Nielsen (NLSN) 1 May 202020 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by and welcome to the Q1 2020 Nielsen Holdings Earnings Call. [Operator Instructions] I would now like to hand the conference over to your host today, Ms. Sara Gubins, SVP, Investor Relations and Treasury. Thank you. Ma’am, please go ahead.

good and Laura you, morning everyone. Thank for XXXX financial you joining us quarter first Nielsen’s discuss performance. to Thank I am joined CFO, by our CEO, David Linda Kenny Zukauckas. and our call Events A available Relations presentation that will on slide we website. under of section this the our Investor use is

begin, statements, remind of Before that Nielsen’s and including our those I you today questions are like to Nielsen’s prospects responses about and your would current based may that to we all remarks contain expectations. on forward-looking outlook

on as future in SEC, expected to number risks no identified results report Our filed obligation differ currently and XX-K available required reports section any We subsequent may with those actual from which statements, forward-looking those Factors recent periods by because materially including assume our Risk annual of update of most the law. in except and of on a the Form in are our website. uncertainties,

refer non-GAAP most measures. will at financial to the is we non-GAAP call, available measures GAAP Investor press comparable measures today’s financial the release, are available which section at our also nielsen.com. On website earnings certain of in these to Relations of Reconciliations the

to always accommodate queue as Q&A, time again limit so one join yourself ask can you that if we For will everyone. question to call to we free remains, Feel we the you. and on

to over to it turn our start like Kenny. to would now David I And call, the CEO,

the for this all Thank and joining call you you, thank Sara morning.

food care essential most and businesses solely what And very on list. the are media our essential. past the focus the and to on products During and is governments has health weeks, retailers pandemic companies, people, few their high COVID-XX absolutely forced clients,

using this and change essential businesses Nielsen disruption. remained of essential during their us have challenging also unprecedented information operational. fully Our clients all for They’ve analysis and manage all been have to time, been open and and they during

our everything colleagues. thanking to they thank I one clients Nielsen world. I especially for want partners to by and support are country want to and start doing every our my today’s our of call

in ways the proud QX ways X of operating changing the environment. to I We’re past next as months. processes behavior efficiencies, up March. over the planned plans we which accelerating And got even the but finding remotely of am understand new were I’m delivered new through pandemic post many new and and X consumer which quickly years, to most with globally share results working our for pandemic pandemic that of adapting with in to proud for implemented and while also you planned devising new ramping

So let me run would through like the to on today. what I cover call

and Nielsen’s outlook our Connect preparation time. quarter First, Linda I’ll will response each first COVID-XX during Connect tremendous Global continue a of I in Global together updated of under and and towards a David scenarios we David also who Media time, and move work his separation. our period role. cover very is Nielsen on Q&A a review and during two the Rawlinson joined short a by be of I from he then Linda post results to will first in Nielsen the as I organization and businesses as in has the essential planned our pandemic. closely of XXXX. the impact demonstrated separation our leadership months address the range of dynamic for will positioned will how X section big CEO had to this

homes are, our you as all the probably any please patient call from be so issues. joining with technical We are

Let’s start with COVID-XX.

our and workforce, global companies, our and Our the top priority, families clients. like safety most of is their wellness

in transitioning these most important to And be puts colleagues in employees especially ways center-based new working XX over the reinvented So we done to of helpful field of call first. remotely. critical our their markets work have that and safety been

matter days. we of a also home from XX% our within to enabled our finally, approximately employees are And office-based communities. giving work of We back to

We are our or to food help data to non-profits, our measurement that government Media data leveraging with institutions help citizens. forecast are entities retail important and various working to deliver information supply academic

Our our second innovation and for priority quality both is and continuity resilience.

very We developing focused digital information by during have integrity to maintaining critical these our road consistently on on are remote our deliver pleased we our continuity of and including ensuring business ability I been that data new map. of methods the processes, am times. high-quality with using

of change we many post-pandemic pace Our do way And our permanently of world. operate of necessity. to to we a out plan the innovation leverage learnings accelerated has in

third liquidity. is and profitability priority Our

And We cash with scenarios. are well-capitalized recovery and managing a closely we economic range cost under of flow. are financial flexibility

comes new she decades balance financial across sheet. in Our CFO stress helped experience strengthen with services, of us and Nielsen’s has testing and operations our

or our January I held The As COVID growth constant ramped Connect revenue Media organic the currency was with up. February X% constant X% X.X% the organic and quarter, business said, with X.X% revenue growth. pressures moderation currency. organic in Connect as in in declined March robust up of some first constant grew currency pacing while well in

revised We our to expect are to COVID-XX the see quarter in our in both reflect we and from guidance lowering Media greatest Connect expectations. second the impact and XXXX

margins and or protect cash profitability have actions to which to already to take our see contributed aggressive to already. We begun flow, cost

are top temporary ways to drive to COVID-XX us We and least beyond out taking expectations. driving more will intensify costs, $XXX become current and learnings line flex focused, efficient pressures find drive will is if our at permanent off us in business and these a key These rapidly initiatives. these and our our of for us strategic resilience line continue top environment, clients time. in to they will improved changing critical over help are The in model invest to million allows growth actions. cost

Form May. file Nielsen registration to continue as Connect plan progress initial XX we and we in on Connect stand-alone Media the Nielsen of early separation a Global We Finally, as make company. position statement the Global to

the We legal have are companies. fully operate stood and and to processes two we as up entities two sorting organizations,

seeing process. separation integral however government uncertainty world timing and stemming are from the that We to around around the shutdowns greater agencies are

today, on the based the separation of this, XXXX. know quarter what likely close first Given in will we

doing to as We we are possible. can as separation soon complete everything the

Slide important consumers X, news entertainment Media, to reach more stay home in even as engagement and levels at Turning become and have highs. new

our example, reinforces best For thus behavior data the from and is total critical the When U.S. to TV audience nature up pre-shutdown XX% is understand analytics. levels. viewing changes, and Nielsen of measurement the way

in have imagined to go we risen could have teams to to operate the the change and no Our way ways occasion had we have one as market.

contracted. segment is business XX% Media have includes We revenue a that strong which model,

is it unaffected. not Our but resilient, is business

to and the want the I clear we’ve adapt. a So taken from be impact about revenue actions perspective to

