Good day, ladies and gentlemen, and welcome to the comScore Second Quarter 2015 Financial Results. 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 now like to introduce your host for today's conference Mel Wesley, CFO. You may begin.

Thank you. Good morning and welcome to comScore's earnings call for the second quarter of 2015. I'm Mel Wesley, comScore's Chief Financial Officer, and with me today is Serge Matta, President and Chief Executive Officer. 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 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 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, such as those with Google, WPP/Kantar and strategic acquisitions; expectations as to the financial effects of comScore's divestiture of certain business lines; assumptions regarding tax rates and net operating loss carry-forwards; and forecasts of future financial performance for the third 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…

Thank you, Serge. I will now provide more detail regarding our second quarter results. Revenue in the quarter was $91.3 million on a pro forma basis, up 16% versus the same quarter last year. We are pleased with our revenue growth despite continued foreign currency exchange rate headwinds. If exchange rates against the U.S. dollar remain constant from the same quarter last year, our Q2 pro forma revenue would have been $95.5 million, or a growth of 21%. Subscription revenue in the quarter was $83.5 million on a pro forma basis, up 17% versus the same quarter last year. Subscription and project revenue represented 92% and 8% of total revenue, respectively. Revenue from existing customers was $79.8 million on a pro forma basis, up 11% year-over-year and representing 87% of total revenue. During the quarter, we also added 98 net new customers, bringing our total customer count to 2,683 on a pro forma basis. Our international revenue on a pro forma basis also continued to grow despite continued foreign currency pressure, up 8% year-over-year, and representing 28% of total revenue. Moving to margin and expenses on a GAAP basis, our gross margin was 69%, down from 71% for the same quarter last year. The lower gross margin is primarily attributable to higher data acquisition costs associated with new product offerings including Mobile and cross-media. We expect costs associated with new offerings to put near term pressure on gross margins, while margins will expand as new product sales ramp. Selling and marketing expense decreased to $24.9 million, down $1.7 million from the same quarter last year. Selling and marketing expense for Q2 represented 27% of revenue compared to 33% for the same quarter last year. The decrease in expense was driven by a decrease in stock-based compensation. The decrease in selling…

Thank you. . And our first question comes from Youssef Squali from Cantor Fitzgerald. Your line is now open.

Okay. Thank you very much. Good morning, guys. Congratulations on a very nice quarter. Serge Matta - President, Chief Executive Officer & Director: Mr. Fitzgerald, we can't hear you.

How about now? Is this better? Serge Matta - President, Chief Executive Officer & Director: Yup.

All right, sorry about that. So congrats on a nice quarter. Two quick questions. Can you maybe help us with the economics of the Google deal please, maybe whether it's opt-in, opt-out? Who pays, it's the Google pay or do the advertisers? And did I hear you correctly in you stating that vCE in aggregate should still, at least in your opinion contribute about $100 million in 2017? And second on, Mel maybe you can address the net new customer issue. Well, it's not an issue, too great. I mean, you guys added $98 million. Historically, you've added $40 million to $50 million. Did you do anything different this quarter that drove the net customer count to MMX MP so much higher and is that the new normal? Thanks. Serge Matta - President, Chief Executive Officer & Director: Hi, Youssef. Thanks. So on Google, I figured everybody wants to know this. As I have mentioned before, the way we are, the way it's going to work is right after -- now that this thing has exited out of beta, it's going to be opt-in and Google is going to charge their clients. Now that being said, I want to emphasize here that Google and comScore are partners here and we're going to monitor the adoption. If for some reason adoption starts declining, we will adjust. This is exactly what we said now all along and it has come to fruition. We believe that if adoption is hampered, we will go back and adjust it with Google. We're definitely here on the same boat here with them.

Are there any thresholds of adoption that you can share with us that will trigger that move? Serge Matta - President, Chief Executive Officer & Director: No, there aren't any actually. It's really more of – we're going to literally monitor it on a monthly basis and make the call. I don't anticipate adoption going down at all. Actually, if anything I see, now that we're out of beta, I actually think that adoption is going to increase because let's face it. Now it is out of beta. It's a full-fledged product. We have QA'ed the data. We have made sure all that infrastructure issues that we talked about in the previous quarters, all of that is behind us. The alignment of the data is there, and both the marketing muscle of both comScore and Google are going to be behind it. Both the sales force of Google and comScore are going to be behind it. Not only did we put our press release out there today, Google put out a blog post already on this launch. And we're going to be jointly doing marketing events and webinars together on this in the next couple of weeks. So, if anything, I see the adoption going up. With that being said, we're going to monitor it, but like I said, right now I feel confident that adoption will be very good. As a result of our bullishness, you are right, we are anticipating that vCE in total will achieve a run rate of $100 million by 2017. This is for a product that two years ago had $0 to $100 million with very high EBITDA margins, we feel very good. And lastly, the volume is just incredible. The volume excluding DoubleClick is, as I mentioned in the script earlier, 3 billion…

Great. Thank you very much. Serge Matta - President, Chief Executive Officer & Director: Sure.

