SCOR - Earnings call transcript Q4 2019

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Comscore Fourth 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] Please be advised that today’s conference is being recorded. [Operator Instructions]

to Mr. conference pleasure of to now Relations, Investor is hand over the Director It Ferris. Christopher

Christopher Ferris

you, Thank operator.

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

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

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

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

Bill Livek

And across TV start Today rating we're like Chris. and and services. of improves Comcast. agreement begin to our move Thank to an local This enhance into and markets households with direct today Comcast our footprint. national integrating our by our television national local deal announcing the you, vastly I’d US arms discussing measurement TV greatly measurement call our

viewing and predictive networks. stations The ratings will increase strengthen entire will audience and and advertisers, impressions announcement insights ratings, and audience television and of information for agency stable ecosystem stable is Comscore impressions Comcast poised The to add landmark benefit from accountability our and and this and predictive scale. already integration

We major service. buyers that information stand forward with to to with who our of time will and customers provides in the be their from first our discussions additional the all ability this this for inventory. advancement prospects so of agencies for value benefit and maximize and advertising to look able sellers from confidence, viewing MVPDs the Advertisers

opportunity an to capability brands, will and media We companies, agencies this to present advertisers, more growth. products sell believe enhanced revenue Comscore our driving

integrated and be our ads products, inventory streaming ability. Comscore of future with advertising services. dataset measurement to the for addressable services precise invaluable that more streaming and many ad will limited on Looking has require emerging and Targeted major measure

The and streaming major growth milestones are measurement addressable our expansion Comcast plan. partnership of our the services in all long-term

We are excited possibilities. partnership are Comcast about thrilled have to expanded our the transformative and with

the our becoming in growth to Comscore’s company months significant Since clients my four the capitalize us. on energy CEO front our been positioning opportunities has and employees. with ago, renewed on energy can feel of placed I the

delivering our and We relevant and products that are steps focused on our in product to taken have improve organizations. need sales game our changing we customers

our Chief As and our with product Amir of teaming an products to and Yazdani, and architect measurement rollout example, television returned innovation has Officer Product accelerate a services Algranati, David Dr. longtime movie key expert.

Hinnant, Officer, veteran and year to Carol Chief media XX is growth TV of the promoted a We cross efforts our where to she drive digital, platform. spearheading across business Revenue

essential as Chris products led positioning have for team must Wilson is strategy our our by and commercial driving Our solutions information industry.

green others. our in turnaround in renewals stabilization positive wins Media and and key signs saw We won secured our in CBS represent fourth syndicated House, Publishers the Viacom that business. back say these key developments many quarter BuzzFeed, shoots REVOLT We we numerous believe to a I Clearing we across of digital, many including customers iHeartMedia, and digital. saw proud very of and During digital am businesses

recognize and content publishers happening our value of view is of This unduplicated as devices. across how consume many the complete audiences

to believe the first push the which will unbiased party provides that the given also to I their privacy publishers We measurement privacy third businesses. turn Comscore around for world, lead see major laws opportunities to run

other business. with multi-year in party for we areas, Draper Television, momentum XX% announced census remains adding others. key measurement Quincy local we level partnership third are year-over-year The strong We quarter. In and such week all for are demand currency which announced Media customers to in as television stations. a in seeing grew TV and local provide the CBS-owned Gray the TV also local Last new Media, TV with quarter to agreements we CBS ratings our our

renewed had Our where multi-year to a and movie standard quarter In fourth measurement the quarter, business solid worldwide also for agreement. global a we we remain Paramount the has analytics. Pictures

are forging new using also our with solutions deals customer platform who signed be deal their America. time across recently a will real our massive in term footprint will Showtime America, also analytics in utilizing reporting, ahead analytics several We Cinemax long and Latin internationally. Latin and We including be

as to cross platform. integrated Today's well media moment growth, that before as measurement addressable with Comscore. measurement impression screens than fragmented all all discuss demographics. Now measurement for those to all us ever take I'd term devices, more across and new that's and screens, like needs will a position long best and The believe across we addressable products, for advanced advanced based is TV advertising ecosystem industry great

company best on this are a to We opportunity. execute as positioned

capabilities are creating are new for my opinion these analytics the with the these contributing complete is to only to all from and We starting provider categories solution deliver to see of products to landscape Comscore revenue. this exploit a and opportunities. results information measurement which In

me the information addressable Consider target that just and demand both An personalized. advanced or driven ad Let streaming, be one program can live watching Comscore spend advertising. households households on on preferences, a with two similar same demographic moment of is intents in addressable with can be buying advertising based households households known, these buying the of a household, in ad served way. but a on the all different even compliant households or these each addressable different is the two privacy preferences buying

