☑ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 54-1955550 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||||||||
Common Stock, par value $0.001 per share | SCOR | NASDAQ Global Select Market |
Large accelerated filer | ☐ | Accelerated filer | ☑ | |||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||||||||
Emerging growth company | ☐ |
ITEM 1. | FINANCIAL STATEMENTS |
As of | As of | ||||||||||
June 30, 2022 | December 31, 2021 | ||||||||||
(In thousands, except share and par value data) | (Unaudited) | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 19,634 | $ | 21,854 | |||||||
Restricted cash | 425 | 425 | |||||||||
Accounts receivable, net of allowances of $911 and $1,173, respectively ($1,834 and $3,606 of accounts receivable attributable to related parties, respectively) | 56,566 | 72,059 | |||||||||
Prepaid expenses and other current assets | 14,593 | 14,769 | |||||||||
Total current assets | 91,218 | 109,107 | |||||||||
Property and equipment, net | 36,462 | 36,451 | |||||||||
Operating right-of-use assets | 26,167 | 29,186 | |||||||||
Deferred tax assets | 2,738 | 2,811 | |||||||||
Intangible assets, net | 26,394 | 39,945 | |||||||||
Goodwill | 434,014 | 435,711 | |||||||||
Other non-current assets | 11,311 | 10,263 | |||||||||
Total assets | $ | 628,304 | $ | 663,474 | |||||||
Liabilities, Convertible Redeemable Preferred Stock and Stockholders' Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable ($12,063 and $6,575 attributable to related parties, respectively) | $ | 33,299 | $ | 23,575 | |||||||
Accrued expenses ($4,379 and $4,122 attributable to related parties, respectively) | 37,287 | 45,264 | |||||||||
Contract liabilities ($2,165 and $3,553 attributable to related parties, respectively) | 53,936 | 54,011 | |||||||||
Customer advances | 10,909 | 11,613 | |||||||||
Current operating lease liabilities | 7,528 | 7,538 | |||||||||
Warrants liability | 3,525 | 10,520 | |||||||||
Other current liabilities ($43 and $7,863 attributable to related parties, respectively) | 6,664 | 12,850 | |||||||||
Total current liabilities | 153,148 | 165,371 | |||||||||
Non-current operating lease liabilities | 32,348 | 36,055 | |||||||||
Non-current portion of accrued data costs ($12,087 and $7,843 attributable to related parties, respectively) | 20,781 | 16,005 | |||||||||
Revolving line of credit | 16,000 | 16,000 | |||||||||
Deferred tax liabilities | 2,997 | 2,103 | |||||||||
Other non-current liabilities ($671 and $1,582 attributable to related parties, respectively) | 13,358 | 16,879 | |||||||||
Total liabilities | 238,632 | 252,413 | |||||||||
Commitments and contingencies | |||||||||||
Convertible redeemable preferred stock, $0.001 par value; 82,527,609 shares authorized, issued and outstanding as of June 30, 2022 and December 31, 2021; aggregate liquidation preference of $204,043 as of June 30, 2022, and $211,863 as of December 31, 2021 (related parties) | 187,885 | 187,885 | |||||||||
Stockholders' equity: | |||||||||||
Preferred stock, $0.001 par value; 7,472,391 shares authorized as of June 30, 2022 and December 31, 2021; no shares issued or outstanding as of June 30, 2022 or December 31, 2021 | — | — | |||||||||
Common stock, $0.001 par value; 275,000,000 shares authorized as of June 30, 2022 and December 31, 2021; 98,538,188 shares issued and 91,773,392 shares outstanding as of June 30, 2022, and 97,172,086 shares issued and 90,407,290 shares outstanding as of December 31, 2021 | 92 | 90 | |||||||||
Additional paid-in capital | 1,689,596 | 1,683,883 | |||||||||
Accumulated other comprehensive loss | (17,183) | (12,098) | |||||||||
Accumulated deficit | (1,240,734) | (1,218,715) | |||||||||
Treasury stock, at cost, 6,764,796 shares as of June 30, 2022 and December 31, 2021 | (229,984) | (229,984) | |||||||||
Total stockholders' equity | 201,787 | 223,176 | |||||||||
Total liabilities, convertible redeemable preferred stock and stockholders' equity | $ | 628,304 | $ | 663,474 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(In thousands, except share and per share data) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Revenues (2) | $ | 91,434 | $ | 87,659 | $ | 185,400 | $ | 177,989 | |||||||||||||||
Cost of revenues (1) (2) (3) | 51,467 | 51,386 | 104,385 | 104,088 | |||||||||||||||||||
