SCOR

COMSCORE INC

Communication Services | Micro Cap

-$0.29

EPS Forecast

$87.53

Revenue Forecast

The company already released most recent quarter's earnings. We will publish our AI's next quarter's forecast around 2024-09-30
EX-99.1 2 exhibit991pressrelease.htm EXHIBIT 99.1 Exhibit

Exhibit 99.1

image0a03.jpg
FOR IMMEDIATE RELEASE

Comscore Reports Fourth Quarter and Full Year 2019 Results
Q4 Syndicated digital revenue stabilized on a sequential basis
Q4 Local TV revenue up 35% year-over-year
Comscore announces measurement agreement with Comcast
RESTON, Va., February 27, 2020 - Comscore, Inc. (Nasdaq: SCOR), a trusted partner for planning, transacting, and evaluating media across platforms, today reported financial results for the quarter and full year ended December 31, 2019.
Fourth Quarter 2019 Financial Highlights
•
Revenue for the fourth quarter was $95.2 million compared to $109.3 million in the prior-year quarter
•
GAAP net loss of $21.4 million, or $(0.31) per share, compared to a net loss of $27.2 million, or $(0.46) per share in the year-ago quarter
•
Adjusted EBITDA for the fourth quarter was $5.5 million compared to $6.3 million in the prior-year quarter
Full-Year 2019 Financial Highlights
•
Revenue for 2019 was $388.6 million compared to $419.5 million in 2018
•
GAAP net loss of $339.0 million, or $(5.33) per share, which includes impairment charges of $241.6 million, compared to $159.3 million, or $(2.76) per share in 2018
•
Adjusted EBITDA of $6.2 million compared to $16.4 million in 2018
•
Cash, cash equivalents and restricted cash of $66.8 million compared to $50.2 million as of December 31, 2018
Recent Key Renewals, Partnerships and New Business Developments
•
Syndicated digital - Buzzfeed, iHeartMedia, Publishers Clearing House, Revolt Media and ViacomCBS
•
National TV - The Cowboy Channel and TargetSmart
•
Local TV - CBS Television, KRGV, Gray Television and Quincy Media
•
Movies - Paramount Pictures and Cinemex
"Our fourth-quarter results demonstrate that our turnaround plan is working. We are encouraged by our operating performance, particularly in syndicated digital which showed improvement in the quarter, and local TV," said Bill Livek, CEO and Executive Vice Chairman of Comscore. "We will continue our focus on managing expenses while we shift our efforts towards revenue growth. Energy and enthusiasm from our customers accelerated in the last three months, and we are executing on our plan to deliver products that help our customers achieve better business outcomes."
"Today, we also are announcing a measurement agreement with Comcast that will greatly improve our direct measurement of television households across the U.S. It is a major step in our ongoing journey toward more precise measurement, helping us develop better products to serve our customers and drive revenue growth in the coming years," Livek concluded.



Fourth Quarter Summary Results
Total revenue in the fourth quarter of 2019 was $95.2 million, down from $109.3 million in the year-ago quarter.
Ratings and Planning revenue was $66.8 million in the fourth quarter of 2019, compared to $74.8 million in the year-ago quarter. The decrease compared to the same period in the prior year was the result of a decline in revenue from syndicated digital products and national TV. This was partially offset by local TV revenue, which increased 35% from the year-ago quarter.
Analytics and Optimization revenue was $17.7 million in the fourth quarter of 2019, compared to $23.9 million in the year-ago quarter. The decrease was related to lower digital custom marketing solution sales and Lift revenue compared to the prior-year period. This decrease was offset, in part, by higher revenue from Activation products.
Movies Reporting and Analytics revenue was $10.7 million in the fourth quarter of 2019, compared to $10.6 million in the year-ago quarter.
Net loss for the fourth quarter of 2019 was $21.4 million, or $(0.31) per share, compared to a net loss of $27.2 million, or $(0.46) per share reported in the year-ago quarter.
For the fourth quarter of 2019, non-GAAP adjusted EBITDA was $5.5 million, compared to $6.3 million in the year-ago quarter. Adjusted EBITDA excludes stock-based compensation expense; impairment charges; settlement of certain litigation; investigation, litigation and audit-related expense; restructuring expense; change in fair value of financing derivatives, warrants liability and equity securities investment; and other items as presented in the accompanying tables.
Full-Year Summary Results
Total revenue for the full year of 2019 was $388.6 million compared to $419.5 million in 2018.
Ratings and Planning revenue was $271.6 million compared to $285.4 million in the prior year, primarily driven by a decrease in revenue from syndicated digital products and national TV products, partially offset by higher local TV and cross-platform revenue.
Analytics and Optimization revenue was $74.7 million compared to $92.4 million in the prior year, primarily driven by lower sales and deliveries of digital custom solutions, survey and Lift products in 2019. The decrease was offset by increased revenue from Activation products, which continued to experience year-over-year growth.
Movies Reporting and Analytics revenue was $42.3 million compared to $41.7 million in the prior year due to growth in new product revenue.
GAAP net loss for the full year 2019 was $339.0 million, or $(5.33) per share, compared to a net loss of $159.3 million or $(2.76) per share in 2018. In 2019, the company took non-cash impairment charges totaling $241.6 million relating to an intangible asset and goodwill.
For the full year 2019, the company generated $6.2 million of non-GAAP adjusted EBITDA compared to $16.4 million in 2018.
Balance Sheet and Liquidity

