comScore Revenue Grows by 38% to a Record $28.8 Million in Q2 2008

Pre-Tax Net Income Increases by 156%

RESTON, Va., July 31 /PRNewswire-FirstCall/ -- comScore, Inc.
(Nasdaq: SCOR), a leader in measuring the digital world, today announced
financial results for the second quarter ended June 30, 2008. The company's
results reflect the acquisition of M:Metrics, Inc., which was completed on May
27, 2008 and include M:Metrics' operating results since that date. In
addition, results excluding the impact of the M:Metrics acquisition are
highlighted on a one-time basis for this reporting period to facilitate
comparisons with company guidance issued prior to the acquisition.
(Logo: http://www.newscom.com/cgi-bin/prnh/20080115/COMSCORELOGO)
"This quarter we posted the highest levels of revenue and profitability in
the company's history, exceeding our guidance in all respects for our base
comScore business, which excludes the results of M:Metrics," said Magid
Abraham, comScore's president and chief executive officer. "Our marketplace
momentum continues with strong new business and growth among existing clients.
Our acquisition of M:Metrics demonstrates our continued pursuit of our
strategic priorities of product innovation and increasing our industry
leadership position in global digital marketing intelligence. As we have
integrated and continue to integrate the M:Metrics business into comScore's
existing operations, we remain very enthusiastic about the potential
opportunities to increase value for our agency, marketer and publisher
customers through our combined resources. We expect that M:Metrics' products
and leadership position in the measurement of the mobile internet and media
market will be an important complement to comScore's existing strong market
position. We remain on track with our objective for M:Metrics to make a
positive contribution to Adjusted EBITDA by the end of the fourth quarter of
2008."
"During the second quarter of 2008, we generated 38 percent revenue growth
over the second quarter of 2007, while our deferred revenue balance increased
58 percent over the balance at the end of the second quarter of 2007 and
increased 39 percent excluding the impact of our acquisition of M:Metrics,"
continued Dr. Abraham. "These results were achieved while we simultaneously
increased our pre-tax net income by 156 percent, our net income by 38 percent
and our Adjusted EBITDA by 56 percent over the second quarter of 2007. We
continued to make gains in penetrating our existing customer base both in the
U.S. and internationally, and we added a net 74 new customers in the second
quarter of 2008. We also experienced 37 percent growth in revenue with
existing customers over the second quarter of 2007, and our renewal rates
continue to exceed 90 percent. Despite the general macro-economic
uncertainty, our confidence in the strength of our business remains high and
we continue to see strong client demand for our products and services."
Second Quarter Financial Highlights and Operating Metrics:
$'s in Thousands, except per share data (unaudited)

Q2 2008 Q2 2007 % Change

Total Revenue $28,750 $20,809 38%
Total Revenue (excluding
M:Metrics) $27,833$20,809 34%
GAAP Income before Income
Taxes $3,193$1,246 156%
Income before Income Taxes (excluding M:Metrics) $4,350
$1,246 249%

GAAP Net Income $1,710 $1,240 38%
Net Income (excluding
M:Metrics) $2,576 $1,240 108%

GAAP EPS (Diluted) $0.06 $0.00 NM
EPS (Diluted) (excluding
M:Metrics) $0.09 $0.00 NM

Adjusted EBITDA* $6,465 $4,135 56%
Adjusted EBITDA (excluding M:Metrics) $6,753
$4,135 63%

Non-GAAP Adjusted Net
Income * $5,610 $3,292 70%
Non-GAAP Adjusted Net Income (excluding M:Metrics) $6,027
$3,292 83%
Non-GAAP EPS (Diluted)* $0.19 $0.00 NM
Non-GAAP EPS (Diluted)
(excluding M:Metrics) $0.20 $0.00 NM

Total Deferred Revenue $42,213 $26,642 58%
Total Deferred Revenue
(excluding M:Metrics) $37,020 $26,642 39%

* A complete reconciliation of GAAP to non-GAAP results is set forth in the
attachment to this press release.

