RESTON, Va., Nov. 8, 2021
/PRNewswire/ -- Comscore, Inc. (Nasdaq: SCOR), a trusted
partner for planning, transacting, and evaluating media across
platforms, today reported financial results for the quarter ended
September 30, 2021.
Third Quarter 2021 Financial Highlights
- Revenue for the third quarter up 5% to $92.5 million compared to $88.0 million in the year-ago quarter
- Net income of $2.0 million
compared to a net loss of $11.1
million in the year-ago quarter
- Adjusted EBITDA of $11.3 million
compared to $7.3 million in the
year-ago quarter
- Reaffirmed full-year 2021 guidance of revenue increase between
3% and 5% over 2020 and adjusted EBITDA margin of 6% to 8%
Recent Key Renewals, Partnerships and New Business
Developments
- MRC audit for Local and National Television measurement is
officially underway
- Local TV – Exclusive agreement with Univision as local TV
currency in several markets
- Spectrum Reach to move to Comscore as their preferred
television currency in all 89 markets by year-end
- Comscore Consumer Intelligence (CCI), a powerful local market
audience segmentation and sales tool, is now available in all 210
local TV markets
- Syndicated Digital – New agreements with Talroo and The
Publisher Desk and improved renewal rates with small digital
publishers
- Agency – New exclusive agreements with Cornerstone Media Group
and Imaginuity
- Comscore Campaign Ratings (CCR) is the first and only ad
measurement service to integrate Google's YouTube and YouTube TV
inventory in cross-platform measurement including CTV,
significantly enhancing our service to advertisers
- Predictive Audiences expands with the inclusion of L2 political
segments to help advertisers with cookie-free audience targeting
ahead of the 2022 political season
- Out-of-Home – New agreement with Trooh for digital out-of-home
measurement and new Activation partnership with Vistar Media to
better enable advertisers to reach out-of-home audiences
- Movies – Expansion of Sony relationship
- Comscore's continued commitment to security and privacy
illustrated by obtaining ISO certifications for Information
Security and Privacy Information Management Systems (ISO 27001 and
ISO 27701)
"This was a strong quarter for Comscore as we reported our
highest revenue number in seven quarters and our highest revenue
growth rates in eleven quarters. We also reported adjusted EBITDA
at a level we haven't seen in many years. There are significant
changes taking place in media measurement and Comscore is front and
center. We are listening to our customers and making the
investments necessary to provide the next generation of measurement
tools while continuing to deliver stable and reliable reporting of
today's viewing audiences. There is a tremendous opportunity for
Comscore as it positions itself as the new currency, which we
expect will continue to drive revenue growth in the fourth quarter
of 2021 and into 2022," said Bill
Livek, CEO and Executive Vice Chairman of Comscore.
Third Quarter Summary Results
Revenue in the third quarter of 2021 was $92.5 million, up 5% from $88.0 million in the year-ago quarter, with
growth from increases in TV, custom solutions, Lift and Survey, and
Activation offset by lower syndicated digital revenue.
Ratings and Planning revenue was $62.1
million in the third quarter of 2021, down 1% from
$62.7 million in the year-ago
quarter. The decrease was the result of lower syndicated digital
and cross-platform audience products offset by higher TV revenue.
TV continued to experience higher revenue compared to the prior
year from new partnerships and increased agency use. Syndicated
digital revenue was lower compared to the prior year, primarily due
to our smaller customers who continue to be impacted by ongoing
industry changes in ad buying and consolidations, but has
stabilized (flat sequentially) when compared to the prior
quarter.
Analytics and Optimization revenue was $22.5 million in the third quarter of 2021, up
29% from $17.4 million in the
year-ago quarter. The increase was related to higher revenue across
all product offerings, including Activation, custom solutions, Lift
and Survey. Activation experienced a 38% increase from the year-ago
quarter and 7% sequential growth as we continued to bring new
solutions to market.
