comScore Grows, but Grumbles over Copy Testing

Digital measurement specialist comScore has reported a 9% rise in third quarter revenue to $64.3m, a figure it says was held back by declines in its ad copy testing business, which is slated for a possible sale. Net loss was reduced to just over $3m.

comScore acquired copy testing specialist ARSgroup two years ago, but in a conference call in August, comScore CEO Magid Abraham said his firm has since failed to convince advertisers of the need to pre-test digital creative. At the time, the firm blamed the division's declines on increased competition from suppliers offering off-line research fielding capabilities, and said that the service had 'ceased to be a strategic fit' for its business.

comScore says its non-GAAP pro forma increase, excluding the copy testing arm and foreign currency fluctuations, would have been 13%. Third quarter net loss was $3.1m, compared with $3.9m a year earlier, despite a rise in sales and marketing costs from $20.3m to $22.9m and fairly static R&D expenses ($8.9m, from $9.2m a year previously). Adjusted EBITDA was $11.0m, up 3%.

Abraham (pictured) comments: 'Our revenue and adjusted EBITDA results were above our guidance range for the third quarter, largely due to strength of our core product offerings and contributions from newer products. We believe that the combination of our strong client renewal rates and a compelling portfolio of differentiated, globally available products should help drive healthy revenue growth and profitability over the longer term.'

comScore is anticipating revenue of $64.0m to $69m in the fourth quarter of 2012, and $250.9m to $255.9m for the full year, and forecasts a full year net loss of $7.6m to $11.1m.

Web site: www.comscore.com .