Second Quarter Operating Summary:

comScore reported revenue of $28.8 million for the quarter ended June 30,
2008, an increase of 38 percent compared to the second quarter of 2007 and an
increase of nine percent over the first quarter of 2008. This revenue
performance exceeded the range of the company's guidance of approximately
$27.1 million to $27.4 million for second quarter 2008. Excluding the results
of M:Metrics, revenue in the second quarter of 2008 was $27.8 million, an
increase of 34 percent over the second quarter of 2007.
Second quarter 2008 GAAP income before income taxes was $3.2 million, up
156 percent compared to the second quarter of 2007. Excluding the results of
M:Metrics, second quarter 2008 income before income taxes was $4.4 million, an
increase of 249 percent compared to the second quarter of 2007. GAAP net
income was $1.7 million in the second quarter of 2008, up 38 percent compared
to the second quarter of 2007. Reflected in GAAP net income for the second
quarter of 2008 is a normalized effective tax rate of 46 percent, including a
cash tax rate of 4.4 percent. The normalized effective tax rate was
negatively impacted by current year net losses incurred by certain M:Metrics
international subsidiaries for which the full benefit is not realized by other
comScore subsidiaries. Excluding the results of M:Metrics, net income was
$2.6 million, up 108 percent compared to the second quarter of 2007.
Excluding the results of the M:Metrics acquisition, the normalized effective
tax rate was 41.8 percent, including a cash tax rate of 3.3 percent as the
company continues to utilize net operating loss carryforwards to reduce cash
taxes. Second quarter 2007 net income reflects an effective tax rate of less
than one percent. The increase in the normalized effective tax rate in the
second quarter of 2008 compared to the prior year period is due primarily to
the reversal of a portion of our valuation allowance in the fourth quarter of
2007.
comScore reports net income and earnings per share (EPS) on a GAAP and
non-GAAP basis. For the second quarter of 2008, non-GAAP adjusted net income
and EPS exclude stock-based compensation, amortization of certain intangible
assets, the additional income tax provision resulting from the valuation
allowance reversal in 2007, and certain non-recurring items. In addition,
comScore reports adjusted EBITDA and free cash flow as non-GAAP measures.
Adjusted EBITDA comprises non-GAAP net income further adjusted to exclude the
cash tax provision, depreciation and interest income (expense), net.
Non-recurring items for the second quarter of 2008 include an unrealized loss
of $386,000 associated with the company's investment in certain auction rate
securities and all non-recurring costs associated with the M:Metrics
acquisition. The non-recurring M:Metrics costs include salaries, benefits,
payroll taxes and bonuses paid to M:Metrics employees who will be terminated
after a transition period in 2008 along with related severance costs and
temporary third party survey research costs that will be eliminated by the end
of this year. A reconciliation of comScore's GAAP results to these non-GAAP
measures is included in the financial tables accompanying this release.
-- GAAP EPS for the second quarter of 2008 was $0.06 per share on
approximately 30.3 million fully diluted shares. Excluding the results of
M:Metrics in the second quarter, EPS was $0.09 per share, which exceeded the
company's previous guidance for GAAP EPS for the second quarter of 2008 of
$0.07 to $0.08 per share.
-- Adjusted EBITDA was $6.5 million, an increase of 56 percent compared to
the corresponding quarter in 2007. Adjusted EBITDA, excluding the results of
M:Metrics in the second quarter of 2008, was $6.8 million, an increase of 63
