COMSCORE, INC. RESTON, Va., May 5, 2015 /PRNewswire/ -- comScore, Inc. (NASDAQ: SCOR), a leader in measuring the digital world, today announced financial results for the first quarter 2015.
http://photos.prnewswire.com/prnvar/20080115/COMSCORELOGO
First Quarter 2015
comScore achieved record first quarter revenue of $87.3 million, an increase of 14% compared to the first quarter of 2014. GAAP loss before income taxes was $9.7 million. GAAP net loss was $7.3 million, or $0.22 per basic and diluted share.
First quarter 2015 results and metrics compared to first quarter 2014 on a pro forma basis* were as follows:
-- Revenue of $87.1 million, up 15% from a year ago.
-- Adjusted EBITDA of $21.3 million, up 25% from a year ago.
-- Adjusted EBITDA margin was 24% of revenue, up 200 basis points from a
year ago.
"I'm pleased that comScore delivered another quarter of strong revenues and financial performance," said Serge Matta, Chief Executive Officer of comScore. "Immediately following the end of the first quarter on April 1, we closed the WPP transaction that we announced on our last earnings call. I am also happy to announce that our board of directors recently authorized the increase of our share buy-back program to $150 million, demonstrating our continued commitment to return capital to our investors."
"As a company, we continue to pursue our mission of making audiences and advertising more valuable, and are doing so during a time of rapid change in the digital media, television and advertising ecosystems," continued Matta. "Today, one of the toughest challenges for our industry is understanding how, when and where consumers engage with video content across screens. We are solving this challenge. Cross-media is no longer an aspiration at comScore - we are increasingly making it a reality. We will be formally launching our first syndicated Xmedia product later this quarter."
First Quarter 2015 Supplemental Financial and Business Information
(dollars in millions)
(unaudited)
Pro Forma Pro Forma Change
1Q15* 1Q14*
Subscription
Revenue $79.9 $68.2 17.2%
Project Revenue $7.2 $7.8 (7.7)%
Existing
Customer
Revenue $78.9 $68.9 14.5%
New Customer
Revenue $8.2 $7.1 15.5%
International
Revenue $23.0 $22.6 1.8%
Customer Count 2,585 2,412 7.2%
* comScore classified its Mobile
Operator Analytics Division as
held for sale in the fourth
quarter of 2014. All year-to-
date 2015 and 2014 pro forma
growth rates included in the
foregoing reflect adjustments to
exclude the company's Mobile
Operator Analytics Division for
the purposes of consistent
presentation and are based on
management's estimates of the
revenue and results of operations
of such products and divisions.
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.
Financial Outlook
comScore's expectations for the second quarter of 2015 are outlined in the table below. All amounts indicated expressly exclude the anticipated effects of comScore's Mobile Operator Analytics Division.
GAAP
revenue* $86.8 million to $92.2 million
GAAP
loss
before
income
taxes* ($5.6) million to ($2.2) million
Adjusted
EBITDA** $18.5 million to $21.5 million
Estimated
fully-
diluted
shares 41.0 million
comScore's expectations for full year 2015 are outlined in the table below. All amounts indicated expressly exclude the anticipated effects of comScore's Mobile Operator Analytics Division.
GAAP
revenue* $368.0 million to $381.0 million
GAAP
(loss)
/
income
before
income
taxes* ($9.2) million to $5.4 million
Adjusted
EBITDA** $85.5 million to $94.5 million
Estimated
fully-
diluted
shares 39.5 million
* Assumes divestiture of Mobile
Operator Analytics Division during
2015
** Reconciliations of GAAP to non-GAAP
measures are set forth in the
attachment to this press release.
Due to the high variability and difficulty in predicting certain items that affect GAAP net income, such as tax rates and stock price, comScore is unable to provide a complete reconciliation of adjusted EBITDA to net income (loss) 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.
Conference Call Information
Management will provide commentary on the company's results in a conference call on Tuesday, May 5th at 8:30 a.m. ET.
