Q1 2022 Comscore Inc Earnings Call

May 10, 2022

Ladies and gentlemen, please standby your conference call will begin momentarily once again, ladies and gentlemen, thank you for calling please remain on your lines. Your conference call will begin momentarily. Thank you for your patience.

[music].

Good day, ladies and gentlemen, and thank you for standing by welcome to the Comscore first quarter 2022 earnings Conference call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question. During this session you will need to press Star then one on your telephone keypad.

As a reminder, this conference call is being recorded if you require any further assistance. Please press Star then zero at this time I would like to turn the conference over to Mr. John Tinker Sir please begin.

Thank you operator 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 May 10 2022.

Actual results may.

May differ materially from those currently expected because of a number of risks and uncertainties. These risks.

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.

Www SEC Gov, we disclaim any duty or obligation to update our forward looking statements to reflect 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. Please note that we will be referring to individual slides on this call.

You are also available on our website I will now turn the call over to Comscore <unk>, Chief Executive Officer, Bill Lytic Bill. Thank you Jon and thank you all for joining US today I'm very proud that we delivered another solid quarter of results in our first quarter.

As a reminder, this our first quarter that we're operating under our new solutions group.

Our focus is on measuring content and ads with the goal of enabling the planning and activation of media and our privacy forward way across all screens TV connected TV or seek television digital mobile and of course the movies we are.

Pleased to report that we grew revenue, 4% year over year to $94 million and adjusted EBITDA growth of 22% the $6 8 million versus $5 6 million a year ago.

Some of the highlights in the quarter include NBC, you certifying comscore local TV currency provider across all of their owned and operated an affiliate group stations. Additionally.

They've announced comscore will be using us for local <unk>.

Keeping measurement currency.

We also inked an enterprise deal with Sinclair for the licensing of our CCI service Comscore consumer intelligence for local markets, which provides an unrivaled cross platform view of consumer retail visitations and online shopping tied to <unk>.

<unk> viewing behavior at the local market level.

And our momentum continued in this current quarter with the expansion of great TV for 10 of their recently acquired markets.

We also continued to make progress in accelerating our privacy forward offerings within predictive audiences. We are partnering with IRI to bring their CPG audience segments into our activation solution. This provides the best in class audience targeting.

Within contextually relevant digital experiences in a cookie free privacy forward manner.

We are also happy with our progress to date on Comscore campaign ratings or what we referred to as CCR with CCR advertisers can truly understand their audiences and advertising campaigns across platforms with de duplicated reach and frequency.

Metrics that allow them to align their spend and achieve more specific and accountable campaign specific kpis and a higher return on their overall investment.

Our CCR partnership with Youtube continues to progress one highlight this quarter was the program, where we measured cross platform advertising performance around the Super Bowl. This included PC mobile and connected TV. The program included and major brands across <unk>.

Cars travel software dining and foodservice.

Comscore CCR with the primary measurement used to specifically identify incremental advertising reach across Youtube before during and after the actual Super Bowl television broadcast.

On the digital side with the integration of our social media service share of late into our digital offerings, we have named <unk> UK.

Our EVP of digital to focus on expanding our product solutions and driving revenue growth in this key strategic area for us in 2022.

As most D&O Tanya rejoined Comscore when we acquired terribly in December of 2021.

In the quarter Warner Brothers Discovery announced that they would be launching their now joined upfront with comscore as an alternative currency provider with three very large national agencies.

Also in the quarter NBC, you named Comscore as a certified provider for local currency measurement.

The only provider they certified for local.

In April Comcast Cable's had sales division effective announced state use comscore for local TV measurement as a currency joining the growing ranks of TV players offering measurement alternatives to a REIT deal side.

In connection with our charter arrangement spectrum reach is rolled out comscore as their preferred TV currency, and all 89 markets, including New York and Los Angeles with this we believe more AD agencies and brands will switch to comscore to buy television advert.

Tyson.

Local stations continue to subscribe to comscore for stable and reliable currency. It's also worth pointing out that local TV stations should benefit this year from an estimated $3 billion plus bump in political advertising and many of them to continue to be variable.