percent compared to the second quarter of 2007. This performance exceeded
the company's previous guidance for adjusted EBITDA for second quarter 2008 of
$5.8 million to $6.1 million.
-- comScore's Adjusted EBITDA margin was approximately 22 percent, an
increase of approximately three percentage points compared to the second
quarter of 2007. This Adjusted EBITDA margin includes the impact of an
approximately two percentage point reduction attributable to $650,000 in
incremental costs incurred in the second quarter of 2008 due to comScore's
public reporting and compliance obligations, costs which were not yet
applicable to the company in the second quarter of 2007. Excluding the
results of M:Metrics, the Adjusted EBITDA margin was 24 percent in the second
quarter, an increase of approximately five percentage points compared to the
second quarter of 2007.
-- Non-GAAP adjusted net income for the second quarter of 2008 was $5.6
million, an increase of 70 percent compared to $3.3 million in the second
quarter of 2007. Non-GAAP EPS was $0.19 per share. Excluding the results of
M:Metrics in the second quarter of 2008, non-GAAP adjusted net income was $6.0
million, an increase of 83 percent compared to the second quarter of 2007,
while non-GAAP EPS was $0.20 per share. These results exceeded the company's
guidance for non-GAAP adjusted net income and non-GAAP EPS for second quarter
2008 of $4.7 million to $5.0 million and $0.16 to $0.17 per share,
respectively.
Second Quarter 2008 Financial Highlights:
-- comScore's subscription revenue was $23.7 million for the second
quarter of 2008, an increase of 45 percent over the corresponding quarter in
2007. Subscription revenue accounted for 82 percent of comScore's total
revenue for the second quarter of 2008, an increase of four percentage points
over the second quarter of 2007 and one percentage point over the first
quarter of 2008.
-- Revenue from existing customers in the second quarter of 2008 totaled
$24.3 million, an increase of 37 percent compared to the second quarter of
2007, while revenue from new customers was $4.5 million, an increase of 43
percent compared to the second quarter of 2007.
-- During the second quarter of 2008, comScore added a net 74 new
customers, which brings the total number of comScore customers to 1,104.
Within this total customer count, the company added a net 64 new
subscription-based customers in the second quarter of 2008, resulting in a
total of 1,013 subscription-based customers as of the end of the second
quarter of 2008.
-- International revenue was $4.1 million in the second quarter of 2008,
an increase of 75 percent compared to the corresponding prior year period, and
accounted for 14 percent of the company's total revenue in the second quarter
of 2008, as compared to 11 percent of total revenue in the second quarter of
2007.
Balance Sheet and Cash Flow Summary:
-- As of June 30, 2008, comScore held $67.2 million in cash, cash
equivalents and short-term investments and $7.6 million in long-term
investments. Deferred revenue was $42.2 million at June 30, 2008, an increase
of 58 percent compared to the deferred revenue balance at June 30, 2007, and
an increase of 39 percent excluding the impact of M:Metrics. The decline of
$36.8 million in cash, cash equivalents and short- and long-term investments
compared to the $111.6 million balance as of March 31, 2008, is due primarily
to the utilization of approximately $44.3 million, excluding transaction
costs, in cash to acquire M:Metrics in the second quarter of 2008.
-- During the second quarter of 2008, the company generated approximately
$14.2 million in cash flow from operations, an increase of $9.7 million, or
214 percent, compared to $4.5 million in the second quarter of 2007. Free
cash flow was $7.8 million, compared to $3.4 million in the second quarter of
2007.

