Earnings call transcript Q3 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Please keep in mind this conference is being recorded.

I would now like to hand the conference over to your speaker, John Tinker, Vice President of Investor Relations. Please go ahead.

John Tinker

Thank you, operator.

Before we begin our prepared remarks, I’d like to remind all of you that the following discussion contains forward-looking statements. comments on plans, today, our XXXX. include and and November statements based are view forward-looking about expectations our prospects X, These as of

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

to update information obligation forward-looking We statements new disclaim or any reflect our after to duty call. today’s

also non-GAAP will be release under www.comscore.com, during We Please be call, we which Events available have Relations, our Investor are slides on reconciliations discussing note Presentations. press on measures today’s our to this we will this referring call, website, in that and website. provided on and which

I’ll Officer, the Executive to Jon comScore’s Carpenter. now Chief call turn over Jon?

Jon Carpenter

call into update lot months made Thanks, since We’ve got that’s progress organization. everyone a across last I’m us afternoon. been our for the three this on the and packed excited joining our you to

clients across call, and are in business we up us earnings which consumption second measure quarter enables an consumers drive to allowing outcomes got and based As I on media data discussed our unmatched our the entire enables insights as comScore’s to set, platforms what to.

and We’re adjusting data than XX more devices, desktops connected from million million million XXX more than XXX TVs. mobile

across million from at measurement Additionally, screens across boxes, got XX,XXX than company results we’ve office XX we’re than set-top box more also more countries. coming daily us world’s theaters tracking into and the movie data XX XXX,XXX

and far billions hours into in U.S. this screens of devices content us give of view of so an of the year the consumption hundreds All unmatched those

at more media engagements than spent scrolling XXX the this linear and viral not Through couches, nine XXX watching Instagram, Audiences our XX than going on hours months social over tweeting, billion but more generated hours of of theaters. on than more and movies spent a that’s yielding billion TV hours back at home year, U.S. billion the viewed consumers first TikTok. billion on

Consumers working clear interconnected are proving than It’s consumer than also that just as marketers that that is advertisers. gaming all of more ever, at billion us unique all that the lens medium that to a a ever of today’s hours, advantage is interconnected of that and turn and with comScore these comScore, more we’re media how the It’s view growth. unpack got we to more holistic And across allows for into into consumers it. gives understand hard ways in before. we’ve mediums a vital consumer interact and advantage than which

three You’ll recall to earnings from arenas where I the needs talked primary quarter in call that our near-term. second about, win comScore

in legacy stabilizing the areas. we’re progress digital three and cross our currency, platform First in and TV in local that excited making all I’m space the in innovating products to highlight in

Started with side we in win. In within for those side and data, with local scale needed on TV the last our opportunity the on that of the to measurement in order focus we laid call, the the out things faster space, with station expanding the yet. the working product on and us delivering expanding converting today us buy demand driving and existing that work groups and to

and advanced advertising be into transactions. audiences We like sell also interoperable, things of to on know we sides need integrating buy workflows more the

great choice under relationship currency with as items, the partner be were comScore on our Charter measurement. continue specific of was some we for those an of agreement. extension that solidifying of terms I audience our updates into data get to will yesterday of preferred the to I the license announce Before able pleased a local in Charter

clients. doing all to provider this. September, hours it markets. when that execution XX content to to we our delivering within product of comes is data data front, we needed faster data only our get initial we measurement local early the to measurement In this pulse our With had release knew the comScore On delivering improvement,

our clear the nimble delivery, data my heard need pleased organization as clients that we we’ve we can optimize get responded how first executed. This that wrong, so they we’ve to as deliver line. is to an we me and loud continue faster don’t step but We and quickly more at aren’t and campaign tenure, short the I’m in faster at get finish

with have clients first using comes partnership age and it made we’ve to campaigns demos. brands, rather advanced demand solid TV gender that an driving also In agencies local buying with will audiences than them When announced and industry progress. Dentsu currency we their September, for standard

new has audiences few level advanced TV ground we’re on offer advertising to to incredibly buying the for happening company been national Dentsu break that all at measurement advertising. is years local our friends can in only the now, at with While in excited comScore local and this markets, partner a

not audiences, what familiar mean you until by of on gender. campaigns those recently, transacted advanced age with have advertisers and and publishers For based I ad

