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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________________________________
FORM 10-Q
_____________________________________________
(Mark One)
| | | | | |
| ☑ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended September 30, 2020
or
| | | | | |
| ☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission file number: 001-33520
_____________________________________________
comScore, Inc.
(Exact name of registrant as specified in its charter)
_____________________________________________
| | | | | | | | |
| Delaware | | 54-1955550 |
| (State or other jurisdiction of incorporation or organization) | | (I.R.S. Employer Identification Number) |
11950 Democracy Drive, Suite 600
Reston, Virginia 20190
(Address of Principal Executive Offices)
(703) 438-2000
(Registrant's Telephone Number, Including Area Code)
_____________________________________________
Securities registered pursuant to Section 12(b) of the Act:
| | | | | | | | | | | | | | |
| Title of Each Class | | Trading Symbol | | Name of Each Exchange on Which Registered |
| Common Stock, par value $0.001 per share | | SCOR | | NASDAQ Global Select Market |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
| | | | | | | | | | | | | | | | | | | | |
| Large accelerated filer | | ☐ | | Accelerated filer | | ☑ |
| Non-accelerated filer | | ☐ | | Smaller reporting company | | ☐ |
| | | | 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. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑
Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date: As of November 5, 2020, there were 72,786,545 shares of the registrant's Common Stock outstanding.
COMSCORE, INC.
QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED SEPTEMBER 30, 2020
TABLE OF CONTENTS
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
We may make certain statements, including in this Quarterly Report on Form 10-Q, or 10-Q, including the information contained in Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations", and the information incorporated by reference in this 10-Q, that constitute forward-looking statements within the meaning of federal and state securities laws. Forward-looking statements are all statements other than statements of historical fact. We attempt to identify these forward-looking statements by words such as "may," "will," "should," "could," "might," "expect," "plan," "anticipate," "believe," "estimate," "target," "goal," "predict," "intend," "potential," "continue," "seek" and other comparable words. Similarly, statements that describe our business strategy, goals, prospects, opportunities, outlook, objectives, plans or intentions are also forward-looking statements. These statements may relate to, but are not limited to, expectations of future operating results or financial performance; expectations regarding the impact on our business of the COVID-19 pandemic and global measures to mitigate the spread of the virus; macroeconomic trends that we expect may influence our business, including any recession resulting from the COVID-19 pandemic; plans for business continuity, financing and capital expenditures; expectations regarding liquidity, customer payments and compliance with financing covenants and other payment obligations; expectations regarding the introduction of new products; effects of restructuring, remote work arrangements and other employment actions; regulatory compliance and expected changes in the regulatory or privacy landscape affecting our business; expected impact of litigation and regulatory proceedings; plans for stabilization, growth and future operations; effects of acquisitions, divestitures and partnerships; expectations regarding a potential recapitalization transaction, reduction in outstanding indebtedness, and enhanced commercial relationships; as well as assumptions relating to the foregoing. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. These statements are based on expectations and assumptions as of the date of this 10-Q regarding future events and business performance and involve known and unknown risks, uncertainties and other factors that may cause actual events or results to be materially different from any future events or results expressed or implied by these statements. These factors include those set forth in the following discussion and within Item 1A, "Risk Factors" of this 10-Q and elsewhere within this report; those identified within Item 1A, "Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2019; those identified within Item 1A, "Risk Factors" of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020; those identified within Item 1A, "Risk Factors" of our Quarterly Report on Form 10-Q for the quarter ended June 30, 2020; and those identified in other documents that we file from time to time with the U.S. Securities and Exchange Commission, or SEC. We believe that it is important to communicate our future expectations to our investors. However, there may be events in the future that we are not able to accurately predict or control and that may cause our actual results to differ materially from the expectations we describe in our forward-looking statements. You should not place undue reliance on forward-looking statements, which apply only as of the date of this 10-Q. You should carefully review the risk factors described in this 10-Q and in other documents that we file from time to time with the SEC. Except as required by applicable law, including the rules and regulations of the SEC, we undertake no obligation, and expressly disclaim any duty, to publicly update or revise forward-looking statements, whether as a result of any new information, future events or otherwise. Although we believe the expectations reflected in the forward-looking statements are reasonable as of the date of this 10-Q, our statements are not guarantees of future results, levels of activity, performance, or achievements, and actual outcomes and results may differ materially from those expressed in, or implied by, any of our statements.