Okay.

We are actively looking for our new currency debase their advertising inventory transaction side.

Also in the quarter.

Are we expanded our relationship with Vizio TV this with a multi year agreement to continue our access to their unique CTV viewing at the glass level.

Within digital our partnership with IRI brings their CPG segments into our activation offering. We believe this is a big win for both of our businesses. It provides IRI with a privacy forward way to activate key segments and a cookie free manner and it provides.

<unk> Comscore with a key segment of CPG audiences that can be transacted on across the programmatic ecosystem at scale.

Our ability to deliver a holistic view of both content and add consumption throughout the home.

Critical differentiator of what comp scan comscore delivers for our clients every day.

The combination of our sensitive space television coverage, which includes more than 70 million television sets 35 million households, and nearly 13 million smart Tvs, along with our census, based digital coverage and the industry's only total home panel is.

What sets comp scores ability.

For our customers apart.

Regarding our CTV capability, specifically there are two ways in which you can get connected TV information at scale.

One is directly from publishers by attacking.

<unk> server to server integrations or through ACR technologies from Smart Tvs.

We do all of them, unlike others, who trough their CTV capability comscore measures, both ads and content consumption and.

And because we have a combination of set top box panel and CTV.

We are able to deliver an undue placated with consumption.

This isn't a new offering for Comscore, we introduced our over the top measurement capabilities in 2015, and we have been collecting and reporting on holistic view of media behavior for years, continuing with our history of innovation and giving Comscore leadership.

To deliver on our holistic product suite across content and ads. This is comp scores competitive advantage.

Fleet coverage and content and ads and a very large installed base of both buyers and sellers of media that use our services every day to run their businesses.

Despite all of the press in the marketplace truncheon, new currency offerings.

Reality is there's only two companies that deliver the full suite of capabilities across the media landscape period.

And Comscore is one of them.

Our census, based television and digital scale, coupled with our total home panel means that comscore can deliver what no one else can the ability to get across platform view of digital CTV and linear consumption, where clients can precisely reached.

Their desired audiences and contextually relevant experiences.

This can be done in a privacy forward way through our activation products, which allows our clients to optimize their spend.

Or ad delivery and the measurement outcomes because of our ability to deliver de duplicated audience reach.

It is clear that we have the most complete cross platform offering.

Along with the highest coverage of CTV video content and video AD inventory available in the market.

Taking this a step further and today's privacy forward market. The AD tech industry has struggled.

<unk> cookie free tactics that will allow.

Them to maintain campaign performance and Kpis that advertisers have become accustomed to.

Building on the contextual targeting foundation, so brand safety and IEP category and keyword targeting Comscore is reinventing contextual targeting with the addition of predictive audiences.

Victor audiences is contextually delivering targeting make it privacy forward and providing the crosswalk between audience behaviors and contextual signals.

This is a massive step forward for the industry, enabling advertisers to maintain their kpis without cookies.

Comscore is leveraging this technology not only for our own audience information, but complementary for our data partners, providing them with a cookie free path. The surface there are segments in the marketplace.

Before turning it over to John I want to reiterate that we are laser focused on executing against our key priorities aimed at delivering profitable growth.

Comscore measures content and ads, it's what we do best and the success that we're having across the markets. We operate in with new clients wins, new partnerships and a renewal with our long standing media and agency clients gives us confidence that the.

The opportunity is large for us.

We are developing world class products that are privacy forward and cookie free we will be ready when the market shifts with our product offerings in this space.

Returning to growth in digital is a key priority for us and it's critical to our growth story going forward, our product and our commercial focus here aligned on new solutions group is just the beginning.

Our currency efforts and momentum we're seeing in the market under Carol Hinnant leadership have led us to the NBC announcement on local and our double digit growth to start the year and our cross platform solutions group.

Finally, as they transition from CEO I am confident in our team's leadership efforts.

And then continuing deliver against these priorities as we move throughout the year and I could not be more excited about the opportunity that's in front of us with that I'd like to turn it over to John John .

Thanks, Bill and it's good to be with everyone. This evening.