Selling and marketing (1) (3) | 17,485 | 16,530 | 34,651 | 34,357 | |||||||||||||||||||
Research and development (1) (3) | 9,917 | 10,132 | 19,449 | 20,485 | |||||||||||||||||||
General and administrative (1) (3) | 17,103 | 14,246 | 35,220 | 28,714 | |||||||||||||||||||
Amortization of intangible assets | 6,772 | 6,255 | 13,551 | 12,694 | |||||||||||||||||||
Total expenses from operations | 102,744 | 98,549 | 207,256 | 200,338 | |||||||||||||||||||
Loss from operations | (11,310) | (10,890) | (21,856) | (22,349) | |||||||||||||||||||
Other income (expense), net | 4,557 | (6,508) | 6,990 | (14,782) | |||||||||||||||||||
Gain (loss) from foreign currency transactions | 2,527 | (370) | 2,947 | 704 | |||||||||||||||||||
Interest expense, net (2) | (176) | (355) | (376) | (7,400) | |||||||||||||||||||
Loss on extinguishment of debt (2) | — | — | — | (9,629) | |||||||||||||||||||
Loss before income taxes | (4,402) | (18,123) | (12,295) | (53,456) | |||||||||||||||||||
Income tax provision | (648) | (422) | (2,031) | (1,444) | |||||||||||||||||||
Net loss | $ | (5,050) | $ | (18,545) | $ | (14,326) | $ | (54,900) | |||||||||||||||
Net loss available to common stockholders | |||||||||||||||||||||||
Net loss | $ | (5,050) | $ | (18,545) | $ | (14,326) | $ | (54,900) | |||||||||||||||
Convertible redeemable preferred stock dividends (2) | (3,868) | (3,868) | (7,693) | (4,803) | |||||||||||||||||||
Total net loss available to common stockholders | $ | (8,918) | $ | (22,413) | $ | (22,019) | $ | (59,703) | |||||||||||||||
Net loss per common share: | |||||||||||||||||||||||
Basic and diluted | $ | (0.10) | $ | (0.28) | $ | (0.24) | $ | (0.76) | |||||||||||||||
Weighted-average number of shares used in per share calculation - Common Stock: | |||||||||||||||||||||||
Basic and diluted | 92,405,250 | 81,427,971 | 92,048,120 | 78,813,987 | |||||||||||||||||||
Comprehensive loss: | |||||||||||||||||||||||
Net loss | $ | (5,050) | $ | (18,545) | $ | (14,326) | $ | (54,900) | |||||||||||||||
Other comprehensive (loss) income: | |||||||||||||||||||||||
Foreign currency cumulative translation adjustment | (4,544) | 731 | (5,085) | (1,420) | |||||||||||||||||||
Total comprehensive loss | $ | (9,594) | $ | (17,814) | $ | (19,411) | $ | (56,320) | |||||||||||||||
(1) Excludes amortization of intangible assets, which is presented as a separate line item. | |||||||||||||||||||||||
(2) Transactions with related parties are included in the line items above as follows (refer to Footnote 8, Related Party Transactions, of the Notes to Condensed Consolidated Financial Statements for additional information): |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Revenues | $ | 4,186 | $ | 4,019 | $ | 8,598 | $ | 7,875 | |||||||||||||||
Cost of revenues | 7,773 | 8,213 | 15,441 | 18,034 | |||||||||||||||||||
Interest expense, net | — | — | — | 4,692 | |||||||||||||||||||
Loss on extinguishment of debt | — | — | — | (9,608) | |||||||||||||||||||
Convertible redeemable preferred stock dividends | (3,868) | (3,868) | (7,693) | (4,803) | |||||||||||||||||||
(In thousands, except share data) | Convertible Redeemable Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Treasury stock, at cost | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2021 | 82,527,609 | $ | 187,885 | 90,407,290 | $ | 90 | $ | 1,683,883 | $ | (12,098) | $ | (1,218,715) | $ | (229,984) | $ | 223,176 | ||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (9,276) | — | (9,276) | |||||||||||||||||||||||||||||||||||||||||||||||
Convertible redeemable preferred stock dividends (1) | — | — | — | — | — | — | (3,825) | — | (3,825) | |||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock units distributed | — | — | 212,246 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Exercise of Common Stock options | — | — | 86,941 | 1 | 102 | — | — | — | 103 | |||||||||||||||||||||||||||||||||||||||||||||||
Payments for taxes related to net share settlement of equity awards | — | — | (474) | — | (1) | — | — | — | (1) | |||||||||||||||||||||||||||||||||||||||||||||||
Amortization of stock-based compensation | — | — | — | — | 1,908 | — | — | — | 1,908 | |||||||||||||||||||||||||||||||||||||||||||||||
