Q4 2020 Comscore Inc Earnings Call
Okay.
Welcome to Comscore fourth quarter and full year 2020 financial results conference call. At this time all participant lines are in a listen only mode. After the speaker presentation, there will be a question and answer session.
A question. During this session you will need to press star one on your telephone.
Please be advised that today's conference is being recorded and that she retired and he finished assistance. Please press star zero.
Now, it's my pleasure to turn the call over to your host for today, Ms Jackie and market.
Thank you Victor before we begin our prepared remarks I'd like to remind all of you that 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 March 10 2021.
We disclaim any duty or obligation to update on forward looking statements to reflect new information. After today's call. We will be discussing non-GAAP measures. During this call on which we have provided reconciliations in today's press release and on our website.
Our actual results and future periods may differ materially from both current and you expected because of a number of risks and uncertainties, including those related to the COVID-19 pandemic and its economic impact.
These risks and uncertainties include those outlined in our 10-K 10-Q and other filings with the SEC, which you can find on our website or at Www Dot S. E C Dot Gov.
I'll now turn the call over to Comscore as Chief Executive Officer, Bill and it yeah.
Thank you Jackie and thank you everyone for joining us today yesterday, our stockholders approved the strategic transaction, we announced on January seven and we expect it to close today.
The completion of the transaction represents an important milestone for us together with our new strategic investors charter cure rates and Cerberus, we will substantially eliminate our outstanding debt and provide us the financial flexibility to invest and the.
Next generation products.
Enhance our existing core products and comp and capitalize on market trends as the shift to audiences and impression based measurement is happening.
Simply said measuring wherever and add is placed and wherever content is consumed with a high degree of precision.
And Thats, what our clients want and expect from Comscore, we are focused and excited about our ability to grow revenue with our new strategic partners as we are coming out of the pandemic.
As we officially bring 2020 to a close I want to thank our outstanding employees, whose kidney to be dedicated where source pool and successful Rockwell last year I appreciate their efforts and I am proud to be representing about on the call today.
Our business, particularly and movie and custom solutions continued to be impacted by the pandemic and the fourth quarter. We believe that custom solutions will return to growth and 2021, given the advertising recovery that we are now seeing this year and our expanded rights from.
And our strategic partner.
We will start to grow our movie business again, as large studios signed up for them everywhere and measurement service that we've been demonstrating to them and as movie theaters continue to reopen we are seeing positive signs across many of our business lines are local or national.
And our international connected TV business continues to perform well, we're gaining momentum with advertising agency clients, who are increasingly embracing our advanced audience metrics and rally and around our local market currency because of our innovation and our precision.
We expect our television business to grow this year with the inclusion of Comcast the identified set top box information and our expanded data rates with charter and our expanded rights with connected Tvs.
We continue to see our core digital services stabilizing in the United States, which has been building on the trend established over the last year with large enterprise wide clients, while our international digital services, which represents about 25% of our syndicated digital services.
What's harder hit by the effects of Covid.
We believe our digital services and resumed growth later this year.
Despite those challenges I am pleased to say that and the fourth quarter, we generated $94 million and adjusted EBITDA.
For 2020, we have recognized on more than $25 million increase and adjusted EBITDA compared with 2019, demonstrating that we are well positioned for even a stronger EBITDA performance as revenue rebounds, and Greg will cover the detail.
Later in our financials section of the call.
And as I have said before we are at an inflection point and media and advertising.
The pandemic accelerated the velocity of the change and the media landscape impressions not just gross rating points are starting to be used more rapidly towards valuate. The success by planners sellers and buyers, regardless of where content and advertising.
<unk> are viewed and consumed by customers.
Because of our Sensus measurement, we believe and many of our clients tell us that we are positioned to be a leader.
I would like to spend a few minutes talking about the <unk> world.
We are on a strong position to take advantage of this opportunity.
One area that we are uniquely positioned is activation and the combination of comscore panels, and our expansive web crawling positions us well to meet market needs is activation moves away from audience created by third party cookies.
Comscore is predictive audience solution provides it tool for reaching granular audiences through privacy friendly contextual signals. We are the only solution to be able to offer this at scale across multiple providers and example of companies taking.
<unk> of this capability with the recent announcement regarding Transunion.
<unk> automotive and placed IQ or leveraging comscore is predictive audiences.