Movies Reporting and Analytics revenue was $7.9 million in the third quarter of 2021, up 1%
from $7.8 million in the year-ago
quarter, and up 5% sequentially. As theaters have now reopened in
most markets worldwide, we believe revenue from the movies business
should continue to experience sequential quarterly increases as
consumers return to theaters.
Expenses from cost of revenues, sales and marketing, research
and development, and general and administrative were $90.3 million, up 6% from $85.2 million in the year-ago quarter. The
increase relates primarily to higher data costs associated with our
new commercial agreements and higher professional fees. These
increases were offset by lower panel costs.
Net income for the third quarter of 2021 was $2.0 million compared to a net loss of
$11.1 million reported in the
year-ago quarter. After accounting for dividends on our convertible
preferred stock, loss per share attributable to common shares was
$(0.02), compared to a loss per share
attributable to common shares of $(0.16) in the year-ago quarter.
For the third quarter of 2021, non-GAAP adjusted EBITDA was
$11.3 million, compared to
$7.3 million in the year-ago quarter,
resulting in adjusted EBITDA margins of 12% and 8%, respectively.
The increase in the third quarter of 2021 compared to the year-ago
quarter relates primarily to higher revenue and favorable foreign
exchange rates. These increases were partially offset by higher
data costs and professional fees. Adjusted EBITDA and adjusted
EBITDA margin exclude stock-based compensation expense, 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.
Balance Sheet and Liquidity
As of September 30, 2021, cash, cash equivalents and
restricted cash totaled $16.7
million, including $0.8
million in restricted cash. Total debt principal as of
September 30, 2021, including $16.0
million in outstanding borrowings under our senior secured
revolving credit agreement, was $21.0
million.
2021 Outlook
Based on current trends and expectations, we are reaffirming the
revenue and adjusted EBITDA guidance provided in the previous
quarter. We continue to believe our full-year 2021 revenue growth
will be on the lower end of the 3% to 5% range over 2020, and we
are targeting an adjusted EBITDA margin of 6% to 8%.
We do not provide GAAP net income (loss) on a forward-looking
basis because we are unable to predict with reasonable certainty
our future stock-based compensation expense, fair value adjustments
for financing derivatives and warrants, variable interest expense,
litigation and restructuring expense, and any unusual gains or
losses without unreasonable effort. These items are uncertain,
depend on various factors, and could be material to results
computed in accordance with GAAP. For this reason, we are unable
without unreasonable effort to provide a reconciliation of adjusted
EBITDA or adjusted EBITDA margin to the most directly comparable
GAAP measure, GAAP net income (loss), on a forward-looking
basis.
Conference Call Information for Today, Monday, November 8 at 5:00
p.m. ET
Management will provide commentary on the company's results in a
conference call on Monday, November
8, 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 # 6067738. 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 #6067738. The replay will also be available via
webcast 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 expected revenue growth and adjusted EBITDA margin for
future periods, the impact of new customer contracts and
partnerships on our business and revenue prospects, the continued
impact of the Covid-19 pandemic on our business, evolving industry
trends, Comscore's currency opportunities, stabilization of
syndicated digital revenue, and product development and innovation.
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 and customer, partner
and vendor relationships; external market conditions and
competition; evolving privacy and regulatory standards; the
continuing 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 we make 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 our
forward-looking statements, which speak only as of the date such
statements are made. We do not intend or undertake, and expressly
disclaim, 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 herein 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.
