SCOR - Earnings call transcript Q2 2019

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Operator

Good afternoon, ladies and gentlemen, and welcome to the comScore Second Quarter 2019 Financial Results. [Operator Instructions].

As a reminder, this conference call is being recorded.

I would now like to turn the conference over to your host, Ms. Jackie Marcus. ahead. go Ma'am,

Jacqueline Marcus

Operator. Thank you,

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

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

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

I'll Chief Executive now Fuller. Director and Dale over Interim call Dale? turn Officer, comScore's to the

Dale Fuller

for and by Fink, you call. Officer. everyone. Chief Thank Today, second Greg our Thank you, Financial financial Jackie, I'm quarter welcome, joined joining our results

today, that expressed respect time hope little comScore market, and have I on start give thoughtful want for more a team, being, of us. who to me the new insight And position acknowledge The of that We, can I day also let we're to a of all to begin, as simply, last has employees are providing the a period thanking critical front what important, stock. been undertaking our newer comScore. months we're worldwide difficult shareholders. performance and pleased technologies Said outlook doing. I with Before supporting our with clearly in our customer finally not the complex are I problems. of every you the hard for designing working uncertainty by significant in opportunities customers, for insights comScore steps X are into the

collection could which for company is team at vote, business and outlooks of times, a our focused. This staying distracting daily are disparate but the the management be

first our to product portfolio. primary our of I my earnings one that indicated was During streamline quarter objectives call, conference

that We the remain people add shortest through view we comScore addressable and premium of have minutes, and of investments new succeed believe new path that subcategory a and areas in as about would of as we area market our are to which growth a the it's I These to talk advertising capital areas focus addressable under-addressable what will concentrating we highest movies return in. advertising, emerging few the campaign on success. a poised potential I'll and we video, ratings. the going advertising to cross-platform people, resources, and we more both shift forward on-demand, avenues are that call

the to and the substantial a of company. all we succeed these maximize will This our reviewing changes. market business To management is aspects returns comprehensive strategic to make have areas, of conducting team continue and and review in

the for quarter markets new this focus our fulfill reported changing a second products original The and current no results the demonstrate to on we environment some we vision reflect need doubt why afternoon and of of merger.

rehiring in leadership and changes including top We distractions in of We our sales the key QX. the commercial the organization, due leadership necessary also felt of our impact efforts. to line made

would that year versus was which to the a this our Revenue period. the below comparable quarter in be revenue was quarter year ago, ago down expectation

flat business quarterly our concentrated forward, results resources business capital expectations our basis key are on sequential Looking in remainder line for the of as and is be my the top repositioned, areas. is that is XXXX reallocated will a

streamlining past want clear quarter. I Greg, not a to over our or department call our address been reorganizing looking we we innovating over do do operations and product the need. at To at this, customers and continue developing This the turn product everything our It how refocusing pace and review is development our we infrastructure. we means solutions products, our it. made organization I Before IT to has changes and

robust Second, teams and focused our expenses certain our improve third, go-to-market reorganized our more completed customer-focused, to streamlined a expenses to And to we choices cut grow hard bottom made line. we be and -- revenue. of to very review

our just actions decision the I necessary by were reduce company work in We to following the workforce difficult to taken described the While the move but second quarter XX%. a continues, forward. made

reduce this action by operating approximately cost annual our to expect We $XX million.

a raise. need with cash the of decision comply raise our completed to to position senior ensure also predicated the capital capital the secured that in adequate covenant requirements notes. was step-up is to our The convertible We on

market succeed of to more two, capitalize are Number us, a front in opportunities and focused organization. the on substantial becoming we

I in impression with a areas have uniquely subcategory under-addressable for. accounted on We earlier, market. important measuring ads been all-in can this advertising, addressable ratings mentioned at now that, has are advertising the for We been ads emerging the measured. nontargeted addressable point, including new all the involves It key believe market this demographics not we capitalize on adequately after

uptick we they an measurement studies, solutions, cross-platform brand With know are demand. are in seeing our lift

seeing already with campaigns services cross-platform We cross-platform we Overall, brand customers. of brand studies. are our have our uses sold expended for dozens lift of