As of December 31, 2019, cash, cash equivalents and restricted cash totaled $66.8 million, including $20.2 million in restricted cash. Total cash increased from $58.5 million as of September 30, 2019 due to $12.7 million in net proceeds from the issuance of a collateralized term note during the fourth quarter. Total debt principal as of December 31, 2019, including $204.0 million of senior secured convertible notes, was $225.6 million.

2020 Outlook




Based on current trends and expectations, the company believes full-year 2020 revenue will be in the range of $390 million to $410 million, driven by growth in TV and addressable advertising, and a slower decline to stabilization in syndicated digital revenue. The company expects an adjusted EBITDA margin of 7% to 10% of revenue for the full year 2020, based on the impact of 2019 cost reductions and a continued focus on expenses.
The company does not provide GAAP net income (loss) on a forward-looking basis because it is unable to predict with reasonable certainty its future stock-based compensation expense, litigation and restructuring expense, fair value adjustments for financing derivatives and warrants, variable interest 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, the company is 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, Thursday, February 27 at 5:00 p.m. ET
Management will provide commentary on the company's results in a conference call today at 5:00 p.m. ET. To access the call, dial +1 844-229-7593 (domestic) or +1 314-888-4258 (international) and reference conference ID # 3437876. 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 (domestic) or +1 404-537-3406 (international) with passcode # 3437876. The replay will also be available via webcast at ir.comscore.com/events-presentations.
About Comscore
Comscore (Nasdaq: SCOR) 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, Comscore's expectations, forecasts, plans and opinions regarding management's turnaround plan, improvement in the company's syndicated digital business, expense management, revenue growth, product development and delivery, the impact of the company's measurement agreement with Comcast, and 2020 revenue and adjusted EBITDA margin. These statements involve risks and uncertainties that could cause actual events to differ materially from expectations, including, but not limited to, Comscore's ability to achieve its expected strategic, financial and operational plans. For additional discussion of risk factors, please refer to Comscore's respective 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 our 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 herein non-GAAP net income (loss), adjusted EBITDA, adjusted EBITDA margin and non-GAAP expense, 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 measures. These reconciliations should be carefully evaluated.
Media
Neil Ripley
Comscore, Inc.
646-746-0579
press@comscore.com
Investors
Christopher Ferris
Comscore, Inc.
212-277-6547
cferris@comscore.com



COMSCORE, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
 
As of
 
As of
 
December 31, 2019
 
December 31, 2018
 
 
 
 
Assets
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
46,590

 
$
44,096

Restricted cash
20,183

 
6,102

Accounts receivable, net of allowances of $1,919 and $1,597, respectively
71,853

 
75,609

Prepaid expenses and other current assets
15,357

 
19,972

Total current assets
153,983

 
145,779

Property and equipment, net
31,693

 
27,339

Operating right-of-use assets
36,689

 
—

Other non-current assets
2,979

 
8,898

Deferred tax assets
2,374

 
3,991

Intangible assets, net
79,559

 
126,945

Goodwill
416,418

 
641,191

Total assets
$
723,695

 
$
954,143

Liabilities and Stockholders' Equity
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
44,804

 
$
29,836

Accrued expenses
55,507

 
58,140

Accrued litigation settlements
3,575

 
3,500

Contract liability
58,158

 
64,189

Customer advances
9,886

 
6,688

Warrant liability
7,725

 
—

Current operating lease liabilities
6,764

 
—

Deferred rent
—

 
1,884

Other current liabilities
3,818

 
4,699

Total current liabilities
190,237

 
168,936

Secured term note
12,463

 
—

Financing derivatives
21,587

 
26,100

Senior secured convertible notes
184,075

 
177,342

Non-current operating lease liabilities
42,497

 
—

Deferred rent
—

 
10,304

Deferred tax liabilities
287

 
5,527

Other non-current liabilities
13,575

 
14,367

Total liabilities
464,721

 
402,576

Commitments and contingencies
 
 
 
