EX-99.1 3 exhibit991-pressreleaseq42.htm EX-99.1 Document

Exhibit 99.1
image0a03a.jpg
FOR IMMEDIATE RELEASE

Comscore Reports Fourth Quarter and Full Year 2022 Results
FY Revenue of $376.4 million, up 2.6% from 2021
FY Net Loss of $66.6 million versus $50.0 million in 2021
FY Adjusted EBITDA of $37.0 million, up 16.1% from 2021
RESTON, Va., February 28, 2023 - Comscore, Inc. (Nasdaq: SCOR), a trusted partner for planning, transacting and evaluating media across platforms, today reported financial results for the fourth quarter and full year ended December 31, 2022.
FY 2022 Financial Highlights
•Revenue for 2022 was $376.4 million compared to $367.0 million in 2021
•Net loss of $66.6 million compared to $50.0 million in 2021, resulting primarily from a non-cash goodwill impairment charge of $46.3 million and restructuring costs of $5.8 million in Q3 2022
•Adjusted EBITDA of $37.0 million compared to $31.9 million in 2021
•Cash, cash equivalents and restricted cash of $20.4 million versus $22.3 million as of December 31, 2021
Q4 2022 Financial Highlights
•Revenue for the fourth quarter was $98.2 million compared to $96.5 million in Q4 2021
•Net income of $0.1 million compared to $2.9 million in Q4 2021
•Adjusted EBITDA of $12.0 million compared to $12.4 million in Q4 2021
2023 Financial Outlook
•Revenue expected to grow low to mid single digits over 2022
•Adjusted EBITDA margin expected to be in the double digits for 2023
Recent Developments
•Adopted as exclusive currency provider across Scripps' footprint in their 41 local markets as of January 1, 2023
•Secured long-term renewals with NBCU for national and local television
•Secured expansion and long-term renewal across the entire Gray Television broadcasting footprint
•Signed 11 new independent agencies in Q4 2022, including Berkshire Hathaway Automotive that represents over 100 Tier 3 dealers across 10 markets, Buonasera Media Services that represents Harris Teeter in the Southeast, and Intermedia Advertising Group that represents TitleMax and CarShield nationwide.
•Renewed measurement partnership with JOY-CPW, Inc., producer of "Game Time with Boomer Esiason," to provide local TV measurement spanning all 210 U.S. markets
•Similar to last year, selected by YouTube to identify the incremental advertising reach across YouTube before, during and after the Super Bowl linear TV broadcast for 15 major brands
•Expanded partnership with Adform to roll out Predictive Audiences globally, providing "Cookie-free" audience targeting to identify precise audiences, optimize campaigns and maximize budgets
•New digital business wins including The Barbarian Group, Slate, The Grid, and Blavity, Inc.
"2022 was a year of major change for Comscore and I'm extremely proud of what our teams have been able to accomplish," said Jon Carpenter, CEO of Comscore. "As I've mentioned, our focus has been on speed, execution and profitability. In 2022 we launched Comscore TV Pulse, which delivers local TV data within 48 hours, and we introduced our new Total Digital user interface that provides a combined view of our digital and social data. We also made strategic decisions related to our cost structure that enabled us to achieve adjusted EBITDA of $37 million, the highest we've had in many years. We did what we said we were going to do, and that has given us momentum as we head into 2023. As the company that provides the most complete view of audiences for both content and ads, I believe we are well positioned for continued success."