is client. Our and and digital continue Top to contracts Discovery, new for theatrical become conversion the companies national growing TV, metrics for provides custom supply has movie our offering This offerings. and/or our campaigns A network digital. on television great our services. to new expand client services and media is video-on-demand to lift into strong example business with our first cross-platform which and continue of remains services syndicated across expansion

markets Oregon signing TV of we We market We're among exclusively, local year-over-year doubled clients rate XXXX. our date customers see these where Pandora local are agency are Hearst, Block advertising Broadcasting in are and existing -- to from the new now level. comScore welcome a excited seen Lockwood using at TV we comScore. to have expanded our in we Group more continuing business About and Notably, have to local to new Television. XX% demand to California Broadcasting TV markets than new deals with XX% local we Communications, clients renewal

to they like anecdote delivery optimize highlight real-time campaign impressions, measurements also OTT. is audiences to and leadership including recording agreement would of of clients Sinclair with the over-the-top of over-the-top in-flight. platform. CompulseXXX provide comScore's signed I with expanded level its can and so that campaigns campaign an we designed an in QX, evaluations This near agreement local Sinclair's In their

for areas, we road at looking map we opportunities. are and third-party both internally-generated product As these evolve partnership our

which footprint. addition, DirecTV, the selected agreement In for addressable Altice, multi-year the measurement measurement wide designed And this national comScore advertising get and Frontier. analytics AT&T's advanced across leading Xandr, linear provider addressable to advertisers third-party company, consortium, currency Xandr's is has reliable includes as

Number three, opportunities the are substantial. of us in front

Our to and customers expand ways across more platforms. are for looking us in multiple our capabilities innovative

suffering customers result shift to of take opportunities projects achieve offerings revenue. what for. time to goals these some developments may deliver in are product in ready these Because critical, to will and launch. are areas resources declining However, looking to these need necessary legacy The ensure product are longer-term certain we our

to quarter financial to like provide performance. call second the now turn our over will Greg? an Greg of who I'd overview

Gregory Fink

TV of $XX.X the decrease of million quarter reported which Thanks, the to million, revenue TV growth $XXX.X as Revenue year's impacted year compares $XX.X and elections. to as by in million, The a and revenue quarter, $X.X period quarter. delivery reported our we from year cross-platform cross-platform from were was the last quarter year compared the of of was QX second of of local same revenue $XXX.X a million in and products. Dale. higher first midterm of revenue higher customers Ratings result second political ahead and products second in prior Planning quarter. Today, last increased analyst having from TV the million revenue last

the ago. compared revenue and Planning of the XXXX. digital quarter represented in same XX% XX% period of Ratings syndicated Our decline to second year a continued for and to This

the quarter deliveries second digital was XXXX the to offset decrease to prior of compared and was The revenue. million, quarter year. Analytics Activation from The the marketing Optimization in related solution quarter the and XX% was from Revenue decrease $XX.X as increased second custom second of year. in last in sales by down lower part

increased Analytics revenue to both and quarter relative same period new in Reporting the the to ago year X% and customers. Movies second new related a products

compensation. in lower stock-based ago operating to which non-GAAP excluding I'll quarter increased in the compared head higher of revenues discuss centers. increase data the part efficiencies year was and operating XXXX offset Cost basis, now The our turn costs. in data quarter of on I'll from to a by count cost, second

second count was primarily for expense R&D compared from and agreement. prior G&A quarter of expense Our expense XXXX. a the lower head to selling and of the primarily quarter lower second marketing services lower to X-year completion transition were the year in due the

SEC related a company's market a for the we impairment recorded probable estimate previously million liability the management and We increase in capitalization an assessment. revenue, to Due performed an $X reserve, to lower reasonable of our in interim litigation part investigation. liability believes is the decline which disclosed in

amortization need QX. a and asset an we expense basis. a noncash of This down by in result As $X on to $XXX is determined write reduces the million which the annualized assessment, intangible goodwill an by million charge,

to be and is result. saw reduction a resulted These quarter, more in in charge we efficient as and better benefit Dale efforts the of mentioned, As our previously million $X.X in a expense mission organization. a restructuring some

to quarter. loss loss year. to last of an $X.X we reported reported adjusted second million for compared in reported second $X.X adjusted the This for period the million same of period quarter, net year. For net same loss $XXX EBITDA $XX compares a the We positive of million million a of last EBITDA the

