Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549



FORM 8-K



CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): November 8, 2018

 

comScore, Inc.
(Exact name of registrant as specified in charter)

 


 
 
 
 
 
Delaware
 
001–33520
 
54–1955550
(State or other jurisdiction
of incorporation)
 
(Commission
File Number)
 
(IRS Employer
Identification No.)
11950 Democracy Drive
Suite 600
Reston, Virginia 20190
(Address of principal executive offices, including zip code)
(703) 438–2000
(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report)


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 

1


Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.



2



Item 2.02 Results of Operations and Financial Condition.
On November 8, 2018, comScore, Inc. issued a press release announcing its financial results for the period ended September 30, 2018. A copy of the press release announcing the foregoing is furnished as Exhibit 99.1 hereto and is incorporated herein by reference.
The information in this Item 2.02, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.

Exhibit No.
 
Description
99.1
 

3



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
 
 
comScore, Inc.
 
 
By:
 
/s/ Carol A. DiBattiste
 
 
Carol A. DiBattiste
 
 
General Counsel & Chief Compliance, Privacy and People Officer
Date: November 8, 2018

4
Exhibit

Exhibit 99.1

http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12539676&doc=3
FOR IMMEDIATE RELEASE

Comscore Reports Third Quarter 2018 Results
Revenue growth driven by emerging products; strategic transformation continues

RESTON, VA., Nov. 8, 2018 - Comscore, Inc. (NASDAQ: SCOR), a trusted partner for planning, transacting, and evaluating media across platforms, today reported financial results for the third quarter of 2018, ended September 30, 2018.

Financial and Operational Highlights
Total year-over-year revenue growth of 2.5%, driven by TV and cross-platform growth of 25%.
Gross profit improvement, reflecting relatively flat costs on increased revenue.
SG&A costs of $43.6 million, or 42% of revenue, compared to $52.2 million, or 52% of revenue in the year-ago quarter.
GAAP net loss of $24.6 million, or $(0.42) per share, compared to $130.1 million, or $(2.26) per share in the year-ago quarter.
Adjusted EBITDA of $5.2 million, compared to an adjusted EBITDA loss of $5.0 million in the year-ago quarter.
Cash, cash equivalents and restricted cash of $54.2 million, compared to $45.1 million as of December 31, 2017.
Comscore to host Investor Day on November 13 in New York.

"We are pleased with our performance and progress on our strategic initiatives during the third quarter. We drove revenue growth and made significant progress in streamlining our cost structure, as evidenced by our third straight quarter of positive adjusted EBITDA," said Bryan Wiener, CEO of Comscore. "Fundamental changes in the media ecosystem require a modern measurement partner to help businesses transact media with confidence. We believe our strategic plan positions us to be that trusted partner for today and in the future.”

Summary Results
Total revenue in the third quarter of 2018 was $102.9 million, up from $100.3 million in the year-ago quarter. The third quarter financials reflect the three new categories in which Comscore will analyze customers and revenue moving forward. These new categories better reflect solution groups that address customer needs.

Ratings and Planning revenue is composed of revenue from digital, TV and cross-platform products. Ratings and Planning revenue increased to $70.5 million in the third quarter, compared to $69.5 million in the year-ago quarter. The increase was primarily from TV products due to increases in existing customer contract values. This was offset by lower revenues in digital products that continued to be negatively impacted by ongoing industry changes in ad buying and consolidation.

Analytics and Optimization revenue increased to $22.2 million in the third quarter, compared to $21.2 million in the year-ago quarter. Revenue increased primarily due to increases in emerging products (including activation), partially offset by lower revenue from digital custom offerings.

Movies Reporting and Analytics revenue increased to $10.2 million in the third quarter, compared to $9.7 million in the year-ago quarter. Revenue increased as the company’s global footprint remained strong and products continued to result in higher contract pricing.

GAAP net loss for the third quarter of 2018 was $24.6 million, or $(0.42) per share, compared to $130.1 million, or $(2.26) per share reported in the year-ago quarter. The improvement was driven primarily by an $81.8 million non-



recurring legal settlement in the year-ago quarter, as well as continued cost discipline in selling and marketing, research and development, and G&A, and a decrease in investigation and audit-related costs.

