Good day, ladies and gentlemen, and welcome to the comScore third quarter 2015 financial results conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. As a reminder, this conference call is being recorded. I would like to introduce your host for today's conference Mr. Mel Wesley. Sir, you may begin.

Thank you. Good morning and welcome to comScore's earnings call for the third quarter of 2015. I'm Mel Wesley, comScore's Chief Financial Officer and with me today is. Before we begin, please allow me to read the following disclaimer regarding our use of forward-looking information and non-GAAP financial measures. During the course of today's call, as well as during any question-and-answer period that may follow, representatives of the company may make forward-looking statements within the meaning of Securities Act of 1933 and the Securities Exchange Act of 1934, regarding future events or performance of the company that involve risks and uncertainties, including without limitation, expectations as to opportunities for comScore, including new product lines, customers, markets and partnerships; expectations as to the strength of comScore's business, including the growth and composition of comScore's customer base and renewal rates; expectations regarding comScore's products, including regarding new releases and features, their quality relative to competitors, customer adoption, and the potential benefits of particular products; expectations regarding the strategic and economic benefits of certain strategic relationships, expectations as to the financial effects of comScore's pending acquisition of Rentrak and divestiture of certain business lines; assumptions regarding tax rates and net operating loss carry-forwards, and forecast of future financial performance for the fourth quarter and full-year 2015, including related growth rates, exchange rates, and assumptions. Such statements are only predictions based on management's current expectations. Actual events or results could differ materially from those predictions, due to a number of risks and uncertainties, including those identified in the documents comScore files from time-to-time with the Securities and Exchange Commission. Those documents specifically include, but are not limited to, comScore's Form 8-K filed earlier today relating to this call, and comScore's Form 10-K for the period ending December 31, 2014, along with subsequently filed Form…

Thank you, Serge. I'll now provide more detail regarding our third quarter results. Revenue in the quarter was $92.4 million on a pro forma basis, up 14% versus the same quarter last year. We're pleased with our revenue growth, despite softness from our Digital Analytix division and continued foreign currency exchange rate headwinds. If exchange rates against the U.S. dollar remain content from the same quarter last year, our Q3 pro forma revenue would have been $96.4 million, or a growth of 19%. Turning to slide 17, revenue from non-monetary transactions in the quarter was $9 million, down $2 million sequentially and up $4 million versus the same quarter last year. Expense from non-monetary transactions in the quarter was $5 million, flat sequentially and up $2 million versus the same quarter last year. Subscription revenue in the quarter was $85 million on a pro forma basis, up 16% versus the same quarter last year. Subscription and project revenue represented 92% and 8% of total revenue respectively. Revenue from existing customers was $85 million on a pro forma basis, up 14% year-over-year and representing 92% of total revenue. Total customers increased by 45 from last quarter to 2,728. Our international revenue on a pro forma basis was $25 million, which was flat year-over-year, despite significant foreign currency headwinds and represented 27% of total revenue. Moving to margin and expenses on a GAAP basis, our gross margin was 67%, down from 70% for the same quarter last year. The lower gross margin is primarily due to data costs associated with recent product launches, including cross-media. Prior to product launch, these costs were expensed in research and development. Costs associated with new offerings will put near-term pressure on gross margin, but we expect margin to expand as new product sales ramp. Selling and…

Our first question comes from Youssef Squali from Cantor Fitzgerald. Your line is open.

Thank you very much. Good morning, Serge and Mel. Just a couple of questions. One on the DoubleClick relationship; I was hoping, Serge, if you can give us just any color on how that relationship is going. This was the first quarter where that relationship was at a beta. What kind of traction have you gotten? If you can help us quantify it in any way, in terms of volume, in terms of customers, revenue would be nice, as well. And kind of expectations for 2016, or actually just expectations for the fourth quarter. Let's start with that. And then, Mel, so congratulations on the Digital Analytix sales. In terms of Q4 guidance, we've quantified the impacts on revenue. I was hoping that you would maybe quantify the impacts on EBITDA. And then when was that deal actually consummated? Was there any revenue that you X'ed out of Q3 from Digital Analytix? Thanks. Serge Matta - President, Chief Executive Officer & Director: Hey, Youssef, I like your questions. Let's talk about Google. Obviously, we're not going to disclose Google's specific performance. We're actually not even allowed to do that. But suffice to say, we're really happy with 53% year-over-year growth on vCE. Obviously that includes DoubleClick. We're also happy with the ability to measure video viewability on YouTube, and as mentioned things are on track for the first half of 2016 for mobile and international expansion. We're also starting to see increasing joint marketing sessions with Google, as is evidenced by a recent webinar where more than 100 prospects attended. I have to tell you, it's early. Things are going well. I'm really happy and pleased about the 53% year-over-year increase that's in total revenue and we are committed to the $100 million number that we mentioned by 2017. So things are going well. No additional color to provide. I'll hand it off to Mel. I do want actually – before I hand it off to Mel, when was this consummated, this actual Adobe deal? How about two hours ago, or three hours ago? And that's really – it was an all-nighter and it got down three hours ago and – but it got done. And so, no, there was no Q3 revenue impact.

