Marchex(US:MCHX)2019-11-11 01:38Financial Data and Key Metrics Changes - For Q3 2019, the company reported revenues of $24.8 million, showing year-over-year growth from both analytics and marketplace products [25] - Core analytics revenue was $13.5 million, representing significant year-over-year growth and comprising more than 50% of total revenue [26] - Adjusted operating income before amortization for Q3 was $611,000, and adjusted EBITDA was $1.1 million [35] - The net loss applicable to common stockholders was $1.2 million, or $0.03 per diluted share, compared to a net loss of $457,000, or $0.01 per diluted share, for the same period in 2018 [35][36] - The company ended Q3 with approximately $52 million in cash on hand [36] Business Line Data and Key Metrics Changes - The analytics segment saw meaningful year-over-year growth, particularly in the automotive vertical, which is expected to continue benefiting from trials and early integrations [27][48] - The marketplace revenue grew year-over-year, driven by budget increases from large customers and contributions from new customers [29] - The Sales Rescue product, part of the new Sales Edge suite, received favorable early interest and is expected to enhance the product pipeline [28][14] Market Data and Key Metrics Changes - The automotive vertical showed sequential growth and year-over-year growth, with opportunities identified at both the OEM and dealer levels [48] - Other verticals such as home services and hospitality also saw progress in the pipeline during the quarter [49] Company Strategy and Development Direction - The company is evolving from a call analytics provider to a leader in conversational analytics and solutions, focusing on AI-driven technologies to meet customer needs [7][21] - The launch of the Sales Edge product suite aims to provide tools and automation for businesses to act on high-value opportunities [11][56] - The company plans to continue investing in AI-driven solutions to enhance customer experiences and drive sales [16][40] Management's Comments on Operating Environment and Future Outlook - Management noted that customers are beginning to understand the value of AI-driven capabilities, which can improve sales processes and outcomes [21] - The company anticipates continued growth in analytics revenue for Q4, despite seasonal declines in call volumes [37][38] - The outlook for Q4 includes a forecast of $26 million or more in revenue, with expectations for year-over-year growth in the marketplace product [37][41] Other Important Information - The company has made significant progress in launching new products and infrastructure, positioning itself for long-term growth [34][43] - The Clean Call technology is a core part of the analytics offering and is expected to drive innovation and performance [53] Q&A Session Summary Question: How has the growth from the auto vertical been, especially on a sequential basis? - The auto vertical saw both sequential and year-over-year growth, with fruitful opportunities identified for future growth [48] Question: How have the acquisitions performed? - Acquisitions have shown mixed results, with one experiencing a revenue decline and another a modest uptick [51] Question: What revenue contribution is expected from the Clean Call solution this fiscal year? - Clean Call is a core part of the analytics offering but specific revenue contributions are not broken out [53] Question: What is the product pipeline for the rest of the year and next year? - The focus is on launching the Sales Edge suite, with Sales Rescue being the first product, which is expected to expand the addressable market [56] Question: What is the current headcount and hiring plan for the next six months? - The company has around 300 total FTEs and plans to grow the sales and account management teams as revenue streams progress [59]