Q2 2020 Comscore Inc Earnings Call
Welcome to the comp for second quarter 2025, <unk> results conference call, all participants will listen only mode.
Just because presentation there will be a question and answer session. The assets that you're doing a section. Please press star then one when you touched on telephone.
As a lot of this call is being recorded for replay purposes. It is now my pleasure to turn the call, but you know, it's pretty that Mr., Chris repairs director Investor Relations at Comscore. So you may begin.
Thank you operator.
Before we begin our prepared remarks, I'd like to remind old views of the following discussion contains forward looking statements.
These forward looking statements include comments about our plans expectations and prospects and are based on our view as of today August 10, 2020, we disclaim any duty or obligation to update our forward looking statements to accept new information after today's call.
We will be discussing non-GAAP measures during this call for which we have provided reconciliations in today's press release and on our website.
Actual results in future periods may differ materially from those currently expected because of a number of risks and uncertainties, including those related to the cobot 19 pandemic. It is economic impact.
These risks and uncertainties include those outlined in our 10-K 10-Q and other filings with the FCC, which you can find on our website or at Www Dot FCC Dot Gov.
I'll now turn the call over to Comscores, Chief Executive Officer Validic Bill.
Thank you Christian Thank you everyone for joining us today.
I'd like to start by providing you with a brief update on her strategic review, which has progressed. Despite some delays from a pandemic unrelated closures. We have conducted a fulsome process with our financial advisors and are in active discussions regarding strategic Walter.
Turning.
To maximize long term shareholder value.
We expect to conclude these discussions and announced by our third quarter earnings release, either our entry into a definitive agreement or our decision to continue our efforts.
Q on our strategic plan as an independent company.
Since March we made every effort to ensure that help in the safety of our employees, while providing great service to our customers are global workforce has successfully transitioned to working from home.
Our team has done an outstanding job, maintaining our chief it systems and our infrastructure our employees have risen to the challenge remains focused on her business plan and most importantly, our customers.
I'm truly proud with everyone's efforts and I'd like to again. This thing every employee in the hard work and dedication.
Considering the challenges presented by the global pandemic, we had solid quarter.
Revenue in some areas up our business impacted by cobot other areas experienced year over year and sequential growth.
I'm also pleased to say that the second quarter, we generated 9.2 million in adjusted EBITDA.
Hi, its quarterly figures since 2016, and at 12.5 million positive swing versus prior year.
For the first half of 2020, we have recognized $21.3 million in a positive swing in adjusted EBITDA compared to 2019.
This is a testament to a great team effort by everyone at Comscore.
Greg will dig into more detail on her financials later in the call.
Our financial success demonstrates that our plan is working and we're focused on the right opportunities to grow rapidly profitably going forward.
We are a leader in measuring media consumption with long term relationships and blue chip customers that trust us for planning transacting.
Across all platforms for media.
As a world is changing we have adapted to this new world and we are serving our customers.
In the first half of 2020, we demonstrated velocity and developing future products and this is allowing us to expand or services to meet future needs at the advertising Echo system.
We must now what the pandemic stop us from innovating, bringing new products to market.
This quarter is a testament to discussions that we made last year spring, our engineering and product development teams together under one leader.
To date in 2020, we had augmented our syndicated TV business with some transactional based solutions, we have expanded our local TV services.
We have developed new opportunities in digital working with business Partners Center privacy focused way and we have enhanced our movie servers user systems, which features that allow our customers.
Use our improved database in a more functional kind of way.
Let me walk you through how we're applying these developments to our business and driving growth first transactional based products.
Why we will continue to focus on building in her syndicated services many of our new products being developed to augment the services and generate revenue on a transactional basis. In addition to their base syndicated contract.
For example in addressable advertising the addressable market moving to television is a critical and fast growing long term driver, where comscore is being used its currency.
The marketplace and our customers have made it clear that national addressable advertising will grow dramatically.
We are well position to capitalize on the shift national addressable allows TV networks to optimize their inventory selling that network TV AD unit to one advertiser and then delivering a different add to home based on their household characteristics for example.
Think about a car companies at bison National AD Getnet, Greg make it an AD for an issue the and I make up one for sedan.
