SCOR - Earnings call 4 2023

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Operator

Good day, and thank you for standing by. Welcome to the comScore Fourth Quarter 2023 Financial Results Conference Call. [Operator Instructions] 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, Vice President, Investor Relations.

John Tinker

Thank you, operator.

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

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

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

Finally, of comScore connection Annual file XXXX related and the with SEC statement Meeting with proxy the materials in intends Stockholders. a to

Our in with annual directors in be will meeting. connection the of solicitation and officers the certain proxies participants

read or become otherwise. the of contain holdings encouraged and are when and statement their they participants the Stockholders to information, including materials interest indirect available security by related will they identity as proxy important the direct or

a candidate meeting. consideration to know, may for its election capital to submitted for you XXX-degree nominate Board of As annual a and notice the the at proposal submit intent

turn nomination related Carpenter. or XXX-degree make Executive to time, any we comment and matters. the questions on John? comScore's over capital will Jon Chief this proposal At call Officer, any take I'll now further on no

Jonathan Carpenter

had everyone, us you, the thank both business. for XXXX joining and and lows John, for highs evening. this Thanks,

and more than goals, go-to-market to accomplished product for made we're we're of ever growth. number margin this I'm headed U.S. in TV of us believe very toward should received team be direction. we which confident our player We proud sustainable our JIC key positive well a the also things, adjusted return on our the conditional I and right side, of, measurement set revamped On a measurement is up product. innovations accreditation and that only working We received cross-platform who the EBITDA a MRC certification certification from and the operations. delivered

in drove comScore Campaign ID also Ratings, product areas in We where of especially activation that these our cross-platform we and At back did campaigns year, our just we're solutions. business. that for and our expect have the to a custom believe time, was both Macro business double on kind growth the business short both cross-platform see the fall last the can key of did measures custom business year. same challenges impact We target that revenue Proximic, our of IV-based starting material half, provides growth down significant advertising our audience free the digits. across we

are been that to challenged. remain Additionally, end we serve are markets and have there that likely

the business of shift supports of platforms. And digital is year not was clients remain to linear spend last as low some Specifically, where to that certainly pressure ad part pressures. to we to these our continue traditional declines single-digit under saw dollars large the business in network immune expected

X renewal in within the X the market. Officer, delivering years. need Commercial printed the growth campaign had already are periods structure and the Proximic across key the new half the our go-to-market And ratings said, under areas for leadership bookings us, innovations Steve fastest-growing with Bagdasarian, being second our along last the aligning we of in are of That of promising the Chief of results our products with year most we've

deliver on expectations. to we progress made the In fact, our 'XX up 'XX nicely in us sets

cost and transformation XXXX. in continued us stronger margins to help control operating work Our technology has deliver

precision combination local growth in of another yet deliver our double-digit speed local year and helped us TV Our of business.

market Finally, value we've cross-platform with has X incredibly we're made responded substantial and year-over-year The products, growth. the product delivering of CCR. the well over in our to progress those tune key areas Proximic to XX% well

our take our that our further more like. detail. represent numbers businesses XXXX scratching these go in approximately 'XX any before Mary a surface Given business last we're on looks on just I'll of the let confident But you XX% year, total through we we're Margaret for bit what 'XX, opportunity

Mary Curry

X.X% John. from The was Total XXXX. you, million revenue XXXX. from Solutions the of Platform Thank for in revenue $XXX.X was down Cross $XXX.X million, million X.X% $XXX.X year full down

year. which Proximic XX% As which, the we're to down decline year digital These declines X% revenue. Solutions in resulted by custom growth a of Ad driven Revenue by million major syndicated of This $XXX.X the basis, lower decline was combined by seeing million the $XXX.X in in digital national was the X.X% our which compared networks was impacted are XXXX ad linear by a certain we're over the experiencing, and primarily and were growth offset offset impacted from products, Jon deliveries renewals. Digital double-digit grew the environment, revenue mentioned, macroeconomic ago. TV lower to CCR a The were in prior spend growth on XXXX. in in products, business along our decline partially our from TV compared by local movies decline pressure in with

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

of up XXXX, we which is our though $XX.X you exclude Even around the our spend. intentional disciplined EBITDA adjusted was over decisions goal, from to margin the our teams testament hard done adjusted year. prior line and to challenged If the exchange in is top year's were impact achieving successful in foreign have make a work XX% this EBITDA, million result

a expenses prior restructuring result were as to XXXX compensation operating efforts. due for our core of over employee nearly the down primarily Our X% year, lower

office to into transform continuing as we're footprint our operations the our restructuring As and part efficiencies also business drive to stack our of XXXX. tech plan, and we simplify we reduced physical additional move

