Marchex(MCHX)

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Marchex(MCHX) - 2025 Q1 - Quarterly Results
2025-05-13 20:20
[First Quarter 2025 Performance and Corporate Announcements](index=1&type=section&id=First%20Quarter%202025%20Performance%20and%20Corporate%20Announcements) Marchex reported its Q1 2025 financial results, including a net loss and adjusted EBITDA loss, alongside the authorization of a new share repurchase program [Q1 2025 Financial Highlights](index=1&type=section&id=Q1%202025%20Financial%20Highlights) Marchex reported Q1 2025 GAAP revenue of $11.4 million, a net loss of $2.0 million, and an adjusted EBITDA loss of $0.8 million Q1 2025 Key Financial Metrics (in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | GAAP Revenue | $11.4 | $11.6 | | Net Loss | $(2.0) | $(1.5) | | Net Loss per Diluted Share | $(0.05) | $(0.03) | | Adjusted EBITDA | $(0.8) | $(0.4) | | Adjusted Non-GAAP Loss per Share | $(0.04) | $(0.02) | - Excluding reorganization costs of **$0.6 million** in Q1 2025 and **$0.2 million** in Q1 2024, the adjusted EBITDA loss would have been flat year-over-year at **$0.2 million** for both quarters[4](index=4&type=chunk) - CEO Edwin Miller stated that Q1 revenue was affected by seasonal factors and timing of new sales, but expects sequential revenue growth and positive adjusted EBITDA in **Q2 2025**[3](index=3&type=chunk) [New Share Repurchase Program](index=1&type=section&id=New%20Share%20Repurchase%20Program) The Board of Directors authorized a new share repurchase program for up to 3,000,000 shares of Class B common stock - The 2025 Repurchase Program authorizes the repurchase of up to **3,000,000 shares** of the Company's Class B common stock[3](index=3&type=chunk) - Repurchases can be made through open market transactions, privately negotiated transactions, or under a Rule 10b5-1 plan[3](index=3&type=chunk) - The program has no expiration date and can be modified or terminated at any time without prior notice[3](index=3&type=chunk) [Business Update and Outlook](index=2&type=section&id=Business%20Update%20and%20Outlook) The company outlined its 2025 business outlook with financial targets, detailed recent strategic expansions and new growth initiatives, and reported on other corporate developments [2025 Business Outlook and Financial Targets](index=2&type=section&id=2025%20Business%20Outlook%20and%20Financial%20Targets) Marchex targets an annual revenue run rate of $50.0 million and adjusted EBITDA of over $6.0 million for 2025, focusing on strategic product launches and market expansion 2025 Financial Run Rate Targets (in millions) | Metric | Target Run Rate | | :--- | :--- | | Annual Revenue | $50.0+ | | Quarterly Revenue | $12.5+ | | Annual Adjusted EBITDA | $6.0+ | | Quarterly Adjusted EBITDA | $1.5+ | - Key strategic priorities for 2025 include: Launching new products on the Marchex Engage Platform, increasing investment in sales and marketing including expanding the sales force and entering new channels like the Microsoft Azure Marketplace, leveraging proprietary first-party data in Auto, Auto Services, Home Services, and Healthcare verticals, and expanding gross profit margins through SaaS revenue growth and efficiency gains[6](index=6&type=chunk) - The company acknowledges that the current macroeconomic environment creates uncertainty, which could cause variability in actual financial results[7](index=7&type=chunk) [Recent Strategic and Operational Expansion](index=3&type=section&id=Recent%20Strategic%20and%20Operational%20Expansion) Marchex expanded its Auto OEM relationship to over 3,000 dealers, launched a unified UI, and introduced new AI-powered solutions for auto and home services - Expanded a relationship with a **Fortune 500** auto OEM, providing access to over **3,000 franchised dealers** for its sales and service products[9](index=9&type=chunk) - Launched a comprehensive **unified interface (UI)** for customers, enabling a unified experience and seamless upsell opportunities with **'click-to-buy' functionality**[9](index=9&type=chunk) - Introduced **Marchex Engage for Service**, an **AI-powered solution** for auto service centers, and new **AI-driven solutions** for the **Home Services industry** focused on lead outcomes and topic analysis[9](index=9&type=chunk) [Additional New Growth Initiatives Planned for 2025](index=4&type=section&id=Additional%20New%20Growth%20Initiatives%20Planned%20for%202025) Marchex plans 2025 growth initiatives including expanding sales channels, leveraging its 'OneStack' platform, and launching new AI products like Marchex GPT - Marchex has launched its initial product in the **Microsoft Azure Marketplace** and plans to add more products and partners to expand its sales channels[12](index=12&type=chunk) - The company completed its **'OneStack' platform unification**, consolidating its technology into a single cloud-based architecture to power **generative AI applications** and improve customer experience[12](index=12&type=chunk) - Upcoming product launches in 2025 include: - **AI Benchmarking:** Providing industry-specific sales and marketing insights - **AgentAI Optimizer:** Analyzing the performance of third-party AI agents - **Marchex GPT:** A business-specific large language model for searching structured data[12](index=12&type=chunk)[16](index=16&type=chunk) [Other Corporate Developments](index=3&type=section&id=Other%20Corporate%20Developments) Marchex sold the domain phonenumbers.com for $0.8 million and continues to explore monetization of other non-core assets - The company sold the domain name phonenumbers.com for **$0.8 million** in proceeds before commissions[8](index=8&type=chunk) - Marchex is continuing to review its portfolio of unused domain assets for other potential monetization opportunities[8](index=8&type=chunk) [Financial Statements and Reconciliations](index=8&type=section&id=Financial%20Statements%20and%20Reconciliations) Detailed financial statements for Q1 2025 are presented, including consolidated statements of operations, balance sheets, and non-GAAP reconciliations [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) Marchex reported Q1 2025 revenue of $11.4 million and a net loss of $2.0 million, with increased operating expenses Q1 2025 Statement of Operations (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $11,402 | $11,573 | | Total operating expenses | $13,273 | $12,886 | | Loss from operations | $(1,871) | $(1,313) | | Net loss | $(1,982) | $(1,450) | | Diluted net loss per share | $(0.05) | $(0.03) | [Consolidated Balance Sheets](index=9&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, Marchex reported $10.0 million in cash, total assets of $40.6 million, and total stockholders' equity of $31.4 million Balance Sheet Highlights (in thousands) | Line Item | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $10,020 | $12,767 | | Total current assets | $19,928 | $22,278 | | Total assets | $40,633 | $43,200 | | Total current liabilities | $7,965 | $9,267 | | Total liabilities | $9,259 | $10,567 | | Total stockholders' equity | $31,374 | $32,633 | [Non-GAAP Reconciliations](index=10&type=section&id=Non-GAAP%20Reconciliations) The company provided reconciliations for non-GAAP financial measures, including adjusted EBITDA and adjusted non-GAAP loss per share Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss | $(1,982) | $(1,450) | | Depreciation and amortization | $633 | $324 | | Stock-based compensation | $455 | $433 | | Other adjustments | $111 | $288 | | **Adjusted EBITDA** | **$(783)** | **$(405)** | Reconciliation of Net Loss per Share to Adjusted Non-GAAP Loss per Share (in dollars) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss per share, diluted | $(0.05) | $(0.03) | | Stock-based compensation | $0.01 | $0.01 | | **Adjusted non-GAAP loss per share** | **$(0.04)** | **$(0.02)** |
Marchex(MCHX) - 2024 Q4 - Annual Report
2025-03-14 20:40
Revenue Performance - Revenue decreased by $1.8 million, or 4%, to $48.1 million for the year ended December 31, 2024, compared to $49.9 million for 2023, primarily due to lower conversational volumes and non-recurring analytics revenue in 2023 [139]. - Revenue for the year ended December 31, 2024, was $48,122 million, a decrease of 3.6% from $49,910 million in 2023 [182]. - The majority of the company's revenue is generated from conversational intelligence product offerings, with revenue recognized over time as services are performed [156]. - The company reported that 99% of its revenue for both 2024 and 2023 was derived from the United States, indicating a strong domestic market presence [231]. Expenses and Cost Management - Cost of revenue decreased by $3.4 million, or 17%, to $17.2 million for the year ended December 31, 2024, representing 36% of revenue, down from 41% in 2023, driven by lower conversational data processing costs and efficient vendor management [140]. - Sales and marketing expenses increased by $0.7 million, or 6%, to $12.1 million for the year ended December 31, 2024, accounting for 25% of revenue, up from 23% in 2023, mainly due to higher personnel costs [141]. - Product development expenses decreased by $3.0 million, or 19%, to $12.4 million for the year ended December 31, 2024, representing 26% of revenue, down from 31% in 2023, attributed to lower personnel and contractor costs [142]. - General and administrative expenses remained consistent at $10.2 million for both years, accounting for 21% of revenue in 2024, compared to 20% in 2023 [143]. - Total operating expenses decreased to $52,569 million in 2024 from $59,553 million in 2023, representing a reduction of 11.7% [182]. Net Loss and Financial Position - Net loss decreased by $5.0 million, or 51%, to $4.9 million for the year ended December 31, 2024, from $9.9 million in 2023, primarily due to a $7.0 million decrease in operating expenses [147]. - Net loss applicable to common stockholders improved to $(4,947) million in 2024 compared to $(9,910) million in 2023, a decrease of 50.1% [182]. - Basic and diluted net loss per share applicable to common stockholders