|
COMSCORE,
INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(In thousands,
except share and par value data)
|
|
|
|
|
|
As
of
|
|
As
of
|
|
September 30,
2021
|
|
December 31,
2020
|
|
(Unaudited)
|
|
|
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
15,940
|
|
|
$
|
31,126
|
|
|
Restricted
cash
|
794
|
|
|
19,615
|
|
|
Accounts receivable,
net of allowances of $1,215 and $2,757, respectively
|
81,461
|
|
|
69,379
|
|
|
Prepaid expenses and
other current assets
|
13,662
|
|
|
16,910
|
|
|
Total current
assets
|
111,857
|
|
|
137,030
|
|
|
Property and
equipment, net
|
31,349
|
|
|
30,973
|
|
|
Operating
right-of-use assets
|
30,175
|
|
|
28,959
|
|
|
Goodwill
|
417,104
|
|
|
418,327
|
|
|
Intangible assets,
net
|
33,473
|
|
|
52,340
|
|
|
Deferred tax
assets
|
2,790
|
|
|
2,741
|
|
|
Other non-current
assets
|
9,888
|
|
|
7,600
|
|
|
Total
assets
|
$
|
636,636
|
|
|
$
|
677,970
|
|
|
Liabilities,
Convertible Redeemable Preferred Stock and Stockholders'
Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
|
42,424
|
|
|
$
|
36,640
|
|
|
Accrued
expenses
|
40,078
|
|
|
48,380
|
|
|
Contract
liability
|
51,116
|
|
|
58,529
|
|
|
Customer
advances
|
8,949
|
|
|
12,477
|
|
|
Warrants
liability
|
13,769
|
|
|
2,831
|
|
|
Current operating
lease liabilities
|
7,327
|
|
|
7,024
|
|
|
Secured term
note
|
—
|
|
|
12,644
|
|
|
Other current
liabilities
|
6,504
|
|
|
5,750
|
|
|
Total current
liabilities
|
170,167
|
|
|
184,275
|
|
|
Non-current operating
lease liabilities
|
37,515
|
|
|
36,127
|
|
|
Non-current contract
liabilities
|
2,497
|
|
|
4,156
|
|
|
Deferred tax
liabilities
|
1,515
|
|
|
627
|
|
|
Senior secured
convertible notes
|
—
|
|
|
192,895
|
|
|
Financing
derivatives
|
—
|
|
|
11,300
|
|
|
Revolving line of
credit
|
16,000
|
|
|
—
|
|
|
Other non-current
liabilities
|
23,726
|
|
|
19,600
|
|
|
Total
liabilities
|
251,420
|
|
|
448,980
|
|
|
Commitments and
contingencies
|
|
|
|
|
Convertible
redeemable preferred stock, $0.001 par value; 82,527,609 and zero
shares
authorized, issued and outstanding as of September 30, 2021
and December 31, 2020,
respectively; aggregate liquidation preference of $207,953 as of
September 30, 2021
|
187,885
|
|
|
—
|
|
|
Stockholders'
equity:
|
|
|
|
|
Preferred stock,
$0.001 par value; 7,472,391 and 5,000,000 shares authorized as
of
September 30, 2021 and December 31, 2020, respectively;
no shares issued or
outstanding as of September 30, 2021 or December 31,
2020
|
—
|
|
|
—
|
|
|
Common stock, $0.001
par value; 275,000,000 and 150,000,000 shares authorized as
of September 30, 2021 and December 31, 2020,
respectively; 88,964,022 shares issued
and 82,199,226 shares outstanding as of September 30, 2021,
and 79,703,342 shares
issued and 72,938,546 shares outstanding as of December 31,
2020
|
82
|
|
|
73
|
|
|
Additional paid-in
capital
|
1,655,288
|
|
|
1,621,986
|
|
|
Accumulated other
comprehensive loss
|
(10,367)
|
|
|
(7,030)
|
|
|
Accumulated
deficit
|
(1,217,688)
|
|
|
(1,156,055)
|
|
|
Treasury stock, at
cost, 6,764,796 shares as of September 30, 2021 and
December 31, 2020
|
(229,984)
|
|
|
(229,984)
|
|
|
Total stockholders'
equity
|
197,331
|
|
|
228,990
|
|
|
Total liabilities,
convertible redeemable preferred stock and stockholders'
equity
|
$
|
636,636
|
|
|
$
|
677,970
|
|
|
COMSCORE,
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(LOSS)