Stockholders’ equity:
 
 
 
Preferred stock, $0.001 par value per share; 5,000,000 shares authorized at December 31, 2019 and 2018; no shares issued or outstanding as of December 31, 2019 or 2018
—

 
—

Common stock, $0.001 par value per share; 150,000,000 shares authorized as of December 31, 2019 and 2018; 76,829,926 shares issued and 70,065,130 shares outstanding as of December 31, 2019, and 66,154,626 shares issued and 59,389,830 shares outstanding as of December 31, 2018
70

 
59

Additional paid-in capital
1,609,358

 
1,561,208

Accumulated other comprehensive loss
(12,333
)
 
(10,621
)
Accumulated deficit
(1,108,137
)
 
(769,095
)
Treasury stock, at cost, and 6,764,796 shares as of December 31, 2019 and 2018
(229,984
)
 
(229,984
)
Total stockholders’ equity
258,974

 
551,567

Total liabilities and stockholders’ equity
$
723,695

 
$
954,143





COMSCORE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(In thousands, except share and per share data)
 
 
Years Ended December 31,
 
 
2019
 
2018
 
2017
Revenues (1)
 
$
388,645

 
$
419,482

 
$
403,549

 
 
 
 
 
 
 
Cost of revenues (1) (2) (3)
 
199,622

 
200,220

 
193,605

Selling and marketing (1) (2) (3)
 
89,145

 
108,395

 
130,509

Research and development (1) (2) (3)
 
61,802

 
76,979

 
89,023

General and administrative (1) (2) (3)
 
66,419

 
84,535

 
74,651

Investigation and audit related (1)
 
4,305

 
38,338

 
83,398

Amortization of intangible assets
 
30,076

 
32,864

 
34,823

Impairment of goodwill
 
224,272

 
—

 
—

Impairment of intangible asset (1)
 
17,308

 
—

 
—

Settlement of litigation, net
 
2,900

 
5,250

 
82,533

Restructuring (3)
 
3,263

 
11,837

 
10,510

Total expenses from operations
 
699,112

 
558,418

 
699,052

Loss from operations
 
(310,467
)
 
(138,936
)
 
(295,503
)
Interest expense, net (1)
 
(31,526
)
 
(16,465
)
 
(661
)
Other income (expense), net
 
1,654

 
(1,464
)
 
15,205

Gain (loss) from foreign currency transactions
 
336

 
1,303

 
(3,151
)
Loss before income taxes
 
(340,003
)
 
(155,562
)
 
(284,110
)
Income tax benefit (provision)
 
1,007

 
(3,706
)
 
2,717

Net loss
 
$
(338,996
)
 
$
(159,268
)
 
$
(281,393
)
Net loss per common share:
 
 
 
 
 
 
Basic and diluted
 
$
(5.33
)
 
$
(2.76
)
 
$
(4.90
)
Weighted-average number of shares used in per share calculation - Common Stock:
 
 
 
 
 
 
Basic and diluted
 
63,590,882

 
57,700,603

 
57,485,755

Comprehensive loss:
 
 
 
 
 
 
Net loss
 
$
(338,996
)
 
$
(159,268
)
 
$
(281,393
)
Other comprehensive (loss) income:
 
 
 
 
 
 
Foreign currency cumulative translation adjustment
 
(1,712
)
 
(4,397
)
 
6,168

Other
 
—

 
—

 
28

Total comprehensive loss
 
$
(340,708
)
 
$
(163,665
)
 
$
(275,197
)
 
 
 
 
 
 
 
(1) Transactions with related parties are included in the line items above.
(2) Excludes amortization of intangible assets, which is presented separately in the Consolidated Statements of Operations and Comprehensive Loss.
(3) Stock-based compensation expense is included in the line items above as follows:
 
 
Years Ended December 31,
 
 
2019
 
2018 (1)
 
2017
Cost of revenues
 
$
1,852

 
$
6,349

 
$
1,766

Selling and marketing
 
3,615

 
9,452

 
5,247

Research and development
 
1,981

 
6,580

 
2,270

General and administrative
 
9,247

 
14,770

 
8,031

Restructuring
 
(137
)
 
468

 
—

Total stock-based compensation expense
 
$
16,558

 
$
37,619

 
$
17,314

 
 
 
 
 
 
 
(1) Stock-based compensation expense in 2018 includes $28.5 million for awards granted under our 2018 Equity and Incentive Compensation Plan, which was approved by our stockholders in May 2018. We did not grant any stock-based awards in 2017, as we were not current in our SEC reporting obligations.



