SCOR - Earnings call transcript Q1 2024

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Operator

Good day, and thank you for standing by. Welcome to comScore's First Quarter 2024 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 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 May 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.

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

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

Jonathan Carpenter

for us Thanks, thanks, everyone, joining John, this evening. and

We we've plenty changes made to the we as in we seen markets serve. of business, the some significant transform progress and work

are where audience is focused is on the nature the is to and programmatic, living comScore across is the digital built more in. that of measure we Given are and becoming screens delivering and sold ever-changing Platform devices the and fragmentation market multiscreen increasing, bought advertising way both world Solutions more Cross

one as distinction. measurement X and the U.S. by JIC an publishers choice of product We audience with of out that measurement on remain set anchored one deemed and the We're the and companies leading that for agencies, advertisers part by TV local only is national. also both certified this for and measurement based transactable only cross-platform We're review. a player MRC-accredited standards cross-platform platforms measurement as

of the in market done, made work already serve, While comScore has and progress we to substantial clearly despite to be there continue parts headwinds is XXXX. in

the ago of up our was and Our adjusted year growth versus in a QX result XX% products. quarter same a cross-platform EBITDA our cost in discipline as

our of serviced the a Proximic versus activation XX% same impressions QX year in comScore, cross-platform growth business, we 'XX ago. the quarter in by saw

amid We a the AI-enabled advertising continue comScore one evidence to audience and tangible the And as an Power in that privacy recently are of disruptor series AdExchanger and our impact that announcements see having of change cross-platform Programmatic of recognize impact another an accelerating their market. regulation. in Proximic Players, named XXXX solutions on innovator

that, first product Given growth key platform it's as that these to year. we for revenue a XX% recognition the like partner for we not quarter in up was expect the accelerate. to With cross-platform continued as continue move a products underway, adoption through surprise rapid several integrations suite our

something I as As claim. TV year earlier currency. this measurement cross-platform for MRC That's both transactable certification to JIC a other national at alluded the and along accreditation with outset, measurement, that can received company local no we

to receive product with accreditation. both national for for measurement. milestone We're accreditation both and television only the comScore for MRC the comScore measurement solution TV industry. and measurement a big first now is TV It's TV local data major the

for and what measuring buyers sellers TV and day, end the and billions the the products and leading by be choice our At the for audiences industry cross-platform that advertising in that the comScore mean can has that is of industry. of TV of cross-platform dollars transparent decided these certifications a trusted and is are

'XX expect and a advertising to number in We we saw comScore more currency in grow 'XX, than $X on trade beyond. fully billion in

while short we a up did our where first quarter in from year-over-year, coming quarter Revenue was QX last ago. was we in be expect certainly it results, a Looking mixed end did down bag. And to call, of X% noted terms at expected. the as we the a softer of we year

our However, in discipline costs adjusted million, EBITDA streamlining managing products. our and for the work our quarter to a XX% to was continued up $X.X testament

revenue holistically, excited is the working. there a persistent a connected optimize to strategy TV And see need products, despite robust be. growth lot print, about helping the digital we as for evidence be that our and cross-platform linear, where our world and double-digit of that's to in to We business. Managed is clients continue transform which

scale originally are to to in contributor revenue of to meaningful platform taking what underway was the integrations number just shortfall was planned. a currently note that A than longer are that

As the in continue our shift from greater to billing rather the basis integration cross-platform products, revenue the delays syndicated CPM this our a is, revenue of confidence it share transform that a of a we business like our on transformation. derive of than this we fee, but and execute not timing usage as

made quarters prior contracts of prior fees up in much from in a our is today some and, As syndicated signed of reminder, cases, years. revenue

example, our or than 'XX, first contracts more closed XX% signed earlier. XX% the revenue For in whereas was contracts it attributable of directly approximately that in XXXX to of from quarter was

becomes growth anniversary transactional revenue and portion line more a of see As we legacy accelerate. contracts, top expect continued we significant to our

me you a that, Mary take bit the With more Margaret let in detail. through to to over quarter turn it

Mary Curry

million quarter ago. first million, revenue X.X% the was in down a the from $XX.X Thank quarter for you, same Jon. Total year $XX.X

Solutions XXXX, in to Cross are our decline. There X.X% from revenue revenue. million primarily drivers a of down Platform was two decline this $XX.X due TV national of

the that ad first is have networks contract lower renewals facing. been The related pressures result to revenue major a as spend of

received variable certain we cloud driver computing reimbursements to revenue lower second enterprise related from processing clients. and is The

prior also the partially line. the to movies business X to X% growth national expense year. same TV these decreased The revenue amount resulting the bottom service in in we by by was However, during quarter, almost the decline impact incurred contracts in corresponding our offset net on of compared a our

driven quarter, $XX.X in Solutions from revenue executed down renewals years. revenue by was digital X.X% from syndicated Ad Digital of prior prior million lower the primarily year

these their out. anniversary dates, begin As to to begin contracts level see expect to the variances approach we year-over-year

the digital growing partially was over continued of than offset with year by cross-platform products, syndicated in and the our basis more combined decline prior The a XX% quarter. CCR on Proximic growth