We're working closely with our MPPD partners to develop national addressable solutions to deliver integrated and impression based measurement for both addressable impressions and national advertising under addressable impressions our initial approach.
Oh cheese uniquely MPPD centric and that supports rather than competes with our MPPD partners as some others are doing.
Another key example is her shifts to incremental transactional rapid now is a renewed agreement with open a Pete.
I'm also excited to announce that we've expanded our partnership with opened 80.
Designed to support the industry wide effort of scaling it audience base the advertising across TV publishers.
This multiyear agreement enables opened 18 members to benefit from Comscores advanced audience information and we earn a percentage of the media spend.
We believe this partnership will continue to drive adoption of our data driven solution in Paris, with our national addressable law firms.
Comscore offers the only single methodology solution unified across local national advanced audiences and addressable solutions.
We believe this partnership will ultimately drive adoption of our data driven cross platform audience measurement, making it easier for both publishers and advertisers the scale campaigns targeted too precise audiences across premium video environments.
Our partnership with Library is also how we're leveraging the transactional model on top of the syndicated model as we combined our collective television in video in college and to develop new outcome based offerings.
Together, we are leveraging comscores trusted viewership and behavioral information across platforms with like ramps and waibel identity and conductivity to provide better accountability for marketers and monetization for TV ad sellers.
We are already generating licensing revenue from this partnership and we expect that will also generate additional transactional revenue in our TV and our activation segments.
The second develop and I'd like to focus on is our expanded local TV offering.
Comscore is also always viewed itself as an expert in battery in local markets with our onto wife old data footprint in these local markets.
Local markets core Comscore adds up to our national numbers, that's a big advantage and as we look at 2021, we see three key drivers of rapid growth in this area.
First we are enhancing our unique TV measurement capability with the integration of Comcast data sets, which remains on track for implementation by the ended the year.
Once completed we will produce possess and on matched measurement service covering over 75 million television sets and the only measurement provider covering all local markets with a sense since level service.
We believe this capability will drive revenue growth from new TV stations, particularly in Comcast markets and with station groups and key advertising agencies second we recently launched quick score providing viewership insights within.
24 hours in the top local TV markets quick score has been met with excitement from the industry.
And it makes our services more actionable than ever before by a lot. We in advertising campaign adjustments to be made in real time, a major advantage and driving India fishing C and the effectiveness of local television ad campaigns.
In our view.
Faster more granular reporting its a solution or partners are willing to pay for particularly as the media world continues to shift.
And today I'm also pleased to announce a local market partnership with consumer orbit, a leading aggregator consumer behavioral based information.
Together as we announced this morning, we are developing comscores consumer intelligence or CCRI for local markets, a new solution that will tie local shopper behavioral settlements the television viewership in a category specific segments.
In near real time, this will all media outlets brands and agencies to plan transact in evaluate local media performance in new and exciting ways.
We expect this offering to be available in all local markets by the end of 2020.
There is digital we are delivering measurement across devices, while innovating and planning for a more privacy compliant quickie. This world as you may have seen in our recent block pool post we are proud to announce that we are the first company to provide advance.
Advertising reach measure, Matt by an integration with Google ads data hub 80 age for short for our validated campaign essentials BCD products.
Incorporating H D H and our digital measurement is the latest installment and Comscore is multifaceted approach to digital measurement.
Comscores diversified approach to digital measurement enables us to address the complexity of evolving privacy and technology dynamics.
The digital system.
This partnership further emphasize is comscores and glucose focus on privacy by allowing advertisers to receive you too and Google video partners add reach measurement in a privacy centric manner.
This is but one example of how we will continue to grow revenue as we continue to emphasize user privacy.
Our continued investments to improve reporting along with the 80 H integration demonstrates the speed of which comscore can innovate and bring improve products to market. Even during this pandemic. Additionally integration with many streaming services such as Twitch type.
Late in the future of our digital offerings, which will provide enhanced insights into gaming space within our suite of digital products.
As I've said before privacy comes first at Comscore ended July we were awarded a new in fact, our 76 U.S. patent in the last five years or our ability to protect user privacy during demographic data collection.
This technical achievement bolsters, our measurement suite in affirms our commitment to superior privacy shape digital and TV measurement in a cookie lets world. We believe this new patents strengthens our competitive position as a leader in privacy focused media measurement.