will with and clearer them based women to allowing a versus of able engaged or of signals driven such signals, affinity may comScore, leverage say, creative intent partnership better as And picture intent XX as what drive more much what social platforms let’s they be audiences, to between be their they on. XX the outcomes. for, clients giving watches, based target, through optimize ages they search someone to their So their an what more Dentsu example, executions

and on, local reached stations agreement announce with XX adding our Scripps. all to relationship to to station agreement This expansion existing build important of our their markets regards with efforts new our excited of traction expanded we’ve to include our with I’m an Moving momentum to partnership. and that groups,

partnerships TV us stations. at across in goes all using XX, With The XX% are like trust of the many to also top the of one their from those comScore all critical local stations. currency Scripps, our station team growth. others, that with local our announced for the advertising we Scripps placed comScore groups spend beyond They’re just as buying along all has with coming inside

appreciate our going they agreement Scripps look forward, I three-year and that’s in growth and exactly to trust over kind team placed comScore that to their is going us This I the and forward beyond. and the them delivering this of leadership fuel at for progress

look, progress a side focused a this the expansion I hopefully period execution, very local at goes things without So and and that our saying, more the I’m of ever interoperability. station short but in remained And than four product in group made tangible result, mentioned measurements. top, buy adoption, time. we prospects We’ve as bullish TV on

growth close the by in local and hard over and and in. this year last our year-over-year what several rate teams the in had local put focus deliver is We fastest expect to we’ve driven the growth building. years This points work momentum to to of the XX% we’re they

but the we’re early still, not in inning slowing down. We’re

I front, priorities three about last that that we’ve digital the the got call on. On focused talked we’re on

First, executing on the total to integration our product of bring social market digital suite. to

for faster industry-leading Second, focus and led automating in finally, driven cookie-free focused us on product data. that re-energize on the solutions, we’re to got strategy we’ve future has delivering that’s delivering by the customer a

digital synergy, audiences to we’ve offering. view our one and to in launched a and clients. And enhance deliver place on product continue our social TV topic the of total connected together Total data digital, more of digital brings to complete

audiences data which platforms reaching be TikTok and indexing users likely only most on, of on matrix page, As and users requires streaming we’re hours omni-channel approach platforms this hundreds popular to more across example TikTok streaming the interrelated as screens are of active in more has front an the that of billions showing to become power. comScore an

This leveraged many and up today capability running, clients. it’s and is being of by our

targeting fill deprecation kind void privacy in by the Our also completely is helps third-party and comScore creating activation a that that the changes business, the taking market. way, cookie leading are created place new of

free as targeting. targeting privacy Our performs Predictive that product Audiences as just delivers well cookie-based safe, cookie

we to in seen quarters, innovation that fact, over our targeting That and year-over-year, that expect outperformed a all In found than EightBar has IBM other their work performance tactics. and and double with continue. trial more Predictive Audiences Audiences Predictive agency comScore’s two

third-party selected on with on that here, for that recall they we provider set the solution measurement that Building last as third-party ANA may proof-of-concept the wall as a cookie and This from the deprecation. along included partner comScore participants effort that summer as had ANA, many you side post VAB announced the with the measurement well market sell gardens. MRC media the cross buy and

proof-of-concept to measurement I’m recently that that pleased delivered been and it to We successful. this taking that we’re this forward you privacy showed has know approach let

head In addition, providing to to outcomes internally cookie as approach line updates pilot forward into measurement, can this with that innovative you us product we’re we our look list taking XXXX. and the was on in

with collaborating you’re talking cookie lead. is actively one activation, world positioned ensure measurement the the to comScore or and about post that is So market innovating that we’re to whether

talk Moving on about second. to for cross-platform innovation a

few today uniquely deliver already a that positions mention complete has and me cross-platform times us heard comScore cross view for audiences, This measurement holistic clients. of to platforms. devices our You’ve a

that operate In census level we of from, devices millions addition panels. of we’re collecting hundreds to the also data

all panels long activity, manner households and total mobile of of that, behavior. products, from devices going have XXX,XXX smart of devices. provides media familiar but devices. combined that’s view census captures of metrics activity X,XXX a the This into evolving insights we home and are more folks big Many beyond suite also assets up part to consumers digital that connected It with more home our of made which the our on data households is desktop have gaming, comScore panel, with in activity digital unique holistic TV, digital than been in our of than a traditional all

