SCOR - Earnings call transcript Q1 2019

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Operator

Good day, ladies and gentlemen, and welcome to comScore First Quarter 2019 Financial Results Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. [Operator Instructions] As a reminder, today's conference is being recorded. I would now like to turn the call over to Mr. Calk. Steve begin. may you Sir,

Steve Calk

you, operator. Thank

our of our Before Litigation to forward-looking Reform I provision meaning like Act of forward-looking remarks, all we statements the of Securities the contains begin remind discussion you would following Harbor These prepared that Private Safe the XXXX. within of the our reflect expectations, duty prospects of XXXX. information disclaim any and May include call. today, based on statements Xth, to plans, comments are obligation forward-looking to after today's update or about new as and statements our view We

non-GAAP will be press during We website. which for we on and provided discussing today's measures in this call reconciliations our have release

Our XX-K, all of because website uncertainties filings risks results from and or SEC, future number XX-Q, materially with those www.sec.gov. the uncertainties. differ those of in outlined on and These actual including expected find our at other our periods of in which may a risks can you and

Chief Director the turn I'll Now, Interim call Dale to our Fuller. Dale? and Executive over Officer,

Dale Fuller

of know employees valued. critical period five want them weeks. this I world the around contributions for you, of the Chief you I in that our They gratitude harbor, we're utmost some first joined hello dedication safely Officer. our I'm by remarks, their are their our the before my changes Steve to to through want Financial the I core that past the company in Greg quarter has also work and appreciation But I want Thank my are joining our Fink, for that begin to everyone. to and and and success hard and acknowledge at extend significant transition. Thank results financial call. now undergone

Today, my months, our want effectiveness Over the and our process. weeks engagement strengthened they the initial want because customer we as nationally, leader them. In needs. cross-platform and to media Both increased the core measure of locally and strategy to that customer delivers we value CEO, want in our we accelerated comScore with reaffirm cross-platform is understanding immediately. ability of have measurement last our XX improve being it clients what the that have audiences

Our strengthen efforts on customers we our in refocus in with we our integrity, want. done just will products focus put previously success as increase our and With to to profitable relationships, accelerate to have for clear; first. strive excellence, mission customers must in our path marketplace, this mind, we put the career, in operate a place plan is this prioritize, I our I've have that our the help growth. our believe customer team and my

product One the is our extended advertising, of TV, transforming video reevaluate and addressable first streamline fully landscape primary engage campaign and with to ratings. objective emerging advertisers movie of My appropriate is technology and and items our to action resources to how how can media data. was on-demand, the our devote areas my portfolio cross-platform

be our in concentrated of a are around four most make return need team our management on meet and for help comScore has Board Directors to focal that best on placing that profitability. us pronounced. our reoccurring and have we mission. achieve cross-platform I but these and reiterate broad suite where this are on to syndicated support growth will the changed, customers' we products point is of now of rest the of want path evaluating strategy investments more investment not plan and We right This the development the areas products the model believe I also in accelerated

more communications, product seeing pronounced needs say links to with improvements in the development. a accountability, which of result customers' that As streamlining, effectively already cross-functional happy our I'm we're

stations, TV nearly their media best X,XXX the for transform our up in advertising agencies, to signed comScore, demographics returns. demonstrated many and have is where the using whom market local of advanced customers advertisers are progress and increase Our of local up made

As enthusiasm for an more local in discussions example, largest the comScore's to ways. services cross-platform innovative local groups, and this desire their in hear with use our TV I more station some and of

