comScore Plans 8% Job Cuts Despite Growth

comScore has announced financial results for the third quarter of 2009, with revenue up 4% year-on-year to $31.9m. However, it also plans a 'realignment of resources' which is expected to see its headcount fall by 8%.

GAAP income before taxes was up 56% to $2.8m, while net income per diluted share edged up from $0.02 to $0.03. Non-GAAP net income in the third quarter of 2009 was $5.7 million, or $0.18 per diluted share. Adjusted EBITDA was $7.4 million in the third quarter of 2009.

President and CEO Magid Abraham said that due to the firm's subscription business model, an upturn in the third and fourth quarters would take time to filter into revenue growth, such that full-year growth is likely to be below prior expectations, although adjusted EBITDA margin levels should match earlier predictions due to careful cost management.

'During the third quarter, we continued to be impacted by softness in the advertising market, and foreign currency translation' said Abraham. 'However, project revenue grew sequentially, particularly in the case of services for measuring ad effectiveness...'

Abraham says the launch of hybrid service Media Metrix 360 (www.mrweb.com/mrt/web09sep.htm ) has been 'very successful [with] 74% of the top 50 U.S. media properties committed to the service', and adds that the firm plans to shift some resources to support its growth, with the 'realignment of some personnel resources within the organization'. The net result will be an 8% reduction in the size of the company's workforce, although it will simultaneously be making selective new hires in areas of high potential.

Subscription revenues rose 5.8% to $27.2m, while project revenue fell 4.6% to $4.7m. Revenues from existing customers were up 10.7% to $28.6m while less surprisingly revenue from new customers was down (by 31.5%, to $3.3m). International revenue outgrew US, rising 7.1%, but remains a small proportion of the total at $4.9m. comScore's customer base grew from 1,136 companies to 1,216 year on year.

Abraham says comScore, which separately today announced the acquisition of Latin American web measurement firm Certifica, continues confident about its longer-term prospects. 'The advertising market is nowbeginning to improve and we believe the increased robustness of our product line strengthens our position as the leading Internet audience measurement provider, helping drive our longer-term success.' Fourth quarter expectations are for revenue of $32.75 - $34.65 million and adjusted EBITDA of $8.0 - $9.1 million.

Web site: www.comscore.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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