TV, our spend. contracted. is to Within XX% of Audience We to be some from contracts quality in and nature tied while ratings tend rest are field moving the home working of local audio total making and successfully and contactless the continuity our to their and TV typically cars. ensured visits channels, Measurement, ad phone are multiyear panel by revenue from National digital not and via

events postponed directly have sports and return We been in sports is solutions. has panel the returns. Measurement, of impacted health most a In as great U.S. or majority worldwide. The We as expect success canceled. do have measurement vast these Audience the those strong been both had with to

easier annual Gracenote and more although to are Plan/Optimize, revenues come XX% depend currently contracted short contracts. from mostly cycle, will to demand about paused. clients’ when systems automobile production, for be Contracted revenue is service-heavy stable, on in which with In The pressure. tends non-contracted metadata automobile budgets revenue is of audio Plan/Optimize under defer

we well, second clients some up quarter. held in projects The first defer are quarter but seeing the

Our challenging teams are leveraging they with closely ensure are to our working during Nielsen this time. clients

incentives our sell playbook better their yet. teams that a includes client which budgets developed have to that to enable haven’t for ad significantly incremental We sales verticals cut us

dislocations revenue As we we ahead, look as temporary. see these

that are to our forward foundational We to Continuing digital with and investments time. priority. solutions our top the growth over build key on remains streaming moving are

value we’re We’re driving recessionary measurement focused understand Plan/Optimize their attribution globally within analytics, of marketing on platform. in want spend adoption as solutions a continuing to clients a unified invest And environment. leveraging to in the and of

leading our manufacturers consumer X, These capture serve they behavior, total is e-commerce consumer measurement and measurement the pharmacies. in and it packaged global Consumer open to which provider is we that over to changes client example, evolving the XX needs remained markets, have rapidly, our Connect retailer globally. analytics. and needs. goods however, as supermarkets retailers, Nielsen, positioned evolving an well businesses on behavior are Slide essential and highlights Turning clients, as for and are consumer are

we relationships anytime, access Connect strong retailers very as XXXX of modern end has and through stable And clients anywhere. cloud and data the digital since double with more platform flow continuous have new reliable enables from the work online have of through home. information been where delivery collaboration usage clients our superhubs. sales we and trade seen bring channels. We’ve The the production more Nielsen and platform We

driven has Connect respond proud I’m what of the change new pace host a to are accelerate of teams incredibly to COVID-XX to the challenges, and of accomplishing.

measurement transformation data markets projects. operational trade greater to new traditional seek and our using as accelerated This efficiency new further We’re for we collection in solutions leveraging support ongoing methods automation. revenue and has short-cycle drive

Connect strong XX% that model, revenue segment which a have business We contracted. includes is

to the the me impact along taken we’ve more Let of Connect. clarity on COVID-XX, with actions provide specific in adapt

world, the global all a we in business of them point-of-sale and retail In operating there that data are in First from in mostly roughly world, electronic Measure, of virtually is around developed our X,XXX has partners markets around the markets. all, affected. XXX no disruption been Connect get

see represent in is where partially to in Connect time field. the acquisition We a over XX% impact which emerging revenue, data of expect done greater markets, about

our been the leveraging with responding our audits markets and in platform to over collection data are innovative collection all able digital of investments the of redesigning around data phone, we’ve early our in conducting remain and methods, active world. We

Connect relies field Much of or the in engagements. is in-person XX% Predict/Activate on other contracted. work work short-cycle roughly

many are looking discussions e-commerce, work. quick see have in clear instances, a cases, until a developed slowly recover. economies response reopen, said their for weekly We simply on But we’ve a Predict/Activate in for that example, from to methodologies. we complete means spend be how we unlikely to new understand more seeing help business. with In markets dependent to started uncertain it on can unable we have normal are as clients to an we we And are Already, That rebound begin adapted, tracker tends clients in been COVID-XX and environment. so demand. to discretionary new the Connect certain them. to client more what have as this in data need

coverage reach that have initiatives foundation, key competitive enhancements. progress the the We term, and at efficiencies further such on operational scale. We’ve through Connect on a Connect and Nielsen is positioning focused our strengthened automation have confident as longer in retailer good for imperative Looking as leader new cost strong convergence. strong driving forward, remain and unique has Connect made platform, our progress initiatives good current Rawlinson continue in global highlighted a execution position, We continued toward challenges And we driving of standalone make public right this our has feel and path the one. transformation. company. our David a to success who is platform Connect

X. certainly COVID-XX Slide to uncertainty. heightened turn Let’s has pandemic The

really already recovery revenue We quarter. left faster ensure quickly across the see sustainable side markets, activity reduce free and in The pick while Media an work growth a we’re up custom content in recovery events, emerging to until return margins flow quarter. Faster an cost adjusted in doesn’t third of economic will page up. collections. resuming in a drive as center would improvement to would automobile recovery Connect ad resume The expenditures. begin order such underway industries, EBITDA beginning client continued production would structurally sporting see analytics. capital expect have adjusting our We we and to reductions of the key We cash to plan to consumer a to the and beginning and actions scenario a markets warrant developed this would higher This recession. column potential range work in to a prepared assumes insight and operations, market higher see cash cost spend and a pick drive assumes scenarios. that in modest fourth in Field and

prolonged to right to clients’ into recession pushed be of less revenue would aggressive greater deferring year. could out the field this portfolio page, the Resuming actions, we side given the projects. pressure have cost the end scenario structural extending more operations even consideration greater strategic warrant along until and or And with on would and This headwinds a hand On lead our businesses. XXXX. of canceling

is survived in intent Most impact debt and of liquidity, remain of the years these covenants on of sufficient to across remain Today, adjusted remain the has we challenges. Nielsen numerous expect importantly, we essential manage as range nearly we the to XXX to ever and issues any who full as Our flow also global lower clients business have world. of critical for environments. scenarios. and in revenue to EBITDA our mitigate spite cash within the our

well are drive strong prepared performance of future We the positioned regardless and to scenario.

