Q1 2024 comScore Inc Earnings Call
Operator: Good day, and thank you for standing by. Welcome to Comscore's first quarter 2024 financial results 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'll need to press star 1 1 on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star 1 one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to John Tinker, Head of Investor Relations. Please go ahead.
Good day and thank you for standing by welcome to Comscore as the first quarter of 2024 financial results Conference call.
Speaker Change: At this time all participants are in a listen only mode.
John Philip Tinker: After the Speakers' presentation, there'll be a question and answer session.
John Philip Tinker: To ask a question during the session you will need to press star one one on your telephone.
John Philip Tinker: You will then hear an automated message advising your hand is raised.
John Philip Tinker: To withdraw your question. Please press star one again.
Operator: Please be advised that today's conference is being recorded.
Operator: I would now like to hand, the conference over to John Tinker head of Investor Relations. Please go ahead.
John Philip Tinker: 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 7th, 2024. Our actual results in future periods may differ materially from those currently expected because of a number of risks and uncertainties. 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.sec.gov.
John Philip Tinker: 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 slides on this call, which are also available on our website, www.comscore.com, under Investor Relations Events and Presentations. I'll now turn the call over to Comscore's Chief Executive Officer, John Carpenter. John.
John Philip Tinker: Thank you operator before we begin our prepared remarks I'd like to remind all of you had 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 seven 2024.
John Philip Tinker: Our actual results in future periods may differ materially from those currently expected because of a number of risks and uncertainties. These risks and uncertainties include those outlined in our 10-K 10-Q and other filings with the SEC, which can find on our website or at www Dot FCC Dot Gov, we disclaim any duty or.
John Philip Tinker: To update our forward looking statements to reflect new information after today's call.
John Philip Tinker: I'll be discussing non-GAAP measures during this call, which we have provided reconciliations in today's press release and on our website. Please note that we will be referring to slides on this call which are also available on our website www dot com score dot com under Investor Relations events and presentations I will now turn the call over to Comscore chief.
John Philip Tinker: Officer, John Carpenter job.
John Philip Tinker: Thanks, John. And thanks, everyone, for joining us this evening.
John Philip Tinker: Thanks, John and thanks, everyone for joining us this evening.
John Philip Tinker: We've made some significant progress as we work to transform the business, and we've seen plenty of changes in the markets we serve. Given the ever-changing nature of the market, where audience fragmentation across screens and devices is increasing, and the way advertising is bought and sold is becoming both more digital and more programmatic, Comscore is focused on delivering cross-platform solutions that are built to measure the multi-screen world we are living in. We remain a leading cross-platform measurement choice for advertisers and agencies, platforms, and publishers, and one that is anchored by an MRC-accredited TV audience measurement product for both local and national. We're the only measurement player with this distinction.
John Philip Tinker: We made some significant progress as we work to transform the business and we've seen plenty of changes in the markets we serve.
John Philip Tinker: Given the ever changing nature of the market, where audience fragmentation across screens and devices is increasing and the way advertising is bought and sold as becoming more both more digital and more programmatic Comscore is focused on delivering cross platform solutions that are built to measure the multi screen world we're living in.
John Philip Tinker: We remain a leading cross platform measurement choice for advertisers and agencies platforms and publishers and one that is anchored by an MRC accredited television audience measurement product for both local and national or the only measurement player with this distinction.
John Philip Tinker: We're also certified by the USGIC as one of only two cross-platform measurement companies deemed transactable based on the standards set out as part of that review. While there is clearly work to be done, and despite headwinds in parts of the market we continue to serve, Comscore has made substantial progress already in 2024. Our adjusted EBITDA in Q1 was up 55% versus the same quarter a year ago, as a result of our cost discipline and growth in our cross-platform product.
John Philip Tinker: We're also certified by the U S. Jack is one of only two cross platform measurement companies deemed transact will based on the standards set out as part of that review.
John Philip Tinker: While there is clearly work to be done and despite headwinds in parts of the market. We continue to serve Comscore has made substantial progress already in 2024, our adjusted EBITDA in Q1 was up 55% versus the same quarter a year ago as a result of our cost discipline and growth in our cross platform products proxy.
