Max Grigoryev
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Max Grigoryev in Fundamentality,

ComScore: investment idea

ComScore provides digital media analytics products and services for content publishers, advertisers, advertising agencies, and network operators worldwide. The company's stock price lost more than 15% since mid-July, however the stock price has a high volatility. 


Let's check if the company is an interesting investment opportunity. 

Financial and Operating metrics

  • Number of customers

Number of customers is growing, the company increased it from 2,150 on 2012 to 2,550 in 2014. Moreover, this number continues to grow: the company had around 2,683 clients as of July 2015. I think that the company will increase the growth rate of number of clients, especially considering that Q4 is the most active period for marketing activities. 

  • ARPA

The company increased ARPA from around $119K in 2012 to $129K in 2014. ARPA continued its growth in 2015 as well - as of June 2015 the company reached around $67 in ARPA for the first half of the year. As I have already mentioned, Q4 is the most active for marketing campaigns, therefore I assume that the company will be able to get the high ARPA growth rate by the end of this year. 

  • Sales and marketing expenses / Customer acquisition cost

ComScore reduced the marketing expenses significantly in 2015. As of June 2015 the company spent around 29% of revenue for marketing activities, however one year before ComScore spent more than 33% for marketing. 

Summary

I think that the company is efficiently working with its cost base, reducing the OPEX, increasing the revenues and marginality. I think that ComScore is a good investment opportunity.