SCOR - Earnings call transcript Q3 2020

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the comScore Third Quarter 2020 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] As a reminder, this call is being recorded for replay purposes. I would now like to hand the conference over to one of your speakers today, Mr. Investor of Director Ferris, Relations. Christopher ahead. Sir, please go

Christopher Ferris

Thank you, operator.

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

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

actual our economic the differ materially number impact. uncertainties include These Our COVID-XX those from of and periods risks the because included Bill risks uncertainties Bill? and expected in those or results of our related on future its and those call over and Chief XX-Q may can to with to currently now the other pandemic website you which the turn Livek. XX-K, comScore's outlined Officer, in SEC, find at I'll www.sec.gov. filings Executive

Bill Livek

you, everyone, us for you, Chris, and today. joining Thank thank

addressing begin by quarter our today, call. third review. last earnings On by call, an we our me Let earnings announcement our committed to strategic

our to report a significant recapitalization with reduction in While agreement, we sheet, transaction outstanding advanced in liquidity result balance anchor enhance the and would with say a that investor. in I'm an respect cannot are pleased transaction profile. we a definitive discussions to If debt, consummated, our

initiatives. In addition, relationship enhanced commercial to support the will our growth an transaction provide for

advisers a Board diligently Our toward financial and work to team, management continue conclusion.

updates we necessary. this process the timing to determine regarding further the and provide cannot of intend is provide outcome we assurances However, disclosure do not until additional or

We what this who great be of the questions able stakeholders appreciate our all from also is patience have afternoon. this to process. beyond a strength all answer We our through the and of press will trust release in this about not exhibited

to their them want call them for Again, despite to proud from thank represent I'm let's today. continued dedication and turn strain quarter. applaud the for their employees efforts, our the I Now I the on to outstanding pandemic. the

movies, expectations. short to in as pandemic the quarter our fell of revenue Our be impacted continued generation the business, particularly by third

However, we business signs across our positive saw lines.

performed business increasingly with by audience gained double-digit addressable television advanced well who rallying in Our TV embracing clients momentum currency. and our are quarter, around year-over-year. National advertising the percentages agency metrics growing local with market our and We

buying will in continue One add Our Advertising, Pinnacle local of who and dollars in we signing roster our business remains be to millions advertisers our is comScore to using exclusively advertising. strong, progress clients. TV who example for spends of major for

compared Through merger Greg XXXX, recognized later well to we million more details the demonstrating in go that the XXXX nine $XX the swing of the will and EBITDA into on financial have to trend signed services this a the clients. third with quarter, our XXX% We digital quarter our we quarter logos, generated believe best vertical, in and to technology that XXXX. I'm renewed from continue new million eases. we Rentrak impact discipline positive call. core also comScore. pleased review adjusted when EBITDA, of is stabilized which since where second enterprise-wide in our adjusted pandemic-related Our strong financial of due we say our the we positioned will months are in $X.X in

a key number in win positioning future drive the of Now and media like we beyond. cross stream announced weeks A to measurement XXXX growth in discuss comScore measurement how advancements few ago, to of I'd our we're of revenue and capabilities.

this based groundbreaking and an currency. based enhanced to ratings exact our audience plan industry Based on how partners our through and cookieless world. have this looking drive we value in our we will believe solutions our a course, leadership and like attribution, shareholders. of including forward-looking commercial long-term advertising, to media walk explain global you and, to We forward and pivoted I'd to for solutions impression approach outcome you

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us. will cross strengthens measurement where the our rollout TV the eye new impact footprint, This have toward leading TVs And data customers Samba already begin Smart The agreement time. connected to international an advertising continues quantify we better Connected an an one and providing comScore's partners with of over quarter, of of piece expansion efforts to customers. measurement puzzle. capabilities TV cross-platform across expands with in cross-platform TV, our markets portfolio European our innovation a of TV aggressive solutions new companies Samba our connected TV, plan brands measurement of the launch expanded frame commitment addition with solutions, in with to globally helping our we are footprint their with platforms. information of the of data to the measurement

product to capabilities. for for across with innovative go-to-market per expect our few streaming privacy and premium national array LiveRamp. XX our first sales. direct clear. inventory. our monetize focused ecosystem. comScore's advertising on-demand next-generation to new enhanced local million attribution including for new accountability we through increase focused new and motivation ComScore solutions, additional their addressable LiveRamp activation better services enhanced Plus marks and milestone month, The press solutions monetization the unveiled will expanded LiveRamp of and our we over of for measurement a offering into demands programmatic measurement, map live focus TV more our powered ecosystem clients households Last This on both The innovative develop build by of ecosystem. TV, exchange noted our integration privacy local and launch open cross-platform As solutions comScore. The advertising XXXX, develop partnership tools leading first-party and products the Math outcome-based across our ago, growth outcome-based video the the national partnership with cookieless release is our to in an new connected Data dovetails the we contextual a in services and new footprint to products allow with This sales, these weeks world that edge and to our solutions