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

Hey, Serge, congratulations on a great quarter and raising the guidance. I want to dig into two more questions on vCE. I think the answer to Youssef's question there was more for current DoubleClick customers. Could you talk about how the economics flow if you're current vCE customer or Reston vCE, how do those economics flow? And then, part two of the question is, are you comfortable with the trajectory or cadence of the $50 million in 2015, $75 million in 2016, and then getting to that $100 million that you already talked about in 2017? Thanks. Serge Matta - President, Chief Executive Officer & Director: Yeah. Hey Bob, thanks. You've clearly been doing your industry checks and been doing your home work. All I can say is a client is not going to pay for the same products twice. We've tried that in the past and believe me as good sales people as we are, it's very hard for a client to pay for the same product twice. So that being said, we will still get paid from Google. So no matter what happens if Google gives it to Reston vCE clients the service or we upsell it to the vCE Reston service customers, the DoubleClick service, we will still get paid no matter what. That is written in stone, no changes there. As far as the trajectory, we've done our analysis. We feel very confident of the trajectory. We wouldn't be committing to it for the first time publicly at a $100 million. I have to tell you the first two quarters have been incredible. So, we feel very, very good of where we are and we feel very good about the trajectory to get to the $100 million. I know especially your analysis you had the bear and the bull, bullish analysis and frankly we feel very good. We are committing to $100 million by 2017 and we'll obviously be updating the Street if anything changes.

Thanks so much. Congratulations again. Serge Matta - President, Chief Executive Officer & Director: Thanks.

Thank you. And our next question comes from Jason Helfstein from Oppenheimer. Your line is open. Jason S. Helfstein - Oppenheimer & Co., Inc. (Broker): Thanks. So what sounds like is, or confirmed, you're not really changing your outlook for vCE for this year, because it's too early. Is that fair? So I think previously you talked about $50 million and you were comfortable with that number even if Google stayed in Beta. Clearly we're moving out of Beta, but effectively you're not really moving that number? Second Serge, can you talk about now that you've gotten to this point, how that's positioned you to ultimately win effectively vCE for YouTube and kind of what's going on there? Obviously, there is another company that really like to win that as well. And lastly, just housekeeping modeling, could we get the ending basic share count at the end of the quarter and then what the current basic share count is today? Thanks. Serge Matta - President, Chief Executive Officer & Director: Hey Jason. Yeah, it is too early. Listen, we got out of Beta today. So I'm not going to talk about our forecast for the remainder of the year and all that. We feel very good about it. I think you can tell from our tone, from our numbers, from our performance, we feel we're very bullish about vCE and its trajectory over the next couple of years. As far as YouTube is concerned, listen, we have a deep integration with Google. We mentioned we are the first to be deeply integrated with the Google's ad server. We work with YouTube a lot. And stay tuned there, we're going to be trying to – we're working with clients on existing vCE for YouTube guarantees, so a lot of positive momentum there as well. I know who you're referencing, Jason, but suffice to say our deep integration within the Google ad server gives us quite a bit of an edge. And then in terms of the share count, I will hand it up to Mel.

Yeah, so ending basic, Jason was $40.1 million for the quarter and then I think you're looking for the outstanding and this will be filed here shortly. Yeah, let me get back to you on that. That will be filed obviously with the Q, but I want to get back to you on that. That will be as of August 3. Jason S. Helfstein - Oppenheimer & Co., Inc. (Broker): Okay, let me ask you then how many shares did you buyback in the quarter?

Approximately 1 million. Serge Matta - President, Chief Executive Officer & Director: You know 1 million for approximately $54 million. That was through June. We kept the same levels in Q3, so in July it was the same levels. The program did not change at all and we don't expect to do anything to it barring any unforeseen changes. Jason S. Helfstein - Oppenheimer & Co., Inc. (Broker): Got it. Thank you.

Thank you. Our next question comes from Todd Mitchell from Brean Capital. Your line is open.