This quarter, our focus on privacy enabled us to expand our relationship with global marketing icon Omnicom. This was a major when this deal expands the integration of Comscores digital audience behavioral information into Comscores omni platform.
Just a global deal and represents the next evolution of Comscores indices, <unk> industry, leading activation suite, which is designed to help ramps reach specific demographics behavioral audiences and TB and T T audience and a branch safe relative.
Good context across laptops, desktops, and mobile and now connected TV platforms. We look forward to working closely with omnicom with all of our products for years to calm.
Finally, let me address our movie business, which has been impacted by the pandemic. The state the obvious the closure of movie theaters over the past five months has adversely affected our movies business.
Although most of our business is subscription based under multiyear contract a number of smaller non long term contract cost customers Foster service during the quarter. In addition, some onetime custom business, which reliably materialize as most quarters is studio.
Tweak their marketing and promotional strategies, we're on new releases did not happen this quarter.
These factors caused our movie revenue to decline in the quarter.
However, our large studio customers remain committed to our services interactively you've seen her service to plan for the future.
In fact, we re signed eight large customers during the quarter, including three large studios all told multiyear contracts despite the challenges.
We have kept innovating, we recently unveiled and upgrade consumer experience across our movie reporting and analytics suite of products first we streamlined our system, we improve database functionality and allow users to access new store a cold.
Data on demand.
Secondly, we launched new generation or the theater management software platform for our exhibitor partners.
Theaters are opening again in many parts of the world and we are helping our partners navigate this unique period some of our studio customers are exploring a direct to consumer model planning to release films on streaming services, we like them or activity by device.
Subpoena measurement solution, the compiling box office and direct to consumer viewing metrics in one combined product.
This is where server to server integrations with our partners will pay dividends. The movie industry has been on pause, but it's not going away.
Regal has announced its opening theaters domestically on August 21st and AMC to its announced their plans and in Europe people and families are enthusiastically returning to the cinema in Spain theaters hip reopened to unprecedented box office results.
Yes, well ahead of expectations with the sequel that did better than the original film and as you know that's a rarity.
We are as a leader in box office measurement and I believe our movie service is best days are yet to come.
We currently expect our movie revenue to be back to the prior year level within 12 to 18 months and to grow from there.
Finally, I'd like to note. This success, we had in the quarter customer wins and renewals across our entire product suite during the quarter, we secured new business from bass Master minute media Omnicom expansion and digital as I described Shout Studios Synta Diamond.
Our on demand Sweet Coxmedia rock sleep broadcasting of local TV and Sinclair is to compose threesixty for local TT measurement just to name a few.
It really was a solid quarter.
Now, we'd like to turn the call over to our Chief Financial Officer, Great thing Greg. Please.
Thank you Bill today, we reported second quarter revenue.
<unk> point, Sixmillion compared to 96.9 billion and the second quarter of last year.
What we expected revenue to be lower it or maybe business.
Revenue also continues to be impacted due in part to the timing of clothing contract.
Revenue from ratings and planning in the second quarter was 63.8 million compared to 68.9 billion reported in the second quarter of last year.
The decrease was primarily from our syndicated digital products.
Well enterprise customer renewals continue to be strong syndicated digital revenue declined year over year, representing 48% of a reading complaining revenue in the quarter compared to 50% in the second quarter of 2019.
As I discussed earlier this year, we expected syndicated digital revenue to decline early in the year.
Well the decline was higher than our original expectations due in part to the timing of closing contract as I mentioned earlier, we remain optimistic it will stabilize and begin to flatten on a sequential basis in the coming quarters.
Based on our expectation that we will benefit from new business from the exit of some competitors.
Already signed some of those customers, which we expect to be additive to revenue starting in the third quarter.
National TV was flat compared to the prior year, but we began to realize revenue from our new library of relationship.
Local TV revenue continue to grow from new customers and expansion with existing customers.
Revenue from analytics and optimization in the second quarter was 16.9 million compared to 17.3 billion and the second quarter of last year.
The decrease was due to lower activation revenue from reduced AD spend and the second quarter.
Our custom digital marketing solutions revenue was flat compared to the second quarter of 2018, but up sequentially.
