Marchex, Inc. (NASDAQ: MCHX), which harnesses the power of AI
and conversational intelligence to drive operational excellence and
revenue acceleration, today announced its financial results for the
second quarter ended June 30, 2024.
Q2 2024 Financial
Highlights
- GAAP revenue was $12.1 million for the second quarter of 2024,
compared to $12.5 million for the second quarter of 2023.
- Net loss was $0.8 million for the second quarter of 2024 or
$0.02 per diluted share, compared to a net loss of $2.7 million or
$0.06 per diluted share for the second quarter of 2023.
Q2 2023
Q2 2024
GAAP Revenue
$ 12.5 million
$ 12.1 million
Non-GAAP Results:
Adjusted EBITDA
$ (1.0) million
$ 0.3 million
- Adjusted non-GAAP loss per share for the second quarter of 2024
was ($0.01) compared to ($0.03) for the second quarter of
2023.
Recent Business
Highlights:
- New Customer Traction and Existing Customer Expansion.
During the quarter, the company made progress in adding
relationships in the Auto and Auto Services verticals as well as in
expanding existing relationships in the Home Services vertical. The
company continues to make progress expanding its pipeline of
opportunities across multiple verticals.
- Conversation Volumes. Overall conversation volumes in
the second quarter were up somewhat from first quarter of 2024
levels.
- Product Innovation. Marchex recently announced that it
has won two additional industry awards: The AI Breakthrough Award
for "Best Text Generative AI Solution" and the APPEALIE SaaS
Customer Success award. The company continues to be recognized for
its innovation with its Call Summaries and Sentiment Suite offering
and its commitment to customer success.
“Our business is making significant progress across the key
initiatives that we believe will enable Marchex to become an
industry leading prescriptive analytics company," said Edwin
Miller, CEO. “From the strides we are making with our OneStack
initiative to the continued development of our sales pipeline, we
are putting the pieces in place to harness our industry leading
vertical market data and accelerate the business. We believe that
we are on target with our margin and profitability goals for the
year and that we are setting a strong foundation for future
growth."
Business Outlook
The following forward-looking statements reflect Marchex's
expectations as of August 8, 2024.
For the third quarter ending September 30, 2024:
- Revenue is anticipated to increase to be in the range of $12.6
million or more.
- Adjusted EBITDA is anticipated to be in the range of or better
than second quarter 2024 results.
“We are upgrading our technical foundation to accelerate future
AI-powered product innovations while delivering against our targets
to improve the financial outlook for the business. Additionally,
based on current progress, we believe we are in a strong position
to see sequential growth in the third quarter, deliver greater
overall operating leverage in the business and meet or exceed our
target for gross margin improvement for the year,” said Miller.
Management will hold a conference call, starting at 5:00 p.m. ET
on Thursday, August 8, 2024, to discuss its second quarter 2024
financial results and other company updates. Access to the live
webcast of the conference call will be available online from the
Investors section of Marchex’s website at www.marchex.com. An
archived version of the webcast will also be available at the same
location two hours after completion of the call.
About Marchex
Marchex harnesses the power of AI and conversational
intelligence to provide actionable insights aligned with
prescriptive vertical market data analytics, driving operational
excellence and revenue acceleration. Marchex enables executive,
sales, and marketing teams to optimize customer journey experiences
across communication channels. Through our prescriptive analytics
solutions, we enable the alignment of enterprise strategy,
empowering businesses to increase revenue through informed
decision-making and strategic execution. Marchex provides
conversational intelligence AI-powered solutions for market-leading
companies in leading B2B2C vertical markets, including several of
the world’s most innovative and successful brands.
Please visit http://www.marchex.com, www.marchex.com/blog or
@marchex on X (formally known as Twitter), where Marchex discloses
material information from time to time about the company, its
financial information, and its business.
Forward-Looking
Statements:
This press release contains forward-looking statements that
involve substantial risks and uncertainties. All statements, other
than statements of historical facts, included in this press release
regarding our strategy, future operations, future financial
position, future revenues, other financial guidance, acquisitions,
dispositions, projected costs, prospects, plans and objectives of
management are forward-looking statements. We may not actually
achieve the plans, intentions, or expectations disclosed in our
forward-looking statements and you should not place undue reliance
on our forward-looking statements. Actual results or events could
differ materially from the plans, intentions and expectations
disclosed in the forward-looking statements we make. There are a
number of important factors that could cause Marchex's actual
results to differ materially from those indicated by such
forward-looking statements including but not limited to product
demand, order cancellations and delays, competition and general
economic conditions. These factors are described in greater detail
in the "Risk Factors" section of our most recent periodic report
and registration statement filed with the SEC. All of the
information provided in this release is as of August 8, 2024, and
Marchex undertakes no duty to update the information provided
herein.