The conference call and replay can be accessed by telephone and webcast as follows:
Call-in Number: 888-713-4209, Pass code 98973040
(International) 617-213-4863, Pass code 98973040
Webcast (live and replay): http://ir.comscore.com/events.cfm
About comScore
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 infrequently occurring items, 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. Year to date 2015 and 2014 Non-GAAP pro forma revenue excludes the estimated effects of revenue generated from the mobile operator analytics division. Year to date 2015 and 2014 adjusted pro forma EBITDA also excludes the estimated effects of operations related to the mobile operator analytics division 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. In addition, the company believes that adjusting for the pro forma effect of the expected sale of the company's mobile operator analytics division promotes better comparability of the company's financial statements.
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.
Cautionary Statement
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 comScore's strategy, market position, growth in revenue and margin expansion, impact and financial benefits of certain products; expectations as to new product releases; expectations as to comScore's performance with respect to and the benefits of comScore's partnerships, including those with WPP/Kantar; expectations regarding the strategic and financial benefits of certain strategic transactions with WPP/Kantar; expectations regarding the benefits of comScore's proposed share buy-back program; expectations regarding the disposal or discontinuation of comScore's Mobile Operator operations, including the related financial effects thereof; expectations and forecasts of future financial performance, including related growth rates and components thereof; and assumptions related to growth for the second quarter and full year of 2015 and beyond. These statements involve risks and uncertainties that could cause comScore's 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 develop new products; comScore's ability to sell additional subscription-based products to customers; comScore's ability to sell additional products and services to existing customers; comScore's ability to successfully dispose of its Mobile Operator operations; 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, 2014 and other filings comScore makes 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.
comScore, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except share and per share data)
Three Months Ended March 31,
----------------------------
2015 2014
---- ----
(unaudited)
Revenue $87,329 $76,899
Cost of
revenue
(excludes
amortization
of
intangible
assets)
(1) 24,892 23,441
Selling and
marketing
(1) 27,331 26,066
Research
and
development
(1) 18,006 12,477
General and
administrative
(1) 25,001 13,344
Amortization
of
intangible
assets 1,379 1,955
Settlement
of
litigation,
net (90) (80)
--- ---
Total
expenses
from
operations 96,519 77,203
------ ------
Loss from
operations (9,190) (304)
Interest
and other
expense,
net (392) (203)
Loss from
foreign
currency (72) (153)
Loss before
income tax
provision (9,654) (660)
Income tax
benefit
(provision) 2,329 (122)
Net loss $(7,325) $(782)
Net loss per common share:
Basic $(0.22) $(0.02)
Diluted $(0.22) $(0.02)
Weighted-average number of
shares used in per share
calculation - common
stock:
Basic 33,793,582 33,822,835
Diluted 33,793,582 33,822,835
(1) Amortization of stock-
based compensation is
included in the line items
above as follows:
Cost of
revenue $2,209 $725
Selling and
marketing $3,747 $2,396
Research
and
development $2,183 $725
General and
administrative $13,616 $3,377
comScore, Inc.
Condensed Consolidated Balance Sheets
(dollars in thousands)
March 31, December 31,
2015 2014
---- ----
(Unaudited) *
Assets
Current assets:
Cash and cash equivalents $40,854 $43,015
Accounts receivable, net of
allowances of $2,519 and
$2,079, respectively 83,502 98,185
Prepaid expenses and other
current assets 13,551 11,015
Deferred tax assets 19,718 20,976
Assets held for sale 5,602 5,692
----- -----
Total current assets 163,227 178,883
Property and equipment, net 45,370 42,365
Other non-current assets 969 1,017
Long-term deferred tax assets 12,683 12,369
Intangible assets, net 13,797 15,793
Goodwill 101,290 103,525
Total assets $337,336 $353,952
======== ========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $6,232 $3,421
Accrued expenses 26,059 37,212
Deferred revenue 90,535 92,013
Deferred rent 1,645 1,738
Capital lease obligations 14,239 13,353
Liabilities held for sale 4,150 3,873
----- -----
Total current liabilities 142,860 151,610
Deferred rent, long-term 9,433 9,738
Deferred revenue, long-term 1,126 2,063
Deferred tax liabilities,
long-term 1,058 1,182
Capital lease obligations,
long-term 13,023 13,072
Other long-term liabilities 751 1,022
Total liabilities 168,251 178,687
Commitments and contingencies
Stockholders' equity:
Common stock 36 36
Additional paid-in capital 333,442 324,176
Accumulated other
comprehensive loss (9,956) (5,591)
Accumulated deficit (100,401) (93,076)
Treasury stock (54,036) (50,280)
------- -------
Total stockholders' equity 169,085 175,265
Total liabilities and
stockholders' equity $337,336 $353,952
======== ========
* Information derived from the
audited Consolidated Financial
Statements
comScore, Inc.