We also recognized approximately $1 billion in revenue from a onetime recovery on a revenue sharing agreement.
Maybe just reporting and analytics revenue in the second quarter was 7.9 million compared to 10.7 billion in the prior year.
While many of our movie contract or long term in nature and the second quarter revenue was impacted by the timing of some studio renewals as well as from smaller customers that plus service.
While the timing of theater reopening is uncertain, we do expect theater closures to continue to have an impact on movies revenue.
Revenue should improve as theaters riocan.
Turning to operating costs, our core operating expense, which include cost of revenues sales and marketing R&D GE today.
Declined nearly $25 million year over year.
A significant reduction in operating costs related to the actions we implemented throughout last year and further reductions we took in 2000 teus.
Cost of revenues decreased by 7 million in the second quarter compared to the year ago quarter due to lower headcount and professional fees.
Selling and marketing expense declined 7.3 billion as compared to the prior year in R&D decreased 7.1 billion from staffing reduction decreases in all aspects of our cost base.
She in expense for the second quarter decreased 3.2 billion compared to the prior year quarter from lower headcount and professional fees.
As we discussed in Bay, we took additional short term actions to reduce costs, we reduced executive compensation instituted a hiring freeze initiated limited furloughs halted travel and temporarily suspended from internal projects.
Sure. This cost reduction was realized in the second quarter, because we have begun to restart the movies activity as we look to make operational investments in the second half 2020.
As such we continue to focus on improving or long term cost structure, we expect quarterly expenses to increase back around the levels reported it look first quarter of 2020.
In the second quarter, we reported a net loss of 10.4 billion compared to a net loss of 279.5 billion for the same period last year.
The second quarter of 2019 net loss included a 241.6 million noncash impairment charge at a 5 million dollar charge related to the conclusion of the SPP investigation.
For the second quarter, adjusted EBITDA was 9.2 million compared to an adjusted EBITDA loss of 3.2 billion for the same period last year.
The 9.2 million was the highest level since the merger four years ago. The improvements in adjusted EBITDA reflects our ongoing cost reduction efforts.
Our non-GAAP net loss for the second quarter 2.8 billion, which compares to a non-GAAP net loss of 10.8 million reported in the year ago quarter.
We ended the second quarter with total cash of 55.5 million compared to 66.8 million at December 31st.
The decrease in the first half of 2020 was primarily a result of cash interest payments.
These payments were offset by a 9.4 billion upfront payment received in the long term contract.
Looking forward, we expect revenue to continue to be impacted by AD spend a good movie.
We are optimistic that new agreements in partnerships, we have signed over the last six months will benefit us in the second half of 2020, particularly if the economic headwinds abate.
However, we remain cautious about revenue growth until we have better visibility into ad spending.
Let me turn it back to the operator to take questions.
Thank you.
Ladies and gentlemen, like asked the question. Please press Star then one on you touched on telephone.
Again, if you like to ask the question. Please press Star then one.
Our first question comes from surrender <unk> of Jefferies. Your line is open.
Hi, good afternoon. Thank you for taking my questions.
I'd like to start with a question about the.
TV segment.
Over the last quarter to you phase of been providing some increase in color.
Well, we're seeing growth and local you talked about rather than the addressable.
Any additional color you can provide in terms of maybe the size of the segments or maybe where things are having how we should be thinking about maybe the magnitude of those rates just trying to get a little bit more quantitative.
Maybe what's going on underneath.
Greg would you like to take that one place.
Sure. So when you think about ratings and planning we provide the percentage.
That is syndicated digital.
In the in that metric that I just had in my prepared remarks.
While there are few other smaller products that fit within that.
Area.
It is implanting the bulk of that comes from our TV business.
And as we think about that.
[music].
Portion of revenue within regions and planning.
They mentioned we are seeing growth.
In local.
And year over year.
We saw some.
Metal benefits.
Already in the second quarter from our library of relationship as we move forward.
We expect those to improve and be better than they were here in the second quarter as I mentioned before but I think mathematically or the easiest thing to do is for the most part provide.
The digital percentage, which we've done now for a few years to try and break out the TV aspect.
Perhaps a P. I think that's fair I guess my question was more about.