In the event the press release contains links to third party
websites or materials, the links are provided solely as a
convenience to you. Marchex is not responsible for the content of
linked third-party sites or materials and does not make any
representations regarding the content or accuracy thereof.
Non-GAAP Financial
Information:
To supplement Marchex's consolidated financial statements
presented in accordance with GAAP and to provide clarity internally
and externally, Marchex uses certain non-GAAP measures of financial
performance and liquidity, including Adjusted EBITDA, Adjusted
OIBA, and Adjusted non-GAAP income (loss) per share. Financial
analysts and investors may use Adjusted EBITDA and Adjusted OIBA to
help with comparative financial evaluation to make informed
investment decisions. Financial analysts and investors may use
Adjusted non-GAAP income (loss) per share to analyze Marchex's
financial performance since these groups have historically used EPS
related measures, along with other measures, to estimate the value
of a company, to make informed investment decisions, and to
evaluate a company's operating performance compared to that of
other companies in its industry.
Adjusted EBITDA represents net
income (loss) before (1) interest, (2) income taxes, (3)
amortization of intangible assets from acquisitions, (4)
depreciation and amortization, (5) stock-based compensation
expense, and (6) acquisition and disposition-related costs.
Adjusted EBITDA is an alternative measure used by our management to
understand and evaluate our core operating performance and trends,
and management believes it provides meaningful supplemental
information regarding the company's liquidity and ability to fund
its operations and financing obligations.
Adjusted OIBA represents Adjusted
EBITDA adjusted for depreciation and amortization. This measure,
among other things, is another metric by which Marchex has
evaluated the performance of its business, to include being the
basis on which Marchex's internal budgets have been based and by
which Marchex's management has been evaluated. This measure
represents Marchex's consolidated operating results, taking into
account depreciation and other intangible amortization, but
excluding the effects of certain other expenses removed in arriving
at Adjusted EBITDA, as detailed above.
Adjusted non-GAAP income (loss) per
share represents Adjusted non-GAAP income (loss) divided by
GAAP diluted shares outstanding. Adjusted non-GAAP income (loss)
generally captures those items on the statement of operations that
have been, or ultimately will be, settled in cash exclusive of
certain items that are not indicative of Marchex’s recurring core
operating results and represents net income (loss) applicable to
common stockholders plus the net of tax effects of: (1) stock-based
compensation expense, (2) acquisition and disposition related
costs, (3) amortization of intangible assets from acquisitions, and
(4) interest (income) expense and other, net.
Marchex's management believes that investors should have access
to, and Marchex is obligated to provide, the same set of tools that
management uses in analyzing the company's results. These non-GAAP
measures should be considered in addition to results prepared in
accordance with GAAP, and should not be considered in isolation, as
a substitute for, or superior to, GAAP results. Marchex’s non-GAAP
financial measures may be defined differently from time to time and
may be defined differently than similar titled terms used by other
companies, and accordingly, care should be exercised in
understanding how Marchex defines its non-GAAP financial measures
in this release. Marchex endeavors to compensate for the
limitations of the non-GAAP measures presented by providing the
comparable GAAP measure with equal or greater prominence, GAAP
financial statements, and detailed descriptions of the reconciling
items and adjustments, including quantifying such items, to derive
the non-GAAP measure.