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

investment, Following an the additional in end cash. million an of $X.X sold the quarter, equity generated we of which

minimum filing second a mentioned, $XX from additional million in intended $XX proceeds. capital with million increases the initial transaction which was to our XX-Q. which $XX Dale resulted ensure quarter we covenant, cash with The to of our June, of As million completed compliance in transaction

to discussed, the Dale breakeven we we year. by cash will to end changes of move believe the operating the positive With flow

total of while vary custom for $XXX the expect million. financial $XXX year quarter-to-quarter, we can and project to our for revenue As XXXX, million expectations revenue between for the remainder be

the of positive be to lower cost-saving for core our as year. initiatives operating expect half of However, in and, adjusted second expenses implementation the of result XXXX the EBITDA the expect such, we to second in we half

we discussed, next Dale transition revenue similar generating we as level adjusted expect As new new products higher over and enter current several the the to EBITDA. to quarters, of be markets, to levels

We to expect improve as advance. both development commercial

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

Dale Fuller

Thanks, Greg.

allow on comScore a plan clarity described the like in open attractive our products; data the businesses focus: in product is profitable excellence the we long summarize on I areas demand and call number two, for to deploying by questions, and streamlining sets capital earlier; I'd to on to number with position for sustainable products operations where executing one Before us accountability and for growth where the in term. increasing across capitalize operational high-growth number we're three,

next as to several improve Greg accelerating similar new into expect As our activities we be mentioned, revenue products to the to transition development markets, and efforts and commercial we follow. product levels current quarters our before new for as

continued looking forward As look slightly our see result, higher flat to updating to as revenue to We our to progress. compared we you in expectations a on XXXX, XXXX. as

the for that, With up questions. call open I'll Operator?

Operator

[Operator And question first the with of line comes Martin from Needham. Instructions]. your Laura

Laura Martin

of in Movies about coupon for have down and the get Dale, don't it from me, diluting. to really can not to it XX% It have talk that's Movies sell -- that under looks It to sheet you So really balance second? the Starboard end-to-end sounds the pay with like -- debt shareholders cross-platform shares. we be you Can here, out solution? tell like that doesn't doesn't help why stock part to a to try

little it my And flat, that for just be the to question give us is think going changing after actually you next be forward we was which we're to follow-up several to is then bit hit hope flat quarters. the Can you said be you flat, quarter, flat it's and just hoped a this down instead? revenue but going that to you down going what's

Dale Fuller

here. So Laura, Dale

add that and I to dilution ensure to not we're looking continue shareholders. for earlier, at strategic As said going to we all options to the current are of we're trying company, the

whatever make we're those do So happen. to things to going is necessary sure

at we're saying saying Movies Greg? we we're selling then are but it, options. I'm or not looking I'm looking at So all

Gregory Fink

the your digital seen will right, would On custom Laura, those second we half next trend quarters, first and playing to the that you've second around few where solutions, the we trends think think and just are I similar question, are the be that syndicated half. in out the

expect we several seen perspective this a hold that we've same from quarters. the of true so revenue mix next And to that kind over quarter

Laura Martin

But flat right? revenue, this you're down. to going be saying year-over-year, Like was down quarter flat, not it's

Gregory Fink

would what sequential the million is quarterly total comparable, be to That a $XXX it basis, million revenue for have between we said on that year. to $XXX

Operator

Surinder your Thind with line Jefferies. And next the comes question of from

Surinder Thind

more specifically digital on follow-up outlook a business. the and for and Just the business the syndication Ratings Planning revenue

declining a at to has Just close been to that pace. clarify, double-digit business

rewind we that the quarter terms of to towards the business? shake syndication or if a your the of the around year-over-year thinking we should X we thought point? declines in way could kind the ago, Is that at be closer the about level end of in this comfort think digital How will the get numbers that breakeven I still was year. out

Gregory Fink

Yes. for the Thank question. you

shared decline We decline, the you has business although at last we've seeing the the think on see but year-over-year QX, a decline. that of our in stabilize. on time syndicated measurement as of quarters, looking that And are size we continue slowing. to digital on focus kind the on stem been we which this expect continue sequential tool, to We that been when we've We a that been few basis, sequential will it using at to it over to basis that, that. versus over that trying look