John Philip Tinker: Proxemic by Comscore, our cross-platform activation business, saw 75% growth in the impressions we serviced in Q1 of 24 versus the same quarter a year ago. We continue to see tangible evidence of the impact that our AI-enabled, cross-platform audience solutions are having on the market. Recently, AdExchanger named Proxemic one of their 2024 programmatic power players, another in a series of announcements that recognize Comscore as an innovator and disruptor amid accelerating change in advertising and privacy regulation.
John Philip Tinker: By Comscore, our cross platform activation business saw 75% growth in the impressions, we serviced in Q1 of 24 versus the same quarter a year ago.
John Philip Tinker: We continue to see tangible evidence of the impact that our AI enabled cross platform audience solutions are having an impact on the market recently AD exchanger named proximate one of their 2020 for programmatic power players. Another in a series of announcements that recognize comscore as an innovator and disruptor amid.
John Philip Tinker: Accelerating change in advertising and privacy regulation.
John Philip Tinker: Given recognition like that, it's not a surprise that revenue for our cross-platform product suite was up 28% in the first quarter, as adoption continued to accelerate. With several key platform partner integrations underway, we expect rapid growth to continue for these products as we move through the year. As I alluded to at the outset, we received MRC accreditation earlier this year for both local and national TV measurements, along with JIC certification as a transactable cross-platform currency. That's something that no other measurement company can claim.
John Philip Tinker: Okay.
John Philip Tinker: Given recognition like that it's not a surprise that revenue for our cross platform product suite was up 28% in the first quarter as adoption continued to accelerate with several key platform partner integrations underway. We expect rapid growth to continue for these products as we move through the year.
John Philip Tinker: As I alluded to at the outset, we receive MRC accreditation earlier this year for both local and National TV measurement, along with <unk> certification as a transact will cross platform currency.
John Philip Tinker: That's something that no other measurement company can claim.
John Philip Tinker: Comscore TV is the first big data TV measurement product to receive MRC accreditation. It's a major milestone for both Comscore and for the industry. We're now the only TV measurement solution with MRC accreditation for both national and local television measurements.
John Philip Tinker: Comscore TV is the first big data TV measurement product to receive MRC accreditation is a major milestone for both comscore and for the industry.
John Philip Tinker: We're now the only TV measurement solution with accreditation for both national and local TV measurement.
John Philip Tinker: At the end of the day, what these certifications mean is that the industry has decided that our TV and cross-platform products are transparent and can be trusted by the buyers and sellers of billions of dollars in advertising, and that Comscore is a leading choice for measuring TV and cross-platform audiences for the industry. We saw more than $4 billion in advertising trade on Comscore currency in 2023, a number we fully expect to grow in 2024 and beyond. Looking at the first quarter, in terms of results, it was certainly a mixed bag.
John Philip Tinker: At the end of the day, what the certifications mean is that the industry has decided that our TV and cross platform products are transparent and can be trusted by the buyers and sellers of billions of dollars in advertising and that Comscore is a leading choice for measuring TV and cross platform audiences for the industry.
John Philip Tinker: We saw more than $4 billion in advertising trade on Comscore currency and 23 number we fully expect to grow in 'twenty four and beyond.
John Philip Tinker: Revenue was down 5% from a quarter ago, and while we did expect Q1 to be softer year over year, as we noted in our last call, we did end up coming short of where we expected. However, adjusted EBITDA for the quarter was up 55% to $8.1 million, a testament to our continued discipline in managing costs and our work streamlining our product. And despite the revenue print, there is a lot to be excited about as we continue to transform the business.
John Philip Tinker: Looking at the first quarter in terms of results. It was certainly a mixed bag.
John Philip Tinker: Revenue was down 5% from a quarter a year ago and while we did expect Q1 to be softer year over year. As we noted in our last call. We did end up coming short of where we expected. However, adjusted EBITDA for the quarter was up 55% to $8 1 million a testament to our continued discipline in managing costs and our work.
John Philip Tinker: Streamlining our products.
John Philip Tinker: And despite the revenue print there is a lot to be excited about as we continue to transform the business, we see persistent robust double digit growth in our cross platform products, which is evidence that our strategy of helping clients optimize for a world where linear connected TV and digital needs to be managed holistically and that's working.