MARCHEX, INC. AND
SUBSIDIARIES
Condensed Consolidated
Statements of Operations
(in thousands, except per
share amounts)
(unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2024
2023
2024
Revenue
$
12,522
$
12,074
$
24,738
$
23,646
Expenses:
Service costs (1)
5,418
4,152
10,842
8,566
Sales and marketing (1)
2,631
2,742
6,601
5,529
Product development (1)
4,096
3,223
8,260
6,468
General and administrative (1)
2,546
2,528
5,163
4,817
Amortization of intangible assets from
acquisitions
531
151
1,062
301
Acquisition and disposition related
costs
(1
)
—
12
—
Total operating expenses
15,221
12,796
31,940
25,681
Loss from operations
(2,699
)
(722
)
(7,202
)
(2,035
)
Interest income (expense) and other,
net
(31
)
(31
)
26
(109
)
Loss before provision for income taxes
(2,730
)
(753
)
(7,176
)
(2,144
)
Income tax expense
14
3
44
62
Net loss applicable to common
stockholders
$
(2,744
)
$
(756
)
$
(7,220
)
$
(2,206
)
Basic and diluted net loss per Class A and
Class B share applicable to common stockholders
$
(0.06
)
$
(0.02
)
$
(0.17
)
$
(0.05
)
Shares used to calculate basic net loss
per share applicable to common stockholders:
Class A
4,661
4,661
4,661
4,661
Class B
37,840
38,403
37,837
38,398
Shares used to calculate diluted net loss
per share applicable to common stockholders:
Class A
4,661
4,661
4,661
4,661
Class B
42,501
43,064
42,498
43,059
(1) Includes stock-based compensation
allocated as follows:
Service costs
$
(45
)
$
3
$
—
$
6
Sales and marketing
228
88
491
176
Product development
47
14
133
22
General and administrative
471
333
876
666
Total
$
701
$
438
$
1,500
$
870
MARCHEX, INC. AND
SUBSIDIARIES
Condensed Consolidated Balance
Sheets
(in thousands)
(unaudited)
December 31,
June 30,
2023
2024
Assets
Current assets:
Cash and cash equivalents
$
14,607
$
11,977
Accounts receivable, net
7,394
7,636
Prepaid expenses and other current
assets
1,805
2,874
Total current assets
23,806
22,487
Property and equipment, net
2,398
1,861
Other assets, net
1,482
1,900
Right-of-use lease asset
1,631
1,397
Goodwill
17,558
17,558
Intangible assets from acquisitions,
net
602
301
Total assets
$
47,477
$
45,504
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
1,533
$
1,921
Accrued benefits and payroll
3,294
2,138
Other accrued expenses and current
liabilities
3,217
3,453
Deferred revenue and deposits
1,214
1,470
Lease liability current
462
486
Total current liabilities
9,720
9,468
Deferred tax liabilities
249
278
Finance lease, non-current
421
256
Lease liability, non-current
1,217
967
Total liabilities
11,607
10,969
Stockholders’ equity:
Class A common stock
49
49
Class B common stock
386
389
Additional paid-in capital
356,666
357,534
Accumulated deficit
(321,231
)
(323,437
)
Total stockholders’ equity
35,870
34,535
Total liabilities and stockholders’
equity
$
47,477
$
45,504
MARCHEX, INC. AND
SUBSIDIARIES
(in thousands)
(unaudited)
Reconciliation of GAAP Net
Loss to Adjusted EBITDA and Adjusted Operating Income (Loss) Before
Amortization (OIBA)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2024
2023
2024
Net loss applicable to common
stockholders
$
(2,744
)
$
(756
)
$
(7,220
)
$
(2,206
)
Interest (income) expense and other,
net
31
31
(26
)
109
Income tax expense
14
3
44
62
Amortization of intangible assets from
acquisitions
531
151
1,062
301
Depreciation and amortization
422
385
780
708
Stock-based compensation
701
438
1,500
870
Acquisition and disposition-related
costs
(1
)
—
12
—
Adjusted EBITDA
$
(1,046
)
$
252
$
(3,848
)
$
(156
)
Depreciation and amortization
422
385
780
708
Adjusted OIBA
$
(1,468
)
$
(133
)
$
(4,628
)
$
(864
)
MARCHEX, INC. AND
SUBSIDIARIES
(in thousands)
(unaudited)
Reconciliation of GAAP Net
Loss per Share to Adjusted Non-GAAP Loss1
Three Months Ended June
30,
Six Months Ended June
30,
2023
2024
2023
2024
Net loss applicable to common
stockholders, diluted
$
(0.06
)
$
(0.02
)
$
(0.17
)
$
(0.05
)
Stock-based compensation
0.02
0.01
0.03
0.02
Acquisition and disposition-related
costs
-
-
-
-
Amortization of intangible assets from
acquisitions
0.01
-
0.03
0.01
Interest (income) expense and other,
net
-
-
-
-
Adjusted non-GAAP loss per
share
$
(0.03
)
$
(0.01
)
$
(0.11
)
$
(0.02
)
Shares used to calculate diluted net loss
per share applicable to common stockholders (GAAP) and Adjusted
Non-GAAP loss per share
42,501
43,064
42,498
43,059
1
For the purpose of computing the number of
diluted shares for Adjusted non-GAAP income (loss) per share,
Marchex uses the accounting guidance that would be applicable for
computing the number of diluted shares for GAAP net income (loss)
per share.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240808360045/en/
Trevor Caldwell Marchex Investor Relations Telephone:
206.331.3600 Email: ir@marchex.com Or MEDIA INQUIRIES
Marchex Corporate Communications Telephone: 206.331.3434 Email:
pr(at)marchex.com
Marchex (NASDAQ:MCHX)
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から 8 2023 まで 8 2024