was $(0.11) in 2024, down from $(0.23) in 2023, reflecting a 52.2% improvement [182]. - The company reported a loss before income tax expense of $4,567,000 in 2024, an improvement from a loss of $9,816,000 in 2023 [260]. Cash Flow and Liquidity - Cash and cash equivalents as of December 31, 2024, were $12.8 million, down from $14.6 million in 2023 [148]. - Cash used in operating activities was $1.1 million for the year ended December 31, 2024, compared to $4.4 million in 2023, reflecting a reduction in net loss and adjustments for non-cash items [149]. - Cash used in investing activities was $0.4 million for the year ended December 31, 2024, down from $1.3 million in 2023, primarily for technology infrastructure and capitalized software development costs [150]. - The company believes its resources will be sufficient to fund operations for at least twelve months, but additional financing may be needed for strategic initiatives and acquisitions [152]. Assets and Liabilities - Total assets decreased from $47,477,000 in 2023 to $43,200,000 in 2024, reflecting a decline of approximately 9.5% [180]. - Total liabilities decreased from $11,607,000 in 2023 to $10,567,000 in 2024, a reduction of about 8.9% [180]. - The company's accumulated deficit increased from $(321,231,000) in 2023 to $(326,178,000) in 2024, indicating a worsening of approximately 1.5% [180]. - Accounts receivable, net, decreased from $7,394,000 in 2023 to $7,072,000 in 2024, a decline of approximately 4.4% [180]. Stock and Compensation - Stock-based compensation decreased to $1,707 million in 2024 from $2,393 million in 2023, a reduction of 28.7% [188]. - The company did not grant any stock options with exercise prices less than the current market value during 2024 or 2023 [241]. - The unrecognized compensation costs related to stock options as of December 31, 2024, were $3,100,000, expected to be recognized over 2.59 years [246]. - The company has authorized a total of 138,500,000 shares, including 137,500,000 shares of common stock and 1,000,000 shares of preferred stock [236]. Intangible Assets and Amortization - The total identifiable intangible assets from acquisitions amounted to $26,530,000 as of December 31, 2023, with a net carrying amount of $602,000 after amortization and impairment [270]. - Amortization of intangible assets decreased from $1,987,000 in 2023 to $602,000 in 2024, indicating a significant reduction of approximately 69.7% [271]. - Customer relationships intangible assets had a gross carrying amount of $13,018,000 with accumulated amortization of $9,588,000 as of December 31, 2023 [271]. - Technologies intangible assets had a gross carrying amount of $9,369,000 with accumulated amortization of $8,307,000 as of December 31, 2023 [271]. Future Commitments and Legal Matters - Future minimum payments related to other contractual obligations are approximately $9,612,000 [255]. - The company is currently involved in litigation regarding an earnout of up to $3.0 million related to a previous acquisition [258].
Marchex(MCHX) - 2024 Q4 - Earnings Call Transcript
2025-03-07 01:01
Financial Data and Key Metrics Changes - For Q4 2024, revenue was $11.9 million, a decrease from $12.4 million in the same quarter last year, reflecting typical seasonal call volume decreases [17] - Adjusted EBITDA was a loss of $386,000 for Q4 2024, down from an adjusted EBITDA of $112,000 for Q4 2023, indicating increased investments in infrastructure initiatives [22] - GAAP net loss for Q4 2024 was $1.9 million, or negative $0.04 per diluted share, compared to a loss of $1.1 million or negative $0.02 per diluted share for Q4 2023 [22] Business Line Data and Key Metrics Changes - Cost of revenues for Q4 2024 was $4.4 million, with improvements in cost as a percentage year-over-year [18] - Sales and marketing costs increased to approximately $3.4 million for the quarter, reflecting higher investments in go-to-market teams [20] - Product development costs were $2.8 million for Q4 2024, as the company continued to invest in expanding its AI product suite [21] Market Data and Key Metrics Changes - The company experienced a typical seasonal decrease in call volumes of 10% to 15% across core verticals in Q4 [17] - The company anticipates revenue growth for fiscal year 2025, with opportunities for sequential revenue acceleration throughout the year [25] Company Strategy and Development Direction - The company aims to build a $100 million revenue-plus business and is taking deliberate steps to achieve this goal [11] - Key initiatives include the launch of a unified user interface and single sign-on to enhance customer experience and streamline access to services [12][13] - The company is focused on leveraging its cloud platform and AI-driven solutions to serve enterprise customers more effectively [10] Management's Comments on Operating Environment and Future Outlook - Management views 2025 as a year of acceleration, building on the foundational progress made in 2024 [28] - The company expects to achieve