to ad provide delivery Comscore and X.X inventory. with year to and increasing measure platforms, that next massive addressable the with inventory addressable uniquely roughly is working ads rapidly by opportunity optimize to billion By positioned is The eMarketer. according growing solutions addressable

would Google's on it our to party that touch phase believe by works me cookies out third announcement recent We XXXX. this advantage. Let

designed network behavior panel is meet opted through already consumers As their on our platforms. Also unique are while and distinctive interactions we where have digital census-based This consumer demands. to you of and know, and networks unique our consumer measure privacy. evolving those we share can focused we protecting advantage solution, panel gives across and Comscore a in measurement media census combination and our provide privacy, full

as new and a that privacy focus the we We very world advantage. made. see with strategic to the this pleased be am I best our progress

higher adjusted EBITDA strengthen actions, in local We sheet. our are seeing growth will in growth our generation confident coupled products. revenue digital, balance drive and with signals and positive I'm TV next the in cost

end greater increased the a business. small of to and financing position us provide At with transaction the will Greg that more cash our in operate provides flexibility details a quarter, completed we moment. our

maximize consider time. conclusion have a Lastly believe options at an closer at we we process I pursue must said a and to but middle stakeholders do appropriate our strategic not and we update to and ongoing continue value. any beginning, updates have getting the this to that we're - is all I shareholder We our review will end this time, as and

performance. will provide will the to Greg, financial Greg? overview an fourth turn quarter now I over who our of call

Greg Fink

decrease in activation fourth result syndicated million, million last higher custom revenue Today the year. OTT were to quarter small but products. lower The primarily decreases of solutions. addressable we digital of of was growing local of quarter Thanks, reported fourth compares These $XX.X offset which Bill. TV the reported by and revenue and $XXX.X and

compared eight TV was by and a from of a The $XX.X decrease platform the our These million, in Planning were last prior quarter revenue. local result $X OTT national of period Ratings in products. addressable fourth cross Revenue year TV and declines the a the to and decline and products, same digital million from year offset higher quarter. syndicated was decrease

some revenue comparable stabilization syndicated revenue to the quarter. the declined in we year-over-year, quarter fourth While as was digital third experienced

While same the million Planning, sequential flat digital a included $X.X represented the approximately fourth XX% line quarter on and with syndicated Ratings period non-recurring of a in basis remained and year ago. of revenue, a

and the that benefit term. customers seen several changing the have products privacy over we our digital for need long digital noted, will Bill and the laws, return As the business landscape believe

decline declines markets over the years we Additionally, and of which the few exited the are relates international now those behind a to some of us. majority last portion

XXXX. We are flatten optimistic that throughout the and sequential quarterly will declines slow

prior of optimization was from last quarter and as analytics of and by from digital million XXXX, $X.X was Revenue the the lower to to The year. in The compared The fourth quarter in marketing lift $XX.X custom decrease project decrease activation. the revenue higher deliveries. down from part was solutions million, relates the year. fourth products offset fourth in quarter lower decrease from

million compared $XX.X fourth Movies year. the Analytics revenue the $XX.X reporting in quarter in was and million to prior

products developing our Bill Paramount renewal and and We growth deal see multi-year remarks. traction gain the continue new his to such mentioned on from in high as delivering that rates

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

This year quarter the to reorganize actions took in we full our experienced of the earlier the we impact operations.

expenses, Cost quarter, of sales were $X XXXX revenues, fourth year G&A to R&D compared of decreased in costs. sequential the of a flat million fourth lower by quarter the headcount ago In operating lower revenues our cost due and marketing, fulfillment declined basis. and core quarter and and on year-over-year to the

million fourth due fourth quarter lower compared of by staffing headcount. to compared reductions G&A declined decreases the expense our and prior primarily the marketing $X quarter lower XXXX year, to and in and Selling was cost million decreased for expense over base. to other R&D from the $X

million expenses, our well lower in impact reduced other cost. we XXXX, reduction basis. services and on cost professional headcount, This During operating annualized costs the $XX corporate more by facilities as an than core includes as of