For the third quarter of 2018, Comscore generated non-GAAP adjusted EBITDA of $5.2 million, which includes a larger than normal $1.6 million payment received from a prior-year patent settlement and excludes stock-based compensation expense, change in fair value of financing derivatives, and other items as presented in the accompanying tables. This compares to an adjusted EBITDA loss of $5.0 million in the year-ago quarter.

Balance Sheet and Liquidity
As of September 30, 2018, total debt principal, composed of senior secured convertible notes, was $202.0 million. Cash, cash equivalents and restricted cash at the end of the third quarter were $54.2 million, including $6.3 million in restricted cash.

Business Outlook
In the fourth quarter of 2018, Comscore expects revenue to increase modestly and adjusted EBITDA to be positive for the fourth straight quarter and at the lower end of the range of the first three quarters of 2018, excluding the $1.6 million patent payment received in the third quarter. Looking forward, management is focused on streamlining the company’s cost structure to fund critical investments in product development and drive revenue growth in 2019 and beyond.

Comscore plans to provide 2019 and multi-year financial guidance at its Investor Day hosted on November 13th in NYC and live streamed on ir.comscore.com/events-presentations. Presentation materials and an archived replay will be available for approximately 90 days following the event at the same link.

Conference Call information for today, Thursday, November 8 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 +1 844-229-7593 (domestic) or +1 314-888-4258 (international) and reference conference ID #2195848. Participants are advised to dial in at least 10 minutes prior to the call to register. Additionally, a live webcast of the conference call will be available on the Investor Relations section of the company's website at ir.comscore.com/events-presentations. Following the conference call, a replay will be available by dialing +1 855-859-2056 (domestic) or +1 404-537-3406 (international) with passcode #2195848. The replay will also be available via webcast at ir.comscore.com/events-presentations.

About Comscore
Comscore (NASDAQ: SCOR) 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 set-top box audiences and advertising at scale, Comscore is the industry's emerging, third-party source for reliable and comprehensive cross-platform measurement. To learn more about Comscore, please visit www.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, forecasts, plans and opinions regarding business and market opportunities, product development and innovation, financial performance, operational improvements and strategic plans, in particular Comscore’s plans regarding customer needs, market positioning and revenue presentation and expectations regarding future revenue and adjusted EBITDA performance. 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, and expressly disclaims, 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, except as required by applicable law.

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 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.

Media Contact
Hattie Young
(212) 277-6577
press@comscore.com

Investor Relations Contact
Steve Calk or Chris Donovan
Alpha IR Group
(312) 445-2870
SCOR@alpha-ir.com




COMSCORE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
 
As of
 
As of
 
September 30, 2018
 
December 31, 2017
 
(Unaudited)
 
 
Assets
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
47,876

 
$
37,859

Restricted cash
6,338

 
7,266

Accounts receivable, net of allowances of $1,073 and $1,991, respectively ($2,759 and $2,899 of accounts receivable attributable to related parties, respectively)
61,900

 
82,029

Prepaid expenses and other current assets
20,254

 
15,168

Insurance recoverable on litigation settlements

 
37,232

Total current assets
136,368

 
179,554

Property and equipment, net
27,315

 
28,893

Other non-current assets
9,572

 
7,259

Deferred tax assets
3,591

 
4,532

Intangible assets, net
135,110

 
159,777

Goodwill
641,594

 
642,424

Total assets
$
953,550

 
$
1,022,439

Liabilities and Stockholders' Equity
 
 
 
Current liabilities:
 
 
 
Accounts payable ($1,467 and $2,715 attributable to related parties, respectively)
$
19,716

 
$
27,889

Accrued expenses ($5,089 and $5,857 attributable to related parties, respectively)
48,352

 
86,031

Accrued litigation settlements
4,375

 
27,718

Other current liabilities
8,029

 
10,485

Customer advances ($2,188 and $2,755 attributable to related parties, respectively)
72,119

 
98,367

Total current liabilities
152,591

 
250,490

Financing derivatives (related party)
21,800

 

Senior secured convertible notes (related party)
175,850

 