Yeah, can you talk about how Google's decision to disband – or disband Google Plus is going to impact your data acquisitions and how you feel about that? And as well, can we get an update on your efforts to get data from sources other than cookie panels? Serge Matta - President, Chief Executive Officer & Director: Hey, Todd. Can you repeat the first question maybe I didn't understand?

We were wondering how, Google is basically disbanding Google Plus. Serge Matta - President, Chief Executive Officer & Director: Oh, Google Plus.

And does that have any impact on your ability to get data from them? Serge Matta - President, Chief Executive Officer & Director: No, we don't. We have a lot of different data sources and it does not really have any impact from us one bit. We know what's going on with Google Plus and we saw the same news that you saw, but frankly it has zero impact at all. As far as other data sources, we have a ton of data sources today. We are working on other things especially for mobile outside of the U.S. and stay tuned for more news there, but it is something that is a big focus of ours and we will update you when the time is right.

One more question here. Also moving to the multi-platform products for television, basically, your competitor Nielsen talks a lot about efforts to get to an industry standard on that. It seems like they are pitching an idea, you're pitching an idea, some others are pitching an idea, but the industry is really going to decide what they want. Can you give us a view on how that process is going to happen and how long it's going to take? Serge Matta - President, Chief Executive Officer & Director: Yeah, obviously this is not going to be an overnight solution and we are working on a census-based solution leveraging all of our digital data, leveraging massive amounts of set-top-box data with partners. I've mentioned companies like Rentrak and others. We are partnering with them and others in this space. We're coming up with a unique solution here. It is not going to be based on a panel-based only solution. Now we do believe in panels, so that's why our solution has the best of both worlds. It includes a panel which is from the Arbitron, PPM data now called Nielsen Audio. And obviously it includes the set-top-box data that we have procured internally and partnered with companies like Rentrak. So for us it's a unique differentiator. It's the best of both worlds. In terms of adoption, it's still early innings here. We will see the way – this all goes is getting adoption by not only the big broadcaster, but also the agencies. And fortunately for us, we have existing relationships with all of those constituencies, so we feel good about our prospects there, but time will tell. We feel that we have an excellent solution. It's a unique, it's a differentiated solution, but it's going to take time. I'm not going to say that all of a sudden XMedia is going to be a $100 million business. Over time, it will be, but not in the next couple of years.

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

Thank you. Our next question comes from Andre Benjamin from Goldman Sachs. Your line is open. Andre Benjamin - Goldman Sachs & Co.: Thanks. Good morning, guys. Serge Matta - President, Chief Executive Officer & Director: Hi Andre. Andre Benjamin - Goldman Sachs & Co.: First question, I was wondering as you continue to progress with your partnership with DoubleClick, is there any discussion of expanding into the international market or has that formally been started yet? Serge Matta - President, Chief Executive Officer & Director: It has been decided. We are expanding to international. We are expanding to mobile, but realistically we needed to get out of Beta for vCE in the U.S. and get that out the door. Now that that is off the door, we can focus on the international markets and mobile. But rest assured – all the paperwork is there. The contracts have been signed, everything. The business arrangements are already there with us and them in terms of both for mobile and international expansion. It's just we needed to get out of Beta for the U.S. Once we got out of that now we can focus on the other stuff. Andre Benjamin - Goldman Sachs & Co.: And I would say you've been very successful coming out with products that kind of go after either new markets or markets that your largest competitors have had been the leader in for a while. Do you have any thoughts on the potential competitive implications from Nielsen launching its own new syndicated audience measurement product with Adobe? I know you haven't seen it yet, so it's hard to give a robust response, but any early thoughts there? Serge Matta - President, Chief Executive Officer & Director: Yeah, no, we continue to measure – we continue to monitor, sorry, DAR and what Nielsen is up to. Nielsen is a fantastic competitor and they have done a good job and we will continue to monitor. As you said, it's still early. That being said, we talk to our clients. We have mutual clients, both overlapping clients between us and Nielsen and we know what they are up to. We know what to expect. And frankly we feel very, very confident about our solutions and how differentiated they are. Their relationship with Adobe is still in the early stages, but rest assured we're not ignoring them. We know what they're up to and we feel confident of where we are. Andre Benjamin - Goldman Sachs & Co.: Thank you. Serge Matta - President, Chief Executive Officer & Director: Sure.

Thank you. Our next question comes from Allen Klee from Sidoti & Company. Your line is open. Allen Klee - Sidoti & Co. LLC: Yes. Hi, I had a few questions, just on the guidance on margins and expenses, kind of what are the factors behind, I think I heard that gross margins might – I'm not sure how long they would have be a little constrained and then what's driving SG&A and R&D to be down in the second half? Thank you.