John Philip Tinker: We see persistent, robust, double-digit growth in our cross-platform products, which is evidence that our strategy of helping clients optimize for a world where linear, connected TV, and digital need to be managed holistically is working. A meaningful contributor to the shortfall in revenue to note was a number of platform integrations that are currently underway that are just taking longer to scale than what was originally planned. As we continue to transform the business and derive a greater share of our revenue from the usage of our cross-platform products, that is, billing on a CPM basis rather than a syndicated fee, integration delays like this shift the timing of revenue but not our confidence in it as we execute this transformation.
John Philip Tinker: A meaningful contributor to the shortfall in revenue to note was a number of platform integrations that are currently underway that are just taking longer to scale than what was originally planned as we continue to transform the business and derive a greater share of our revenue from the usage of our cross platform products that is billing on a CPM basis.
John Philip Tinker: Other than a syndicated fee integration delays like this shift the timing of revenue, but not our confidence in it as we execute this transformation.
John Philip Tinker: As a reminder, much of our revenue today is made up of syndicated fees from contracts signed in prior quarters and, in some cases, prior years. For example, approximately 20% of our revenue in the first quarter was directly attributable to contracts that closed in 2024, whereas more than 30% of it was from contracts signed in 2022 or earlier. As transactional revenue becomes a more significant portion of our top line and we anniversary legacy contracts, we expect to see continued growth accelerate. With that, I will turn it over to Mary Margaret to take you through the quarter in a bit more detail. Thank you.
John Philip Tinker: As a reminder, much of our revenue today is made up of syndicated fees from contracts signed in prior quarters and in some cases prior years for example, approximately 20% of our revenue in the first quarter was directly attributable to contracts that closed in 'twenty four whereas more than 30% of it was from contract signed 2000 <unk>.
Mary Margaret Curry: 22 earlier as transactional revenue becomes a more significant portion of our topline and we anniversary legacy contracts, we expect to see continued growth accelerate.
John Philip Tinker: With that let me turn it over to Mary Margaret to take you through the quarter in a bit more detail.
Mary Margaret Curry: Thank you John.
Mary Margaret Curry: Total revenue for the first quarter was $86.8 million, down 5.2% from $91.6 million the same quarter a year ago. Cross-platform solutions revenue of $37.1 million was down 9.7% from 2023, primarily due to a decline in our national PV revenue. There are two drivers of this decline.
Mary Margaret Curry: Total revenue for the first quarter was $86 8 million down five 2% from $91 6 million the same quarter a year ago.
Mary Margaret Curry: Cross platform solutions revenue of $37 1 million was down nine 7% from 2023, primarily due to a decline in our national TV revenue.
John Philip Tinker: The first is lower revenue related to contract renewals as a result of the ad spend pressures the major networks have been facing. The second driver is lower variable revenue related to cloud computing and processing reimbursements we receive from certain enterprise clients. However, the corresponding expense we also incur to service these contracts decreased by the same amount during the quarter, resulting in a net zero impact on our bottom line. The decline in national TV revenue was partially offset by growth in our movies business of almost 5% compared to the prior year.
Mary Margaret Curry: There are two drivers of this decline.
John Philip Tinker: The first is lower revenue related to contract renewals as a result of the absolute pressures the major networks have been facing.
John Philip Tinker: The second driver is lower variable revenue related to cloud computing and processing reimbursements, we received from certain enterprise clients.
John Philip Tinker: However, the corresponding expense we also incur to service these contracts decreased by the same amount during the quarter, resulting in a net zero impact on our bottom line.
John Philip Tinker: The decline in National television revenue was partially offset by growth in our movies business about one 5% compared to the prior year.
John Philip Tinker: Digital Ad Solutions revenue of $49.7 million was down 1.5% from the prior year quarter, primarily driven by lower revenue from syndicated digital renewals executed in prior years. As these contracts begin to approach their anniversary dates, we expect to see the year-over-year variances begin to level out. The decline in syndicated digital was partially offset by the continued growth of our cross-platform products, with Proxemic and CCR growing more than 28% on a combined basis over the prior year quarter.
John Philip Tinker: Digital AD solutions revenue of $49 7 million was down one 5% from the prior year quarter, primarily driven by lower revenue from syndicated digital renewals executed in prior years.
John Philip Tinker: As these contracts begin to approach the anniversary dates we expect to see that year over year variance does begin to level out.