COMSCORE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
 
Years Ended December 31,
 
2019
 
2018
 
2017
Operating activities:
 
 
 
 
 
Net loss
$
(338,996
)
 
$
(159,268
)
 
$
(281,393
)
Adjustments to reconcile net loss to net cash used in operating activities:
 
 
 
 
 
Depreciation
12,778

 
17,259

 
23,339

Non-cash operating lease expense
5,369

 
—

 
—

Amortization expense of finance leases
2,413

 
—

 
—

Amortization of intangible assets
30,076

 
32,864

 
34,823

Impairment of goodwill
224,272

 
—

 
—

Impairment of intangible asset
17,308

 
—

 
—

Provision for bad debts
727

 
966

 
983

Stock-based compensation
16,558

 
37,619

 
17,314

Deferred tax (benefit) provision
(3,727
)
 
2,019

 
(3,203
)
Change in fair value of financing derivatives
(5,100
)
 
14,226

 
—

Change in fair value of warrant liability
2,411

 
—

 
—

Change in fair value of investment in equity securities
2,324

 
(1,443
)
 
—

Non-cash interest expense on senior secured convertible notes (related party)
17,374

 
—

 
—

Accretion of debt discount
6,242

 
4,812

 
—

Amortization of deferred financing costs
1,078

 
955

 
—

Gain on forgiveness of obligation
—

 
—

 
(4,000
)
Accrued litigation settlements to be settled in Common Stock
—

 
—

 
90,800

Other
(2
)
 
568

 
192

Changes in operating assets and liabilities:
 
 
 
 
 
Accounts receivable
2,738

 
4,707

 
14,529

Prepaid expenses and other assets
2,198

 
(4,456
)
 
4,067

Insurance recoverable on litigation settlements
—

 
10,000

 
(37,232
)
Accounts payable, accrued expenses, and other liabilities
10,438

 
(4,955
)
 
85,001

Contract liability and customer advances
(3,477
)
 
(30,013
)
 
(2,638
)
Deferred rent
—

 
1,565

 
1,013

Current operating lease liability
(7,638
)
 
—

 
—

Net cash used in operating activities
(4,636
)
 
(72,575
)
 
(56,405
)
 
 
 
 
 
 
Investing activities:
 
 
 
 
 
Sales of marketable securities
3,776

 
—

 
28,436

Purchases of property and equipment
(2,736
)
 
(4,206
)
 
(10,182
)
Capitalized internal-use software costs
(11,500
)
 
(9,608
)
 
—

Net cash (used in) provided by investing activities
(10,460
)
 
(13,814
)
 
18,254

 
 
 
 
 
 
Financing activities:
 
 
 
 
 
Proceeds from borrowings on senior secured convertible notes (related party)
—

 
100,000

 
—

Debt issuance costs
—

 
(5,146
)
 
—

Proceeds from secured term note
13,000

 
—

 
—

Secured term note issuance costs
(350
)
 
—

 
—

Proceeds from private placement, net of issuance costs paid
19,752

 
—

 
—

Financing proceeds received on subscription receivable (related party)
—

 
9,679

 
11,012

Proceeds from sale-leaseback financing transaction
4,252

 
—

 
—

Proceeds from the exercise of stock options
1,191

 
2,855

 
—

Payments for taxes related to net share settlement of equity awards
(1,267
)
 
(5,263
)
 
(1,514
)
Principal payments on finance leases
(2,535
)
 
—

 
—

Principal payments on capital lease and software license arrangements
(2,070
)
 
(9,006
)
 
(17,016
)
Net cash provided by (used in) financing activities
31,973

 
93,119

 
(7,518
)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
(302
)
 
(1,657
)
 
2,453

Net increase (decrease) in cash, cash equivalents and restricted cash
16,575

 
5,073

 
(43,216
)



Cash, cash equivalents and restricted cash at beginning of period
50,198

 
45,125

 
88,341

Cash, cash equivalents and restricted cash at end of period
$
66,773

 
$
50,198

 
$
45,125

 
 
 
 
 
 