Linda, Before turn I a I out separate over it to today. to want announcement note

Nielsen will brings of fourth months member adding over John the last board. be who is a and to we We digital the our added several Board. new enhance John the Miller, depth media the we strong as board background, have

I do of separation is board, we through with to greater We Connect our And are appreciate creation that you even help some capacity. forming opportunity work we to time. are our something larger this I plans engagement of and I to and exists and This all we Nielsen. progress support now continuing the Media. here this to go-forward shareholders, forward personally the successful the am with with of collaboratively a excited wanted finance we journey. and our opportunity by shareholders, also focus for have largest of Management, drive tremendous help And to one speaking the realize have a as of Elliott for attention. committee oversee value many in to look

first to quarter So with Linda? our and Linda the review turn will it for of over XXXX. financials outlook that, to rest the I

Thank you, everyone. David good and morning

to your all around reflect review execution and thank Slide during organization. our colleagues hard turn very scenarios. I the with I across dedication our Nielsen to results. we of the quarter that I to I for David’s this am focused extremely our comments X pleased financials, with first Before want well-prepared the a across They time. will want work of reiterate world unprecedented range results. are start to I

XXX basis. On a had the $XXX basis, X.X% points. on down revenue first reflecting X.X% estimate was XXXX on in which and in quarter an a On drag constant was from of the taxes. to Adjusted an a a point first constant part in currency basis. XXX Adjusted $X.XX an on lower by investments currency FX in or that points EBITDA a $X.XX margins a COVID-XX. Adjusted of our basis down X.X% or compared basis, elevated XXX of basis, adjusted constant currency EPS down in growth quarter. year-over-year We basis constant the million, EBITDA pressures were reported level to lower impact X.X% currency basis depreciation offset XX.X%, basis COVID-XX Media on due in higher EBITDA and amortization, on revenue quarter grew reported declined X.X%, Connect organic includes revenues and

taxes. lower $XX of the expense our tax was will including Our cash which Act, to due million discrete CARES unusual items,

us tax excluded XXXX, TARIFF For a the deduction, XXXX expense a but reversed which XXXX accounting EPS. be credit interest adjusted this to knock-on had the to foreign the on impact in and from CARES Act higher had impact Act quarter. current take We benefits, XXXX allows

CapEx for Free offset higher and cash ‘XX. $XXX with drivers million $XXX and generally by million negative improvements cash Key in in working was in lower of up taxes. include QX capital improvement flow negative from the part our line expectations

some saw by collections April COVID-XX in Media slower incremental pandemic. resulted solid cash in into slower quarter in Connect industries During had as affected the extended collections COVID-XX quarter, in momentum pressure This we progressed. Media, but the in with

closely. collections course of are monitoring We cash

Revenue saw COVID-XX. Turning with currency Measurement Media X.X% better discuss was than on and starting X.X% X.X%. Slide year-over-year EBITDA grew up slightly million, currency. the adjusted constant currency from on and left. in impact constant constant each Audience segment, expected we I minimal came we revenue Organic basis. will XX, to $XXX a Revenue grew

goods in on driven; the Plan/Optimize Music of divestiture audio, offset timing local, the X.X% constant strength national; digital. excludes which fourth saw basis, and by platform. an metadata solutions X.X% was of and in organic down consumer currency currency, X.X% revenue XXXX. XXX growth in quarter continued grew saw in packaged $XXX targeting continued and Media’s million, expected, XX.X%, impact discovery in strength clients our points pressure We down adjusted in we resulting growth underlying EBITDA As basis which constant in mid-single-digit the margins for was Gracenote, in currency. constant of or

growth impacted margins key our in were As drivers. planned, by investments

for basis, Precima, right currency declined revenue we January provider a the Connect the of revenue of acquired currency a up page, Organic in on basis. XXXX. to was loyalty shifting on adjusts which constant on X.X% And the analytics $XXX side constant million, the X.X% impact

call you later, or rapidly and impact for at channels. impacts QX, declined and on the recall in the COVID-XX spreading measurement might services just the As constant was China revenue COVID-XX. in other We smaller about had retail primarily X% basis the $XX Latin trade about around traditional by the in late from Connect’s and in full in markets currency XX million time, some driven our X.X% year impact mostly we impact a America on COVID-XX of from estimate Europe. Measure February, a point earnings revenue Asia in And world. week anticipated virus a

COVID-XX. revenue, which emerging the Precima impact and X.X% decreased Predict/Activate driven saw constant We custom declined perspective, while From analytics X% organic revenue revenue face-to-face. represents Connect’s the X.X% that driven acquisition, geographic than revenue, constant a currency we currency by by which of work developed markets acquisition markets On is Precima grew constant insights conducted performed in XX% X.X%. grew of revenue the driven basis, currency pressure by expected. an better in-store

EBITDA margins basis $XX a was Adjusted XX.X% EBITDA XXX currency points currency. constant X.X%, constant million, down were down adjusted basis. on Connect’s

As we our be expected, some relatively despite to on year-over-year That but lap contained, did pressure as disruption from COVID-XX from greater was COVID-XX. client down margins solid we expect February discussed than we losses. performance overall, Connect call, and said, volatility so

financial Now on I’d our some strong context to broader cost-savings and actions. provide like position

subscription substantial XX, Slide under our stream, contributes to of portion stable our long-term revenue is model a Turning contract. a revenue to and

to businesses in And as revenue quarter both did we the We April, see are reductions preserve in greater million already will in in the seeing Connect. in actions momentum in $XXX headwinds of least in and at plans place cost short-cycle we we our in progressed. are XXXX. quickly result responded first Media slowing And quarter, EBITDA. executing that putting However, Connect on

Our temporary early top in mostly of look include and executives, we hiring entertainment, furloughs a measures and actions likes voluntary travel to the downturn. up and compensation reductions are prolonged which curtailing all of freezes, across scale will

Beyond these actions also savings cost future years. reduction are temporary the measures, permanent year will specific the which with result in developing balance sustained in we of in

said we separation strategies I structures the Global call, evaluating were Media Connect mitigate for ensuring the we of of and our the they that On This automation, resource while our consolidation incremental rationalize also February that global are costs to footprint business. each Global acceleration related with from optimizing to appropriately further scaled platform services. and high-margin essential so includes business allocation aligns

action environment And premised taking more and margin work now Some been all focused are current has of expansion aggressive increased this even sustaining we underway. on in generation. cash the on

