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CI

COMSCORE, INC. (SCOR)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 revenue was $94.9M, essentially flat year over year (-0.2%) and up sequentially; adjusted EBITDA improved to $17.2M (18.1% margin) while GAAP net income was $3.1M, driven partly by the absence of prior-year goodwill impairment .
  • Cross-Platform revenue grew 21.7% YoY in Q4 (to $14.2M), offsetting softness in Syndicated Audience and custom work; management highlighted “more dollars in advertising spend” on Comscore currency than any prior quarter, signaling traction in measurement adoption .
  • 2025 guidance: revenue $360–$370M and adjusted EBITDA margin 12–15%; Q1 2025 revenue guided roughly flat YoY with growth resuming thereafter as cross-platform momentum builds .
  • Balance sheet actions: secured $60M Blue Torch facility, reduced aged AP (~$18M in Q4), and amended Charter data license (estimated at least $35M cash fee reduction over the remaining term) to improve liquidity and cost structure .
  • Consensus estimates (S&P Global) were unavailable at time of analysis due to request limits; therefore, estimate vs. actual comparisons are not shown (values would be sourced from S&P Global if available).

What Went Well and What Went Wrong

  • What Went Well

    • Cross-platform strength: Q4 Cross-Platform revenue +21.7% YoY; Proximic and CCR scaled within programmatic environments; CEO: “more dollars … on Comscore currency … than at any other point” .
    • Profitability and margins improved: Adjusted EBITDA rose to $17.2M (18.1% margin) in Q4, up from $16.4M (17.3%) in Q4’23; GAAP net income of $3.1M vs. loss prior year (benefit from lack of goodwill charge) .
    • Liquidity/cost structure progress: New $60M facility, AP reduction (~$18M), and Charter amendment (≥$35M cash license fee reduction remaining term) bolster flexibility and unit economics .

  • What Went Wrong

    • Syndicated Audience and custom solutions softness persisted, pressuring top-line growth; management expects national TV and syndicated digital to remain challenged and custom demand unpredictable .
    • Core operating expenses rose 7.6% YoY in Q4 (higher compensation and data licensing), partially linked to delivering top-line performance and data costs .
    • FX headwinds to adjusted EBITDA in Q4: FX-adjusted EBITDA $14.2M vs. $18.7M prior year, despite non-FX adjusted EBITDA improvement .

Financial Results

MetricQ2 2024Q3 2024Q4 2024
Revenue ($M)$85.8 $88.5 $94.9
GAAP Net Income (Loss) ($M)$(1.7) $(60.6) $3.1
Net Loss per Common Share (Basic & Diluted)$(1.19) $(12.79) $(0.27)
Net Income (Loss) Margin %(2.0)% (68.5)% 3.3%
Adjusted EBITDA ($M)$6.91 $10.15 $17.17
Adjusted EBITDA Margin %8.1% 11.5% 18.1%

Segment revenue ($M)

SegmentQ2 2024Q3 2024Q4 2024
Syndicated Audience$64.19 $65.04 $66.82
Cross-Platform$8.00 $10.23 $14.22
Research & Insight Solutions$13.65 $13.21 $13.90
Total Revenue$85.84 $88.48 $94.94

KPIs and Operating Drivers

KPIQ2 2024Q3 2024Q4 2024
Cross-Platform revenue ($M)$8.00 $10.23 $14.22
Movies revenue ($M)$9.3 (footnote) $9.3 (footnote) $9.4 (footnote)
Core Operating Expenses ($M)$86.5 $82.9 $90.3
FX-Adjusted EBITDA ($M)$7.16 $12.37 $14.25

Notes: Movies revenue from footnotes in segment tables .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY 2024$350–$360M (Aug-6) $351–$355M (Nov-12) Tightened range (midpoint slightly higher)
Adjusted EBITDA MarginFY 2024≥10% (Aug-6) ≥10% (Nov-12) Maintained
RevenueFY 2025—$360–$370M (Mar-4) New FY guide
Adjusted EBITDA MarginFY 2025—12%–15% (Mar-4) New FY guide
RevenueQ1 2025—Roughly flat vs. Q1 2024 New quarterly color

