Comscore Inc (SCOR) 2014 Q2 法說會逐字稿

Good day ladies and gentlemen. Welcome to the Q2 2014 comScore Incorporated earnings conference call. My name is Misharon, and I'll be your operator for today. At this time all participants are in listen-only mode. We will conduct a question-and-answer toward the end of this conference. (Operator Instructions). As a reminder, this call is being recorded for replay purposes. I would now like to hand the call over to Mr. Ken Tarpey. Please proceed.

Thank you very much. Good morning everyone, and welcome to comScore's earnings call for the second quarter of 2014. Again, I'm Ken Tarpey, and with me today is Serge Matta, our President and CEO.

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 periods that may follow, representatives of the Company may make forward-looking statements within the meaning of the 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, the strength of comScore's business, expectations as to opportunities, including new customers and markets for comScore, expectations regarding the benefits of partnerships with parties such as Google, Yahoo, and GroupM, expectations as to the growth and composition of comScore's customer base and renewal rates, expectations regarding the impact and benefits of particular lines of business and products, expectations regarding the relative value of comScore's products, expectations as to the development and release of new products and features, expectations as to the financial effects of comScore's acquisition of MdotLabs, assumptions regarding tax rates and net operating last carry forwards, and forecasts of future financial performance for the third quarter and full year 2014, 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 ended December 31st, 2013, and comScore's most recent quarterly report on Form 10-Q. We caution you not to place undue reliance on any forward-looking statements included in these presentations, which speak only as of today. We do not undertake any obligation to publicly update any forward-looking statements to reflect new information after today's call, or to reflect the occurrence of unanticipated events.

In addition we may refer or reference certain non-GAAP financial measures in the course of our presentation, you will find our press release on our Investor Relations website with a reconciliation of non-GAAP financial measures discussed during today's call to the most directly comparable GAAP financial measure. The link to our Investor Relations website is IR.comscore.com, and our results are posted under Press Releases. We have a presentation posted on our IR website under Events and Presentations, that accompanies our comments today, it might be helpful to follow it along with us. Now with that, I will turn the call over to Serge.

Thank you Ken, and good morning everyone, and thank you for joining us today. Let me first provide you an overview of the quarter, and then discuss key operational highlights. After that, I'll turn it over to Ken to review our financial performance before we take your questions. Let's begin with slide four. comScore delivered another quarter of record revenues and strong profitability demonstrating the continued positive momentum across our business. Second quarter 2014 revenues were $80 million, up 14.5% over last year's results. Adjusted EBITDA was $16.7 million, a 20% year-over-year increase at a 21% EBITDA margin, reflecting continued operating leverage in the business, and disciplined expense management. We repurchased $14.8 million worth of shares during the quarter, and our Board has authorized a new $50 million repurchase plan to enable future opportunistic share repurchases.

As you can see, our key operating metrics demonstrate the fundamental strength and continued momentum of our business. For the overall business, we achieved 43 net new customers. During the quarter we added 54 new customers to our Media Metrix Multi-Platform service, also known as MMXMP, bringing our total customers using MMXMP to 405. What is really exciting here is similar to previous quarters, two-thirds of these customers also bought Mobile Metrix and/or Video Metrix during the same quarter, demonstrating the value that customers see in our suite of service offerings. Our contract renewal rate with existing customers again remained above 90% on a constant dollar basis.

Turning to slide five, we have previously shared our corporate priorities with you, and want to put them in context. comScore is uniquely positioned at the intersection of three significant mega-trends in digital media. Consumers are rapidly transitioning their media and digital consumption to mobile and multi-platform devices. Digital video has increasingly become the standard of how TV, movies, and other forms of media are viewed, and advertising has become more automated with advancements in media-buying technology. Our strategic priorities are focused on leveraging the tremendous market opportunity these intersecting trends present. First, we continue to expand our cross-media offerings, and remain on track to deliver a syndicated cross-media product by the end of this year that includes our total video measurement solution.

As a reminder, our cross-media product with total video includes the following, Linear TV, digital usage across PCs, tablets, Smartphones or through over the top video, game consoles, and Internet-connected smart TVs. Second, we're continuing to extend our vCE market leadership, we're seeing good adoption of our vCE mobile product, and are preparing to expand vCE 2.0 to new international markets. Our vCE integration with Yahoo is live, and our partnership with Google is on track. These partnerships both provide strong evidence of increasing market validation of the value of vCE, and support our third priority for 2014, which is to integrate comScore data into the places where clients use them. Lastly, we remain focused and committed to sharp execution and returning capital to investors, both of which we delivered on during the second quarter and through the first half of this year.