XXXX our and cash drive management to in vigilant flow. costs expense remain to will positive further throughout reduce We expect

net $X.X same million last last same adjusted a Reported quarter, the $XX.X For the fourth million of for $XX.X adjusted quarter loss $X.X in of to year. million the a the million reported period year. net EBITDA of compared we fourth compared EBITDA for reported loss of to period

non-GAAP We million for up increase and reported of ended third from million fourth million $X.X quarter from ago $X.X XXXX. of non-GAAP with the quarter fourth quarter million, compares $XX.X a in million $XX.X cash was the the net total net of which loss quarter. Our year an the loss December to $X.X

million $XX two issuance a quarter increase is The note. cash third in the term the year dollar to due of from

focus and in to executing continue growth generate to We cost plan for order our containment on in cash XXXX. revenue

we in cash we interest as transaction on closed operate plan. late our current our December cash improved invest outstanding in business with additional financial business, also will positioning with to cash. us us flow senior financing provides allow us in notes flexibility secured execute our on and while combined our satisfy The believe to We convertible

on to Based the outlook. I'd trends we $XXX a Now XXXX will million, current a from take highlight like million be moment to advertising revenue range revenue, stabilization in and revenue higher slower XXXX and decline driven to by syndicated of addressable revenue. in digital $XXX expectations, our believe TV to

slightly from the increase benefit We throughout be expect advertising. QX QX addressable political revenue traction and and lower and in XXXX gain each with quarter to we cycle then as than Olympic

Based full expect on as adjusted for X% year described, an continued XXXX impact we of margin to EBITDA growth expenses, focus the well XX% revenue of the XXXX. opportunities and I as to achieve reductions on cost

turn Now questions. back to let operator take the it me to

Operator

[Operator of Instructions] the with line Needham. comes Martin from you. first Thank question Our Laura

Laura Martin

Hi, guys.

Bill Livek

Laura. Hey,

Laura Martin

Hi. job here. Great

of like is right Comcast So somebody revenue. your you couple sign and Rentrak renew as that the there's from hit costs days you your recollection things P&L then away my you deals that the increase a up bunch on a when

of what's XXXX? So the term near my the because margin deal Comcast the That's negative first drag, question. in

Bill Livek

guy. Well. Greg margin is the

to it turn over I'll So him.

Laura Martin

Okay.

Greg Fink

going a cost. be low that data, significant to will do think Well, at obviously that can but to there's we it don't mean, we as I we integrate see we impact. any need something relatively

numbers have of costs and shared embedded XXXX have you in know, our negative to those confident already we that earlier. we I it feel the very plan a Some won't in impact

Laura Martin

great. Okay,

Okay, that’s…

Greg Fink

it it be you revenue did enhancer we because force. as we And a that believe know, Yeah. will

Laura Martin

just you're the that stabilized said or flat data you first stabilized. so insights other I that know quarter-over-quarter, a has is it a XXXX? be if that digital, guidance wondering then here which the could though showing have actually growth would the digital And line. And you one confidence there Okay. is can but we growth, revenue was us any at of you comfort Super additional of you number give can helpful. in was things any data more your give the Please. I us years long points is for can revenue achieve that downdraft in actually

Greg Fink

focus question. the you the quarter the Two seen outside we've particularly on privacy month Thank gone for California in have What Great is last one. companies laws, just that. the actually with to companies’ of a and that are important who green see those out there. us. to we business business is And I starting doing clients shoot are very the believe migrate back

because programmatic are they sales with the not also of the offerings of and who many when they have that much returning premium inventory they there's that abundance so that programmatic see are when had to that we And us their went tell used is companies getting what clients direct staff. of

to together need they sales what sales put tools So and like some companies numbers we are starting provide.

way, right a I focus on first on time So long market got turning Laura. the the our digital internally for the and in we've optimistic I'm it time, think is

Laura Martin

products wondering platform the I going which that is on were was highlighted? extended we of and like going VOD the do is linear you roadmap. last my strategies we TV, is duplicated plus TV, aside extended two the sort two those cross TV. addressable that which then market One to And the your first still on in was were about half just of predecessor be our sort and talked to XXXX. Okay. Are pushing and still are - of question product

Greg Fink

TV, very the is and you of puzzle extended a have addressable without important one Well, other, the piece right. can't

campaign XX you TV have different work someone minutes to on have ratings is extended cross to So who platform all to work. watching and for that platforms,

additional the seeing demand we're strong same. sort there. all roadmap of products were and products embedded And in of there on lot those in on one offshoot they're our a So

Laura Martin

very Great I Thanks much. appreciate numbers, my Those are questions. it. guys. Congratulations.

Greg Fink

you. Thank

Operator

Thind the of Thank you. And our with from comes next line Surinder question Jefferies.

Surinder Thind

gentlemen. afternoon, Good

of next the Just growth built TV maybe a the little about what with ET for starting into guidance? business you the in relative guidance. Optimization then on kind prospects What's Analytics a and to outlook for question of and the is bit Can business talk that terms year?

