February 11, 2014
comScore, Inc. Reports Fourth Quarter and Full Year 2013 Results
Record Quarterly and Annual Revenue Reflect Continued Momentum
Across Audience, Advertising and Digital Enterprise Businesses
RESTON, VA - February 11, 2014 - comScore, Inc. (NASDAQ: SCOR), a leader in measuring the digital world, today announced financial results for the fourth quarter and full year of 2013. Separately, the Company also today announced that its Board of Directors has appointed Serge Matta as Chief Executive Officer, Dr. Magid Abraham as Executive Chairman of the Board of Directors and Gian Fulgoni as Chairman Emeritus of comScore, all effective March 1, 2014.
Fourth Quarter and Full Year 2013
comScore achieved record quarterly revenue of $76.5 million; GAAP income before income taxes of $0.3 million; and GAAP net income of $0.2 million, or $0.00 per basic and diluted share.
Fourth quarter and full year 2013 metrics compared to pro forma* results for the fourth quarter and full year 2012 were as follows:
- Fourth quarter revenue of $76.5 million, up 15% from a year ago.
- Fourth quarter Adjusted EBITDA of $17.1 million, up 47% from a year ago.
- Fourth quarter Adjusted EBITDA margin was 22% of revenue, up from 18% from a year ago.
- Annual revenue of $285.5 million, up 16% from a year ago.
- Annual Adjusted EBITDA of $60.1 million, up 40% from a year ago.
* All amounts, including implied prior year Pro Forma amounts, reflect adjustments to exclude the Non-Health Copy Testing and Configuration Manager products and are based on management’s estimates of the revenue and results of operations of such products. Prior period amounts have been adjusted to reflect the same assumptions with respect to the Non-Health Copy Testing and Configuration Manager products for the purposes of consistent presentation. See Reconciliation of Revenue and Income before Income Taxes to Non-GAAP Revenue, non-GAAP Income and Adjusted EBITDA set forth in the attachment to this press release.
Dr. Magid Abraham, comScore's chief executive officer, said, "Our strong fourth quarter and full-year performance reflected the significant momentum comScore generated throughout 2013 with our leading digital measurement products and multi-platform capabilities. We delivered meaningful market share gains, record revenue, strong margin expansion and EBITDA growth well above expectations. In 2014, we plan to build upon this great momentum while continuing our focus on sharp execution.
“Looking ahead, we have a unique opportunity to shape a fast-developing, cross-media and total video measurement market that we believe to be approximately $3 billion in size. Our FTC-mandated license agreement with Nielsen for TV viewing data from 70,000 Arbitron panelists will enable significant expansion of our cross-media measurement capabilities with a very attractive cost structure. With our breadth of data assets and capabilities, we believe that comScore is the only company positioned to deliver Total Video measurement at scale. We believe in this potential so much that we will be investing an additional $8 million to $10 million to support this opportunity in 2014.”
“As we move aggressively to realize our vision for Total Video measurement, we’re also working to significantly expand the reach of our advertising solutions,” said Serge Matta, comScore’s President, “Our partnership with Google will embed vCE in Google’s DoubleClick ad management platform making vCE seamlessly accessible to DoubleClick’s massive display, mobile, and video advertising footprint. With a great team, exciting partnerships, and the wind at our backs, we are well-positioned to deliver superior value to our shareholders and customers and drive our next stage of growth.”
To access the full press release, please click here:
Fourth Quarter and Full Year 2013 Earnings Report.pdf
comScore, Inc. (NASDAQ: SCOR) is a global leader in digital measurement and analytics, delivering insights on web, mobile and TV consumer behavior that enable clients to maximize the value of their digital investments. For more information, please visit www.comscore.com/companyinfo
Non-GAAP Financial Measures
comScore reports all financial information required in accordance with generally accepted accounting principles (GAAP). comScore believes, however, that evaluating its ongoing operating results will be enhanced if it also discloses certain non-GAAP information because it is useful to understand comScore's performance, as it excludes non-cash and other charges that many investors believe may obscure comScore's on-going operating results.
For example, comScore uses non-GAAP net income, which excludes stock-based compensation, amortization of acquired intangible assets, impairment of intangible assets, impairment of marketable securities, costs from acquisitions, restructurings and other non-recurring items, the non-cash deferred tax provision and litigation and related settlement costs. comScore reports non-GAAP EPS (diluted), which uses non-GAAP net income in lieu of GAAP net income in calculating earnings per share. Non-GAAP pro forma revenue excludes the estimated effects of revenue generated from non-health copy testing and configuration manager products. Adjusted pro forma EBITDA also excludes the estimated effects of operations related to Non-Health Copy Testing and Configuration Manager products.
The company believes that excluding certain costs from non-GAAP net income, non-GAAP EPS, and adjusted EBITDA provides a meaningful indication to investors of the expected on-going operating performance of the company. Specifically as it relates to acquisitions and restructurings, the exclusion of these costs reflects the expected benefits realized or to be realized upon the integration of acquired entities into comScore, and the realized benefits of the restructurings.
Whenever comScore uses such historical non-GAAP financial measures, it provides a reconciliation of historical non-GAAP financial measures to the most closely applicable GAAP financial measure. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these historical non-GAAP financial measures to their most directly comparable GAAP financial measure included in the financial tables accompanying this release. Although the company provides a reconciliation of historical non-GAAP financial measures, due to the high variability and difficulty in predicting certain items that affect net income, such as tax rates and stock price, comScore is unable to provide a complete reconciliation of adjusted EBITDA to net income on a forward-looking basis without unreasonable efforts. However, a reconciliation of forward-looking adjusted EBITDA to GAAP income (loss) before income taxes is set forth in the attachment to this press release.
These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same captions and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies. The use of certain non-GAAP financial measures requires management to make estimates and assumptions regarding amounts of assets and liabilities and the amounts of revenue and expense during the reporting periods. comScore bases its estimates on historical experience and assumptions that it believes are reasonable. Actual results could differ from those estimates.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, without limitation, comScore's expectations as to adoption of new products and services by customers; expectations regarding continued growth of its customer base; expectations as to the company's strategy, market position, growth in revenue and margin expansion, impact and financial benefits of certain products, including Total Video measurement; the expected market size available to Total Video measurement and comScore's expected investment in such market; expectations as to the benefits of comScore’s partnership with Google; expectations and forecasts of future financial performance, including related growth rates and components thereof; and assumptions related to growth for the first quarter and full year of 2014 and beyond. These statements involve risks and uncertainties that could cause our actual results to differ materially, including, but not limited to: comScore's ability to generate strong revenue and margin growth in future periods; comScore's ability to sell new or additional products and attract new customers; comScore's ability to sell additional subscription-based products to customers; comScore’s dependence on key partnership arrangements, comScore's ability to sell additional products and services to existing customers; and the volatility of quarterly results and expectations.
For a detailed discussion of these and other risk factors, please refer to comScore's Annual Report on Form 10-K for the year ended December 31, 2012, our Quarterly Report on Form 10-Q for the quarter ended September 30, 2013 and other filings we make from time to time with the Securities and Exchange Commission (the “SEC”), which are available on the SEC's Web site ( http://www.sec.gov ).
Stockholders of comScore are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date such statements are made. comScore does not undertake any obligation to publicly update any forward-looking statements to reflect events, circumstances or new information after the date of this press release, or to reflect the occurrence of unanticipated events.
Chief Financial Officer
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