Comscore Reports Fourth Quarter and Full Year 2023 Results RESTON, Va., March 06, 2024 - Comscore, Inc. (Nasdaq: SCOR), a trusted partner for planning, transacting and evaluating media across platforms, today reported financial results for the fourth quarter and full year ended December 31, 2023.FY 2023 Financial Highlights
Revenue for 2023 was $371.3 million compared to $376.4 million in 2022
Net loss of $79.4 million compared to $66.6 million in 2022, resulting primarily from non-cash goodwill impairment charges of $78.2 million and $46.3 million, respectively
Adjusted EBITDA of $44.0 million compared to $37.5 million in 2022
FX adjusted EBITDA of $46.9 million compared to $36.3 million in 2022
Cash, cash equivalents and restricted cash of $22.9 million versus $20.4 million as of December 31, 2022
Q4 2023 Financial Highlights
Revenue for the fourth quarter was $95.1 million compared to $98.2 million in Q4 2022
Net loss of $28.4 million compared to net income of $0.1 million in Q4 2022, resulting primarily from a non-cash goodwill impairment charge of $34.1 million in Q4 2023
Adjusted EBITDA of $16.4 million compared to $12.0 million in Q4 2022
FX adjusted EBITDA of $18.7 million compared to $16.6 million in Q4 2022
2024 Financial Outlook
Full year revenue expected to be between $375 million and $390 million
Adjusted EBITDA margin expected to be between 12% and 15% for the year
As we reflect on 2023, there is a lot to be proud of. While we fell short of our top line revenue goals for the year, we made substantial progress on changing the way we operate, which allowed us to achieve our adjusted EBITDA goals. I appreciate the hard work our employees have done to deliver for our stakeholders throughout the year, said Jon Carpenter, CEO of Comscore. As we begin 2024, I remain confident that we are moving the business in the right direction as we execute on our turnaround. Were focused on providing the fast and accurate cross-platform data that helps our clients buy, sell and optimize media more effectively. Our double-digit growth in local TV, coupled with accelerated growth of our Comscore Campaign Ratings (CCR) product and our Proximic offerings - a combined 34% over 2022 - are clear signs that the value were able to offer to a rapidly changing advertising ecosystem is meeting a large and growing need. I look forward to whats ahead and am committed to delivering for both our clients and our shareholders in 2024.
Fourth Quarter Summary Results
Revenue in the fourth quarter was $95.1 million, down 3.2% from $98.2 million in Q4 2022, primarily driven by a decline in Cross Platform Solutions revenue from lower renewals of our national TV offering, partially offset by growth in our movies business. Digital Ad Solutions revenue was flat compared to the prior year, with declines in deliveries of certain custom digital products offset by an increase in Activation (Proximic) and CCR revenue, which on a combined basis delivered growth of over 50% compared to Q4 2022.
Our core operating expenses, which include cost of revenues, sales and marketing, research and development and general and administrative expenses, were $83.9 million, down 4.5% compared to $87.9 million in Q4 2022, primarily due to a decline in employee compensation as a result of our restructuring efforts, lower variable compensation and a higher amount of capitalization related to internally developed software as we increased our focus on product infrastructure and innovation in 2023.
Net loss for the quarter was $28.4 million, compared to net income of $0.1 million in Q4 2022, resulting in net (loss) income margins of (29.9)% and 0.1% of revenue, respectively. Included in net loss for Q4 2023 was a non-cash impairment charge of $34.1 million related to goodwill. After accounting for dividends on our convertible preferred stock, loss per share attributable to common shares was $(6.69), compared to loss per share of $(0.80) in Q4 2022.
Non-GAAP adjusted EBITDA for the quarter was $16.4 million, compared to $12.0 million in Q4 2022, resulting in adjusted EBITDA margins of 17.3% and 12.2%, respectively. Excluding the impact of foreign currency transactions, FX adjusted EBITDA for the quarter was $18.7 million, compared to $16.6 million in Q4 2022. Adjusted EBITDA and adjusted EBITDA margin exclude stock-based compensation, amortization of cloud-computing implementation costs, restructuring costs, change in fair value of contingent consideration and warrants liability, impairment of goodwill, impairment of right-of-use and long-lived assets, transformation costs (added in Q3 2023 and applied to prior periods), and other items as presented in the accompanying tables. FX adjusted EBITDA excludes these items as well as gain/loss from foreign currency transactions.
Full-Year Summary Results
Revenue for 2023 was $371.3 million, down 1.3% compared to $376.4 million in 2022. Digital Ad Solutions revenue declined 1.7% from 2022, primarily due to lower deliveries of certain custom digital products and lower revenue from our syndicated products, partially offset by increased usage of our Activation products and growth in CCR. On a combined basis, revenue from Activation and CCR grew 34% over 2022. Cross Platform Solutions revenue was down 0.9% from 2022, primarily driven by a decline in national TV revenue due to lower renewals, partially offset by double-digit growth in local TV revenue and 4% growth in our movies business over 2022 due to higher renewals and new business.
Our core operating expenses, which include cost of revenues, sales and marketing, research and development and general and administrative expenses, were $353.8 million, down 4.9% compared to $371.9 million in 2022. The primary driver of the decline was employee compensation, which decreased from ongoing restructuring efforts, lower variable compensation