Hey, Youssef, it's Mel. Yes, so I think the only remaining question you had was on EBITDA impact for Q4 that we put into the guide. And that was a range of between $1 million and $2 million. So that is – we wanted to call out the – obviously the top-line number just so that was 100% clear but, again, the EBITDA range impact was between $1 million and $2 million.

Got it. Thanks a lot.

Yeah. Serge Matta - President, Chief Executive Officer & Director: Sure.

Our next question comes from Robert Peck from SunTrust. Your line is open.

Hi, just a couple of quick questions here. So, just touching on Youssef's question there, as well. Bigger picture, does this make for a better relationship with Adobe? Is this a precursor to anything, Mel? Maybe you can just elaborate – sorry, Serge, maybe just elaborate on that. And then, Mel, on the NMT [Non-Monetary Transaction] revenues, it looks like you're implying more about $14 million, $15 million for the second half. We were a little bit lower there. Were curious if anything particularly changed there? Thanks. Serge Matta - President, Chief Executive Officer & Director: Hey, Bob. I need to be careful what I say and all I'm going to say is, listen, historically Adobe and comScore have had a friction point, and that friction point was Digital Analytix. We competed against each other in a lot of different scenarios and a lot of different clients at Microsoft, at BBC, at Orange. We competed in a lot of cases. We won a lot of cases, they won. It was a very strong point of contention. That point of friction has been removed. What it means for the future, honestly, I'm not going to comment, but suffice to say that point of friction has been removed. And then I'll hand it off to Mel for the NMT question.

Hey, Bob. And specifically you're talking about in the current quarter, Q3, correct?

Yes, and just the second half in total

So we had one incremental deal in Q3 that contributed NMT revenue. But as you saw, NMT revenue in total declined $2 million sequentially. In Q4, the revenue and expense that I noted is just related to the current active deals we have tracking. We do not anticipate any incremental deals related to non-monetary transactions in Q4. Serge Matta - President, Chief Executive Officer & Director: As we mentioned in early September, we are committed to bringing down the non-monetary revenue. That being said, we are going to be opportunistic where it makes sense, and we will continue doing them when it makes sense, if it makes sense. That said, if you look at the numbers that we're projecting for Q4, it is $2 million lower than Q4 of 2014 and $3 million lower in expense from Q4 2014. So we have heard from the Street. We understand it and we are committed to bringing it down, but we're also going to be opportunistic if and when the time – if we need to do these in the future, we'll continue doing them, but not at the same rate that we were in the previous.

Okay, thanks so much. Serge Matta - President, Chief Executive Officer & Director: Sure.

Our next question comes from Jason Helfstein from Oppenheimer. Your line is open. Jason S. Helfstein - Oppenheimer & Co., Inc. (Broker): Thanks, a few questions. Just first, I just want to lay out what we calculated we think was the year-over-year organic growth if you strip out currency and non-monetary revenue. So, Mel, just correct me if I'm wrong. The second quarter would have been about 12% growth year over year, third quarter 15%. And then the guidance, assuming about $2.5 million of currency headwind would imply about 22%, and so I don't know if that foots with your numbers. Second, if I look at nine-month free cash flow, year over year it's up 22%. That's an as-reported number. If you take out the Digital Analytix, how would that impact the free cash flow? Also, we're getting questions about the S-4 that was filed and there are projections for both Rentrak and comScore in there. And I know – so if you can comment on if those actually reflect a business outlook, or are they are more banker projections that have to be done for legal reasons? And then lastly, can you comment as far as the Total Home Panel? Is this something you expect to be material to revenue next year, or is this more will be in beta, will be an actual sellable product next year and if it's a sellable product, what would be the magnitude – give us something that is comparable that you sell right now? Thanks.