Similar by were growth CCR million the for a from driven Proximic $XX.X combined, million which digital results similar syndicated Solutions Cross $XX.X to story. products partially over by TV, custom quarter very the flat business. by the certain prior tell the of down revenue and quarter $XX.X full Our products, million, Digital XXXX, deliveries growth decline the was from Platform million in was lower ago. was down in year primarily more again, Total our X% Solutions revenue revenue national lower than XX% a in in the fourth digital and primarily prior same roughly by year revenue of $XX.X quarter. quarter X.X% of of year. decline fourth results, year driven movies was the with offset Ad when revenue, our which the the grew offset

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

exchange exclude adjusted you up quarter prior fourth million the If the $XX.X is result from EBITDA, XX.X% foreign of impact the year. over

quarter from primarily lower XXXX, down Our again, restructuring X.X% core compensation our operating expenses compared to of efforts. employee due to the were fourth

headed. turn back to about I'll Jon it we're that, where talk With to

Jonathan Carpenter

data publishers and navigate across connecting That TV, social successfully. Mary and effectively spend local helping that's on that communicate what increasing advertisers in $XX programmatic digital and address their their leveraging linear streaming clients advertisers. Margaret. to and the doing web and more billion of We're complexity media The focusing billion is to as fueling open as markets, waste all and screens staggering the and ad the wasted our by the reach that's Thanks, it much intended help assets of rapidly focused we're ANA amount. audiences efficiently national landscape is across value audiences $XX currency-grade audiences those our estimates a to on

we're are we about areas and comScore When and focused in key offerings. there adoption CCR XXXX, product means on: specifically that cross-platform our for think X Proximic first, that what

already Second, local cross-platform is to three, linear growth for we the that indicators start continued value local corner, our data products, station of evidenced digital the turning expansion, XXXX improving see in in deliver resilience with leveraging syndicated and capabilities We're as alongside business and our finally business local announcements our leading digital clients. digital in areas of our as early our cross-platform for acceleration group major adoption to these clients. leading local encouraging metrics signs X each seeing key and our of by

advertisers and campaigns. from data at comScore with starting provide precision the needed becomes big the up let building us we're able the to and to speed up a bottom measuring reason wins differently we're That's and advantage A the programmatic. cross-platform companies. built just more more as put able like measurement is from in-flight household world cross-platform to a serious that view, up this optimize By national is giving level other to

we're last are Our the that leaning announcements expanding important to ago their a validation few in with taking, partners a TEGNA weeks both comScore. and and have and with excited of such with Nexstar relationships approach week we're

comprehensive audiences across gardens Our believe cross-platform streaming or linear programmatic why is built digital, future for local, the national, comScore is of walled we media. view of

advertise than we market, to weeks the total and Building Campaign CCR, announced on a of world market enhancement a just local spend key increasingly advertisers Ratings, ad influencing ago, becomes optimize market. in possible. to enhancement comScore $XXX we that focused simply the at on the something nationally and on We're programmatic locally, when wasn't more focused then that, look few become Given that, with data not market just the audiences as TV allows we're this fragmented. adding linear billion previously increasingly ad

growth markets, shifting to and data the accuracy deal Along Trade platform. possible you driving to advertiser outcomes our possible. local weeks outcomes for flight, the they different efficiently the we as we're resilience to year. seen of relentless focused we're delivering These integration we on with more look 'XX. it of a efficiently. this Campaign understand reporting eliminating need their expansion things local their to releasing performing we the year in need January dollars campaigns quarter point and Trade January last enabling into ad that are partnership to more Desk our as this optimize and as deliver Beyond Prior accelerate. Cross-platform to expect a to will announcement on their begins progress profitably into measured Desk comScore the Ratings I an speed And as campaigns, CCR to Trade year. campaign solid clients the performing feature, and they with we this of second saw to advertisers with to a in with scale help waste 'XX ahead. the the pillars, coupled in see makes throughout most updating may is across you forward with capabilities our integrate which the digital with that how adoption, This go and in ramp, effort this an by than to our few have their impressions channels ago, year the increase of optimize move versus able Desk XX%

that, Mary to guidance. with Margaret it about I'll And our turn to over talk

Mary Curry

current Jon. for revenue and total our $XXX trends million. be will Thanks, and expectations, Based we $XXX believe on between million XXXX