Bill Livek

at year at think well. you if smiling Look we a I have strong the all political we very TV going on mean, Yeah. that because going race know and it's a we to year. this macro environment, have look

We and target candidate has television, a be a to persuadable with presidential first think compliant persuadable in there's as you in of going we voter those lot privacy and investors voter. a definition cycle television merge with And invented during us And privacy different. segments a the typically good Obama compliant this in every know a activity many year of campaign ability we analysts long year a that that's of our television to their in for way actually time is super way the information television. the and

not Greg, sure them. if I or The I'm got other remember questions

Greg Fink

very some we've the right, recently of confident, the growth you that in that of have Yeah, highlighted organization I areas feel sales as changes say Bill our some not might would many we will just happening in had turn and things right. his the XXXX, that know, call here in are you ecosystem, of around done that the that

when Custom our about national turn on so feel talk Obviously of the cusp there. TV, business, we when was look right. that And exceptional, local confident you Solutions at you the we're

in other offset will As you slowing a than headwind with these decline digital more areas. saw the know, been be which you and has

that a opportunities bullish areas may very XXXX. bit the on year little and for this we're focused very we're think their I so And have underperformed on

Surinder Thind

the bit where should That's sounds the helpful. terms rate how current of squeeze a of you're about or the story, to like that year we progresses? expenses more in is – to think run as turning out how and the about side the versus And then the for year, able expense maybe little it

Greg Fink

think run the Yeah, rate proxy. good I is current a

I think the be of that course there us the will opportunities year. over for

other have You we fees around come will more know, will that cost there's and also XXXX. we've go expire sublease those the talked a professional lot areas we in down. to compliance company about leases, that And other of or believe that

for course margins behind the heavy around think I the continue but which there drive be costs the is lower obviously over think to lifting will those now us are helpful. I XXXX us, of to opportunities

the third the fourth quarter in a were little had and good quarter I and I third to would due sales But be the like. said commissions quarter fourth quarter call, the think as year right, proxies, higher end

And so if while I be they turn flat, out about think where to good in XXXX. you it's that, a think headed for we're proxy

Surinder Thind

you I'll healthy, expenses point? were I additional if fairly at then able we margins, helpful. a assume too grow to to are incremental comfortable should this much say That's where And turn stage at you without guys be to

Greg Fink

would on. say spot I that that's

opportunity an above Well costs line. we revenue you go to significantly know, there's in think would range adjusted to an were that provided EBITDA be I XXXX. why the we grow continue where That's us margin for total down.

Surinder Thind

then maybe a here. And you you point… Obviously, of that at guys are towards great success some What will of translate big to do helpful. it That's think take TV market local enjoying maybe more market. success the a this national within bit picture the question

Bill Livek

the think that's audiences, by I advanced Yeah, right. driven

talk services server video with but you we it, metrics. particularly quarter, our know, some video to utilize the streaming our with streaming product it television with and the integrate utilize and integrations you about market, buy, to being more think demanded in lifestyles that as versus us we our If and accountability consumers a gender with have products, age own we about we have the just as you see with server about new of the think national demographics. the to you have TV measuring And we business the product services, didn't major significant our in upside metrics

and revenue TV national just will too, But national that the have we our come feel good there's not on is headed. that brands remember for right. a It networks, business. national buy think business more really about in translate they our length going streaming particular But more is that are on. going because certain that to television strategic time they service So we our - has national that initiatives of where

Surinder Thind

me. Thank Thanks. you. it That's for

Bill Livek

you. Thank

Operator

Thank you.

from comes the line Thornton question next SunTrust. Matthew Our with of

Matthew Thornton

Maybe Hey, or syndicated to Comcast of as is going the of from so data some, with Starting there some into guys. could. to and would with to getting helpful households that Thanks a - for that color from or Comcast. taking timeline of couple zero the be this all them integrated a products that them zero the questions. well. What's function of from to just any all I

second just were question, intra-quarter, then the would loan, terms now And any color term be small Greg, maybe the – what there for helpful. guys. Thanks, the note that on the

Bill Livek

So add we not all our make very block sure all we and up markets that's in have numbers mathematical had don't so with that have we're an before. operator start to me representing let and Comcast we our national XXX markets building that markets, have, local to operators, like local where do we modeling little to had

of and that the of a advancing and viewing material you takes we're happier which will are in press great see by our We by have data objections the also one customers in complete we improvement service that last excited away faster. model we and why not know agencies know comes this. out are goes actual Now is the measurement you We're this as a there, that platform have, station in more groups work the excited platform cross across there. think we local local and in lot doing

that our Now for and is this that's capable complete team got important this super done a the something this strategically and end. to We've year we're That's targeted by us. before industry has focus.