 
As of December 31,
 
2019

2018

2017
Cash and cash equivalents
$
46,590

 
$
44,096

 
$
37,859

Restricted cash
20,183

 
6,102

 
7,266

Total cash, cash equivalents and restricted cash
$
66,773

 
$
50,198

 
$
45,125




Reconciliation of Non-GAAP Financial Measures
The following table presents a reconciliation of net loss (GAAP) to adjusted EBITDA for each of the periods identified:
 
Years Ended December 31,
 
2019
 
2018
 
2017
(In thousands)
(Unaudited)

(Unaudited)

(Unaudited)
Net loss (GAAP)
$
(338,996
)
 
$
(159,268
)
 
$
(281,393
)

 
 
 
 
 
Income tax (benefit) provision
(1,007
)
 
3,706

 
(2,717
)
Interest expense, net
31,526

 
16,465

 
661

Depreciation
12,778

 
17,259

 
23,339

Amortization expense of finance leases
2,413

 
—

 
—

Amortization of intangible assets(3)
30,076

 
32,864

 
34,823

EBITDA
(263,210
)
 
(88,974
)
 
(225,287
)
 
 
 
 
 
 
Adjustments:
 
 
 
 
 
Stock-based and expected awards compensation expense(3)
16,695

 
37,151

 
34,261

Investigation and audit related
4,305

 
38,338

 
83,398

Settlement of certain litigation, net(2)
2,900

 
5,250

 
82,533

Restructuring
3,263

 
11,837

 
10,510

Impairment of goodwill
224,272

 
—

 
—

Impairment of intangible asset
17,308

 
—

 
—

Other expense (income), net (1)
682

 
12,783

 
(4,125
)
Adjusted EBITDA
$
6,215

 
$
16,385

 
$
(18,710
)
(1) In 2019 and 2018, adjustments to other income (expense), net, reflect non-cash changes in the fair value of financing derivatives, warrants liability and equity securities investment included in other income (expense), net and certain legal expenses defined by our senior secured convertible notes (the "Notes") and classified as general and administrative expenses in the Consolidated Statements of Operations and Comprehensive Loss. Additionally, we recorded transaction costs related to the issuance of warrants, which costs were allocated to the warrants liability and recorded in general and administrative expenses in the Consolidated Statements of Operations and Comprehensive Loss. The remaining transaction costs were recorded in additional paid-in capital in the Consolidated Balance Sheets.
(2) Settlement of certain litigation, net includes settlement amounts incurred for certain legal proceedings defined by the Notes, which amounts are classified as general and administrative expenses in the Consolidated Statements of Operations and Comprehensive Loss.
(3) 2017 includes $16.9 million related to a stock-based retention program that was settled in cash for employees who departed prior to issuance of equity.



The following tables present a reconciliation of net loss (GAAP) to non-GAAP net loss for each of the periods identified:

 
Years Ended December 31,
 
2019
 
2018
 
2017
(In thousands)
(Unaudited)
 
(Unaudited)
 
(Unaudited)
Net loss (GAAP)
$
(338,996
)
 
$
(159,268
)
 
$
(281,393
)
 
 
 
 
 
 
Adjustments:
 
 
 
 
 
Stock-based and expected awards compensation expense(4)
16,695

 
37,151

 
34,261

Investigation and audit related
4,305

 
38,338

 
83,398

Amortization of intangible assets(3)
30,076

 
32,864

 
34,823

Settlement of certain litigation, net(2)
2,900

 
5,250

 
82,533

Restructuring
3,263

 
11,837

 
10,510

Impairment of goodwill
224,272

 
—

 
—

Impairment of intangible asset
17,308

 
—

 
—

Other expense (income), net (1)
682

 
12,783

 
(4,125
)
Non-GAAP net loss
$
(39,495
)
 
$
(21,045
)
 
$
(39,993
)
(1) In 2019 and 2018, adjustments to other income (expense), net, reflect non-cash changes in the fair value of financing derivatives, warrants liability and equity securities investment included in other income (expense), net and certain legal expenses defined by the Notes and classified as general and administrative expenses in the Consolidated Statements of Operations and Comprehensive Loss. Additionally, we recorded transaction costs related to the issuance of warrants, which costs were allocated to the warrants liability and recorded in general and administrative expenses in the Consolidated Statements of Operations and Comprehensive Loss. The remaining transaction costs were recorded in additional paid-in capital in the Consolidated Balance Sheets.
(2) Settlement of certain litigation, net includes settlement amounts incurred for certain legal proceedings defined by the Notes, which amounts are classified as general and administrative expenses in the Consolidated Statements of Operations and Comprehensive Loss.
(3) In 2018, amortization of intangible assets was added as an adjustment in our calculation of non-GAAP net loss. Prior year non-GAAP net loss has been recast to include this adjustment, which is intended to better reflect our core operating performance.
(4) 2017 includes $16.9 million related to a stock-based retention program that was settled in cash for employees who departed prior to issuance of equity.
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, litigation and restructuring expense, fair value adjustments for financing derivatives and warrants, variable interest expense for outstanding senior secured convertible notes, 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, adjusted EBITDA margin or non-GAAP net loss to the most directly comparable GAAP measure, GAAP net income (loss), on a forward-looking basis.