significant positive adjusted EBITDA progress for the full year, demonstrating both revenue growth and operational discipline [27] - Management is optimistic about the potential for sequential growth driven by customer demand and the expansion of product offerings [27] Other Important Information - The company ended Q4 2024 with approximately $12.8 million in cash on hand [23] - The company plans to complete multiple technology advances in the coming months to enhance its product offerings and customer experience [12] Q&A Session Summary Question: Can you talk about your outlooks and confidence in revenue improvement? - Management highlighted technological progress and the emergence of generative AI as key factors for expanding conversation volumes and capturing more value from customers [35] - The unified platform and single UI are expected to facilitate easier access and adoption of services, differentiating the company from past performance [37] Question: How might tariffs impact your market presence, particularly with Auto OEMs? - Management indicated that there are currently no specific disruptions anticipated from tariffs, and the focus remains on strategic roadmaps of customers [48]
Marchex (MCHX) Reports Q4 Loss, Misses Revenue Estimates
ZACKS· 2025-03-07 00:10
Company Performance - Marchex reported a quarterly loss of $0.03 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.02, marking an earnings surprise of -50% [1] - The company posted revenues of $11.92 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 0.72% and down from $12.4 million a year ago [2] - Over the last four quarters, Marchex has only surpassed consensus EPS estimates once and has not beaten consensus revenue estimates [2] Stock Movement and Outlook - Marchex shares have increased by approximately 11.7% since the beginning of the year, contrasting with a -0.7% decline in the S&P 500 [3] - The company's earnings outlook will be crucial for future stock performance, with current consensus EPS estimates at -$0.02 for the coming quarter and -$0.04 for the current fiscal year [4][7] - The estimate revisions trend for Marchex is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Internet - Services industry, to which Marchex belongs, is currently ranked in the bottom 45% of over 250 Zacks industries, which may negatively impact stock performance [8]
Marchex(MCHX) - 2024 Q4 - Annual Results
2025-03-06 21:20
Exhibit 99.1 Marchex Announces Fourth Quarter and Full Year 2024 Results SEATTLE, WA – March 6, 2025 – Marchex, Inc. (NASDAQ: MCHX), which harnesses the power of artificial intelligence ("AI") and conversational intelligence to drive operational excellence and revenue acceleration, today announced its financial results for the fourth quarter and full year ended December 31, 2024. Q4 2024 and Full Year 2024 Financial Highlights | | | Three Months Ended December 31, | | | Year Ended December 31, | | | | | --- ...
Marchex (MCHX) Reports Q3 Loss, Lags Revenue Estimates
ZACKS· 2024-10-31 22:36
Marchex (MCHX) came out with a quarterly loss of $0.01 per share in line with the Zacks Consensus Estimate. This compares to loss of $0.01 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this advertising and marketing company would post a loss of $0.02 per share when it actually produced a loss of $0.01, delivering a surprise of 50%.Over the last four quarters, the company has surpassed consensus EPS estimates two times.Marchex, which belongs to t ...
Marchex (MCHX) Reports Q2 Loss, Misses Revenue Estimates
ZACKS· 2024-08-09 00:41
Marchex (MCHX) came out with a quarterly loss of $0.01 per share versus the Zacks Consensus Estimate of a loss of $0.02. This compares to loss of $0.03 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 50%. A quarter ago, it was expected that this advertising and marketing company would post a loss of $0.02 per share when it actually produced a loss of $0.02, delivering no surprise. Over the last four quarters, the company has ...
Marchex(MCHX) - 2024 Q1 - Quarterly Report
2024-05-14 20:33
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number 000-50658 Marchex, Inc. (Exact name of Registrant as specified in its charter) Delaware 35-2194038 (State or oth ...
Marchex (MCHX) Reports Q1 Loss, Misses Revenue Estimates
Zacks Investment Research· 2024-05-07 22:56
Marchex (MCHX) came out with a quarterly loss of $0.02 per share in line with the Zacks Consensus Estimate. This compares to loss of $0.08 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this advertising and marketing company would post a loss of $0.02 per share when it actually produced break-even earnings, delivering a surprise of 100%.Over the last four quarters, the company has surpassed consensus EPS estimates three times.Marchex, which belon ...
Marchex(MCHX) - 2023 Q4 - Annual Report
2024-03-29 23:51
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number 000-50658 Marchex, Inc. (Exact name of Registrant as specified in its Charter) Delaware 35-2194038 (State or other jurisdiction of incorp ...