Media
Kai Heslop
KCSA Strategic Communications
comscore@kcsa.com

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

COMSCORE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

As of

As of

September 30, 2023

December 31, 2022

(In thousands, except share and par value data)

(Unaudited)

Assets

Current assets:

Cash and cash equivalents

$                 30,067

$                 20,044

Restricted cash

186

398

Accounts receivable, net of allowances of $496 and $798, respectively

46,469

68,457

Prepaid expenses and other current assets

13,893

15,922

Total current assets

90,615

104,821

Property and equipment, net

41,401

36,367

Operating right-of-use assets

19,750

23,864

Deferred tax assets

3,075

3,351

Intangible assets, net

8,915

13,327

Goodwill 

343,542

387,973

Other non-current assets

11,541

10,883

Total assets

$               518,839

$               580,586

Liabilities, Convertible Redeemable Preferred Stock and Stockholders' Equity

Current liabilities:

Accounts payable

$                 32,382

$                 29,090

Accrued expenses

35,777

43,393

Contract liabilities

50,901

52,944

Revolving line of credit

16,000

—

Accrued dividends

19,846

7,863

Customer advances

7,595

11,527

Current portion of contingent consideration

3,676

7,134

Current operating lease liabilities

7,954

7,639

Other current liabilities

4,742

5,501

Total current liabilities

178,873

165,091

Non-current operating lease liabilities

24,903

29,588

Non-current portion of accrued data costs

30,647

25,106

Non-current revolving line of credit

—

16,000

Deferred tax liabilities

1,832

2,127

Other non-current liabilities

9,133

10,627

Total liabilities

245,388

248,539

Commitments and contingencies

Convertible redeemable preferred stock, $0.001 par value; 100,000,000 shares authorized and 82,527,609 shares issued and outstanding as of September 30, 2023 and 82,527,609 shares authorized, issued and outstanding as of December 31, 2022; aggregate liquidation preference of $223,846 as of September 30, 2023, and $211,863 as of December 31, 2022

187,885

187,885

Stockholders' equity:

Preferred stock, $0.001 par value; 5,000,000 shares authorized as of September 30, 2023 and 7,472,391 shares authorized as of December 31, 2022; no shares issued or outstanding as of September 30, 2023 or December 31, 2022

—

—

Common stock, $0.001 par value; 275,000,000 shares authorized as of September 30, 2023 and December 31, 2022; 101,851,130 shares issued and 95,086,334 shares outstanding as of September 30, 2023, and 98,869,738 shares issued and 92,104,942 shares outstanding as of December 31, 2022 

95

92

Additional paid-in capital

1,695,998

1,690,783

Accumulated other comprehensive loss

(16,809)

(15,940)

Accumulated deficit

(1,363,734)

(1,300,789)

Treasury stock, at cost, 6,764,796 shares as of September 30, 2023 and December 31, 2022

(229,984)

(229,984)

Total stockholders' equity

85,566

144,162

Total liabilities, convertible redeemable preferred stock and stockholders' equity

$               518,839

$               580,586

COMSCORE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(Unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

(In thousands, except share and per share data)

2023

2022

2023

2022

Revenues

$                 91,000

$                 92,783

$               276,242

$               278,183

Cost of revenues ^{(1) (2)}

50,473

51,530

155,360

155,915

Selling and marketing ^{(1) (2)}

14,794

17,199

48,984

51,850

Research and development ^{(1) (2)}

8,083

8,741

25,792

28,190

General and administrative ^{(1) (2)}

12,928

12,899

39,776

48,119

Amortization of intangible assets

800

6,772

4,412

20,323

Impairment of right-of-use and long-lived assets

1,502

—

1,502

—

Restructuring

353

5,784

5,455

5,784

Impairment of goodwill

—

46,300

44,100

46,300

Total expenses from operations

88,933

149,225

325,381

356,481

Income (loss) from operations

2,067

(56,442)

(49,139)

(78,298)

Other income, net

628

1,477

425

8,467

Gain (loss) from foreign currency transactions

1,090

2,781

(544)