As Bill mentioned, we turned in a solid print for the quarter revenues of $94 million were up 4% versus the same quarter a year ago. Adjusted EBITDA of $6 8 million was up 22% versus a year ago.

Diving into the solution groups a bit further cross platform solutions grew by 10% from $37 3 million in the first quarter last year to $48 million this year.

Growth here was driven in large part by double digit growth in our TV measurement efforts.

Within that group, we also accelerated growth in our movies business, which grew by 20% year over year from $6 8 million in the first quarter last year to $8 $2 million. This year as the business continued to see strong recovery following the pandemic.

Digital AD solution revenues of $53 1 million or essentially flat versus the same quarter a year ago, which included a one time upfront revenue item.

Growth in our activation offering which was up 20% our custom digital offerings as well as execution and Shirley where key highlights in the quarter.

All in all we're pleased with the way we started the year from a revenue and EBITDA perspective, as well as from a cash perspective, and we are reaffirming our 2022 guidance for both revenue growth and adjusted EBITDA margin rate with that I'll turn it back over to Bill.

Thank you John and I. Thank all of you for your support and I. Thank you for trusting us with some of your investment.

Operator with that let's open up the line for questions.

Operator.

Ladies and gentlemen, if you have a question or comment at this time. Please press Star then one on your telephone keypad.

If your question has been answered or you wish to remove yourself from the queue simply press the pound key.

Again, if you have a question or comment at this time. Please press Star then one on your telephone keypad.

Our first question or comment comes from the line of Jason <unk> from Craig Hallum. Your line is open.

Hi, guys.

Calin here for Jason.

Question.

Starting up as you head here into upfront what are your thoughts on Comscore is the ability to be more visible in transactions. This year.

Well, that's a great question the Upfronts theres been a lot more press releases I think then often activity.

I think coming through the upfront you're going to see comscore coming out of it playing a far more important role and the transacting of advertising.

We're pretty excited what we're hearing from our clients on that.

I don't know if theres anything else I can add.

I answered that question.

Perfect and then just my second question here, so given the back end weighting of the year, what's your confidence in that ramp up here in 2022.

John .

Like I said in my comments, we feel good about the way the year has started.

Delivering against what we said, we would which puts us in good position to continue executing as we as we go throughout the year. So I'd say, we've got some real encouraging momentum here as we head into the last three quarters of 2022.

Thank you. Our next question or comment comes from the line of Matthew Thornton from <unk> Securities. Your line is open.

Hey, guys, it's Anthony duplicity on for Matt Thanks for taking the question.

How should we think about the impact how should we think about the impact of the Comcast NBC Universal deal on a full year guide just in terms of nominal impact as well as cadence.

And then I apologize if I missed this already but can you give us an update on the MRC accreditation process.

And kind of where that stands.

I'll start with the MRC first the MRC is progressing well as you know we're in the process for the accreditation for our local and National television services.

How are the announcements I think is the question.

And local affecting our guidance clearly it's positive.

We see a lot of momentum in the local market.

We're not just excited about it I just came back from the National Association of Sortation of broadcasters conference.

And it was nice to meet station groups that we haven't seen since the lockdown in person, even though we're on zooms with them all the time in the field the momentum of the shifting of not just with subscriptions, but the two deals we see more local agency signing on with US we see the usage it.

National agencies. So we feel really good when it comes to guidance I always turn that over to John to answer Yes look I think the momentum we're seeing there with new business wins across both local and national landscape have been encouraging.

As you saw in the first quarter, we started the year strong with a nice double digit print there.

I expect the momentum to carry forward as we go throughout the year.

Thanks, guys.

Thank you again, ladies and gentlemen, if you have a question or comment at this time. Please press Star then one on your telephone keypad. Our next question or comment comes from the line of surrender Finn from Jefferies. Your line is open.

Good afternoon.

The question about the.

The re segmentation of the business into the digital edge solutions and cross.

<unk> solutions.

Can you talk about the decision to change the presentation format and then maybe what your expectations are for the outlook for each of the segments for the remainder of the year.

