Comscore Reports Mixed Q3 Results with Revenue Growth and Significant Losses

Comscore, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, revealing a mixed performance in revenue and significant losses. The company generated revenues of $52.0 million for the third quarter, a slight increase from $50.5 million in the same period of 2023. However, for the nine months ended September 30, 2024, total revenues decreased to $154.0 million from $155.4 million year-over-year.

The cost of revenues for the third quarter was $12.5 million, down from $14.8 million in the prior year, while the nine-month cost of revenues slightly decreased to $154.0 million from $155.4 million. Despite the revenue increase in Q3, Comscore reported a net loss of $60.6 million, a stark contrast to a net income of $2.6 million in Q3 2023. The net loss available to common stockholders for the same period was $(65.2 million), compared to $(1.7 million) in the previous year. The net loss per share for Q3 2024 was $(12.79), compared to $(0.34) in Q3 2023.

The company’s accumulated deficit increased to $(1.47 billion) as of September 30, 2024, from $(1.40 billion) at the end of 2023. Total stockholders' equity turned negative, dropping to $(2.7 million) from $56.1 million at the end of 2023, primarily due to the significant goodwill impairment charge of $63.0 million recorded in Q3 2024, compared to $44.1 million in the same period of 2023.

Comscore's cash and cash equivalents decreased to $20.0 million as of September 30, 2024, down from $22.8 million at the end of 2023. The company also reported a decrease in accounts receivable, which fell to $55.2 million from $63.8 million at the end of 2023.

Strategically, Comscore executed a 1-for-20 reverse stock split in December 2023, reducing the number of authorized shares significantly. The company also issued 13.3 million shares of Preferred Stock in July 2024 to existing holders in exchange for the cancellation of accrued dividends totaling $32.8 million. This issuance adjusted the special dividend threshold to $47.0 million.

In terms of operational changes, Comscore is undergoing a restructuring plan initiated in September 2022, which includes workforce reductions and reallocating resources, with estimated exit-related costs between $10 million and $15 million expected to be completed in 2024. Restructuring costs incurred for the nine months ended September 30, 2024, totaled $320.3 million.

Overall, Comscore's financial results reflect ongoing challenges, including significant losses and a decline in total revenues, alongside strategic efforts to stabilize its financial position through restructuring and capital management.