SCOR - Earnings call transcript Q3 2019

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Comscore Third Quarter 2019 Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]

I would now like to hand the conference over to your speaker today, Mr. Winters. Robert you. Thank sir. ahead, Please go

Robert Winters

Thank you, operator.

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

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

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

Bill? Bill now call Executive I'll the turn Officer, to Comscore's Chief and Director Livek. over

Bill Livek

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

and that I in our experience today, measuring may have management described Former off to over I that us. that's I'm thank merged some start you our that the excited into believe trusting consumer necessary seven to I as and in so me been the the only past, world. and set role movie by Board the permanent would that start usage, team in loyal our streamline our Rentrak, Comscore. people us begin, responsibility. TV, I new people customers on-demand of our strategy business been Comscore let media very in to that our trust for has as of measuring saying, But CEO XX at Comscore’s I'd this my structure use a like our and taking months. cost Fuller our and that past Before to for cross-platform products to the of purchase, also Dale years we bit like our the our and with know in of me actions CEO. thank

task our execute strategy. it's to on Now, that

Before discuss as employees. would be innovative a focus like we the moment to to hard not our without possible of future. development of products the our work continue the dedication I'd team their our to we Comscore to quarter, talented on the take for thank

Now, of to I'd Greg quarter, during who like were our turn important overview taken will third to actions provide quarter Greg the an third financial to as well as call that the performance. over review and Fink?

Greg Fink

Thanks, Bill.

outlined business, Last our and investments quarter, steps the objectives to streamline product on product our the and to we focus Dale our portfolio primary have key taken teams of the including growth product growth areas activation movies. concentrated key plans four premium future future. believe addressable in we video will Comscore areas, the that under-addressable and TV, and cross-platform, in drive are and

these return the are shifting to resources, the success. the potential both with of which in and quickest We see we and to key four align products capital highest people areas path allocation

the but for in to is further By Comscore in continued the our a internal to are going customers’ made Company in and and necessary rightsizing second our taken initial needs Following position organization X% August. difficult that future, workforce a quarter our steps the realigning forward. additional an reduce resources confident meet we our by decision review, the stronger

that significant we to the of previously level they we've given unlock these will to a allow opportunities the in also our actions, amount business. us addition forward lacked like reduce areas In areas to represent. capital to spending of to go into investments of our of redeploy would efforts all growth This made business make,

believe initiatives changes represent we briefly reposition I a and to taken the that Company steps of the forward. growth we important for review taken going organizational quarter couple want have to this

externally promoted we new product to areas, product accountability key development drive internal and organization. helping hired for across our leaders the and First, establish greater

teams for to the market areas, product to innovation products across which product the Second, products. we expands rationalization. time simplify opportunities reduce accelerates we our integrated and for finally, SKU and And and through number engineering of development continue new

in year QX than the Revenue prior quarter the was and lower quarter.

capital expectation a top-line our to rate our additional on slightly expected sequential areas. is on cost Looking fourth basis to bottom-line that resulting flow in we full is The again business forward, and positive quarter actions as resources higher the our business cutting key begin are in EBITDA the the will run quarter. will concentrated for repositioned, basis, a be through the is also quarter results reallocated this the in took adjusted fourth

Before to developments I performance the for quarter, our the commercial on I touch recent quarter. financial review want during some

results accounts. the already back including seeing recent reorganization sell prominent several publisher from We national are having won side of our team,

network signed stations a of team with to in deals At Channel, Reno, Clearing include the pioneer sports, prominent measurement the for long-term with a network Chattanooga, divisions. broadcast a to few. and closed Weather national services Tarzian local also Sarkes House the deals, in digital receive including TV, local agreement Nevada. television local number key to to Newsmax and team level, we name Tennessee, measurement services The The expanded a Our news Publishers with entertainment,

this As develop to collaborating ratings shift We continue TV we reported impressions. increasing of we're from will away industry's technology evolving And to audiences. new digital for both linear reflects of preference. cross-platform favor innovation in this traditional Nexstar to prioritize week, the capabilities last believe meet and our

Highlights relationships engagement holding a cross-platform large a with engagement across campaigns. X partnerships and agency service clients. syndicated all include company remain a CPG large company leader new holding reviewing Our expanding and global key as with renewed a data a across We partner, retained strong. survey

also brands. pair global of engagement the and cross-platform new survey won We automotive with retail

media comprehensive our and analytics branded solution. brands, natural a This focus. through bolstered is cross-platform offering approach extension our of content, science-based social our ListenFirst, We partnership partnership content enhances to measuring measurement with

built quarters. strong new we’ll in Comscore have at a We on services the out and roll foundation which products coming

renewed, many we will when are contracts we build our signed as that and As the momentum our of traction. up confident we period pick continue to are offerings product approach

right to potential people in we resources the focus. position in of and a unlock areas our of each With in place, are