$XX by past at least worked are we In reduce XXXX to taking eliminating and non-essential flow, capital maximize the to million expenses. expenditures flow. our actions XX cash cash to we Moving days, operating decisive are our

capital time costs this cash As in achieving on are working collections and monitoring The late I of We focused remain majority our on will occur to conversion year our early are target EBITDA and cash cash close the previously time. separation XXXX. free XX% noted, flow the to extremely separation of closely focused over management. we

as XXXX later Our with for million now million XXXX timing. our expectation of is million more amount versus be million will $XXX our this expectation to incurred $XXX prior to costs in $XXX $XXX

down in confident to $XXX available capacity and financial $XXX had the year QX, drew half capital $XXX in on on million which on $XXX first the balance million and end we of million million the for drew revolving we in our of credit approximately facility. working the we the liquidity liquidity, cash are quarter prior quarter. profile. ordinary in course our Turning is roughly the revolver purposes, million We of At sheet $XXX

markets date. ahead bonds monitoring well are debt XXXX of expect our We maturity the million closely and refinance October to $XXX

We ability credit also our should we the to to access other and are unstable. to the confident be but have pursue in liquidity market, alternatives flexibility find we markets

is with adjusted the debt a XX QX We X.Xx leverage to each quarter. at of X.Xx. months debt Our ended ratio end of achieved EBITDA covenant net measured last

We expect the across remain we to within that scenarios debt evaluated. have of our covenants range

QX, I XX, would some updated Slide which in on to like provide commentary understanding important to Turning our is guidance.

momentum sports revenue. some the with down will COVID-XX, Media, single down with double-digit experienced As the we end low impact digits to we in to this down due expect the traditional pressure expect mentioned revenue. pressure the the mid- by I constant Predict/Activate with largest hoc high At ad single-digits down ad to in trade expect and down mid single sports in QX, and high in slowing of a basis. to driven Measure Audience high-single in be Measurement we high pressure to low point, revenue in revenue in in earlier, we at from the due see Connect, the in currency on single-digits hoc digits, and single-digit auto, QX due products. the revenue declines QX. In declines In channels, in short-cycle Plan/Optimize digits

adjusted in be we EBITDA points, down cost and Media approximately more pressure significantly XXX margins to basis reflecting are in Connect, actions some the We taking. with aggressive QX expect

cash are flow to free $XX range second of currently forecasting of expect million quarter. the and for a million $XX We sequential strengthening

first perspective. from half than stronger seasonal free half a always second Our is cash the flow

cost the taking are turning expected to and the to XXXX updating revenues guidance we we Slide incorporate actions XX, impact response. of in our on Now are COVID-XX

challenging. COVID-XX around uncertainty the know, all has made you forecasting As

revenue, spoken we a recurring high significant taking. we’ve we actions already have the level cost – about However, of are and are we

guidance in range half, end in a based top our updating the are, We lower the range quarter beginning second our on reflecting recovery the beginning recovery expectation of quarter. and a in recovery end the a fourth third the with reflecting therefore, beginning the of of our

Connect David auditors the back reopened As protocols and in having this following researchers some simply South and earlier, in field trade we build mentioned of Korea. we traditional recovery China when is channel effective used

for also assume and ways auto smarter recession demand production We publishers Optimize marketers resumption increased Plan as and televised of a services and sports. Gracenote, new find for to for operate in a normal

range a actions. widened guidance have cost our evolves normal. XXXX, into into of broader that some outcomes even prolonged the ranges forecasts These although to recession significant not We plan hold situation, would we spanning a COVID-XX more reflect up situation in of than would if

X last total divestitures in to acquisitions benefit we of constant XX and currency basis from to months. net revenue X%. company of X% basis, – of points completed negative a negative include the On XX expect negative declines This continues approximately

into negative of to lowers For our Global by Media, we December is revenue estimate, basis points. Music decline currency in constant negative and expect incorporated XX of growth business XXXX currency approximately constant it X% the divestiture this rate The X%.

activity largely of expect that acquisition For currency negative net growth revenue X% Precima the related approximately XXX this to we negative includes to constant points basis X%. related to acquisition. declines of Connect, Recall

Connect. hoc measurement offering and heightened the pressure businesses Connect’s providing our analytical in space Predict/Activate Plan/Optimize and given in not the Given environment. spending are and of nature in we Media supplemental But on expect than greater uncertainty, we within patterns buckets the businesses the discretionary Media’s more the current guidance ad revenue

The actions about a Recent reflected reflects XX.X% revenue. forecast guidance EBITDA billion. aggressive suggest which revenue previous basis be headwind our which as billion negative unchanged for than XXX is guidance range EBITDA range our aggressive XXXX lighter up our to is Absent to cost movements actions. guidance our year-to-date from for forecast, from initial adjusted and FX the EBITDA cost would EBITDA greater XX.X%, previously currency drag, point updated $X.XX to of range and relatively this our updated in our adjusted offset is $X.XX margin

is $X.XX. previous rate. $X.XX lower be This a by EBITDA, to but EPS higher is Adjusted of our in expected in the than lower driven of tax to range $X.XX, by to primarily part $X.XX now range

our upsized of tax As Act the or CARES cash can a to but XX% I rate expect impact approximately book of items. the taxes. is our profit our mentioned, and with current XX% of of on the impact lowers up In light any our vary have number pretax on tax the an year, rate. down a CARES costs And taxes, has discrete Act, negative a we tax balance read excluding the that for don’t

As usual, we’ve the in provided additional appendix. underlying assumptions

offset We taxes. flow CapEx adjusted range the be reflects and of which and in partially $XXX lower restructuring to to expect cash free million, lower cash revenue costs EBITDA, guidance, collections by higher million lower $XXX and slower than original our

