Comscore Reports Fourth Quarter 2021 Results

Revenue of $96.5 Million, Up 7% from Q4 2020
Net Income of $2.9 Million versus Net Loss of $13.2 Million in Q4 2020
Adjusted EBITDA of $12.4 Million, up 32% from Q4 2020

RESTON, Va., February 28, 2022 - Comscore, Inc. (Nasdaq: SCOR), a trusted partner for planning, transacting and evaluating media across platforms, today reported financial results for the fourth quarter and full year ended December 31, 2021.

Q4 2021 Financial Highlights

  • Revenue for the fourth quarter was $96.5 million compared to $90.0 million in Q4 2020
  • Net income of $2.9 million compared to a net loss of $13.2 million in Q4 2020
  • Adjusted EBITDA of $12.4 million compared to $9.4 million in Q4 2020

FY 2021 Financial Highlights

  • Revenue for 2021 was $367.0 million compared to $356.0 million in 2020
  • Net loss of $50.0 million compared to $47.9 million in 2020
  • Adjusted EBITDA of $31.9 million compared to $32.3 million in 2020
  • Cash, cash equivalents and restricted cash of $22.3 million versus $50.7 million as of December 31, 2020

2022 Financial Outlook

  • Revenue expected to grow mid to high single digits over 2021
  • Adjusted EBITDA margin expected to be consistent with 2021

Recent Developments

  • Comscore Everywhere to launch a new standard for single-source cross-platform measurement, providing the industry with an unmatched measurement solution for content, advertising, planning and optimization across media and screens
  • Announced partnership with DoubleVerify to develop an industry-first cross-platform ad verification and audience measurement solution
  • Selected as one of Warner Media's alternative currency providers for national television and cross-platform measurement
  • In Q4, renewed some of our largest key accounts, including major renewals with Nexstar and Sinclair
  • New business with local TV stations, including new stations with NBCU, Entravision, Gray Television, Allen Media and Univision; and an expansion with Gray Television where Gray is now using Comscore's audience data as primary selling currency in 95 of 113 markets
  • Signed over 30 independent agencies in 2021, with more than half coming in Q4 alone
  • Key digital growth with Warner Music, TripleLift and a three-year deal with AMC Networks
  • Comscore Predictive Audiences partnered with Xandr to bring cookie-free CTV audience targeting to the UK and EMEA
  • In partnership with IHS Markit, released programmatic cookie-free audience targets for in-market auto shoppers that outperform competitors' cookie-based behavioral segments
  • Acquired Shareablee, an industry-leading marketing analytics and measurement company in the social media space, tracking over 20 million brands, publishers and creators in over 70 countries; clients include Mondelez, GroupM, ESPN, NBCUniversal and Vox Media

"I am excited to report that in the fourth quarter our teams delivered Comscore's highest quarterly revenue number in the last nine quarters, as we saw broad adoption across key areas of our product offering. This includes our Activation business, where we delivered 43% revenue growth year over year," said Bill Livek, Comscore CEO and Executive Vice Chair. "The marketplaces we are operating in are evolving rapidly, and Comscore remains well positioned, with our robust suite of census-based assets, to capitalize on the needs of our clients. I am proud of our team's execution, and we are excited to unlock the opportunity that is ahead of us in 2022."

Fourth Quarter Summary Results
Revenue in the fourth quarter was $96.5 million, up 7.3% from $90.0 million in Q4 2020, with growth from increases in TV, custom solutions, and Activation offset by lower syndicated digital revenue. Expenses from cost of revenues, sales and marketing, research and development and general and administrative were $92.9 million, up 9.2% compared to $85.0 million in Q4 2020.

Net income for the quarter was $2.9 million, compared to a net loss of $13.2 million in Q4 2020. After accounting for dividends on convertible preferred stock, loss per share attributable to common shares was $(0.01), compared to loss per share of $(0.18) in Q4 2020. Adjusted EBITDA was $12.4 million, compared to $9.4 million in Q4 2020, resulting in adjusted EBITDA margins of 13% and 10%, respectively. Adjusted EBITDA and adjusted EBITDA margin exclude stock-based compensation, impairment charges, change in fair value of financing derivatives and warrants liability, debt extinguishment costs, amortization of cloud-computing implementation costs, and other items as presented in the accompanying tables.

Full-Year Summary Results
Revenue for 2021 was $367.0 million, up 3.1% compared to $356.0 million in 2020. Expenses from cost of revenues, sales and marketing, research and development and general and administrative were $370.8 million, up 7.4% compared to $345.4 million in 2020.