We are quarter and the announce commitments working our hope to groups local some new up basis. some and exciting services in agreements on from use station TV cross-platform this to over-the-top

usage TV adopting Our regional markers comScore agency where progress local in large posting agency for buying at schedules. QX in XX the continued and

develop X gambling our digital with believe brand publicly customer a Our to this segmentation data we companies business May most the had measurable largest studies continue new we Kentucky our opportunities revenue to sporting based national Derby. audience comScore, positive online relationship. new week, basis, used of niche opportunities presentation, legal during products engines a Simultaneously, more audiences. we're ardent around a data data Last that with to XX impact Fortune supporters events, company remain with to working that comScore's and upon conducted the Hulu consumer recognize during growth our find expect advanced and media reoccurring massive On one upfront clients syndicated their link new TV set expand reinvent impact. Recently, databases. of

processes detail structure, the promoting improve that eliminate our our cost. team our We've in minutes. including Along yesterday of cost long-term our Second, every will as team step part taking expenses cost ultimately business our are our our our to in workforce we members. efforts, critical need. redundancies, requirements revenues. aspect review, difficult the back bringing facility cut contracts, more our to talent and took better internal data to with by headcount, are a resources revisiting of conjunction layers, lowering we few deep we adding reduce with with reducing our and a into our Greg align upgraded In with keep streamlining customers' line candidates, in dive and management of discuss our fixed new

opportunities that on can so best incentive including our structure, capitalize organization is we the sales Our marketplace. the being optimized in

RFPs implemented. formal most been For purchases, major have

use office operational we what is way needs. our the many we in focus Based priorities covenants. we Collectively, technology remain we their business, previously we We're accelerating and it's last have very on we rethinking maintain by contractors good done in for beyond debt with and cash under importantly, and in use we the covenant our also secured reduced plans, believe efficiency clear over our on based current will notes. footprint our but compliance are areas, compliance excellence our optimizing perhaps our transformation customer are minimum most five weeks. We anticipate senior that designed to our establishing with on our

flexibility terms of on and amounts maintaining order the We transactions sources, to in success. any position potential timing for of continue focused in company to financing be best

to leadership senior help As part efficiency plan, of believe will empowered make greater the they decisions better critical I've the customer service drive company's team efficiency. and

through the and to accountability. have in pleased our as the and the both this to to better, Greg? Greg we That take financial profitability us the we I'm right faster will continue to are change, foundation I building sustainable a growth, over still execute with believe revenue initiatives years So after on in of five speed stronger, the QX number action company's a call performance. turn now be comScore list. come. excellence company for will the with weeks but a of role, said, I we

Greg Fink

the $X compares quarter of in Today, was revenue to Thanks, quarter. in growth we million, from the the $XXX.X and products million, period reported first values an the million a stand-alone in Increases the million the prior by year arrangements million of of TV pricing and $XX.X establishment as of continued of and quarter revenue purchase Dale. increase our sale was that our syndicated which driven and existing customer improving Planning $XXX.X certain offset fourth by digital XXXX. of well cross-platform increase as in reported decline and obligations in over last quarter services. selling in year result the Revenue performance QX $XXX.X in Ratings products first The from products. contract TV the were include

for revenue period ago a fourth in digital compared the XXXX. and Ratings XX% year XX% to represented and in same quarter syndicated first quarter Our of XX% as Planning of the the

growth. sign coming of solutions XX% slow in sequentially. decline With the timing delivery in and $XX.X to syndicated prior XXXX analytics activation periods, higher This down first as in custom which optimization as was and for offset compared result vast deliveries. was we projects, of expect year-over-year the a to last decrease first revenue, quarter of contracts XX% the quarter The from first from to increased to was experienced as now the down related million, primarily deliver quarter Revenue sequential of XXXX, continues first having marketing majority in certain year of quarter The which custom quarters. year the the was decrease we these to future the digital delivery expect the by XXXX well quarter. of lower