(Unaudited)
(In thousands,
except share and per share data)
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
Revenues
|
$
|
92,487
|
|
|
$
|
87,952
|
|
|
$
|
270,476
|
|
|
$
|
266,046
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
(1) (2)
|
49,179
|
|
|
46,466
|
|
|
153,267
|
|
|
137,213
|
|
|
Selling and marketing
(1) (2)
|
15,212
|
|
|
17,131
|
|
|
49,569
|
|
|
52,351
|
|
|
Research and
development (1) (2)
|
9,051
|
|
|
9,501
|
|
|
29,536
|
|
|
29,402
|
|
|
General and
administrative (1) (2)
|
16,895
|
|
|
12,136
|
|
|
45,609
|
|
|
41,420
|
|
|
Amortization of
intangible assets
|
6,172
|
|
|
6,750
|
|
|
18,866
|
|
|
20,514
|
|
|
Impairment of
right-of-use and long-lived assets
|
—
|
|
|
—
|
|
|
—
|
|
|
4,671
|
|
|
Total expenses from
operations
|
96,509
|
|
|
91,984
|
|
|
296,847
|
|
|
285,571
|
|
|
Loss from
operations
|
(4,022)
|
|
|
(4,032)
|
|
|
(26,371)
|
|
|
(19,525)
|
|
|
Other income
(expense), net
|
5,713
|
|
|
4,191
|
|
|
(9,069)
|
|
|
12,862
|
|
|
Gain (loss) from
foreign currency transactions
|
1,180
|
|
|
(2,012)
|
|
|
1,884
|
|
|
(2,152)
|
|
|
Interest expense,
net
|
(169)
|
|
|
(9,027)
|
|
|
(7,569)
|
|
|
(26,729)
|
|
|
Loss on
extinguishment of debt
|
—
|
|
|
—
|
|
|
(9,629)
|
|
|
—
|
|
|
Income (loss) before
income taxes
|
2,702
|
|
|
(10,880)
|
|
|
(50,754)
|
|
|
(35,544)
|
|
|
Income tax
(provision) benefit
|
(722)
|
|
|
(241)
|
|
|
(2,166)
|
|
|
838
|
|
|
Net income
(loss)
|
$
|
1,980
|
|
|
$
|
(11,121)
|
|
|
(52,920)
|
|
|
$
|
(34,706)
|
|
|
Net loss available to
common stockholders
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
1,980
|
|
|
$
|
(11,121)
|
|
|
(52,920)
|
|
|
$
|
(34,706)
|
|
|
Convertible
redeemable preferred stock dividends
|
(3,910)
|
|
|
—
|
|
|
(8,713)
|
|
|
—
|
|
|
Total net loss
available to common stockholders
|
$
|
(1,930)
|
|
|
$
|
(11,121)
|
|
|
(61,633)
|
|
|
$
|
(34,706)
|
|
|
Net loss per common
share:
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
$
|
(0.02)
|
|
|
$
|
(0.16)
|
|
|
(0.77)
|
|
|
$
|
(0.49)
|
|
|
Weighted-average
number of shares used in per share
calculation - Common Stock:
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
82,185,009
|
|
|
71,222,122
|
|
|
79,951,857
|
|
|
70,638,292
|
|
|
Comprehensive income
(loss):
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
1,980
|
|
|
$
|
(11,121)
|
|
|
(52,920)
|
|
|
$
|
(34,706)
|
|
|
Other comprehensive
(loss) income:
|
|
|
|
|
|
|
|
|
Foreign currency
cumulative translation adjustment
|
(1,917)
|
|
|
2,750
|
|
|
(3,337)
|
|
|
1,441
|
|
|
Total comprehensive
income (loss)
|
$
|
63
|
|
|
$
|
(8,371)
|
|
|
$
|
(56,257)
|
|
|
$
|
(33,265)
|
|
|
|
|
|
|
|
|
|
|
(1)
Stock-based compensation expense is included in the line items
above as follows:
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
Cost of
revenues
|
$
|
231
|
|
|
$
|
503
|
|
|
$
|
1,554
|
|
|
$
|
1,199
|
|
|
Selling and
marketing
|
208
|
|
|
625
|
|
|
1,679
|
|
|
1,954
|
|
|
Research and
development
|
170
|
|
|
386
|
|
|
1,162
|
|
|
817
|
|
|
General and
administrative
|
2,425
|
|
|
1,010
|
|
|
6,761
|
|
|
3,558
|
|
|
Total stock-based
compensation expense
|
$
|
3,034
|
|
|
$
|
2,524
|
|
|
$
|
11,156
|
|
|
$
|
7,528
|
|
|
|
|
|
|
|
|
|
|
(2)
Excludes amortization of intangible assets, which is presented
separately in the Condensed Consolidated Statements of Operations
and Comprehensive Income (Loss).