We didnt TV sub segment itself in terms of as one grows and maybe together as the did you give digital syndicated digital has gotten smaller is there may be the thought of trying to.
Provide additional quantitative color I guess that was my question beyond what the percentages that you guys provide.
Well, we were always looking at providing greater transparency. So that's why we signed the docket, but when you think about the pie in digital Greg had mentioned in the prepared comments that.
Privacy really matters now two of our competitors went out because business in the beginning of the year in the Omnicom Omni deal is a testament to the durability of the product and they need in this privacy compliant world now when you look at the totally drift.
Second in TV, it's a multibillion dollar market and about half a billion or that comes in local as you can see from our numbers, we've got all long way to.
Go on growing that business and we believe a little bit growth driver will be the inclusion of the Comcast data sets. We knew for a long time that that was an important piece in one tracks our revenue growth in TV the revenue growth follows the.
The expansion of the data sets. So if you go back over a decade and we'll look at that every time, we had an important new operator revenue does grow now that's not a prediction for the future, but that would of course half past. So we're excited about all those business verticals.
Okay, that's actually very helpful and then related.
The comment about the data privacy and you get specifically called out the patent.
And your earnings calls in the press release prior can you talk a little bit about the importance of that is that maybe a little bit more important than maybe some of the other I was at this point given the concerns around privacy and data collection at this point that's there.
And it is there an advantage that.
That achieves that may be I'm trying to phrase it's the right way that.
Your competitors can't follow you down that path.
Well, we've always taken the road of privacy under TV business, we've been.
From the beginning covered by the cable assets.
And also when we add other data sets legislation around privacy seal, Graeme which widely and now you have to California Privacy Act added on top of that so we've always been hyper sensitive and we always believed that was a big businesses advantage now it actually has happened where.
There's penalties for companies if the license in news information that is not dealing in the world. The privacy. So now it's become a strategic advantage for us and we believe that that would happen will create long with the other patents that we have in as you know.
All of these are related to one another in some way. It helps promote this deep and wide competitive moat that takes years to build and debt. It does create a.
Ways that we believe that our customers will continue to spend with us and it's going to be difficult to enter this market more and more and we have a large number of patents pending that also is along these lines. So these are things that.
I hope that long term or investors will see the.
Groups at those labors.
That's helpful and then maybe turning to the movie business can you maybe provider talk a little bit above the color maybe the some of the long term implications of the changes that may be going on there in the sense that there was a recent agreement between AMC in universal about theatrical release exclusivity I think that was shortened to as little as maybe 17 days.
So it seems like that the fundamental business model might be changing there and.
How does that potentially change you guys alluded to it earlier in terms of some of your product offerings, but does that also change to the revenue growth dynamics, how how should we think about pets.
Well, we I don't think it.
In Paris, our growth and I'd say actually opened some up so if you look at most movies.
The majority of the revenue actually happens in the first few weeks 17 days.
And then AMC cut their business steel and I'm not going to comment on that but what's the companys. The content creators need is a real time system, which is what we have for box office that a refreshing suffering minute then they can see ticket sales. If you think about a line of no.
Numbers that go with a new release.
What happens in the theater and then a wind up the numbers right next to it that shows the buy rates on on demand and then with the total that gives the owners of the content way to manage it and then when you further die then to the geographic location. So.
Greg and I, because the pandemic are in different locations right now.
You can look at our local market areas of How's the ticket sales difference in the on demand platform and the of the theatrical platform and then the movie company can make a decision how they want to promote that content. So when I say the best days are ahead of us.
The movie business is now getting as complicated as the TV business and that's good for us Fractionalization and fragmentation is very good current information business as long as you can innovate and we're innovating like the Devil here.
And we started it fall when I joined and with the pandemic Weve doubled down on our efforts. So I think this is actually a good trend for us.
That's helpful and.
And then one final question here apologize.
One of things you mentioned it was that there was a number of renewals within the to the movies segments can you can you comment on that number in the sense of was there something that you entered into these multiyear contracts was there something that was driven by coking thinking in terms of that it makes sense to have it was it just coincidence that there was there so many of renewals.
Occurred during the quarter.
It was just one of those serendipitous events that as copious hit America, we had a number of contracts. There are no and as you can expect in the month of March and April and May.