of and analytics. could to as expenses optimization XXXX. the in line. for compensation. the value experience transition the of $XX.X related $X.X to the first of Moving turn our the increases year from the completion to based compared to to were a period of system. audit $XXX,XXX key operating $X.X million, to XXXX. revenue increased year-over-year continued of XX% million the of million, or of expense for compared The cost, and and decreases higher the data in quarter the the XX% by the services a with a efficiency expense compares were This our XX% lower instruments transition quarter. non-GAAP or revenue quarter to XX% quarter with improvements. the million as In certain in year-ago well movies and of the first the ago offset change areas the of $XX.X executives. first or result I'll R&D quarter, other for our million, $XX.X cloud-based workforce I'll $XX.X to result by revenue centers basis, of Cost decreased an improvements the $XX.X from in These reported same due operating in first increase quarter These for Selling expense quarter. which revenues excluding expense continue as marketing associated cost and the lower quarter. on in XXXX. first agreement of revenue. the of down of from data or changes related quarter in was investigation. XX% maintain $XX.X derivative expense resulted primarily of reporting year-ago stock-based and to now resignation across the million, in the or relative items million of we income partially expense were other as cost a to XXXX discipline cost. Committee Revenue was X% multiyear This in or offset project discuss year-ago to was a decrease expense to million this quarter million, quarter audit-related We decreased in in We we employee compared the costs. $XX.X year-ago XX% three-year recognized quarter, of was revenue, Audit first in in revenue decrease investigation quarter million, in the audit of $X Fair equity of variability investments approximately quarter conclusion G&A revenue

adjusted loss of Moving quarter. This million in EBITDA first a We same the reported of for first for of the compares net $X.X period EBITDA in a loss quarter loss net to million $XX.X quarter. last same operating adjusted million year. year. We reported $X.X performance compared last $XX.X for to positive reported the our to a first the period the million net of

$X.X year-end. first This loss cash $XX.X loss of restricted cash million and net million, was million. quarter. the reported quarter the net compares to non-GAAP from of non-GAAP decrease We with a of cash, Our ended in $XX.X a the $X.X quarter year-ago equivalents for million

flow. align to be Dale we XX%, cost our implemented and to took effectively workforce business steps by This in mentioned, positions reduce which that ultimately to resources improve more cash yesterday decrease will and includes order open approximately profitability priorities filled. As not was reduction

certain are expected $X between and will We cost, which million. $X million related to exit incur raise

portion to XXXX. changes these will expect a our second in basis, ultimately and which quarter cash million beginning operating of an costs by the We of approximately realized reduce immediately improve flow be $XX our on annualized

XX, support plan. projects with reduction some announcement operating our We are are that March believe more operations to accelerate profitability. realigning to our will and we we promising realignment and intend accelerate Both optimize the consistent the resources our to path that our also

will conjunction believe action, We improve us with move position. other in savings flow continue requirement, our and our cash and yesterday's ongoing to cost closely liquidity position initiatives, capital and cash towards manage we that positive

with generation. long-term X short reset payment our In The consider in XX%. of anticipated X% We coupon XXXX, on from cash stock. conjunction our continue shares interest January common paid financing senior notes on future our to in secured needs of to April was and

shift expectations Now moving to our forward. let's financial

prior We expect comparable to second year. quarter revenue the to be

We As XXXX. said, as actions cash when flow. in increase clarity product the for allow in plan guidance positively we impact and we year, we to revenue believe revised the That we have update will others the will the financial well yesterday, adjusted efficiency have on as development profitability take as impact will our and taken as self-fund well plan. the revised this EBITDA us operating future, to of believe will better

term, Board drive revenue Management dependent discussed. that the on Team our long While success the for be forecast believe rollout will initiatives XXXX we of Dale the in recent timing our the and in changes will and

making so attractive are are time. flow and reducing we We can EBITDA that over and returns a priority cash adjusted cost generate

let back for Now, Dale me turn some closing it remarks. to

Dale Fuller

Greg. Thanks,

questions, Before just we let what sum we're take working in up towards your XXXX. me

operational towards operations redeploy our We across products. with of provide will us that comScore all driving with the the accountability excellence streamlining to high-growth we're business. lines capital believe attractive in First,

are sets on bigger our allow where means recurring we bets our areas This clarity. Second, in us data capitalize syndicated demand to product products. for increasing

platforms, are consider and augment and we us deliver Where customers to the existing but cross-platform need Our video will ratings. on-demand, tuck-in extended strategic, to addressable for advertising TV, our accretive small, we movies campaign acquisitions. eager

are plan to on will fragmentation leverage cross-functional alignment product steps position capitalize up to sales, Third, This unprecedented unique open landscape. we're we'll tactical coordination and and technology questions. allow the that, media this the teams. our on from we across win. a believe executing comes the truly amongst market that for and these call comScore Operator? With seeing We