Deferred tax liabilities
6,033

 
3,641

Accrued litigation settlements
875

 
90,800

Other non-current liabilities
27,859

 
21,016

Total liabilities
385,008

 
365,947

Commitments and contingencies
 
 
 
Stockholders’ equity:
 
 
 
Preferred stock, $0.001 par value per share; 5,000,000 shares authorized at September 30, 2018 and December 31, 2017; no shares issued or outstanding as of September 30, 2018 and December 31, 2017

 

Common stock, $0.001 par value per share; 150,000,000 shares authorized as of September 30, 2018 and 100,000,000 shares authorized as of December 31, 2017; 65,664,431 shares issued and 58,899,635 shares outstanding as of September 30, 2018, and 60,053,843 shares issued and 57,289,047 shares outstanding as of December 31, 2017
59

 
60

Additional paid-in capital
1,549,371

 
1,407,717

Accumulated other comprehensive loss
(9,013
)
 
(6,224
)
Accumulated deficit
(741,891
)
 
(609,091
)
Treasury stock, at cost, 6,764,796 and 2,764,796 shares as of September 30, 2018 and December 31, 2017, respectively
(229,984
)
 
(135,970
)
Total stockholders’ equity
568,542

 
656,492

Total liabilities and stockholders’ equity
$
953,550

 
$
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 September 30,
 
Nine Months Ended September 30,
 
 
2018
 
2017
 
2018
 
2017
Revenues (1)
 
$
102,864

 
$
100,323

 
$
310,172

 
$
300,623

 
 
 
 
 
 
 
 
 
Cost of revenues (1) (2) (3)
 
49,446

 
48,803

 
148,226

 
143,417

Selling and marketing (1) (2) (3)
 
24,866

 
29,873

 
80,418

 
90,796

Research and development (1) (2) (3)
 
18,742

 
21,580

 
58,347

 
64,102

General and administrative (1) (2) (3)
 
18,707

 
22,331

 
66,067

 
53,426

Investigation and audit related (1)
 
696

 
21,392

 
37,446

 
56,469

Amortization of intangible assets
 
7,896

 
8,491

 
24,706

 
25,669

Settlement of litigation, net
 

 
81,799

 
5,250

 
82,417

Restructuring
 
51

 

 
5,141

 

Total expenses from operations
 
120,404

 
234,269

 
425,601

 
516,296

Loss from operations
 
(17,540
)
 
(133,946
)
 
(115,429
)
 
(215,673
)
Interest expense, net (1)
 
(4,682
)
 
(148
)
 
(11,711
)
 
(554
)
Other (expense) income, net
 
(1,711
)
 
6,619

 
(827
)
 
12,486

Loss from foreign currency transactions
 
(304
)
 
(298
)
 
(181
)
 
(1,523
)
Loss before income taxes
 
(24,237
)
 
(127,773
)
 
(128,148
)
 
(205,264
)
Income tax provision
 
(400
)
 
(2,296
)
 
(3,916
)
 
(4,223
)
Net loss
 
$
(24,637
)
 
$
(130,069
)
 
$
(132,064
)
 
$
(209,487
)
Net loss per common share:
 
 
 
 
 
 
 
 
Basic
 
$
(0.42
)
 
$
(2.26
)
 
$
(2.32
)
 
$
(3.65
)
Diluted
 
$
(0.42
)
 
$
(2.26
)
 
$
(2.32
)
 
$
(3.65
)
Weighted-average number of shares used in per share calculation - Common Stock:
 
 
 
 
 
 
 
 
Basic
 
58,212,306

 
57,547,863

 
56,877,186

 
57,442,180

Diluted
 
58,212,306

 
57,547,863

 
56,877,186

 
57,442,180

Comprehensive loss:
 
 
 
 
 
 
 
 
Net loss
 
$
(24,637
)
 
$
(130,069
)
 
$
(132,064
)
 
$
(209,487
)
Other comprehensive (loss) income:
 
 
 
 
 
 
 
 
Foreign currency cumulative translation adjustment
 
(429
)
 
1,349

 
(2,789
)
 
4,304

Other
 

 
23

 

 
57

Total comprehensive loss
 
$
(25,066
)
 
$
(128,697
)
 