As XXXX, a there including Jon CCR. factors the growth important influence to about of as I syndicated of laid growth timing our continued and the factors stabilization through thinking business for it's revenue guidance we When in out, are Proximic growth about driving revenue accelerated of our cross-platform the some digital TV, just move growth think number and year. our of products, of will local the XXXX, the our that talk in

in expect of CCR ramp more clients months to and onboarded, in half or as over pronounced integrations back Proximic delivering the coming X the we are the our a X out year. impact roll First, and revenue growth new

better to as the into for the revenue will to translate a move that XXXX. Second, couple will we we be pressure national into products digital experiencing And continue TV in expect improvement results. impacted we networks be spend year-over-year of custom finally, that a are anticipate take the our seeing syndicated to and demand we're major linear by ad revenue digital unpredictable continue to quarters

first the majority the our with be in the in of revenue back of XXXX, lower XXXX the of expect to first the half quarter we revenue growth quarter result, a As than year. occurring expected of

continued XX%. XX% be improvement EBITDA expect For XXXX in anticipate and will we adjusted the full margin adjusted margin our and year between of EBITDA,

disciplined include In in margins line key impacts the we're driving and undertaking growth, initiatives to continued how the the addition continue we we of top restructuring transform increased to the executed the innovation factors we XXXX product operate. as

revenue in know scale core as possible costs we business, plan certain million we between scale included will keep be year, and built that also we for in a the These make drive million been for areas operating the to move our such way in last anticipated As think growth. cross-platform ideally expenses, $X expect our to like data about have we'd today. order to XXXX to are giving additional products guidance I'm meaningful $X and flat of costs But to as investments we cloud in need we year-over-year. as through Similar as costs into our year. computing margin rate to and the

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

Jonathan Carpenter

Thanks, Margaret. for we any operator, time, open everybody. up Thanks, Mary At this questions. it will

Operator

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

Laura Martin

then to other cross-platform on an down that wondering update have you you there the you falling I'm [indiscernible] on please? -- And is of as your national for my that, so advantage hoped sheet local us So finding even we balance rapid isn't national much though XXXX. goals only growing Are platform. so Could quickly. growth is I see across question give as with linking

Jonathan Carpenter

which on products, anticipate and create It's Laura, is us how year, of what pressure view. ad the is acceleration and obviously well. Yes, our factored National into just And major the the everyone I model, bit some investment our a linear did on XXXX that think true one, future the a to shifting is dollars. thanks. you certainly and an of be for we the the advertising no, of headwinds very why see where I seeing think in as cross-platform the and is certainly that's shift much of from also networks with last sold guidance I I you're think going that focused is bought focus to which cross-platform

allows networks. I capability significant for When wins totality national with market, that local country, let's Nexstar, relationship want in our example, everybody got, obviously, largest would Nexstar broadcaster major how those else up the market at platforms individually us a major reach and the we Nexstar digital marketplace, point to wins. for as the to that with, view, to from step local XXX-plus go market to has up the well got picture the take expanded to all national which that that was a point both of with differentiator of local to national differentiates we that ability to look leveraging in from as in us stations. across their team had million they the way our full a properties. it's a that of go people And They've definitely

at we've don't last have that. -- second investment an with so on And you and continue of we terms giving needed update you work late the shareholders specifically, And continue be point, this couple with our to sheet very for announcements on made balance be balance for sheet. we of moves I been a beyond update the preferred something your was the of on had And those the to conversations on, us year we an dividends. question ongoing. the don't that supportive in it's I have have focused

Operator

with Next question Craig-Hallum. comes from Kreyer Jason

Jason Kreyer

I something confidence think in your year you remarks logged the Jon, back into bookings mentioned prepared half have about So the you that of in guys gives the XXXX. you

comment if the bookings you're to you can referring in wondering there. Just and specifically unpack what

Jonathan Carpenter

that year, and deals the both value -- and contract on in remarks, many both by at look and value expiring up I were we're or the third was [indiscernible]. the we look comparable those that When quarter third the up I periods encouraging of lot were quarters when fourth a fourth of pointing XX-month of booking what at on we the great which we last contract Yes. underwrote were in teams my a was values, where which is to the in work significantly the from prior significant quarters

for it third and renewal biggest to so of out, part the fourth represents was business, encouraging. fourth our quarter, and other some quarter periods The third point the the

Jason Kreyer

you how cookie or that deprecation monetizable loss new Okay. mentioned about just this slides, of expect more And opportunities. that's you in talk how signal impact fundamentals Can kind to the and year? how then you create