John Philip Tinker: The decline in syndicated digital was partially offset by the continued growth of our cross platform products with proximity and CCR growing more than 28% on a combined basis over the prior year quarter.
John Philip Tinker: Adjusted EBITDA for the first quarter was $8.1 million, up 55.1% from the prior year quarter, resulting in an adjusted EBITDA margin of 9.4%. We remain focused on making strategic decisions about where we're spending and are continuing to identify ways to operate more efficiently. Our core operating expenses for the quarter were down 4.5% over the prior year, primarily due to lower employee compensation as a result of our restructuring. We've also chosen to make investments in the areas where we see the most opportunity for growth, which includes shoring up the data assets and the technology we need as we work to transform our business. I'll turn it back over to John to continue the discussion.
John Philip Tinker: Adjusted EBITDA for the first quarter was $8 1 million up 55, 1% from the prior year quarter, resulting in an adjusted EBITDA margin of nine 4%.
John: We remain focused on making strategic decisions about where we're spending and are continuing to identify ways to operate more efficiently.
John Philip Tinker: Our core operating expenses for the quarter were down four 5% over the prior year, primarily due to lower employee compensation as a result of our restructuring efforts.
John: We've also chosen to make investments in the areas, where we see the most opportunity for growth, which includes shoring up the data assets and the technology, we need as we work to transform our business.
John Philip Tinker: I'll turn it back over to John to continue the discussion.
John: Thanks, Mary Margaret.
John Philip Tinker: I've heard from many of our shareholders, both large and small, that the way we've historically represented our solution groups from a reporting standpoint has made it difficult to understand our business. As the market and our strategy have evolved over time, it's become clear that our solution groups are no longer aligned with how we run the business.
John: I've heard from many of our shareholders, both large and small that the way we have historically represented our solution groups from a reporting standpoint has made it difficult to understand our business.
John Philip Tinker: As the market and our strategy has evolved over time, it's become clear that our solution groups are no longer aligned with how we run the business.
John Philip Tinker: Investors being able to better understand our business is something that's important to us. So starting this quarter, we're going to begin reporting our revenue in new solution groups. Fundamentally, Comscore does two things.
John Philip Tinker: Investors being able to better understand our business is something that's important to us. So starting this quarter, we're going to get we're going to begin reporting our revenue in new solution groups.
John Philip Tinker: Fundamentally comscore does two things.
John Philip Tinker: First and foremost, we measure audiences across both content and ads. And second, we deliver meaningful insights that leverage the big data scale that we have. And that's precisely how we're going to organize our solution groups going forward, into two groups built around those two things. The first solution group is content and ad measurement, which includes our syndicated audience measurement products, like Media Metrics, Comscore TV, and our movie business, along with our cross-platform offering, like CCR and Proxima.
John Philip Tinker: First and foremost we measure audiences across both content and ads and second we deliver meaningful insights that leverage the big data scale that we have.
John Philip Tinker: And Thats precisely how we're going to organize our solution groups going forward into two groups built around those two things.
John Philip Tinker: The first solution group is content and AD measurement, which contains our syndicated audience measurement products like media Metrix, Comscore TV and our movies business, along with our cross platform offerings like CCR and <unk>.
John Philip Tinker: This group accounted for nearly 85% of our revenue last year. The second solution group, research and insight, contains the more bespoke work we do for our clients, things like custom data feeds, our survey business, our consumer brand health business, and our brand survey business, along with other outcome measurement deliverables. This group accounted for approximately 15% of our revenue last year.
John Philip Tinker: This group accounted for nearly 85% of our revenue last year.
John Philip Tinker: The second solution group research and insight solutions contain.
John Philip Tinker: Contains the more bespoke work, we do for our clients things like custom data feeds our survey business, our consumer brand health business and our brand survey business.
John Philip Tinker: Along with other outcome measurement deliverables.
John Philip Tinker: This group accounted for approximately 15% of our revenue last year.
John Philip Tinker: Those two solution groups, content and ad measurement, coupled with research and insight solutions, better align with how we run the business, and we think we'll make it easier for everyone on this call to understand where we're going and how we're doing. Taking a closer look at the Content and Ad Measurement solution group, we look at this group in two distinct parts. Both parts are focused on delivering differentiated measurement solutions for modern media, measurement that's built for the programmatic world.