Comscore strongly supports the privacy safe measurement and.
And we have been preparing our syndicated digital measurement solutions for this new world for some time. In addition building systems that will be inter operative with industry solutions likely WFAN known better as the World Federation of advertisers we have been.
Pairing incremental services on top of them to provide clients with the best available measurement solutions. We're also building alternative solutions for publishers, who want measurement outside of the WFAN framework and to support measurement from the largest sites to the smallest.
Leveraging extensive online handle assets and many kinds of census information.
We are uniquely positioned to offer a measurement and this evolving privacy focused world.
On the National TV front, we're excited about the new opportunities presented by the addition of gas began net pied D identified datasets, we're expanding the number of highly targeted networks reported and our national measurement service. These additions have proved to be Val.
Liable as we signed two network deals and the first 50 days of 2021. Additionally, we reinvented our branded content business by entering a new partnership with leading enterprise AI solutions provider highest.
This partnership allows us to move away from a highly customized solution to a syndicated scalable solution that is based on Comscore as television ratings and planning services and new datasets generated using hides a yacht.
Last quarter I mentioned that we began our connected.
Began to expand our connected TV measurement footprint.
We're squarely positioned to take advantage of the opportunity with the connected TV marketplace currently with the agreements in place with both the inscape and samba that spans the U S and international markets. We have one of the largest connected TV footprints being used.
Provide analytics and insights and to brands agencies and sell side customers.
Our launch of the international connected TV measurement began and European markets and expanded in the fourth quarter to Australia.
We will continue to evaluate expanding the footprint and 2021 into new markets.
<unk> TV information is important.
But it is the combination of CTV information integrated with our full census media footprint that includes linear television digital and OTT video on demand addressable and other media that contains the real power of undue.
And we'll keep at reach and frequency per planning and buying this is where comscore is and a unique position because of our close relationship with the mvpds and our patents.
We saw an increase and the fourth quarter for our activation products. We continue to be focused on Comscore is connected TV and connect a contextual activated solutions for both on demand and live streaming. These solutions go beyond brand safety and <unk>.
Clients to increase their monetization through enhanced direct sales open exchange programmatic sales.
In this.
Cookie free environment. We are excited about these solutions and believe they will significantly increase our reactivation revenue in 2021.
Our library and partnership is generating revenue and the volume has been performing above our initial expectations. This includes the fourth quarter launch of our next generation outcome based measurement data plus math powered by Comscore, which I described in detail.
Last November.
Our initial clients are seeing the benefits of this service and they are now seeing the results of their campaigns and data plus math powered by Comscore.
I'd like to take just a moment to talk about our movie business. This business continues to be impacted by theater closures, but we expect to see a rebound later in 2021 now that theaters are reopening and bigger cities, and New York and and California.
We continue to see encouraging signs of the global recovery.
China, which is now the number one global market for movies and delivered the highest grossing box office weekend on record during the Chinese new year celebrations. This record was even more impressive when you consider that much of the country is still operating under audience capacity re.
Strict ships.
And I'm confident the industry is evolving toward our strength of measuring all springs, we are the leader and box office measurement and we believe the business can return to prior levels and beyond as the pandemic and <unk>.
<unk> is uniquely positioned to combine information and analytics and in one place whether a consumer sees a movie and a physical out of home theater or in their home.
Finally, I'd like to note the recent successes with our customer renewals and wins across our product suite and the fourth quarter, we secured new syndicated digital business with Texas monthly pocket outdoor team liquid and answer and secured renewals from Hearst Reader's Digest.
Canada trusted media branch and Mac night, as well as securing renewals with four fortune 500 technology competence.
On the TV front I mentioned that we had strong support and our agency vertical where we expanded our long standing relationship with dentsu media to incorporate comscore local TV audience and impression based solutions and local markets and security and <unk>.
Exclusive local TV and currency agreement with the Moran group for 'twenty local markets and strong automotive across 20 markets.
Based on this agency success, we secured renewals with 10 of our key station groups, including an expansion with Gray television, which we now support 87 out there and 94 markets.
In summary, despite a unique environment that everyone had to deal with in 2020, we are proud of our accomplishments given the challenges that we faced closing out the year with another solid quarter of customer wins and renewals. We are excited for two <unk>.