Settlement of restricted stock unit liability | — | — | — | — | 1,719 | — | — | — | 1,719 | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | (541) | — | — | (541) | |||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | (661) | — | (3) | — | — | — | (3) | |||||||||||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2022 | 82,527,609 | $ | 187,885 | 90,705,342 | $ | 91 | $ | 1,687,608 | $ | (12,639) | $ | (1,231,816) | $ | (229,984) | $ | 213,260 | ||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (5,050) | — | (5,050) | |||||||||||||||||||||||||||||||||||||||||||||||
Convertible redeemable preferred stock dividends (1) | — | — | — | — | — | — | (3,868) | — | (3,868) | |||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock units distributed | — | — | 958,594 | 1 | — | — | — | — | 1 | |||||||||||||||||||||||||||||||||||||||||||||||
Exercise of Common Stock options | — | — | 745 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Payments for taxes related to net share settlement of equity awards | — | — | (12,646) | — | (23) | — | — | — | (23) | |||||||||||||||||||||||||||||||||||||||||||||||
Amortization of stock-based compensation | — | — | — | — | 2,011 | — | — | — | 2,011 | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | (4,544) | — | — | (4,544) | |||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | 121,357 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2022 | 82,527,609 | $ | 187,885 | 91,773,392 | $ | 92 | $ | 1,689,596 | $ | (17,183) | $ | (1,240,734) | $ | (229,984) | $ | 201,787 | ||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2022 | ||||||||||||||
(In thousands) | 2022 | 2021 | ||||||||||||
Operating activities: | ||||||||||||||
Net loss | $ | (14,326) | $ | (54,900) | ||||||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||||||
Amortization of intangible assets | 13,551 | 12,694 | ||||||||||||
Depreciation | 8,356 | 7,991 | ||||||||||||
Stock-based compensation expense | 5,798 | 8,122 | ||||||||||||
Non-cash operating lease expense | 2,990 | 2,597 | ||||||||||||
Change in fair value of contingent consideration liability | 2,403 | — | ||||||||||||
Amortization expense of finance leases | 1,360 | 941 | ||||||||||||
Deferred tax provision | 781 | 967 | ||||||||||||
Change in fair value of warrants liability | (6,995) | 16,520 | ||||||||||||
Loss on extinguishment of debt | — | 9,629 | ||||||||||||
Non-cash interest expense on senior secured convertible notes (1) | — | 4,692 | ||||||||||||
Other | 1,128 | 357 | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||
Accounts receivable | 14,413 | 5,336 | ||||||||||||
Prepaid expenses and other assets | (2,278) | 1,516 | ||||||||||||
Accounts payable, accrued expenses and other liabilities | 2,544 | 8,692 | ||||||||||||
Contract liabilities and customer advances | (1,642) | (11,608) | ||||||||||||
Operating lease liabilities | (3,850) | (2,686) | ||||||||||||
Net cash provided by operating activities | 24,233 | 10,860 | ||||||||||||
Investing activities: | ||||||||||||||
Capitalized internal-use software costs | (7,587) | (7,369) | ||||||||||||
Purchases of property and equipment | (669) | (354) | ||||||||||||
Net cash used in investing activities | (8,256) | (7,723) | ||||||||||||
Financing activities: | ||||||||||||||
Payments for dividends on convertible redeemable preferred stock (1) | (15,512) | (4,760) | ||||||||||||
Principal payments on finance leases | (1,456) | (920) | ||||||||||||
Principal payment and extinguishment costs on senior secured convertible notes (1) | — | (204,014) | ||||||||||||
Principal payment and extinguishment costs on secured term note | — | (14,031) | ||||||||||||
Proceeds from issuance of convertible redeemable preferred stock, net of issuance costs (1) | — | 188,183 | ||||||||||||
Other | (21) | (334) | ||||||||||||
Net cash used in financing activities | (16,989) | (35,876) | ||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1,208) | (322) | ||||||||||||
Net decrease in cash, cash equivalents and restricted cash | (2,220) | (33,061) | ||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 22,279 | 50,741 | ||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 20,059 | $ | 17,680 |
As of June 30, | ||||||||||||||
2022 | 2021 | |||||||||||||
Cash and cash equivalents | $ | 19,634 | $ | 16,659 | ||||||||||
Restricted cash | 425 | 1,021 | ||||||||||||