I operate $X costs quarter. and traded the impact million under guidance ranges worth noting cash not as the the EBITDA, adjusted include EPS that onetime to of material separation-related these do beginning free first quarter, of were less X incremental costs publicly or adjusted mentioned last in As cash flow separate companies. It’s costs

back Sara And the I’ll to with call that, over turn Q&A. for

ready open up Linda. to you, for we Laura, the Thank line questions. are

question from [Operator Instructions] Steinerman And our first JPMorgan. comes Andrew of

it’s Hi, items. cost definitely you some permanent take Linda, talked the Andrew. about actions. is timely Well, And obviously, my it’s actions. of about cost those to question temporary

in more invest the the strategic they So of I’m about permanent cost company initiatives. same talking to actions The breath. says continue really in

take the much so is, company revenues? how to does my and opportunity not question so have cost affect actions And

in a couple different So ways. it’s a good describe it. of question, would Andrew. asking I Thanks for it

it think end-to-end makes that cost We think areas are even at taking very really and we differently base a structural operations. to business about focused the look our really sense our

than – – And as accelerated I we’re pace have than platform we on planned. doing so a we previously mentioned, consolidations more

very is degree footprint opportunities And company. would based that expansion out projects. a and permanent diligent margins Media And sure margin stand-alone doing cost Connect should as to be Andrew, the that We’re think on about they really and being the is and we also the public focus take have a especially that be global and of cash both of side allocation higher the to say saves. it at for top think resource and Connect we’re looking we priorities as our automation real be the specific side as also I disciplined our generation. making prepare to for the those on really and our

to for and Andrew, add-on been If last create recall side processes. Kenny. throughout could Media now and Having which of of these automate could and I bit. to into remotely to this some year a and to number Connect meters, you QX, new over on a to is we the spans had David more in with managed layers move a just superhubs simplify you be will to investments also year, –

year move why out to of March, talked way Our original made early was do some elevated in our last, to to decision we so there this part plan just the for That’s system of. were working CapEx was new we after shortly that things we parallel. the immediately. Honestly,

because And took we is but part had that of it we to do it I more way, had to risk think things remotely. we paid because off.

started just And but a board, what moment who can Rawlinson, on decided moves. just David these we needed sat the happen. had make beginning to February, is of knew at think where I the we this

and we of of ‘XX, a way for lot sort So term are into we for actually, And the up ‘XX that ‘XX operate. we just it’s the medium in happened. many model in ways, were moving already setting the

for management really – and am glib. I never Media. crisis. Connect in simplification to both a used terrible But you So it long some the we’ve change is This want – and overdue be

is question next Morgan from Kaplan Our Stanley. Toni of

Thank consumer purchase shifts consumer in COVID-XX Media behavior David, that in in in you is and mentioned you. accelerating behavior Connect.

streaming, there view in for like assume e-commerce I Just on of your could e-commerce. so And specifically, changes. permanent you’re guess shifts the your versus position that position? on guess, And accelerating out just, is positioned historically? same if the I the I changes that is and part you do now expand too, I any some color this how you of long-term feel of for those and changes think towards emerged And you how

changes. Toni. cases, But think Yes. the things consumer they as Well, you, years, X did well. we’ve moved that are some Luckily, in as forward just unpredicted not thank I

clearly, And we good and well, with [indiscernible]. people home. So an streaming measuring the data. news I helps and published are think as We’ve the huge is seen as that that so consumption it basis, are measuring in the ad well we spikes as

and panel shifts I to set So we got way shipped manage Those have that the new been U.S. up. there. meters it’s am pleased would in the and say to meters we that and hold we’re I the worldwide. the out using able streaming, mailed all not but can be just means accelerate up,

to think have. the way view people remind the to to from be data to is on-demand was give going DVR would streaming. able I we I So where cable, Nielsen cable total don’t anybody matters navigating the consumer of DVR, broadcast and really to

part us But measurement it. frequently good on far more big and then the of a is affects David year. so need was I very recession, it’s consumer And their going part going attribution. – focus that’s why because experience in Even into this here. he at looking undoubted came talk be about is this before mix Rawlinson seeing e-commerce e-commerce to data I’d And And with we point, to hired his so scale data to with that models. to believe I’m the sales totally understand it the of we’ve to a say I businesses, attribution him efficient. on but I’m does – think early I an side, his got side. of tools to some this on more is think project Activate more the advertisers data greater on back everybody both And of the give certainly, work let

David? So,

to for be to David, with would a Yes. able you ways That’s own developed this question. to We’ve tracker thank clients we’re new give We’ve clients more new real-time. them finding in say environment. faster. the work COVID-XX information seen great. I the data

the We permanent in will them behavior have there work from new to COVID-XX. help normal. with Presumably, be the discover clients opportunity navigate and shifts resulting and consumer

have to emerging who that is adapters we’ll data clients to we past to that, We’ll navigate and think the clients to over see starting been are convenient. analytics We that huge to find be e-commerce those stick some of time. may have older have help adapt there One trends so help started trends. the it trend more there And not consumers have like in are to our trends.

We allowed are as speak. have helping e-commerce clients globally that we solutions now in over XX markets in

change. very our so a fast-evolving And are going clients through

that provide that the to we more and insight Nielsen the of One the them more this more quickly we’ve we moment in to more the information learned can have And change. agile pace things makes critical. is give that be navigate change of even think

Our of comes next from question Bernstein. Todd Juenger

sort is, scenario you. pushed impervious I been and little business I been its might talk that to has beliefs bit of guidance the XXXX. think And that has thought a morning, good Linda last cycles. the want even thank Nielsen’s and of historically, idea the of a Hi, that even the through revenue rather model my recession regarding to evidence that macro model out about the

a I Nielsen think from that the private, of revenue kept financial same was in if great at rate. the sort data growing came but said I out think IPO the crisis,

a sort recessionary of of the ability keep recession Thanks. Has has virtues to on changed key anything time you’re so the recession sounds around clients? Linda’s and just if how And revenue historically, or like this model. were that explore – this – things we impact want two comments because comport, from be resiliency been those have business a not suggesting that with around may it how to growing here, your your during I true your

Yes.

resilient. long-term Todd, very you, there industries. And the be they’re listen, businesses are clear, So the And thank for and pretty question. contracts, are to core-to-core core

retail changed because and time Audience any put get So be we make market we want it is flipped caught to fundamental fundamental honestly, nothing fundamental we Measurement, in this sure for has quite attribution, I all prepared really in want share don’t say scenarios what to would Nielsen. different at way.

