ComScore holds its course as clients cut back spending
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US-- ComScore has reported 35% growth in 2008, although cutbacks in client spending toward the end of the year meant the firm did not achieve the revenue it had hoped for.
CEO Magid Abraham said that “lighter than expected” project revenue in the final quarter “can be attributed primarily to clients tightening their year-end spending in reaction to the economic slowdown”.
However, he said, the firm had “gained traction” in 2008 with its Ad Effectiveness products, which are designed for online publishers to demonstrate the ROI of online ad spending to their clients.
Abraham said the firm has not yet seen the need to cut jobs, although increases in head count and compensation are being limited.
“Our philosophy going into this is that unlike a lot of companies that are basically slashing and burning to be able to get through this, we want to emerge from this stronger than the rest of the pack,” he said. “As the economy picks up, we want to be able to strengthen our momentum, in terms of products, in terms of quality of people, in terms of readiness to expand into different markets.”
ComScore's total revenue for 2008 was $117.4m, up 35%, but below the guidance of $119.7-$120.4m that it issued in August. Adjusted net income was up 36%.
The firm is expecting a more modest growth rate of 15% in 2009.
• ComScore's chief financial officer John Green has been made executive vice president and head of human resources. Green will continue in the role of CFO while a replacement is sought.
Author: Robert Bain
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