Surinder Thind

to really cycles. And community we and products, kind terms we in to the additional in a a of a relative guys I in in map when resources investor terms step of I'm kind of that of you introduction just refocusing we road you back of How then Fair should about few provided big key think was ago in the to of just about, products some couple picture, continued take really the of provide areas. terms quarters that on enough. talked guess, your the there your on focusing -- versus to gauge me in trying kind effort cycle? not can of maybe And new product quite color that are any are improvements it's the of you where the making clear where product

Gregory Fink

here. me in let Well, jump

that's get areas There specific those. some focus I'd to remarks reiterated are fairly later. that emerging we we that and on regarding fact on. trends can was that these can we areas capitalize think good than the Dale what in to I Dale question. on point a sooner And to rather we're think his market the I of regarding same the that here like think going clear in call the share, May And was

market well products headed. what is that We so those bring market. I positioned to we the would think we're where is say to pivot And to

think we those on we under-addressable have about believe product so back large little think I today, and can where Dale we've allow that and portfolio we set that will and an and advantage hit on again emerging to opportunities to revenue. in on. and and have And accelerate in bit addressable, the grow us talked with And areas we want both a May new focus markets those, we capitalize emerging we the

we're market and at a the have step to going to might and company the those we're versus what look are heading. what be, opportunities directions the think the back was I that take of So

Surinder Thind

question rate initiatives that run a in count those much cadence in point? then expense XQ? further reductions -- be out the Just that on were going annualized control last to head And of the at the expenses of Or that still the rate on count. run announced the was and the in XQ is How we are of kind on this head XQ quarter. And Understood. at numbers?

Gregory Fink

Sure.

it So $XX the on basis. think I about talked Dale we an call, mentioned million and last was in about again annualized

the you in right, about convention, will that it second you financial in the would If million half use get May, $X that happened of in half-a-quarter so quarter, our a bit quarter little results. you the think fact a about you see

As move you into and back of year, the the have it's half those $XX exited, million. folks

So a from undertaken. already out $X we've actions million quarter here on the

mentioned benefit. in count, additional around his take and actions head continue remarks, Dale immediate see outside in of areas expenses We we've to areas where cut that immediately other

that moving get just full than but of in more it's the a head QX count, QX will we impact and forward. So

Surinder Thind

for That's then expectations expectations finally, are and for XQ for some for variables impact -- there's and If but -- the have -- XQ? but current fully question, the stay levels. price the more price count that share that do this stock is at then of where stock you that, what the you helpful. modeling are diluted to And the if diluted the will I understand a fully

Gregory Fink

Yes.

that think at that happy another we're one off-line time. to I take

Operator

question line with next from of the comes Capital. Victor your And Anthony Aegis

Victor Anthony

XXXX there's second, be stated essentially forward story That's those off in is to guidance. flat the -- XXXX. So potentially growth excited areas revenue clearly just advertising, under-addressable and at business you high addressable slightly what on-demand, for for where few that And you growth higher you advertising What's for story figure growth areas, market you said video, could trying to the growth under-addressable? because all. advertising. going no EBITDA is How market off about What in the rattled basically size? out a saying this I'm big you just most there movies the expectation the the guys? are potential numbers? with addressable What's

Dale Fuller

Yes.

it. me aspect growth let of deal the with So

described. we've we -- very about that, excited we what in marketplace, addressable I marketplace the the have in think the seen I actually that under-addressable and company, as are

we're I growth in which aspect, local numbers there. continue The not overarching give the have. we with to -- is I'm to it going continue There'll we three work think we think addressable own to I marketplace the the market be standpoint, on say day, to us to be going see the consortiums we bigger that world. and base that's with the it but every consortium -- all, probably we because to going going have

is them There's we are picked going always it, another going okay? out three talk to -- uniquely out going we're that AT&T third there's provide qualified We're to targeting be those of call. don't they us, going and not But One shortly, there they to going be about one know be. under-addressable to the And talked we one, marketplace. Xandr, just they this of be about in there piece the -- the to at to we haven't level, information markets. on that. who But local to the which

we And addressable starts so that, substantially as marketplace business grow to that think expanding. the over is the going years

excited that. So about we're

Now even share maybe fair of on we as more of technologies get new there. and over-the-top, we'll to we our which have top that, believe we build continue

showing areas So really and have said are But the we video premium I stuff be the we is of way to growth all the the the that prove all of those that, only source prove to by numbers. the company. can think X within going I

the kind start could And question of Greg, as we're we the and think into I you'll you telling next partnerships, we showing roll this quarters yours. products play story. start giving where growth coming be next those we're the second right The is just it'll really our announcing and now, and as that a -- quarters you numbers start head, So going.