Net loss for the year was $50.0 million, compared to net loss of $47.9 million in 2020. Included in net loss for 2021 was a $15.3 million non-cash charge related to the convertible preferred stock transaction closed in Q1 2021. Included in net loss for 2020 was a non-cash impairment charge of $4.7 million related to property leases. After accounting for dividends on convertible preferred stock, loss per share attributable to common shares was $(0.78), compared to loss per share of $(0.67) in 2020. Adjusted EBITDA was $31.9 million, compared to $32.3 million in 2020, resulting in adjusted EBITDA margins of 9%.

Balance Sheet and Liquidity
As of December 31, 2021, cash, cash equivalents and restricted cash totaled $22.3 million. Total debt principal as of December 31, 2021, including $16.0 million in outstanding borrowings under our senior secured revolving credit agreement, was $21.5 million. In 2021, the company used cash from its balance sheet to extinguish a foreign secured term note and pay transaction costs and dividends associated with its convertible preferred stock.

2022 Outlook
Based on current trends and expectations, the company believes 2022 revenue will increase mid to high single digits over 2021, driven by growth in TV and Activation and continued improvement in the movies business. We expect an adjusted EBITDA margin consistent with 2021 for 2022.

In the first quarter of 2022, management decided to evaluate future revenue results around solution groups that better represent the company's evolving business and customer needs. Beginning with Q1 2022, we plan to present revenue in two solution groups:

  • Digital Ad Solutions; and
  • Cross Platform Solutions, which includes the movies business.

If we had evaluated revenue based on the new solution groups in 2021, revenue from Digital Ad Solutions and Cross Platform Solutions would have been approximately 60% and 40% of total revenue, respectively. We expect 2022 revenue from Digital Ad Solutions to increase by low to mid-single digits over 2021 and Cross Platform Solutions to increase by high single digits to double digits over 2021. Additional information about the new solution groups is set forth in the accompanying tables.

Conference Call Information for Today, Monday, February 28 at 5:00 p.m. ET
Management will provide commentary on the company's results in a conference call on Monday, February 28, at 5:00 p.m. ET. To access this call, dial +1 844-229-7593 (U.S. and Canada) or +1 314-888-4258 (international) and reference Conference ID # 4695666. Participants are advised to dial in at least 10 minutes prior to the call to register. Additionally, a live webcast of the conference call will be available on the Investor Relations section of the company's website at ir.comscore.com/events-presentations.

Following the conference call, a replay will be available by dialing +1 855-859-2056 (U.S. and Canada) or +1 404-537-3406 (international) with Conference ID #4695666. The webcast replay and related materials will also be available at ir.comscore.com/events-presentations.

About Comscore
Comscore is a trusted partner for planning, transacting and evaluating media across platforms. With a data footprint that combines digital, linear TV, over-the-top and theatrical viewership intelligence with advanced audience insights, Comscore allows media buyers and sellers to quantify their multiscreen behavior and make business decisions with confidence. A proven leader in measuring digital and TV audiences and advertising at scale, Comscore is the industry's emerging, third-party source for reliable and comprehensive cross-platform measurement.

Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of federal and state securities laws, including, without limitation, our expectations, forecasts, plans and opinions regarding our strategic plans, commercial agreements, partnerships and product development plans, expected revenue growth and adjusted EBITDA margin for 2022. These statements involve risks and uncertainties that could cause actual events to differ materially from expectations, including, but not limited to, changes in our business, external market conditions, the impact of the Covid-19 pandemic and related government mandates, and our ability to achieve our expected strategic, financial and operational plans. For additional discussion of risk factors, please refer to our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and other filings that Comscore makes from time to time with the U.S. Securities and Exchange Commission (the "SEC"), which are available on the SEC's website ( www.sec.gov).

Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date such statements are made. Comscore does not intend or undertake, and expressly disclaims, any duty or 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.

Use of Non-GAAP Financial Measures
To provide investors with additional information regarding our financial results, we are disclosing in this press release adjusted EBITDA, adjusted EBITDA margin and non-GAAP net income (loss), which are non-GAAP financial measures used by our management to understand and evaluate our core operating performance and trends. We believe that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our operating results, as they permit our investors to view our core business performance using the same metrics that management uses to evaluate our performance. Nevertheless, our use of these non-GAAP financial measures has limitations as an analytical tool, and investors should not consider these measures in isolation or as a substitute for analysis of our results as reported under GAAP. Instead, you should consider these measures alongside GAAP-based financial performance measures, net income (loss), various cash flow metrics, and our other GAAP financial results. Set forth below are reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measure, net income (loss). These reconciliations should be carefully evaluated.

Q4 and full year 2021 Earnings Report.pdf

Press
Bill Daddi
Daddi Brand Communications
646-370-1341
press@comscore.com

Investor Contact
John Tinker
Comscore, Inc.
(212) 203-2129
jtinker@comscore.com