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for generate us three to all in We enhancements growth revenue expect these beginning incremental XXXX. of

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quarter, platform awarded one comScore device third achievements a highlight the identification, solutions. one measurement develop for enhance three viewership and These aggregation. co-location household for cross and for to was device patents, new household identification, commitment U.S. During our

releases the years. ability opportunity and a XX ability as been from superior delivering to for highlight eSports would and like as box movie measurement Movie innovation offerings. desktops, IP for portfolio trending to XX% an as it's gaming, we understand videos signs. TV closures a this to like back spending shift business. gaming ad for positive for China to Our audience large by away. not to upward globally Twitch three over gaming. continues the includes enhancing clearly a about gaming, an I comScore we U.S. to opportunity in media take spent Gaming delivering address now and measurement streaming our but unique streaming a underscores to comprehensive comScore greenfield normal, over part has pandemic. the increased is more be Earlier theater has audiences. office believe vertical. the streaming take announced in In has hear increased are XXX% more seen live a measurement gaming measure on I'd deliver Time during Japan, patents privacy in usage us Expect past world. roadmap advertiser's impacted opportunity live seeing going a numbers. in new industry partnership our a year, three live and to percentage The eSports are Total future to our and years this product over example, with digital we moment than conscious the but to of and years. past as not partnership behaviors nearly eSports of viewing, has the and remarkable of a cookieless

when We there. to measurement, will office the but levels are we to think prior get the it and XX leader return in us believe pandemic XX the we take business ends, box months can to

across Finally, wins note successes suite. customer the product our I'd to and like recent renewals with

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with For on-demand, we secured STX a renewal Entertainment.

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behavioral activation for secured and advanced up, are renewals marketplace wins quarter and products, To segments number renewals, customer solid also during XXXX. in clients even and movies true for We pandemic. our optic business our streaming with with launched a excited wrap our a of the it was the we

across new advertising developing and ecosystem. innovating, the relentlessly are We products new forging while relationships measurement services

Greg Fink. I'd to Now call turn to over Officer, the Financial Greg? Chief like our

Greg Fink

million $XX.X the planning in from was to million reported year. $XX.X decrease Today, Bill. quarter reported from our compared the million continues $XX last compared products. third quarter in you, and of Thank quarter third digital to year. of syndicated of primarily to Revenue quarter in revenue third million be the ratings last third $XX.X we The

strong, revenue in third our to and XX% XX% be quarter the digital compared declined representing ratings of to While renewals revenue syndicated the XXXX. enterprise customer planning in of continue quarter year-over-year,

compared was of closures syndicated was the we of National by the contracts as higher exit new to revenue the part pandemic. compared revenue as and analytics third million as decrease Revenue compared revenue. quarter was quarter. the the Solutions sequentially, lower year continues from million continue third year we was sign million from due impacted digital was the revenue by quarter approximately quarter in be prior the optimization in realized to custom compared in quarter a in last to $XX.X from of million X%, competitors. TV digital Revenue reporting higher and last third third some $XX.X $XX.X was result LiveRamp. and marketing revenue theater to year. The However, activation $X.X to offset year in to Movies of to prior analytics ongoing the down

impact expect timing is we have theaters the uncertain, scale at reopening an on continue closures to revenue. of to theater While movies do

Turning to operating costs.

areas marketing we costs the headcount prior quarter reduction of to We which from lower levels $X.X these includes decreased expand implemented G&A compared to expense marketing, Selling from operating took our expense G&A lower and fees. in year-over-year year Our reductions revenues million offerings. The as expect and decreased throughout do ago $XXX,XXX in quarter we and actions ago revenues, our costs to in million to of $X.X most we declined quarter and core sales year last expenses, $X.X staffing quarter operating due R&D year and million cost for reductions million professional further compared in over the declined quarter, relates decreased and $XX as the year R&D the the of base. the product and for continue headcount quarter. decreases rise by XXXX. to third our the from Cost third to and cost fees. professional compared to significant

Additionally, we quarter in to our our regions of began third the to XXXX, U.S. focus in hiring the expand efforts outside capabilities of

our focus Over to year in allow on to support initiatives the the we've while increase the throughout us maintain will long term, putting place to been continuing headcount growth cost. this

in same net $XX.X expense million transition. the we to short last year. in compensation an million net of the term, third quarter, work compared expect a through in loss reported loss period have to increase we In of this we a the However, as $XX.X