Total cash, cash equivalents and restricted cash | $ | 20,059 | $ | 17,680 |
Six Months Ended June 30, | ||||||||||||||
2022 | 2021 | |||||||||||||
Supplemental disclosures of non-cash investing and financing activities: | ||||||||||||||
Settlement of restricted stock unit liability | $ | 1,719 | $ | 7,117 | ||||||||||
Right-of-use assets obtained in exchange for finance lease liabilities | 1,106 | 1,707 | ||||||||||||
Change in accounts payable and accrued expenses related to capital expenditures | 979 | 633 | ||||||||||||
Interest paid in Common Stock (1) | — | 10,812 | ||||||||||||
Conversion shares issued as extinguishment cost on senior secured convertible notes (1) | — | 9,608 | ||||||||||||
Right-of-use assets obtained in exchange for operating lease liabilities | — | 4,840 | ||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
(In thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Change in fair value of warrants liability | $ | 4,560 | $ | (6,519) | $ | 6,995 | $ | (16,520) | ||||||||||||||||||
Change in fair value of financing derivatives | — | — | — | 1,800 | ||||||||||||||||||||||
Other | (3) | 11 | (5) | (62) | ||||||||||||||||||||||
Total other income (expense), net | $ | 4,557 | $ | (6,508) | $ | 6,990 | $ | (14,782) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Preferred stock (1) | 87,255,753 | 82,527,609 | 85,708,361 | 51,350,512 | ||||||||||||||||||||||
Warrants | 5,457,026 | 5,457,026 | 5,457,026 | 5,457,026 | ||||||||||||||||||||||
Stock options and restricted stock units | 4,461,988 | 5,247,075 | 4,566,611 | 4,435,010 | ||||||||||||||||||||||
Contingent consideration (2) | 4,174,757 | — | 4,174,757 | — | ||||||||||||||||||||||
Senior secured convertible notes | — | — | — | 2,462,981 | ||||||||||||||||||||||
Total | 101,349,524 | 93,231,710 | 99,906,755 | 63,705,529 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
(In thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
By solution group: | ||||||||||||||||||||||||||
Digital Ad Solutions | $ | 51,630 | $ | 52,497 | $ | 104,767 | $ | 105,542 | ||||||||||||||||||
Cross Platform Solutions | 39,804 | 35,162 | 80,633 | 72,447 | ||||||||||||||||||||||
Total | $ | 91,434 | $ | 87,659 | $ | 185,400 | $ | 177,989 | ||||||||||||||||||
By geographical market: | ||||||||||||||||||||||||||
United States | $ | 81,631 | $ | 77,632 | $ | 165,713 | $ | 155,406 | ||||||||||||||||||
Europe | 4,475 | 5,442 | 9,682 | 13,713 | ||||||||||||||||||||||
Canada | 2,174 | 1,817 | 3,993 | 3,561 | ||||||||||||||||||||||
Latin America | 2,136 | 1,704 | 3,926 | 3,280 | ||||||||||||||||||||||
Other | 1,018 | 1,064 | 2,086 | 2,029 | ||||||||||||||||||||||
Total | $ | 91,434 | $ | 87,659 | $ | 185,400 | $ | 177,989 | ||||||||||||||||||
By timing of revenue recognition: | ||||||||||||||||||||||||||
Products and services transferred over time | $ | 76,738 | $ | 69,656 | $ | 154,682 | $ | 137,772 | ||||||||||||||||||
Products and services transferred at a point in time | 14,696 | 18,003 | 30,718 | 40,217 | ||||||||||||||||||||||
Total | $ | 91,434 | $ | 87,659 | $ | 185,400 | $ | 177,989 |
As of | As of | |||||||||||||
(In thousands) | June 30, 2022 | December 31, 2021 | ||||||||||||
Accounts receivable, net | $ | 56,566 | $ | 72,059 | ||||||||||
Current and non-current contract assets | 5,751 | 4,875 | ||||||||||||
Current contract liabilities | 53,936 | 54,011 | ||||||||||||
Current customer advances | 10,909 | 11,613 | ||||||||||||
Non-current contract liabilities | 574 | 1,262 |
Six Months Ended June 30, | |||||||||||
(In thousands) | 2022 | 2021 | |||||||||
Revenue recognized that was included in the opening contract liabilities balance | $ | (43,405) | $ | (41,506) | |||||||
Cash received or amounts billed in advance and not recognized as revenue | 44,740 | 36,262 |
As of | As of | ||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||||||||||||
Money market funds (1) | $ | 439 | $ | — | $ | — | $ | 439 | $ | 2,429 | $ | — | $ | — | $ | 2,429 | |||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||
Contingent consideration liability (2) | $ | — | $ | 8,003 | $ | — | $ | 8,003 | $ | — | $ | — | $ | 5,600 | $ | 5,600 | |||||||||||||||||||||||||||||||