While staying as product prudent with are our cost grow investments the development our responsibly we our teams across containment initiatives, the roadmap. to business in gradually realized expect

and revenue performance our decrease year. reported of primarily quarter. to custom products. solution reported in The financial to million, the of Turning digital Today, to our of $XX.X $XXX.X last for revenue we relates compares which third quarter QX the million digital syndicated

third Planning the Ratings prior third million local were was TV the higher last revenue as year’s expanded year. revenue Last year period midterm TV from analytics quarter year compared with million, relationships revenue $XX.X from and the decrease compared our increased to lower by of elections. for delivery in TV and and to $X.X of flat last same products customers political Revenue national benefited quarter. cross-platform cross-platform a of products, quarter from the offset ahead

continued to products. as revenue which year of XXXX quarter of number of the decline of digital third ago. reduction is primarily the to these well and reflect period for in customers, compared small Planning international revenue Syndicated the a business, Ratings Syndicated XX% continues as digital as comprised represented reduction a same XX% a in to in and our

expect to our revenue quarter, digital we sign visibility third the improve. should in to the for contracts syndicated XXXX efforts of a As than around our our fourth more slow decline

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

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

excluding I'll which costs, compensation. on operating discuss stock-based basis, to turn now a non-GAAP I'll

compensation out see by continued we by to on in compensation operations. year, reduces turn basis. in expense annualized to million significant reorganize expense took which we levels We our the from staffing This impact reduced in the $XX of XX%, and than August more actions May an reductions

travel consolidating, Additionally, exiting, as the leases and year. latter than facility this XX costs, we to costs, expenses service mentioned more earlier, globe reduce including other subleasing by the professional facility and around I costs continue

third quarter, SEC investigation data primarily due the centers. agreement. a the Cost our of efficiencies prior $X.X received XXXX decrease former quarter G&A transition the to from million quarter and of compared year in of the was a the In in disclosed three-year clawback expense to third we ongoing a September, services executive. previously operating to settled the completion revenues for compared from year-ago quarter lower

to expected $X.X to was associated As activity from expense a is settlement further litigation reduced. million result, expense with reduced our million. Ongoing any of $X be

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

net in was $X.X ago the non-GAAP Our which for a million, net loss non-GAAP third year million compares quarter $X quarter. reported of loss to a

same received third the the the clawback XXXX. to the amount from an amount We million million, includes SEC with second October. equivalents and from paid $XX.X of quarter of cash September. $X.X quarter in of million ended the increase cash million We cash, $X.X we restricted year-end in This and $X.X

our financial for end we of the XXXX. expectations As as approach

to revenue actions While the and tend to our quarter. achieved fourth in are Certain than we the marketing third fourth higher vary with selling revenue can the be quarter expect and in quarter-to-quarter, quarter the costs third higher additional to savings quarter. be custom project slightly taken likely exceed

fourth positive the it As third expect for quarter. lower adjusted than to quarter, EBITDA expect while we the such, we will be generate

higher adjusted XXXX, continue to we revenue to of we higher transition As and generating be levels in than expect XXXX slightly EBITDA.

to both expect improve next year. We throughout

clarity options with the to that or Starboard The the that and Company. actions. the the with under of maximize the in notes including process Starboard strategic certainty a are the engagement inbound connection in conversations interest received open that would shareholder notes obtaining announced Those ongoing. post Company around light the financial strategies in all Starboard execute Starboard value, the shareholder flexibility a announcement, we operating it the various to release value. pursuing In terms of of the to sale Value additional QX call, remains redeem ability company's and financial for any was maximize explore earnings Board that transaction order to to sale Lastly,

However, with conjunction notes sale the will redeem the on be Starboard process. the any in to to company resolve important a sale with formal their prior ability resolution to of

our positive highlighted. a achieved we In have the and plan of interim, we have number have as been strategic progressing on milestones,

to continue We Comscore's ahead. best days are believe

operator the for your to open back Now, let it me to the turn questions. Operator? line

Operator

[Operator Martin first with question Laura comes instructions] Needham. The from

Your open. line is now

Laura Martin

Hi, there. Congratulations.

