comScore, Inc. (SCOR)
Q2 2008 Earnings Call Transcript
July 31, 2008 4:30 pm ET
Magid Abraham – President, CEO, and Co-Founder
John Green – CFO
Jason Helfstein – Oppenheimer & Co.
Troy Maslin – William Blair & Co.
Sandeep Aggarwal – Collins Stewart
Sandeep Swadia – Jefferies & Co.
Hermin Leon [ph] – Deutsche Bank Securities
Previous Statements by SCOR
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I would like to the turn the conference over to John Green, comScore's Chief Financial Officer. Please go ahead.
Thank you. Good afternoon and welcome to comScore's earnings call for our second quarter and full year 2008. On the call today with me is Dr. Magid Abraham, comScore's President, CEO and Co-Founder.
Before we begin, please allow me to read the following statements to inform you of certain Safe Harbor provisions under the Private Securities Litigation Reform Act of 1995. During the course of today's presentation as well as any discussions and question and answer periods to follow represent that the company may make forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21-E of the Securities Exchange Act of 1934, regarding future events or financial performance of the company that involve risks and uncertainties, including without limitation, the expected strength of comScore's business, customer growth and clients' demand for comScore's products, the future quality of client relationships that result in renewal rates, expected results in profitability of comScore's acquisition of Metrix, and forecasts of future financial performance, including related growth rates and assumptions for the second half and the full year of 2008.
Such statements are only predictions based on management's current expectations. Actual events or results could differ materially from those predictions due to a number of risks and uncertainties, including those enumerated in the documents comScore files from time to time with the SEC.
Those documents specifically include, but are not limited to, comScore's Form 8-K filed earlier today relating to the subject matter of this earnings, comScore's Form 10-K for the year ended December 31st, 2007, and comScore's Form 10-Q for the quarter ended March 31st, 2008. These filings may contain and identify important factors that could cause actual results to differ materially from those contained in our projections or forward looking statements.
We caution you not to place undue reliance on any forward looking statements included in these presentations which speak only as of the date of this presentation. comScore does not undertake any obligation to publicly update any forward looking statements to reflect new information after today's call or the reflective occurrence of anticipated events.
I will now turn the call over to Magid. Magid?
Thank you, John. Earlier this afternoon, we released our financial results for the second quarter which ended in June 30, 2008, and reflects the results of our acquisition of Ad Metrix which was completed at the end of May.
As stated in the press release, we will also be highlighting the results of the base comScore business excluding the impact of the Ad Metrix acquisition for this reporting period only to facilitate compare trends with the company's guidance that we issued prior to the acquisition.
I'm pleased to report that as our second quarter 2008 financial results show; we had an outstanding performance, achieving the highest levels of revenue and profitability in comScore's history. For the comScore base business, we exceed in the First Call consensus estimates and our own prior guidance in all respects.
Our momentum in the marketplace continues with strong new business and growth among existing customers. We are very excited about the additional value that we will bring to our customers by complying Ad Metrix's product and its leadership position in the measurement of the mobile internet and media markets, combining that with comScore's existing strong position in the global digital marketing and intelligence marketplace.
The integration of Ad Metrix business into comScore's existing operation is well underway and we are on track with our objective for Ad Metrix to make a positive contribution to adjusted EBITDA by the end of the fourth quarter of 2008 as we announce at the time of the acquisition.
I want to highlight some of the key financial results for the quarter. In particular, I want to highlight the base business, some of the key metrics, and John will provide some details later.
Our total revenue reached 28.8 million in Q2, which was an increase of 38% relative to the same period a year ago. For our base business, the revenue was $27.8 million, that's an increase of 34%, and that compares to a guidance of $27.1 million to $27.4 million.
Our GAAP net income was $1.7 million, and when we look at the base business excluding the Ad Metrix's results, it was $2.6 million, that's a 108% increase. Our GAAP EPS on a diluted basis was $0.06 per share. Our EPS on the base business was $0.09 per share, and that compares to a guidance of $0.07 to $0.08 per share.