Supplemental Non-GAAP Disclosure
The following tables present a reconciliation of certain non-GAAP expense line items (to be discussed on today's conference call) to the most directly comparable GAAP expense line items. GAAP expense line items have been adjusted to exclude the effects of stock-based compensation.
 
Years Ended December 31,
(In thousands)
2019
(Unaudited)
 
2018
(Unaudited)
 
As reported (GAAP)
 
Less: stock-based compensation
 
As adjusted (non-GAAP)
 
% of GAAP Revenue
 
As reported (GAAP)
 
Less: stock-based compensation
 
As adjusted (non-GAAP)
 
% of GAAP Revenue
Revenues
$
388,645

 
 
 
 
 
100.0
%
 
$
419,482

 
 
 
 
 
100.0
%
Cost of revenues
199,622

 
$
1,852

 
$
197,770

 
50.9
%
 
200,220

 
$
6,349

 
$
193,871

 
46.2
%
Gross profit
189,023

 
(1,852
)
 
190,875

 
49.1
%
 
219,262

 
(6,349
)
 
225,611

 
53.8
%
Selling and marketing
89,145

 
3,615

 
85,530

 
22.0
%
 
108,395

 
9,452

 
98,943

 
23.6
%
Research and development
61,802

 
1,981

 
59,821

 
15.4
%
 
76,979

 
6,580

 
70,399

 
16.8
%
General and administrative
66,419

 
9,247

 
57,172

 
14.7
%
 
84,535

 
14,770

 
69,765

 
16.6
%
Restructuring
3,263

 
(137
)
 
3,400

 
0.9
%
 
11,837

 
468

 
11,369

 
2.7
%
We do not provide GAAP cost of revenues, selling and marketing, research and development, general and administrative, and restructuring expense on a forward-looking basis because we are unable to predict with reasonable certainty our future stock-based compensation expense without unreasonable effort. Stock-based compensation expense is uncertain, depends 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 non-GAAP operating expense to the most directly comparable GAAP measure on a forward-looking basis.





COMSCORE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Unaudited)
(In thousands, except share and per share data)
 
 
Three Months Ended December 31,
 
 
2019
 
2018
Revenues (1)
 
$
95,163

 
$
109,310

 
 
 
 
 
Cost of revenues (1) (2) (3)
 
46,831

 
51,994

Selling and marketing (1) (2) (3)
 
20,555

 
27,977

Research and development (1) (2) (3)
 
12,639

 
18,632

General and administrative (1) (2) (3)
 
15,878

 
18,468

Investigation and audit related (1)
 
129

 
892

Amortization of intangible assets
 
6,925

 
8,158

Restructuring (3)
 
(1,886
)
 
6,696

Total expenses from operations
 
101,071

 
132,817

Loss from operations
 
(5,908
)
 
(23,507
)
Interest expense, net (1)
 
(8,350
)
 
(4,754
)
Other expense, net
 
(4,967
)
 
(637
)
Gain (loss) from foreign currency transactions
 
(432
)
 
1,484

Loss before income taxes
 
(19,657
)
 
(27,414
)
Income tax (provision) benefit
 
(1,733
)
 
210

Net loss
 
$
(21,390
)
 
$
(27,204
)
Net loss per common share:
 
 
 
 
Basic and diluted
 
$
(0.31
)
 
$
(0.46
)
Weighted-average number of shares used in per share calculation - Common Stock:
 
 
 
 
Basic and diluted
 
69,644,437

 
59,116,831

Comprehensive loss:
 
 
 
 
Net loss
 
$
(21,390
)
 
$
(27,204
)
Other comprehensive income (loss):
 
 
 
 
Foreign currency cumulative translation adjustment
 
1,182

 
(1,608
)
Total comprehensive loss
 
$
(20,208
)
 
$
(28,812
)
 
 
 
 
 
(1) Transactions with related parties are included in the line items above.
(2) Excludes amortization of intangible assets, which is presented separately in the Consolidated Statements of Operations and Comprehensive Loss.
(3) Stock-based compensation expense is included in the line items above as follows:
 