Turning to slide six, today we are jointly announcing that our vCE product integration with Yahoo is live. After a successful soft launch in June as promised, Yahoo has fully integrated vCE throughout its Unified advertising solutions. With the integration complete, Yahoo will now offer advertisers the opportunity to ensure and verify audience delivery on display and video campaigns, bought direct or programatically based on comScore vCE. Yahoo is the first publisher to fully integrate vCE data throughout its ad buying and reporting platforms for both display and video campaigns. Having reached this milestone, our partnership with Yahoo will continue to develop, with plans to ensure audience delivery for both mobile campaigns against vCE, and expand to international advertisers in later phases.

Our Google partnership, which integrates vCE into the Double Click ad platform, and delivers real-time reporting to advertisers, is also solidly on track. A pilot with leading brands, many of whom are represented by the Publicis Group is well underway, and we look forward to formally launching Google in the late third quarter as we've previously noted. We are very pleased with the progress on these key strategic partnerships that extend the reach of vCE, as it helps the industry discern the true value of media and advertising.

Now to be clear, the 2014 guidance we are providing today does not reflect any meaningful revenue benefit from the Yahoo or Google agreements. While we are very optimistic and excited about the prospects for these partnerships, it's simply way too early to have clear visibility on the revenue trajectory and impact on other financial metrics. We anticipate both of these strategic agreements will begin to provide us incremental revenues starting later this year. We have not factored these future revenue benefits in our current guidance, and will update you as these partnerships roll out.

Now, moving to slide seven, we continue to see strong momentum across our vCE product offerings. I'm very pleased to announce that in Q2 we expanded our relationship with GroupM, and are now a preferred strategic partner, which will further enhance our vCE client base globally. As you know, GroupM is WPP's consolidated media investment management operation, serving as the parent company to agencies including Maxus, MEC, MediaCom, Mindshare, Catalyst and Xaxis. GroupM is the leader in worldwide advertising billings and global market share. This partnership with GroupM in addition to our previously-announced relationships with the Publicis Group, the Inter Public Group of companies also known as IPG, and Omnicom, represent a tremendous vote of confidence for vCE on our advertising solutions from the holding companies that control the majority of the world's ad spending.

Turning to slide eight, in addition to the support from media-buying groups and agencies, vCE continues to find strong support among leading brands, and we continue to execute on our product road map. In Q2 P&G the world's largest advertiser, renewed its preferred partnership with comScore. In April we announced the availability of vCE mobile, which provides actionable metrics for brand advertising on smartphones and tablets, for both in app and mobile web ads. Throughout the second quarter, we have seen adoption of vCE mobile by major brands and dozens of the industry's largest mobile app servers and networks, including YouTube, have become vCE mobile authorized tagging partners. More than 100 publishers are now in the process of certification. We continue to focus on delivering the best product to our clients, with the most granular data, and today vCE leverages more than 1.6 billion demographic profiles worldwide. Finally, we're on track to expand the footprint of vCE 2.0 around the world, and in the second half of the year, we will be rolling out this next generation of vCE outside of the US, to the UK, Canada, and Italy.

As presented on slide nine, one of the most vexing issues in digital media measurement has been the problem of non-human traffic and fraud. Non-human traffic inflates site traffic metrics and data and ad delivery, leaving advertisers unable to accurately evaluate their ad buys, and diminishing the value of digital advertising overall. As a result, there is a significant amount of advertising dollars being wasted. According to the data cited by the IAB, more than 30% of web traffic is considered fake. comScore data shows that in some digital ad campaigns, more than 50% of ads are served to non-humans. To ensure accurate reporting, a key goal at comScore has been to detect and remove non-human traffic from our digital measurement. Since 2002 we have used a variety of increasingly sophisticated approaches to eliminate non-human traffic from our reporting, including the Media Metrix and vCE product suites so that our customers can be confident they're receiving accurate reads on their audience composition and advertising spend. Increasingly, non-human traffic is driven by fraud. This dynamic distorts the true value of digital media, and hurts the industry's ability to properly value advertising and grow.