Warrants liability (3) | — | — | 3,525 | 3,525 | — | — | 10,520 | 10,520 | |||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | — | $ | 8,003 | $ | 3,525 | $ | 11,528 | $ | — | $ | — | $ | 16,120 | $ | 16,120 | |||||||||||||||||||||||||||||||
(In thousands) | Contingent Consideration Liability | Warrants Liability | ||||||||||||
Balance as of December 31, 2021 | $ | 5,600 | $ | 10,520 | ||||||||||
Total loss (gain) recognized due to remeasurement (1) | 2,348 | (6,995) | ||||||||||||
Transfer to Level 2 (2) | (7,948) | — | ||||||||||||
Balance as of June 30, 2022 | $ | — | $ | 3,525 |
(In thousands) | Interest Make-whole Derivative Liability | Financing Derivative Liabilities | Warrants Liability | ||||||||||||||
Balance as of December 31, 2020 | $ | 871 | $ | 11,300 | $ | 2,831 | |||||||||||
Total loss (gain) recognized due to remeasurement (1) | 150 | (1,800) | 16,520 | ||||||||||||||
Settlement or derecognition upon extinguishment of host debt (2) | (1,021) | (9,500) | — | ||||||||||||||
Balance as of June 30, 2021 | $ | — | $ | — | $ | 19,351 |
Fair Value Measurements | ||||||||||||||||||||||||||||||||
Significant Valuation Technique | Significant Valuation Inputs | June 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||
Warrants liability | Option pricing | Stock price | $2.06 | $3.34 | ||||||||||||||||||||||||||||
Exercise price | $2.47 | $2.47 | ||||||||||||||||||||||||||||||
Volatility | 65.0% | 85.0% | ||||||||||||||||||||||||||||||
Term | 1.99 years | 2.49 years | ||||||||||||||||||||||||||||||
Risk-free rate | 2.9% | 0.9% | ||||||||||||||||||||||||||||||
As of | As of | |||||||||||||
(In thousands) | June 30, 2022 | December 31, 2021 | ||||||||||||
Accrued data costs | $ | 15,837 | $ | 18,116 | ||||||||||
Payroll and payroll-related | 12,519 | 16,272 | ||||||||||||
Professional fees | 2,288 | 2,978 | ||||||||||||
Other | 6,643 | 7,898 | ||||||||||||
Total accrued expenses | $ | 37,287 | $ | 45,264 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(In thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Revenues | $ | 3,369 | $ | 3,287 | $ | 6,710 | $ | 6,613 | |||||||||||||||
Cost of revenues | 2,234 | 2,416 | 4,374 | 7,093 | |||||||||||||||||||
As of | As of | ||||||||||
(In thousands) | June 30, 2022 | December 31, 2021 | |||||||||
Assets | |||||||||||
Accounts receivable, net | $ | 1,353 | $ | 3,506 | |||||||
Liabilities | |||||||||||
Accounts payable | $ | 1,931 | $ | 1,395 | |||||||
Contract liabilities | 1,910 | 3,403 | |||||||||
Other non-current liabilities | 671 | 1,582 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(In thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Revenues | $ | 546 | $ | 540 | $ | 1,272 | $ | 879 | |||||||||||||||
Cost of revenues | 5,539 | 5,797 | 11,067 | 10,942 | |||||||||||||||||||
As of | As of | |||||||||||||
(In thousands) | June 30, 2022 | December 31, 2021 | ||||||||||||
Accounts payable | $ | 10,131 | $ | 5,180 | ||||||||||
Accrued expenses | 4,083 | 3,377 | ||||||||||||
Non-current portion of accrued data costs | 12,087 | 7,843 | ||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | Dollars | % of Revenue | Dollars | % of Revenue | Dollars | % of Revenue | Dollars | % of Revenue | |||||||||||||||||||||||||||||||||||||||
Revenues | $ | 91,434 | 100.0 | % | $ | 87,659 | 100.0 | % | $ | 185,400 | 100.0 | % | $ | 177,989 | 100.0 | % | |||||||||||||||||||||||||||||||
Cost of revenues | 51,467 | 56.3 | % | 51,386 | 58.6 | % | 104,385 | 56.3 | % | 104,088 | 58.5 | % | |||||||||||||||||||||||||||||||||||
Selling and marketing | 17,485 | 19.1 | % | 16,530 | 18.9 | % | 34,651 | 18.7 | % | 34,357 | 19.3 | % | |||||||||||||||||||||||||||||||||||
Research and development | 9,917 | 10.8 | % | 10,132 | 11.6 | % | 19,449 | 10.5 | % | 20,485 | 11.5 | % | |||||||||||||||||||||||||||||||||||
General and administrative | 17,103 | 18.7 | % | 14,246 | 16.3 | % | 35,220 | 19.0 | % | 28,714 | 16.1 | % | |||||||||||||||||||||||||||||||||||
Amortization of intangible assets | 6,772 | 7.4 | % | 6,255 | 7.1 | % | 13,551 | 7.3 | % | 12,694 | 7.1 | % | |||||||||||||||||||||||||||||||||||
Total expenses from operations | 102,744 | 112.4 | % | 98,549 | 112.4 | % | 207,256 | 111.8 | % | 200,338 | 112.6 | % | |||||||||||||||||||||||||||||||||||
Loss from operations | (11,310) | (12.4) | % | (10,890) | (12.4) | % | (21,856) | (11.8) | % | (22,349) | (12.6) | % | |||||||||||||||||||||||||||||||||||