Operator

the Instructions] Thorton line question first our from from comes [Operator Thank And you. SunTrust. of Matt

may You begin.

Anthony Duplisea

it's Anthony on for Matt. Duplisea Hey,

Just a couple of questions guys. for you

you search? CEO off, First secondly, permanent the And a any three-year have update framework? guys guidance on any there then do on progress is

Dale Fuller

Yes.

I'm are six is has qualified we So the run and search come forum, now have for mean, speaking, an process. is this cycle right takes and the in is job part those get company. company we outside again, being guys. of in running the we're intervening getting My retained for process. job fixed that into candidates great this whoever this to My I -- not of process, But, it not Board weeks looking can that on Dale and and well operationally It's that over.

Greg Fink

guidance outlined look perspective mentioned I and the revenue the timing we as continue products. those the to in Dale question, of my from the On of at things that remarks,

we I as forward. shared, will stand update And move as where so, we we

products a on delivering So update Dale point. a those the at about, we'll we're this point, at focused provide fulsome more only items future talked and that

Anthony Duplisea

guys. Thanks Understood.

Operator

comes question William McHugh from Blair. the next line And our you. from Tim Thank of

may begin. You

Trevor Romeo

for Tim. the in call. afternoon. Good actually for Romeo It's taking Thanks Trevor Hi.

from give Just cross-platform Campaign was us to broad pipeline What kind wondering, thinking frame mean, meaningful comScore is starting view opportunity you uptake media the of, the look from still are I of latest, particular? see could time if kind Ratings was like? for your revenue like? Campaign the networks you What and the XXXX in on Ratings?

Greg Fink

outlined revenue that we're at going as to of Dale that talked on, through Well, is to talking believe We I CCR operating we those. this areas think, about. want do the be not work about we're four mentioned, specifically one we've We long-term point. -- focused plan

mentioned, together, about, that the would broader coming we five out key weeks, them he's over one provide we of in to being for CCR forward. as been move able talked quarter, has Dale seat he be we this a plan He right? think as the put update to expect build I as areas. and four as

very one go areas we'll of where are much through done. become out, detail themselves strategic It's largest And we employ those clear, for highlighted. opportunities we and the the we of those part all as of that to process, where to the focus, categories we've -- bring our back that revenue to we four as us, where want think and as review refine will that get of that's I in once those and that want resources. will

Trevor Romeo

Okay, I was line like fair think enough. revenue data cost. employee .And of cost you But points year-over-year I something Thank up then, know basis XXX line you higher of and on the costs revenue. a item. percentage that as mentioned

on the line maybe there anything you that Or about can of any up So details there. much? was other drove so that it unusual kind increase give

Greg Fink

Yeah, how gross on certain contracts, a quarter second presentation of we the to specifically revenue cost. of went a network accounted the operators, in changed recall, we they if last you and year, and for

in So didn't year. that fair have the that This be accounting. the have a Therefore, happened compare. year-over-year where you last will second don't quarter of last quarter first quarter

that's the So that increased of bulk year-over-year. --

Trevor Romeo

you I thank guess one that does Got internal whole of you. of Or that just and if -- Thank review? is company? then you divesting just quick possibly external clarify sale the I maybe like that the review? certain does strategic parts Could of options one business or the more it, include more could. an

Dale Fuller

tell you and things I on think my going primarily about table. internally I the all things that. are through comment But would us reviewing was

our public the sale any over what you're a across matter market. at no counter, for being stock always So can buy company, people time

Trevor Romeo

you Thank make Okay, very sense. much.