 
Three Months Ended December 31,
 
 
2019
 
2018
Cost of revenues
 
$
(28
)
 
$
1,114

Selling and marketing
 
456

 
1,225

Research and development
 
118

 
1,127

General and administrative
 
1,879

 
2,494

Restructuring
 
—

 
468

Total stock-based compensation expense
 
$
2,425

 
$
6,428

 
 
 
 
 




Reconciliation of Non-GAAP Financial Measures
The following table presents a reconciliation of net loss (GAAP) to adjusted EBITDA for each of the periods identified:
 
Three Months Ended December 31,
 
2019
 
2018
(In thousands)
(Unaudited)
 
(Unaudited)
Net loss (GAAP)
$
(21,390
)
 
$
(27,204
)

 
 
 
Income tax expense (benefit)
1,733

 
(210
)
Interest expense, net
8,350

 
4,754

Depreciation
3,331

 
4,285

Finance lease amortization expense
439

 
—

Amortization of intangible assets
6,925

 
8,158

EBITDA
(612
)
 
(10,217
)
 
 
 
 
Adjustments:
 
 
 
Stock-based and expected awards compensation expense
2,425

 
5,960

Investigation and audit related
129

 
892

Restructuring
(1,886
)
 
6,696

Other expense, net (1)
5,413

 
2,949

Adjusted EBITDA
$
5,469

 
$
6,280

(1) In 2019, adjustments to other income (expense), net, reflect non-cash changes in the fair value of financing derivatives, warrants liability and equity securities investment included in other income (expense), net on our Consolidated Statements of Operations and Comprehensive Loss.
The following tables present a reconciliation of net loss (GAAP) to non-GAAP net loss for each of the periods identified:

 
Three Months Ended December 31,
 
2019
 
2018
(In thousands)
(Unaudited)
 
(Unaudited)
Net loss (GAAP)
$
(21,390
)
 
$
(27,204
)
 
 
 
 
Adjustments:
 
 
 
Stock-based and expected awards compensation expense
2,425

 
5,960

Investigation and audit related
129

 
892

Amortization of intangible assets
6,925

 
8,158

Restructuring
(1,886
)
 
6,696

Other expense, net (1)
5,413

 
2,949

Non-GAAP net loss
$
(8,384
)
 
$
(2,549
)
(1) In 2019, adjustments to other income (expense), net, reflect non-cash changes in the fair value of financing derivatives, warrants liability and equity securities investment included in other income (expense), net on our Consolidated Statements of Operations and Comprehensive Loss.







 
Three Months Ended
(In thousands)
March 31, 2019 (Unaudited)
 
June 30, 2019 (Unaudited)
 
September 30, 2019 (Unaudited)
 
December 31, 2019 (Unaudited)
Net loss (GAAP)
$
(27,514
)
 
$
(279,533
)
 
$
(10,559
)
 
$
(21,390
)
 
 
 
 
 
 
 
 
Adjustments:
 
 
 
 
 
 
 
Stock-based and expected awards compensation expense
6,953

 
4,304

 
3,013

 
2,425

Investigation and audit related
842

 
2,354

 
980

 
129

Amortization of intangible assets
8,105

 
8,076

 
6,970

 
6,925

Settlement of certain litigation, net(1)
—

 
5,000

 
(2,100
)
 
—

Restructuring
(70
)
 
2,949

 
2,270

 
(1,886
)
Impairment of goodwill
—

 
224,272

 
—

 
—

Impairment of intangible assets
—

 
17,308

 
—

 
—

Private placement issuance cost
—

 
1,154

 
(416
)
 
—

Other (income) expense, net (2)
(2,388
)
 
3,304

 
(6,385
)
 
5,413

Non-GAAP net loss
$
(14,072
)
 
$
(10,812
)
 
$
(6,227
)
 
$
(8,384
)
(1) Settlement of certain litigation, net includes settlement amounts incurred for certain legal proceedings defined by the Notes, which amounts are classified as general and administrative expenses in the Consolidated Statements of Operations and Comprehensive Loss.
(2) In 2019, adjustments to other income (expense), net, reflect non-cash changes in the fair value of financing derivatives, warrants liability and equity securities investment included in other income (expense), net on our Consolidated Statements of Operations and Comprehensive Loss.