Financial Outlook:

On a consolidated basis, including the results of M:Metrics, comScore is
forecasting full-year 2008 revenue of approximately $119.7 million to $120.4
million. This reflects an increase in the full-year estimates for the base
comScore business and includes the impact of M:Metrics.
For the full-year 2008, comScore is projecting GAAP net income of $6.6
million to $7.2 million. This includes the effect of certain non-recurring
acquisition-related expenses, stock-based compensation, and amortization of
certain intangible assets. An estimated normalized effective tax rate of
approximately 44 percent, including an estimated cash tax rate of
approximately 4.9 percent, is assumed to be applied against full-year earnings
before taxes. The estimated normalized tax rate for comScore, excluding the
impact of M:Metrics, is assumed to be approximately 41 percent, including an
estimated cash tax rate of approximately 4.9 percent. Our projections also
assume lower interest income than previous guidance due primarily to a smaller
interest-bearing cash balance as a result of the utilization of approximately
$44.3 million in cash to acquire M:Metrics. Given these assumptions, the
company is projecting GAAP EPS for the full-year 2008 of $0.22 to $0.23 per
share. These GAAP net income and GAAP EPS projections for the full-year 2008
reflect the effects of the purchase accounting and consolidating the financial
results of M:Metrics with our existing comScore results.
The company is projecting Adjusted EBITDA for the full-year 2008 in the
range of $25.5 million to $26.1 million. This range reflects an increase in
the estimates for the base comScore business and includes the impact of
M:Metrics. It also assumes that operations from the acquisition of M:Metrics
begin to contribute positively to Adjusted EBITDA by the end of the fourth
quarter of 2008.
comScore is also forecasting non-GAAP adjusted net income of approximately
$21.7 million to $22.1 million and non-GAAP EPS of $0.71 to $0.73 per share
for full-year 2008. These non-GAAP adjusted net income and non-GAAP EPS
projections for the full-year 2008 reflect an increase in the estimates for
the base comScore business and includes the impact of consolidating the
financial results of M:Metrics with our base comScore estimates.
comScore is forecasting third quarter 2008 revenue of approximately $30.2
million to $30.7 million, an increase of 35 percent to 37 percent compared to
the third quarter of 2007. For the third quarter of 2008, comScore is
projecting GAAP net income of $0.4 million to $0.6 million. An estimated
normalized effective tax rate of approximately 44 percent to 45 percent,
including an estimated cash tax rate of approximately 9.5 percent, is assumed
to be applied against third quarter earnings before taxes. This compares to
an estimated normalized tax rate for comScore, excluding the post-acquisition
impact of M:Metrics, of approximately 41 percent in the third quarter 2008,
including an estimated cash tax rate of approximately 4.3 percent. The
company is forecasting GAAP EPS for the third quarter 2008 of $0.01 to $0.02
per share.
Adjusted EBITDA for the third quarter 2008 is forecast to be $5.4 million
to $5.7 million. The adjusted EBITDA forecast for the third quarter of 2008
results in an adjusted EBITDA margin of 18 percent to 19 percent.
comScore is also forecasting non-GAAP adjusted net income for the third
quarter 2008 of $4.0 million to $4.4 million. The company is forecasting
non-GAAP EPS for the third quarter 2008 of $0.13 to $0.14 per share. A
reconciliation of the guidance for third quarter and full-year 2008 GAAP net
income and EPS to the adjusted EBITDA, non-GAAP adjusted net income and
non-GAAP EPS is set forth in the table accompanying this release.
Non-GAAP Financial Measures
comScore reports all financial information required in accordance with
generally accepted accounting principles (GAAP). comScore believes, however,
that evaluating its ongoing operating results will be enhanced if it also
discloses certain non-GAAP information because it is useful to understand
comScore's performance, as it excludes non-cash and other special charges that
many investors believe may obscure comScore's on-going operating results.
For example, comScore uses non-GAAP adjusted net income, which excludes
the impact of the revaluation of preferred stock warrant liabilities,
stock-based compensation, the amortization of intangible assets resulting from
acquisitions, the additional income tax provision booked or projected for 2008
resulting from the valuation allowance reversal in 2007, and certain
non-recurring items to evaluate profit performance while including the impact
of depreciation, interest income/expense and cash taxes. Non-recurring items
that have been excluded during the historical or projection period include
withdrawn follow-on public offering costs, unrealized losses on marketable
securities and non-recurring costs associated with the M:Metrics acquisition.
comScore also reports non-GAAP EPS (diluted), which uses non-GAAP adjusted net
income in lieu of GAAP net income in calculating earnings per share.
In addition, comScore believes that Adjusted EBITDA is a useful measure
for investors to use to evaluate its operating performance. Adjusted EBITDA
comprises non-GAAP net income further adjusted to exclude the cash tax
provision, depreciation and interest income (expenses), net. The company
believes that Adjusted EBITDA is an important indicator of the company's
operational strength and the performance of its business because it provides a
link between profitability and operating cash flow. Adjusted EBITDA is also
widely used by investors and analysts as a supplemental measure to evaluate
the overall operating performance of companies in comScore's industry.
comScore's management also uses Adjusted EBITDA extensively as a measure of
operating performance because it does not include the impact of items not
directly resulting from our core operations. Moreover, the company's
management uses the measure for planning purposes, to allocate resources and
to evaluate the effectiveness of the company's business strategies and
management's performance.
The company believes that excluding non-recurring costs from non-GAAP net
income and EPS and from Adjusted EBITDA provides a meaningful indication to
investors of the expected on-going operating performance of the Company.
Specifically as it relates to M:Metrics, the exclusion of the non-recurring
costs reflect the expected benefits to be realized upon the integration of
M:Metrics into comScore.
comScore's management also uses free cash flow as a non-GAAP measure of
the company's operating cash flow less cash expenditures for capital spending
as a key indicator of the company's operating cash flow performance net of
capital outlays.
Whenever comScore uses such non-GAAP financial measures, it provides a
reconciliation of non-GAAP financial measures to the most closely applicable
GAAP financial measure. The mid-points of the ranges for projected GAAP net
income and non-GAAP adjusted net income are used in the reconciliation, where
applicable. Investors are encouraged to review the related GAAP financial
measures and the reconciliation of these non-GAAP financial measures to their
most directly comparable GAAP financial measure.
Conference Call Information:
comScore, Inc. (NASDAQ: SCOR), will report financial results for the
quarter ended June 30, 2008 in a live conference call on Thursday, July 31 at
4:30 p.m. ET.
Magid Abraham, President and Chief Executive Officer, and John Green,
Chief Financial Officer, will provide commentary on the company's results.
The conference call can be accessed in two ways:

* By telephone at 877-675-4748, pass code 7207404

* Via a webcast at http://ir.comscore.com/events.cfm. A replay of the
webcast will be archived and available for playback beginning at 7:30 p.m. ET
that evening, accessible from the same link.
About comScore
comScore, Inc. (NASDAQ: SCOR) is a global leader in measuring the digital
world. This capability is based on a massive, global cross-section of
approximately 2 million Internet users who have given comScore permission to
confidentially capture their browsing and transaction behavior, including
online and offline purchasing. comScore panelists also participate in survey
research that gathers and integrates their attitudes and intentions. Using its
proprietary technology, comScore measures what matters across a broad spectrum
of digital behavior and attitudes and helps clients design more powerful
marketing strategies that deliver superior ROI. With its recent acquisition of
M:Metrics, comScore is also a leading source of data on mobile usage. comScore
services are used by over 1,100 clients, including global leaders such as AOL,
Microsoft, Yahoo!, BBC, Carat, Cyworld, Deutsche Bank, France Telecom, Best
Buy, The Newspaper Association of America, Financial Times, ESPN, Fox Sports,
Nestle, Starcom, Universal McCann, the United States Postal Service, the
University of Chicago, Verizon Services Group and ViaMichelin. For more
information, please visit http://www.comscore.com
Cautionary Statement
This press release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934, including, without limitation, comScore's ability to
grow its existing customer base and develop new products; the expected
strength of comScore's business and client demand for comScore's products; the
future quality of client relationships and resulting renewal rates; the
expected results and profitability of comScore's acquisition of M:Metrics;
expectations of customer growth; expectations of international sales growth;
assumptions regarding interest rates and effective tax rates; and forecasts of
future financial performance, including related growth rates and components
thereof, and assumptions related to historical seasonality, costs and revenue
growth for the second half and the full year 2008. These statements involve
risks and uncertainties that could cause our actual results to differ
materially, including, but not limited to: integration risks following the
acquisition of M:Metrics; the early stage of the market for digital marketing
intelligence and the rate of development of such market; comScore's ability to
manage its growth; the rate of development of the Internet advertising and
eCommerce markets; comScore's ability to effectively expand sales and
marketing; comScore's reliance on subscription-based revenues; comScore's
ability to retain existing large customers and obtain new large customers;
continued growth of the Internet as a medium for commerce, content,
advertising and communications; inability to sell additional products and
attract new customers; product obsolescence with technological developments;
volatility of quarterly results and analyst expectations; the potential for
failure of acquisitions that divert the attention of comScore's management;
and comScore's limited operating history.
For a detailed discussion of these and other risk factors, please refer to
comScore's Quarterly Report on Form 10-Q for the period ended March 31, 2008,
comScore's Annual Report on Form 10-K for the period ended December 31, 2007
and from time to time other filings with the Securities and Exchange
Commission (the "SEC"), which are available on the SEC's Web site
(http://www.sec.gov).
Stockholders of comScore are cautioned not to place undue reliance on our
forward-looking statements, which speak only as of the date such statements
are made. comScore does not undertake any obligation to publicly update any
forward-looking statements to reflect events, circumstances or new information
after the date of this press release, or to reflect the occurrence of
unanticipated events.

comScore, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except share and per share data)
(unaudited)

Three Months Ended Six Months Ended

June 30, June 30,

2008 2007 2008 2007

Revenues $28,750 $20,809 $55,120 $39,490

Cost of revenues
(excludes
amortization of
intangible assets
resulting from
acquisitions
shown below) (1) 7,857 6,000 14,874 11,388