Condensed Consolidated Statements of Cash Flows
(dollars in thousands)
Three Months Ended March 31,
----------------------------
2015 2014
---- ----
(unaudited)
Operating activities:
Net loss $(7,325) $(782)
Adjustments to reconcile net
loss to net cash provided by
operating activities:
Depreciation 5,010 4,183
Amortization
of
intangible
assets 1,379 1,955
Provision for
bad debts 985 500
Stock-based
compensation 21,755 7,223
Amortization
of deferred
rent (446) (255)
Deferred tax
(benefit)
provision 515 (255)
Gain on asset
disposition - (20)
Changes in operating assets
and liabilities:
Accounts
receivable 12,116 2,107
Prepaid
expenses and
other
current
assets (3,173) (2,505)
Accounts
payable,
accrued
expenses,
and other
liabilities (4,181) 2,378
Deferred
revenue 1,140 4,810
Deferred rent 88 36
Net cash
provided by
operating
activities 27,863 19,375
Investing activities:
Purchase of
property and
equipment (1,402) (1,873)
Net cash used
in investing
activities (1,402) (1,873)
Financing activities:
Proceeds from
the exercise
of common
stock
options 2,363 15
Repurchase of
common stock
(withholding
taxes) (21,660) (9,581)
Repurchase of
common stock
(treasury
shares) (3,756) (21,498)
Excess tax
benefits
from stock-
based
compensation - 265
Principal
payments on
capital
lease
obligations (3,793) (2,707)
Net cash used
in financing
activities (26,846) (33,506)
Effect of
exchange
rate changes
on cash (1,776) 2
Net decrease
in cash and
cash
equivalents (2,161) (16,002)
Cash and cash
equivalents
at beginning
of period 43,015 67,795
------
Cash and cash
equivalents
at end of
period $40,854 $51,793
======= =======
Reconciliation of Revenue and Income before Income Taxes to Non-GAAP Revenue, Non-GAAP Net Income and
Adjusted EBITDA
(dollars in thousands, except per share amounts)
Three Months Ended March 31,
----------------------------
2015 2014
---- ----
(unaudited)
Revenue $87,329 $76,899
Adjustment to exclude Mobile Operator Analytics products $(245) $(928)
-----
Non-GAAP Revenue (1) $87,084 $75,971
======= =======
Loss before income taxes $(9,654) $(660)
Deferred tax benefit (provision) (515) 255
Current tax benefit (provision) 2,844 (377)
----- ----
Net loss (7,325) (782)
Amortization of intangible assets 1,379 1,955
Stock-based compensation 21,755 7,223
Costs related to acquisitions, restructuring and other infrequently occurring items 1,405 2,611
Settlement of litigation, net (90) (80)
Adjustment to exclude Mobile Operator Analytics products 1,098 1,595
Deferred tax (benefit) provision 515 (255)
--- ----
Non-GAAP net income (1) 18,737 12,267
Current tax (benefit) provision (2,844) 377
Depreciation 5,010 4,183
Interest and other expense, net 392 203
Adjusted EBITDA (1) $21,295 $17,030
Adjusted EBITDA margin (%) 24% 22%
GAAP EPS (diluted) $(0.22) $(0.02)
Non-GAAP EPS (diluted) $0.54 $0.35
Weighted - average number of shares used in per share calculation - common stock
GAAP EPS (diluted) 33,793,582 33,822,835
Non-GAAP EPS (diluted) 34,881,620 35,064,385
(1) comScore classified its Mobile
Operator Analytics Division as held
for sale in the fourth quarter of
2014. All year-to-date 2015 and
2014 amounts include adjustments to
exclude the Mobile Operator
Analytics Division and are based on
management's estimates of the
revenue and results of operations of
the aforementioned division.
