Slide 1: Fourth Quarter 2022 Earnings Call
Fourth Quarter Earnings - 2022 Fourth Quarter 2022 Earnings Call Jon Carpenter Mary Margaret Curry CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER February 28, 2023 1
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements This presentation contains forward-looking statements within the meaning of federal and state securities laws, including, without limitation, our expectations, forecasts, plans and opinions regarding our strategic plans, market opportunities, comm
Slide 3: Key Accomplishments in 2022
KEY ACCOMPLISHMENTS IN 2022 New leadership team including Chairman, CEO, CFO & COO Currency expansion with Scripps, Dentsu & NBCU 48-hour TV data in every market; Digital innovation leveraging Shareablee; CCR now the only cross-platform product w/ display and video across desktop, mobile, linear & C
Slide 4: Fourth Quarter 2022 Financials
=) comscore Fourth Quarter 2022 Financials
Slide 5: 2022 Full Year Results
2022 FULL YEAR RESULTS TOTAL REVENUE ADJUSTED EBITDA +2.6% +16.1% year over year year over year growth growth $376.4 $367.0 $37.0 $31.9 8.7% margin 9.8% margin 2 0 2 1 2 0 2 2 2 0 2 1 2 0 2 2 5
Slide 6: 2022 Full Year Revenue Growth
2022 FULL YEAR REVENUE GROWTH C R O S S P L A T F O R M M O V I E S D I G I T A L A D K E Y D R I V E R S S O U L T I O N S R E P O R T I N G * S O L U T I O N S -4.3% year over year decline Strength in TV +13.0% measurement year over year growth $222.0 $212.5 Movies rebound post-pandemic $163.9 +10
Slide 7: Fourth Quarter Results
FOURTH QUARTER RESULTS TOTAL REVENUE ADJUSTED EBITDA +1.8% -3.2% year over year year over year growth decline $96.5 $98.2 $12.4 $12.0 12.9% margin 12.2% margin Q 4 2 0 2 1 Q 4 2 0 2 2 Q 4 2 0 2 1 Q 4 2 0 2 2 7
Slide 8: Fourth Quarter Revenue Growth
FOURTH QUARTER REVENUE GROWTH C R O S S P L A T F O R M M O V I E S D I G I T A L A D K E Y D R I V E R S S O U L T I O N S R E P O R T I N G * S O L U T I O N S -6.8% year over year decline Strength in TV +15.4% measurement year over year growth $59.4 $55.4 Movies flattening post-pandemic $42.8 +1.
Slide 9: Core Operating Expenses
CORE OPERATING EXPENSES* F U L L Y E A R F O U R T H Q U A R T E R +0.3% ✓ 2022 core operating expenses* year over year flat vs. prior year ✓ Q4 core operating expenses down $370.8 $371.9 -5.4% year over year 5.4% vs. prior year and 2.8% vs. decline prior quarter ✓ Q4 decline driven by continued $92
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Slide 11: Times Have Changed
@j comscore TIMES HAVE CHANGED
Slide 12: Linear TV Still Dominates But Is Also Changing
LINEAR TV STILL DOMINATES BUT IS ALSO CHANGING P AY T V H H s • ( M V P D & V M V P D ) vMVPD HHs HH's (in Millions) % of all HH's HHs (in Millions) % of HHs 80.9 76.3 17.2 15.2 57.4% 61.9% 12.9% 11.7% 2022 2024 2022 2024 2/23/2023 12 Source: eMarketer
Slide 13: Digital Growth and Increasingly More Programmatic
DIGITAL GROWTH… AND INCREASINGLY MORE PROGRAMMATIC CONNECTED TV VIDEO AD SPENDING CONNECTED TV PROGRAMMATIC VIDEO AD SPENDING Spend (in Billions) Spend (in Billions) $31.32 $28.44 $20.78 $17.62 2022 2024 2022 2024 2/27/2023 13 Source: eMarketer
Slide 14: Measurement Has Become More Complex
AND AS A RESULT, MEASUREMENT HAS BECOME MORE COMPLEX Unduplicated Time-Shifted Advanced Integrated TV and Audiences Viewing Audiences Digital Behavior Addressable Programmatic Advertising Total View of Validated Incremental Cross-Platform Consumer Impressions Reach Planning Comparable Co-viewing Met
Slide 15: Our Vision
OUR VISION Provide clients with the most complete view of audiences – regardless of device or platform – for both content and ads. 2/26/2023 15