Selling and
marketing (1) 9,516 6,683 18,461 13,134

Research and
development (1) 3,637 2,813 6,707 5,369

General and
administrative (1) 4,444 2,428 8,330 4,935

Amortization of
intangible assets
resulting from
acquisitions 122 293 129 586

Total expenses from
operations 25,576 18,217 48,501 35,412

Income from
operations 3,174 2,592 6,619 4,078

Interest income, net 492 144 1,311 241
Loss from foreign
currency (87) (202) (142) (210)
Impairment of
marketable
securities (386) - (386) -
Revaluation of
preferred stock
warrant liabilities - (1,288) - (1,277)

Income before income
taxes 3,193 1,246 7,402 2,832

Provision for income
taxes (1,483) (6) (3,161) (52)

Net income 1,710 1,240 4,241 2,780

Accretion of redeemable
preferred stock - (923) - (1,808)

Net income available
to common
stockholders $1,710 $317 $4,241 $972

Net income available
to common stockholders
per common share:
Basic $ 0.06 $0.00 $0.15 $0.00
Diluted $ 0.06 $0.00 $0.14 $0.00

Weighted-average
number of shares
used in per share
calculation
-- common stock
Basic 28,651,067 4,933,081 28,424,191 4,567,908
Diluted 30,269,947 4,933,081 30,130,009 4,567,908

(1) Amortization of
stock-based
compensation is
included in the
line items above
as follows

Cost of revenues 204 60 345 69
Selling and marketing 605 172 1,026 211
Research and development 168 53 282 61
General and
administrative 613 186 1,080 237

comScore, Inc.
Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)

Six Months Ended June 30,

2008 2007

Operating activities:

Net Income $4,241 $2,780
Adjustments to reconcile net income to
net cash provided by operating activities:

Depreciation 2,243 1,842

Amortization of intangible assets resulting
from acquisitions 129 586

Provision for bad debts and sales allowances 222 31

Stock based compensation 2,733 578

Deferred rent (24) -

Revaluation of preferred stock warrant
liability - 1,277

Amortization of deferred finance costs - 3

Deferred tax benefit 2,957 (39)

Impairment of marketable securities 386 -

Changes in operating assets and liabilities,
net of effect of acquisitions:

Accounts receivable 1,055 (770)

Prepaid expenses and other current assets 279 (411)

Other non-current assets 28 206

Accounts Payable, accrued expenses and other
liabilities (1,340) (2,012)

Deferred revenues 3,726 3,588

Deferred rent 7,854 -

Net cash provided by operating activities 24,489 7,659
Investing activities:

Acquisition, net of cash acquired (44,403) -

Recovery (payment) of restricted cash 1,385 (267)

Purchase of investments (64,129) (8,900)

Sale / maturity of investments 65,332 4,400

Purchases of property and equipment (10,066) (1,561)

Net cash used in investing activities (51,881) (6,328)
Financing activities:

Proceeds from exercise of common stock options 714 640

Repurchase of common stock (1,034) -

Principal payments on capital lease obligations (441) (1,009)

Net cash used in financing activities (761) (369)

Effect of the exchange rate changes on cash (56) 251

Net (decrease) increase in cash and cash
equivalents $(28,209) $1,213

Cash and cash equivalents at beginning of
period $68,368 $5,032

Cash and cash equivalents at end of period $40,159 $6,245

comScore, Inc.
Condensed Consolidated Balance Sheets
(in thousands)

June 30, December 31,

2008 2007

(Unaudited)

Assets

Current assets:

Cash and cash equivalents $40,159 $68,368

Short-term investments 27,082 28,449

Accounts receivable, net of allowances of
$485 and $234, respectively 23,923 23,446

Prepaid expenses and other current assets 1,898 1,620

Restricted cash - 1,385

Deferred tax asset 642 176

Total current assets 93,704 123,444

Long-term investments 7,601 7,924

Property and equipment, net 15,149 6,867

Other non-current assets 223 168

Long-term deferred tax asset 4,466 7,888

Intangible assets, net 10,048 17

Goodwill 42,546 1,364

Total assets $173,737 $147,672

Liabilities and stockholders' equity

Current liabilities:

Accounts payable $2,012 $1,140

Accrued expenses 8,768 6,838

Deferred revenues 42,073 33,045

Deferred rent 913 154

Capital lease obligations 938 900

Total current liabilities 54,704 42,077

Capital lease obligations, long-term 499 977

Long-term deferred rent 7,396 181

Long-term deferred revenue 140 -

Total liabilities 62,739 43,235

Commitments and contingencies

Common stock subject to put - 1,815

Stockholders' equity:

Common stock 29 28

Treasury stock (1,034) -

Additional paid-in capital 188,752 183,433
Accumulated other comprehensive
(loss) / income (150) 1

Accumulated deficit (76,599) (80,840)

Total stockholders' equity 110,998 102,622

Total liabilities and stockholders' equity $173,737 $147,672

Reconciliation from Income before income taxes to Non-GAAP Adjusted Net
Income and Adjusted EBITDA

Three Months Ended Six Months Ended

June 30, June 30,

2008 2007 2008 2007

(Dollars in thousands, except per share data)

(unaudited)

Income before income
taxes $3,193 $1,246 $7,402 $2,832

Deferred tax provision 1,344 0 2,957 0

Current cash tax
provision 139 6 204 52

Net income $1,710 $1,240 $4,241 $2,780

Amortization of
acquired intangibles 122 293 129 586

Stock-based
compensation 1,590 471 2,733 578

Impairment of
marketable securities 386 - 386 -

Non-recurring costs
from acquisition 458 - 458 -
Revaluation of preferred
stock warrant
liabilities - 1,288 - 1,277

Deferred tax provision 1,344 - 2,957 -

Non-GAAP adjusted net
income $5,610 $3,292 $10,904 $5,221

Current cash tax
provision 139 6 204 52
Depreciation 1,208 981 2,243 1,842
Interest (income)
expense, net (492) (144) (1,311) (241)

Adjusted EBITDA $6,465 $4,135 $12,040 $6,874
Adjusted EBITDA
margin (%) 22% 20% 22% 17%

EPS (diluted) $0.06 $0.00 $0.14 $0.00

Non-GAAP EPS
(diluted) $0.19 $0.00 $0.36 $0.00

Reconciliation from GAAP Operating Cash Flow to Free Cash Flow

Three Months Ended Six Months Ended

June 30, June 30,

2008 2007 2008 2007

(Dollars in thousands)

(unaudited)

Net cash provided by
operating activities $14,154 $4,503 $24,489 $7,659
Purchase of property
and equipment (6,385)* (1,067) (10,066)* (1,561)

Free cash flow $7,769 $3,436 $14,423 $6,098

* Includes approximately $5.3 and $7.8 million in leasehold improvements
due to tenant allowances

Reconciliation from Income before income taxes to Non-GAAP Adjusted Net
Income and Adjusted EBITDA (Guidance)
Forecasted amounts for the three months ended September 30, 2008 and the
year ended December 31, 2008 are based on the mid-points of the range of the
guidance provided herein.
Three Months Ended Twelve Months Ended

September 30, December 31,

2008 2007 2008 2007

(Dollars in thousands)

(unaudited) (unaudited) (unaudited)

Income before income
taxes $950 $3,920 $12,350 $11,794
Deferred tax provision 335 - 4,865 (8,065)
Current cash tax
provision 90 129 585 543

Net income $525 $3,791 $6,900 $19,316

Amortization of
acquired intangibles 350 211 800 966

Stock-based
compensation 2,000 705 6,900 2,474

Impairment of
marketable securities - - 385 -

Non-recurring costs 990 - 2,050 -

Revaluation of preferred
stock warrant liabilities - (82) - 1,195

Withdrawn follow-on
public offering costs - - - 392

Deferred tax provision 335 - 4,865 (8,065)

Non-GAAP adjusted net
income $4,200 $4,625 $21,900 $16,278

Cash tax provision 90 129 585 543

Depreciation 1,560 928 5,250 3,762

Interest (income)
expense, net (300) (1,180) (1,935) (2,627)

Adjusted EBITDA $5,550 $4,502 $25,800 $17,956

Adjusted EBITDA margin
(%) 18% 20% 21% 18%

EPS (diluted) $0.02 $0.00 $0.23 $0.88
Non-GAAP EPS (diluted) $0.14 $0.00 $0.72 $0.71

* Forecasted, unaudited GAAP net income and adjusted amounts disclosed
above do not reflect any adjustments related to a reversal of the
company's deferred tax allowance.

SOURCE comScore, Inc.

John Green, Chief Financial Officer of comScore, Inc., +1-703-438-2325,
jgreen@comscore.com