Fourth Quarter Summary Results
Revenue in the fourth quarter was $98.2 million, up 1.8% from $96.5 million in Q4 2021, driven by double-digit growth in Cross Platform Solutions revenue from local and national TV measurement. We saw a decline in Digital Ad Solutions revenue from Q4 2021 primarily as a result of slower ad spend, which impacted Activation and other digital products.
Our core operating expenses, which include cost of revenues, sales and marketing, research and development and general and administrative expenses, were $87.9 million, down 5.4% compared to $92.9 million in Q4 2021.
Net income for the quarter was $0.1 million, compared to net income of $2.9 million in Q4 2021. After accounting for dividends on our convertible preferred stock, loss per share attributable to common shares was $(0.04), compared to loss per share of $(0.01) in Q4 2021.
Adjusted EBITDA was $12.0 million, compared to $12.4 million in Q4 2021, resulting in adjusted EBITDA margins of 12.2% and 12.9%, respectively. Adjusted EBITDA and adjusted EBITDA margin exclude stock-based compensation, impairment charges, change in fair value of contingent consideration, warrants liability, debt extinguishment costs, amortization of cloud-computing implementation costs, restructuring costs and other items as presented in the accompanying tables.
Full-Year Summary Results
Revenue for 2022 was $376.4 million, up 2.6% compared to $367.0 million in 2021, driven by double-digit growth in Cross Platform Solutions revenue from local and national TV measurement and the continued rebound in our Movies business. Within Cross Platform Solutions, local and national TV revenue grew 25.7% and 12.6%, respectively, over 2021. We saw a decline in Digital Ad Solutions revenue from 2021 as a result of lower revenue from our international digital measurement offering along with slower ad spend, which impacted Activation and other digital products.
Our core operating expenses, which include cost of revenues, sales and marketing, research and development and general and administrative expenses, were $371.9 million, up 0.3% compared to $370.8 million in 2021.
Net loss for the year was $66.6 million, compared to net loss of $50.0 million in 2021. Included in net loss for 2022 were a non-cash impairment charge of $46.3 million related to goodwill and restructuring costs of $5.8 million recorded in Q3 2022. Included in net loss for 2021 was a $15.3 million non-cash charge related to the convertible preferred stock transaction closed in Q1 2021. After accounting for dividends on convertible preferred stock, loss per share attributable to common shares was $(0.89), compared to loss per share of $(0.78) in 2021.
Adjusted EBITDA was $37.0 million, compared to $31.9 million in 2021, resulting in adjusted EBITDA margins of 9.8% and 8.7%, respectively.
Balance Sheet and Liquidity
As of December 31, 2022, cash, cash equivalents and restricted cash totaled $20.4 million. Total debt principal, including $16.0 million in outstanding borrowings under our senior secured revolving credit agreement, was $19.4 million.

2023 Outlook
Based on current trends and expectations, we believe 2023 revenue will increase low to mid single digits over 2022, driven by continued growth in Cross Platform Solutions from our local and national TV offerings and growth in Digital Ad Solutions as we focus on product integrations and new product innovation. We expect an adjusted EBITDA margin in the double digits for 2022.
We do not provide GAAP net income (loss) on a forward-looking basis because we are unable to predict with reasonable certainty our future stock-based compensation expense, fair value adjustments, variable interest expense, litigation and restructuring expense and any unusual gains or losses without unreasonable effort. These items are uncertain, depend on various factors, and could be material to results computed in accordance with GAAP. For this reason, we are unable without unreasonable effort to provide a reconciliation of adjusted EBITDA or adjusted EBITDA margin to the most directly comparable GAAP measure, GAAP net income (loss), on a forward-looking basis.
Conference Call Information for Today, Tuesday, February 28, 2023 at 5:00 p.m. ET
Management will host a conference call to discuss the results on Tuesday, February 28, 2023, at 5:00 p.m. ET. The live audio webcast along with supplemental information will be accessible at ir.comscore.com/events-presentations. Participants can obtain dial-in information by registering for the call at the same web address and are advised to register in advance of the call