Yes, I think we I think we provided kind of a range and the operating materials in terms of what our expectation is on the guide surrender showing there in terms of the rationale look. This is this is a way that we're operating our business day to day it aligns more with competitive landscape that's out there on the digital front.

With our cynical syndicated digital business really competing against a different set than say our cross platform set of solutions and so the way we think about aligning that.

Is is is along those lines.

Like I said I think the guide for cross platform solution is high single digit to low double digit.

Range and then on the digital AD solution side.

It's really about a guide towards what I would call low single digit to mid single digit if you will.

Fair enough and then in terms of just as we think about.

Changing economic conditions.

Can you maybe talk about the sensitivity to AD spend and how.

Revenue being back half weighted how your outlook.

The sensitivity of your outlook I guess, if there's a slowdown in that spend or how do we should think about that.

Great question.

The only good thing about being retirement age is I saw this similar thing unfold in the seventies late seventies, when we had super high installation, we had an economy that was strong but it set us off into an awful recession and it did affect AD spending I hope.

We don't go into recession, but if we do one thing I did learn the information services business become far more valuable in that environment and let me explain why the sellers of media, who paid us a great deal of money they need it's actually more because they are fighting for every.

Dollar not just the incremental dollar every dollar to transact on and I believe with the status of Comscore as a must have in this current environment going in that environment. I think we're double down on a must have for clients who don't currently.

Subscribed so.

<unk> add a recession is awful make no mistake about FERC customers, but it's something that I think we're well positioned to thrive in that environment.

<unk> media have a very similar dynamic.

They have more pressure on accountability and our suite like our CCR suite of accountability plays right into that theme.

No.

I hope, we don't get there, but I think we're going to be in a good position with or without it we set our guidance with the expectation.

For the current <unk>.

Economic data has been coming out, but I will tell you if history is any guide.

I feel good about our guidance.

Yes, the only thing I would add too I mean, we.

We feel good given the largely syndicated nature of the contracts that we have.

Sure.

Beyond that just to add what Bill said look our offerings in many ways are helping buyers and sellers of advertising to get the best ROI and outcomes and if you think about what our product offerings are.

Do exactly that they provide return on AD spend clarity and outcomes that debt.

That our clients are looking for and so I think in a scenario, where there could be or maybe a little bit of pressure on the AD spend we feel good about our product offering coupled with the syndicated nature of the contracts.

Got it that's helpful. And then maybe one kind of final question here just on the cost of revenues.

I think we've talked about a number of times in the past over the past year plus.

Obviously it starts off high in the year can you talk about how the how that the trajectory of how we should think about that line item should go over the over the course of the year.

And how much is kind of embedded in.

It's just seasonally higher this quarter.

Yes, I think look if youre talking about the cost of goods line that was essentially in line with our expectation I don't expect a lot of variability here as we move throughout the year surrender.

So I think we feel good about where were at again in line with what we had expected for the first quarter.

Okay.

That's it from me guys. Thank you.

Thank you.

Thank you I'm showing no additional questions in the queue at this time I would like to turn the conference back over to management for any closing remarks.

Thank you very much operator, we appreciate it and thank you all for joining US today, we look forward to our next earnings call and like always I want to thank you for your investment in Comscore and have great evening take care.

Ladies and gentlemen, thank you for participating in today's conference. This concludes the program you may now disconnect everyone have a wonderful day.

[music].

Yes.

Yeah.

Okay.

Yes.

Hum.

Yes.

[music].

Okay.

Yeah.

Okay.

Yes.

Okay.

Hum.

Yes.

Okay.

Yes.

Okay.

Yes.

Okay.

Yes.

Okay.

Yes.

Okay.

Yes.

Okay.

Yes.

Okay.

Yes.

Okay.

Yes.

Okay.

Yes.

Okay.

Yes.

Okay.

Yes.

Okay.

Yes.

Okay.

Yes.

Okay.

Yes.

Okay.

Yes.

Okay.

Yes.

Thanks.

Yes.

Okay.

Yes.

Okay.

Yes.

Okay.

Yeah.

Okay.

Yes.

Okay.

Good day, ladies and gentlemen, and thank you for standing by welcome to the Comscore first quarter 2022 Conference earnings Conference call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question. During the session you will need to press Star then one on your telephone keypad.

