Comscore Reports First Quarter 2021 Results
First Quarter 2021 Financial Highlights
- Revenue for the first quarter was
$90.3 million compared to$89.5 million in the prior-year quarter - Net loss of
$36.4 million compared to a net loss of$13.2 million in the prior-year period; current period includes a$15.3 million non-cash charge related to the recapitalization transaction and prior year includes a$4.7 million non-cash impairment charge on certain property leases - Adjusted EBITDA of
$5.6 million compared to$6.4 million in the prior-year quarter - Repayment of
$217.0 million of debt and issuance of$204.0 million in convertible preferred stock
Recent Key Renewals, Partnerships and New Business Developments
- Syndicated Digital – New agreements with Den of Geek,
Atlas Obscura , Shinez, LATV, Pew Internet and others - National TV – Secured long-term renewals with NBCUniversal and ViacomCBS and new agreements with The Filipino Channel and Lightquest's
Victory Channel - Local TV – New agreements with
Sun Broadcasting ,Fort Myers Broadcasting , and several others. Renewed agreements with TVB, CoxReps, Katz Television, KDOC Los Angeles, Quincy Media,Sagamore Hill Broadcasting and Independence television - VOD – New agreement with DECAL
- Expanded partnership with DISH Media and Sling
- Received video viewability accreditation from
Media Rating Council for integrated third-party measurement on Facebook and Instagram - Expanded
Comscore's cookieless audience targeting solution, Predictive Audiences, with new partnerships with AdSquare and Retargetly
"Completing our investment this quarter with Charter, Qurate and Cerberus was a critical strategic step for
First Quarter Summary Results
Revenue in the first quarter of 2021 was
Ratings and Planning revenue was
Analytics and Optimization revenue was
Movies Reporting and Analytics revenue was
Expenses from cost of revenues, sales and marketing, research and development, and general and administrative were
Net loss for the first quarter of 2021 was
For the first quarter of 2021, non-GAAP adjusted EBITDA was
Balance Sheet and Liquidity
As of
2021 Outlook
Based on current trends and expectations, we continue to believe full-year 2021 revenue will increase between 3% and 5% over 2020, driven by growth in TV revenue, increased Activation, improvement in Movies and stabilization in syndicated digital. We also continue to expect an adjusted EBITDA margin of 6% to 8% for the full year 2021.
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 for financing derivatives and warrants, 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,
Management will provide commentary on the company's results in a conference call on
Following the conference call, a replay will be available by dialing +1 855-859-2056 (
About
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 2021, the continued impact of the Covid-19 pandemic on our business, new contracts and partnerships, evolving industry trends, product development and innovation, and the impact of our strategic investment transaction and revolving credit facility on our business and liquidity. 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; evolving privacy and regulatory standards; the continuing impact of the Covid-19 pandemic and related government mandates; and our ability to achieve our expected strategic, and financial and operational plans. 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
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 herein adjusted EBITDA and non-GAAP net income (loss), 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.
