Comscore Q2 Results Disappoint Despite Recent Wins

Comscore has reported financial results for the quarter ended June 30th, with revenue down 1% to $87.7m, and adjusted EBITDA of $2.6m, dropping sharply from $9.2m a year earlier. The firm says the positive results of recent partnerships and agreements will show up later in the year.

Shares in the company fell from just over $4 on Monday evening to just above $3 on Tuesday morning, as the news hit.

Comscore said revenue growth from increases in TV, custom marketing solutions and activation was offset by lower movie and syndicated digital revenue. Net loss was $18.5m, up from just $10.4m in Q2 2020.

Revenue from Ratings and Planning was down from $63.8m in Q2 2020 to $62.4m - the results of lower syndicated digital and cross-platform audience products offset by higher TV revenue, according to the firm - while Analytics and Optimization revenue rose by almost $1m to $17.8m, due to higher Lift and Survey deliveries, and a 65% increase for Activation. Movies Reporting and Analytics revenue was $7.5m, down from $7.9m a year earlier, but Comscore says as theater reopening 'began in earnest in major U.S. cities in the first quarter and in Europe in the second quarter', it believes this income has bottomed out and 'will continue to experience sequential quarterly increases throughout 2021'.

The company also reported expenses up sharply from $84.5m to $92.3m, primarily due to 'higher data costs and professional fees', but also noted that the comparatives were bad due to 'abnormally low' expenses in the second quarter of 2020 with temporary cost-cutting at the onset of the pandemic.

Full-year 2021 revenue and adjusted EBITDA margin are now expected to be at the lower end of the previously announced ranges - respectively 3% - 5% and 6% - 8%. Nevertheless Comscore points to a large number of partnerships and agreements in recent months - including those with Commerce Signals, Fox Corp and YouTube earlier this week - and says that despite starting slightly later than expected, over the long term these will generate higher revenue.

CEO Bill Livek (pictured) comments: 'This quarter we saw solid performance in many areas of our business, signing many new customers that we expect to increase revenue in the second half of the year. With movie theaters beginning to reopen, we expect to see a healthy rebound in that business as well over the coming quarters. Some of these new contracts and partnerships didn't have a revenue impact in the second quarter but will start in the second half of the year. As a result, we remain confident in our ability to grow revenue as the year progresses'.

Web site: www.comscore.com .