top priority. making a we're So

Greg Fink

Thanks, Matt.

just me question address the on your Let financing.

the now our on all million, call X.XX% $XX note, information it's that in of filed interest, As term I today. XX-K here will around be two year the mentioned

Matthew Thornton

just then little again follow R&D And expense maybe alluded to Perfect. opportunities guys down sequentially. further you quick for was bit maybe one up. Obviously, a some reductions,

- hitting you not guess, growth around as costs maybe maybe your into about again the any turn I flex not low. growth all guess how think How time do multiyear and if thoughts I muscle. there, while continue I would – ability think it's to help a low, and be well. to cutting

Bill Livek

we to satisfaction. new helped got That's the it us, base Look, products. customer now the Amir Yazdani. focused I are cost relentlessly important. on builds build reason Amir right think super mentioned we've along products have at today we here We going believe many and Comscore, are products. of to that to advanced David with that the continue Algranati build great have team He and a great those. I And we

we And lot a of add to don't cost. have

the we bit taken with folks, easy team one know, of so advance and many perspective. revenue is time, that I've for in and Greg a the how in it's just far different You of to that long to secrets the kept we've a advance worked best I inherited a revenue. of spend of little spend know

don't to advance. years do in You have it

I think in this that's number.

Greg Fink

areas lifting and we fees, Matt, think There's said have lower. just sizable other to services related We people we I drive follow other done. areas is that drive I'll professional on we can I still continue contract opportunity think we right, Yeah that to as facilities, not that heavy are are the think that lower.

conscious think built. we things are points know, getting I things around, and your done getting you around So very

this. the so, I And to the lifting are behind lower, drive but around costs more is said, fringe heavy those as these

Matthew Thornton

color, the guys. Appreciate Great.

Operator

Thank you.

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

Victor Anthony

now, in changer is guess, you them of Hey, could right coronavirus, guys A guys. what just a which exposure talk on off deal, couple you I'll execution looks That's rattle maybe the you on Comcast guys. any? Congrats one. like the maybe game which about topic One, have, if for questions, I the just if now. sort

opportunity an Comcast more into And expand deal, you don’t see they measurement on that and it, or you television just the not digital platforms why whether of to for that guys look kind second there's beyond have.

could you have and strategic kind of you us through walk options wonder on I that if third, refresh on And us now. the right guys on your table

it, pieces of is of an it. the to end. You that said be, all could potential that of What is company, sale close end part you

could refresh you Thanks. kind just of us. if So

Greg Fink

Victor. Thanks,

the first the take one me coronavirus. on Let

to You it us impact really don't that. any see know, to as relates we

exit some international some part mentioned know, including You did area. countries - and other markets as for in some China that the I we most ago, earlier, international time

As revenue the Comcast that us. for we footprint, we feel to at would gave minimal turn we guidance I'll to look in the our Bill. questions pretty impact over and that global have comfortable no

Bill Livek

Comcast has were on doing. done great client. and video always the gave And having we're demand they been conversations that the honor a over work We've the information. in first constant company actually years of their us they're with what

And I consumer sure remember, server video the server make metrics there's video everyone and our direct platform, believe to goes standard is industry platform what who want to integration. to that a

into all So of work to as these new committed we're expand they our customers, frontiers. with

Lastly, earnings your said was really call, and it. in what there update, remarks There's options. was on prepared say, on will be I my can nothing other there's than an previous an in strategic question update when

Victor Anthony

it. Got

cash we should guidance Just about How the XXXX. follow in free EBITDA in conversion for up on your think flow a XXXX?

Greg Fink

adjusted think as in adjusted many and look I for XXXX EBITDA as there EBITDA reconciliation know, that such of items won't mean - we Yeah, as and audit the think you have I between forward, we we move had XXXX costs the investigation EBITDA in example. about we

a stock impact comp expenditures. think capital based adjusted it, about for EBITDA is I when absent So the proxy of flow, free cash you absent good think

and pretty will can where comp, based be, for a XXXX. So I think where that would trend about in be out flavor good back get think that take look think we you stock cash can you around flow the a at

Victor Anthony

you. Thank

Operator

time. to I'm you. Bill now Livek And Thank I the Instructions] no [Operator further remarks. CEO Mr. questions for will back closing at turn showing over this call

Bill Livek

of our for operator. joining us. We you our soon. thank with you sharing And in Thank our you I quarters. you look results of Talk forward trusting the today. Thank shareholders to and so all for you much, you progress to coming us those

Operator

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

comScore (SCOR) 27 Feb 202019 Q4 Earnings call transcript