Actual results in future.

It's may differ materially from those currently expected because of a number of risks and uncertainties.

<unk> and uncertainties include those outlined in our 10-K 10-Q and other filings with the SEC, which you can find on our website at.

Www SEC Gov, we disclaim any duty or obligation to update our forward looking statements to reflect new information after today's call we.

I will turn the call over to Commscope, Chief Executive Officer, Bill Lytic Bill. Thank you Jon and thank you all for joining US today I'm very proud that we delivered another solid quarter of results in our first quarter.

As a reminder, this our first quarter that we're operating under our new solutions group.

Our focus is on measuring content and ads with the goal of enabling the planning and activation of media and our privacy forward way across all screens TV connected TV, our CTV digital mobile and of course the movies we're pleased.

The report that we grew revenue, 4% year over year to $94 million and adjusted EBITDA growth of 22% to $6 8 million versus $5 6 million a year ago.

Some of the highlights in the quarter include NBC use certifying comscore as a local TV currency provider across all of their owned and operated an affiliate group stations. Additionally, effective announced comscore will be using us for local television.

Measurement currency.

<unk> viewing behavior at the local market level.

And our momentum continued in this current quarter with the expansion of great TV for 10 of their recently acquired markets.

It's the best in class audience targeting within contextually relevant digital experiences in a cookie free privacy forward manner.

<unk> metrics that allow them to align their spend and achieve more specific and accountable campaign specific kpis and a higher return on their overall investment.

Our CCR partnership with Youtube continues to progress one highlight this quarter was the program, where we measured cross platform advertising performance around the Super Bowl. This concluded PC mobile and connected TV. The program included 10 major brands across.

Cars travel software dining and foodservice.

Comscore CCR with the primary measurement used to specifically identify incremental advertising reach across Youtube before during and after the actual Super Bowl television broadcast.

On the digital side with the integration of our social media service share of late into our digital offerings. We have named timing of UK as our EVP of digital to focus on expanding our product solutions and driving revenue growth in this key strategic area for us.

In 2022.

Most D&O Tanya rejoined Comscore when we acquired terribly in December of 2021.

In the quarter Warner Brothers.

<unk> announced that they would be launching their now joined upfront with comscore as an alternative currency provider with three very large national agencies.

Also in the quarter NBC, you named Comscore as a certified provider for local currency measurement, the only provider they certified for local.

In connection with our charter arrangement spectrum reach has rolled out comscore as their preferred TV currency, and all 89 markets, including New York and Los Angeles with this we believe more AD agencies and brands will switch to comscore to buy TV.

Rising.

Vocal about actively looking for our new currency debase their advertising inventory transaction side.

Also in the quarter.

Are we expanded our relationship with Vizio TV this with a multi year agreement to continue our access to their unique CTV viewing at the glass level.

<unk> Comscore with a key segment of CPG audiences that can be transacted on across the programmatic ecosystem at scale.

Our ability to deliver a holistic view of both content and add consumption throughout the home is a critical differentiator of what comp scan comscore delivers for our clients every day.

The combination of our census, based television coverage, which includes more than 70 million television sets 35 million households, and nearly 13 million smart Tvs, along with our census, based digital coverage and the industry's only total home panel is.

What sets comp scores ability.

For our customers apart.

Regarding our CTV capability, specifically there are two ways in which you can get connected TV information at scale.

One is directly from publishers by attacking.

Or server to server integrations or through ACR technologies from Smart Tvs.

We do all of them, unlike others, who trough their CTV capability comscore measures, both ads and content consumption and.

And because we have a combination of set top box panel and CTV.

We are able to deliver an undue blockaded view of consumption.

To deliver on our holistic product suite across content and ads. This is comscore is competitive advantage.

Copper tin content and ads and a very large installed base of both buyers and sellers of media that use our services every day to run their businesses.

Despite all of the press in the marketplace truncheon, new currency offerings. The reality is there's only two companies that deliver the full suite of capabilities across the media landscape period.

And Comscore is one of them.

Reach their desired audiences and contextually relevant experiences.