PART I. FINANCIAL INFORMATION
| | | | | |
| ITEM 1. | FINANCIAL STATEMENTS |
COMSCORE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
| | | | | | | | | | | | | | |
| | As of | | As of |
| | | September 30, 2020 | | December 31, 2019 |
| | (Unaudited) | | |
| Assets | | | | |
| Current assets: | | | | |
| Cash and cash equivalents | | $ | 32,221 | | | $ | 46,590 | |
| Restricted cash | | 19,613 | | | 20,183 | |
| | | | |
Accounts receivable, net of allowances of $2,763 and $1,919, respectively ($2,405 and $2,698 of accounts receivable attributable to related parties, respectively) | | 59,808 | | | 71,853 | |
Prepaid expenses and other current assets ($1,181 and $1,180 attributable to related parties, respectively) | | 16,217 | | | 15,357 | |
| | | | |
| | | | |
| | | | |
| Total current assets | | 127,859 | | | 153,983 | |
| Property and equipment, net | | 31,269 | | | 31,693 | |
| Operating right-of-use assets | | 30,216 | | | 36,689 | |
| Other non-current assets | | 4,641 | | | 2,979 | |
| Deferred tax assets | | 2,131 | | | 2,374 | |
| | | | |
| Intangible assets, net | | 59,041 | | | 79,559 | |
| Goodwill | | 417,065 | | | 416,418 | |
| Total assets | | $ | 672,222 | | | $ | 723,695 | |
| Liabilities and Stockholders' Equity | | | | |
| Current liabilities: | | | | |
Accounts payable ($2,523 and $2,510 attributable to related parties, respectively) | | $ | 42,130 | | | $ | 44,804 | |
Accrued expenses ($3,224 and $6,902 attributable to related parties, respectively) | | 47,593 | | | 55,507 | |
| | | | |
Contract liabilities ($1,956 and $1,519 attributable to related parties, respectively) | | 50,040 | | | 58,158 | |
| Customer advances | | 8,483 | | | 9,886 | |
| Warrants liability | | 1,960 | | | 7,725 | |
| Current operating lease liabilities | | 6,886 | | | 6,764 | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| Other current liabilities | | 5,549 | | | 7,393 | |
| Total current liabilities | | 162,641 | | | 190,237 | |
| Secured term note | | 12,565 | | | 12,463 | |
| Financing derivatives (related parties) | | 14,700 | | | 21,587 | |
| Senior secured convertible notes (related parties) | | 190,533 | | | 184,075 | |
| Non-current operating lease liabilities | | 37,868 | | | 42,497 | |
| | | | |
| | | | |
| Non-current contract liabilities | | 4,026 | | | 291 | |
| Deferred tax liabilities | | 501 | | | 287 | |
| | | | |
| | | | |
| | | | |
Other non-current liabilities ($3,060 and $— attributable to related parties, respectively) | | 15,434 | | | 13,284 | |
| Total liabilities | | 438,268 | | | 464,721 | |
| Commitments and contingencies | | | | |
| Stockholders' equity: | | | | |
Preferred stock, $0.001 par value per share; 5,000,000 shares authorized at September 30, 2020 and December 31, 2019; no shares issued or outstanding as of September 30, 2020 and December 31, 2019 | | — | | | — | |
Common stock, $0.001 par value per share; 150,000,000 shares authorized as of September 30, 2020 and December 31, 2019; 78,077,140 shares issued and 71,312,344 shares outstanding as of September 30, 2020, and 76,829,926 shares issued and 70,065,130 shares outstanding as of December 31, 2019 | | 71 | | | 70 | |
| Additional paid-in capital | | 1,617,602 | | | 1,609,358 | |
| Accumulated other comprehensive loss | | (10,892) | | | (12,333) | |
| Accumulated deficit | | (1,142,843) | | | (1,108,137) | |
Treasury stock, at cost, 6,764,796 shares as of September 30, 2020 and December 31, 2019 | | (229,984) | | | (229,984) | |
| Total stockholders' equity | | 233,954 | | | 258,974 | |
| Total liabilities and stockholders' equity | | $ | 672,222 | | | $ | 723,695 | |
See accompanying Notes to Condensed Consolidated Financial Statements.