I the XX% think long what’s changed that’s on the Media side not term is in contracted. just

the than little it Of a been That’s past. that’s been course, growing. have bigger might in

shift. So bit little of that’s a a

need measure them. sports side, sports On the Gracenote side, to able to to the to events need on manufacture have And be you automobiles. you

a in areas, of couple there is So disruption.

I are back. come looking think to industries those

to We’re by in be working and with is make to work. resiliency. them. But business large, industries But it there that have those

On feel. markets. been data time the to course, more side, that without of over rework business cases, sustain the to a markets to emerging Connect the able those fastest some going In growing are having part little be take has of

operationally. So at it we’re looking

think for there period. operational a this but as if is direct no constraints not with to recession I this this other. fundamental end goes a have correlation long a much course, of the here are some could be and economy, we user like And consider

to anything be the constrained. do do we David, to more from So you Connect continues discretionary want be to spending if side? prepared want add

No. cycles it. David, bit I the of recession, impact think traditional business differently covered last a than the This you in countries. through the especially little lockdowns trade

And a the so leaves more quickly more bit Connect also over emerging growing been to which I us – has impact exposed time. and markets, think in there the

ready stress I is Linda we’re as at that noted, liquidity protected. testing, think, on the worst such brings cases, I sure making looking and just experience

timing. that want may you sort Linda, about to side of this talk So of

what say, global past whenever is is super of I is versus have very lot Rawlinson Sure. much company of is the our you’re capital, international. to the domestic aggressively past situation, a And in important more that or types situations. put David, crisis think would terrific been really some going I said David a the place year, processes working which more these this first just whereas, into thing of will of reiterate of over the manage U.S.

on to focus start outcomes capital well. with in I we protracted, still lot seeing serves range. we closely on comfortable collections liquidity. monitoring that working profit, the across our model that. good of If walked it very are just Todd, is we it do – across prudent where to very And to really to liquidity. what of that doing our these in that need flex able don’t David as importantly, preserve And what we And we set the prudent through, us range this If company do both cash such so that to our actions to us cash businesses have made progress XXXX, now to up Because earlier, we It’s we but and we independently. a plan And the situation with think end we’re scenarios across prolonged even more and do. cost until scenarios more the we’ve range potential that recovery the up a mentioned confidence to environment. been real really we’ll up, fact various want are operate on this uncertain is well focused anyway, time in management and to a be past year,

Our Barclays. is Manav next question Patnaik of from

morning you. guys. Thank Good

contracted of sort there It from be revenues, variability like this in revenues for have modeled the comes does your Just hit follow-up year non-contracted some sounds you of on that question. seems that your but as most to well.

different So the where there contracted could of and and I versus minuses about the if bit difference was just talk subscription between little could true kind a wondering be? you pluses

appreciate multiyear contracted do honored. mostly They’re I that. being the have and businesses. contracts. less those risk, To They Manav. areas are to Thanks, clients’ our are operating Yes. clear, essential be

So there make that do to. well. the things been so components example we continue What in that sure to have of side. non-contracted want because quality are we’ve in little to quite is far, non-contracted, we live But of maintain reality, are that the are are we Measurement all the that KPIs to – but in a handling adjustments Audience all as an almost up

to Operator? the go next question. We can

of next Your is me Sachs. you Goldman Can ma’am? hear George Tong question

Hi, thanks. Good morning.

invest million discussed as cost how saves, in and ballpark much base permanent could you about in consolidation Can cost talk you Media $XXX while be automation the to in to in innovation are permanent segments business. You innovation such improving nature And segments? of in your each in case each Connect around the fund saves your initiatives working how platform continue of perhaps in and also of going much to scenario? the

Yes.

can... So I

very closely. inspect Linda, that

Yes. Yes.

line still earlier And then our important. CapEx that I looking of saves. already. CapEx temporary that us from bit cost of will we’ve continue is cost and ample on areas And takeout growth. up we sized above the are to more in more that, gives over the we gave million. to And we’ll definitely capacity mostly perspective permanent a initiatives. at million of the referenced cost investing revenue to little intend investing more so But a those initiatives. some David continuing What we doing top still $XX a which reduction critical be strategic about $XXX And strategic color the saves. So be that continue consider is

us if while I old sustain example, also the certain as model also had will, in platforms you to ones. maintenance add could if CapEx amount is just an take – new investing I’d CapEx the a What there’s of CapEx,

would say way be and the that’s a I older about in the operate. and is And happening I to us also sunset think the we we And we’re begin to we side necessity proving platforms. can creates what the faster. new as this learning side. on both Connect then to out down more of efficient reduction platforms Media how to permanent shut is shift lot that

the attacking way really organization effectively. some data we of to was And done lower layers the the manually of collection operating certainly a digital Connect both cost and stuff of that then and thirdly, that quite in field. more move than as spans in the We’re Media, is

plan ways by forward. is this reduction absolutely working cost that permanent bake forcing I necessity, we of think, to So into going

from next question is Deutsche Sabadra of Our Bank. Ashish

my Thanks for question. taking

there question because revenues just spend out Connect your was in they of weakness that customers? We’ve to the out years conversations of segment. seeing. are with my seen about and So the both question lot revenue push are a the was Media discretionary companies And how evolving more the your short-cycle

of the year? wondering visibility in was coming that have half the just So the improving for the short-cycle least back back I at you

going and because I’m things the to also operating more already post go bigger where of experience David Look, little side, China Connect Korea Good. are on the first he let and a pandemic. it’s has

can share happening. he what’s So

good on – Media others. those can’t come David’s start the colleagues to on side. a markets think got back this. But from view You I I’ll then And

our – impacted was Thank right, first of David. Yes. in by of the the you, business, course, we that’s China the effect COVID-XX. lockdowns And saw

capacity. that largely demand you’ve we have now discretionary seen through quickly we’ve cycle. near we’ve up have And modeled go relatively that that return in we some in the gotten spend that at help full projects, back forecast comfortable back but So seen, clients get to as the in seen understanding are guidance volume for XXXX, expect as as defer come spend And in experiencing increased of more in business significant and markets They but to we in continue business demand running. in we’ve clients trends. our back some also some back we do the and as new cuts are clients need environment. We’ve seen emerging

also what’s we other country-by-country were look business understand on demand that on happening look a and a so come like the normal. what basis basis. experience at the a curb will out China leaning as operations start the we But to gained client-by-client from to both resume looking more And little we’re side we’ve on

discretionary pressure So be we on spend. think some do certainly some we impact? there’ll There’s –

bit pharmacies the markets. a some in end have We against are is This storm end markets. and other our business that supermarkets decked better than and end fortunate and proven critical have weathered markets other

will demand even as ad situation we’ll continue that think fortunate the pick we’ve clients. we so improves. hoc for we been And And in that. to up think And see