to avoid delays. Following the conference call, a replay will be available via webcast at ir.comscore.com/events-presentations.
About Comscore
Comscore is a trusted partner for planning, transacting and evaluating media across platforms. With a data footprint that combines digital, linear TV, over-the-top and theatrical viewership intelligence with advanced audience insights, Comscore allows media buyers and sellers to quantify their multiscreen behavior and make business decisions with confidence. A proven leader in measuring digital and TV audiences and advertising at scale, Comscore is the industry's emerging, third-party source for reliable and comprehensive cross-platform measurement.
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, our expectations, forecasts, plans and opinions regarding expected revenue growth and adjusted EBITDA margin for 2023, the impact of new customer contracts and partnerships on our business and revenue prospects, evolving economic and industry trends, currency opportunities, product integration and innovation, and restructuring plans and cost-reduction initiatives. These statements involve risks and uncertainties that could cause actual events to differ materially from expectations, including, but not limited to, changes in our business and customer, partner and vendor relationships; external market conditions and competition; changes or declines in ad spending or other macroeconomic factors; evolving privacy and regulatory standards; and our ability to achieve our expected strategic, financial and operational plans, including the restructuring plan we announced in September 2022. For additional discussion of risk factors, please refer to our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and other filings that we make 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. We do not intend or undertake, and expressly disclaim, any duty or 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 in this press release adjusted EBITDA and adjusted EBITDA margin, 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 measure, net income (loss). These reconciliations should be carefully evaluated.

Press
Marie Scoutas
Comscore, Inc.
917-213-2032
press@comscore.com


Investors
John Tinker
Comscore, Inc.
212-203-2129
jtinker@comscore.com


COMSCORE, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
As of December 31,
 20222021
Assets
Current assets:
Cash and cash equivalents$20,044 $21,854 
Restricted cash398 425 
Accounts receivable, net of allowances of $798 and 1,173, respectively
68,457 72,059 
Prepaid expenses and other current assets15,922 14,769 
Total current assets104,821 109,107 
Property and equipment, net36,367 36,451 
Operating right-of-use assets23,864 29,186 
Deferred tax assets 3,351 2,811 
Intangible assets, net 13,327 39,945 
Goodwill 387,973 435,711 
Other non-current assets10,883 10,263 
Total assets$580,586 $663,474 
Liabilities, Convertible Redeemable Preferred Stock and Stockholders' Equity
Current liabilities:
Accounts payable$29,090 $23,575 
Accrued expenses43,393 45,264 
Contract liabilities52,944 54,011 
Customer advances 11,527 11,613 
Current operating lease liabilities7,639 7,538 
Warrants liability718 10,520 
Current portion of contingent consideration7,134 1,037 
Other current liabilities12,646 11,813 
Total current liabilities165,091 165,371 
Non-current operating lease liabilities29,588 36,055 
Non-current portion of accrued data costs25,106 16,005 
Revolving line of credit16,000 16,000 
Deferred tax liabilities2,127 2,103 
Other non-current liabilities10,627 16,879 
Total liabilities248,539 252,413 
Commitments and contingencies
Convertible redeemable preferred stock, $0.001 par value; 82,527,609 shares authorized, issued and outstanding as of December 31, 2022 and 2021; aggregate liquidation preference of $211,863 as of December 31, 2022 and 2021
187,885 187,885 
Stockholders' equity:
Preferred stock, $0.001 par value; 7,472,391 shares authorized as of December 31, 2022 and 2021; no shares issued or outstanding as of December 31, 2022 or 2021
— — 
Common stock, $0.001 par value; 275,000,000 shares authorized as of December 31, 2022 and 2021; 98,869,738 shares issued and 92,104,942 shares outstanding as of December 31, 2022, and 97,172,086 shares issued and 90,407,290 shares outstanding as of December 31, 2021
92 90 
Additional paid-in capital1,690,783 1,683,883 
Accumulated other comprehensive loss(15,940)(12,098)
Accumulated deficit(1,300,789)(1,218,715)
Treasury stock, at cost, 6,764,796 shares as of December 31, 2022 and 2021(229,984)(229,984)
Total stockholders' equity144,162 223,176 
Total liabilities, convertible redeemable preferred stock and stockholders' equity$580,586 $663,474 