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, |
| | 2020 | | 2019 | | 2020 | | 2019 |
Revenues (1) | | $ | 87,952 | | | $ | 94,300 | | | $ | 266,046 | | | $ | 293,482 | |
| | | | | | | | |
Cost of revenues (1) (2) (3) (4) | | 46,466 | | | 47,390 | | | 137,213 | | | 152,791 | |
Selling and marketing (2) (3) (4) | | 17,131 | | | 20,421 | | | 52,351 | | | 68,590 | |
Research and development (2) (3) (4) | | 9,501 | | | 14,064 | | | 29,402 | | | 49,163 | |
General and administrative (1) (2) (3) (4) | | 12,136 | | | 14,064 | | | 41,420 | | | 50,541 | |
| Amortization of intangible assets | | 6,750 | | | 6,970 | | | 20,514 | | | 23,151 | |
Restructuring (3) | | — | | | 2,270 | | | — | | | 5,149 | |
| Investigation and audit related | | — | | | 980 | | | — | | | 4,176 | |
| Settlement of litigation, net | | — | | | (2,100) | | | — | | | 2,900 | |
| Impairment of right-of-use and long-lived assets | | — | | | — | | | 4,671 | | | — | |
| Impairment of goodwill | | — | | | — | | | — | | | 224,272 | |
| Impairment of intangible asset | | — | | | — | | | — | | | 17,308 | |
| Total expenses from operations | | 91,984 | | | 104,059 | | | 285,571 | | | 598,041 | |
| Loss from operations | | (4,032) | | | (9,759) | | | (19,525) | | | (304,559) | |
Interest expense, net (1) | | (9,027) | | | (8,175) | | | (26,729) | | | (23,176) | |
| Other income, net | | 4,191 | | | 6,733 | | | 12,862 | | | 6,621 | |
| (Loss) gain from foreign currency transactions | | (2,012) | | | 1,194 | | | (2,152) | | | 768 | |
| Loss before income taxes | | (10,880) | | | (10,007) | | | (35,544) | | | (320,346) | |
| Income tax (provision) benefit | | (241) | | | (552) | | | 838 | | | 2,740 | |
| Net loss | | $ | (11,121) | | | $ | (10,559) | | | $ | (34,706) | | | $ | (317,606) | |
| Net loss per common share: | | | | | | | | |
| Basic and diluted | | $ | (0.16) | | | $ | (0.16) | | | $ | (0.49) | | | $ | (5.16) | |
| | | | | | | | | | | | | | | |
| Weighted-average number of shares used in per share calculation - Common Stock: | | | | | | | | |
| Basic and diluted | | 71,222,122 | | | 64,157,167 | | | 70,638,292 | | | 61,603,357 | |
| | | | | | | | | | | | | | | |
| Comprehensive loss: | | | | | | | | |
| Net loss | | $ | (11,121) | | | $ | (10,559) | | | $ | (34,706) | | | $ | (317,606) | |
| Other comprehensive loss: | | | | | | | | |
| Foreign currency cumulative translation adjustment | | 2,750 | | | (2,950) | | | 1,441 | | | (2,894) | |
| | | | | | | | |
| Total comprehensive loss | | $ | (8,371) | | | $ | (13,509) | | | $ | (33,265) | | | $ | (320,500) | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
(1) Transactions with related parties are included in the line items above (refer to Footnote 8, Related Party Transactions, of the Notes to Condensed Consolidated Financial Statements for additional information). |
|
| (2) Excludes amortization of intangible assets, which is presented as a separate line item. |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| (3) Stock-based compensation expense is included in the line items above as follows: |
| | | | |
| | Three Months Ended September 30, | | Nine Months Ended September 30, |
| | 2020 | | 2019 | | 2020 | | 2019 |
| Cost of revenues | | $ | 503 | | | $ | 396 | | | $ | 1,199 | | | $ | 1,880 | |
| Selling and marketing | | 625 | | | 756 | | | 1,954 | | | 3,159 | |