Yes, so on the growth rates that you outlined, I think we're within like 1% – 1.5% on all the ones that you quoted, so I think we're fine there. We can work through, if you have some questions about that, we can work through those separately. On the DAx divestiture, we are still working through the carve-out financials. Obviously, that's been a part of our business for several years, so that's going to take us some time. As Serge mentioned, that was literally signed at 4 o'clock in the morning. So unfortunately, I don't have specifics that I can provide in terms of forward impact, but we'll be working through that and reporting on that here in the near term. Serge Matta - President, Chief Executive Officer & Director: And then, Jason, I'll take on the last two in terms of the projections on the S-4. Yes, there were numbers that moved around and they got revised downwards. Honestly, all we can say at this point is we're just trying to take a conservative approach. There's really nothing to it. You shouldn't read a whole lot into it on both either our side or on Rentrak's side. It's just taking a conservative approach as we put the two companies – hopefully as we put the two companies together upon regulatory and shareholder approval. On the Total Home Panel, I'm hoping you got the sense – and obviously, we have been really excited about this. We've been working on it for a long time. It's finally out, it's live. We're not going to go do some sort of a beta or anything like that. We hope to generate revenue in 2016, absolutely 100% it will probably be initially – think of them as what we call data feeds to our…

Our next question comes from Laura Martin from Needham. Your line is open. Laura Martin - Needham & Co. LLC: Good morning. So, Serge, I'm really interested in how Total Home integrates with the Rentrak data because it feels like you're replicating the Nielsen panel, which is also 50,000 homes, although you're connecting it to all the devices in the home, which is a cooler idea. But it feels like a lot of the data you'll be gathering is actually replicated by Rentrak. So are you paying twice for the television data through both the acquisition and then through this expense that you are taking on? And then my second question is also strategic. Since you guys have announced the merger a month ago, I'm very interested in the incoming call volume from clients who are interested in your stated strategy of this cross-platform. We are hearing a lot of grumblings that this measurement has been unavailable. So what kind of – is the call volume higher, lower than you've expected from announcing that you're actually going to do something that everyone says they want? Serge Matta - President, Chief Executive Officer & Director: Sure and good morning, Laura. Absolutely, on the Total Home stuff, it is very, very different from what we're getting from the Rentrak merger. Just to give you an idea, what we are getting here from Total Home Panel is all the different connected devices. Now, yes, some of it is data from the set-top box data, but more importantly what we are getting here is over-the-top devices, we're getting mobile devices, we're getting PC devices, we're getting everything within the home, it's not just the set-top box viewing. It is really from every connected devices. We're seeing Netflix. We're seeing Roku. We're seeing Chromecast, that…

Our next question comes from Shyam Patil from SIG. Your line is open.

Hi. Good morning, guys. I had a few questions. Serge, on the Bid Ratings product, it seems like a very interesting product. Can you talk about just kind of how you are thinking about this as a revenue driver, how big it could be in 2016, 2017 and who do you consider to be the key competitors here? Serge Matta - President, Chief Executive Officer & Director: Sure. On the Bid Ratings, I think the fact is, we have a bunch of differentiated unique solutions here, right? We're the only service out there that can provide viewability, brand safety, fraud, and then the impact, most importantly on the Media Metrix rankings, on the Video Metrix rankings, on all the different rankings that we have. That's the currency that clients use to decide whether or not the actual advertising actually worked. Did it show up and did it actually provide a better yield on Media Metrix and on Video Metrix. So the way we're looking at it and the fact that we can't do this alone. We've always said this ecosystem is so complicated we have to integrate it with other partners. So that's why we've integrated with programmatic partners, like TubeMogul and AppNexus and others. And they are going to be – they've installed it and we've integrated that into their platforms. From a revenue perspective, it's going to be a CPM-like model, but it also makes our product stickier in terms of our syndicated products. That's been one of the questions people have always asked is, with programmatic, does the reliance of our syndicated products become more or less? And we've always said, it's more, and it's because of products like Bid Ratings. It will probably be – it will be a CPM-like model, can't forecast any revenue in 2016 and 2017 at this point. But suffice to say, we're going to be doing it by ourselves, but also with the cooperation and integration with these programmatic platforms. And then the onus is on both of us, both us and the partners, to make sure that the utilization is there because at the end of the day you just don't want to be integrating it and then – integrate it and then leave. You want to make sure that you integrate it and then make sure that the utilization is there and that's a key focus of our execution on a going-forward basis.