John Philip Tinker: Those two solution groups content and AD measurement, coupled with research and insight solutions better align with how we run the business and we think will make it easier for everyone on this call to understand where we're going and how we're doing.
John Philip Tinker: Taking a closer look at the content and AD measurement solution group, we look at this group in two distinct parts. Both parts are focused on delivering delivering differentiated measurement solutions for modern media measurement, that's built for the programmatic world.
John Philip Tinker: The first is our syndicated audience business. This includes Comscore TV, both national and local, along with media and video metrics, our digital offering, coupled with our movies business. These are our core syndicated content audience measurement products. Looking forward, the expected long-term growth rate for this part of the solution group is in the low single digits.
John Philip Tinker: The first is our syndicated audience business. This includes Comscore TV, both national and local along with media and video Metrix, our digital offerings.
John Philip Tinker: Coupled with our movies business.
John Philip Tinker: These are our core syndicated content audience measurement products.
John Philip Tinker: Looking forward the expected long term growth rate for this part of the solution group is in the low single digits.
John Philip Tinker: A faster-growing part of this solution group is our cross-platform product suite, which you've heard us talk quite a bit about. This includes Comscore campaign ratings and Proxemic by Comscore. CCR Measures Advertising Across Platforms, linear, digital, social, and connected TV, providing clients with a deduplicated view of audiences that enables advertisers to optimize their campaigns while they're in flight. Proxemic, which we've referred to in the past as our activation business, is a leading source for AI-enabled, ID-free, cross-platform audience segments for advertisers and audience enrichment services for publishers and broadcast
John Philip Tinker: The second faster growing part of this solution group is our cross platform product suite, which you've heard us talk quite a bit about this includes comscore campaign ratings and proximate by Comscore.
John Philip Tinker: CCR measures advertising across platforms linear digital social and connected TV, providing clients with a deep duplicated view of audiences that enables advertisers to optimize their campaigns, while they are in flight.
John Philip Tinker: <unk>, which we referred to in the past as our activation business as a leading source for AI enabled free cross platform audience segments for advertisers and audience enrichment services for publishers and broadcasters.
John Philip Tinker: The cross-platform part of the Content and Ad Measurement Solution Group is where we expect to see significant growth continue with an expected long-term growth rate of above 25 percent. The next solution group, Research and Insight Solutions, is home to our custom research and insight work. This is bespoke work tailored to the specific needs that our clients have. We expect a long-term growth rate here in the low single digits, and the work that we do enhances the value of the products and services that are in the content and ad measurement solution group.
John Philip Tinker: The cross platform part of the content and AD measurement solution group is where we expect to see significant growth continue with an expected long term growth rate above 25%.
John Philip Tinker: The next solution group research and insight solutions is home to our custom research and insight work. This is bespoke work tailored to the specific needs that our clients have.
John Philip Tinker: We expect the long term growth rate here in the low single digits and the work that we do enhances the value of the products and services that are in the content and AD measurement solution group. This includes things like custom data feeds to meet data structure of privacy needs that our clients have helped them better understand their customers their competitive landscape.
John Philip Tinker: This includes things like custom data feeds to meet data structure or privacy needs that our clients have, helping them better understand their customers, their competitive landscape, and the outcomes driven by their advertisers. A recent example of this is the deal that we announced with Kachava at the New Front last week. This deal highlights our outcome measurement capabilities, where through our partnership with Kachava, we are able to show the lift in digital activity that's tied directly to linear TV advertising.
John Philip Tinker: And the outcomes driven by their advertising.
John Philip Tinker: A recent example of this is the deal that we announced with could shop at the new fronts last week. This deal highlights our outcome measurement capabilities, where through our partnership with Catawba, We are able to show the lift in digital activity, that's tied directly to linear TV advertising.
John Philip Tinker: This new collaboration is one that we're incredibly excited about as we strive to meet the varied and evolving needs of the market. With that, I'll turn it over to Mary Margaret to talk about our Q1 performance based on these new solution groups.
John Philip Tinker: This new collaboration is one that we're incredibly excited about as we strive to meet the varied and evolving needs in the market.
John Philip Tinker: With that let me turn it over to Mary Margaret to talk about our Q1 performance based on these new solution groups.
