comScore (SCOR) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $88.5 million, down 2.8% year-over-year, with a net loss of $60.6 million due to a $63.0 million non-cash goodwill impairment charge.

• Cross-platform revenue grew 34% year-over-year, offsetting declines in legacy and custom digital products.

• Adjusted EBITDA was $10.1 million, down 24% year-over-year; FX adjusted EBITDA was $12.4 million, up 1%.

• Core operating expenses decreased 3.9% year-over-year, mainly from lower employee compensation and cloud computing costs.

• The company issued 13.3 million shares of Preferred Stock in July 2024 to settle $32.8 million in deferred dividends.

Financial highlights

• Q3 2024 revenue was $88.5 million, down 2.8% year-over-year; net loss margin was (68.5)% compared to 2.9% in Q3 2023.

• Adjusted EBITDA margin was 11.5%, down from 14.7% in Q3 2023.

• Content and Ad Measurement revenue was $75.3 million, flat year-over-year; cross-platform revenue within this segment grew 33.5%.

• Research and Insight Solutions revenue declined 14% year-over-year to $13.2 million.

• Cash, cash equivalents, and restricted cash totaled $20.2 million as of September 30, 2024.

Outlook and guidance

• Full-year 2024 revenue guidance is $351–$355 million; adjusted EBITDA margin expected to be at least 10%.

• Anticipates continued cross-platform revenue growth to offset declines in other segments.

• Expects momentum from local TV wins, agency relationships, and platform integrations to drive a return to revenue growth in 2025.

• Management expects continued softness in the advertising market through the end of 2024 and into 2025, which may impact demand and liquidity.

• The company is evaluating alternative financing options as the Revolving Credit Agreement matures in early 2025.