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

are We making where more strategic on focused remain operate decisions and we're spending about ways efficiently. to to identify continuing

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

up we work need the and assets for our to data business. technology as opportunity the We've see areas we also growth, the transform make chosen we investments most where in includes to shoring which the

Jon turn continue I'll it discussion. back to over the to

Jonathan Carpenter

Margaret. Mary Thanks,

the heard both a way historically I've solution our from groups and from small, difficult we've large shareholders, standpoint of that represented our understand has business. made reporting many our to it

our our has business no we clear it's better time, us. being understand able important groups business. that solution and strategy aligned market over longer is with something how that's our to become to evolved the As are run the Investors

new So this starting quarter, reporting groups. in begin to our solution we're going revenue

scale measure built solution going those around foremost, and insights first leverage content Fundamentally, big meaningful And going that our we're comScore data two we we to and things. how two second, audiences does both precisely across that have. that's deliver organize things: groups groups ads; the we forward, and two into

last Content audience our nearly products our our is business, Ad first year. solution comScore Media group TV contains like like revenue measurement along cross-platform for and movies and of Proximic. Metrix, our group Measurement, XX% with This offerings, syndicated The and which CCR accounted

like group, solution and of outcome our brand second deliverables. clients, survey This things contains accounted more Research approximately business, do The revenue we bespoke our with the measurement group Insights data survey for along brand our business consumer custom work feeds, for last business, health year. XX% our our Solutions, other and

business, Research with and Solutions, groups, Ad Those Measurement, to think we're how run we'll everyone how going understand with easier this it Insight align we for coupled we're two solution the we and doing. call make and Content where on and better

distinct look focused for Both the measurement delivering group Ad modern Solutions a parts. closer at are We parts programmatic Taking look solutions group. this built on that's measurement and in world. Content at media, two the Measurement for differentiated

both our offerings, These media are coupled products. and This our digital metrics, TV, business. movies audience syndicated syndicated core local, our first our and with along audience video business. with The includes measurement comScore is national content

growth expected for part the solution in forward, the rate long-term the is digits. this single Looking group of low

activation the includes comScore a linear, The solution heard bit of digital, our is Ratings clients for second, which flight. in faster-growing optimize advertising CCR part segment referred services TV, view past providing by of and we us audience AI-enabled platforms, social advertisers their as This broadcasters. measures audiences suite, the enrichment source about. product they're cross-platform is deduplicated enables campaigns and ID-free that comScore. quite for to Proximic cross-platform to and advertisers and connected which a leading with talk you've in across Proximic, while business, for Campaign publishers group, a our audience

to The is continue cross-platform with XX%. Measurement significant above Content expect rate of part see growth Ad we expected the Solutions where growth and an group long-term

The Insight needs work the This research is and to work. is tailored and next bespoke insight to Solutions, solution that clients specific group, our Research home have. custom our

and structure in rate data the that them privacy Solutions group. by landscape, that and custom the in and of that the the like helps We the or driven value do have, outcomes understand our feeds advertising. here Measurement expect low meet growth are digits, and the we needs long-term customers, products enhances single to work better This services includes their clients their competitive Content things Ad data the their

meet the to we and at in needs advertising. incredibly with collaboration activity this we as This highlights A market. the our measurement announced last capabilities week. varied are lift is that new This in linear to Kochava, the one NewFronts digital through with the deal strive partnership tied TV of the our where, recent is deal excited to example we able outcome show we're directly that about that's Kochava evolving

our these to new based With turn me QX over on that, about solution groups. Mary to performance it Margaret let talk

Mary Curry

you, Thank Jon.

groups, million cross-platform driven decline our was QX Measurement This revenue. same from revenue the was growth Looking in in partially decline $XX.X quarter and from Content products. at in to of million our ago. Ad X.X% new as was syndicated $XX.X offering, well our lower The audience as by down a offset TV these solution our and year business revenue movies digital related syndicated national growth primarily by

by X.X% $XX.X million Insight the custom year Solutions was of revenue million and from driven certain products. Research prior quarter, $XX.X down of primarily lower deliveries in digital

Turning on are expectations, the guidance maintaining revenue adjusted for the we last out now EBITDA laid current guidance and full and trends in we year XXXX. call. to Based earnings

