Comscore reports Q2 2024 results: revenue down

Comscore this week released its financial results for the second quarter of 2024, revealing a decline in revenue and adjusted EBITDA compared to the same period in 2023. The company, known for its media measurement and analytics services, reported these figures during its earnings call, shedding light on the challenges faced by the media measurement industry.

According to the earnings report, Comscore's revenue for Q2 2024 stood at $85.8 million, marking an 8.4% decrease from $93.7 million in Q2 2023. This decline was primarily attributed to lower revenue from syndicated audience offerings, particularly in national TV and syndicated digital products. The company's Content & Ad Measurement segment, which includes these offerings, saw a 6.7% year-over-year decrease.

Comscore's adjusted EBITDA for the quarter was $6.9 million, down 22.8% from $8.9 million in Q2 2023. The adjusted EBITDA margin also decreased, falling from 9.6% to 8.1%. Despite these declines, Comscore's CEO, Jon Carpenter, emphasized the company's ongoing efforts to transform its business model and focus on emerging areas of media measurement.

The earnings report highlighted several factors contributing to the company's performance. Comscore's legacy media channels, including syndicated digital and TV products, continued to face challenges. The company also experienced a slower-than-anticipated ramp-up of its cross-platform offerings, particularly its Comscore Campaign Ratings (CCR) product.

One notable development was the impact of Oracle's announcement to shut down its ad business. This decision affected Comscore's Proximic revenue, which is integrated into Oracle's ad platform. While this presented a short-term setback, Comscore views it as a potential opportunity for future growth, as it may lead to more direct client relationships.

The company's movies business showed resilience, with revenue growing by 5.3% year-over-year. However, this growth was not sufficient to offset declines in other areas.

In response to these results, Comscore has revised its full-year guidance for 2024. The company now expects revenue to be between $350 million and $360 million, representing a decline of 3% to 6% compared to 2023. Comscore also adjusted its target for the adjusted EBITDA margin, now aiming for a minimum of 10%.

Despite the challenges, Comscore remains focused on its strategic direction. The company is investing in cross-platform capabilities, expanding CCR integrations, and developing new products such as cross-platform content planning and AI search measurement. Carpenter expressed confidence in the company's ability to return to growth, potentially as early as the fourth quarter of 2024.

The media measurement industry has been facing significant disruption in recent years. Factors such as the shift to streaming, changes in consumer behavior, and the evolving digital advertising landscape have put pressure on traditional measurement models. Comscore's results reflect these industry-wide challenges and the company's efforts to adapt to the changing market dynamics.

Comscore's focus on cross-platform measurement and activation solutions aligns with broader industry trends. As advertisers and media companies seek more comprehensive and accurate measurement across various platforms, companies like Comscore are working to develop new methodologies and technologies to meet these needs.

The company's balance sheet has also seen some improvements. Comscore paid down $6 million of its credit facility, leaving $10 million outstanding. The company also settled $33 million in accrued dividends through the issuance of preferred shares, reducing its special dividend threshold to approximately $47 million.

Looking ahead, Comscore anticipates continued pressure on its syndicated audience revenue but expects growth in its cross-platform offerings. The company projects its cross-platform revenue to increase by approximately 30% in the second half of 2024.

The media and advertising industries will be watching closely to see how Comscore's transformation efforts play out in the coming quarters. The company's ability to successfully pivot towards emerging measurement needs while managing the decline in legacy products will be crucial for its long-term success.

As the media landscape continues to evolve, companies like Comscore face both challenges and opportunities. The demand for accurate, comprehensive measurement across various platforms is likely to grow, but competition in this space is also intensifying. Comscore's performance in the coming quarters will provide further insight into the effectiveness of its strategic initiatives and its position within the changing media measurement industry.

Key Facts

Comscore's Q2 2024 revenue: $85.8 million (down 8.4% year-over-year)

Q2 2024 adjusted EBITDA: $6.9 million (down 22.8% year-over-year)

Revised full-year 2024 revenue guidance: $350 million to $360 million

New adjusted EBITDA margin target: Minimum 10%

Movies business revenue growth: 5.3% year-over-year

Cross-platform revenue projected growth for H2 2024: Approximately 30%

Outstanding credit facility balance: $10 million

Settled accrued dividends: $33 million

New special dividend threshold: Approximately $47 million