This can be done in a privacy forward way through our activation products, which allows our clients to optimize their spend their AD delivery and the measurement outcomes because of our ability to deliver de duplicated audience reach.

It is clear that we have the most complete cross platform offering.

Along with the highest coverage of CTV video content and video AD inventory available in the market.

Taking this a step further and today's privacy forward market. The AD tech industry is struggle finding cookie free tactics that will allow.

Them to maintain campaign performance and Kpis that advertisers have become accustomed to build.

Building on the contextual targeting foundations of brand safety and <unk>.

The category in keyword targeting Comscore is reinventing contextual targeting with the addition of predictive audiences predictive audiences is contextually delivering targeting making it a privacy forward and providing the crosswalk between.

<unk> audience behaviors and contextual signals.

This is a massive step forward for the industry, enabling advertisers to maintain their kpis without cookies.

Before turning it over to John I want to reiterate that we are laser focused on executing against our key priorities aimed at delivering profitable growth.

Comscore measures content and ads.

What we do best and the success that we're having across the markets. We operate in with new clients wins, new partnerships and a renewal with our long standing media and agency clients gives us confidence that the opportunity is large for US we are develop.

<unk> World class products that are privacy forward and cookie free we will be ready when the market shifts with our product offerings in this space.

Finally, as a transition from CEO I am confident in our team's leadership efforts.

Thanks.

Thanks, Bill and it's good to be with everyone. This evening.

As Bill mentioned, we turned in a solid print for the quarter revenues of $94 million were up 4% versus the same quarter a year ago. Adjusted EBITDA of $6 8 million was up 22% versus a year ago.

Diving into the solution groups a bit further cross platform solutions grew by 10% from $37 3 million in the first quarter last year to $40 $8 million this year.

Growth here was driven in large part by double digit growth in our TV measurement efforts.

Within that group, we also accelerated growth in our movie business, which grew by 20% year over year from $6 8 million in the first quarter last year to $8 $2 million. This year as the business continued to see strong recovery following the pandemic.

Digital AD solution revenues of $53 1 million or essentially flat versus the same quarter a year ago, which included a one time upfront revenue item.

Growth in our activation offering which was up 20% our custom digital offerings as well as execution and Shirley where key highlights in the quarter.

All in all we're pleased with the way we started the year from a revenue and EBITDA perspective, as well as from a cash perspective, and we're reaffirming our 2022 guidance for both revenue growth and adjusted EBITDA margin rate with that I'll turn it back over to Bill.

Thank you John and I. Thank all of you for your support and I. Thank you for trusting us with some of your investment.

Operator with that let's open up the line for questions.

Operator.

Ladies and gentlemen, if you have a question or comment at this time. Please press Star then one on your telephone keypad.

If your question has been answered or you wish to remove yourself from the queue simply press the pound key.

Again, if you have a question or comment at this time. Please press Star then one on your telephone keypad.

Our first question or comment comes from the line of Jason <unk> from Craig Hallum. Your line is open.

Hi, guys.

Calin here for Jason.

Question.

Starting up as you head here into upfront what are your thoughts on Comscore is the ability to be more visible in transactions. This year.

Well, that's a great question the Upfronts theres been a lot more press releases I think then often activity.

I think coming through the upfront you're going to see comscore coming out of it playing a far more important role and the transacting of advertising.

We're pretty excited what we're hearing from our clients on that.

I don't know if theres anything else I can add.

To answer that question.

Perfect and then two quick second question here, so given the back end weighting of the year, what's your confidence in that ramp up here in 2022.

John Yes.

Like I said in my comments, we feel good about the way the year has started.

Delivering against what we said reward which puts us in good position to continue executing as we as we go throughout the year. So I'd say, we've got some real encouraging momentum here as we head into the last three quarters of 2022.

Thank you. Our next question or comment comes from the line of Matthew Thornton from <unk> Securities. Your line is open.

Hey, guys, it's Anthony duplicity on for Matt Thanks for taking the question.

How should we think about the impact how should we think about the impact of the Comcast NBC Universal deal on a full year guide just in terms of nominal impact as well as cadence.