Yes.

don’t I it’s discretionary. side, all of short media true the think cycle the that is On

centered of short specific event-driven, cycle analysis around events. sports like the Some is

don’t to that do you’re not an going Olympics, if you have So work.

analytics games baseball less, more believes They way just finding to But going are so But games, of that’s around was completely new forever. think think you’re are of If don’t our stay sort nobody you there to important ad an dark. it’s pause having part sports. basketball happen. that pastime. right, to certainly, production it’s new all not resilience attribution, as a And it’s of world’s take going in Other going away competitive people lift to sports in done. not centered to solutions. delaying going Similarly, I are campaigns. behavior new ad-driven, their be business hoc is that and to honestly And need and the I that’s work ad reconsidering have understand the a the sports things that analysis, on

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prudent you So is on focused think advertising they’re understand on analytics client and But side. precise. really those. people efficiency. the increase The And as as those Nielsen need I come smarter going attribution really on and more back, be only to get it’s to focus to need rethinking

that figure of So that most now. I’m with and on our out my next And Zoom. clients folks right phase. you kids as their dogs their I tell this spending I I’ve seen days plans in the all think would need analysis they

Our Baird. from next of question is Jeff Meuler

where nanometer period there’s you meaningfully then rate are or there do There like Good reference kind a to permanently or I expect comments. combating for panelist seeing risk you. panel how on is deployment? this question hard in I thank health refresh it’s get I guess, your and just methodologies? houses, point maintaining your related learning get maintenance? a you deployment I what Thanks. media and it change situation that was an is inside my to are with a to Meaning, technicians panel think of extended guess just panel drags that, morning. if you to And terms then the of, And a deteriorates of to what you through guess are effectively this Yes, for time where nanometer does health. research

of number corrected we want data of panel. do all, I which to methodology that remind big a Well, from people and continue combine sources, our by hybrid does Yes. first get is to

are health. lot in actually this panel. say the of improving quality asset, is metrics beyond a just to panel there’s period. manage do the we So its the data quality and would important maintain I But an

the because to them behavior. that. – increased so of that’s so and panelist doing And because finding In where – wear grateful and I’m number actually panelists their Audio meters, largely business we’re an

at improving. look it’s engagement, at we different As we look checking technologies, the actually people remotes the using and in if

they’re more is For home important at Media many people, to more. them.

of I this for And it’s mind. in our an of So would touch learned many we’ve to with digitally. say important how panelists period. also top purpose this is them, in stay

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help So think a this will I us lot.

And done on going we’re this. to economics. our remotely. will them think can and as be this more just will I easier be be change of bigger digitally It’ll maintain sort faster yes, build much of panels. easier it to to go It

digital a having effect, is game-changer it was the our twins Nielsen. all plan. And real for in So to meters

faster much just We’re going now.

Our of next Wells question Warmington Bill from is Fargo.

everyone. morning, Good

and So a clarification question. a

XXXX low guidance case, for recovery the the bull upper you the are third their recovery, the the end guidance in and if the bear of in guidance the the the products? And And clarification, things is recovery case. will. of fourth quarter, is the end the as the it how clients the case, beginning On question And that’s quarter, going beginning CPG in then spending base the is the with on is. not large Connect

Good.

will take will part. the the and first take – So part, Rawlinson David Good question. second take Linda will David

sure. Okay,

scenario, Bill, range The you we morning. reflected we And but the year. this it as cost second the are got a a the those ranges that guidance recovery premised are The should reflecting stated, ranges right. half be recovery. So in QX then in protracted you versus actions, ranges take we mostly would we of are QX further not of gave into the on guidance

to We’ve seen for seen And faster migration or spend. we’ve contracted I Connect clients, CPG the migration say in strength also would seen large We’ve continued Yes. the strength. platform.

moment. this up clients in helping so the are those But others, better the We clients are those held we CPG some pressure discretionary spend than navigate whole, have seeing them and well. clients. some are with There’s and this they their doing critical on realize those need that seen to is call continue business they operations. we very they to essential are on What that to us us because moment, is in clients. And we’ve our

that We to been And has be to found innovate provided need That’s so those clients have the we we’ve to contracts. the that the the having able to up. we continue our do deliver where in how for to pleased risk difficulty field, by under I to some in them. held data That feed have is guidance already. get to in solutions

that’s lockdowns impacted essential in considered provide, we’re we’ve that, some continued of are deliver. clients services And to today, us. our have every clients and And every and one appreciated especially seen we ability strong But CPG still have the in that still area, supporting markets. so up XXX our but a for us effect It’s market. in of able the the live in of we’re to being

Our of next Nollen from comes question Macquarie. Tim

sectors, growth be Connect a downturn, just low in TV recognizing just Alright. to a is network. make to I A single-digit like an particularly much. or one ad-supported I prior that done make the last business sure Was agency resilient more several time measurement. side normally the pretty business in would your still like quarters. was it certainly to it questions, more the been retail on have why demand Thanks the few very for I this. strong and really I’d understand than products sure to CPG am was make on business, been business quite sure, think, at get But trying an down have just with Connect X.X%. obviously, the have well, and measurement coming was quarters, would anything difficulty pressuring or in Thanks. that was more that else emerging collecting the most because the data I would there and in recent in markets have have quarter thought resilient? the that been

that, Connect the you David, take question? why don’t

Yes, sure.