 
Three Months Ended
(In thousands)
March 31, 2018 (Unaudited)
 
June 30, 2018 (Unaudited)
 
September 30, 2018 (Unaudited)
 
December 31, 2018 (Unaudited)
Net loss (GAAP)
$
(51,450
)
 
$
(55,977
)
 
$
(24,637
)
 
$
(27,204
)
 
 
 
 
 
 
 
 
Adjustments:
 
 
 
 
 
 
 
Stock-based and expected awards compensation expense
1,881

 
22,999

 
6,311

 
5,960

Investigation and audit related
31,867

 
4,883

 
696

 
892

Amortization of intangible assets
8,544

 
8,266

 
7,896

 
8,158

Settlement of certain litigation, net(1)
—

 
5,250

 
—

 
—

Restructuring
1,257

 
3,833

 
51

 
6,696

Other expense, net (2)
2,629

 
1,506

 
5,699

 
2,949

Non-GAAP net loss
$
(5,272
)
 
$
(9,240
)
 
$
(3,984
)
 
$
(2,549
)
(1) Settlement of certain litigation, net includes settlement amounts incurred for certain legal proceedings defined by the Notes, which amounts are classified as general and administrative expenses in the Consolidated Statements of Operations and Comprehensive Loss.
(2) In 2019, adjustments to other income (expense), net, reflect non-cash changes in the fair value of financing derivatives, warrants liability and equity securities investment included in other income (expense), net on our Consolidated Statements of Operations and Comprehensive Loss.






Supplemental Non-GAAP Disclosure
The following tables present a reconciliation of certain non-GAAP expense line items (to be discussed on today's conference call) to the most directly comparable GAAP expense line items. GAAP expense line items have been adjusted to exclude the effects of stock-based compensation.

 
Three Months Ended December 31,
(In thousands)
2019
(Unaudited)
 
2018
(Unaudited)
 
As reported (GAAP)
 
Less: stock-based compensation
 
As adjusted (non-GAAP)
 
% of GAAP Revenue
 
As reported (GAAP)
 
Less: stock-based compensation
 
As adjusted (non-GAAP)
 
% of GAAP Revenue
Revenues
$
95,163

 
 
 
 
 
100.0
 %
 
$
109,310

 
 
 
 
 
100.0
%
Cost of revenues
46,831

 
$
(28
)
 
$
46,859

 
49.2
 %
 
51,994

 
$
1,114

 
$
50,880

 
46.5
%
Gross profit
48,332

 
28

 
48,304

 
50.8
 %
 
57,316

 
(1,114
)
 
58,430

 
53.5
%
Selling and marketing
20,555

 
456

 
20,099

 
21.1
 %
 
27,977

 
1,225

 
26,752

 
24.5
%
Research and development
12,639

 
118

 
12,521

 
13.2
 %
 
18,632

 
1,127

 
17,505

 
16.0
%
General and administrative
15,878

 
1,879

 
13,999

 
14.7
 %
 
18,468

 
2,494

 
15,974

 
14.6
%
Restructuring
(1,886
)
 
—

 
(1,886
)
 
(2.0
)%
 
6,696

 
468

 
6,228

 
5.7
%



Revenues
Revenues from our three offerings of products and services are as follows:
 
Three Months Ended December 31,
 
 
 
 
(In thousands)
2019
(Unaudited)
 
% of Revenue
 
2018
(Unaudited)
 
% of Revenue
 
$ Variance
 
% Variance
Ratings and Planning
$
66,790

 
70.2
%
 
$
74,786

 
68.4
%
 
$
(7,996
)
 
(10.7
)%
Analytics and Optimization
17,722

 
18.6
%
 
23,901

 
21.9
%
 
(6,179
)
 
(25.9
)%
Movies Reporting and Analytics
10,651

 
11.2
%
 
10,623

 
9.7
%
 
28

 
0.3
 %
Total revenues
$
95,163

 
100.0
%
 
$
109,310

 
100.0
%
 
$
(14,147
)
 
(12.9
)%

 
Year Ended December 31,
 
 
 
 
(In thousands)
2019
 
% of Revenue
 
2018
 
% of Revenue
 
$ Variance
 
% Variance
Ratings and Planning
$
271,623

 
69.9
%
 
$
285,355

 
68.0
%
 
$
(13,732
)
 
(4.8
)%
Analytics and Optimization
74,725

 
19.2
%
 
92,380

 
22.0
%
 
(17,655
)
 
(19.1
)%
Movies Reporting and Analytics
42,297

 
10.9
%
 
41,747

 
10.0
%
 
550

 
1.3
 %
Total revenues
$
388,645

 
100.0
%
 
$
419,482

 
100.0
%
 
$
(30,837
)
 
(7.4
)%