$
(134,853
)
 
$
(205,126
)
 
 
 
 
 
 
 
 
 
(1) Transactions with related parties are included in the line items above.
(2) Stock-based compensation expense is included in the line items above as follows:
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2018
 
2017
 
2018
 
2017
Cost of revenues
 
$
1,248

 
$
384

 
$
5,235

 
$
1,446

Selling and marketing
 
1,860

 
1,461

 
8,227

 
4,439

Research and development
 
1,137

 
537

 
5,453

 
1,808

General and administrative
 
2,066

 
6,340

 
12,276

 
7,673

 
 
$
6,311

 
$
8,722

 
$
31,191

 
$
15,366

 
 
 
 
 
 
 
 
 
(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)
 
Nine Months Ended September 30,
 
2018
 
2017
Operating activities:
 
 
 
Net loss
$
(132,064
)
 
$
(209,487
)
Adjustments to reconcile net loss to net cash used in operating activities:
 
 
 
Depreciation
12,974

 
18,229

Amortization of intangible assets
24,706

 
25,669

Stock-based compensation
31,191

 
15,366

Deferred tax provision
2,828

 
3,787

Change in fair value of financing derivatives
10,141

 

Accretion of debt discount
3,327

 

Amortization of deferred financing costs
703

 

Gain on forgiveness of obligation

 
(4,000
)
Accrued litigation settlements to be settled in Common Stock

 
90,800

Other
253

 
646

Changes in operating assets and liabilities:
 
 
 
Accounts receivable
19,480

 
22,731

Prepaid expenses and other assets
3,502

 
(34,593
)
Accounts payable, accrued expenses, and other liabilities
(22,449
)
 
50,214

Customer advances
(28,531
)
 
(7,063
)
Net cash used in operating activities
(73,939
)
 
(27,701
)
 
 
 
 
Investing activities:
 
 
 
Sales of marketable securities

 
15,000

Purchases of property and equipment
(2,183
)
 
(7,596
)
Capitalized internal-use software costs
(7,447
)
 

Net cash (used in) provided by investing activities
(9,630
)
 
7,404

 
 
 
 
Financing activities:
 
 
 
Proceeds from borrowings on senior secured convertible notes (related party)
100,000

 

Debt issuance costs
(5,132
)
 

Financing proceeds received on subscription receivable (related party)
7,998

 
9,011

Proceeds from the exercise of stock options
2,855

 

Payments for taxes related to net share settlement of equity awards
(4,663
)
 
(1,514
)
Principal payments on capital lease and software license arrangements
(7,260
)
 
(12,699
)
Net cash provided by (used in) financing activities
93,798

 
(5,202
)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
(1,140
)
 
595

Net increase (decrease) in cash, cash equivalents and restricted cash
9,089

 
(24,904
)
Cash, cash equivalents and restricted cash at beginning of period
45,125

 
88,341

Cash, cash equivalents and restricted cash at end of period
$
54,214

 
$
63,437

 
 
 
 
 
As of September 30,
 
2018
 
2017
Cash and cash equivalents
$
47,876

 
$
54,782

Restricted cash
6,338

 
8,655

Total cash, cash equivalents and restricted cash
$
54,214

 
$
63,437




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 September 30,
 
Nine Months Ended September 30,
(In thousands)
2018
 
2017
 
2018
 
2017
Net loss (GAAP)
$
(24,637
)
 
$
(130,069
)
 
$
(132,064
)
 
$
(209,487
)
 
 
 
 
 
 
 
 
Income tax provision
400

 
2,296

 
3,916

 
4,223

Interest expense, net
4,682

 
148

 
11,711

 
554

Depreciation
4,135

 
6,233

 
12,974

 
18,229

Amortization of intangible assets
7,896

 
8,491

 
24,706

 
25,669

EBITDA
(7,524
)
 
(112,901
)
 
(78,757
)
 
(160,812
)
 
 
 
 
 
 
 
 
Adjustments:
 
 
 
 
 
 
 
Stock-based compensation
6,311

 
8,722

 
31,191

 
15,366

Investigation and audit related
696

 
21,392

 
37,446

 
56,469

Settlement of litigation, net

 
81,799

 
5,250

 
82,417

Restructuring costs
51

 