CCR, and impact certain we're reminder, the Proximic through of that we custom products. syndicated the discussed the growth and churn year, seeing that revenue and the factors national impact improvements ramp-up TV previously digital including on pressures in As of the move we timing as continued certain a of spending

in lower As second with half a XXXX the of year. revenue was of it result, the XXXX, than in quarter quarter to in expect the of be the revenue building second back growth we

of we'll the remain see to ahead our growth stabilize look things confident we back As and see half XXXX, accelerate. that we cross-platform

for trending Specifically, see continue direction, to our the audience, signs integrations move we as price and see into right adoption earlier, as in the we syndicated roll and signs we for Cross mentioned out complete QX. to grow In continue as enhancements are average selling continuing to we that churn scale the metrics clients. we see we our we will digital usage that Platform, that

Finally, Solutions, political up, with see as to feed in our as scales expect ramp data accelerates. Kochava deliveries and collaboration as revenue spend Insight and more Research we

turn to back With now over questions. that, it operator the will I for

Operator

Kreyer question the Jason first of from comes [Operator Our with line Instructions] Craig-Hallum.

Jason Kreyer

digging year. illustrate half So guide have back I hole to you a so more a want that's the get in and going here. see down you if out substantial that kind break in kind QX, of of We're much imply the into when and the or of QX ramp confidence to Jon, just of can the we

in reemerges to you a little give do think you what confidence kind you that detail give can back of more ramp-up? So bit on just

Jonathan Carpenter

Yes. Thanks, Jason.

platform acceleration half our the and call were recall, growth based that we that that seeing environments. half going that that the had, cross-platform be across are you of quite number currently the half programmatic we're to first previous second clear year we was that softer off And was the to the be we of the second got works of going be in the of And scale bit evidence will integrations from As pretty the revenue a nicely. with acceleration. we've that have ready a integrations for in

I deals, momentum build syndicated some cases, currency other marketplace contracts is in things before certainly of related in those thing the to second anniversary that that, to anniversary in that like date And first start the keep half half, think with start the to and deals the by have to back prior of the we and, 'XX. accreditation comScore's we in broadly mind marketplace. as MRC we 'XX we in on adoption the to more

we've Jason, that's going monitor health renewal of and ad been confidence plenty to metrics a great now. looks has And in us client the pretty with gives second there continued Additionally, the quarters that our of digital that our for which certainly the the got scale syndicated back syndicated has digital of set business, year deal promising political year. a point spend our of pain the the of the to we churn for then half half improve, which internally business, on specifically,

Jason Kreyer

that, growth. double-clicking out base, million It's a Cross business, small on in the called Platform $X today. right? Just mean you I obviously, quarterly It's contribution XX%

obviously, reacceleration you're in only component year. back the of half the So of the expecting that's one

presentation of progress syndicated to how segments, content group new maybe the on research expect the can Just versus the walk piece? reporting of XXXX of the given through you kind you or audience kind

Jonathan Carpenter

that we business, syndicated is that portion has the the as business fully And year. we flatten the that syndicated itself in at visibility Again, corner, which churn of here syndicated legacy metrics solution know into. we've some that clients up our the audience get that got list we and starts half offering, are turned the I reasons anniversary for back our deals described. of the largest Yes. of expect gets into the a half the We to year digital monitor, that the out second groups, start new of we really to the

related those and year. number coupled platform Cross that feel to half of things, across second about two good the the up So Platform, in here with integrations like Proximic that we what of really looks we're signing CCR, the

in is Let's be enabled media going be honest, focused. that Platform going. clients where that is can the is exactly Solutions winning. we're that's ecosystem The programmatic across where for where the And Cross puck environments, activated that is exactly puck and we're to and

Jason Kreyer

XX% growth Proximic impressions. And side, you so out lastly on just called for that me, in the

revenue. that Now correlates don't I think directly to

I'm revenue what the kind in recognition can just gave just this You of a that flows you how expecting Cross forward remind Platform in? the for indicator us figure. XX% maybe and But as we curious, That growth move you're that impressions, leading year? is

Jonathan Carpenter

Yes.

I look how it think I But of a in there, scaling. leading for part is the I indicator a business mix think Jason. at there's So as would shift that

recognize pricing solutions, And in of fast-growing the revenue of which the of component in the business. we Q shift so equation, in lean P starts more side how which part we ID-free of that that as is into business, a is growth price/mix times to favor that

Operator

back the Jon remarks. to Carpenter closing today's concludes session. turn like question-and-answer to call I'd for That

Jonathan Carpenter

Thanks, appreciate joining evening. forward soon. it this everybody, We to for look and many talking of to us you

Operator

for call. concludes participating. conference This today's Thank you

You may now disconnect.

comScore (SCOR) 7 May 242024 Q1 Earnings call transcript