Last night we announced our acquisition of MdotLabs, a leading provider of sophisticated ad fraud detection technology. MdotLabs uses signal processing, statistics, machine learning, and applied math to identify a variety of malicious activities including bots, click farms, pay per view networks, and a growing list of traffic generation techniques. The acquisition of Mdot will enhance comScore's non-human traffic and HD detection methods, and we believe these sophisticated detection methods will become a key product differentiator in the future. The entire Mdot team's lab of 12 engineers and data scientists will be joining comScore, including co-founders Timur Yarnall and Paul Barford. We look forward to scaling Mdot's agile NHD detection approaches across our expansive Media Metrix and vCE platforms. From a financial standpoint, we are fortunate that this acquisition will not have a material impact on our full year 2014 guidance or our Q3 revenue or EBITDA projections. And as such, we are not revising our estimates to reflect the acquisition.

As you may have seen today, we also announced that Mel Wesley will be joining us as Chief Financial Officer starting at the end of August. Mel has extensive technology and public company experience, having most recently been CFO of Mandiant Corporation, and prior to that CFO of OPNET Technologies. We're excited to welcome Mel to our team as we drive to the next phase of comScore's growth.

I would also like to thank Ken Tarpey for his service as comScore's CFO over the past five years. With his guidance, comScore has made meaningful strides in growing our revenues and expanding our operating margins, and he has helped establish a strong financial foundation for comScore's future. We are pleased that Ken will be joining our advisory board after he completes his service as CFO.

To sum up, we've had another record quarter for revenue at comScore. We're executing well against clear priorities, which we're confident will continue to enhance our market position, fuel our growth, and drive value for our shareholders. We've demonstrated in the first half of 2014 that we're building momentum in our businesses, and are focused on sustaining the momentum for the rest of this year and beyond.

Now I'll turn the call over to Ken for our view of our financial results.

Thank you Serge. Let's take a look at our second quarter results in more detail. Revenue in the second quarter was $80 million, up 14.5% versus results in the same quarter last year. Subscription revenue in the second quarter was $72.6 million, up 22% versus results in Q2 2013. Subscription and project revenue represented 91% and 9% of total revenue respectively. The ongoing success and adoption of vCE a subscription service by our customers continues to drive the subscription revenue mix higher. Revenue from existing customers was up 17% year-over-year in the second quarter, at $73.3 million, representing 92% of total revenues. Our renewal rate with existing customers remains above 90% on a constant dollar basis, during the quarter we also added 43 net new customers, bringing our total customer count to 2,459. Our international revenues continue to grow well, up 17% year-over-year and representing 30% of total revenue.

Now turning to expenses and margins, our gross margin was 71%, an increase of 1.9% margin points over Q2 2013 levels. The higher Q2 gross margin in 2014 can be primarily attributed to the flow through benefit from the operating leverage of our business model. G&A expenses increased to $14.6 million for the second quarter, which reflected a higher employee compensation cost to support the Company's business growth, higher stock comp costs with the recent transition of executive management, and the higher bad debt provision on a year-over-year basis. GAAP pretax loss for Q2 2014 this quarter was $2.7 million, compared to a GAAP pretax income of $918,000 in the same quarter last year.

The current year pretax loss is primarily due to a nonrecurring expense accrual of $4.3 million in total, representing anticipated costs from a tentative settlement related to comScore's outstanding privacy class action litigation, and an early termination fee related to an office lease. Absent these two extraordinary expense items, we would have experienced a modest pretax income. In the second quarter, stock comp expense was $9.1 million. The Q2 tax provision was $481,000, to provide taxes for year-to-date profits in certain international countries where profits could not be offset by other operating losses for GAAP purposes.

Our cash taxes remain low, both for the quarter and year-to-date, at approximately 6% of 2014 non-GAAP net income since we do hold net operating loss carry forwards in the US and certain foreign jurisdictions. In the second quarter GAAP net loss was $3.2 million, or $0.09 per basic and diluted share, based on a basic and diluted share count of 33.7 million shares. The loss reflects the impact of the unusual expense accruals which I just mentioned. Non-GAAP net income for the quarter was $11.3 million, or $0.33 per diluted share, excluding stock-based compensation, amortization of intangibles, acquisition-related expenses, and other non-recurring items. EPS calculation is based on a Q2 fully diluted share count of 34.6 million shares. The second quarter adjusted EBITDA was $16.7 million, or 20% increase over the prior year, representing an adjusted EBITDA margin of 21%. The Q2 EBITDA increase can mostly be attributed to the higher revenues and the resulting gross margins which I previously mentioned.