right. So that’s

ad measurement I resilient things of measurement agencies. definitely of a XX% is about about business our the think couple than is I more so the say impact, ad-hoc. would

single lockdowns in side. data we lockdowns some services as about final markets be of get we we to able being for back all data and portfolio part loved will collection. collection. of and trade the street second have is where clients. is able say against more continue. has up, to in one critical to measurement we’ve in open normally there is aren’t to on the measurement collection We suspected keep and pressure. lockdowns have essential thing deliver out do to then some where coming able resilient been the we’ve the have the There be seen on continue under component clients. other it new types it’s to places two That’s have our some prevented we most largely on our are services us services to data the that our that all has do caused provide of in is not to of the think innovate for And That’s we’ve where of measurement of able less feet I quickly. relatively measurement seen to XX% really with markets us we revenue. back some side, those than has contracts markets, to us But would pull services then methods able But find it of I measurement. which what China trade the those ad is, back kept is been trade we’ve would go traditional And hoc measurement, as And stores the that been way do critical So to terms least of for able at able our ad-hoc again, in traditional in put And the our what our normal impacted to of markets. of the the It have of continuing the every are in traditional be the those to market. flowing to data

next Salmon Dan question from of is Our BMO.

or Thanks Good maybe me for morning Linda. two here. Alright. David letting in everyone. questions I for for have

free then that maybe at taken? an just just love those a And What on keep you’re could certainly importantly little most was focused hoping question to to see some on time you you. spend please? feel just are First, flow cash you level? broader need about But Would the a be things and free a are you guidance secondly, on I on talking that things, liquidity, the bit conversion. high these EBITDA of actions we cash Do flow in Thank deck. at can the more levels? more comfortable update

Good.

continue with us is view closer we products improving. total and and That said, finish. and I just and scale. a getting And Linda the this of does to of bottom-up which structure conversion. on that’s as I’ll margins as really deliberate have flow coming I is that cost should are Let organization, taking Listen, getting stick that goal we path, me faster XX% simplification why to higher let the start, cash we’re free start think margins. And this on

two, CapEx. measuring course, that’s lot CapEx part So a maintenance is And taken the talked then of Linda mostly on of we’ve one. Again, out part the already side.

to our still maintenance. long-term But said, spending capital conversion. be improve. CapEx quarter our we just clear, in to moved also really about of progress working And And continues very haven’t be towards just to to processes vision. we’re then us all on Linda make as future midterm allows So our simplification that on goals. our continue I much managing every And thoughtful think investing not from

them towards and I towards about liquidity. of talk let moving will finish I faster Linda them because think moving and necessity. absolutely We’re that then

Yes.

free get And flow And more efficiency of year, focused and growth. we’re a on I as been day. that importance time, then working then summarized once time, each coming and perspective. certainly, to expenditures. improve down. of that of think we’ve So we think down managing we’ll even scenarios. overall, start revenue which various come some and every and from reiterate revenue percent as you a our David, I we what just of And Over CapEx well, this should is focus restructuring also see I’ll a past we we’ve as EBITDA see capital, CapEx cash cash at have those improved closely the you’ll looked conversion over these

protracted in As and did in taken. point From that got of to bring on liquidity. back the I it goes even $XX stay the we recovery that range will down we one of been about that feel to mentioned, scenario, our a the scenarios we’ve looking we’re million things the continuing already I out, that actions one really good of we’ve the about earlier important perspective, And we liquidity it at, questions just focused that.

basis. out. on feel are we point a And ratios last XX-month And will those have out EBITDA good ratios. that that I the about covenant debt just We modeled measured

new measurement. a But a very important, get you out are And and so comfortable it with that turn it. is we’ve quarter, into and of that every modeled we quarter

the getting from a cash Media both then was we the on Connect. for be path But still levels. focused more are so out that back cash Media so very that And both holdco, just Connect are committed liquidity we is that. are are we’re that maintaining clearly to XX% that, of scenarios the quality then And just But liquidity have what cash think free think target time. of and very looking and to dealing perspective, the much meet at you over XX% the comfortable. on that and And which I be remains remind at for And with. stepping we delivering to generation we’re seen we based flow medium-term consistent overall, going broadly, target on we exactly we to a I’ll there conversion.

time question. And have for one we more

Your question Matthew comes from of next SunTrust. Thornton

everyone. morning coming in for Thanks good back Two-part the just I me Hey sneaking revenue. guess to here. question. contracted

contracts escalators, a color walk and – secondarily, could those what two kind missed percentage the I couple and we renewal of kind just multiyear for onboard examples, And you’re business? the numbers. some across a or But this everyone. any the like, only think with look play willing at any maybe how I out of that. because those in is each as up of what sub-segments Thanks kind the through again have Just resigned push/pull again, this these or cost examples you can think then you months as businesses of if long that obviously, we come conversations wondering if than will if have you within But have of of really of whatever year. them any are X is, get just the price there contracted conversations just revenue you two less us what to

Sure.

XX% Audience XX% it’s in the second it’s Measurement, to and contracted. So aggregate, is part, Plan/Optimize. in close on Media XX% In

the and On all-in – the is the Connect side, Activate if know it’s Predict XX% I XX%. and or non that

I think to is closer XX%. the Measurement Audience

scopes a I And escalators, would they Media on contracts. the revenues of think in. our have escalators that I would to been full quite some them think renewal couple to very in counting a sit clients on different work side. be say ability with a understand Connect with renewals of than is lot bid discussions confidence year do in lighter on world they positive. a There would say ability are the side, our do the still we been I But on to streaming. I have have they good in the going there our us of and right because forward multiyear ongoing Media. help I how audience. that’s are they and in Connect There is total lot those ask the bit they little last on less are the media This is and confidence tend say that measure and to unique a measure normal. are So contracted, where And

I think these important. going are innovations be to

So our They found intend this all well. adversarial. honestly, as I well-capitalized be haven’t strong, to it quite be businesses. And clients are here to throughout

And current that much next renewals. just so the we to moment approaching these years, not eye our to very few are the it’s within

environment. that in big haven’t is of change And none not prior as seen am quite So although I noted there like a we the expecting crisis, this. because

monitor you to to work innovation. continue That’s and our the morning. tireless through their a their to for to It’s share all employees you. you this Due last like clearly are the this and time want unprecedented thank us. closely So, we I developments for and thank question. an thank transparently. collective we joining to to continue especially I for efforts, going strong And would call incredible for to position in environment. are navigate

the as a to forward Thank clients. will partner together, continue markets our move And you. move closely normal. We we with to new

this call. participating gentlemen, you Thank you and disconnect. and now conference may concludes today’s for Ladies