBITDA to the Consolidated EBITDA
definition within our senior secured
convertible notes.
The following table presents a reconciliation of non-GAAP net loss to net loss (GAAP) for each of the periods
identified:
Three Months Ended March 31,
(In thousands) 2018 2017
---- ----
Net loss (GAAP) $(51,450) $(40,792)
-------- --------
Adjustments:
Stock-based compensation 1,881 3,820
Investigation and audit
related (1) 31,867 17,678
Settlement of litigation,
net - 1,533
Restructuring costs 1,257 -
Other income, net (2) 2,629 13
Non-GAAP net loss $(13,816) $(17,748)
======== ========
(1) Amounts represent charges for
matters relating to the Audit Committee
investigation described in our Annual
Report on Form 10-K for the year ended
December 31, 2017, including litigation
and investigation-related costs, costs
associated with tax projects, audits
and other professional, consulting or
other fees.
(2) In 2018, adjustments to other
income, net, reflect non-cash changes
in the fair value of financing
derivatives and equity securities
investments included in other income,
net on our Condensed Consolidated
Statements of Operations and
Comprehensive Loss. These financial
instruments were not held in the prior
period. The prior period adjustment to
other income, net reflects items
classified as non-operating other
income, net on our Condensed
Consolidated Statements of Operations
and Comprehensive Loss, excluding the
other income associated with the
transition services agreement for the
DAx disposition. We have excluded non-
operating other income, net from our
calculation of non-GAAP net loss for
2018.
Supplemental Non-GAAP Disclosures
The following table presents a reconciliation of certain non-GAAP expense line items (to be discussed on today's conference call) to the most directly comparable GAAP expense line items.
Three Months Ended March 31,
2018 2017
---- ----
(In thousands) As reported (GAAP) Less: Stock-based Compensation As adjusted (non-GAAP) % of GAAP Revenue As reported (GAAP) Less: Stock-based Compensation As adjusted (non-GAAP) % of GAAP Revenue
----------------- ------------------------------ --------------------- ----------------- ----------------- ------------------------------ --------------------- -----------------
Revenues $105,919 100.00% $100,861 100.00%
Cost of revenues 47,254 (213) 47,041 44.41% 47,313 (629) 46,684 46.29%
Selling and marketing 25,905 (575) 25,330 23.91% 29,733 (1,446) 28,287 28.05%
Research and
development 18,716 (344) 18,372 17.35% 21,020 (821) 20,199 20.03%
General and
administrative 18,661 (749) 17,912 16.91% 17,785 (924) 16,861 16.72%
CONTACT: Investor Contact: Erica J. Abrams, erica@ericajabrams.com
View original content with multimedia:http://www.prnewswire.com/news-releases/comscore-returns-to-revenue-growth-for-the-first-quarter-2018-300645849.html
SOURCE comScore