Jonathan Carpenter

in business talk that, terms to Proximic Steve, want You specifically? of about

Steve Bagdasarian

the things. the verified a audiences being of obviously, offers. the on Yes, combination of is, validated at it's able digital One and syndicated of what importance buy basis goes a a couple heart to product directly line of

Additionally, the as the publishers enrichment segments audience for built able predicated segmentation privacy-centric, based that we're non-ID as to well on tremendous side buy business is at is that provide contextual essentially Proximic, a seeing rate. heavily adopted for both being

consistency has long see raises both directly ID-based the of be channels. being audience to of the story short independent profile buying these to the all to that that market, built. the at are across been time, ultimately deprecated that and we measurement our the we're scenarios heart deterministic is and a begin way of validate the the of able verify and prevalent with So trust visibility that's class data products asset of of for outside period And as the it

Jason Kreyer

Just me one for one for Margaret. Mary last

dissect had in QX, to there's you But EBITDA anything looks like cash for cash drag. flow strong trying there, free it best a a in through Can there? nice EBITDA had unique number the walk if the just you growth Just flow and year.

Mary Curry

other in QX. than quarter In accounts the we wasn't unique some specifically, fourth up there on did anything there catch payable

to at of come come also were right in the expecting the We didn't January. until the first that of week end receipts in some year

to. things those be the point X that So would I would

Operator

Thind from with Jefferies. Our next question comes Surinder

Surinder Thind

macro this and it a think how contrast you should you can up the were? that that you you terms that little expectations in all in bit you see guide to macro? Or range compare and the XXXX ended have provided How maybe derisked what interim year? talk we for about Is risk achieve versus where related? about Jon, it will of your

Jonathan Carpenter

Sure.

risk for see ad low the the at marketplace. in is stuff just think the kind the accounts spend appropriately we this end of that in point of of I macroeconomic terms the linear where range in

end think the low I contemplated the so And got of we've in that range.

I cross-platform about our and we're think Proximic what bullish most how scale. capability quickly is

For a weeks. they or like week a against the of couple -- here over Desk, upside was we've week bit scale, ago we there's will live go little contemplated. to of with this deal that the take but a deals frankly, that -- quite see next in we what the little example, And Trade announced got that, time

So the like we the million million in it has $XXX appropriately booked feel on what to $XXX revenue Xth of guide based can here got see we March. on

Surinder Thind

guess you about you then -- in changes Got things I an mean do industry? account is spend? for linear do assumptions to business, drag? we about how like when I longer-term some the Or that going like of of the just it. think think ad how the model And and the accelerating the dynamics for be these

Jonathan Carpenter

for. the custom of have tough. like we've most We that saw part, is like last traditional We half frankly, in we've with I of of into first And we factored I that we, that the took business. the the accounted -- mean, I I in think got we We that feel see the But some dealt again, for of the what year the book that. most the were of and so there lumpiness business, got got, in of most custom feel that in accounted guidance, renewals where kind our guide. of feel feel that media of I that, there for, low major end we the pressure think, feel. we networks quite some the which in see

tech to our -- in some news exceeding if business, obviously, you we're exposed is at the good And linear the our growth of double ad And we're marketplace space. is -- teams model. at ad print the Obviously, the local look there's there. those look I you business, comparables if that that a digital seeing So look and Proximic cross-platform, growing if at that are digits

Surinder Thind

to sounds It fair? at Or seeing just that this before end year tunnel. And it. on point. the you're like Got story light digital. that that we this at optimism quite have bottomed of we've we start final we're feel question more a kind then Is where I syndicated like comfortable maybe heard with more get don't the the a things the end but the just tunnel, the of of bit

Jonathan Carpenter

in further that mean like ARR, I as those that client the of which what we been extremely in end we -- seeing metrics our the about year throughout deprecation terms lot in backdrop. permeates we like good cookie insight gave how manage we our things the a the syndicated terms in thought business, The of we of have way really of digital overall rate, we're encouraging to on monitor guidance strength the terms the against business. us Yes. of of related market, that for terms business churn digital

Operator

Thank Carpenter you. I for would call turn to now remarks. back closing any to over the John like

Jonathan Carpenter

Thank soon. you, of everybody, for forward to to call, you we many joining the speaking look and

Operator

Thank the your one after you. be issues conference you demand Thank for will the presentation available call. webcast, Due to the participation. hour with on

may You disconnect. now

comScore (SCOR) 6 Mar 242023 Q4 Earnings call transcript