Looking at our balance sheet, we ended the quarter with cash and cash equivalents of $39 million, a decrease of $12.8 million from March 31st, and a decrease of $46.8 million from a year ago. The decrease in our cash position primarily reflects the impact of the repurchase program of $14.8 million of stock repurchased in the second quarter and $49.4 million cumulatively. Cash flow from operations for the second quarter of 2014 was $9 million, and capital expenditures for the quarter were $2.8 million, resulting in a Q2 free cash flow of $6.1 million. This cash flow was lower both sequentially and year-over-year primarily as a result of three items. First, payables and accruals were down sequentially by $10 million-plus simply reflecting the timing of payments, second, cash from operations in the second quarter of 2014 reflected the litigation settlement accrual and more details about that accrual are provided in Footnote 7 of our Q2 10-Q which will be filed later today. And thirdly, capital expenditures were up both sequentially and year-over-year to support our growth.

Now I am turning to slide 12 regarding guidance. This guidance for the third quarter of 2014 is provided on a GAAP basis as there is no impact in 2014 of our non-health copy testing and configuration management products which we divested in Q1 of 2013. For the third quarter of 2014 we anticipate revenues in the range of $80.6 million to $82.7 million. We anticipate third quarter GAAP income loss before income taxes in the range of a $1.1 million pretax loss, to pretax income of $700,000. We anticipate adjusted EBITDA for the third quarter of 2014 to be in the range of $15.7 million to $17.4 million, which represented an adjusted EBITDA margin of approximately 19% to 21%, or 20% at the midpoint of our revenue and adjusted EBITDA guidance ranges. Our estimated fully diluted share count for the third quarter 2014 is 34.6 million shares.

We're now raising our full year 2014 revenue outlook due to the continued momentum of the business. For 2014, we now anticipate revenues in the range of $320.5 million to $329.5 million. We anticipate 2014 GAAP income loss before income taxes in the range of a $3.9 million pretax loss to pretax income of $200,000. We anticipate adjusted EBITDA for 2014 to be in the range of $62.5 million to $69.5 million, which represents an adjusted EBITDA margin of approximately 19% to 21%, or 20% at the midpoint of our revenue and adjusted EBITDA guidance ranges. Our estimated fully diluted share count for 2014 is 34.7 million shares. Currently for 2014 we project a cash tax rate of approximately 6% of non-GAAP net income.

As Serge had mentioned, this guidance does not reflect any revenues from the Yahoo or Google agreements. We anticipate incremental revenues from these agreements later in 2014, and will update you during future calls after these partnerships are fully implemented. Thank you, and operator, we're now available for questions.

Thank you. (Operator Instructions). Please stand-by for your first question. The first question we have comes from the line of Youssef Squali from Cantor Fitzgerald. Please go ahead, your line is now open.

Thank you very much and good morning Ken and Serge. Congratulations on the very nice quarter. Two quick questions, please. First, just to be clear, was there any revenue from the Yahoo relationship this, I know it's very early but I was just wondering if you could acknowledge if there was any revenue from that? And then related to that, do you have any better visibility into the revenue potential from both of these partnerships? I know that you're not modeling any in your guidance, but just how should we be thinking about the revenue potential there, particularly for, I guess really once it's all rolled up, for 2015?

And then on the metrics, we noticed that your ARPU was up pretty substantially, we don't remember the last time we think it was in double digits, it was up about 11.2%. Was that all vCE, or just what drove that, and the sustainability of that going forward? Thank you.

Hey, Youssef, thanks. Good morning. On the Yahoo revenue, no, absolutely not, there was no revenue associated with Yahoo in Q2. Yahoo went live as a soft launch on June 30th, as we promised, but between June 30th and literally up until last night, we were working on getting all of the operational things up and running, testing the service, and today we're fortunate that it has gone live. So no advertisers have been, no advertisers were flowing through the system until it would start happening, obviously today.

In terms of visibility related to both of these deals, the one thing that I can say is like we've said before, obviously we feel like it is incremental, but more importantly, we've noticed a trend over the past few months and quarters as evidenced in our deck today, that we feel like we're going to be renewing all of the big partnerships that we had prior to announcing these deals, and they will continue being with us, in addition to the Yahoo and Google deals. So what I mean specifically is take for example P&G, P&G has decided yes, we want to work directly with you comScore on a relationship, but then also we will benefit from P&G working directly with both Google and/or Yahoo. In some cases they will work with both, and we will benefit from those as well. So we are feeling very good about it, at the beginning of the year it was really hard to tell how much will clients swap one for the other. We feel like more and more as we are now eight months into it, we feel that if anything it is going to be incremental, and the clients will renew their existing business with us, and then there will be additional investments that we get, additional revenue that we get from both Yahoo and Google.