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2024, Q3 2024)Current Period (Q4 2024)Trend
Cross-Platform growth (Proximic, CCR)Q2: CCR adoption slower; integrated into The Trade Desk; YouTube measurement launched; Proximic scaling but Oracle shutdown caused short-term dip . Q3: Cross-Platform +33.5% YoY; Predictive Audiences doubled; CCR campaigns >5x since start of year; Meta integration announced .Q4: Cross-Platform +21.7% YoY; scaling in programmatic; CEO expects high double-digit growth in 2025 .Improving adoption and growth momentum.
Currency adoption & agency holdcosQ2: Preferred partnerships “in the works” . Q3: New multi-year commitment from a major holdco; key wins .Q4: “More dollars … on Comscore currency than any other quarter”; multi-year agency contracts driving adoption .Accelerating usage and validation.
Financing & liquidityQ2: Evaluating alternatives, paid down facility . Q3: Repaid revolver; maturity extended for LCs; alternatives under evaluation .Q4: Secured $60M Blue Torch facility; AP reduction; ended cash, cash equivalents & restricted cash $33.5M .Liquidity strengthened; cost flexibility improved.
Data cost/Charter agreementQ2: Pressure from data costs implied in opex . Q3: Opex discipline .Q4: Amended Charter data license, estimated ≥$35M cash fee reduction over remaining term .Structural cost relief over time.
Privacy/ID-free solutionsQ2: Oracle exit disrupted Q2, but Proximic ID-free viewed as catalyst . Q3: Privacy-forward ID-free adoption accelerating .Q4: Management cites privacy regulation tailwinds; Proximic ID-free continues to scale .Favorable structural tailwind.
Product roadmapQ2: CCR integrated into The Trade Desk; YouTube measurement across devices . Q3: CCR integration with Meta .Q4: Launched Comscore Content Measurement (CCM) in January 2025; early enterprise wins, strong pipeline .Broadening cross-platform toolkit.

Management Commentary

  • CEO (press release): “We made solid progress in Q4 … Proximic continued to accelerate, and our cross-platform measurement products also scaled nicely within programmatic advertising… position us well for growth in 2025.” .
  • CEO (call): “We saw more advertising dollars transacting on Comscore’s measurement currency across local and national TV than at any other point in the company’s history.” .
  • CFO (call): “Based on current trends… total revenue for 2025 will be between $360 million and $370 million… adjusted EBITDA margin… between 12% and 15%… Q1 2025 roughly flat YoY, growth in subsequent quarters.” .
  • CFO (call) on liquidity/costs: New $60M financing; AP reduced by ~ $18M in Q4; Charter fee structure change estimated ≥$35M cash savings over remaining term .

Q&A Highlights

  • Macro and demand cadence: Management sees good momentum exiting Q4; Q1 is seasonally low for digital ad spend and that is reflected in guidance; no specific macro pullback observed exiting 2024 .
  • Proximic/ID-free positioning: Heightened uncertainty and privacy regulation (state-level) favor ID-free solutions; Proximic’s ID-free offering continues to scale in this backdrop .
  • Currency adoption drivers: Combination of market desire for innovation in TV currency and new multi-year agency contracts is driving increased usage; management expects continuation through 2025 .

Estimates Context

  • Wall Street consensus estimates (S&P Global) were unavailable due to system request limits at the time of analysis; as a result, we are not presenting vs-consensus comparisons for revenue or EPS this quarter. If/when available, we would anchor estimate comparisons to S&P Global consensus as per standard practice.

Key Takeaways for Investors

  • Cross-platform flywheel turning: Cross-Platform revenue rose sequentially each quarter in 2024 (Q2→Q3→Q4), with Q4 +21.7% YoY, and management guiding high double-digit growth in 2025; currency adoption is building via agency contracts and programmatic integrations .
  • Margin trajectory positive: Adjusted EBITDA margin expanded from 8.1% (Q2) to 18.1% (Q4) as mix shifted to higher-margin cross-platform solutions and cost actions took hold; 2025 guide implies continued expansion (12–15%) .
  • Liquidity and vendor cost relief de-risk execution: $60M Blue Torch facility, AP catch-up, and Charter amendment (≥$35M cash fee reduction remaining term) provide flexibility to invest behind growth while easing cash outflows .
  • Legacy headwinds persist but manageable: National TV and syndicated digital remain pressured; custom demand remains unpredictable. Guidance embeds conservative assumptions, with growth expected from cross-platform and local TV .
  • Near-term setup: Q1 2025 revenue roughly flat YoY, with growth resuming from Q2 onwards as CCR integrations and agency currency adoption translate into revenue; monitor CCR platform traction and additional holdco wins as catalysts .

Appendix: Additional Context from Q4 Press Releases (Q4 2024)

  • Gray Media multi-year expansion: Gray to adopt CCR starting in 2025; enhanced local currency footprint and advanced audience tools broaden use-cases for advertisers .
  • Patent on Personifying Viewership Data: Supports person-level demographic estimates from household big data, bolstering accuracy in cross-platform/TV solutions in a privacy-forward design .