Got you. So, hey Allen, it's Mel. On margin, basically what's happening is we're seeing a shift of cost from R&D to cost of sales and it's going to be somewhere around for the next couple of quarters, probably about 4% of revenue. And that's primarily because as we're developing new products, the data cost associated with that are recorded in research and development, but then once these products become available, then they get recorded in cost of sales. And then, generally, the decline in SG&A broadly is related to the November 14 market-based grant. It had $26.1 million of stock-based comp associated with it. And through the end of June as of 06/30 the expense associated with that was 92% expensed, so the remaining expense for that of $1.4 million will be expensed over the next two quarters and then that will be fully expensed. Allen Klee - Sidoti & Co. LLC: Okay. Thank you very much.

Thank you. Our next question comes from Tom Eagan from Telsey Advisory Group. Your line is now open.

Great, thank you very much. A follow-up on the cross-media measurement stuff, with such differences in the incremental reach from the digital platforms for the various TV networks from your slide, how do you position the metrics or the currency I guess for the widest appeal to the networks? And then I have a follow-up. Thanks. Serge Matta - President, Chief Executive Officer & Director: You know first for the networks we need to show them the incremental reach, that's one thing that they have been complaining about that they're losing audiences or they're not being able to measure the audiences based on digital, over-the-top, mobile, all of that. So this allows us to measure this, to measure, and give them that analytics again based on a census-based solution versus a panel. So that's the first thing that we want to at least highlight. The other thing that as we mentioned in the script, this is really good news for the broadcasters, because as we shown, as the data has shown so far that on average the cross-media TV consumer spends a lot more time over close to 50% on TV itself. So the cross-media consumer that is on tablets, on mobile devices, on PC and OTT devices are spending more time watching TV on their – on just on regular TV than – so it's good news for both parties, not just for the OTT players, but also for the broadcasters.

Right. I guess, I was thinking that the incremental reach per se of Viacom would be very different from the incremental reach for a CBS. So how do you position what metrics that you use to kind of appeal to the widest group of networks? Serge Matta - President, Chief Executive Officer & Director: Well, we're going to obviously, it's – we're going to have uniform metrics. There is an interface already out there. We are happy to share with you the exact metrics that we have, but suffice to say, its reach, frequency, GRPs, but they are pretty standard metrics out there, that the industry is used to seeing and we want to make sure that they're consistent across all of the different broadcasters.

Right. Okay. And you mentioned a partnership with other companies such as IRI or Rentrak. Regarding Rentrak how much do you think the cross-media service could be enhanced if you use linear measurement on VOD? Thanks. Serge Matta - President, Chief Executive Officer & Director: Yeah, Rentrak has a bunch of unique assets. We are very close and we partner with Rentrak quite a bit and they obviously are the leader in VOD measurements and they have millions and millions of set-top-box data available basically on a nationally representative basis. So we are very close to them. We partner with them and obviously a solution like ours, with our digital data, our set-top-box data, our mobile data coupled with all of their data is from a partnership perspective is quite powerful.

How would you estimate, what is the size of the cross-media market today, do you think? Serge Matta - President, Chief Executive Officer & Director: Hard to tell. Like I said, it's early innings. We believe it's – we're not talking here tens of millions of dollars. We're talking significantly more.

Right. Serge Matta - President, Chief Executive Officer & Director: But I can't give you a specific number at this point. We just launched this product. The sale cycles are much longer than our typical digital products. These are usually six to nine months sale cycles, but we put a lot of effort here and so we're not chasing something that's in the tens of millions of dollars, we're chasing something in the hundreds of millions of dollars.

Right. Great. Thank you. Serge Matta - President, Chief Executive Officer & Director: Sure.

Thank you. And I'm showing no further questions from our phone lines. I'd now like to turn the conference back over to Serge Matta for any closing remarks. Serge Matta - President, Chief Executive Officer & Director: Sure. Thank you for your participation today. Our record second quarter results reflect the momentum we've been building across our business and continues to validate both our strategy and our execution against our strategic priority. It's a great time to be at comScore and I'm hoping many of you can join us next month for comScore's first industry summit. We're bringing together senior leaders from top agencies, brands, publishers and broadcasters to engage with industry experts on the latest disruptions, opportunities and learnings that are shaping the future of media and advertising. In addition to Neal Mohan and Randall Rothenberg who I mentioned earlier, we'll be hearing from Ted Leonsis, Eric Salama and many others over the course of an intense and productive day of conversation in New York City on September 15. We look forward to seeing you there and speaking with you again on the next conference call. Thank you.