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 June 30, 2022 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 ...

Revenue Growth and Market Trends - Revenue grew by $191,000, or 1%, year-on-year, driven by an increase in conversational volumes despite challenges from COVID-19 variants and supply chain disruptions [81]. - The global conversational AI market is projected to grow at a compounded annual growth rate of 22%, from $6.8 billion in 2021 to $18.4 billion by 2026 [72]. - Revenue increased by 1% from $12.98 million for the three months ended March 31, 2021 to $13.17 million for the same period in 2022, driven by higher call volumes [95]. - The company expects revenues to remain stable or modestly increase in the near term, contingent on macroeconomic conditions and pandemic-related disruptions [111]. Operating Expenses and Financial Performance - Operating expenses are benefiting from advancements in technology infrastructure and cloud initiatives, allowing for innovation through scale [82]. - Service costs decreased by $487,000, or 9%, from $5.42 million in Q1 2021 to $4.93 million in Q1 2022, with service costs as a percentage of revenue dropping from 42% to 37% [99]. - Sales and marketing expenses decreased by 13% from $3.64 million in Q1 2021 to $3.17 million in Q1 2022, representing 28% and 24% of revenue, respectively [101]. - Product development expenses decreased by 35% from $5.32 million in Q1 2021 to $3.46 million in Q1 2022, with expenses as a percentage of revenue falling from 41% to 26% [102]. - General and administrative expenses remained flat at $2.6 million for both Q1 2021 and Q1 2022, maintaining a consistent 20% of revenue [103]. - Net loss improved from $5.3 million in Q1 2021 to $1.6 million in Q1 2022, primarily due to lower operating expenses totaling $3.5 million [107]. - Cash used in operating activities was $1.4 million for Q1 2022, compared to $5.6 million for Q1 2021, reflecting a significant reduction in cash outflow [109][110]. - Cash used in investing activities increased from $100,000 in Q1 2021 to $1.1 million in Q1 2022, primarily for technology infrastructure and capitalized software development costs [112]. Strategic Initiatives and Product Development - Marchex plans to expand its conversational intelligence technology and invest in AI, data science, and machine learning capabilities [74]. - The company aims to grow its customer base by integrating its products with existing communication providers, enhancing accessibility for businesses [75]. - Marchex is pursuing selective acquisition opportunities to enhance its strategic position and increase shareholder value [76]. - The company launched Marchex Conversation DNA in March 2022, enabling voice and text conversation decoding and scoring across its products, utilizing over one billion minutes of voice conversations [80]. - Marchex's solutions include features to block robocalls and spam calls, saving businesses time and expense [71]. Financial Reporting and Valuation - A 100% valuation allowance of $54 million was recorded against deferred tax assets as of March 31, 2022, indicating uncertainty regarding future realizability [106]. - The majority of the company's revenue is generated from core analytics and solutions services, primarily through a call analytics technology platform, with revenue recognized over time as services are performed [120][121]. - Revenue contracts typically include variable elements, such as the number of transactions, which significantly influence total revenue [120]. - Goodwill is tested annually for impairment, with potential adverse effects on financial results if impairment charges are recognized [131][132]. - The company primarily leases office facilities classified as operating leases, with lease payments recognized as expense on a straight-line basis over the lease term [137]. - The company utilizes the Black-Scholes option pricing model for stock-based compensation, which is subject to various assumptions that could materially affect future expenses [125][126]. - Accounts receivable balances are presented net of allowance for doubtful accounts, which is reviewed quarterly based on historical trends and current economic conditions [127]. - The company has not recognized any finance leases and has opted for short-term lease recognition exemptions for qualifying leases [138]. - The amortization periods for intangible assets from acquisitions range from one year to five years, reflecting the expected economic value realization [129]. - The company’s financial statements are subject to reviews by various tax authorities, but any required adjustments are not expected to be material [135].