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share and par value data) |
|||||||
As of |
As of |
||||||
|
|
||||||
(Unaudited) |
|||||||
Assets |
|||||||
Current assets: |
|||||||
Cash and cash equivalents |
$ |
29,075 |
$ |
31,126 |
|||
Restricted cash |
4,797 |
19,615 |
|||||
Accounts receivable, net of allowances of |
61,540 |
69,379 |
|||||
Prepaid expenses and other current assets |
12,048 |
16,910 |
|||||
Total current assets |
107,460 |
137,030 |
|||||
Property and equipment, net |
30,286 |
30,973 |
|||||
Operating right-of-use assets |
30,656 |
28,959 |
|||||
|
417,339 |
418,327 |
|||||
Intangible assets, net |
45,901 |
52,340 |
|||||
Deferred tax assets |
2,787 |
2,741 |
|||||
Other non-current assets |
9,207 |
7,600 |
|||||
Total assets |
$ |
643,636 |
$ |
677,970 |
|||
Liabilities, Convertible Redeemable Preferred Stock and Stockholders' Equity |
|||||||
Current liabilities: |
|||||||
Accounts payable |
$ |
36,843 |
$ |
36,640 |
|||
Accrued expenses |
50,674 |
48,380 |
|||||
Contract liability |
54,472 |
58,529 |
|||||
Customer advances |
14,567 |
12,477 |
|||||
Warrants liability |
12,832 |
2,831 |
|||||
Current operating lease liabilities |
6,551 |
7,024 |
|||||
Secured term note |
— |
12,644 |
|||||
Other current liabilities |
5,248 |
5,750 |
|||||
Total current liabilities |
181,187 |
184,275 |
|||||
Non-current operating lease liabilities |
38,212 |
36,127 |
|||||
Non-current contract liabilities |
3,936 |
4,156 |
|||||
Deferred tax liabilities |
1,331 |
627 |
|||||
Senior secured convertible notes |
— |
192,895 |
|||||
Financing derivatives |
— |
11,300 |
|||||
Other non-current liabilities |
12,379 |
19,600 |
|||||
Total liabilities |
237,045 |
448,980 |
|||||
Commitments and contingencies |
|||||||
Convertible redeemable preferred stock, |
188,183 |
— |
|||||
Stockholders' equity: |
|||||||
Preferred stock, |
— |
— |
|||||
Common stock, |
81 |
73 |
|||||
Additional paid-in capital |
1,650,837 |
1,621,986 |
|||||
Accumulated other comprehensive loss |
(9,181) |
(7,030) |
|||||
Accumulated deficit |
(1,193,345) |
(1,156,055) |
|||||
|
(229,984) |
(229,984) |
|||||
Total stockholders' equity |
218,408 |
228,990 |
|||||
Total liabilities, convertible redeemable preferred stock and stockholders' equity |
$ |
643,636 |
$ |
677,970 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) (In thousands, except share and per share data) |
||||||||
Three Months Ended |
||||||||
2021 |
2020 |
|||||||
Revenues |
$ |
90,330 |
$ |
89,528 |
||||
Cost of revenues (1) (2) |
52,702 |
45,798 |
||||||
Selling and marketing (1) (2) |
17,827 |
19,213 |
||||||
Research and development (1) (2) |
10,353 |
10,136 |
||||||
General and administrative (1) (2) |
14,468 |
15,543 |
||||||
Amortization of intangible assets |
6,439 |
6,918 |
||||||
Impairment of right-of-use and long-lived assets |
— |
4,671 |
||||||
Total expenses from operations |
101,789 |
102,279 |
||||||
Loss from operations |
(11,459) |
(12,751) |
||||||
Loss on extinguishment of debt |
(9,629) |
— |
||||||
Other (expense) income, net |
(8,274) |
7,194 |
||||||
Interest expense, net |
(7,045) |
(8,846) |
||||||
Gain from foreign currency transactions |
1,074 |
804 |
||||||
Loss before income taxes |
(35,333) |
(13,599) |
||||||
Income tax (provision) benefit |
(1,022) |
415 |
||||||
Net loss |
$ |
(36,355) |
$ |
(13,184) |
||||
Net loss available to common stockholders: |
||||||||
Net loss |
$ |
(36,355) |
$ |
(13,184) |
||||
Convertible redeemable preferred stock dividends accrued but not yet paid |
(935) |
— |
||||||
