Marchex Announces First Quarter 2017 Results
Q1 2017 Financial Highlights
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Revenue was $24.4 million for the first quarter of 2017, compared to
$36.0 million for the first quarter of 2016. -
Net loss was
$3.5 million for the first quarter of 2017 or$0.08 per diluted share. For the first quarter of 2016, net loss was$3.7 million or$0.09 per diluted share.
Q1 2016 | Q1 2017 | ||||
Revenue | $36.0 million | $24.4 million | |||
Non-GAAP Results1: | |||||
Enterprise Revenue2 | $27.4 million | $19.0 million | |||
Adjusted OIBA3 | ($1.7) million | ($2.2) million | |||
Adjusted EBITDA3 | ($0.8) million | ($1.4) million | |||
Cash Balance | $107 million | $103 million |
-
Adjusted non-GAAP earnings (loss) per share1 was
($0.03) for both the first quarter of 2016 and 2017. -
During the first quarter of 2017, YP contributed
$5.4 million in revenue, compared to$8.5 million in the first quarter of 2016.
1 |
Reconciliations of non-GAAP measures are included in the financial tables attached to this press release and we encourage investors to examine the reconciling adjustments between the GAAP and non-GAAP measures. |
|
2 |
Enterprise Revenue represents total revenue less revenue generated from our contracts with YP and other Archeo related transition activities. |
|
3 |
Includes reorganization costs of approximately $700,000 in Q1 2017. |
Strategic Priorities Update
-
Accelerate Product Innovation. Marchex Speech Analytics, a new
solution launched in
April 2017 , enables actionable insights for enterprise and mid-sized companies, helping them understand what is happening on inbound phone calls from consumers to their business. Uncovering the intelligence and insights of these consumer calls can empower companies to optimize media spend and sales operations, and enable them to drive more high quality calls to their business and create the opportunity to convert more of those callers into customers.Marchex Omnichannel Analytics Cloud, launched inFebruary 2017 , helps marketers connect customer conversions driven from all paid media channels – including search, display and video, social and sites – to phone calls made to a business. Marketers now have a complete view of which marketing activities are most successful to optimize overall marketing spend and return on investment (ROI) for industries that rely heavily on phone calls.
-
Expand Strategic Partnerships. Marchex’s
February 2017 partnership with Facebook provides marketers a deeper understanding of what happens on a phone call that stems from a Facebook ad. This partnership integrates across Facebook’s social analytics solution into the Marchex Omnichannel Analytics Cloud.
“Over the last few months, the
Business Outlook
The following forward-looking statements reflect
Financial Guidance for the Second Quarter ending June 30, 2017 |
||
Revenue | $22 million or more | |
Adjusted OIBA1 | a loss of $1 million to $2 million | |
Adjusted EBITDA1 | breakeven to a loss of $1 million |
Conference Call and Webcast Information
Management will hold a conference call, starting at
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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
Non-GAAP Financial Information:
To supplement
OIBA represents income (loss) from
operations excluding stock-based compensation expense. This measure,
among other things, is one of the primary metrics by which
Financial analysts and investors may use Adjusted OIBA and EBITDA and
Enterprise Revenue to help with comparative financial evaluation to make
informed investment decisions. Adjusted
non-GAAP earnings (loss) per share represents Adjusted
non-GAAP net income (loss) applicable to common stockholders divided by
GAAP diluted shares outstanding. Adjusted non-GAAP net income (loss)
applicable to common stockholders 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) disposition related costs, and (3)
interest and other income (expense). Financial analysts and investors
may use Adjusted non-GAAP earnings (loss) per share to analyze
MARCHEX, INC. AND SUBSIDIARIES | ||||||||
Condensed Consolidated Statements of Operations | ||||||||
(in thousands, except per share amounts) | ||||||||
(unaudited) | ||||||||
|
||||||||
Three Months Ended
March 31, |
||||||||
2016 | 2017 | |||||||
Revenue | $ | 35,985 | $ | 24,375 | ||||
Expenses: | ||||||||
Service costs (1) | 21,982 | 13,598 | ||||||
Sales and marketing (1) | 5,522 | 4,992 | ||||||
Product development (1) | 7,472 | 5,270 | ||||||
General and administrative (1) | 4,662 | 4,030 | ||||||
Disposition related costs | 4 | — | ||||||
Total operating expenses | 39,642 | 27,890 | ||||||
Loss from operations | (3,657 | ) | (3,515 | ) | ||||
Interest income (expense) and other, net | (7 | ) | 17 | |||||
Loss before provision for income taxes | (3,664 | ) | (3,498 | ) | ||||
Income tax expense | 13 | 12 | ||||||
Net loss applicable to common stockholders | $ | (3,677 | ) | $ | (3,510 | ) | ||
Basic and diluted net loss per Class A and Class B share applicable
to
common stockholders |
$ | (0.09 | ) | $ | (0.08 | ) | ||
Shares used to calculate basic net loss per share applicable to