Financial Data and Key Metrics Changes - Revenue for Q1 2022 was $13.2 million, an increase from $12.7 million in the same quarter last year, reflecting mid-single digit percentage growth when excluding certain pandemic-related revenue adjustments [28][25] - Adjusted EBITDA was positive $150,000, improving from the previous quarter, while GAAP net loss was $1.6 million or $0.04 per diluted share, compared to a net loss of $5.3 million or $0.12 per diluted share for Q1 2021 [33][33] - Adjusted non-GAAP loss was $0.01 per share for the quarter, compared to an adjusted non-GAAP loss of $0.08 per share for Q1 2021 [33] Business Line Data and Key Metrics Changes - The company saw sales traction with large customers and is onboarding new relationships, particularly in the home services vertical [9][29] - Service costs for Q1 were $4.9 million, showing leverage year-over-year due to technology infrastructure initiatives [30] - Sales and marketing costs were approximately $3 million, down from the previous year due to lower customer acquisition costs [32] Market Data and Key Metrics Changes - Conversation volumes were suppressed in Q1 2022, particularly in the automotive and auto services verticals, due to pandemic and geopolitical factors [21][21] - The company anticipates that as supply chain disruptions unwind, it will benefit from increased conversation volumes, particularly in the automotive sector [10][44] Company Strategy and Development Direction - The company is focused on enhancing customer experiences through conversational intelligence and plans to launch new sales engagement products and channel partnerships [19][36] - The integration with Twilio is expected to expand the reach of Marchex's conversational intelligence capabilities [12] - The company aims to leverage its data asset of over a billion conversational minutes to provide actionable insights for businesses [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the business's growth potential, citing new customer relationships and product innovations as key drivers [15][35] - The company expects to achieve sequential growth in Q2 2022 compared to Q1, despite ongoing macroeconomic challenges [34] - Management believes that the economic headwinds from the pandemic will eventually abate, providing a potential driver for growth [36] Other Important Information - The company received recognition from the Business Intelligence Group for its conversational intelligence and AI technology [14] - The company ended Q1 2022 with approximately $25 million in cash on hand [33] Q&A Session Summary Question: Are new prospects looking mainly for voice or voice messaging service? - Management indicated that there is strong interest in both voice and text messaging services, with ongoing discussions about expanding into other communication channels [40][41][42] Question: What verticals are improving or slowing? - Management noted that the automotive and automotive services verticals are significantly impacted by supply chain disruptions and inflationary pressures, but they expect improvements as these issues unwind [43][44]

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, 2021 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 | | --- | --- | | (Sta ...

Marchex, Inc. (NASDAQ:MCHX) Q4 2021 Earnings Conference Call March 2, 2022 5:00 PM ET Corporate Participants Trevor Caldwell - Senior Vice President, Strategic Initiatives and Investor Relations Michael Arends - Chief Financial Officer and Office of the CEO Russell Horowitz - Executive Chairman and Office of the CEO Conference Call Participants Darren Aftahi - ROTH Capital Partners Sharon Kiruba - Northland Capital Markets Operator Ladies and gentlemen, good afternoon and thank you for attending today's Mar ...

Marchex, Inc. (NASDAQ:MCHX) Q3 2021 Earnings Conference Call November 9, 20210 5:00 PM ET Company Participants Trevor Caldwell - Senior Vice President, Strategic Initiatives and Investor Relations Michael Arends - Co-Chief Executive Officer Russell Horowitz - Executive Chairman and Co-CEO Leila Kirske - Chief Financial Officer Conference Call Participants Austin Vetterick - ROTH Capital Partners Operator Hello and welcome to the Marchex???s Third Quarter Earnings Conference Call. My name is Charlie and I wi ...