Gregory Fink

Yes.

provide against think in talked our where proxy it the revenue layer base I adjusted that's potential and question million expense the XXXX where slightly for the I that and on take other What run didn't obviously that to a we're things that higher current a and to regarding about. EBITDA land of margin, $XX say, So good rate would that that expenses Dale we the today in is will flat if you doing, Victor, today. XXXX kind as is

Operator

The comes Instructions]. [Operator with Jason Helfstein next from Oppenheimer. question

Jason Helfstein

need To a you asked Laura do for have So the without -- do there need it syndicated about television, business. do Movie way to you what business? want Is the to the do do own to you technology? to

Dale Fuller

with do a in together and whole under-addressable We need aspect marketplace as of have what to the premium bunch originally data That's described the With of business. and the these we ago. the we companies were access that's want to addressable that's to the this. cross-platform, to it, both why years syndicated need put core we the

clear, the years that that really vision So thing right we X now, that years it's marching true have done that is or to ago we're X should we and ago didn't.

and desire, will so... the I striking the the have it's have within to we think how there. know-how and think I distance, And get we

Jason Helfstein

here's the question. Well, What another can owned hear you -- if else someone me

Dale Fuller

Yes, I can.

Jason Helfstein

television Yes. So What if data effectively, owned in the and the on focus and media out or... collection across somebody got you syndicated being entirely business you the you tech license without data? of else would business the

Dale Fuller

go the of first options I'll things question well, said, we is Sure. looking as the Laura's one and to company. the are strategic Yes. at answer for all I to back this

Operator

from question next And Matthew with your SunTrust. Thornton comes

Matthew Thornton

what's comment, can the any would that full any be what process? that process? question with to just and workforce color all to us, CEO right was cash the your back candidate that might Can a reduction, our million there above the flow confidence on And questions. status looking one. XX% the remind it's both? work with XQ? on update third, in Any that last half be, process you're XQ through entirely number there but I your think is us, million be internal the And number on you talked external, two, of know are some as you to charges Did up Did Question those I $XX you you the year. land then associated in of Or in Are helpful. following just lot. that. spill cash related, internal, working happy search qualities about kind breakeven into a an is any $X is and process operating you this remind getting just right of million $X way just and repeat will I'm advisers Dale, XQ? internal we now, running of staying that there XQ? external in

Dale Fuller

Let's take the Greg. last first, question

Gregory Fink

Yes.

with as as I kind costs with that articulate I we things to actions taken right, confines think the I and undertaking, that covenants, can earlier, to that result, around to doing cash get think I us earlier. about we can, And mentioned feel flow we're reduce a within of will best talked the of that the that we we've view other we things a we're comfortable that provide as we our that. be think the

Dale Fuller

your so us. with our of the And are a Goldman things. has through through question, recall continue we to been could still worked first They with financing, that. bank of answer with work records, you as they number adviser our Goldman to And

answers And that so that one.

five months, can you and to this than very close -- the tell question, is on this an and CEO to Since a of the inappropriate it second The full would matter Board, search ongoing been well, And more be it here active. I've for pretty time. anything that. me the been a say for is five now high and it's the exciting But attention is months search, has I Board. priority, the

back look getting to So to I retirement. forward

Operator

turn questions conference at I back to to I Dale like no the Fuller. this would now time. showing am further

Dale Fuller

for Thank today. our appreciate support. patient you, joining thank shareholders, our customers, Operator. loyal everyone, To And your we and employees, you, us

for this its As customers, appreciate want term, and for long growth we profitable the the company. reinvigorate and in invest sustainable you. and and company to interest rejuvenate we employees And Thank its shareholders. investments refocus for and we the ongoing comScore a business and great position your

Operator

gentlemen, this today's a day. have Thank Ladies participation, and your you for conference. concludes wonderful and

disconnect. may You

comScore (SCOR) 6 Aug 192019 Q2 Earnings call transcript