|
|
COMSCORE,
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In
thousands)
|
|
|
|
Nine Months
Ended September 30,
|
|
2021
|
|
2020
|
|
Operating
activities:
|
|
|
|
|
Net loss
|
$
|
(52,920)
|
|
|
$
|
(34,706)
|
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
Change in fair value
of warrants liability
|
10,938
|
|
|
(5,765)
|
|
|
Amortization of
intangible assets
|
18,866
|
|
|
20,514
|
|
|
Loss on extinguishment
of debt
|
9,629
|
|
|
—
|
|
|
Stock-based
compensation expense
|
11,156
|
|
|
7,528
|
|
|
Depreciation
|
11,873
|
|
|
10,317
|
|
|
Non-cash interest
expense on senior secured convertible notes
|
4,692
|
|
|
3,060
|
|
|
Non-cash operating
lease expense
|
3,952
|
|
|
4,195
|
|
|
Accretion of debt
discount
|
1,620
|
|
|
5,550
|
|
|
Deferred tax
provision
|
652
|
|
|
254
|
|
|
Amortization expense
of finance leases
|
1,485
|
|
|
1,209
|
|
|
Amortization of
deferred financing costs
|
346
|
|
|
1,140
|
|
|
Bad debt (benefit)
expense
|
(218)
|
|
|
1,664
|
|
|
Change in fair value
of financing derivatives
|
(1,800)
|
|
|
(6,887)
|
|
|
Impairment of
right-of-use and long-lived assets
|
—
|
|
|
4,671
|
|
|
Other
|
712
|
|
|
—
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
(12,661)
|
|
|
10,675
|
|
|
Prepaid expenses and
other assets
|
283
|
|
|
(2,918)
|
|
|
Accounts payable,
accrued expenses and other liabilities
|
6,632
|
|
|
(12,380)
|
|
|
Contract liabilities
and customer advances
|
(12,563)
|
|
|
(5,180)
|
|
|
Operating lease
liabilities
|
(3,795)
|
|
|
(4,784)
|
|
|
Net cash used in
operating activities
|
(1,121)
|
|
|
(1,843)
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
Capitalized
internal-use software costs
|
(10,925)
|
|
|
(11,428)
|
|
|
Purchases of property
and equipment
|
(744)
|
|
|
(200)
|
|
|
Net cash used in
investing activities
|
(11,669)
|
|
|
(11,628)
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
Principal payment and
extinguishment costs on senior secured convertible notes
|
(204,014)
|
|
|
—
|
|
|
Principal payment and
extinguishment costs on secured term note
|
(14,031)
|
|
|
—
|
|
|
Proceeds from the
exercise of stock options
|
—
|
|
|
142
|
|
|
Payments for
dividends on convertible redeemable preferred stock
|
(4,760)
|
|
|
—
|
|
|
Principal payments on
finance leases
|
(1,475)
|
|
|
(1,284)
|
|
|
Principal payments on
software license arrangements
|
(277)
|
|
|
(258)
|
|
|
Revolving line of
credit issuance costs
|
(108)
|
|
|
—
|
|
|
Payments for taxes
related to net share settlement of equity awards
|
(44)
|
|
|
(76)
|
|
|
Proceeds from
borrowing on revolving line of credit
|
16,000
|
|
|
—
|
|
|
Proceeds from
issuance of convertible redeemable preferred stock, net of issuance
costs
|
188,183
|
|
|
—
|
|
|
Net cash used in
financing activities
|
(20,526)
|
|
|
(1,476)
|
|
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
(691)
|
|
|
8
|
|
|
Net decrease in cash,
cash equivalents and restricted cash
|
(34,007)
|
|
|
(14,939)
|
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