Slide 16: Starts With Our Unmatched Audience Scale
STARTS WITH OUR UNMATCHED AUDIENCE SCALE SET-TOP BOXES CONNECTED TVS 74M+ 150M+ 1-IN-3 U.S. HOUSEHOLDS MOBILE DEVICES DESKTOP DEVICES CURRENTLY MEASURING 0 445M 150M+ CURRENTLY MEASURING 9 out of every 10 devices in U.S. 2/27/2023 16 Data as of January 2023
Slide 17: Comscore Is Best Positioned to Address Key Measurement Challenges
COMSCORE IS BEST POSITIONED TO ADDRESS KEY MEASUREMENT CHALLENGES KEY: FULL CAPABILITY SOME CAPABILITY LACKS CAPABILITY DIGITAL/ NATIONAL LOCAL CTV X-PLATFORM THEATRICAL SOCIAL Traditional Panel-Based Methodologies Other Currency Contenders 17
Slide 18: Competing in a Massive TAM
COMPETING IN A MASSIVE TAM U . S . AD S P E N D I N 2 0 2 4 H O W W E W I N ~$404B* Future is all about audiences All Media Push to programmatic continues – ~$309B* Comscore audience data is the fuel Other Digital needed for more effective and efficient programmatic advertising Scale, Interoperabili
Slide 19: Which Opens Up Meaningful Mid-Long Term Growth Chutes
WHICH OPENS UP MEANINGFUL MID-LONG TERM GROWTH CHUTES New channel expansion Privacy forward Cross-platform digital & Currency programmatic expansion solutions UNLOCKING GROWTH
Slide 20: Local Currency Expansion
LOCAL CURRENCY EXPANSION 2022 REVENUE OF TOP 30 STATION OF LOCAL AD SPEND GROWTH GROUPS AS CLIENTS USING COMSCORE AS CURRENCY* *Comscore estimate based on client reporting GROW TH DRI VERS
Slide 21: National Currency Expansion
NATIONAL CURRENCY EXPANSION 2022 REVENUE GROWTH CLIENT FOOTPRINT OF TOP 50 NETWORKS 2022 REVENUE ARE CLIENTS GROWTH GROW TH DRI VERS
Slide 22: 2023 Execution Focus
2023 EXECUTION FOCUS U . S . AD S P E N D I N 2 0 2 4 P R I O R I T I E S ~$404B* Currency & cross-platform expansion All Media ~$309B* Digital growth Digital Unlocking the programmatic opportunity ~$95B* TV (CTV & Linear) New channel growth *eMarketer
Slide 23: Comscore Is the Only Company With the Complete View of Audiences
Comscore is the only company with the complete view of audiences to power the future of audience-based advertising. 23
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Slide 25: Full Year 2023 Guidance – Revenue
FULL YEAR 2023 GUIDANCE – REVENUE TOTAL REVENUE KEY DRIVERS Low to Mid Single ✓ Currency expansion Digit Growth (%) • Continued growth in Local • National currency traction ✓ Theatrical market rebound $376M ✓ Predictive Audience driven programmatic progress ✓ Cross-platform capabilities ✓ New channe
Slide 26: Full Year 2023 Guidance – Adjusted EBITDA
FULL YEAR 2023 GUIDANCE – ADJUSTED EBITDA TOTAL ADJUSTED EBITDA KEY DRIVERS MARGIN ✓ Completion of restructuring plan Double Digit ✓ Disciplined product innovation Margin Rate ✓ Intentional cost control 9.8% Working towards Critical to goal of exiting unlocking 2023 with margin free cash flow run ra
Slide 27: Stakeholder Value Creation
ULTIMATELY DELIVERING LONG-TERM VALUE CREATION FOR OUR STAKEHOLDERS Scale Stakeholder Interoperability Value Creation Speed WELL-POSITIONED FOR GROWTH
Slide 28: Fourth Quarter Earnings - 2022
Fourth Quarter Earnings - 2022
Slide 29: Use of Non-GAAP Financial Measures
USE OF NON-GAAP FINANCIAL MEASURES To provide investors with additional information regarding our financial results, we are disclosing adjusted EBITDA and adjusted EBITDA margin, which are non-GAAP financial measures used by our management to understand and evaluate our core operating performance an
Slide 30: 2022 Adjusted EBITDA Reconciliation
2022 ADJUSTED EBITDA RECONCILIATION 30
Slide 31: Fourth Quarter Adjusted EBITDA Reconciliation
FOURTH QUARTER ADJUSTED EBITDA RECONCILIATION 31