Reconciliation of GAAP Operating Cash Flow to Free Cash Flow
(dollars in thousands)
Three Months Ended March 31,
----------------------------
2015 2014
---- ----
(unaudited)
Net cash
provided
by
operating
activities $27,863 $19,375
Purchase
of
property
and
equipment (1,402) (1,873)
------ ------
Free cash
flow $26,461 $17,502
======= =======
Revenue and Reconciliation of Income (Loss) before Income Taxes to Adjusted EBITDA (Guidance)
(dollars in thousands)
Forecasted amounts for the three and twelve month periods ending June 30, 2015 and December 31, 2015 are based on the mid-points of the range of guidance provided herein (1)
Three Months Ended June 30, Full Year December 31,
--------------------------- ----------------------
2015 (1) 2014 (1) 2015 (1) 2014 (1)
------- ------- ------- -------
(unaudited) (unaudited)
Revenue $89,500 $78,804 $374,500 $325,150
------- ------- -------- --------
(Loss) income
before income
taxes (3,900) (1,246) (1,900) 1,120
Amortization of
intangible assets 3,200 1,488 12,000 5,937
Stock-based
compensation 10,000 8,994 49,600 41,677
Costs related to
acquisitions,
restructuring and
other infrequently
occurring items 6,000 825 9,000 5,584
Settlement of
litigation, net (600) 2,940 (800) 2,700
Depreciation 4,800 4,282 20,500 17,599
Interest and other
expense, net 500 302 1,600 1,241
Adjusted EBITDA $20,000 $17,585 $90,000 $75,858
======= ======= ======= =======
Adjusted EBITDA
margin (%) 22% 22% 24% 23%
Estimated Q2 2015 and full year
2015 non-GAAP (Diluted) share
count is 41.0 million and 39.5
million, respectively.
(1) The three and twelve month
periods ending June 30, 2015
and 2014 and December 31, 2015
and 2014, respectively, have
been adjusted to exclude the
results of operations from the
Mobile Operator Analytics
Division.
GAAP pre-tax Reconciliation of Revenue and Adjusted EBITDA to Pro Forma Revenue and Pro Forma Adjusted
EBITDA (Guidance) (1)
(dollars in thousands)
Three Months Ended June 30,
---------------------------
2015 2014
---- ----
(unaudited)
Adjustment to Adjustment to
Exclude Exclude
Mobile Mobile
Operator Operator
Analytics Analytics
Pre- Division (1) Pro Forma As Division (1) Pro Forma
Adjusted Reported
Revenue $89,750 (250) $89,500 $80,013 (1,209) $78,804
Adjusted
EBITDA(2) $18,900 1,100 $20,000 $16,709 876 $17,585
Adjusted
EBITDA
margin
(%) 21% (440)% 22% 21% (72)% 22%
Twelve Months Ended December 31,
--------------------------------
2015 2014
---- ----
(unaudited)
Adjustment to Adjustment to
Exclude Exclude
Mobile Mobile
Operator Operator
Analytics Analytics
Pre- Division (1) Pro Forma Pre- Division (1) Pro Forma
Adjusted Adjusted
Revenue $378,000 (3,500) $374,500 $329,151 (4,001) $325,150
Adjusted
EBITDA(2) $85,200 4,800 $90,000 $71,221 4,637 $75,858
Adjusted
EBITDA
margin
(%) 23% (137)% 24% 22% (116)% 23%
(1) Pro forma revenue and pro
forma Adjusted EBITDA are
adjusted to exclude the
company's Mobile Operator
Analytics Division.
(2) See reconciliation of
Adjusted EBITDA.
Logo - http://photos.prnewswire.com/prnh/20080115/COMSCORELOGO
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/comscore-inc-reports-first-quarter-2015-results-300077495.html
SOURCE comScore, Inc.