We were all trying to get comfortable with what the world looks like so it took longer to negotiate for obvious reasons and then those contracts got signed there was nothing unusual other than the pandemic, which created a that piece, but thank you for your questions. We appreciate it.
Thank you so much.
Thank you our next question comes from.
Laura Martin of Needham Your line is okay.
Hey, I love to all three of mine at once.
Great cost control on the quarter can you remind us of the lag between when you integrate these comcast cost compared to when you start raising prices. So how it affects the piano how long that lag is it sounds like you're not going to get ahead of any till year end. So do I start seeing positive aspects of Comcast only next year, but I'm getting costs into this.
CNL over the next couple of quarters. That's my first question. The second is I've always publish that 75% of your movie revenue was under long term contract. We did have movies down 26% year over year. So my question is maybe Mike I'm, hoping my number was right and that means that this is going to be the bottom for movies, even though it might go on for a couple more.
Orders.
And if im specifically interested as if they aren't successful opening in August and this goes through year end.
By movie downside, just where it is now just like this kind of $8 million level, because everything else is under long term contract.
And then third is great renewal awesome New business. My question is did we capture all that revenue upside in the quarter or a bunch of these partners ships that you've announced that you signed in the second quarter going to be actually we'll see them rowing in the second half of this year all in those will be boyne revenue coming from.
From this point forward thanks, guys.
Thank you very much Laura for those questions.
The new business and renewals that we signed.
Theres very little revenue in the quarter that just passed.
That will roll out.
In subsequent quarters.
And on the movie business, Although my Crystal ball definitely broke with a pandemic I believe that what we're seeing as the bottoming out effect and I'll, let Greg comment on that further, but we're not anticipating any new blockbuster movies.
Coming.
In the theater, but what I have been personally surprised at Laura are the resiliency in Spain as we all know Spain was one of the first countries in the pandemic and they got locked down a pretty badly and then actually the theaters they were going back and forth and went to open them.
And using the analytics that comscore provided they actually decided to open. This movie loosely translate it's called father Theres only one number two and you know sequels rarely do better than the original.
This family focused movie actually beat the original and it shows that week over week attendance in ticket sales are growing so it feels like this is the bottom.
As theaters start to open up and then we'll see in I think your numbers have been right on here.
And we're going to see the effect of an accounting treatments diamond to let.
Greg address and on the Comcast piece before I turn it over to Greg, Yes, we're all recognizing costs now and we will not see revenue until next year, Greg do you what she'd like to comment on any events.
I think you hit all the salient points, there bill likely more on the movie side I.
I think we were.
Yes, we think about it we would try to be clear about pausing of servicing their theaters open those those small customers and those.
Long term contracts should come back.
And so as you see that data improved around number of per year opening.
We think that that will benefit us going forward.
So I would reiterate what bill said on that and I was going on Comcast, Yes, we are building that out and recognizing cost today, we should see the benefit moving forward when that's what we've done.
Really excellent work on the quarter you guys. Thanks very much for taking my question.
Thank you Laura.
Yes.
Thank you. Our next question comes from Matthew Thornton approach with Securities. Your line is okay.
Hey, Bill Hey, Greg Thanks for taking the question.
Maybe a couple of quick ones, if I could be on the first one.
Maybe for Greg as we think about revenue linear ready for the year.
Any reason, we wouldn't see some quench sequential improvement in Threeq and Fourq you just given obviously to Q was kind of like maximum filling maximum maximum pain is there any unusual that would prevent sequential growth I'm not getting any magnitude, but anything that would prevent sequential growth as we think about your threeq versus twoq you in fourq versus Threeq you.
That was the first question second question can you just remind us what political has meant for you guys in in prior cycles. As we just kind of think about what the lift versus kind of normal.
Run rate looks like in a political year.
And then just just finally on the strategic review and I apologize. If this was covered I jumped on late but I seem to remember there was a date around the Star Board agreement that was sometime in August maybe early August.
I'm just curious.
With the is that with the extension of the strategic review how that date kind of comes into play whether that agreement has been extended or what the implications of that are in any any update there would be really helpful. Thanks guys.
Greg would you like to take this first.
Sure Let me let me.
To start with the first question, Matt around sequential growth as you as you know.
We.