leverage for world, under an work historically an the an omnichannel comScore we asset we as that a provides and more for this household. we be increasingly into one a unique amazing and clients. we lens advantage It’s under-recognized, capability that complete personify has move deliver view I Platform been you’ll as conscious our from Total it of context on to evolve Home comScore and audiences Panel the as us to privacy It’s is monetized And and intend with in hearing expect Solutions. the more thoroughly methodology, our Cross that into our provides

platform, of quarter. the flagship we is an Comscore this important past course, and milestone or our product Ratings cross pass Within Campaign CCR,

that you deduplicated reminder, more. connected As and for all across see video the along listed the slide across provides reach platforms display linear, many desktop, with mobile, on and advertising here TV CCR a

is report. of cross-platform campaign release that desktop, market mobile, that views this past one only No linear, else TV new to one able the and deduplicated see in across to be reach our deduplicated. provide the want does that single look, in plan can connected connected product interface reach quarter, doing Why to user With is CCR view not in and measurement now TV it’s Well, and three that run across campaign you if one it aren’t campaign this. a YouTube, you of matter? linear,

And again, in one comScore this singular is doing one that’s the only report.

a for in to results, get quarters. offering to made continue business. on in continue and been We the product it I before the efforts focused, financial our update over of turn in result profile our We’ll feedback the to Margaret positive. has the of market improvements the our our an coming also progress update Mary enhance you on we’ve to profitability more Look,

is I’ve sustainable know our all strategy but that costs. growth neither long-term a said to but growth before, this achieve is to we way cutting success, not at

long-term more strategic work profitable to are for our reinvested efforts we margin and growth and into results look but committed back more progress and we’ve flow quarter we’re in on can hard we to forward. the results move forward the free becoming imperative delivering XXXX. here, updating This EBITDA adjusted that and business be to doing in that provided third these a you is of rate goal do key cash a There’s our objectives. our in to as visible committed to order the We’re achieve company

With to turn it me that, Margaret. let Mary over

Mary Margaret

improved from up EBITDA you, from Jon. rate year million, slightly X% an ago, Thank EBITDA $XX.X $XX.X quarter Adjusted was revenue in a a in was ago. XX.X%. quarter million resulting $XX.X Total of million same adjusted the million, for margin $XX.X year up the

driven by Solutions When part TV $XX.X Platform solution in local in $XX.X Cross national look large XX% and grew growth growth of million group, in was businesses. our million, prior double-digit revenue from the year. by growth at we revenue This

the growth in business, movies the $X.X $X.X which last to of up rebound to from this business million in pandemic. the also saw million quarter continued year as third year continued XX% was We our following

$XX.X Revenue million fourth end from by million expect movies decline Ad of most Digital was primarily had in to driven level couple a year year. growth $XX We from revenue Solutions was The factors. business the to out reopened quarter of the last as compared of by down theaters the X% ago. a

late down nearly second to activation The the that first, started year-over-year, trend quarter we the a business building market off our continued broader was XX% see advertising in soften. to of as

in to and discretionary be addition we nature. Solutions for to the a drag our factors tend Ad quarter these bespoke In activation, custom expected in revenue which quarter. on the The combination saw of pullback and solutions, digital Digital than two larger our more created

$XX.X in operating Now for let’s that we items, expenses the by connection reduction to total and September incurred driven there. two of a expenses million. of goodwill $XXX turn $X.X primarily the to there’s impairment in of costs non-cash We bit restructuring as with a million reported quarter, charge workforce million unpack which the operating

the and X% $XX.X expenses operating to prior core Our quarter-over-quarter. year, compared were down flat we’re million of

expect we the to realize XXXX saving XXXX. benefits roughly to year the cost operating expenses further core position quarter expenses plan, our which start operating We full to related compared decrease to in our to the as flat be core should fourth restructuring

Given lowered reflect we’ve in guidance growth over full spend, the environment our revenue single on a and discretionary the digits impact rate low macroeconomic the XXXX. its ad current having to year

further at growth our in double-digit rate Platform both Solutions to as driven level. local continue to We growth adoption national expect Cross our to see be continue products we TV momentum strong and and by in

as that to a we our low our nature. we be discretionary Solutions and reduced deliverables in custom XXXX digits activation more anticipate our in now Ad of single softness from are Unfortunately, for revenue, continued result by down Digital expect expectations which

the we’re taking which mentioned, adjusted and in on margin Jon line, as for are of actions excess decisions we will keep However, making to strategic bottom intentional achieve diligently us X% protect to believe EBITDA track our year. an

With Jon. back turn that, to it I’ll

Jon Carpenter

this your Mary Operator, Margaret, Thanks, line. time are there everybody any the for afternoon. let’s up and questions, thanks if open

Operator

conduct the [Operator this Instructions] Kreyer Thank Jason At will of time, you. Craig-Hallum. we question-and-answer session.