50,741
|
|
|
66,773
|
|
|
Cash, cash
equivalents and restricted cash at end of period
|
$
|
16,734
|
|
|
$
|
51,834
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of September
30,
|
|
2021
|
|
2020
|
|
Cash and cash
equivalents
|
$
|
15,940
|
|
|
$
|
32,221
|
|
|
Restricted
cash
|
794
|
|
|
19,613
|
|
|
Total cash, cash
equivalents and restricted cash
|
$
|
16,734
|
|
|
$
|
51,834
|
|
|
Reconciliation of
Non-GAAP Financial Measures
|
|
|
|
|
|
|
|
The following table
presents a reconciliation of GAAP net income (loss) to non-GAAP
adjusted EBITDA and adjusted EBITDA margin for each of the periods
identified:
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
(In
thousands)
|
2021
(Unaudited)
|
|
2020
(Unaudited)
|
|
2021
(Unaudited)
|
|
2020
(Unaudited)
|
|
GAAP net income
(loss)
|
1,980
|
|
|
(11,121)
|
|
|
(52,920)
|
|
|
(34,706)
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets
|
6,172
|
|
|
6,750
|
|
|
18,866
|
|
|
20,514
|
|
|
Depreciation
|
3,882
|
|
|
3,529
|
|
|
11,873
|
|
|
10,317
|
|
|
Amortization expense
of finance leases
|
543
|
|
|
425
|
|
|
1,484
|
|
|
1,209
|
|
|
Income tax provision
(benefit)
|
722
|
|
|
241
|
|
|
2,166
|
|
|
(838)
|
|
|
Interest expense,
net
|
169
|
|
|
9,027
|
|
|
7,569
|
|
|
26,729
|
|
|
EBITDA
|
13,468
|
|
|
8,851
|
|
|
(10,962)
|
|
|
23,225
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Stock-based
compensation expense
|
3,034
|
|
|
2,524
|
|
|
11,156
|
|
|
7,528
|
|
|
Amortization of
cloud-computing implementation costs
|
342
|
|
|
—
|
|
|
342
|
|
|
—
|
|
|
Loss on
extinguishment of debt
|
—
|
|
|
—
|
|
|
9,629
|
|
|
—
|
|
|
Impairment of
right-of-use and long-lived assets
|
—
|
|
|
—
|
|
|
—
|
|
|
4,671
|
|
|
Other (income)
expense, net(1)
|
(5,582)
|
|
|
(4,072)
|
|
|
9,288
|
|
|
(12,506)
|
|
|
Non-GAAP adjusted
EBITDA
|
$
|
11,262
|
|
|
$
|
7,303
|
|
|
$
|
19,453
|
|
|
$
|
22,918
|
|
|
Non-GAAP adjusted
EBITDA margin(2)
|
12.2%
|
|
|
8.3%
|
|
|
7.2%
|
|
|
8.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Adjustments to other (income) expense, net reflect non-cash
changes in the fair value of financing derivatives, interest
make-whole derivative and warrants liability
included in other income (expense), net on our Condensed
Consolidated Statements of Operations and Comprehensive Income
(Loss).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
Adjusted EBITDA margin is calculated by dividing adjusted EBITDA
by revenue reported on our Condensed Consolidated Statements of
Operations and
Comprehensive Income (Loss) for the applicable
period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table
presents a reconciliation of GAAP net income (loss) to non-GAAP net
income (loss) for each of the periods identified:
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
(In
thousands)
|
2021
(Unaudited)
|
|
2020
(Unaudited)
|
|
2021
(Unaudited)
|
|
2020
(Unaudited)
|
|
GAAP net income
(loss)
|
$
|
1,980
|
|
|
$
|
(11,121)
|
|
|
$
|