| Research and development | | 386 | | | 469 | | | 817 | | | 1,863 | |
| General and administrative | | 1,010 | | | 1,392 | | | 3,558 | | | 7,368 | |
| Restructuring | | — | | | 129 | | | — | | | (137) | |
| Total stock-based compensation expense | | $ | 2,524 | | | $ | 3,142 | | | $ | 7,528 | | | $ | 14,133 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| (4) Lease cost, net of sublease income, is included in the line items above as follows: |
| | | | |
| | Three Months Ended September 30, | | Nine Months Ended September 30, |
| | 2020 | | 2019 | | 2020 | | 2019 |
| Operating lease cost | | | | | | | | |
| Cost of revenues | | $ | 832 | | | $ | 1,099 | | | $ | 2,668 | | | $ | 3,355 | |
| Selling and marketing | | 911 | | | 1,169 | | | 3,055 | | | 3,551 | |
| Research and development | | 636 | | | 743 | | | 1,953 | | | 2,279 | |
| General and administrative | | 428 | | | 257 | | | 1,618 | | | 975 | |
| Total operating lease cost | | $ | 2,807 | | | $ | 3,268 | | | $ | 9,294 | | | $ | 10,160 | |
| | | | | | | | |
| Amortization of right-of-use assets | | | | | | | | |
| Cost of revenues | | $ | 311 | | | $ | 450 | | | $ | 884 | | | $ | 1,449 | |
| Selling and marketing | | 45 | | | 66 | | | 127 | | | 212 | |
| Research and development | | 47 | | | 64 | | | 135 | | | 205 | |
| General and administrative | | 22 | | | 33 | | | 63 | | | 108 | |
| Total amortization of right-of-use assets | | $ | 425 | | | $ | 613 | | | $ | 1,209 | | | $ | 1,974 | |
See accompanying Notes to Condensed Consolidated Financial Statements.
COMSCORE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(Unaudited)
(In thousands, except share data)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Common Stock | | Additional
Paid-In
Capital | | Accumulated
Other
Comprehensive
Loss | | Accumulated
Deficit | | Treasury stock, at cost | | Total
Stockholders'
Equity |
| Shares | | Amount | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Balance as of December 31, 2019 | 70,065,130 | | | $ | 70 | | | $ | 1,609,358 | | | $ | (12,333) | | | $ | (1,108,137) | | | $ | (229,984) | | | $ | 258,974 | |
| | | | | | | | | | | | | |
| Net loss | — | | | — | | | — | | | — | | | (13,184) | | | — | | | (13,184) | |
| Foreign currency translation adjustment | — | | | — | | | — | | | (2,873) | | | — | | | — | | | (2,873) | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Restricted stock units vested | 157,384 | | | — | | | — | | | — | | | — | | | — | | | — | |
| Common stock received from tax withholding | (15,597) | | | — | | | (65) | | | — | | | — | | | — | | | (65) | |
| Amortization of stock-based compensation | — | | | — | | | 2,609 | | | — | | | — | | | — | | | 2,609 | |
| Balance as of March 31, 2020 | 70,206,917 | | | $ | 70 | | | $ | 1,611,902 | | | $ | (15,206) | | | $ | (1,121,321) | | | $ | (229,984) | | | $ | 245,461 | |
| Net loss | — | | | — | | | — | | | — | | | (10,401) | | | — | | | (10,401) | |
| Foreign currency translation adjustment | — | | | — | | | — | | | 1,564 | | | — | | | — | | | 1,564 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Restricted stock units vested | 659,244 | | | 1 | | | 2,241 | | | — | | | — | | | — | | | 2,242 | |
| Common stock received from tax withholding | (1,086) | | | — | | | (3) | | | — | | | — | | | — | | | (3) | |