back. So, and welcome that what's given upside specifically Can political, you like from when is it businesses experiencing Rentrak Thank us that you you remind quarter still And forgetting what Bill, about gives syndicated talk and sounds declines digital XXXX? in you’re political what from then, will -- what is growing for the in upside customized? guys grow, the can fourth you. ago look you the long confidence

Bill Livek

regardless Thank our we elected for you, the was taking inventories. television senatorial, broken have Obama standard helping but our television may our their the support. been races parties, don't past, of followed precedential, be generally we've your used when a Thank political separate believe Those as whether with have big to has segments candidates continue Since there. we out the of Political ground a services. of business. that in house and first or believe you it's television category time, both you always ever, we'll the I who part maximize gubernatorial, business laid Lauren. not political

it the question, over like of I'd other you. terms Greg, pass to In to

Greg Fink

Laura. Yes. Thanks,

as earlier, fourth we we that the quarter, about we continue. the growing are talked think look areas we what expect at think, I to is about that those

be in have to slightly as And some areas that been we move expect decline, of forward. lower the

ultimately is quarter some discussed of we've mentioned will I fourth higher standpoint. that the fourth stemming revenue from be the think, in in those the revenue; growing and contract I will from the impact confident on And a critical declines we less feel than that as quarter. result before call,

Operator

with from And question Matthew comes Thornton SunTrust. next our

now is open. Your line

Matthew Thornton

where walk Maybe puts of if Can to and the portfolio just the maybe the takes, declines? where growth, focus kind where, little I us about is? as again, again, a the focuses of of through but You us again, just quarter, bit growth talked just are, activation, local, this maybe and maybe couple, last give kind opposed kind a could. managing strategic drivers kind the those just remind of you're see you where and you obviously

back can you helm the rest secondly And And the now then, measurement you're of Bill, particular. here, that to whether through, and or business, just Any they're with business at thoughts all walk could just be be on of hear that that relatedly, would business on perhaps strategic is kind synergies in great. of front the that something your alternative? TV the digital at again, with movie kind us curious measurement that a and as looked color

Bill Livek

Thank Matt. you,

that best They the in on deliver they're we advertising inventory side about is And cross-platform. the a to Let on platforms. underneath me we we our of not when positioned be really a going Company best growth. see an that's Where where is within cable partners are That's in we believe capitalize opening there. is it's And customers, we lot execute to equivalent where the said commercials talk premium under all consistent. to there's address Right on. has their remarks, we're question and with may of think there, good addressable under-addressable. We addressability believe it. the the I on The we positioned And we're at measurement my and your see think well flip we areas on want first been call and it, opportunity addressability. -- of going I that. now, video that growth that addressable, providers, in big the strategy; the darn new

fourth The the next around movies is growth area activation, and and is analytics.

merging over of at of And we is organized years, last divisions. and they're large of or Disney, talk In believe, core it's content. consolidated they're arena, the their Comcast with mega the just whether movie the television terms content you their if or increasingly that their number AT&T the movie companies how have

the And going after the right that, windows continue theaters, it consumer. to they're go some the respect to of move the at we believe movie time, while release, their direct-to-consumer in platforms, they and theatrical to direct same

So, even to I Greg, as anything the is do the in past, personally, a of to business that you it's is is review. been business doing believe add? a it's the Company think, an announced be the we going have future. else strategic, the strategic important though piece movie in But puzzle

Greg Fink

said. No, I think that was well

Bill Livek

you. Thank

Operator

Aegis question comes Our Capital. next from Victor with Anthony

Your now line open. is

Victor Anthony

the guys. And movie for thanks Thanks, color business. on Great. the

Just to a follow-up that.

were just statements maybe guess, you exactly filed of clarify on a If could at clarify it the versus what estimated quarter, have kind just like you may you the the that essentially bit, And lower is second, your you the I that interest, inbound you about Starboard. XX% roughly could quarter. fourth said receiving for really consensus EBITDA revenue third guidance meant. looks And

that you revenue relative second quite we XXXX slightly of think to EBITDA to really, is EBITDA So, is? about guidance? of that, the that what I adjusted it should get the wanted your to And for sense for quarter up fourth a the to that got magnitude how