5,728

Interest expense, net

(426)

(284)

(1,141)

(660)

Income (loss) before income taxes

3,359

(52,468)

(50,399)

(64,763)

Income tax (provision) benefit

(741)

86

(563)

(1,945)

Net income (loss)

$                   2,618

$               (52,382)

$               (50,962)

$               (66,708)

Net loss available to common stockholders:

Net income (loss)

$                   2,618

$               (52,382)

$               (50,962)

$               (66,708)

Convertible redeemable preferred stock dividends

(4,286)

(3,910)

(11,983)

(11,603)

Total net loss available to common stockholders

$                 (1,668)

$               (56,292)

$               (62,945)

$               (78,311)

Net loss per common share:

Basic and diluted

$                   (0.02)

$                   (0.60)

$                   (0.66)

$                   (0.85)

Weighted-average number of shares used in per share
calculation - Common Stock:

Basic and diluted

97,709,191

93,347,017

95,704,106

92,380,984

Comprehensive income (loss):

Net income (loss)

$                   2,618

$               (52,382)

$               (50,962)

$               (66,708)

Other comprehensive loss:

Foreign currency cumulative translation adjustment

(2,267)

(4,553)

(869)

(9,638)

Total comprehensive income (loss)

$                      351

$               (56,935)

$               (51,831)

$               (76,346)

⁽¹⁾ Excludes amortization of intangible assets, which is presented as a separate line item.

⁽²⁾ Stock-based compensation expense is included in the line items above as follows:

Three Months Ended September 30,

Nine Months Ended September 30,

2023

2022

2022

2022

Cost of revenues

$                      113

$                      155

$                      435

$                      877

Selling and marketing

96

132

411

804

Research and development

85

116

333

627

General and administrative

747

1,013

2,640

4,906

Total stock-based compensation expense

$                   1,041

$                   1,416

$                   3,819

$                   7,214

COMSCORE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Nine Months Ended September 30,

(In thousands)

2023

2022

Operating activities:

Net loss

$               (50,962)

$               (66,708)

Adjustments to reconcile to net cash provided by operating activities:

Impairment of goodwill

44,100

46,300

Depreciation

14,613

12,542

Amortization of intangible assets

4,412

20,323

Non-cash operating lease expense

4,196

4,540

Stock-based compensation expense

3,819

7,214

Impairment of right-of-use and long-lived assets

1,502

—

Amortization expense of finance leases

1,268

1,875

Change in fair value of contingent consideration liability

252

2,447

Change in fair value of warrants liability

(407)

(8,471)

Deferred tax benefit

(61)

(90)

Other

1,295

1,456

Changes in operating assets and liabilities:

Accounts receivable

21,899

22,143

Prepaid expenses and other assets

132

(1,081)

Accounts payable, accrued expenses and other liabilities

(2,779)

3,159

Contract liabilities and customer advances

(7,013)

(3,448)

Operating lease liabilities

(5,981)

(5,665)

Net cash provided by operating activities

30,285

36,536

Investing activities:

Capitalized internal-use software costs

(16,609)

(12,402)

Purchases of property and equipment

(1,240)

(823)

Net cash used in investing activities

(17,849)

(13,225)

Financing activities:

Principal payments on finance leases

(1,337)

(2,004)

Contingent consideration payment at initial value

(1,037)

—

Payments for dividends on convertible redeemable preferred stock

—

(15,512)

Other

(276)

(61)

Net cash used in financing activities

(2,650)

(17,577)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

25

(2,502)

Net increase in cash, cash equivalents and restricted cash

9,811

3,232

Cash, cash equivalents and restricted cash at beginning of period

20,442

22,279

Cash, cash equivalents and restricted cash at end of period

$                 30,253

$                 25,511

As of September 30,

2023

2022

Cash and cash equivalents

$                 30,067

$                 25,086

Restricted cash

186

425

Total cash, cash equivalents and restricted cash

$                 30,253

$                 25,511

Reconciliation of Non-GAAP Financial Measures

The following table presents a reconciliation of GAAP net income (loss) and net income (loss) margin to non-GAAP adjusted EBITDA, adjusted EBITDA margin and non-GAAP FX adjusted EBITDA for each of the periods identified:

Three Months Ended September 30,

Nine Months Ended September 30,

(In thousands)

2023 (Unaudited)

2022 (Unaudited)

2023 (Unaudited)

2022 (Unaudited)

GAAP net income (loss)

$               2,618

$           (52,382)

$           (50,962)

$           (66,708)

Depreciation

5,020

4,186

14,613

12,542

Income tax provision (benefit)

741

(86)

563

1,945

Amortization of intangible assets

800

6,772

4,412

20,323

Interest expense, net

426

284

1,141

660

Amortization expense of finance leases

419

515

1,268

1,875

EBITDA

10,024

(40,711)

(28,965)

(29,363)

Adjustments:

Impairment of right-of-use and long-lived assets

1,502

—

1,502

—

Stock-based compensation expense

1,041

1,416

3,819

7,214

Transformation costs ⁽¹⁾

653

—

753

460

Amortization of cloud-computing implementation costs

360

358

1,078

1,076

Restructuring

353

5,784

5,455

5,784

Change in fair value of contingent consideration liability

97

44

252

2,447

Other income, net⁽²⁾

(634)

(1,476)

(407)

(8,464)

Impairment of goodwill

—

46,300

44,100

46,300

Non-GAAP adjusted EBITDA

$             13,396

$             11,715

$             27,587

$             25,454

Net income (loss) margin⁽³⁾

2.9 %

(56.5) %

(18.4) %

(24.0) %

Non-GAAP adjusted EBITDA margin ⁽⁴⁾

14.7 %

12.6 %

10.0 %

9.2 %

Adjustments:

(Gain) loss from foreign currency transactions

(1,090)

(2,781)

544

(5,728)

Non-GAAP FX adjusted EBITDA

$             12,306

$               8,934

$             28,131

$             19,726

⁽¹⁾ Transformation costs represent expenses incurred prior to formal launch of identified strategic projects with anticipated long-term benefits to the company. These costs generally relate to third-party consulting and non-capitalizable technology costs tied directly to the identified projects. We added transformation costs as an adjustment in Q3 2023 for greater transparency around these costs and have applied the adjustment to prior periods for comparison.

⁽²⁾ Adjustments to other income, net reflects non-cash changes in the fair value of warrants liability included in other income, net on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

⁽³⁾ Net income (loss) margin is calculated by dividing net income (loss) by revenues reported on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the applicable period.

⁽⁴⁾ Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenues reported on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the applicable period.

Revenues

Revenues from our two offerings of products and services are as follows:

Three Months Ended September 30,

(In thousands)

2023
(Unaudited)

% of Revenue

2022
(Unaudited)

% of Revenue

$ Variance

% Variance

Digital Ad Solutions

$         50,501

55.5 %

$         52,360

56.4 %

$         (1,859)

(3.6) %

Cross Platform Solutions⁽¹⁾

40,499

44.5 %

40,423

43.6 %

76

0.2 %

Total revenues

$         91,000

100.0 %

$         92,783

100.0 %

$         (1,783)

(1.9) %

⁽¹⁾ Cross Platform Solutions revenue includes revenue from our movies business, which was $8.7 million in the third quarter of 2022 and 2023.

Nine Months Ended September 30,

(In thousands)

2023
(Unaudited)

% of Revenue

2022
(Unaudited)

% of Revenue

$ Variance

% Variance

Digital Ad Solutions

$       153,597

55.6 %

$       157,127

56.5 %

$         (3,530)

(2.2) %

Cross Platform Solutions⁽¹⁾

122,645

44.4 %

121,056

43.5 %

1,589

1.3 %

Total revenues

$       276,242

100.0 %

$       278,183

100.0 %

$         (1,941)

(0.7) %

⁽¹⁾ Cross Platform Solutions revenue includes revenue from our movies business, which grew from $25.3 million in the nine months ended September 30, 2022 to $26.2 million in the nine months ended September 30, 2023.