Remove guidance.
Back in base, we haven't given specific guidance as it as it relates to 2020.
What I'll say is that some of the items that we talked about today and talked about last quarter around timing of contracts.
Moving.
Customers Pausing service.
Lower AD spend in the second quarter.
As I mentioned, a certain things change over the course of Q3 in Q4, those could be positives for the company and I think in my closing remarks, we use the term optimistic and we are optimistic about that but giving specific guidance as to how that will.
Turned out is difficult given the environment as you can imagine in.
Q4 tends to usually be a better quarter for the company. If you look back historically, given a fair amount of cutting business.
The fourth quarter, two year wells areas like activation. So I think there's some room for optimism here, but as far as specific sequential growth.
We have to wait to see how that plays out.
On the political side.
We've never specifically given that amount that we that we typically generate if you go back in time presidential elections have been better than than mid year.
Elections.
We thought coming into the year that 2020 would be pretty strong.
More like 2016.
We haven't seen that develop today.
But we do have a fair amount of.
Contracts that are what we call minimum commitments and we do expect to see some of that here as we enter the back half of the year.
You asked about the.
Election approaches in the fall.
We've never given a specific number but we do you expect to see some benefit from that as we move through Q3.
And then as it relates to your last question around.
The agreement that we had the Star Board.
You're correct that did expire on the on August 15.
We're currently working to resolve.
And bring to conclusion, the strategic review as quickly as we can and as Bill said in his remarks, we're looking to do that before the end of the third quarter earnings call.
Great. Thanks, guys appreciate it.
Thank you thank you from Richard.
Our next question comes from Richard Kramer artery.
Since your line is open.
Thanks, very much it's Richard Kramer merits a.
My first question is about the Mpvds centric national addressable solutions, you mentioned and I'm just trying to square.
You are the size of your revenue base and opportunity and engagement with some of these large mpvds with how you can break into these accounts that historically work with some of your competitors, who currently claim to be getting a regular stream of renewals and can you just to give us a little bit more extensive your market entry.
A strategy your go to market strategy, whereby you can you will take share.
Because that's something I guess, we're not seeing yet in your numbers.
Second question I have and maybe this is a longer term one you'd see quite a few tools providers. The mediaocean, so the world making acquisitions.
You see new company springing up trying to bridge digital and video like like continent.
How do you see yourself as fitting into what seems to be a consolidating space and is that something you think you'll need to address at the end of the strategic review and maybe a very quick third one can you just be a little clear on the economics of the Ram deal then lybrand deal that you mentioned and also.
No no. If you can break it out with the customer that didn't mean prepayments I don't know if you can identify them a hours materials your sales or not but that would also be interesting. Thank you.
All right I'm sure this picture with Greg I'll take the media Ocean Hutson Amex to start with we are not in a system. We are not in the business of providing software like they are they are partners in media Ocean in Hudson Amex are so.
For a valuable partners and we believe that they will be.
For a long long time.
On the addressable piece of the puzzle we were the first company to measure in that space. So we had first mover advantage with people like dish and with ATM teeth and that was with the local addressability.
Piece, and then as national and that was with inventory that was largely on the cable networks. We see what's happening now the networks are the broadcast networks like Viacom CBS as an example, and others are working with the open a key did taking network piece it.
Inventory and then segmented like a gave in the example before.
In auto manufacturer.
Just one spot in a particular program and then because of our tool. They can decide that Greg is a great customer for an upscale issue the and I may one I'm, a great customer from old man.
There were Sudan and that that commercial will be shutdown that cable infrastructure. So we believe that we have the best solution out there time will tell of course and our customers are excited by it but the ramp is also taking more time here.
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In part.
You listen to the television networks.
It's been before infrastructure now infrastructure is solved and the pandemic is pushed back what was supposed to be a bumper year in 2020 as advertisers were pulling back but I think we're in the super good place and on the life ramped piece I'm going to pass set one over to go.
Greg I think that was a financial question.
Yes, I think bill.
As it relates to library, we don't really provide any specific details around.
For the current customer contracts or the economics around them.
As we.
Stated in our prepared remarks, we began to recognize license revenue in the quarter.
And obviously we will.
Have that revenue moving forward, but given the structure of that deal.