21, and we will work closely with our partners and our investors to bring new revenue generating products to market from new commercial agreements now and we'd like to turn the call over to our Chief Financial Officer, Greg thing Brett.
Thank you Bill today, we reported fourth quarter revenue of $90 million compared to $95 2 million and the fourth quarter of last year.
Revenue from ratings and planning and the fourth quarter was $63 6 million compared to $66 8 million reported and the fourth quarter of last year.
The decrease was primarily from our syndicated digital products.
Syndicated digital revenue declined year over year, representing 47% of our ratings and planning revenue and the quarter compared to 50% and the fourth quarter of 2019.
However sequentially syndicated digital was flat to the third quarter.
<unk> revenue was higher compared to the prior year, partly from our international expansion and we expect that momentum to continue into 2021 as we add new.
Countries.
Revenue from analytics and optimization and the fourth quarter was $19 3 million compared to $17 7 million and the fourth quarter of last year.
Increase was due to higher custom digital marketing solutions revenue compared to the fourth quarter of last year and increased activation revenue.
While the fourth quarter of 2020 was higher than the prior year, we did experienced some customer delays around custom projects and the quarter, where customers pushed out projects that we expected to deliver in 2020 to the first half of 2021 due to the pandemic.
Movies reporting and analytics revenue and the fourth quarter was $7 1 million compared to $10 7 million and the prior year quarter.
Revenue continues to be impacted by ongoing theater closures as a result of the pandemic and was lower than our expectation.
As customers continue to hold off on restarting services until further certainty of content and theater openings is clear.
While the timing of theater reopening at scale is uncertain.
Based on where we sit now we think we are bottoming and the first quarter. We believe we will begin to see improvement and revenue as the year progresses.
Turning to operating.
Our core operating expenses, which includes cost of revenue sales and marketing R&D and G&A declined $10 9 million year over year and the fourth quarter.
The reduction in operating costs relates to the actions we implemented over the last few years.
As well as some impact from temporary actions, we took related to the pandemic.
Cost of revenues decreased by $3 $3 million and the fourth quarter compared to the year ago quarter due to lower head count and professional fees as well as the 2 million onetime non cash expense reduction related to a revenue share agreement.
Moving forward, we do expect cost of revenue to increase starting in the first quarter from higher data costs associated with the new long term <unk> contracts, we signed in conjunction with the transaction as well as additional data required to support our international expansion.
As such we expect margins to improve over the course of the year as revenue increases.
Selling and marketing expense declined $2 7 million as compared to the year ago quarter, and R&D decreased $3 3 million from staffing reductions and decreases in most areas of our cost base.
G&A expense for the fourth quarter decreased $1 5 million compared to the prior year quarter from lower head count and professional fees.
We do expect our operating expenses to rise from these levels as we invest and new product offerings, which should lead to higher revenue later this year.
Additionally, last quarter, we began to focus our hiring efforts to expand our capabilities and regions outside of the U S.
Over the long term this will.
Allow us to increase head count to support our growth initiatives, while continuing to maintain our focus on cost.
Made good progress on this initiative during the fourth quarter, but expect the transition to increase expenses through the first half of 2021.
And the fourth quarter, we reported a net loss of $13 2 million compared to a net loss of $21 4 million and the same period last year.
For the fourth quarter of 2020, adjusted EBITDA was $9 4 million compared to $5 5 million per the same period last year.
The business challenges from the pandemic and lower revenues, we generated more than $32 million and adjusted EBITDA for the full year 2020.
Compared to $6 million and 2019.
We ended the fourth quarter with total cash of $50 7 million compared.
Compared to $66 8 million at December 31, 2019.
The decrease in cash during 2020 was primarily a result of cash interest payments.
We are pleased with where our cash position ended the year.
And as part of closing of the transaction the company will issue preferred and common stock as was outlined in the proxy materials.
After the transaction is completed we will have approximately 165 million shares outstanding excluding the CVI Award.
Looking forward based on current trends and expectations.
We believe 2021 revenue will increase between three and 5% based on the new agreements and partnerships, we signed during 2020 and continuing into early 2021.
More specifically, we believe that revenue increases will take hold beginning in the second half of 2021 and accelerate as we exit the year.
The first quarter and first half of 2021 will continue to be impacted by lower movie revenue.