(52,920)
|
|
|
$
|
(34,706)
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets
|
6,172
|
|
|
6,750
|
|
|
18,866
|
|
|
20,514
|
|
|
Stock-based
compensation expense
|
3,034
|
|
|
2,524
|
|
|
11,156
|
|
|
7,528
|
|
|
Loss on
extinguishment of debt
|
—
|
|
|
—
|
|
|
9,629
|
|
|
—
|
|
|
Impairment of
right-of-use and long-lived assets
|
—
|
|
|
—
|
|
|
—
|
|
|
4,671
|
|
|
Other (income)
expense, net (1)
|
(5,582)
|
|
|
(4,072)
|
|
|
9,288
|
|
|
(12,506)
|
|
|
Non-GAAP net income
(loss)
|
$
|
5,604
|
|
|
$
|
(5,919)
|
|
|
$
|
(3,981)
|
|
|
$
|
(14,499)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Adjustments to other (income) expense, net reflect non-cash
changes in the fair value of financing derivatives, interest
make-whole derivative and warrants liability
included in other income (expense), net on our Condensed
Consolidated Statements of Operations and Comprehensive Income
(Loss).
|
We do not provide GAAP net income (loss) on a forward-looking
basis because we are unable to predict with reasonable certainty
our future stock-based compensation expense, fair value
adjustments, variable interest expense, litigation and
restructuring expense and any unusual gains or losses without
unreasonable effort. These items are uncertain, depend on various
factors, and could be material to results computed in accordance
with GAAP. For this reason, we are unable without unreasonable
effort to provide a reconciliation of adjusted EBITDA or non-GAAP
net income (loss) to the most directly comparable GAAP measure,
GAAP net income (loss), on a forward-looking basis.
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from our
three offerings of products and services are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
|
|
|
(In
thousands)
|
2021
(Unaudited)
|
|
% of
Revenue
|
|
2020
(Unaudited)
|
|
% of
Revenue
|
|
$
Variance
|
|
%
Variance
|
|
Ratings and
Planning
|
$
|
62,127
|
|
|
67.2
|
%
|
|
$
|
62,718
|
|
|
71.3
|
%
|
|
$
|
(591)
|
|
|
(0.9)
|
%
|
|
Analytics and
Optimization
|
22,485
|
|
|
24.3
|
%
|
|
17,432
|
|
|
19.8
|
%
|
|
5,053
|
|
|
29.0
|
%
|
|
Movies Reporting and
Analytics
|
7,875
|
|
|
8.5
|
%
|
|
7,802
|
|
|
8.9
|
%
|
|
73
|
|
|
0.9
|
%
|
|
Total
revenues
|
$
|
92,487
|
|
|
100.0
|
%
|
|
$
|
87,952
|
|
|
100.0
|
%
|
|
$
|
4,535
|
|
|
5.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
|
|
|
|
(In
thousands)
|
2021
(Unaudited)
|
|
% of
Revenue
|
|
2020
(Unaudited)
|
|
% of
Revenue
|
|
$
Variance
|
|
%
Variance
|
|
Ratings and
Planning
|
$
|
190,351
|
|
|
70.4
|
%
|
|
$
|
190,018
|
|
|
71.5
|
%
|
|
$
|
333
|
|
|
0.2
|
%
|
|
Analytics and
Optimization
|
57,950
|
|
|
21.4
|
%
|
|
49,827
|
|
|
18.7
|
%
|
|
8,123
|
|
|
16.3
|
%
|
|
Movies Reporting and
Analytics
|
22,175
|
|
|
8.2
|
%
|
|
26,201
|
|
|
9.8
|
%
|
|
(4,026)
|
|
|
(15.4)
|
%
|
|
Total
revenues
|
$
|
270,476
|
|
|
100.0
|
%
|
|
$
|
266,046
|
|
|
100.0
|
%
|
|
$
|
4,430
|
|
|
1.7
|
%
|
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SOURCE Comscore