Other income (expense), net | 4,557 | 5.0 | % | (6,508) | (7.4) | % | 6,990 | 3.8 | % | (14,782) | (8.3) | % | |||||||||||||||||||||||||||||||||||
Gain (loss) from foreign currency transactions | 2,527 | 2.8 | % | (370) | (0.4) | % | 2,947 | 1.6 | % | 704 | 0.4 | % | |||||||||||||||||||||||||||||||||||
Interest expense, net | (176) | (0.2) | % | (355) | (0.4) | % | (376) | (0.2) | % | (7,400) | (4.2) | % | |||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | — | — | % | — | — | % | — | — | % | (9,629) | (5.4) | % | |||||||||||||||||||||||||||||||||||
Loss before income taxes | (4,402) | (4.8) | % | (18,123) | (20.7) | % | (12,295) | (6.6) | % | (53,456) | (30.0) | % | |||||||||||||||||||||||||||||||||||
Income tax provision | (648) | (0.7) | % | (422) | (0.5) | % | (2,031) | (1.1) | % | (1,444) | (0.8) | % | |||||||||||||||||||||||||||||||||||
Net loss | $ | (5,050) | (5.5) | % | $ | (18,545) | (21.2) | % | $ | (14,326) | (7.7) | % | $ | (54,900) | (30.8) | % |
Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||
(In thousands) | 2022 | % of Revenue | 2021 | % of Revenue | $ Variance | % Variance | |||||||||||||||||||||||||||||
Digital Ad Solutions | $ | 51,630 | 56.5 | % | $ | 52,497 | 59.9 | % | $ | (867) | (1.7) | % | |||||||||||||||||||||||
Cross Platform Solutions | 39,804 | 43.5 | % | 35,162 | 40.1 | % | 4,642 | 13.2 | % | ||||||||||||||||||||||||||
Total revenues | $ | 91,434 | 100.0 | % | $ | 87,659 | 100.0 | % | $ | 3,775 | 4.3 | % |
Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
(In thousands) | 2022 | % of Revenue | 2021 | % of Revenue | $ Variance | % Variance | |||||||||||||||||||||||||||||
Digital Ad Solutions | $ | 104,767 | 56.5 | % | $ | 105,542 | 59.3 | % | $ | (775) | (0.7) | % | |||||||||||||||||||||||
Cross Platform Solutions | 80,633 | 43.5 | % | 72,447 | 40.7 | % | 8,186 | 11.3 | % | ||||||||||||||||||||||||||
Total revenues | $ | 185,400 | 100.0 | % | $ | 177,989 | 100.0 | % | $ | 7,411 | 4.2 | % |
Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||
(In thousands) | 2022 | % of Revenue | 2021 | % of Revenue | $ Change | % Change | |||||||||||||||||||||||||||||
Data costs | $ | 18,933 | 20.7 | % | $ | 18,937 | 21.6 | % | $ | (4) | — | % | |||||||||||||||||||||||
Employee costs | 10,745 | 11.8 | % | 10,340 | 11.8 | % | 405 | 3.9 | % | ||||||||||||||||||||||||||
Systems and bandwidth costs | 7,210 | 7.9 | % | 7,340 | 8.4 | % | (130) | (1.8) | % | ||||||||||||||||||||||||||
Lease expense and depreciation | 5,297 | 5.8 | % | 4,855 | 5.5 | % | 442 | 9.1 | % | ||||||||||||||||||||||||||
Panel costs | 3,696 | 4.0 | % | 3,766 | 4.3 | % | (70) | (1.9) | % | ||||||||||||||||||||||||||
Sample and survey costs | 1,879 | 2.1 | % | 1,548 | 1.8 | % | 331 | 21.4 | % | ||||||||||||||||||||||||||
Professional fees | 1,418 | 1.6 | % | 1,476 | 1.7 | % | (58) | (3.9) | % | ||||||||||||||||||||||||||
Technology | 1,301 | 1.4 | % | 1,466 | 1.7 | % | (165) | (11.3) | % | ||||||||||||||||||||||||||
Royalties and resellers | 705 | 0.8 | % | 1,268 | 1.4 | % | (563) | (44.4) | % | ||||||||||||||||||||||||||
Other | 283 | 0.3 | % | 390 | 0.4 | % | (107) | (27.4) | % | ||||||||||||||||||||||||||
Total cost of revenues | $ | 51,467 | 56.3 | % | $ | 51,386 | 58.6 | % | $ | 81 | 0.2 | % |
Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
(In thousands) | 2022 | % of Revenue | 2021 | % of Revenue | $ Change | % Change | |||||||||||||||||||||||||||||
Data costs | $ | 36,980 | 19.9 | % | $ | 37,240 | 20.9 | % | $ | (260) | (0.7) | % | |||||||||||||||||||||||
Employee costs | 21,221 | 11.4 | % | 20,983 | 11.8 | % | 238 | 1.1 | % | ||||||||||||||||||||||||||
Systems and bandwidth costs | 16,877 | 9.1 | % | 14,175 | 8.0 | % | 2,702 | 19.1 | % | ||||||||||||||||||||||||||
Lease expense and depreciation | 10,630 | 5.7 | % | 9,772 | 5.5 | % | 858 | 8.8 | % | ||||||||||||||||||||||||||
Panel costs | 7,433 | 4.0 | % | 7,679 | 4.3 | % | (246) | (3.2) | % | ||||||||||||||||||||||||||
Sample and survey costs | 3,624 | 2.0 | % | 3,371 | 1.9 | % | 253 | 7.5 | % | ||||||||||||||||||||||||||
Professional fees | 2,907 | 1.6 | % | 2,759 | 1.6 | % | 148 | 5.4 | % | ||||||||||||||||||||||||||
Technology | 2,563 | 1.4 | % | 2,977 | 1.7 | % | (414) | (13.9) | % | ||||||||||||||||||||||||||