And just maybe one quick follow up just to understand what I'm thinking about someone like Comcast, they're involved and NCC, which is I guess renamed Dan for Sam they've gone to blonde Brown, how do you.
Compete for attention or to become their preferred solution given that they seem to have so many irons in the fire and many me mpvds seem to have so many irons in the fire and this addressable.
Market.
Well, if you look at the world as it's going to be when Comcast is integrated.
I'm, calling from the Miami Fort Lauderdale market, which is a Comcast market 80, and she is here dish and Directv if you would in the we've been measuring for a dozen years now the market first it was driven with dish in 18 to universe and then it was.
Matt It with Directv and soon with Comcast, What's Comcast is fully integrated I cannot.
Overstate the importance of that because AD agencies understand that when you have a census approach like we do you can look at demographics beyond age and gender into very granular information and then you can look at outcome based AD schedules did in fact and add schedule.
Result in product movement. So I believe the operators once we're fully integrated will embrace our solutions because it's complete sensors for them.
So I think we're best position in this new world.
Okay. Thanks.
Thank you Richard.
Thank you.
Again, ladies and gentlemen, like that's a question. Please press Star then one.
Next question comes from Alan Gould of Loop capital. Your line is open.
Hi, Thanks for taking the questions I've got a few please.
First a bill how much is there any change in the demand for third party measurement by the large digital platforms I mean to date a lot of them to said, we can do it ourselves, but it sounds like they're starting to realize they can get better rates et cetera, and there's a little more transparency.
Yes on that question.
I've seen the demand.
Increase overtime I think part of that is privacy driven part of it also some companies are talking about working with the walled gardens. That's been our approach to work with these folks because they do one third party management and.
I think part of that also relates to the political environment that we're now in that accompany two in its own measurement is not necessarily optimal all so yes, I do believe that we're well positioned there and we're also well positioned because in digital with our pan.
Animal where a few years ago, one could make a case to say panel measurement will be less relevant in a sense. This world, but when you add hypersensitivity to privacy. A panel is an important piece in that also so I feel good where we are on digital.
Okay and my next question, how big an opportunity is P is measuring p. Vod for you both measuring p. Vod on open networks and also if it's.
If it's just inside of one network.
I think it's a significant opportunity Alan.
Because it's just too darn complex.
The owners of the content certainly Haas accessing information, but they don't have access to what happens on.
You know.
With the other folks content. So comscore has always meant transparency across all the different operators and that's why our demand I believe we'll be there for a long long time at least in my investment horizon, because they need the.
See what's going on on everyone's content because the success of a piece of content is relevant right. It's relative to how that competitors content does so it's just not about counting dollars on.
He thought it's how does it relate to the other platforms and are they doing great are they doing good or not so good.
I hope that answers that question.
Okay and then my last question is.
Regarding your strategic review sure any reason you chose the terms of maximizing long term shareholder value that long term isn't there.
All right now we're dealing with.
An English classes I'm going to hand, this over to Greg to address that one Greg.
Yes, I would just say that we thought about the best way too.
Characterize kind of where we're at.
We're going to bring this to conclusion I think bill with clear Allen in his remarks about.
Yes, we're going to make a decision here by the ended the third quarter.
It is as we've said previously we continue to be focused on.
Yes, all potential outcomes to maximize.
Long term shareholder value.
Okay. Thanks, Greg Thanks Bill.
You're welcome and thank you.
Thank you.
I'm showing no further questions at this time I'll turn the call back over to build let it chief Executive officer for any closing remarks.
Thank you operator, and I'd just like the same in summary, we remain super excited about the future as we manage through this unprecedented period I'm pleased with the progress that we've made in the company in 2020, despite the environment that we're in on behalf myself and our entire team.
Comscore I'd like to send our heartfelt best wishes to all of our fellow citizens on the front lines in this pandemic first responders healthcare workers at all and essential employees Comscore will continue to do our part, helping our customers and our communities preserve.
And ultimately recover from the environment that we're in thank you operator and leave we look forward to sharing our progress and results with you in the upcoming quarters. Thank you for joining us today and we hope to talk to you soon take care.
Thank you ladies and gentlemen, this does conclude todays conference. Thank you participating me all disconnect have a great day.
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