common stockholders: |
||||||||
Class A | 5,233 | 5,056 | ||||||
Class B | 35,977 | 37,169 | ||||||
Shares used to calculate diluted net loss per share
applicable to common stockholders: |
||||||||
Class A | 5,233 | 5,056 | ||||||
Class B | 41,210 | 42,225 | ||||||
(1) Includes stock-based compensation allocated as follows: | ||||||||
Service costs | $ | 198 | $ | 125 | ||||
Sales and marketing | 439 | 406 | ||||||
Product development | 532 | 91 | ||||||
General and administrative | 797 | 735 | ||||||
Total | $ | 1,966 | $ | 1,357 | ||||
MARCHEX, INC. AND SUBSIDIARIES | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
(in thousands) | ||||||||
(unaudited) | ||||||||
December 31, | March 31, | |||||||
2016 | 2017 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 103,950 | $ | 103,072 | ||||
Accounts receivable, net | 18,922 | 16,740 | ||||||
Prepaid expenses and other current assets | 1,531 | 1,853 | ||||||
Refundable taxes | 98 | 87 | ||||||
Total current assets | 124,501 | 121,752 | ||||||
Property and equipment, net | 3,557 | 2,791 | ||||||
Other assets, net | 214 | 213 | ||||||
Total assets | $ | 128,272 | $ | 124,756 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 6,811 | $ | 5,951 | ||||
Accrued expenses and other current liabilities | 7,707 | 7,325 | ||||||
Deferred revenue | 349 | 355 | ||||||
Total current liabilities | 14,867 | 13,631 | ||||||
Other non-current liabilities | 134 | — | ||||||
Total liabilities | 15,001 | 13,631 | ||||||
Stockholders’ equity: | ||||||||
Class A common stock | 53 | 53 | ||||||
Class B common stock | 380 | 380 | ||||||
Additional paid-in capital | 360,422 | 361,824 | ||||||
Accumulated deficit | (247,584 | ) | (251,132 | ) | ||||
Total stockholders’ equity | 113,271 | 111,125 | ||||||
Total liabilities and stockholders’ equity | $ | 128,272 | $ | 124,756 | ||||
MARCHEX, INC. AND SUBSIDIARIES | ||||||||
(in thousands) | ||||||||
(unaudited) | ||||||||
Reconciliation of GAAP Loss from Operations to Operating Loss Before Amortization (OIBA) | ||||||||
and Adjusted Operating Loss Before Amortization (Adjusted OIBA) | ||||||||
Three Months Ended
March 31, |
||||||||
2016 | 2017 | |||||||
Loss from operations | $ | (3,657 | ) | $ | (3,515 | ) | ||
Stock-based compensation | 1,966 | 1,357 | ||||||
Operating loss before amortization (OIBA) | (1,691 | ) | (2,158 | ) | ||||
Disposition related costs | 4 | — | ||||||
Adjusted operating loss before amortization (Adjusted OIBA)1 | $ | (1,687 | ) | $ | (2,158 | ) | ||
Reconciliation from Net Cash used in Operating Activities to Adjusted EBITDA |
||||||||
Three Months Ended
March 31, |
||||||||
2016 | 2017 | |||||||
Net cash used in operating activities | $ | (2,267 | ) | $ | (878 | ) | ||
Changes in assets and liabilities | 1,432 | (524 | ) | |||||
Income tax expense | 13 | 12 | ||||||
Disposition related costs | 4 | — | ||||||
Interest expense and other, net | 7 | (17 | ) | |||||
Adjusted EBITDA1 |
$ | (811 | ) | $ | (1,407 | ) | ||
Net cash used in investing activities | $ | (475 | ) | $ | (6 | ) | ||
Net cash provided by financing activities | $ | 190 | $ | 6 | ||||
1 Includes reorganization costs of approximately $700,000 in Q1 2017. |
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Reconciliation from Revenue to Enterprise Revenue |
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Three Months Ended
March 31, |
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2016 | 2017 | ||||||||||
Revenue | $ | 35,985 | $ | 24,375 | |||||||
Less: YP Revenue | 8,519 | 5,402 | |||||||||
Less: Other | 21 | — | |||||||||
Enterprise Revenue2 | $ | 27,445 | $ | 18,973 | |||||||
2 | Enterprise Revenue represents total revenue less revenue generated from our contracts with YP and other Archeo related transition activities. |
MARCHEX, INC. AND SUBSIDIARIES | ||||||||
Reconciliation of GAAP Net Loss per Share to Adjusted Non-GAAP Loss per Share | ||||||||
(in thousands, except per share amounts) | ||||||||
(unaudited) | ||||||||
Three Months Ended
March 31, |
||||||||
2016 | 2017 | |||||||
Adjusted Non-GAAP loss per share | $ | (0.03 | ) | $ | (0.03 | ) | ||
Net loss per share applicable to common stockholders - diluted
(GAAP loss per share) |
$ | (0.09 | ) | $ | (0.08 | ) | ||
Shares used to calculate diluted net loss per share applicable to
common stockholders |
41,210 | 42,225 | ||||||
Net loss applicable to common stockholders | $ | (3,677 | ) | $ | (3,510 | ) | ||
Stock-based compensation | 1,966 | 1,357 | ||||||
Disposition related costs | 4 | — | ||||||
Interest (income) expense and other, net | 7 | (17 | ) | |||||
Estimated impact of income taxes | 348 | 714 | ||||||
Adjusted Non-GAAP loss | $ | (1,352 | ) | $ | (1,456 | ) | ||
Adjusted Non-GAAP loss per share | $ | (0.03 | ) | $ | (0.03 | ) | ||
Shares used to calculate diluted net loss per share applicable to
common stockholders (GAAP) and Adjusted Non-GAAP loss per share |
41,210 | 42,225 |
View source version on businesswire.com: http://www.businesswire.com/news/home/20170504006549/en/
Source:
Marchex Investor Relations
Trevor Caldwell, 206-331-3600
ir(at)marchex.com
or
MEDIA
INQUIRIES
Marchex Corporate Communications
206-331-3434,
pr(at)marchex.com