And then I apologize if I missed this already but can you give us an update on the MRC accreditation process.

And then kind of where that stands.

Yes, I'll start with the MRC.

The MRC is progressing well as you know we're in the process for the accreditation for our local and National television services.

How are the announcements I think that's the question.

And local affecting our guidance clearly it's positive we see a lot of momentum in the local market.

We're not just excited about it I just came back from the National Association of Association of Broadcasters Conference.

As you saw in the in the first quarter, we started the year strong with a nice double digit print there and I expect the momentum to carry forward as we go throughout the year.

Thanks, guys.

Good afternoon.

The question about the.

The re segmentation of the business into a Digitalized solutions and cross platform solutions.

Can you talk about the decision to change the presentation format and then maybe what your expectations are for the outlook for each of the segments for the remainder of the year.

Yes, I think we I think we provided kind of a range and the operating materials in terms of what our expectation is on the guide surrender share there in terms of the rationale look. This is this is a way that we're operating our business day to day it aligns more with competitive landscape that's out there on the digital front.

With our cynical syndicated digital business really competing against a different set than say our cross platform set of solutions and so the way we think about aligning that.

Is is is along those lines.

Like I said I think the guide for cross platform solution is high single digit to low double digit.

Range and then on the digital AD solution side.

It's really about a guide towards what I would call low single digit to mid single digit if you will.

Fair enough and then in terms of just as we think about.

Changing economic conditions.

Can you maybe talk about the sensitivity to AD spend and how.

Revenue being back half weighted how your outlook.

The sensitivity of your outlook I guess, if there's a slowdown in that spend or how do we should think about that.

Great question.

We don't go into recession, but if we do one thing I did learn the information services business become far more valuable in that environment and let me explain why the sellers of media, who paid us a great deal of money. They need is actually more because they are fighting for every deal.

Not just the incremental dollar every dollar to transact on.

And we I believe where the status of Comscore as a must have in this current environment going in that environment. I think we're double down on a must have for clients who.

They don't currently subscribed so and add a recession is awful make no mistake about it FERC customers, but it's something that I think we're well positioned to thrive in that environment.

Buyers of media have a very similar dynamic where they have more pressure on accountability and our suite like our CCR suite of accountability plays right into that theme.

So.

I hope, we don't get there, but I think we're going to be in a good position with or without it we set our guidance with the expectation.

Before the current.

Economic data has been coming out, but I will tell you if history is any guide I.

I feel good about our guidance.

Yes, the only thing I would add bill.

We feel good given the largely syndicated nature of the contracts that we have.

<unk>.

Beyond that just to add what Bill said look our offerings in many ways are helping.

Buyers and sellers of advertising to get the best ROI and outcomes and if you think about what our product offerings are they do exactly that they provide a return on AD spend clarity and outcomes that debt.

That our clients are looking for and so I think in a scenario, where there could be or maybe it's a little bit of pressure on the AD spend we feel good about our product offering coupled with the syndicated nature of the contracts.

Got it that's helpful. And then maybe one kind of final question here just on the cost of revenues.

We've talked about it a number of times in the past.

Last year plus.

Obviously it starts off high in the year can you talk about how the how that the trajectory of how we should think about that line item should go over the over the course of the year.

And how much is kind of embedded in.

Just seasonally higher this quarter.

Yes, I think look or if youre talking about the cost of goods line that was essentially in line with our expectation I don't expect a lot of variability here as we move throughout the year surrender.

So I think we feel good about where were at again in line with what we had expected for the first quarter.

Okay.

That's it from me guys. Thank you.

Thank you.

Thank you I'm showing no additional questions in the queue at this time I would like to turn the conference back over to management for any closing remarks.

Thank you very much operator, we appreciate it and thank you all for joining US today, we look forward to our next earnings call and like always I want to thank you for your investment in Comscore.

Have a great evening take care.

Ladies and gentlemen, thank you for participating in today's conference. This concludes the program you may now disconnect everyone have a wonderful day.

Q1 2022 Comscore Inc Earnings Call

Request a DemoDemo

SCOR

Comscore

Earnings