 
5,141

 

Other expense (income), net (1)
5,699

 
(3,963
)
 
9,834

 
(4,003
)
Adjusted EBITDA
$
5,233

 
$
(4,951
)
 
$
10,105

 
$
(10,563
)
(1) In 2018, adjustments to other expense (income), net, reflect non-cash changes in the fair value of financing derivatives and equity securities investment included in other (expense) 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 expense (income), net reflects items classified as other (expense) income, net on our Condensed Consolidated Statements of Operations and Comprehensive Loss, excluding the other income associated with the transition services agreement for the Digital Analytix ("DAx") disposition. Our change to the calculation of adjusted EBITDA for 2018 is intended to conform adjusted EBITDA to the Consolidated EBITDA definition under our senior secured convertible notes issued to funds affiliated with or managed by Starboard Value LP.
The following table presents a reconciliation of net loss (GAAP) to non-GAAP net loss for each of the periods identified:

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(In thousands)
2018
 
2017
 
2018
 
2017
Net loss (GAAP)
$
(24,637
)
 
$
(130,069
)
 
$
(132,064
)
 
$
(209,487
)
 
 
 
 
 
 
 
 
Adjustments:
 
 
 
 
 
 
 
Stock-based compensation
6,311

 
8,722

 
31,191

 
15,366

Investigation and audit related
696

 
21,392

 
37,446

 
56,469

Settlement of litigation, net

 
81,799

 
5,250

 
82,417

Restructuring costs
51

 

 
5,141

 

Other expense (income), net (1)
5,699

 
(3,963
)
 
9,834

 
(4,003
)
Non-GAAP net loss
$
(11,880
)
 
$
(22,119
)
 
$
(43,202
)
 
$
(59,238
)
(1) In 2018, adjustments to other expense (income), net, reflect non-cash changes in the fair value of financing derivatives and equity securities investment included in other (expense) 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 expense (income), net reflects items classified as other (expense) 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.





Supplemental Non-GAAP Disclosure
The following tables present 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 September 30,
(In thousands)
2018
 
2017
 
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 (1)
$
102,864

 
 
 
 
 
100.0
%
 
$
100,323

 
 
 
 
 
100.0
%
Cost of revenues
49,446

 
$
1,248

 
$
48,198

 
46.9
%
 
48,803

 
$
384

 
$
48,419

 
48.3
%
Selling and marketing
24,866

 
1,860

 
23,006

 
22.4
%
 
29,873

 
1,461

 
28,412

 
28.3
%
Research and development
18,742

 
1,137

 
17,605

 
17.1
%
 
21,580

 
537

 
21,043

 
21.0
%
General and administrative
18,707

 
2,066

 
16,641

 
16.2
%
 
22,331

 
6,340

 
15,991

 
15.9
%

 
Nine Months Ended September 30,
(In thousands)
2018
 
2017
 
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 (1)
$
310,172

 
 
 
 
 
100.0
%
 
$
300,623

 
 
 
 
 
100.0
%
Cost of revenues
148,226

 
$
5,235

 
$
142,991

 
46.1
%
 
143,417

 
$
1,446

 
$
141,971

 
47.2
%
Selling and marketing
80,418

 
8,227

 
72,191

 
23.3
%
 
90,796

 
4,439

 
86,357

 
28.7
%
Research and development
58,347

 
5,453

 
52,894

 
17.1
%
 
64,102

 
1,808

 
62,294

 
20.7
%
General and administrative
66,067

 
12,276

 
53,791

 
17.3
%
 
53,426

 
7,673

 
45,753

 
15.2
%
(1) Revenue in 2017 is not comparable to revenue in 2018 due to our adoption of ASC 606.