Great. And then, Mel, I wanted to go through some of the numbers and the impact that you may have seen in some other areas. But, for 3Q revenue, I know you gave the year-over-year FX impact. Give us sense as to what the FX impact was on revenue kind of versus – kind of in the period between when you gave guidance originally for 3Q when you reported and the same for EBITDA for the third quarter?

I am sorry. Could you clarify that a bit? I mean, the year-over-year, we have good visibility into the year-over-year variance obviously because we know what the exchange rates were obviously in the comparable period and within the quarter – in third quarter from the time we gave guidance to the end of the quarter. Obviously, it didn't significantly change. So we had good visibility into that. Does that answer your question?

I'm just trying to figure out, if you look at the kind of the actual reported results versus kind of the midpoint of 3Q revenue, about $700,000 and $800,000 impact, just trying to figure out if FX is the reason for that or if there's some other reason?

Got you. No, no, no, it was primarily softness in our DAx division.

Great. And I guess the same for the fourth quarter, it seems like DAx is the main reason for the 4Q mid-point now being kind of below the previous implied 4Q mid-point, but was there any other variable there, like FX that's impacting the revenue guide and then the same thing for EBITDA. It looks like the variance is about $2 million at the mid-point, you said DAx is about $1 million to $2 million there. So is there anything else whether it's FX or merger fees that's impacting that kind of extra $1 million or so in the fourth quarter EBITDA versus kind of the original kind of implied mid-point?

No. So the merger fees, we obviously carved those out, so that's not impactful. But the issue is that the softness that we saw in DAx, that actually does have a carry-through impact in the Q4 for even October and November because obviously those contracts are typically ratable in nature. So that flow-through is also impacting the quarter in October and November, when obviously we will still have DAx included in our numbers prior to the sale.

Got it. So just to summarize, it seems like kind of you think your expectations, the softness was in DAx or in the merger fees for the third quarter? Is that correct?

Merger fees in the third quarter for the EBIT range, yes, the merger fees – the projected merger fees are not a factor in the adjusted EBITDA range. That's primarily the carry-through on the DAx weakness.

Great. And then just maybe one more question, I know you can't give the DAx impact for 2016 or just how to think about it what it contributed in 2016, but can you give a sense as to what DAx was in 2015, maybe from a top-line standpoint, the growth rate you were seeing there and then kind of the EBITDA contribution as well?

Yeah, I mean it was a bit less than 10% of our revenue, which is kind of consistent with what we've said. But, again, we're working through the carve-out financials. I don't want to get too specific on the metrics because it is a tedious process going through and doing the carve-out. And one of the issues is that obviously some of the contracts that we signed were bundled arrangements with other products, right, so there's a lot of tedious calculations and analysis you have to do to tease out those differences, i.e. the financial impact of what you're divesting versus what you're keeping. So we're working through that now and we'll obviously get something out on that as soon as we complete that analysis, but it is a pretty tedious analysis, and you have to go back obviously for all the comparable periods as well.

Great. Thank you, guys. Congrats on the results.

Yes. Appreciate it. Serge Matta - President, Chief Executive Officer & Director: Sure. Thanks.

Our next question comes from Timothy McHugh from William Blair. Your line is open. Timothy J. McHugh - William Blair & Co. LLC: Hi, guys, thanks. First I guess, I apologize if I missed it, but the home panel that you are building out, any way to think about the cost, I guess, and I guess before the revenue comes in, how much of an investment do we need to anticipate?

Hey, Tim, it's Mel. So, we're working through the – still working through the proof of concepts right now with a couple of vendors and this is such a new effort that the vendors don't have any past experience with this, right? So, they were unable to give us any type of guarantees to-date on the ramp, i.e. how long it would take to build the panel up to the levels that we need to generate revenue or to start generating revenue. And they also are not able to give us any firm, fixed estimates on the ultimate costs. Now we do expect to get that in the near-term, probably in the next 30 days to 45 days, so we'll have more visibility, but they haven't completed that proof of concept phase yet. So just because this is such a new effort for them and for us, we don't have anything that we can share at this time that's definitive. I will tell you that what we've done is in the contracts, we're negotiating as such that we'll be basically deferring the costs on the panel build until we start to generate the revenue and obviously use that data in our products. So obviously, we're very sensitive to aligning the revenue contribution with the costs. So I can certainly share that with you, but unfortunately at this time we haven't been provided with anything definitive from the vendors, because again they are still working through the proof of concept. Timothy J. McHugh - William Blair & Co. LLC: Do you have a sense for the homes you are in today though, the 800 homes, I mean, what is the cost to build that out yet? Serge Matta - President, Chief Executive Officer & Director: You know, it's early, but I…