We expect will bottom and the first quarter.
And cost of the projects that have been delayed because of the pandemic are expected to be delivered and the coming quarters.
Additionally, we have seen significant interest and both are connected TV expansion internationally and activation products, which we expect will result in additional revenue and 2021.
As for adjusted EBITDA, we expect margins to be lower and the first half of 2021 compared to the prior year, but increase and the latter part of the year to be between six and 8% for the full year.
And the first quarter, we expect to record a non cash charge that will include extinguishment of debt and associated derivatives issuance of $3. One 5 million conversion shares to Star Board.
And and anti dilution adjustment to the series a warrant exercise price, which is expected to reset to the transaction price of $2 47 and upon closing.
The non cash charge of closing is estimated to range between 15% and $25 million on a GAAP basis based on recent trading prices.
And it vary depending on the market price of our common stock on the closing date and other variables.
The charge is not expected to have an impact to adjusted EBITDA.
Now, let me turn it back to the operator to take questions.
As a reminder, ladies and gentlemen to ask a question you will need to press star one on your telephone and.
To withdraw your question press, the pound key police and violently compile the Q&A roster.
Our first question on comes from the line, Sir and their spend from Jefferies may begin.
Good morning, gentlemen.
Hey, good morning.
Start with.
A bit of a big picture question here on the investment spend so when you talk about kind of investing and the next generation of products.
Kind of how where are we in that roadmap and the timeline and.
How do you kind of think about the current portfolio and.
Where you think you want it to be.
Good question, Thank you and when.
And we talk about investments what we think they are just on the margin.
And as you know no one has that type of footprint that we have and TV measuring 75 million screens in the United States and almost $200 million desktop to.
200 million mobile devices over $200 million and digital panelists when we're talking about new product innovations that really is the combination of all those datasets and.
Those of you have been following us and investing on this for a while.
We've taken the perspective that the world is going to be different and the future, but homes are going to be connected by the best high speed data that there is and with television that either comes through a connected TV, where it comes from the cable satellite telco.
<unk>.
The combination of those datasets that really gives us an appetizer and the seller of media something that is super special So when we're talking about investments and theyre going to be products off those data sets.
Greg do you have anything you'd like to enter.
No I think we've made good progress we did announced quite a few.
New products over the course of 2020.
And we talked on highlighted some of those things earlier on the call I think we're well on our way.
Delivering those which will be additive to revenue and 2021.
But there are more things that we will be doing as you outlined and bill and we'll be seeing those later in the year.
Thank you that's helpful. And then a question on connected TV can you talk a little bit about the.
I guess, the importance of partnerships and CTV space, and maybe how that impacts the competitiveness of the marketplace, obviously, you've talked about some of the relationships that.
You guys are force.
Both domestically and internationally, but then at the same time.
There was a recent announcement by one of your major competitors with and agreement with the platform.
Can you talk can you provide a little bit of color on your thoughts around.
The partnerships and the importance of those and.
The competitive environment for that.
Our perspective is you don't have to own everything you have to have partnerships, where there is something and there for both parties. The partnerships that we have we help those partners sell advertising more effectively.
And what's in it for US is that we get those datasets, we use and a privacy safe way day.
Integrate with other data sets that accurately becomes and interdependence win win.
And that's pretty much throughout our product line and then in digital we saw something a long time ago that scraping and the web and doing things that were outside of common sense of privacy would not have a long shelf life and work.
And that's proving to be true right now and we've been per <unk>.
<unk> for that for a long time, so partnerships are important but.
You don't need a partnership everywhere.
And you don't necessarily.
And.
It's just.
Picking the right ones and I guess I'll say on the competitive question.
I think that was.
Something that I.
And would prefer not to respond to.
I think theres, a lot there and kind of what's been interesting press releases.
Understood and one quick question for Greg here, just a question on the margins.
When we kind of think about where adjusted EBITDA margins were in 2020 and.
And then we look at the guidance for 2021 can.
Can you talk about how much of the decline is from just kind of the return of the onetime expense savings and then maybe how much might be from increased investment and can you maybe talk about the cadence of the margins over the next four quarters.
Yes, I think the margins are going to improve all throughout the year I think that there were many things that we did last year to reduce expenses.
Refer to them on a temporary basis, how long they last into 2021, whether or not we will go back to the office this year, whether we will travel.