Revenue and Financial Performance - The allowance for advertiser credits was $227,000 as of December 31, 2020, and decreased to $219,000 by September 30, 2021[38]. - The deferred revenue balance was $1.4 million as of December 31, 2020, and decreased to $1.3 million by September 30, 2021[38]. - Revenue recognized from contract liabilities for the three months ended September 30, 2021, was $176,000, compared to $166,000 for the same period in 2020[38]. - For the nine months ended September 30, 2021, revenue recognized from contract liabilities was $1.3 million, up from $974,000 in 2020[38]. - The majority of the Company's revenue is derived from the United States, accounting for 99% of total revenue for the three months ended September 30, 2021[44]. - There were no customers representing more than 10% of consolidated revenue for the three and nine months ended September 30, 2021[45]. - One customer represented 19% of consolidated accounts receivable as of September 30, 2021[46]. Cash and Expenses - As of September 30, 2021, the total cash and cash equivalents decreased to $27,781,000 from $33,851,000 as of December 31, 2020, representing a decline of approximately 18%[48]. - Stock-based compensation expense for the nine months ended September 30, 2021, was $2,007,000, down from $2,624,000 for the same period in 2020, indicating a reduction of about 23%[51]. - The total stock-based compensation for the three months ended September 30, 2021, was $608,000, down from $817,000 for the same period in 2020, reflecting a decrease of approximately 25%[51]. - The depreciation and amortization expense related to property and equipment for the nine months ended September 30, 2021 was approximately $965 thousand, down from $1.2 million in the same period of 2020[60]. - The company recognized an operating lease cost of $1,381 thousand for the nine months ended September 30, 2021[66]. Net Loss and Earnings Per Share - The basic net loss per share applicable to common stockholders for the nine months ended September 30, 2021, was $(0.70) compared to $(0.70) for the same period in 2020, showing no change year-over-year[57]. - The net loss from continuing operations for Class A common stockholders for the nine months ended September 30, 2021, was $(250,000), compared to $(3,571,000) for the same period in 2020[57]. - For the nine months ended September 30, 2021, the diluted net loss per share applicable to common stockholders was $(0.70) for Class A and Class B shares, compared to $(0.70) for the same period in 2020[58]. - The net loss from continuing operations for the nine months ended September 30, 2021 was $(2,355) thousand, compared to $(36,329) thousand for the same period in 2020[58]. Assets and Liabilities - The Company operated in a single segment focused on core analytics and solutions services for the nine months ended September 30, 2021[42]. - No significant long-lived assets were held by entities outside of the United States as of September 30, 2021[43]. - The balance of stock options at September 30, 2021, was 3,532,000, slightly up from 3,460,000 at December 31, 2020[53]. - The company had gross future operating lease payments of $3,890 thousand as of September 30, 2021[67]. - The total long-term operating lease liabilities as of September 30, 2021 amounted to $1,926 thousand[67]. - The weighted-average remaining lease term for operating leases was 2.1 years as of September 30, 2021[66]. Intangible Assets and Impairments - As of September 30, 2021, total identifiable intangible assets from acquisitions amounted to $5.488 million, down from $9.196 million as of December 31, 2020[78]. - The Company recorded a pre-tax non-cash impairment of $5.0 million in Q1 2020 related to customer relationships, technologies, non-compete agreements, and tradenames[77]. - The balance of goodwill remained unchanged at $17.6 million as of September 30, 2021[79]. - The Company recorded a 100% valuation allowance against deferred tax assets as of September 30, 2021, indicating uncertainty in realizing these assets[73]. Other Financial Activities - The Company secured $5.3 million in promissory notes under the CARES Act, with a remaining balance of $5.1 million as of December 31, 2020, and recognized a gain on extinguishment of $5.2 million in Q3 2021[83]. - The Company received approximately $135,000 and $434,000 in foreign wage subsidy funding during the three and nine months ended September 30, 2021, respectively[84]. - The Company sold certain assets for approximately $2.3 million in October 2020, which were classified as discontinued operations[86]. - The Company entered into an administrative support services agreement with the related party purchaser, generating support services fees of $2.2 million and $5.1 million for the three and nine months ended September 30, 2021, respectively[87]. - The Company has no known legal proceedings that are expected to have a material adverse effect on its financial condition[71]. - The Company performed annual impairment testing for goodwill on November 30, with no additional impairment loss determined after the initial $14.7 million loss in Q1 2020[80].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION ☐ 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) 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 June 30, 2021 OR Delaware 35-2194038 (State or other jurisdiction of ...

Marchex, Inc. (NASDAQ:MCHX) Q2 2021 Earnings Conference Call August 4, 2021 5:00 PM ET Company Participants Trevor Caldwell ??? Senior Vice President of Investor Relations and Strategic Initiatives Michael Arends ??? Chief Executive Officer Russell Horowitz ??? Executive Chairman Leila Kirske ??? Chief Financial Officer Conference Call Participants Austin Vetterick ??? ROTH Capital Partners Operator Good afternoon. Thank you for attending the Marchex???s Second Quarter 2021 Earnings Call. [Operator Instruct ...

Marchex, Inc. (NASDAQ:MCHX) Q1 2021 Earnings Conference Call May 13, 2021 5:00 PM ET Company Participants Trevor Caldwell - SVP IR Michael Arends - Co-CEO Russell Horowitz - Co-CEO Leila Kirske - CFO Conference Call Participants Operator Good afternoon. My name is Celine. And I will be your conference operator today. At this time, I would like to welcome everyone to the Marchex First Quarter 2021 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker ...