Comscore reports first quarter 2022 results

Comscore, Inc. , a trusted partner for planning, transacting, and evaluating media across platforms, today reported financial results for the quarter ended March 31, 2022.

Q1 2022 financial highlights

• Revenue for the first quarter was $94.0 million compared to $90.3 million in Q1 2021
• TV measurement grew double digits year over year on new business wins and renewals with long-standing partners
• Activation up 20% year over year as our privacy-forward solutions are beginning to scale
• Net loss of $9.3 million compared to a net loss of $36.4 million in Q1 2021
• Adjusted EBITDA of $6.8 million compared to $5.6 million in Q1 2021

Recent business developments

Cross platform solutions

• MRC audit for Local and National Television measurement is underway
• New National TV business wins with Warner Bros. Discovery and Paramount Global
• Warner Bros. Discovery considers Comscore as an alternative currency provider with multiple national agencies
• NBCU certifies Comscore for Local currency measurement, NBCU’s only certified Local provider
• Comcast Cable’s ad sales division Effectv announces Comscore as a currency for its local markets
• Sinclair becomes first TV group to subscribe to a multiyear contract with Comscore’s Consumer Intelligence (CCI) for local markets
• Expanded relationship with WideOrbit to include Comscore as a new currency for its local markets, with automated TV buying and selling across 1700 stations in all 210 markets

 Digital ad solutions

• Renewed partnership with IRI to add custom CPG segments to Comscore’s growing Activation suite of privacy-forward product offerings
• Tremor International partners with Comscore’s cookie-free Predictive Audiences to pre-bid audience targeting across desktop, mobile and connected TV (CTV)
• New business with Redfin and WebMD
• CCR engagement with NBCU and Warner Bros. Discovery

“This was another solid quarter of year-over-year growth for Comscore. I am proud of the progress we are making across all our lines of business. As the measurement landscape evolves, Comscore remains focused on delivering superior products that drive the best outcomes for our clients. Throughout the quarter we continued to sign new clients and renewed long-standing currency relationships with industry-leading companies. There continues to be a tremendous opportunity for Comscore as it positions itself as the leading cross-platform currency, which we expect will continue to drive revenue growth throughout 2022,” said Bill Livek, CEO and Executive Vice Chairman of Comscore.

First quarter summary results
Revenue in the first quarter was $94.0 million, up 4% from $90.3 million in Q1 2021, with growth from increases in TV, Movies, Custom Solutions, and Activation partially offset by lower revenue from services related to our international digital measurement offering. Expenses from cost of revenues, sales and marketing, research and development and general and administrative were $97.7 million, up 2.5% from $95.4 million in Q1 2021.

Net loss for the quarter was $9.3 million, compared to net loss of $36.4 million in Q1 2021. Included in net loss for Q1 2021 was a $15.3 million non-cash charge related to the recapitalization transaction that closed in March 2021. After accounting for dividends on our convertible preferred stock, loss per share attributable to common shares was $(0.14), compared to a loss per share of $(0.49) in Q1 2021.

Adjusted EBITDA for the quarter was $6.8 million, compared to $5.6 million in Q1 2021, resulting in adjusted EBITDA margins of 7% and 6%, respectively. Adjusted EBITDA and adjusted EBITDA margin exclude stock-based compensation, change in fair value of contingent consideration, financing derivatives and warrants liability, debt extinguishment costs, amortization of cloud-computing implementation costs, and other items as presented in the accompanying tables.

Balance sheet and liquidity
As of March 31, 2022, cash, cash equivalents and restricted cash totaled $30.1 million. Total debt principal, including $16.0 million in outstanding borrowings under our senior secured revolving credit agreement, was $20.5 million.

2022 uutlook
Based on current trends and expectations, we continue to believe that revenue will increase mid to high single digits over 2021 and expect the adjusted EBITDA margin to be consistent with 2021. BCS Bureau