Bill Livek

going over to Okay. There's lot it there. to Greg. I'm a pass

Greg Fink

So, questions. appreciate I thanks, Vic. the

of try Let on me touch to I make them. sure that all

So, I strategic question first was think your options. around the really

I mentioned on earnings As end strategic we all and said we options. remarks my had at of pursuing and call, are in release QX that the our

when people, inbound what I have regarding And, that We inbound means. obviously, interest, to you some talked made continue we statement, those. examine as to about that

looking we than different can't And covered have. At all comment and all think anything the a means inbound, this as certain last options that It those aspects around around point, as forward. taking clarity that move around could we we we think mentioned we flexibility, evaluating I what Starboard really earlier, certainty be we other be could of aspects time receive strategic. the possibly of at we'll and note everything look that all we're as I of

XXXX, we've rate As out you taken forward compensation when run million it a cost a next that standpoint, I of full you people that the to from the have year. relates guidance cost mentioned of the over think about $XX moving

relates given the moving it the year, a see throughout positive be EBITDA just to So, specifics move in as relates as I direction we earlier. said quarter, XXXX where in more will we that adjusted and specifically to as we fourth it it as haven't positive

So, given taken system, the around out put But model we you think, haven't could the I as parameters it. costs of than any think out I we've specific given those higher to XXXX some model with as pieces that from there. far it of the revenue

Victor Anthony

you Starboard that how think forward? a flexibility about Just it face, going the should currently inbound issue aside, put dilution and follow-up again that the guys -- The interest. with we on

Bill Livek

like Greg, the handle you to dilution? question would on

Greg Fink

specifically you interest the around Are speaking payments?

Victor Anthony

Correct.

Greg Fink

where So, and continue stay to sure by we that at covenants a our the our quarter a want And last we notes. cash look, make our can that only. for is, line imagine. forward each quarter, each cap, needs as cash minimum we to thereof know, position whether the above issue we make as and don't issue say we all, quarter look close we stock cash as And combination you and in of you cash to to can get shares. we said that decision have capital cash, can at current shares; need requirement the we not to issue As or second in we’ll We

is each we as our So, what quarter, based what position I is. evaluate just forecast and outlined, that on will cash cash our

Victor Anthony

much. you very Thank Okay.

Operator

from Alan [Operator Instructions] Gould next question Our Capital. comes Loop with

open. now is line Your

Alan Gould

few back, questions here. Thank you. Bill, welcome a

making any mean, this I now? as Bill, but on mean, interim is been see CEO, probably the back you've your front, I priorities know, what and changes you're are that as I one up day First you Board, CEO

Bill Livek

Yes.

I with along sales job did structure. cost sizing believe the is Dale fantastic As right I a our our earlier, product priorities what said team of priorities, and

analytics, to basics Now, we have, the And that's time, Alan. focusing we cross-platform the that’s it's only I to and movies about oftentimes, long already really products push the on and activation, addressable playbook new products on and best through approach. executing on the simplicity, video that continuing using and is when for focus premium continuing is the that and that's a strategy OTT, sell so our under-addressable, believe historically, around

Alan Gould

was at there out point expect as a out still are product beta a when there? on this -- be available? at there product all time? platform to Is cross-platform we where any there product could functionality? cross-platform -- beta point So, Is And there beta in one we to -- a commercial suggestion

Bill Livek

Well, we're already our commercial on products. some of

So, digital. we're doing Comscore’s It their our And unique special. they're their if quite been along of schedules and system, unique what unique is in started you look news contents, over to And content. the have Nexstar through deduplication markets, they I top doing with all with tagged it. with our tagging local well methods, that because at oftentimes sell believe where they have able television

stay we're going of on to energy. future. the where a that putting That's be lot doing well, but in tuned So, we're

Alan Gould

How Okay. was that lower national much And, lower? lastly, TV.

Greg Fink

and flat, don't product when We by we have TV an local that growth cross-platform specifically, provide at Alan, obviously growth break do But, that out we impact cross-platform level there. combined our and of granularity. were did but category revenue look we

Alan Gould

Okay. you very much. Thank

Operator

Thind [Operator Jefferies. Instructions] from Next comes with question Surinder

now line open. Your is

Surinder Thind

number back, we end downturn expectations flexibility that is much organization Obviously, a there flow question How can for initiatives. the maybe guys maybe cash But say the organization. let's cycle the safety where headwinds by should a a bit year. how about big about we How or of are might implemented this headcount, let's that in kind done next at the picture margin about, the are year. a we little price of the in point? of of maybe or take breakeven more of step in maybe produced is the a a stronger economy be you say there what in sense if think the efficiency are a should I'd think to like just have

Bill Livek

know who with Thank always a a Those you margin know of you safety. to operate one. for that that of question. me I good That’s try

bear and we base. that so believe earlier said it been cost we structure cost I As with syndicated our now, products rationalized does off has can the repeating, grow

difficult. quantification from revenue of a use like nice have when And the as business about become most is the and of a economy, XX Because to important model information more features our One about in things like behaves the my if years, the downturn model. of subscription ours more one sellers I business, it's or over although we is subscription justify buyers products a actually, are use things past more. our nothing to have more the get to insulated

these is good even ever changes the So, are economy, no one business insulated in though from really models.

