Earnings call transcript Q2 2023

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Operator

Good day, and thank you for standing by, and welcome to the comScore Second Quarter 2023 Financial Results. [Operator Instructions]. And please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, John Tinker, Head of Investor Relations. Please go ahead.

John Tinker

operator. you, Thank

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

in of and and future risks and other of SEC, www.sec.gov. on in results disclaim to to materially the uncertainties after filings website actual number any our those may differ XX-Q forward-looking from information These a risks our obligation our those Our periods currently include outlined expected find XX-K, with because today's can you which call. or or statements We at new update reflect duty uncertainties.

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

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

Jonathan Carpenter

everyone. a Thanks, good evening, quarter to this our Thanks John, evening. us lot for talk and about joining second

product, by strength of strength, in the over time up Activation quarter growth and led the the was growth in this X.X% our number experience are business to quarter quarters, results Local and digital for sequential markets of second in our saw X our ad first solid, areas of to We which and over year of Our by serve revenue we over our results encouraging. TV continue softness, while year. up last delivered continues the the in a XX%. particularly show end markets, across are was quarter in first business the

that of profitable our clear As the to and nearly media for opportunity after in throughout has quarter, channels, digital previously, that from approaching And across value waste. adjusted team more clients of faced gap scalable in billions that's These and I delivering proliferation of growth, with dollars that and programmatic this of finally, drive to right is are exchange, comScore the audience digital coupled problems all with XX%; are deliver continue signs the positioned loss addressability created that the our a uniquely in is second ecosystem continued we've the to accountability lack that we traditional for of EBITDA XXX% on direction. moving signal our is challenges help advertising meaningful we're solve. to printed adjusting growth an fueling significant. focused believe discussed foreign stakeholders include growth fragmentation channels the that

the footprint across connected linear TV and is have of and collect, intelligence gap. over close audience audience we Our XX,XXX addressability unmatched. to trillions video publisher mobile well both integrations due we a as solving And problem helping signals scale and the massive is that and and methodology signal as loss digital, web, trusted the

the comScore our our measurement more and industry signal and age the actionable. of we're needs stable, granular than audience now, data has But who's than making partner scale in the accurate made competition. why massive Until invested in more that a that's reliable loss,

are Predictive maximize regardless advertisers segment reach of not. IDs Audiences Our empower AI-driven to whether or present

our users Audiences problem. a In versus ability reached product now, dealing one double isn't that comScore and study is help it. for solve advertiser someday showed to ID-based AI-enabled fact, unique recent case loss Predictive with in segments. is them a It's our Signal that every nearly incremental the

local frequency accurate We ZIP markets. all data hours our and posting to accurate that codes across both also the XX,XXX and have XX% providing provide is XX data footprint linear transparent that final XXX and to can within clients, reach

and valuable ZIP market Our waste. for to in reach who depth want advertisers in understanding code maximize eliminate audiences is every precision and with

heard about assets to use we're new digital times, and many them ways speak to clients. for finding While linear me solve data and problems our our you've create value

I'm and bring our things excited transformation about that One cross-screen when together. of we seeing innovation the is I'm and capabilities most digital, the linear

While we're early to efficient level still best-of-breed With make here, the both video in results clients are of channels insight in ways help wasted guarantee to a spend ad encouraging. campaigns to comScore With our advertisers digital is in and digital incrementality. across new delivery of can reach that them more measurement optimizing and linear, inventory. innings and assets, the approaches eliminate positioned cross-screen deduplicated in-flight and bring traditional

and help be product products facing The capabilities we're the to to We're big that our with our the solve want coupled I our delivering that to clients second problems confidence focused committed in about, on execution talked their like stakeholders. we've quarter, the had businesses. that most clear. clients challenges and matter things gives we solutions that continued me and the

Margaret turn Mary discuss results let in to detail. to quarter me that, second over With more it our

Mary Curry

million Thank you, a second million $X.X X% $XX.X in our was by primarily quarter year the in $X.X for second was year million business, local up ago. from $XX.X TV X% to of the the driven quarter X.X% grew movies Platform million and of continued from million, up growth double-digit same XXXX, of million revenue strength ago. from which quarter $XX John. a Cross Total the $XX.X Solutions revenue

$XX.X Activation was in ago, million Revenue by year from increase driven up compared an $XX.X a our million Digital of primarily Ad to usage product. X% Solutions of

saw increase our in result custom We a for deliverables as customers. for revenue also higher an digital certain products enterprise of

these biggest recent that softer-than-expected from by upfront earlier, We're mentioned some third into evidenced to our markets quarter. and serving factors, year. clients have impact as we're John certainly we the not macro this immune may business of reports and on earnings the challenged move our are these As end an

million, an the year adjusted prior from was EBITDA resulting EBITDA $X.X X.X%. Adjusted of up quarter, margin XX% in

this prior This over is result second EBITDA, from to exchange testament focus execution. you a quarter cost on adjusted results our is XXX% million impact $X year's If year. exclude the continued of foreign up the

to core operating a Our employee were that year-over-year, of lower due compensation. part X% expenses down with large