COMSCORE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(In thousands, except share and per share data)
 Years Ended December 31,
202220212020
Revenues$376,423 $367,013 $356,036 
Cost of revenues (1) (2)
205,294 203,044 180,712 
Selling and marketing (1) (2)
68,453 66,937 70,220 
Research and development (1) (2)
36,987 39,123 38,706 
General and administrative (1) (2)
61,200 61,736 55,783 
Amortization of intangible assets 27,096 25,038 27,219 
Impairment of goodwill46,300 — — 
Restructuring5,810 — — 
Impairment of right-of-use and long-lived assets156 — 4,671 
Total expenses from operations451,296 395,878 377,311 
Loss from operations(74,873)(28,865)(21,275)
Loss on extinguishment of debt— (9,629)— 
Interest expense, net(915)(7,801)(35,805)
Other income (expense), net9,785 (5,778)14,554 
Gain (loss) from foreign currency transactions1,166 2,895 (4,490)
Loss before income taxes(64,837)(49,178)(47,016)
Income tax provision(1,724)(859)(902)
Net loss$(66,561)$(50,037)$(47,918)
Net loss available to common stockholders
Net loss(66,561)(50,037)(47,918)
Convertible redeemable preferred stock dividends(15,513)(12,623)— 
Total net loss available to common stockholders$(82,074)$(62,660)$(47,918)
Net loss per common share:
Basic and diluted$(0.89)$(0.78)$(0.67)
Weighted-average number of shares used in per share calculation - Common Stock:
Basic and diluted92,683,564 80,802,053 71,181,496 
Comprehensive loss:
Net loss$(66,561)$(50,037)$(47,918)
Other comprehensive (loss) income:
Foreign currency cumulative translation adjustment(3,842)(5,068)5,303 
Total comprehensive loss$(70,403)$(55,105)$(42,615)
(1) Excludes amortization of intangible assets, which is presented separately in the Consolidated Statements of Operations and Comprehensive Loss.
(2) Stock-based compensation expense is included in the line items above as follows:
Years Ended December 31,
202220212020
Cost of revenues$1,144 $1,603 $1,288 
Selling and marketing1,021 1,791 2,226 
Research and development827 1,079 886 
General and administrative5,186 9,375 5,673 
Total stock-based compensation expense$8,178 $13,848 $10,073 


COMSCORE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
 Years Ended December 31,
202220212020
Operating activities:
Net loss$(66,561)$(50,037)$(47,918)
Adjustments to reconcile net loss to net cash provided by operating activities:
Impairment of goodwill46,300 — — 
Amortization of intangible assets 27,096 25,038 27,219 
Depreciation16,828 15,793 14,064 
Stock-based compensation expense8,178 13,848 10,073 
Non-cash operating lease expense6,060 5,345 5,555 
Change in fair value of contingent consideration liability2,558 — — 
Amortization expense of finance leases2,364 2,188 1,652 
Bad debt expense (benefit)312 (80)1,693 
Amortization of deferred financing costs163 378 1,560 
Impairment of right-of-use and long-lived assets156 — 4,671 
Deferred tax (benefit) provision (475)(1,719)10 
Change in fair value of warrant liability(9,802)7,689 (4,894)
Loss on extinguishment of debt— 9,629 — 
Non-cash interest expense on senior secured convertible notes— 4,692 9,180 
Accretion of debt discount— 1,620 7,571 
Change in fair value of financing derivatives— (1,800)(10,287)
Other 1,435 1,082 908 
Changes in operating assets and liabilities, net of effect of acquisition:
Accounts receivable2,596 (2,081)2,024 
Prepaid expenses and other assets(805)(1,145)(6,283)
Accounts payable, accrued expenses, and other liabilities7,396 (4,210)(17,095)
Contract liability and customer advances(1,587)(10,777)7,341 
Operating lease liabilities(7,275)(5,597)(6,327)
Net cash provided by operating activities34,937 9,856 717 
Investing activities:
Capitalized internal-use software costs(16,685)(14,747)(15,078)
Purchases of property and equipment(1,137)(803)(477)
Cash and restricted cash acquired from acquisition— 902 — 
Net cash used in investing activities(17,822)(14,648)(15,555)
Financing activities:
Payments for dividends on convertible redeemable preferred stock(15,512)(4,760)— 
Principal payments on finance leases(2,519)(2,138)(1,754)
Principal payment and extinguishment costs on senior secured convertible notes— (204,014)— 
Principal payment and extinguishment costs on secured term note— (14,031)— 
Proceeds from borrowings on revolving line of credit— 16,000 — 
Proceeds from issuance of convertible redeemable preferred stock, net of issuance costs— 187,885 — 
Other(101)(1,394)(342)
Net cash used in financing activities(18,132)(22,452)(2,096)
Effect of exchange rate changes on cash, cash equivalents and restricted cash(820)(1,218)902 
Net decrease in cash, cash equivalents and restricted cash(1,837)(28,462)(16,032)
Cash, cash equivalents and restricted cash at beginning of period22,279 50,741 66,773 
Cash, cash equivalents and restricted cash at end of period$20,442 $22,279 $50,741 
As of December 31,
202220212020
Cash and cash equivalents$20,044 $21,854 $31,126 
Restricted cash398 425 19,615 
Total cash, cash equivalents and restricted cash$20,442 $22,279 $50,741 