Despite less at to have cash million last adjusted compared for was to million million the was adjusted first $XX.X total pandemic ended the XXXX year. EBITDA nine the months the quarter from through last For $X.X million XXXX. compared compared decrease cash $X period $XX third primarily to result payments. million $XX.X than months revenues, The interest business with XX, challenges first nearly a of in We year. $X.X lower the of cash nine same of and generated December the for quarter, we the million third of EBITDA in

ad Looking forward, we revenue be by to movies. in impacted spending to continue expect

agreements benefit signed term, will during We are new particularly XXXX near economic us if optimistic and the and that in abate. headwinds we long have the partnerships

visibility we However, spending we about better ad theater cautious until remain have re-openings. into revenue growth and

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

Operator

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

is line Please open. ahead. go Your

Laura Martin

much I'm will this because for until being up date of -- how big wondering, quarter, one won't remember in that the you I maybe fiscal know end costs have couple. Comcast you, I'm to whereas think so then see year Greg, to in integrate XQ a are what maybe for political XQ cost things much secondly, comScore? political the we is this So Rentrak So of advertising to the I delays? how in year? And wondering probably also and eating we Comcast year revenue revenue next used

Bill Livek

candidates bombing, on. a what wasn't But and cycles future was presidential for not in toward stopped. doing and presidential what cycle saw And I doing going the you had up think seat we just the the I then They political, Laura. us of and this was happened, we're there change call, end, would for were candidates year. targeted to the pandemic it segments then pretty unusual primary out political out highly I'll TV. "normal" Greg you, Thank on targeted with I'll the I Democratic hand our of started Then what the advertising start The question. Political looking much the an off lot throws basically both media. would clearly where call targeting setting carpet for cost over cycle.

enough period to extended that of in be time, there used long period of my time. -- cover got money voters to to not an voting is As opinion,

important. targeted the believe. on to year, for had political please? question, revert highly we though was So softer anticipated, us back Comcast the candidates future, in was But will even than I it this Greg,

Greg Fink

Laura. we've Thanks. But shared this it. think -- contracts. we've I shared don't think specifically XXXX. before, Appreciate I will I what expensing Yes, And that before know speak we in I about we that are Comcast say,

done So QX we've we the when began since that integration.

moving a will would those about obviously, already full have in on run a be cost of year, you forward, basis are XXXX that think embedded when similar, it comparable So rate. it the XXXX

short and think specifics. answer I the provide don't is, we long So

I think we're to but seeing rate similar have would run you have today. some estimates a the rate run XXXX

Operator

And you. comes from Thornton question line next Thank Truist Securities. our the Matthew of with

is open. line Your Please ahead. go

Matthew Thornton

any any to bit give us I came we've around I'm stabilized comp, thinking how revenue a quarter. into in you'd Secondly, wondering latest with commercial more you around that is we that I we here. apologize that that partner, kind And around about third, revenue the maybe late, can of any And that what relationships just, digital just know, as good be but of -- I'm on put enhanced typically willing as update kind missed thoughts any about you and guys for talked mean so anchor just it's put XQ XQ getting digital a on specifics you or any a hope I little I'm about don't might look obviously? color kind curious cautious. just there? talked about any bit growth, sequential that if any mix, curious this. more just housekeeping, potential the bit talked if Maybe digit remaining little a could this you ratings first think stabilize this just on a out color I investor. particular strategic percentage about about update in of Bill, of the forward, maybe there? then planning, the modeling would without of meat if question, afternoon,

Bill Livek

Well, there's a there. lot

than into you XXX% had digital, we the review, press On enterprise-wide is we easy. strategic clients will what continue bottoming say more thank that seeing have question. XXXX. release, believe the On We one's we're our We for out. but predicted, renewal the anything can't the with in that

out digital on focus privacy. there because we of service, increased has of believe, a the Our potential lot

excited the you had? are we So that questions are want process sequential about the do other that Greg, Matt that, to we seeing. take

Greg Fink

Sure.

QX. say Matt, me this it, just QX ratings last XX% missed you if and Let planning versus for XX%

about I point thing was X%. syndicated think the QX to is from to out QX, digital down

to So flattening we out we're see that starting expected. the

as time come we it to know, that takes full you clients, for into for a As revenue the quarter. sign stream

pointed for starting So we saw for quarter through looking that is to as we QX are QX. we're Bill a contract that see out, in as follow as renewals. that stabilization, us And large far but

of QX not I As giving best due amount like happened all we're things of a around the spending be to in your were held year the to to are tends activation that ad things because not quarters of in typically last earlier optimization any projects of be have back. analytics there. we'll year the revenue, areas or you're to uncertainty guidance and us, certain question returning. fair do in for QX correct. tends the of one expect And whether and while projects, higher that those

projects that some of recurring, to occur see in that fourth are the quarter. expect we You'll those

Operator

our next of question with And Gould Loop you. Capital. from the Alan comes line Thank

Please open. is go line Your ahead.

Alan Gould

questions. Greg. Hi, Hi, Bill. Two

is to to this out And cross-platform cross think going second the new one First, of business? impact when do measurement, IDFA think you coming pivot revenue do start on seeing your have with you we'll respect on what is platform?

