There are 5 scores that are reported on your GMAT score report after you take the GMAT exam
With each of these 5 scores, you also get a percentile score. The percentile score tells you how you have fared out of every 100 candidates taking the GMAT. For e.g. if your percentile score in the Verbal section is 98 percentile, it means that for every 100 candidates attempting the GMAT, you are ahead of 98 candidates
The scaled scores are computed by the software taking into account the difficulty level of questions that you answered correctly and incorrectly. It is NOT a function of how many of your answers were correct and how many questions you answered incorrectly. In other words, in the Quantitative ability section, for instance, a candidate answering 22 questions correctly and 9 incorrectly can actually end up with a higher scaled score than a candidate answering 23 questions correctly and 8 incorrectly