costs on are the XXXX to contribute to we We're we as and restructuring in put drive continue as part million evidenced operating lower in we which efficiencies business $X.X stack to to move through last to and And year our the year. into working by not in will transform We place the operations the is tech latter additional XXXX. execute plan diligently took the of second charge continuing and done we're of yet. to our simplify restructuring quarter,

high growth in range. Based pressure our last our end revenue we year our end of the our current guidance, there single Regarding full the to noted was low we're digits. guidance range on tightening growth the quarter low expectations, with of the that on revenue

we adjusted For confident in EBITDA, we provided. and reaffirming are the remain guidance previously

closing With that, John to back I'll for remarks. turn it over

Jonathan Carpenter

thank want or wrap we've to of would day moment to our spoke about for be Without a deliver them, to take employees we possible. tirelessly executed none up, work Before I every on today what who our clients.

for about a Thanks on of to our I everyone and the this value can create opportunity joining more got we be us and us, couldn't the evening. growth shareholders. prospects our excited tremendous call front in for We've

With that, it questions. open for operator, let's up

Operator

[Operator Instructions].

Kreyer of Craig-Hallum. from comes the of Jason line question first Your

Jason Kreyer

the the end year. quarter to looks like delay The it probably payment, dividend until of the

the uses can if you maybe you delayed that near-term and those that any benefits funds. that, decision, why of of curious unpack Just

Jonathan Carpenter

Jason, shareholders back for conversations business, up part we in also agreed They to yes, out. paid preferred they the thanks agreed Yes, the capital for optionality freeing ongoing reinvest dividend the announcement how releases. as of flexibility with well. push made of -- in question. that to earlier us our give of and We our in around as one our terms that was to some

toward, in the resources I the investment capabilities and tech that the restructuring that and to on things making our some product analytics call. and the giving points at so to of plan can company just bulk to about things transformation flexibility well is the and spoke the underway. like shoring that improving we our investment of That's greater infrastructure, All the up of that's where deliver top continue execute going that engineering

Jason Kreyer

couple you a then results meaningful in Okay. good vision there imagine that like about a seeing the would what Perfect. over you of Proximic It But to results And point Can more more meaningful time I talked the contributor it's not a expect last maybe calls. there? you're you've talk is is contributor? there. where seems be about today. to

Jonathan Carpenter

revenue Yes, and it's insignificant certainly part of not growing an it's the profile, rapidly.

with what of capability just that paired both when across broader is linear. we're digital on measurement our and solutions the think I cusp

do tip in the our Proximic the And of the for of with terms TV planning fits the I of that do what the solution broader deliver in I segments signal activation set so audience to nicely advanced the linear comScore segments speaking, can of the of we position loss digital delivering into and measurement, then, comScore what just to clients. insights in in more it product broadly can spear our advanced to we're better integration pairing think in broadly flywheel at we're think it wake and of coupled that terms the audience of marketplace.

some there me, the of here, we're kind first growth the quarter have announced are able positioned well really we that So earlier quarter were that that to the us front, -- second the the making has in like result. in our in contributed to excuse on integrations progress starting the product second to which I we quarter and unlock of

Jason Kreyer

one we struck between Nielsen. clarification. of just in Comcast deal a terms and John, saw more month, Last

was any at impression local your that for NBCU their relationship, that Comcast there's after deal I doing stuff they for with was change Curious think NBCU. struck. least of expanded that I the lot included local or you with under if market relationship some markets. were and or the Comcast a

Jonathan Carpenter

not No, all. at

of in I their a across for in has comScore them think, currency quite in in local leveraging suite. terms NBC fact, bit market leaned

data that had of better years. has Nielsen remember, for part X the Comcast Let's

a wasn't handful this us, stated that surprise easily. for access so years to And had gosh, last they've of for, that

make very with local business So areas it broadly of continue but NBC and as strong, to their is progress other our not we're pleased them terms just with more the we of in that measurement relationship very, helping capabilities. to cross-platform across relates

Operator

line Your of comes Martin question Needham. Laura the of from next

Laura Martin

XX% is great done XX between You shortening your the really weeks impressive. accuracy and X a at have for of to, now, guys hours, window job

However, measurements. to have the of get to your compete? competitors in-campaign that step? Do in Is marketplace are doing order point now next that in a your lot to you real-time

Jonathan Carpenter

as markets, posting, clients the accuracy adding to if it to close to you difference digital against digital, to hours we've guaranteeing XX incremental And XXX% to optimize deliver extensions lot to guaranteeing to to relates amount big capability. then that nobody to be of start XX allows within a closer our the you Carol? linear certainly able -- real final in-flight capability it a anything, to including that start about of really real ability tremendous across to you think And think about connected in deliver our there's as got hours on I time. in time. flexibility that, XXX think that But buy when audiences within the or optimization to a taking XX-hour want reach, add all leveraging you some to is products, up stands Do drive that optimization ability the effectively TV. you where

Carol Hinnant

local and the really say important. is to tie to Just national

Jonathan Carpenter

every when excellent we got a which rolling our methodology, is markets one up a we've -- start an single number. point point. to differentiator national about a that is Carol's singular talking our big That's of

just well. not as ability hours all it's to it's XX but markets, the campaigns the within in the on So ability national optimize

Laura Martin

my And second Okay. the one strikes. is then on

my anywhere X back. another depending monopoly, in and it and you business, movie to months. was ask, word, who wonderful And felt this now in have you on strikes COVID, X I coming went we're the it through So like for, from

is of the question your hurt does stream of your on actually point So forever. movie view sort What's this structurally income that?

