Marchex(US:MCHX)2025-03-07 01:01Financial 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]