Greg Fink

would that you just expense, I is question and you is, right, incremental of full to believe course And And are activities. the for we focus us as opportunities forward, But it's over -- year. on benefit there would I whole would move what the more about of I say of extract the all what get year's to expense. still been your a focus a just

take is the done, you analyze a substantially expenses expense at if the that nine when when going through things it base we lower had want So, a expense or at at XX basis. the XXXX than into on you look runway it the look months year, we've to months, this and you Company's,

think I to us that So, gives some generate point. at flexibility

by to given the a year. end haven't specific as in XXXX, point of We even to cash getting break opposed the Flow

Surinder Thind

And related expense then, savings. to follow-on just maybe a the

to at characterize sure You run correctly? the savings guys as looking I in that annual to are guys make you the were headcount the you add rate just million totality interpreting What's efficiency want in $XX cost savings. if I'm the initiatives? have roughly

Bill Livek

are. to We've as we focused as those it's nowhere the a want collectively, that been near gauge on Yes. headcount. XXXX good magnitude of expenses but our I haven't people quantified mean, the about think for what

when all model I detail the you it’s different collectively, XX-Q the regarding that a out will when in what of nearly think, bear And think statements significant we But our categories will headcount be expenses. financial small. as that of means no our could a is annual file not it I by savings but the out of there be. we lot obviously

Surinder Thind

talking of some it your comments the of there? Bill investment incremental misunderstood you that sure guys would Any into made Understood. spend that righted color of And you be characterization perhaps? fairly the bit think investment maybe put a like areas. I is there, bit the then, the -- little incremental savings the meaning little that pedal of a you about do into before kind a or I helpful, comments, some make of sounded one the to that just there's redirecting to growth metal. been maybe Can investment kind you ship was can Unless under the some of

Bill Livek

color we I about the we is is again, what pretty Company think the as the think like our radically. Well, to I do. would world only color add -- well-positioned changing And is

and living And tagging census we're business a And by a network. have is currency big earned we a informed. measuring on and great market. entertained changes. here a the And focusing in have a these this We how consumer's always big,

structure could way, the that. the sales we have product the now, I we need has investments where and for advance cost the our team need time round lifting. was a these That best where see now. And way management do And savings spending really revenues. not we and that organization The and So, that return. of out it heavy organization Fuller because what of employees to it's been before rationalized, we it. invest believe they've Dale have capitalize for do investment was great That's Company in of deserves we done. that great on applause

Surinder Thind

that here, a one the bit there's outlook to of more the color was, that of number post on final on that given the Any clarity segment, you that the comment would was revenues, trying of then, any XQ, renewals. related question decision, digital that a have think syndicated independent business I And for made that that up us, to they of the or helps of thought that what better the make kind kind are an have deciding just come provide analysis clients trajectory? you a of can with factors understanding in maybe when

Bill Livek

the a the their renewal think a lot publishers any as with in has But They there's want nice guidance that on Has as course we are that number actually no with We there don't of forward its know. But the ad completely? networks. Well, programmatic their forward smaller And past, what inventory with became add that? to cross-platform. already through great run we're the there said that to think on place longer cycle, as our look we a part don't have question. Greg, Company of than gives in own. in a with we given. digital, do opportunity we business. digital more have But been there's along TV, anything you us sell

Greg Fink

No.

great. that's think I

Operator

turn for to management back over any closing the like remarks. I'd time, to this call At

Bill Livek

made of and innovative and And industry. in that our new going is in progress be what very while solutions organization operator, believe to of the you, revolutionize is a are customer couldn't Thank the strategic middle develop company transformation, I prouder much. capture the we wins really our to repositioning product I that

groundwork We to has the we upcoming are the investing business potential for in you quarters. forward and in look harnessing sharing as our progress that our lay the our Comscore to the We as future. results

much for the very interest to We'll Company you you your talk thank your we participation. in Thank all soon. you. So, and

Operator

conference this today's and Ladies Thank gentlemen, participating. you for call. concludes

disconnect. now may You

comScore (SCOR) 8 Nov 192019 Q3 Earnings call transcript