Your open. now line is

Unidentified Analyst

Hey [indiscernible] on here for Jason.

Just questions me. a from couple

understand line. profitability cutting wondering if levers renegotiating there’s us better just contracts, and your control First, path don’t macro control, also you you pressure and that your the costs some but help on top could kind and of to the

So better to of just targets a laid of you’ve some risk the get trying to profit sense the out.

Jon Carpenter

Yes.

focus with that path made of product to coupled in more product I our mix are what of product, coupled efforts the the we’ve terms products. syndicated factors a think The when on stay that more line, focus comes nature line the there the especially those it’s said cost syndicated that of us revenue and coming cost with our offering, disciplined as consistent as on the digital you our provide with we’ve of I TV to to the it lines well disciplined think from outlined. business key profitability syndicated the comScore intently

Unidentified Analyst

of of us Perfect, here months. then thanks. last cadence the kind digital sense And you wondering just give of the could few lastly, if a over

that been more how is related better macro specific. comScore of just how much trying of versus to Just much has understand

Jon Carpenter

Yes.

business – that the is second of audience our and the the chime in that here, carried we of activation commented the we’ve the started of our that That third lower the a targeting largely quarter. June some think quarter to of on in fourth lion’s to the what been our but can share see will on year-end macro the and call were soft half I more across coupled a remain custom kind again Margaret related platforms than of with through in pullback side seeing been we’re we Mary there the bit work we over second do the that work And into that discretionary of concerns. that expectations custom continue work of are do the in that we expectations expecting originally macroeconomic as we’ll digital quarter. nature, kind be is arguably business

Unidentified Analyst

All right. you. Thank

Jon Carpenter

Thank you.

Operator

of Needham. comes question Dan Our from Thank Instructions] you. next Medina [Operator

Your line is now open.

Laura Martin

Martin Hi It’s call. Laura on Dan sitting his there. with

really think of guess, sort kind you that year a there’s now. one I they I’ll does you lay do around hire? from or next here. do Twitter, as ask control It available control think couple, maintain cost cost feel the a is, flat talent maybe into excellent people of start to questions I can So of you coming to have you that of Google, and like lot off Facebook have

And so talent good there might some next be available year.

surprise, China and then opened. XX% second This I an so really movies. it’s upward my is number And one assume is hasn’t up on movie

So do darkest up on you the impressive. think pretty Thanks. is movies are XX% because us days behind

Jon Carpenter

front, you and thanks that organization good for the if ability techno out about did areas, example, in afford front Hey talent, we contemplate that, laid to make on data restructuring example. talent that in Yes, did the feel – engineering on which us that the look we path around cost for right the investments the of across the the announced, a we will pretty the scientists, right terms rebalancing Laura, questions. for areas the plan including

areas where cost of the balance to continue but on are we in outlined front. want really back we Those that the invest portfolio to we the in, in readjusting our September plan contemplated that announcement know

feel we one. that ability deliver we’ve next the year. good on outlined for about That’s margin And so goal our to

our positioning been our feedback of really on the And look, on in that business. has It’s feel nicely. good we positive. then product some movies, gotten the we’ve the really recent about rebounded And rollouts movies

there. so the And about position we’re excited

But focus rebound. feel a on commented, quarter, that good the kind we’ll that, Mary we’re rate coupled fourth given really be we’re about how growth of I of little of the positioned. comping – the strength likely anticipating with see that some again, in front our not product post-pandemic business the just we’re Margaret there, to a As bit of

Laura Martin

all And we’re we that so I have future, from any a in don’t China, getting money assume of downdraft our from not right?

Jon Carpenter

right. That’s

Laura Martin

Cool. Thanks.

Jon Carpenter

Thank you.

Operator

I turn now to it back closing to our Jon for concludes you. Thank remarks. This like Q&A would session. Carpenter

Jon Carpenter

lot, operator. many Thanks, soon. to of on a the talking sure and Thanks be I’m you everybody Thank you. we’ll call

Operator

today’s your conference. in participation you This Thank program. for the concludes

You may now disconnect.

comScore (SCOR) 8 Nov 222022 Q3 Earnings call transcript