And then your last question on ARPU, it is predominately on two things, vCE absolutely, and then also on Media Metrix Multi-Platform and Mobile Metrix. We saw significant increases on those two main product lines, so vCE and Media Metrix, MP/mobile metrics.

Alright. That's great. Thank you so much.

Sure. Thank you.

Thank you. The next question we have comes from the line of Andre Benjamin from Goldman Sachs. Please go ahead, your line is now open.

Hi, good morning.

Good morning.

I was wondering if you could give us a little bit of an update on how much of the revenue currently comes from the audience measurement versus advertising solutions, and where you currently stand in terms of penetrating the opportunity for Media Metrix in the US versus Ad solutions?

Hey, Andre, this is Ken. In terms of the majority of the business, it is on the audience side, it's a little north of about 50%, but as you know, the growth rates in some of the new products, both on the mobile side but particularly vCE, are higher than our good overall growth rate, so we expect that element of the pie will continue to evolve over the next year plus, as all of these new opportunities take revenue traction.

The one thing, just to add there, Andre, to give you some color, is on Media Metrix Multi-Platform, we now have 405 total MP customers. We believe that is only approximately a 36% or so penetration in terms of our existing base. So we feel like there is still significant upside on just going and upselling Media Metrix MP to our existing Media Metrix audience base just in the US. And then obviously, as we roll out additional countries, then the denominator increases even further.

And I know it's still early, it hasn't even been launched yet, but with anticipation of the total video product coming out by the end of the year, I don't know if there's any updated views or color you can provide on how we can, even in a more conservative scenario, think about the potential economic impact, either on a growth basis or growth, or however you want to characterize it, in margins or whatever?

Yes, no, fair point. Total video is on track, like we said, it's on track to be released by the end of the year. We think that we feel confident that we'll start seeing bookings, also known as CV here later in this year, but none of that will materialize into revenue until 2015. That being said, there will be subscription based, these are usually going to be in the high-six figures, low-seven figures deals. We feel confident about renewing ESPN this year. ESPN has been a great client of ours, and continue to be a great client. But as far as projections and all of that, again way too early, but kind of some color, it's going to be subscription based, it will be high-six figures, low-seven figures, and a lot of that revenue will start materializing in 2015.

Thank you.

Sure.

The next question we have comes from the line of Jason Helfstein from Oppenheimer. Please go ahead, your line is now open.

Thanks. Two questions, both really around vCE. So we've heard that the take rate is around 2% of spend. Can you comment on that, and depending on whether it comes through different channels such as direct or through third parties, kind of how wide that range could depend? So could it be double that, could it be less than that? And then when we think about sizing this longer term, I think the IAB had US display about 8 billion in 2013, mobile and digital video about 10 billion. I mean, how much ultimately are you guys trying to target, and are there kind of phases where initially you're largely focused on display, and then kind of mobile digital video longer term? And then secondly, from what you're seeing when people sign up for vCE, do they need some of the legacy products to last, so should we think about, as somebody meaningfully selects their vCE, do they give back other syndicated products that they have bought in the past? Thanks.

Sure. Thanks, Jason. The take rate, hard to tell but the 2% to 4% is kind of what we've heard as well, we've seen, so that's kind of where I would put it at right now. In terms of the overall pie, the size, that's a tough one. Today we feel like we have probably penetrated less than 20% of the top advertisers out there, so there's still a lot more to go. Obviously with Google and Yahoo coming on board, that will increase significantly. And in terms of our focus, I just want to be extremely clear. Our focus is 100% display and video, video being equally important to display. So both of those are equally important. And then obviously since we just released mobile vCE, mobile is a key priority of ours, a key priority for us. That being said, mobile is still way behind in terms of penetration, compared to both display and video, but that's also a big focus. And lastly, we can't think of this as an US-only solution, and we think of this as totally 100% global.

In terms of priorities for us, it's display and video is number one, mobile is right behind them, and then international comes as well. As far as your question related to swapping, we haven't seen that. There's not been, at least not a single client that I know that basically told us, well, we signed up for vCE, we don't need Media Metrix anymore. That is not something we're seeing. I think the nice thing about those products are they are completely complementary. It's not a trend that we've seen one bit. So that's just, hopefully I'm actually pretty confident that won't see that happening, but if it does we'll let you guys know.