Jonathan Carpenter

it's the what through. is it's of going Yes. industry I through kind going unfortunate that -- in we're mean

implies profile of As business, immediate it financial our an guide to to or don't year. what our even impact into next see relates we the

may start should something periods of remainder issue for in ultimately out bleed carry the impacts are us, production kind our it's strike to 'XX closely. at that long least I 'XX Certainly even some of time, or not renewals that watching years. at point into But for a out and think those now. a business of future, in that for we're the

Operator

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

Surinder Thind

how here. point Start When previous enhancing techniques? a is much AI the with should step of of techniques Like this think filling around signal we of differentiation for of and you competitive how question in about a use an the kind back, over measurement take loss the the data analytics and advancement here?

Jonathan Carpenter

if Surinder. I think I -- for question, the Well, thanks

to I think parts got X you've kind that. of

would more activation our plays the I what that would the digital contextual is is explanation as You've in and to gives we've and product kind I AI That other capability tremendous differentiated of a consider of how the in IDs. amount digital get ecosystem. allows differentiator got got run-of-the-mill without that in of that insight exists that is it basic the market. that what audience then panel itself, predictive relates gap of say at us of to terms the us kind simple significant we're in XX% addressability a audiences audience for

which a role our a the have for of size nor difference. sense play to of the big predictive investing panel got capability, is would economics has something make else audience panel in like our that a that leverage others. big the of we ton We one No in

business that Activation that benefits and that So the our we to -- standard always business. in panel, from in in measurement has bring the the comScore been, we're that grounded the benefit fact

is to I measurement it the our differentiator to it capabilities other any data team against. of ability you leveraging of as the it to Lieberman out you got we've And relates you at I leveraging when to our think about measurement, is time not massive predictive outcomes train with scale Jon to least building audiences, massive the algorithms that that to I AI just AI capabilities And but and have have you planning leveraging train where in and think a to his differentiator. measurement a scope the that AI, the better massive to it play have extends about relates our think AI, that As that's think inform data players space, think that gets is AI. as if and from relates planning AI start a are to

starts you've train first our data of of because from ability do from. piece linear. data. kind kind AI That data scale the that's what question is set, massive from you got me, with given massive And and for size what's the back digital, ongoing have So the to your is scale, of that's what kind then

overall differentiator I to And our when think comes that's so biggest it AI capability.

Surinder Thind

I when I cross-platform of the what But kind Got in so, strong are? measurement Obviously, you more color of revenue it. about seeing any last kind about underneath? And and look different takes the trajectory relatively some over then and growth unpack stable. the or moving broadly the think double-digit on pieces over Can the areas. additional puts X you're quarters

Jonathan Carpenter

Yes.

relates perspective, capabilities I build think it how to capabilities momentum and clients. that encouraged as overall really deliver to we our incrementality by local local continue our from we across and are, my the to real those cross-platform differentiator a

markets. nationally campaign a running that's advertiser across an a about think So suite of

by down inform use level. foundation linear advertiser over to campaign or take ZIP channels. code can take better purchase to highlight to programmatic the us behavior run and Our it that's through that that being underperformance an connected suppress audience, local it, allows TV, We

in. cross-screen incrementality always kind rooted foundation big a is has that been local starts and That this capability differentiator, from it of comScore

last on to we're digital X for what spoke some in of of wins first what our our get And opportunity I and in in activation early front. business, up tip which just the It's really, the in it's the the the so performance. about. grew against the starting that showing up our that time But of our of aspects at backs quarters, on of we're performance spear I showing terms think in just is local

Surinder Thind

And called or final it. -- be a there should question Got then bit thinking we you a syndicated headwind. it about of on Any out quarter-over-quarter? digital color as how additional

Jonathan Carpenter

terms the say team than still going business and that history, Yes. the business important this is it digital all the a ability It's loss are proliferating, happening signal depressed. to in time of of important getting to back syndicated our beginning to ecosystem probably their penetration them audiences that's world to more signal where part -- a our across I think maybe would way been work has this significant in and in ever I all CPMs is loss client with and our now surface completely the the an

is of that that some innings of with -- relates it early digital very, I the business of like, for things more to from we're really as asset -- you'll the broadly. And that us the Our expect very, quarter well the growth. over future industry positioned we're just and what just course looks on next in very doing we're the hear it's

Operator

much. good there no Thank today's participating, this disconnect. you Thank presenters, concludes and for day. you further you And questions may are call. This so now conference time. at a Have

Jonathan Carpenter

Thanks, everybody.

comScore (SCOR) 8 Aug 232023 Q2 Earnings call transcript