Reconciliation of Non-GAAP Financial Measures
The following table presents a reconciliation of GAAP net loss to non-GAAP adjusted EBITDA and adjusted EBITDA margin for each of the periods identified:
Years Ended December 31,
202220212020
(In thousands)(Unaudited)(Unaudited)(Unaudited)
GAAP net loss$(66,561)$(50,037)$(47,918)
Amortization of intangible assets27,096 25,038 27,219 
Depreciation16,828 15,793 14,064 
Income tax provision1,724 859 902 
Interest expense, net915 7,801 35,805 
Amortization expense of finance leases2,364 2,188 1,652 
EBITDA(17,634)1,642 31,724 
Adjustments:
Stock-based compensation expense8,178 13,848 10,073 
Loss on extinguishment of debt— 9,629 — 
Amortization of cloud-computing implementation costs1,435 712 — 
Change in fair value of contingent consideration liability2,558 — — 
Impairment of right-of-use and long-lived assets156 — 4,671 
Impairment of goodwill46,300 — — 
Restructuring5,810 — — 
Loss on asset disposition7 — — 
Other (income) expense, net (1)
(9,802)6,039 (14,164)
Non-GAAP adjusted EBITDA $37,008 $31,870 $32,304 
Non-GAAP adjusted EBITDA margin (2)
9.8 %8.7 %9.1 %
(1) Adjustments to other (income) expense, net reflect non-cash changes in the fair value of warrants liability, financing derivatives, and interest make-whole derivative included in other (income) expense, net on our Consolidated Statements of Operations and Comprehensive Loss.
(2) Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue reported on our Consolidated Statements of Operations and Comprehensive Loss for the applicable period.