Mary Margaret Curry: Thank you, John. Looking at Q1 and these new solution groups, content and ad measurement revenue of $72.6 million was down 5.3% from $76.7 million the same quarter a year ago. The decline was driven by lower revenue from our syndicated audience offering, primarily related to our national TV and syndicated digital products. This decline was partially offset by growth in our movies business, as well as growth in our cross-platform revenue.
Mary Margaret Curry: Thank you John.
Mary Margaret Curry: Looking at Q1, and these new solution groups content and AD measurement revenue of $72 6 million was down five 3% from $76 7 million the same quarter a year ago.
Mary Margaret Curry: The decline was driven by lower revenue from our syndicated audience offering primarily related to our national television in syndicated digital products.
Mary Margaret Curry: This decline was partially offset by growth in our movie business as well as growth in our cross platform revenue.
Mary Margaret Curry: Research and Insight Solutions revenue of $14.2 million was down 4.5% from $14.8 million in the prior year quarter, primarily driven by lower deliveries of certain custom digital products. Turning out guidance for 2024. Based on current trends and expectations, we are maintaining the full year revenue and adjusted EBIT guidance we laid out in the last earnings call. As a reminder, we previously discussed certain factors that impact the timing of revenue growth as we move through the year, including the ramp-up of Proxemic and CCR, the improvements that we're seeing in syndicated digital churn, and the continued impact of spending pressures on national TV and certain custom products.
Mary Margaret Curry: Research and insight solutions revenue of $14 2 million was down four 5% from $14 8 million in the prior year quarter, primarily driven by lower deliveries of certain custom digital products.
Mary Margaret Curry: Turning now to guidance for 2024.
Mary Margaret Curry: Based on current trends and expectations, we are maintaining our full year revenue and adjusted EBITDA guidance, we laid out in the last earnings call.
Mary Margaret Curry: As a reminder, we previously discuss certain factors that impacted the timing of revenue growth as we move through the year.
Mary Margaret Curry: <unk> the ramp up of approximate can CCR.
Mary Margaret Curry: The improvement that we're seeing in syndicated digital churn.
Mary Margaret Curry: And the continued impact of spending spending pressures on national TV and certain custom product.
Mary Margaret Curry: As a result, we expect revenue in the second quarter of 2024 to be lower than it was in the second quarter of 2023, with revenue growth building in the back half of the year. As we look ahead to the back half of 2024, we remain confident that we'll see things stabilize and see our cross-platform growth accelerate. Specifically, for syndicated audience, we continue to see signs that our turn metrics are trending in the right direction, and we see the average selling price continuing to grow as we roll out enhancements for our digital clients. And for Cross Platform, as we complete the integrations that we mentioned earlier, we continue to see signs that adoption and usage will scale as we move into Q3.
Mary Margaret Curry: As a result, we expect revenue in the second quarter of 2024 to be lower than it was in the second quarter of 2023 with revenue growth building in the back half of the year.
Mary Margaret Curry: <unk>.
Mary Margaret Curry: As we look ahead to the back half of 2024, we remain confident that we'll see things stabilize and see our cross platform growth accelerate.
Mary Margaret Curry: Specifically for syndicated audience, we continue to see signs that our term metrics are trending in the right direction and we see the average selling price continuing to grow as we rollout enhancements for our digital client.
Mary Margaret Curry: And cross platform as we complete the integrations that we mentioned earlier, we continue to see signs that adoption and usage will scale as we move into Q3.
Mary Margaret Curry: Finally, in research and insight solutions, we expect to see more revenue as data feed deliveries ramp up, as our collaboration with Conchaba scales, and as political spin accelerates. With that, I'll now turn it back over to the operator for questions.
Mary Margaret Curry: Finally in research and insight solution, we expect to see more revenue as data feed deliveries ramp up as our collaboration with control of a scale and a political spend accelerate.
Speaker Change: With that I'll now turn it back over to the operator for questions.
Operator: As a reminder, if you'd like to ask a question at this time, please press star 1 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 1 again. Our first question comes from Jason Kreyer with Craig Hallam.
Mary Margaret Curry: Okay.
Mary Margaret Curry: As a reminder, if you'd like to ask a question at this time. Please press star one one on your telephone and wait for your name to be announced.
