Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $11.7 million, an increase from $11.4 million in Q1 2025, driven by new sales and upsells despite some offsets due to migration activities to the new Marchex Engage platform [9] - Cash increased to $10.5 million from $10 million at the end of Q1 2025, with expectations for stable to favorable cash balances in Q3 2025 [10] - The company reported positive net income of approximately $100,000 for Q2 2025 [10] Business Line Data and Key Metrics Changes - The company launched the Marchex Engage platform, which is expected to drive future growth through new user interfaces and AI solutions [4][5] - The Engage platform integrates AI-driven conversation intelligence, focusing on vertical markets such as automotive, healthcare, and home services [5][6] Market Data and Key Metrics Changes - The company noted that new federal tariffs on imports have adversely impacted various industries, including automotive and auto services, creating increased uncertainty in the market [11] - The current macroeconomic environment has also introduced challenges, affecting customer behavior and revenue predictability [11] Company Strategy and Development Direction - Marchex is focused on expanding its market opportunities through partnerships with Fortune 500 companies and launching innovative products [4][6] - The company aims to leverage first-party data and AI insights to enhance customer engagement and drive measurable outcomes [6][7] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by migration activities and macroeconomic factors, which may delay achieving annual revenue and adjusted EBITDA goals for 2025 [11][12] - Despite these challenges, the leadership team remains optimistic about executing their strategic plan and believes they are well-positioned for future growth [13] Other Important Information - The company anticipates that both revenue and adjusted EBITDA will sequentially increase in Q3 2025 compared to Q2 2025, with adjusted EBITDA potentially increasing by more than 50% [10] - The migration to the new Engage platform is mostly completed, but it has short-term revenue impacts due to timing and product utilization [11] Q&A Session Summary Question: Did bookings improve sequentially in the second quarter? - Management confirmed that sales or ACV was sequentially higher [18] Question: Any comments on the pipeline? - Management highlighted the progress with the Engage platform and upcoming product launches, which are expected to drive growth [19][20] Question: How is the demand for your service use case versus sales? - Management noted increasing average revenue per sale associated with the Engage platform and expressed excitement about expanding channel opportunities [23][24]

Financial Data and Key Metrics Changes - Revenue less ancillary services for Q2 2025 was $127.5 million, representing a 25% FX neutral growth rate or 27.7% on a spot basis, exceeding guidance [32] - Adjusted gross profit increased to $78 million during the quarter, up 23% year over year, with an adjusted gross margin of 61.1% [34] - Adjusted EBITDA reached almost $17 million for the quarter, resulting in a 13% margin, expanding by 723 basis points year over year [35] Business Line Data and Key Metrics Changes - Transaction revenue saw an 18% year-over-year increase, with a 28% increase in transaction-related payment volume, driven by Certify [33] - Platform and other revenues increased by 84% year over year, primarily due to platform fees and contributions from Certify [34] - Certify contributed $12 million in Q2, adding approximately 12 points of growth [32] Market Data and Key Metrics Changes - Revenue from outside the US, Canada, Australia, and the UK is growing well above the company average, with significant traction in markets like Singapore and Spain [14] - In the EMEA region, major wins included partnerships with institutions such as Bocconi University and Universidad Autonoma de Guadalajara [15][20] - The travel segment is seeing strong early traction, with Certify's revenue growing above 35% year over year [26] Company Strategy and Development Direction - The company is focused on diversifying its revenue mix and expanding client relationships through high-value software contracts [7] - The evolution to launch student financial services as a broader SaaS education platform aims to provide greater revenue visibility and durability [7] - The company is committed to capturing all money flows using industry-tailored software solutions powered by AI [9] Management's Comments on Operating Environment and Future Outlook - Management noted that organizations are increasingly focused on efficiency and return on investment, which aligns with Flywire's offerings [5] - The company remains confident in the long-term value of international education despite current visa approval challenges [40] - Management anticipates a mid to high single-digit headwind to organic revenue growth due to visa declines in major markets [43] Other Important Information - The company repurchased approximately $5 million of its shares and expanded its revolving credit facility from $125 million to $300 million [39] - The company is investing in data infrastructure, AI, and automation to enhance productivity and scale [36] - Stock-based compensation expenses are expected to be in the 12% to 13% range for the year, with expectations to trend down as revenue grows [37] Q&A Session Summary Question: Insights on full-year guidance - Management indicated that the strong Q2 results were offset by expected U.S. weakness in the latter half of the year, maintaining a cautious outlook [49][50] Question: Growth profile over the next three to five years - Management expressed excitement about the diversified growth and the potential to double the business, emphasizing strong unit economics [58][60] Question: Trends in the UK business - Management highlighted strong performance in the UK, with significant opportunities for revenue growth through deeper integrations and new product offerings [82][84] Question: U.S. education growth outlook amidst visa challenges - Management noted that domestic growth is offsetting international softness, with strong demand for the student financial services product [92][95]