Marchex(US:MCHX)2025-08-12 22:00Financial 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]