I'll remind you that we that the executives took executive compensation reductions for a portion of last year.
So some of those items the.
And the timing of which.
From a from an operating expense standpoint may or may not evolve over the course of the year. We are signing some new perhaps on the data side those will begin to.
And our financial statements and the first quarter, but as revenue improves all throughout the year, you will see margin expansion and as I.
Mentioned by the end of the year.
At the bottom line, the 6% to 8% will be on an annual basis. So I think we'll be accelerating from a revenue perspective, and a margin expansion as we exit 2021.
Thank you that's helpful. That's it for me.
Our next question comes from the line of Matthew Thornton True and Securities you may begin.
Hey, Good morning, Bill Good morning, Greg Thanks for taking the question a couple if I could.
Maybe start or bill just coming back to the.
Announcement, the partnership between Nielsen and broke and I'm curious.
Specifically as it relates to linear addressable I'm wondering if you view that as maybe something that could accelerate adoption in that market or whether it's just incremental competition I'm just kind of curious if you've yet and maybe positive or negative or somewhere between.
And then Greg for you the 3% to 5%. This year can you unpack that a little bit.
By some of the different.
Segments I guess.
Think movies will obviously continue to recover over the course of the year I'm just curious how youre thinking about.
Ratings and planning growth for the year.
And and <unk>.
<unk> growth per day for.
The year any color there and.
And then just one final housekeeping one Greg on free cash flow I was just curious how youre thinking about free cash flow this year.
Relative to the to the EBITDA guidance. Thanks, guys appreciate it.
Alright, I'll take the first stab at your question.
Roku again, I would prefer that you ask roku directly, but it's our understanding that our competitor trying to get into the linear.
Addressable advertising market, where they were delivering and AD. They bought a chassis out of bankruptcy I understand and we're trying to make that work and it looks like they abandon that strategy.
And so those assets.
How do we view it we don't view it as a positive or a negative.
And I think it's great for Roku moving along the line of more addressable technology, you've heard me talk about per years that I do believe that TV will be increasingly more addressable when we're in the market for a new power different car.
Based on other data sets for example.
The cars that we own and our garage are 456 years old we're probably in the market.
No data set to say that we buy or lease a car every 456 years, so you'll increasingly see ads around your interest and so.
I think that's a good thing.
One of the things that have prevented addressed ability for a long time is a lack of common infrastructure and <unk>.
<unk> the cable operators as such.
And putting together.
Really great platforms for a long time, and we've aligned ourselves for a number of years with them because we think ultimately.
Some of the more significant winners in this space.
The other questions I think were addressed for Greg Greg.
Yes. Thanks, Matt appreciate the couple of questions, Let me try and unpack as you suggest a 3% to 5% I think when you think about ratings and planning.
You've seen syndicated digital with significant or large double digit declines year over year, we think that that's coming to an and.
Bill mentioned, we hope that we might be able to get that or expect that to grow towards the end of the year. So when you think about that as it relates to ratings and planning.
And we'll call that and even for the year.
Real growth is going to come from is on national and local TV, where we have high expectations that over the course of the year, we will see we will see growth there.
Between.
The first quarter and the fourth quarter that will just continue to increase sequentially each quarter.
And that'll be the bulk of your increases and the ratings and planning area.
For analytics and optimization.
As I said.
And my prepared remarks, while custom did better and the fourth quarter. We did see some delays we have high expectations that.
That will improve throughout the year some of those projects that we had sold but didn't deliver will get delivered in 2021 and we.
We're seeing some real.
Active.
Opportunities there and that bucket also includes activation and I think bill address this and we have real high hopes that we'll see some some real growth there although it's.
Been a relatively small revenue piece for us and we havent provided in the past we do think it has a real opportunity to grow.
Over the course of this year with some with some significant double digit growth. So we will probably begin to provide some additional color around that as the year progresses and.
And then and then as we talked about movies is bottoming out.
And so that will be a tailwind for us as we as we move through let's call. It Q3 through Q4.
And on free cash flow I think we've seen improvements over the last few years as we've reduced our expenses even in the face of lower revenue, we are expecting significant improvement over the course of this year as revenue.
Increases each quarter of the year, we'll be able to see that.
So with our cash flows and our free cash flow and.