| Amortization of stock-based compensation | — | | | — | | | 1,144 | | | — | | | — | | | — | | | 1,144 | |
| Balance as of June 30, 2020 | 70,865,075 | | | $ | 71 | | | $ | 1,615,284 | | | $ | (13,642) | | | $ | (1,131,722) | | | $ | (229,984) | | | $ | 240,007 | |
| Net loss | — | | | — | | | — | | | — | | | (11,121) | | | — | | | (11,121) | |
| Foreign currency translation adjustment | — | | | — | | | — | | | 2,750 | | | — | | | — | | | 2,750 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Exercise of Common Stock Options | 75,000 | | | — | | | 142 | | | — | | | — | | | — | | | 142 | |
| Restricted stock units vested | 374,952 | | | — | | | 823 | | | — | | | — | | | — | | | 823 | |
| Common stock received from tax withholding | (2,683) | | | — | | | (8) | | | — | | | — | | | — | | | (8) | |
| Amortization of stock-based compensation | — | | | — | | | 1,361 | | | — | | | — | | | — | | | 1,361 | |
| Balance as of September 30, 2020 | 71,312,344 | | | $ | 71 | | | $ | 1,617,602 | | | $ | (10,892) | | | $ | (1,142,843) | | | $ | (229,984) | | | $ | 233,954 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Common Stock | | Additional
Paid-In
Capital | | | Accumulated
Other
Comprehensive
Loss | | Accumulated
Deficit | | Treasury stock, at cost | | Total
Stockholders'
Equity |
| Shares | | Amount | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| Balance as of December 31, 2018 | 59,389,830 | | | $ | 59 | | | $ | 1,561,208 | | | | $ | (10,621) | | | $ | (769,095) | | | $ | (229,984) | | | $ | 551,567 | |
| Adoption of ASC 842 | — | | | — | | | — | | | | — | | | (46) | | | — | | | (46) | |
| Net loss | — | | | — | | | — | | | | — | | | (27,514) | | | — | | | (27,514) | |
| Foreign currency translation adjustment | — | | | — | | | — | | | | (621) | | | — | | | — | | | (621) | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| Exercise of common stock options | 68,259 | | | — | | | 1,191 | | | | — | | | — | | | — | | | 1,191 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| Restricted stock units vested | 552,651 | | | 1 | | | 4,610 | | | | — | | | — | | | — | | | 4,611 | |
| Common stock received from tax withholding | (52,853) | | | — | | | (1,138) | | | | — | | | — | | | — | | | (1,138) | |
| Amortization of stock-based compensation | — | | | — | | | 5,888 | | | | — | | | — | | | — | | | 5,888 | |
| Balance as of March 31, 2019 | 59,957,887 | | | $ | 60 | | | $ | 1,571,759 | | | | $ | (11,242) | | | $ | (796,655) | | | $ | (229,984) | | | $ | 533,938 | |
| Net loss | — | | | — | | | — | | | | — | | | (279,533) | | | — | | | (279,533) | |
| Foreign currency translation adjustment | — | | | — | | | — | | | | 677 | | | — | | | — | | | 677 | |
| Issuance of common stock in connection with CVI Warrants | 2,728,513 | | | 3 | | | 7,575 | | | | — | | | — | | | — | | | 7,578 | |
| Common stock warrants exercised | 323,448 | | | — | | | — | | | | — | | | — | | | — | | | — | |
| Interest paid in Common Stock | 243,261 | | | — | | | 5,134 | | | | — | | | — | | | — | | | 5,134 | |
| Restricted stock units vested | 46,078 | | | — | | | — | | | | — | | | — | | | — | | | — | |
| Common stock received from tax withholding | (7,218) | | | — | | | (72) | | | | — | | | — | | | — | | | (72) | |
| Amortization of stock-based compensation | — | | | — | | | 2,354 | | | | — | | | — | | | — | | | 2,354 | |