Operator: Draw. Your question. Please press star one again.
Jason Michael Kreyer: Our first question comes from the line of Jason <unk> with Craig Hallum.
Jason Michael Kreyer: Thank you guys. So John, I just want to kind of see if you can break down or illustrate the confidence that you have in the guide here. You know, we're kind of digging out of a hole in Q1 and Q2. And so that's going to imply a much more substantial ramp when we get into the back half of the year. So can you just give a little bit more detail on what you think kind of reemerges to give you confidence in that background?
Jason Michael Kreyer: Thank you guys. So John I, just wanted to kind of TV can breakdown or illustrate the confidence that you have in the guide here.
John: Kind of digging out of a hole in Q1, and Q2 and so that's going to imply a much more substantial ramp when we get into the back half of the year. So can you just give a little bit more detail on what do you think kind of reemerge as to give you confidence in that background Bob.
John Philip Tinker: Yeah, thanks, Jason. As you recall, from the previous call that we had, we were pretty clear that the first half of the year was going to be a bit softer, and that the growth in the second half was going to be based on the acceleration that we have with our cross-platform integrations across the programmatic environments. And we're seeing evidence of that scale quite nicely, and we've got a number of platform integrations that are currently in the works that will be ready for second half revenue acceleration.
John: Yes, thanks, Jason.
John Philip Tinker: As you'll recall from the from the previous call that we had we were we were pretty clear that the first half of the year was going to be.
John Philip Tinker: A bit softer and that the growth in the second half was going to be based off of the acceleration that we have with our cross platform.
John Philip Tinker: Integrations across the programmatic environment, and we're seeing that we're seeing evidence of that scale quite nicely.
John Philip Tinker: And we've got a number of platform integrations that are currently in the works that will be ready for second half.
John Philip Tinker: I think the other thing to keep in mind is that by the second half, we start to see syndicated deals related to prior contracts that date back to certainly before the first half of 23, and in some cases, before 22. And as we anniversary those deals, we start to build on the momentum that we have in the marketplace with things like MRC accreditation and adoption more broadly of Comscore as a currency in the marketplace.
John Philip Tinker: Revenue acceleration I think the other thing to keep in mind is that by the second half we start to anniversary.
John Philip Tinker: Syndicated deals related to prior contracts that date back to <unk>.
John Philip Tinker: Certainly before the first half of 'twenty three and in some cases in 'twenty, two and as those deals those as we anniversary those deals we start to build on the momentum that we have in the marketplace with things like MRC accreditation and adoption more broadly of Comscore as a currency in the marketplace.
John Philip Tinker: Additionally, Jason, we've got political ad spend that's going to scale in the second half of the year. And then specifically with our syndicated digital business, the churn metrics that we monitor internally on the health of the renewal and our client set there have continued to improve, which gives us a great deal of confidence that the back half of the year looks pretty promising for our syndicated digital business, which has certainly been a pain point for plenty of quarters now.
John Philip Tinker:
John Philip Tinker: Additionally, Jason we've got political AD spend that's going to scale in the second half of the year and then <unk>.
John Philip Tinker: Specifically with our syndicated digital business the churn metrics that we monitor internally on the health of.
John Philip Tinker: The renewal in our client set there has continued to improve which gives us a great deal of confidence that the.
John Philip Tinker: The back half of the year, it looks pretty promising for our syndicated digital business, which is.
John Philip Tinker: Then certainly a pinpoint for plenty.
John Philip Tinker: Plenty of quarters now.
Jason Michael Kreyer: Just double-clicking on that, I mean, the cross-platform business, obviously you called out 28% growth, it's a small base, right, it's $8 million in quarterly contribution today. So, obviously, that's only one component of, you know, the re-acceleration you're expecting in the back half of the year. Just given the kind of presentation of new reporting segments, can you maybe walk through how you expect 2024 to progress on, you know, research versus the kind of syndicated audience or the content groupies?
John Philip Tinker: Just double clicking on that I mean, the cross platform business.
Jason Michael Kreyer: You called out 28% growth.
Jason Michael Kreyer: It's a small base right at $8 million in quarterly contribution today.
Jason Michael Kreyer: Obviously, that's only one component of the Reacceleration youre expecting in the back half of the year, just given kind of the presentation of new reporting segments can you maybe walk through how you expect 2024 to progress.