And would expect to see benefits from that each quarter as we move throughout 2021.
Our next question on income from the line.
Allan Goldin from loop capital.
May begin.
Hi.
Thank you for taking the question.
And Greg you now that you finally have a balance sheet, where you can start investing how should we think that youre going to approach things differently. I mean for example, R&D for logical reasons was really cut back dramatically or are you going to start investing more there and Greg.
And a bank line do you have or what kind of bank line and will you be able to get and now that you've got a cleaned up balance sheet. Thanks.
Yes.
Take the first question. Thank you Allen.
And when you think about us investing it's so much easier and not having the type of cash covenants and the restrictions that we have you should not think about us investing as not respect Dean profit. The one thing that we will.
Do and we're going to work hard and diligently at it is growing the top line and then.
Our top line being profitable we've got a great chassis that is largely syndicated so each new dollar of revenue is a very profitable dollar coming into the adjusted EBITDA and we're going to be focused on that so the decisions that the company had.
And to make when it had the.
And that and the loan covenants than it had it always had to be very cautious with the cash component of those investments and couldnt look to out.
Beyond a short distance this gives us the ability to look long term mid term and of course short term, we're focused on revenue growth and net revenue growth being and profitable.
Greg on the Bank line.
Yeah, Let me just add one quick thing, though on on the R&D.
As I mentioned in my prepared remarks.
Over the last couple of quarters.
Ability to increase our head count.
Using a global work force and still being focused on cost has allowed us to increase our number of folks at the company over the last six months many of those in the and the <unk>.
And product area and.
So we are being able to add folks, which will allow us to invest.
And products.
Over the course of 2021 as we've on boarded those folks there'll be focused on cost and bottom line. So so guess our costs have come down, but we're very focused on making sure that we have appropriate balance.
What we need.
On on the Bank line question, we don't have one today, but.
Given the situation that we that we were in and over the last few years, but it is top of mind and.
The company will be focused on that we want to ensure that we have appropriate liquidity to run the business moving forward and we.
We'll be working through all of that over the course of <unk>.
I think we lost you a little bit Greg.
And anything else no that covers it. Thank you. Thank you very much.
Thank you.
Thank you. Our next question comes from the line and Richard Kramer from Arete Research you may begin.
Thanks, very much guys.
So bill two questions from me first of all your 10-K shows that you've had steadily declining payments to mvpds, but increasing data cost and with the fresh investment banking led by charter can you talk about how youre going to attack that opportunity and national and local over the course of this year on.
Obviously your main measurement rival talks about having sewn up quite a few.
Key accounts and that market with long term renewals and then second and just to draw on a point you mentioned earlier about moving to contextual per activation and we've obviously heard quite a lot about the well flagged sort of phase out of cookies, but can you talk about your approach to anticipating risks.
On the email based I'd is becoming less prevalent and Thats obviously been.
And then quite a topic of conversation and the AD Tech world in the past week or so thanks very much.
Yes.
And one misunderstanding I think thats out there Richard is that.
Customers only buy from one company, that's just not true.
And we live and a world where customers use a basket of currencies.
Two principal currencies and.
And what we have done with our Sensus measurement has the result of the audience is being stable and predictive.
And because of how we approach it we have been insulated with our basic product from the effects of the pandemic.
If you have a 40000 sample thats national in nature, and USD and maintain that by going and People's houses I would suspect that that panel has deteriorated over the course of the last year and.
And with Sensus measurement, it's the only way that you can combine audiences about the products that you buy you need 40 million households versus 40000 sample I used as a reference point just to articulate that our product is being used by television networks.
And by television stations and local cable sellers and importantly.
Local TV and national TV buyers to make decisions on where they should be paid and placing their dollars, that's where our growth is going to be coming from.
What's more agencies using us as a principal currency.
Exclusive and some cases, but not necessarily required to have media companies continue to subscribe to us and those that don't subscribe to subscribe to us at increasing rates.
And in terms of all the craziness of Cookie list.
We've been preparing for that since 2019.
With our predictive audience solutions and our atomic I D. So we think were and are really good place to capitalize on this opportunity because we also think there'll be a number of companies that just make it through that change. So we're comfortable and I think there was a third question.
And I don't remember it.
No I guess the question, specifically about moving to contextual and getting beyond cookies is the net.