| Balance as of June 30, 2019 | 63,291,969 | | | $ | 63 | | | $ | 1,586,750 | | | | $ | (10,565) | | | $ | (1,076,188) | | | $ | (229,984) | | | $ | 270,076 | |
| Net loss | — | | | — | | | — | | | | — | | | (10,559) | | | — | | | (10,559) | |
| Foreign currency translation adjustment | — | | | — | | | — | | | | (2,950) | | | — | | | — | | | (2,950) | |
| Adjustment to issuance of Common Stock | — | | | — | | | 584 | | | | — | | | — | | | — | | | 584 | |
| Interest paid in Common Stock | 856,289 | | | 1 | | | 6,119 | | | | — | | | — | | | — | | | 6,120 | |
| Restricted stock units vested | 54,899 | | | — | | | — | | | | — | | | — | | | — | | | — | |
| Common stock received from tax withholding | (12,586) | | | — | | | (17) | | | | — | | | — | | | — | | | (17) | |
| Amortization of stock-based compensation | — | | | — | | | 1,966 | | | | — | | | — | | | — | | | 1,966 | |
| Balance as of September 30, 2019 | 64,190,571 | | | $ | 64 | | | $ | 1,595,402 | | | | $ | (13,515) | | | $ | (1,086,747) | | | $ | (229,984) | | | $ | 265,220 | |
See accompanying Notes to Condensed Consolidated Financial Statements.
COMSCORE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
| | | | | | | | | | | | | | |
| | | Nine Months Ended September 30, |
| | 2020 | | 2019 |
| Operating activities: | | | | |
| Net loss | | $ | (34,706) | | | $ | (317,606) | |
| Adjustments to reconcile net loss to net cash used in operating activities: | | | | |
| Depreciation | | 10,317 | | | 9,447 | |
| Non-cash operating lease expense | | 4,195 | | | 3,987 | |
| Amortization expense of finance leases | | 1,209 | | | 1,974 | |
| Amortization of intangible assets | | 20,514 | | | 23,151 | |
| Bad debt expense | | 1,664 | | | 657 | |
| Impairment of goodwill | | — | | | 224,272 | |
| Impairment of intangible asset | | — | | | 17,308 | |
| Stock-based compensation | | 7,528 | | | 14,133 | |
| Deferred tax provision (benefit) | | 254 | | | (3,951) | |
| Change in fair value of financing derivatives | | (6,887) | | | (2,900) | |
| Change in fair value of warrants liability | | (5,765) | | | (4,893) | |
| Change in fair value of investment in equity securities | | — | | | 2,324 | |
| Impairment of right-of-use and long-lived assets | | 4,671 | | | — | |
| Non-cash interest expense on senior secured convertible notes (related parties) | | 3,060 | | | 17,374 | |
| Accretion of debt discount | | 5,550 | | | 4,607 | |
| Amortization of deferred financing costs | | 1,140 | | | 795 | |
| | | | |
| Changes in operating assets and liabilities: | | | | |
| Accounts receivable | | 10,675 | | | 14,951 | |
| Prepaid expenses and other assets | | (2,918) | | | 2,115 | |
| Accounts payable, accrued expenses and other liabilities | | (12,380) | | | 6,913 | |
| Contract liabilities and customer advances | | (5,180) | | | (11,748) | |
| Operating lease liabilities | | (4,784) | | | (6,034) | |
| Net cash used in operating activities | | (1,843) | | | (3,124) | |
| | | | |
| Investing activities: | | | | |
Proceeds from sale of investment in equity securities | | — | | | 3,776 | |
| Purchases of property and equipment | | (200) | | | (2,810) | |
| Capitalized internal-use software costs | | (11,428) | | | (8,800) | |
| Net cash used in investing activities | | (11,628) | | | (7,834) | |
| | | | |
| Financing activities: | | | | |
| Proceeds from private placement, net of issuance costs paid | |