Bill Livek

We that we're to well Well, an impact first, that of have data including going panel industry. the digital. think the have, in because IDFA we assets the on our positioned it's

them and So solutions about we're working more talk we'll the optimistic right on there future, in the we're our that are solutions. that

to to not CXX will revenue CX perfectly groundwork is approach capitalize this relevant, census in believe set won't audience-based think that, -- that XXXX the the going but We CX, on the puzzle. because to away of longer here to have of in relevant. of -- In we've that terms And piece shipped no up our we from capitalize impression-based, I on been there. a to in less is platform, less a say we're cross be relevant days, laying XXXX, future. lot that the

Operator

line Thank next comes you. of Research. question Kramer Arete the with Richard [Operator Instructions] from And our

Your open. ahead. go line is Please

Richard Kramer

A one be so the change or and investor the the going on is this And existing Is same you one the that my can given issues very two this you had maybe with many of the quick you before answer. then previous something fundamental sort partner to strategic had or is. questions, first investor?

in about TV. talked and national addressable You growth local,

reasons next do one into How go about long when you sell of next the new Company those out the grabs? that a behind they pipeline, multiyear year, in year. that do that Given cycle the product next have new and that revenue measurement there the this products TV on faced pressures round implying with has you retendering into resetting year? spend could your think a be about main this profile your and deals can come talked rival going you're companies going a for investment think year? then is there the marketing out that year? secured some usually, that, the and And you to of claiming may you up on for where next so Is a year more the variable think expect your Or do to you be to as QX, of there's I agreements, And for be restrictions How product do sales in alongside you go and finally margins sales about expense think market? have pipeline it. for

Bill Livek

take further ones, press release. as the Greg the one is the I that on we in you let than but the what I'll top review, question, appreciate strategic cannot financial the comment had

opened your in advertising. up -- contracts second pressure question If was being you about with

previous on before in period. business economic the place oftentimes, a to on downturn, business our a during in said quarterly a calls, there's is of sell good information syndicated And difficult we have harder. about also business. being contracts. attributes sellers the a long-term And One great I've have As number is, the

agencies will investment to by to the is with impressions it. Ad our unprecedented year, cannot we The us Comcast national give end as the to ad in of made as a Pinnacle. precursor agencies optimistic the forward coverage and companies we're importance and that us, that more of So, stations done addition going the I that product, advanced with want. utilizing those using look of overemphasize more along local us with media we audiences be the

WeatherTech side You on exclusively. the know Honda ads they're you helpful a our going, have Why see fits look products information being it us on understanding has that television, them to as they they that of better would and that where the are there. service we outcome-based a Kia, switching of Canvas at doing because national through variety

specifics, that the expense. to we're cycle that started. already it at marketing looking turn for on So more sales has any and But I'll process over Greg on

Greg Fink

over entire would staff what of adept already. Yes, our they're solutions have is these conversations I be pretty think the of you year. those been sales in to say I talked developed course What being having a the little bit cycle. about the is, going sales And

integrate the already we've time works are So those to in some things now. that been about talking the look as for Comcast data, now we

are people the for up think and XXXX. all that as we're of I end year up working towards into geared and So, getting the

feel we about So good that.

XXXX. the we believe move generate. that while these significant the through and guidance, we think no given the cost I cost think incremental On be I benefit the think will marketing think enhancements costs have, on But obviously this. that we we incremental we revenue side, side, to And generate as to will are that we we've but provide sales that expect and cost, there we as with will associated that understand I we doing that bottom do always focused line

Richard Kramer

sort expected one that this that Okay. us how off? from Is housekeeping a And that the Plus ongoing? give Or is of much ramp that? Math to you was considerably? sense And quarter? maybe just one. Data one is Just of last contribution Can

Bill Livek

Greg?

Greg Fink

opportunities Yes. around to we're excited move specifics that, think to It's enhance that. mentioned, would I we solution. that I revenue. as mean, continue to forward there's about we don't provide for relationship. move is forward specific we us as or generating say continue product Bill any one What We

Operator

And for questions conference further your And Bill turn to Livek, this no any I'm like the time. showing further remarks. CEO, back at over I to would

Bill Livek

Thank workers you, heartfelt employees. workers essential period. comScore best front-line wishes in operator. look and We results in quarters. a our all for despite behalf and Thank XXXX we with in we've the joining guests that through thank us as coming our progress myself you, you remain company our we send you sharing I'm thank challenges future Thank progress health to like to pleased excited pandemic, a unprecedented you, about responders, and to today. and made On for the of talked entire operator, and manage and this today, the this that I'd we care investors team, the about. and forward including joining first as

Operator

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

now You may disconnect.

comScore (SCOR) 9 Nov 202020 Q3 Earnings call transcript