Jason Michael Kreyer: The research versus.
Jason Michael Kreyer: That kind of a syndicated audience or the content group.
John Philip Tinker: Yeah, I, we fully expect that the New Solution Groups, our syndicated audience business, in the back half of the year really starts to flatten itself out for the reasons that I described. Again, we start the anniversary, some legacy deals that we've got visibility into. And the syndicated digital business, which is the largest portion of our syndicated offering, has turned a corner. That gets at the churn metrics that we monitor, the list of clients that we know are up here as we get into the second half of the year.
Jason Michael Kreyer: Yes.
John Philip Tinker: We fully expect that.
John Philip Tinker: Sure.
John Philip Tinker: Yes.
John Philip Tinker: New solution groups, our syndicated audience business in the back half of the year really starts to flatten itself out for the reasons that I described again, we start to anniversary some legacy deals.
John Philip Tinker: We've got visibility into and the syndicated digital business, which is the largest portion of.
John Philip Tinker: Our syndicated.
John Philip Tinker: Offering.
John Philip Tinker: Is is has turned the corner and that gets at the churn metrics that we monitor the list of clients that we know are up here as we get into the second half of the year. So those two things coupled with <unk>.
John Philip Tinker: So those two things coupled with the number of platform integrations that we're signing up related to cross-platform across Proxemic and CCR, we feel really good about what that looks like here in the second half of the year. And let's be honest, that's where the puck is going. The puck is going to cross-platform solutions that can be activated and enabled for clients across the media ecosystem in programmatic environments, and that is exactly where we're focused, and that is exactly where we're winning. And so, lastly...
John Philip Tinker: The number of platform integrations that were signing up related to cross platform across proximate can CCR.
John Philip Tinker: We feel really good about what that looks like here in the second half of the year and let's be honest, that's where the puck is going the puck is going to.
John Philip Tinker: Cross platform solutions that can be activated and enabled for clients across the media ecosystem and programmatic environment and that is exactly where we're focused and that is exactly where we're winning.
Jason Michael Kreyer: And so lastly, for me, just on that proxemic side, you called out the 75% growth in impressions. Now, I don't think that correlates directly to revenue. You just gave the cross-platform figure, but I'm just curious, can you remind us maybe of revenue recognition and how that flows in? Is that 75% growth in impressions a leading indicator for what you're expecting as we move forward this year?
Speaker Change: And lastly from me just on that proximate side you called out.
Jason Michael Kreyer: 75% growth in impressions I don't think that correlates directly to revenue you just gave the cross platform figure, but I'm. Just curious can you remind us maybe the revenue recognition and how that flows in is that 75% growth in impressions is that kind of a leading indicator for what youre expecting as we can.
Jason Michael Kreyer: Move forward this year.
John Philip Tinker: Yeah, so I think there's a mix shift going on here, Jason, but I think I would look at it as a leading indicator for how that part of the business is scaling. And so as we lean into more ID-free solutions, which is a fast-growing part of that business, the price mix starts to shift in favor of growth in the pricing component of that P times Q equation, which is how we recognize revenue in that side of the business.
Jason Michael Kreyer: Yes, so I think there's a mix there's a mix shift in there.
John Philip Tinker: Jason, but I think I would look at it as a leading indicator for how that part of the business is scaling and so as we lean into more.
John Philip Tinker: Free solutions, which is a fast growing part of that.
John Philip Tinker: That business the price mix starts to shift in favor of.
John Philip Tinker: Growth in the pricing component of that P times, Q equation, which is which is how we recognize revenue in that side of the business.
Jason: Thanks, John.
Operator: That concludes today's question and answer session. I'd like to turn the call back to John Carpenter for his closing remarks.
John Philip Tinker: That concludes today's question and answer session I would like to turn the call back to John Carpenter for closing remarks.
John Philip Tinker: Thank you everybody for joining us this evening. We appreciate it and look forward to talking to many of you soon.
Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.
John Philip Tinker: Thanks, everybody for joining us. This evening, we appreciate it and look forward to talking to many of you soon.
Speaker Change: This concludes today's conference call. Thank you for participating you may now disconnect.
Operator: Okay.
Operator: Okay.
Operator: [music].