comScore Inc (SCOR) Reports Q3 2023 Earnings: Revenue Down 1.9%, Net Income of $2.6M
comScore Inc (NASDAQ:SCOR) reported Q3 2023 revenue of $91.0 million, a decrease of 1.9% from $92.8 million in Q3 2022.
The company posted a net income of $2.6 million, a significant turnaround from a net loss of $52.4 million in Q3 2022.
Adjusted EBITDA for the quarter was $13.4 million, up from $11.7 million in Q3 2022.
Full-year 2023 revenue guidance has been lowered, while adjusted EBITDA guidance remains unchanged.
comScore Inc (NASDAQ:SCOR), a trusted partner for planning, transacting, and evaluating media across platforms, released its financial results for the quarter ended September 30, 2023, on November 6, 2023. Despite challenging end-markets impacting revenue, the company reported growth in local TV and a significant increase in profitability and adjusted EBITDA.
Financial Performance
Revenue for the third quarter was $91.0 million, down 1.9% from $92.8 million in Q3 2022. The company's net income was $2.6 million, compared to a net loss of $52.4 million in Q3 2022. Adjusted EBITDA for the quarter was $13.4 million, up from $11.7 million in Q3 2022.
Revenue Breakdown
Revenue from Digital Ad Solutions declined 3.6% from Q3 2022, primarily due to the timing of deliverables for certain custom digital products and lower revenue from syndicated digital products. However, this was partially offset by increased usage of the Activation product and growth in Comscore Campaign Ratings (CCR). Cross Platform Solutions revenue was up 0.2% from Q3 2022, driven by continued double-digit growth in local TV revenue.
Operating Expenses and Net Income
Core operating expenses, which include cost of revenues, sales and marketing, research and development, and general and administrative expenses, were $86.3 million, a decrease of 4.5% compared to $90.4 million in Q3 2022. The primary driver of the decline was employee compensation, which decreased from ongoing restructuring efforts. Net income was $2.6 million in Q3 2023, compared to a net loss of $52.4 million in Q3 2022.
Balance Sheet and Liquidity
As of September 30, 2023, cash, cash equivalents, and restricted cash totaled $30.3 million. Total debt principal, including $16.0 million in outstanding borrowings under the senior secured revolving credit agreement, was $21.0 million.
2023 Outlook
Based on current trends and expectations, comScore Inc (NASDAQ:SCOR) believes full-year 2023 revenue will be flat to down 1% compared to 2022 and is reaffirming its guidance for an adjusted EBITDA margin in the double digits.
CEO Commentary
Despite challenging end-markets that impacted revenue in the quarter, we delivered double-digit growth in local TV, more than 20% growth in Activation and Comscore Campaign Ratings, and a significant increase in profitability and adjusted EBITDA. As we close out 2023 and look to 2024, we will continue to leverage Comscore's complete view of audiences across platforms to deliver value for our clients and shareholders," said Jon Carpenter, CEO of comScore.
Explore the complete 8-K earnings release (here) from comScore Inc for further details.
This article first appeared on GuruFocus.