Thanks. Appreciate the color.

Sure.

Thank you. The next question we have comes from the line of Todd Mitchell from Brean Capital. Please go ahead, your line is now open.

Yes, thank you. I want to ask about vCE and the integration with Yahoo and Google on the demographic profile. So I see in your slide deck that you're saying 1.6 billion demographic profiles, can you just kind of flush out what that really means for me? Where are they coming from, what markets, and what distribution needs to encompass, and is this available for real-time on the, for integrations with the ad exchanges? Thank you.

Sure. Hey, Todd. In terms of the 1.6 billion and vCE and Yahoo and Google, those are the demographics that we get from the users that use both Yahoo and Google's properties. It is not just Yahoo.com, it is not just Google.com, it would include Gmail, it would include Tumbler, it would include all of the services that Yahoo and Google have, Google Plus, that they include. Now what we get from them is nothing that's personally identifiable, it is simply for now age and gender. It has nothing else to do more than just age and gender, and it is worldwide.

So in Yahoo's case, for example, they are, as part of our agreement, we are getting demographics for a few countries already, Italy, the UK, Canada being some, and we plan on rolling out additional countries. As we roll out vCE 2.0 in these countries, then we start getting additional demographics from them. So again, they are high level demographics, they're based on age and gender, there's nothing that is personally identifiable, so 100% privacy-compliant, and then it will scale over time as we grow into additional markets. And then in terms of real-time, absolutely, that's the whole point of the Google integration is going to be in real-time, and we plan on, when we roll that out, that will be both on programatically or through direct, it will be done, and leveraging all of these demos that we have.

The nice thing about our service, about vCE, is we're not reliant on one source of demographics. We use multiple sources of demographics, some coming from Yahoo, some coming from Google, some coming from other data providers that we have relationships with, both here in the US and overseas, and we blend it all together and we decide, as the independent third party, to decide which is the best demographic source to use for the individuals viewing that campaign. So that's the value proposition that we provide as the ref in this game, if you want to call it that.

Can I just follow up for two seconds here?

Sure.

Two things. When you say as we integrate further, we'll get higher level demographics, can you explain to me what that means, and also, I'm assuming ultimately or right now, does this also include multiple devices and can you identify duplications?

High level demos mean down the road it could expand to not just age and gender. We all know that is the most important demos right now, but we also feel that, as the product evolves, it needs to include extended demographics, like we call them, things such as income, such as education, household size, presence of children, stuff like that, but then also, more importantly, it could also include behavioral segments or offline segments, the people that have a tendency to buy X grocery product offline, or whatever the case may be, or people that are sports addicts online. Those are kind of behavioral online and offline segments that could be included in this product. vCE today, outside of Yahoo and Google, already includes those extended demographics and target groups, if you want, or segments. What we plan on doing with Yahoo and Google, we want to integrate those additional things at scale. So that was in terms of your higher level, excuse me for not writing, what was the second, the last question?

Mobile and duplication?

Oh, mobile. Today, we are working with both Yahoo and Google to also get demographics from them from mobile. We anticipate that will happen, and we will then be able to identify down to a device level, and differentiate down to a device level, but that will not happen until we both go live with these two for both the PC service. So now that Yahoo has gone live, our next step with them is to focus on mobile. We've already started the groundwork with them. It basically has to, we have to instrument a few things into the app, the Yahoo apps, to allow us to get the demographics, and we will be doing the same thing with Google once it goes live. Definitely on the road map, I anticipate that we'll both have Yahoo and Google demos on mobile later in the year.

Thank you.

Sure.

Thank you. I would now like to turn the call over to Serge Matta for closing remarks.

Thank you again for your participation today. Our second quarter 2014 results reflect continued strong execution momentum cross our business, we're capitalizing on significant multi-platform and cross media opportunities, including meaningful progress with our strategic Yahoo and Google partnerships, as well as our total video measurement efforts. In addition, the talent and capabilities now available to us as a result of our acquisition of MdotLabs will continue to enhance our product offerings, as we work to further strengthen the foundation of our long-term success. We remain focused on our key priorities, on the sharp execution of our strategy, and on delivering value to our shareholders. We look forward to speaking with you again on the next conference call. Thanks again. Take care.

Thank you for your participation in today's conference. This concludes the presentation. You may now disconnect. Thank you for joining, and enjoy the rest of your day.