Next stage of that seems to be casting aspersions on <unk> based on past E. Mail addresses are using emails and identifier, which is certainly the basis of many IV solutions out. There are you preparing for that also to be deprecated and something that you need to find alternative for.
We have found alternatives to make sure that we're in a good place the deal that we just announced with.
Transunion and place IQ and IHS auto as an example of net.
And think that we've been market, leading and that and our whole business is not dependent on that I said in my prepared remarks, the importance of a digital channel and per years folks did not fully appreciate or understand.
Having that one to one relationship with a wide variety of folks and what you can do with it and the permissions way.
As we look out into 'twenty, one and 'twenty, two and 'twenty two looking backwards investors, who are going to be happy that Comscore has world class panels augmenting our census measurement.
Okay. Thanks very much.
And our next question comes on line and Laura Martin from Needham and you may begin.
Okay.
Laura Your line is open.
Laura you may be muted, we can't hear you.
And once again learn and go ahead.
I'm trying.
Alright, Gotcha Youre there.
Okay, Great sorry, I think I'm on.
Okay.
Just following up on that question right. There you just said that.
Most companies take more than one measurement source.
Could you talk about in local markets, specifically what percent are only using U verse is shared with your largest competitor are you 50, 50, now where people it kicked out the other guy and you're sort of that day.
Fact, though currency and those local markets, what's that ratio right now.
That's a good question Laura the number of exclusive it continues to grow.
And you look at our strength.
It's that and the local market, where the AD agencies work in this ecosystem with local stations in markets, where we have all the TV stations or the majority of them.
They use us to present and to price off book, So that number is growing and I'll get back to you will get back to you on the exact percentage.
But I also believe that what has happened in the past we will continue to happen the incumbent lowers their price to make room for to net because they want to put because the marketplace demands it and they can cancel and.
And that's how the free market is supposed to work and I think it's working very well that way and local on the national front.
I think simply because of the audiences that can be combined.
And with these large datasets and makes us unique and customers who buy.
And two for a long time, but AD agencies, who are now thinking about how do they rationalize their costs are looking increasingly at on us as being the principal service.
Okay. That's super helpful back on our flocks that Google announced this week and.
The hypothetical that flocks win and the open Internet and.
Sort of.
And the open internet were not going to use.
And.
Individual identifiers and what is that do in terms of your measure net requirements on cost to adopt to flux because I don't even understand how you would measure swaps can you talk about that blocks ends up being the winner take all and the open internet.
Yeah, I'm not sure, what ultimately happens and or lower to be candid.
As you know we have a very constructive relationship with the large tech companies.
We also have constructive relationships.
With LIBOR ramp and the trade desk so.
We're hedged in either direction, depending on what happens.
And I think it's too early for me to call a winner, but I am comfortable where we are revenue wise that we have minimal risk and has significant upside.
Okay.
And then my last one is on international I, just don't get this I understand that we are spending a fortune is getting data and net products based in the U S around that data leverage that data.
Because we've already spent the money on data so why not just have price I don't understand can you explain to me why it's important to spend money offshore and why that's a positive focus rather than a distraction for management, rather than just focusing on making and lots of data expenses, we have on the P&L this year.
Right. So if you think about this is country specific.
There are large sponsors and there are large sponsors that will pay us to go into certain countries, where we get a good margin to enter it we will continue to enter it and then sell the other large tech companies. So it's one of those situations, we will not go into.
And two are market internationally, unless we believe the margin will be accretive to the company.
And the days of.
US going in and without that consensus are well behind us.
And as more of a strategic point of view a satisfying the large U S based tech companies on what they want and doing it profitably and partnership with them.
That makes a ton of sense. Thanks, so much bill.
Laura.
And I'm not showing any further questions in the queue I'd like to turn the call back over to Bill <unk> for any closing remarks.
Thank you so much Victor I hope you can hear from the tone of Greg and myself that we're very excited about the future and 2021 and well beyond and I am pleased with the progress that we made in 2000 and despite of all the challenges.
You all for being investors and following the company and we look forward to sharing and our progress with you and the upcoming quarters. Thank you for joining today and we'll talk to you all soon take care.
Ladies and gentlemen, this concludes today's conference call. Thank you for participating you may now disconnect.
And again.
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Okay.
Sure.
And.
And.
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