Royalties and resellers | 1,626 | 0.9 | % | 1,693 | 1.0 | % | (67) | (4.0) | % | ||||||||||||||||||||||||||
Other | 524 | 0.3 | % | 3,439 | 1.9 | % | (2,915) | (84.8) | % | ||||||||||||||||||||||||||
Total cost of revenues | $ | 104,385 | 56.3 | % | $ | 104,088 | 58.5 | % | $ | 297 | 0.3 | % |
Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||
(In thousands) | 2022 | % of Revenue | 2021 | % of Revenue | $ Change | % Change | |||||||||||||||||||||||||||||
Employee costs | $ | 14,085 | 15.4 | % | $ | 13,893 | 15.8 | % | $ | 192 | 1.4 | % | |||||||||||||||||||||||
Lease expense and depreciation | 955 | 1.0 | % | 1,008 | 1.1 | % | (53) | (5.3) | % | ||||||||||||||||||||||||||
Technology | 850 | 0.9 | % | 610 | 0.7 | % | 240 | 39.3 | % | ||||||||||||||||||||||||||
Professional fees | 577 | 0.6 | % | 609 | 0.7 | % | (32) | (5.3) | % | ||||||||||||||||||||||||||
Other | 1,018 | 1.1 | % | 410 | 0.5 | % | 608 | 148.3 | % | ||||||||||||||||||||||||||
Total selling and marketing expenses | $ | 17,485 | 19.1 | % | $ | 16,530 | 18.9 | % | $ | 955 | 5.8 | % |
Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
(In thousands) | 2022 | % of Revenue | 2021 | % of Revenue | $ Change | % Change | |||||||||||||||||||||||||||||
Employee costs | $ | 28,295 | 15.3 | % | $ | 29,177 | 16.4 | % | $ | (882) | (3.0) | % | |||||||||||||||||||||||
Lease expense and depreciation | 1,901 | 1.0 | % | 2,049 | 1.2 | % | (148) | (7.2) | % | ||||||||||||||||||||||||||
Technology | 1,697 | 0.9 | % | 1,272 | 0.7 | % | 425 | 33.4 | % | ||||||||||||||||||||||||||
Professional fees | 1,085 | 0.6 | % | 1,082 | 0.6 | % | 3 | 0.3 | % | ||||||||||||||||||||||||||
Other | 1,673 | 0.9 | % | 777 | 0.4 | % | 896 | 115.3 | % | ||||||||||||||||||||||||||
Total selling and marketing expenses | $ | 34,651 | 18.7 | % | $ | 34,357 | 19.3 | % | $ | 294 | 0.9 | % |
Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||
(In thousands) | 2022 | % of Revenue | 2021 | % of Revenue | $ Change | % Change | |||||||||||||||||||||||||||||
Employee costs | $ | 7,676 | 8.4 | % | $ | 7,477 | 8.5 | % | $ | 199 | 2.7 | % | |||||||||||||||||||||||
Technology | 1,020 | 1.1 | % | 1,100 | 1.3 | % | (80) | (7.3) | % | ||||||||||||||||||||||||||
Lease expense and depreciation | 721 | 0.8 | % | 838 | 1.0 | % | (117) | (14.0) | % | ||||||||||||||||||||||||||
Professional fees | 339 | 0.4 | % | 597 | 0.7 | % | (258) | (43.2) | % | ||||||||||||||||||||||||||
Other | 161 | 0.2 | % | 120 | 0.1 | % | 41 | 34.2 | % | ||||||||||||||||||||||||||
Total research and development expenses | $ | 9,917 | 10.8 | % | $ | 10,132 | 11.6 | % | $ | (215) | (2.1) | % |
Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
(In thousands) | 2022 | % of Revenue | 2021 | % of Revenue | $ Change | % Change | |||||||||||||||||||||||||||||
Employee costs | $ | 15,131 | 8.2 | % | $ | 15,272 | 8.6 | % | $ | (141) | (0.9) | % | |||||||||||||||||||||||
Technology | 2,011 | 1.1 | % | 2,233 | 1.3 | % | (222) | (9.9) | % | ||||||||||||||||||||||||||
Lease expense and depreciation | 1,435 | 0.8 | % | 1,697 | 1.0 | % | (262) | (15.4) | % | ||||||||||||||||||||||||||
Professional fees | 587 | 0.3 | % | 998 | 0.6 | % | (411) | (41.2) | % | ||||||||||||||||||||||||||
Other | 285 | 0.2 | % | 285 | 0.2 | % | — | — | % | ||||||||||||||||||||||||||
Total research and development expenses | $ | 19,449 | 10.5 | % | $ | 20,485 | 11.5 | % | $ | (1,036) | (5.1) | % |
Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||
(In thousands) | 2022 | % of Revenue | 2021 | % of Revenue | $ Change | % Change | |||||||||||||||||||||||||||||
Employee costs | $ | 9,523 | 10.4 | % | $ | 7,603 | 8.7 | % | $ | 1,920 | 25.3 | % | |||||||||||||||||||||||
Professional fees | 4,386 | 4.8 | % | 3,577 | 4.1 | % | 809 | 22.6 | % | ||||||||||||||||||||||||||
Technology | 839 | 0.9 | % | 622 | 0.7 | % | 217 | 34.9 | % | ||||||||||||||||||||||||||
Lease expense and depreciation | 406 | 0.4 | % | 417 | 0.5 | % | (11) | (2.6) | % | ||||||||||||||||||||||||||
Other | 1,949 | 2.1 | % | 2,027 | 2.3 | % | (78) | (3.8) | % | ||||||||||||||||||||||||||
Total general and administrative expenses | $ | 17,103 | 18.7 | % | $ | 14,246 | 16.3 | % | $ | 2,857 | 20.1 | % |
Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