Total net loss available to common stockholders |
$ |
(37,290) |
$ |
(13,184) |
||||
Net loss per common share: |
||||||||
Basic and diluted |
$ |
(0.49) |
$ |
(0.19) |
||||
Weighted-average number of shares used in per share calculation - Common Stock: |
||||||||
Basic and diluted |
76,147,342 |
70,127,939 |
||||||
Comprehensive loss: |
||||||||
Net loss |
$ |
(36,355) |
$ |
(13,184) |
||||
Other comprehensive loss: |
||||||||
Foreign currency cumulative translation adjustment |
(2,151) |
(2,873) |
||||||
Total comprehensive loss |
$ |
(38,506) |
$ |
(16,057) |
||||
(1) Stock-based compensation expense is included in the line items above as follows: |
||||||||
Three Months Ended |
||||||||
2021 |
2020 |
|||||||
Cost of revenues |
$ |
855 |
$ |
209 |
||||
Selling and marketing |
955 |
609 |
||||||
Research and development |
642 |
56 |
||||||
General and administrative |
2,485 |
1,784 |
||||||
Total stock-based compensation expense |
$ |
4,937 |
$ |
2,658 |
||||
(2) Excludes amortization of intangible assets, which is presented separately in the Condensed Consolidated Statements of Operations and Comprehensive Loss. |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands) |
|||||||
Three Months Ended |
|||||||
2021 |
2020 |
||||||
Operating activities: |
|||||||
Net loss |
$ |
(36,355) |
$ |
(13,184) |
|||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|||||||
Change in fair value of warrants liability |
10,001 |
(4,651) |
|||||
Loss on extinguishment of debt |
9,629 |
— |
|||||
Amortization of intangible assets |
6,439 |
6,918 |
|||||
Stock-based compensation expense |
4,937 |
2,658 |
|||||
Non-cash interest expense on senior secured convertible notes |
4,692 |
— |
|||||
Depreciation |
4,054 |
3,384 |
|||||
Accretion of debt discount |
1,620 |
1,769 |
|||||
Non-cash operating lease expense |
1,262 |
1,369 |
|||||
Deferred tax provision |
638 |
42 |
|||||
Amortization expense of finance leases |
443 |
390 |
|||||
Amortization of deferred financing costs |
320 |
348 |
|||||
Change in fair value of financing derivatives |
(1,800) |
(2,387) |
|||||
Impairment of right-of-use and long-lived assets |
— |
4,671 |
|||||
Other |
120 |
492 |
|||||
Changes in operating assets and liabilities: |
|||||||
Accounts receivable |
7,326 |
2,820 |
|||||
Prepaid expenses and other assets |
3,119 |
(1,022) |
|||||
Accounts payable, accrued expenses and other liabilities |
4,970 |
(9,522) |
|||||
Contract liabilities and customer advances |
(2,085) |
2,893 |
|||||
Operating lease liabilities |
(1,442) |
(1,769) |
|||||
Net cash provided by (used in) operating activities |
17,888 |
(4,781) |
|||||
Investing activities: |
|||||||
Capitalized internal-use software costs |
(3,535) |
(3,872) |
|||||
Purchases of property and equipment |
(157) |
(45) |
|||||
Net cash used in investing activities |
(3,692) |
(3,917) |
|||||
Financing activities: |
|||||||
Principal payment and extinguishment costs on senior secured convertible notes |
(204,014) |
— |
|||||
Principal payment and extinguishment costs on secured term note |
(14,031) |
— |
|||||
Principal payments on finance leases |
(466) |
(407) |
|||||
Principal payments on software license arrangements |
(112) |
(77) |
|||||
Payments for taxes related to net share settlement of equity awards |
(37) |
(65) |
|||||
Proceeds from issuance of convertible redeemable preferred stock, net of issuance costs |
188,183 |
— |
|||||
Net cash used in financing activities |
(30,477) |
(549) |
|||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
(588) |
(927) |
|||||