Operator

comes Thank from Capital. line Victor you. from And Aegis of Anthony the our question next

You begin. may

Victor Anthony

headcount announced as second, last a of opportunities headcount reduce Hi there you partners tell questions, cut beta. anytime happened there throughout are beta more the ones as reduction how soon? you one on and Could Thanks. quarter, occurred yesterday. of that cost? any And restructuring Two to that's out of converted other ultimately think win, more go testers? one the beta come out that just the Or of you about of out guys talk you Are And for yesterday? big CNN you year, a us, thanks. just to do close? you Could the that all could coming

Dale Fuller

-- I headcount foresee headcount aspect any need us it a or any more for So, I that reductions. cost the doing more think on of don't

cost that setting look optimized, such other locations, have to we the with sales the can of through our I facilities think our those, most some cost -- best accelerating out. again, We're looking We've more And organizations you those out. our that, on of that sales of out. opportunities, partners data major our RFPs. our our costs going some drive will where right us. structure some the us at formalizing that our just sorry, will That's and with incentive will capitalize mentioned reorganization being our purchases, That drive now, cost help costs drive at at looking out, technology or even integration too. drive renegotiating some of in help helps

more second year the any think, that out areas, of part primarily others. see And coming costs the was? not you'll those I but through So, for the question

Greg Fink

deal Victor, of can CCR? How to repeat test, you the beta it? right, with

Victor Anthony

Correct.

Greg Fink

Yeah.

forward area and and look more focused four our progress I think didn't -- in continue continue I last wins announcing it the we can as expect we in as or, that make to area. Dale So call I to move today, here that but significant to key that on, highlight we're think that make one it any said, mentioned, of and is we think right, I as was areas progress forward. you excellent We

Dale Fuller

is other well. piece is be -- a for from there just they want CCR the What customer. multi-tier a as cautionary, heard I've pieces is But I strategy to customers mean one of

video-on-demand have that there. our our Otherwise, integrate a TV to pieces we extended set So We cross-platform out into for that. tool them. it's not get need complete

it's do useful. make the have we to have first actually really to So product phases phase, it multiple that we with

hear we're on addressing really them these betting board. because and really And across from and so technologies we the that's what why focusing that's customers everyone

Victor Anthony

So, on follow-up a just that.

changed, past been time You month launches. the or series guys events given those of for product two? over the Have altered, gave frames

Dale Fuller

now. to that with sticks tell something to sure of frames, it can understand can't top time. my weeks right their I that, what It have, I'm making product not have needs we out be that are so call will the for the is and have ready on I into need. feature six the fit and appropriate into sets get address Also, and the carrot we in, they next time everyone, sugar customers to week what on map, product cubes actually so to you deliver great better talking and will must they have. come road

lot -- to we of there. do have still have work a we to So

and our make And our group, sales with aligning the plans. so that well. And we're into transferring customers all really listening -- we're product technologies we're we group to knowledge with way sure technology organizations our actionable

better more I'll So you to know give it at picture and of call. earnings next our a better

Victor Anthony

you. Thank Okay.

Operator

I to the remarks. Thank you. for turn now like Dale Fuller call to And back closing Mr.

Dale Fuller

weeks, and and us, And hundreds that and are over for maybe years. for especially you've the even last joining been you've today. or everything years six six employees or or everyone been go thank doing back you you that XX in of listening Thank and even five here, been to last you've for longer, doing you and the hundreds all the thank five for say thank employees, I'll XX you, everything

So, everyone, next we look thank and our at you, reporting quarter. to progress forward

Operator

participating day. conclude Everyone, for This and have thank conference. all and disconnect. in today's Ladies you you program, gentlemen, great the may does a

comScore (SCOR) 8 May 192019 Q1 Earnings call transcript