(In thousands) | 2022 | % of Revenue | 2021 | % of Revenue | $ Change | % Change | |||||||||||||||||||||||||||||
Employee costs | $ | 18,000 | 9.7 | % | $ | 15,901 | 8.9 | % | $ | 2,099 | 13.2 | % | |||||||||||||||||||||||
Professional fees | 8,622 | 4.7 | % | 6,566 | 3.7 | % | 2,056 | 31.3 | % | ||||||||||||||||||||||||||
Technology | 1,679 | 0.9 | % | 1,211 | 0.7 | % | 468 | 38.6 | % | ||||||||||||||||||||||||||
Lease expense and depreciation | 841 | 0.5 | % | 891 | 0.5 | % | (50) | (5.6) | % | ||||||||||||||||||||||||||
Other | 6,078 | 3.3 | % | 4,145 | 2.3 | % | 1,933 | 46.6 | % | ||||||||||||||||||||||||||
Total general and administrative expenses | $ | 35,220 | 19.0 | % | $ | 28,714 | 16.1 | % | $ | 6,506 | 22.7 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(In thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Change in fair value of warrants liability | $ | 4,560 | $ | (6,519) | $ | 6,995 | $ | (16,520) | |||||||||||||||
Change in fair value of financing derivatives | — | — | — | 1,800 | |||||||||||||||||||
Other | (3) | 11 | (5) | (62) | |||||||||||||||||||
Total other income (expense), net | $ | 4,557 | $ | (6,508) | $ | 6,990 | $ | (14,782) |
Six Months Ended June 30, | ||||||||||||||
(In thousands) | 2022 | 2021 | ||||||||||||
Net cash provided by operating activities | $ | 24,233 | $ | 10,860 | ||||||||||
Net cash used in investing activities | (8,256) | (7,723) | ||||||||||||
Net cash used in financing activities | (16,989) | (35,876) | ||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1,208) | (322) | ||||||||||||
Net decrease in cash, cash equivalents and restricted cash | (2,220) | (33,061) |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 4. | CONTROLS AND PROCEDURES |
ITEM 1. | LEGAL PROCEEDINGS |
ITEM 1A. | RISK FACTORS |
ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
ITEM 3. | DEFAULTS UPON SENIOR SECURITIES |
ITEM 4. | MINE SAFETY DISCLOSURES |
ITEM 5. | OTHER INFORMATION |
ITEM 6. | EXHIBITS |
Exhibit No. | Exhibit Document | |||||||
3.1 | ||||||||
3.2 | ||||||||
3.3 | ||||||||
3.4 | ||||||||
3.5 | ||||||||
3.6 | ||||||||
3.7 | ||||||||
10.1+* | ||||||||
10.2* | ||||||||
10.3* | ||||||||
10.4* | ||||||||
10.5* | ||||||||
10.6* | ||||||||
10.7* | ||||||||
10.8+* | ||||||||
10.9+* | ||||||||
31.1+ | ||||||||
31.2+ | ||||||||
32.1+ | ||||||||
32.2+ | ||||||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||
104 | Cover Page Interactive Data File - the cover page iXBRL tags are embedded within the Inline XBRL document | |||||||
COMSCORE, INC. | ||||||||||||||
By: | /s/ Mary Margaret Curry | |||||||||||||
Mary Margaret Curry | ||||||||||||||
Chief Financial Officer and Treasurer | ||||||||||||||
(Principal Financial Officer, Principal Accounting Officer and Duly Authorized Officer) |
COMSCORE, INC. | ||||||||||||||
By: | ||||||||||||||
Name: | Ashley Wright | |||||||||||||
Title: | Secretary | |||||||||||||
Date: | April 22, 2022 |
Stock-Price Hurdle | Percentage of PRSUs That Vest | ||||
$5.00 | 18.0% | ||||
$7.00 | 18.0% | ||||
$9.00 | 12.0% | ||||
$11.00 | 12.0% | ||||
$12.00 | 10.0% | ||||
$13.00 | 10.0% | ||||
$14.00 | 10.0% | ||||
$15.00 | 10.0% |
COMSCORE, INC. | ||||||||||||||
By: | /s/ Sara Dunn | |||||||||||||
Name: | Sara Dunn | |||||||||||||
Title: | Chief People Officer |
GRANTEE | ||||||||||||||
By: | /s/ Jonathan Carpenter | |||||||||||||
Name: | Jonathan Carpenter |
Stock-Price Hurdle | Percentage of PRSUs That Vest | ||||
$5.00 | 18.0% | ||||
$7.00 | 18.0% | ||||
$9.00 | 12.0% | ||||
$11.00 | 12.0% | ||||
$12.00 | 10.0% | ||||
$13.00 | 10.0% | ||||
$14.00 | 10.0% | ||||
$15.00 | 10.0% |
COMSCORE, INC. | ||||||||||||||
By: | /s/ Sara Dunn | |||||||||||||
Name: | Sara Dunn | |||||||||||||
Title: | Chief People Officer |
GRANTEE | ||||||||||||||
By: | /s/ Mary Margaret Curry | |||||||||||||
Name: | Mary Margaret Curry |
/s/ Jonathan Carpenter | ||
Jonathan Carpenter | ||
Chief Executive Officer | ||
(Principal Executive Officer) |
/s/ Mary Margaret Curry | ||
Mary Margaret Curry | ||
Chief Financial Officer and Treasurer | ||
(Principal Financial Officer) |
/s/ Jonathan Carpenter | ||
Jonathan Carpenter | ||
Chief Executive Officer | ||
(Principal Executive Officer) |
/s/ Mary Margaret Curry | ||
Mary Margaret Curry | ||
Chief Financial Officer and Treasurer | ||
(Principal Financial Officer) |