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]
Marchex(MCHX) - 2022 Q1 - Earnings Call Transcript