comScore, Inc. (NASDAQ: SCOR), a leader in measuring the digital world, has announced financial results for the second quarter of 2009.
Revenue in the second quarter was $31.4 million, exceeding the company’s prior guidance range of $30.8 to $31.3 million. GAAP income before income taxes was $2.6 million in the second quarter, above the company’s previously guided range of $1.0 to $1.4 million. GAAP net income was $1.2 million or $0.04 per diluted share in the second quarter of 2009. Non-GAAP net income in the second quarter was $5.2 million, or $0.17 per share. Adjusted EBITDA was $7.0 million in the second quarter, above the previously guided range of $5.5 to $6.1 million.
Magid Abraham, comScore’s president and chief executive officer said, “We are pleased to report second quarter results that exceeded our expected ranges. Our overall revenue growth in the quarter was 9% while subscription revenue growth was 14%, both compared to the second quarter of 2008. With healthy renewals among our medium and large customers, we saw renewals within our historical range of 90% or higher on a dollar basis, though we continued to see weaker renewals for our smallest customers, who were particularly affected by the economic downturn, in the second quarter. We continued to successfully grow our revenues from existing customers by over 15% year-over-year. We added 100 new gross customers in the quarter with a net addition of 14. ,”
Reflected in GAAP net income for the second quarter of 2009 is an effective tax rate of 55% percent, including a cash tax rate of 9%. The effective tax rate was negatively impacted by a write-off of deferred tax assets associated with restricted stock awards prompted by the decline in our stock price from the date of grant to the vesting date during the first quarter. Because of this, the tax-basis compensation expense recorded for these awards upon vesting was substantially less than the GAAP-basis expense, which created taxable income that was greater than GAAP income before income taxes and a correspondingly higher effective tax rate. The company continued to utilize net operating loss carry-forwards to reduce cash taxes and expects to continue to do so as permitted in future periods.