COMSCORE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
(In thousands, except share and per share data)
 Three Months Ended December 31,
20222021
Revenues$98,240 $96,537 
Cost of revenues (1) (2)
49,379 49,777 
Selling and marketing (1) (2)
16,603 17,368 
Research and development (1) (2)
8,797 9,587 
General and administrative (1) (2)
13,081 16,127 
Impairment of right-of-use and long-lived assets156 — 
Restructuring
26 — 
Amortization of intangible assets 6,773 6,172 
Total expenses from operations94,815 99,031 
Income (loss) from operations3,425 (2,494)
Other income, net1,318 3,291 
(Loss) gain from foreign currency transactions(4,562)1,011 
Interest expense, net(255)(232)
(Loss) income before income taxes(74)1,576 
Income tax benefit221 1,307 
Net income$147 $2,883 
Net loss available to common stockholders
Net income147 2,883 
Convertible redeemable preferred stock dividends(3,910)(3,910)
Total net loss available to common stockholders$(3,763)$(1,027)
Net loss per common share:
Basic and diluted$(0.04)$(0.01)
Weighted-average number of shares used in per share calculation - Common Stock:
Basic and diluted93,580,777 83,495,247 
Comprehensive income:
Net income$147 $2,883 
Other comprehensive income (loss):
Foreign currency cumulative translation adjustment5,796 (1,731)
Total comprehensive income$5,943 $1,152 
(1) Excludes amortization of intangible assets, which is presented separately in the Consolidated Statements of Operations and Comprehensive Income.
(2) Stock-based compensation expense is included in the line items above as follows:
Three Months Ended December 31,
20222021
Cost of revenues$267 $49 
Selling and marketing217 112 
Research and development200 (83)
General and administrative280 2,614 
Total stock-based compensation expense$964 $2,692 



Reconciliation of Non-GAAP Financial Measures
The following table presents a reconciliation of GAAP net income to non-GAAP adjusted EBITDA and adjusted EBITDA margin for each of the periods identified:
Three Months Ended December 31,
20222021
(In thousands)(Unaudited)(Unaudited)
GAAP net income$147 $2,883 
Amortization of intangible assets6,773 6,172 
Depreciation4,286 3,920 
Income tax benefit(221)(1,307)
Amortization expense of finance leases489 703 
Interest expense, net255 232 
EBITDA11,729 12,603 
Adjustments:
Stock-based compensation expense964 2,692 
Amortization of cloud-computing implementation costs359 370 
Restructuring26 — 
Change in fair value of contingent consideration liability111 — 
Right-of-use asset impairment156 — 
Other income, net (1)
(1,324)(3,249)
Non-GAAP adjusted EBITDA $12,021 $12,416 
Non-GAAP adjusted EBITDA margin (2)
12.2 %12.9 %
(1) Adjustments to other income, net reflect non-cash changes in the fair value of warrants liability included in other income, net on our Consolidated Statements of Operations and Comprehensive Income.
(2) Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue reported on our Consolidated Statements of Operations and Comprehensive Income for the applicable period.



Revenues
Revenues from our two offerings of products and services are as follows:
 Year Ended December 31,
(In thousands)2022% of Revenue2021% of Revenue$ Variance% Variance
Digital Ad Solutions$212,510 56.5 %$221,979 60.5 %$(9,469)(4.3)%
Cross Platform Solutions(1)
163,913 43.5 %145,034 39.5 %18,879 13.0 %
Total revenues$376,423 100.0 %$367,013 100.0 %$9,410 2.6 %
(1) Cross Platform Solutions revenue includes revenue from our movies business, which grew from $30.6 million in the year ended December 31, 2021 to $33.9 million in the year ended December 31, 2022.


 Three Months Ended December 31,
(In thousands)2022
(Unaudited)		% of Revenue2021
(Unaudited)		% of Revenue$ Variance% Variance
Digital Ad Solutions$55,383 56.4 %$59,398 61.5 %$(4,015)(6.8)%
Cross Platform Solutions(1)
42,857 43.6 %37,139 38.5 %5,718 15.4 %
Total revenues$98,240 100.0 %$96,537 100.0 %$1,703 1.8 %
(1) Cross Platform Solutions revenue includes revenue from our movies business, which grew from $8.5 million in the fourth quarter of 2021 to $8.6 million in the fourth quarter of 2022.

 Three Months Ended (Unaudited)Year Ended
(In thousands)March 31, 2022June 30,
2022		September 30, 2022December 31, 2022December 31, 2022% of Total 2022 Revenue
Digital Ad Solutions$53,137 $51,630 $52,360 $55,383 $212,510 56.5 %
Cross Platform Solutions40,829 39,804 40,423 42,857 163,913 43.5 %
Total revenues$93,966 $91,434 $92,783 $98,240 $376,423 100.0 %