Net decrease in cash, cash equivalents and restricted cash |
(16,869) |
(10,174) |
|||||
Cash, cash equivalents and restricted cash at beginning of period |
50,741 |
66,773 |
|||||
Cash, cash equivalents and restricted cash at end of period |
$ |
33,872 |
$ |
56,599 |
|||
As of |
|||||||
2021 |
2020 |
||||||
Cash and cash equivalents |
$ |
29,075 |
$ |
36,927 |
|||
Restricted cash |
4,797 |
19,672 |
|||||
Total cash, cash equivalents and restricted cash |
$ |
33,872 |
$ |
56,599 |
Reconciliation of Non-GAAP Financial Measures
The following table presents a reconciliation of net loss (GAAP) to adjusted EBITDA for each of the periods identified:
Three Months Ended |
|||||||
(In thousands) |
2021 (Unaudited) |
2020 (Unaudited) |
|||||
Net loss (GAAP) |
$ |
(36,355) |
$ |
(13,184) |
|||
Interest expense, net |
7,045 |
8,846 |
|||||
Amortization of intangible assets |
6,439 |
6,918 |
|||||
Depreciation |
4,054 |
3,384 |
|||||
Income tax provision (benefit) |
1,022 |
(415) |
|||||
Amortization expense of finance leases |
443 |
390 |
|||||
EBITDA |
(17,352) |
5,939 |
|||||
Adjustments: |
|||||||
Loss on extinguishment of debt |
9,629 |
— |
|||||
Stock-based compensation expense |
4,937 |
2,658 |
|||||
Impairment of right-of-use and long-lived assets |
— |
4,671 |
|||||
Other expense (income), net (1) |
8,351 |
(6,892) |
|||||
Adjusted EBITDA |
$ |
5,565 |
$ |
6,376 |
(1) |
Adjustments to other expense (income), net reflect non-cash changes in the fair value of financing derivatives and warrants liability included in other (expense) income, net on our Condensed Consolidated Statements of Operations and Comprehensive Loss. |
The following table presents a reconciliation of net loss (GAAP) to non-GAAP net loss for each of the periods identified:
Three Months Ended |
|||||||
(In thousands) |
2021 (Unaudited) |
2020 (Unaudited) |
|||||
Net loss (GAAP) |
$ |
(36,355) |
$ |
(13,184) |
|||
Adjustments: |
|||||||
Loss on extinguishment of debt |
9,629 |
— |
|||||
Amortization of intangible assets |
6,439 |
6,918 |
|||||
Stock-based compensation expense |
4,937 |
2,658 |
|||||
Impairment of right-of-use and long-lived assets |
— |
4,671 |
|||||
Other expense (income), net (1) |
8,351 |
(6,892) |
|||||
Non-GAAP net loss |
$ |
(6,999) |
$ |
(5,829) |
(1) |
Adjustments to other expense (income), net reflect non-cash changes in the fair value of financing derivatives and warrants liability included in other (expense) income, net on our Condensed Consolidated Statements of Operations and Comprehensive Loss. |
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 non-GAAP net loss to the most directly comparable GAAP measure, GAAP net income (loss), on a forward-looking basis.
Revenues
Revenues from our three offerings of products and services are as follows:
Three Months Ended |
||||||||||||||||||||
(In thousands) |
2021 (Unaudited) |
% of Revenue |
2020 (Unaudited) |
% of Revenue |
$ Variance |
% Variance |
||||||||||||||
Ratings and Planning |
$ |
65,806 |
72.9 |
% |
$ |
63,521 |
71.0 |
% |
$ |
2,285 |
3.6 |
% |
||||||||
Analytics and Optimization |
17,701 |
19.6 |
% |
15,501 |
17.3 |
% |
2,200 |
14.2 |
% |
|||||||||||
Movies Reporting and Analytics |
6,823 |
7.5 |
% |
10,506 |
11.7 |
% |
(3,683) |
(35.1) |
% |
|||||||||||
Total revenues |
$ |
90,330 |
100.0 |
% |
$ |
89,528 |
100.0 |
% |
$ |
802 |
0.9 |
% |
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SOURCE
Press, Neil Ripley, Comscore, Inc., 646-746-0579, press@comscore.com; Investors, Robert Winters or Jackie Marcus, Alpha IR Group, 312-445-2870, SCOR@alpha-ir.com