Revenues
Revenues from our three offerings of products and services are as follows:
 
Three Months Ended September 30,
 
 
 
 
(In thousands)
2018
 
% of Revenue
 
2017 (1)
 
% of Revenue
 
$ Variance
 
% Variance
Ratings and Planning
$
70,499

 
68.4
%
 
$
69,483

 
69.3
%
 
$
1,016

 
1.5
%
Analytics and Optimization
22,215

 
21.6
%
 
21,175

 
21.1
%
 
1,040

 
4.9
%
Movies Reporting and Analytics
10,150

 
10.0
%
 
9,665

 
9.6
%
 
485

 
5.0
%
Total revenues
$
102,864

 
100
%
 
$
100,323

 
100
%
 
$
2,541

 
2.5
%

 
Nine Months Ended September 30,
 
 
 
 
(In thousands)
2018
 
% of Revenue
 
2017 (1)
 
% of Revenue
 
$ Variance
 
% Variance
Ratings and Planning
$
210,569

 
67.9
%
 
$
206,464

 
68.7
%
 
$
4,105

 
2.0
%
Analytics and Optimization
68,479

 
22.1
%
 
65,922

 
21.9
%
 
2,557

 
3.9
%
Movies Reporting and Analytics
31,124

 
10.0
%
 
28,237

 
9.4
%
 
2,887

 
10.2
%
Total revenues
$
310,172

 
100
%
 
$
300,623

 
100
%
 
$
9,549

 
3.2
%

Revenues from our three offerings of products and services for each quarter in 2018 and 2017 are as follows:
 
Three Months Ended,
 
Nine Months Ended,
(In thousands)
March 31, 2018
 
June 30, 2018
 
September 30, 2018
 
September 30, 2018
Ratings and Planning
$
69,569

 
$
70,501

 
$
70,499

 
$
210,569

Analytics and Optimization
25,731

 
20,533

 
22,215

 
68,479

Movies Reporting and Analytics
10,619

 
10,355

 
10,150

 
31,124

Total revenues
$
105,919

 
$
101,389

 
$
102,864

 
$
310,172

 
Three Months Ended,
 
Fiscal Year Ended,
(In thousands)
March 31, 2017 (1)
 
June 30, 2017(1)
 
September 30, 2017(1)
 
December 31, 2017(1)
 
December 31, 2017(1)
Ratings and Planning
$
67,765

 
$
69,216

 
$
69,483

 
$
71,617

 
$
278,081

Analytics and Optimization
23,726

 
21,021

 
21,175

 
20,843

 
86,765

Movies Reporting and Analytics
9,370

 
9,202

 
9,665

 
10,466

 
38,703

Total revenues
$
100,861

 
$
99,439

 
$
100,323

 
$
102,926

 
$
403,549


For the three and nine months ended September 30, 2018, revenues from our previously disclosed four offerings of products and services would have been as follows:
 
Three Months Ended September 30,
 
 
 
 
(In thousands)
2018
 
% of Revenue
 
2017(1)
 
% of Revenue
 
$ Variance
 
% Variance
Digital Audience
$
49,467

 
48.1
%
 
$
55,430

 
55.3
%
 
$
(5,963
)
 
(10.8
)%
TV and Cross-Platform
29,775

 
28.9
%
 
23,754

 
23.7
%
 
6,021

 
25.3
 %
Advertising
13,472

 
13.1
%
 
11,474

 
11.4
%
 
1,998

 
17.4
 %
Movies
10,150

 
9.9
%
 
9,665

 
9.6
%
 
485

 
5.0
 %
Total revenues
$
102,864

 
100
%
 
$
100,323

 
100
%
 
$
2,541

 
2.5
 %



 
Nine Months Ended September 30,
 
 
 
 
(In thousands)
2018
 
% of Revenue
 
2017(1)
 
% of Revenue
 
$ Variance
 
% Variance
Digital Audience
$
157,137

 
50.7
%
 
$
167,733

 
55.8
%
 
$
(10,596
)
 
(6.3
)%
TV and Cross-Platform
84,547

 
27.3
%
 
71,138

 
23.7
%
 
13,409

 
18.8
 %
Advertising
37,365

 
12.0
%
 
33,515

 
11.1
%
 
3,850

 
11.5
 %
Movies
31,123

 
10.0
%
 
28,237

 
9.4
%
 
2,886

 
10.2
 %
Total revenues
$
310,172

 
100
%
 
$
300,623

 
100
%
 
$
9,549

 
3.2
 %

(1) Revenue in 2017 is not comparable to revenue in 2018 due to our adoption of ASC 606.