Yes, we do have normal fluctuations. We did see a decline in customers associated with the Digital Analytix division. That was probably the thing that stuck out the most. If you normalize the rate of customer adds over the last six to eight quarters, I think it's in line with those. Timothy J. McHugh - William Blair & Co. LLC: Okay, thank you. Serge Matta - President, Chief Executive Officer & Director: Sure.

Our next question comes from Allen Klee from Sidoti. Your line is open. Allen Klee - Sidoti & Co. LLC: Yes, good morning, a couple questions. First one, if there's any updates on the Kantar partnership? And second, what is the share count now? Can you disclose what you're getting paid for the Digital Analytix business? And then to what extent are you able to get – I heard this somewhere, but I don't know if it's true or if you can comment on it. But from the set-top data that you get from some of your suppliers, is there any way that you can get data on an individual level? Thank you.

I can address the share count for you really quickly, Allen. I assume you're talking about just kind of outstanding as of the end of the quarter. Allen Klee - Sidoti & Co. LLC: Yes, if you had diluted, yes.

Outstanding at the end of the quarter, just straight outstanding was 38.953 million. And you said you wanted just diluted for the quarter was... Serge Matta - President, Chief Executive Officer & Director: As Mel is looking at that, I can answer some of the other questions. How is Kantar going? Kantar is going very well. Kantar is a large, large organization, and we have our products and services made available in a lot of different places, both in the U.S. and overseas. We've expanded doing some countries in mobile. As we mentioned last quarter, one of the things that we are working on is we're hopeful to get that going sometime early next year is the combination of our data, our census digital data with all of the offline data that Kantar has. Kantar has a lot of offline purchasing related to – they bought at the grocery store or they bought at a consumer electronics store, stuff like that. We're going to be – the idea is we're going to be combining the digital data that we have down to that individual with the offline purchasing. And that could be then used for ad effectiveness, cross-platform ad effectiveness studies. So that's a big opportunity that we see that we can do in a lot of different countries. In terms of the set-top box data, we have access to a tremendous amount of set-top box data available today. Hopefully, with the merger getting approved, at the beginning of the year we'll have access to a lot more set-top box data coming from the Rentrak merger. It does provide us at the individual household level. We also have the ability to calibrate that and turn it into a person-level sample. We have access to a person-level TV sample, as everybody knows. So we feel very confident about our position in terms of both on the set-top box data at a household level and also at the person level as well.

Allen, just getting back to you on the share count. So as I mentioned, the straight outstanding as of the end of the quarter was 38.953 million. The diluted – fully diluted for the quarter was 39.8 million, fully diluted for the nine months ended was 37.6 million. Allen Klee - Sidoti & Co. LLC: Thank you. Serge Matta - President, Chief Executive Officer & Director: Sure.

Our next question comes from Tom Eagan from Telsey Advisory Group. Your line is open. Serge Matta - President, Chief Executive Officer & Director: Hey, Tom. Tom? Operator, we may have lost Tom.

Can you hear me? Serge Matta - President, Chief Executive Officer & Director: Yes.

Is this better? Serge Matta - President, Chief Executive Officer & Director: Yes.

Okay. Serge, last quarter you mentioned how the impact of the data from cross-media varies widely according to each national network. Serge Matta - President, Chief Executive Officer & Director: Tom, unfortunately we're having phone problems and we've lost you again.

Okay. I'll call back. Thank you. Serge Matta - President, Chief Executive Officer & Director: Sure. Operator, is there anybody else?

At this time, I'm showing no further questions. I'd like to turn the call back over to Mr. Serge Matta for closing remarks. Serge Matta - President, Chief Executive Officer & Director: Thank you all for your participation today. Our third quarter results confirm that we're executing well. We're focused, committed to a winning strategy and eager to continue moving comScore and the market forward. We look forward to speaking with you again on the next conference call, and hopefully by then, we'll be with the new comScore between us, comScore and Rentrak. Thank you.