Marchex Announces First Quarter 2018 Results
Q1 2018 Financial Highlights
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Revenue was $21.9 million for the first quarter of 2018, compared to
$24.4 million for the first quarter of 2017. -
Net loss was
$0.9 million for the first quarter of 2018 or$0.02 per diluted share. For the first quarter of 2017, net loss was$3.5 million or$0.08 per diluted share.
Q1 2017 | Q1 2018 | ||||
Revenue | $24.4 million | $21.9 million | |||
Net cash provided by (used in) operating activities | ($0.9) million | $3.0 million | |||
Cash Balance | $103.1 million | $84.6 million | |||
Non-GAAP Results1: | |||||
Adjusted EBITDA | ($1.4) million | $0.3 million | |||
-
Adjusted non-GAAP income (loss) per share1 for the first
quarter of 2018 was
($0.00) , compared to($0.03) for the first quarter of 2017.
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. |
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Strategic Priorities Update
Grow New and Existing Enterprise Client Relationships. During the
first quarter,
Accelerate Product Innovation. In
“In the first quarter, we saw the investments we’ve made over the past
year in our technology and products create meaningful customer
opportunities for 2018,” said
Business Outlook
The following forward-looking statements reflect
Financial Guidance for the Second Quarter
ending
Revenue | $21 million or more | |
Income (loss) from operations | ($2) million or better | |
Adjusted OIBA1, 2 | loss of $1 million or better | |
Adjusted EBITDA1, 2 | breakeven or better | |
2 |
Second quarter GAAP income (loss) from operations is expected to be ($2) million or better, assuming stock-based compensation between $0.9 and $1.1 million for the quarter. In addition, second quarter Adjusted EBITDA includes estimated addbacks of $1 million related to depreciation and amortization. |
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Conference Call and Webcast Information
Management will hold a conference call, starting at
About
Please visit http://www.marchex.com, www.marchex.com/blog or @marchex
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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 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
In the event the press release contains links to third-party websites or
materials, the links are provided solely as a convenience to you.
Non-GAAP Financial Information:
To supplement Marchex’s consolidated financial statements presented in
accordance with GAAP and to provide clarity internally and externally,
Adjusted OIBA represents income
(loss) from operations excluding stock-based compensation expense. This
measure, among other things, is one of the primary metrics by which
Marchex’s management believes that investors should have access to, and
MARCHEX, INC. AND SUBSIDIARIES | ||||||||
Condensed Consolidated Statements of Operations | ||||||||
(in thousands, except per share amounts) | ||||||||
(unaudited) | ||||||||
Three Months Ended |
||||||||
2017 | 2018 | |||||||
Revenue | $ | 24,375 | $ | 21,896 | ||||
Expenses: | ||||||||
Service costs (1) | 13,598 | 12,823 | ||||||
Sales and marketing (1) | 4,992 | 3,610 | ||||||
Product development (1) | 5,270 | 3,648 | ||||||
General and administrative (1) | 4,030 | 2,970 | ||||||
Total operating expenses | 27,890 | 23,051 | ||||||
Loss from operations | (3,515 | ) | (1,155 | ) | ||||
Interest income and other, net | 17 | 240 | ||||||
Loss before provision for income taxes | (3,498 | ) | (915 | ) | ||||
Income tax expense | 12 | 11 | ||||||
Net loss applicable to common stockholders | $ | (3,510 | ) | $ | (926 | ) | ||
Basic and diluted net loss per Class A and Class B share applicable to common stockholders |
$ | (0.08 | ) | $ | (0.02 | ) | ||
Shares used to calculate basic net loss per share applicable to common stockholders: |
||||||||
Class A | 5,056 | 5,056 | ||||||
Class B | 37,169 | 38,039 | ||||||
Shares used to calculate diluted net loss per share applicable to common stockholders: |
||||||||
Class A | 5,056 | 5,056 | ||||||
Class B | 42,225 | 43,095 | ||||||
(1) Includes stock-based compensation allocated as follows: | ||||||||
Service costs | $ | 125 | $ | 128 | ||||
Sales and marketing | 406 | 214 | ||||||
Product development | 91 | 91 | ||||||
General and administrative | 735 | 518 | ||||||
Total | $ | 1,357 | $ | 951 | ||||
MARCHEX, INC. AND SUBSIDIARIES | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
(in thousands) | ||||||||
(unaudited) | ||||||||
December 31, | March 31, | |||||||
2017 | 2018 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 104,190 | $ | 84,562 | ||||
Accounts receivable, net | 14,860 | 14,887 | ||||||
Prepaid expenses and other current assets | 2,041 | 1,785 | ||||||
Total current assets | 121,091 | 101,234 | ||||||
Property and equipment, net | 2,405 | 2,635 | ||||||
Other assets, net | 326 | 534 | ||||||
Total assets | $ | 123,822 | $ | 104,403 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 4,928 | $ | 6,110 | ||||
Accrued expenses and other current liabilities | 5,585 | 6,084 | ||||||
Deferred revenue and deposits | 313 | 841 | ||||||
Dividends Payable | 21,907 | — | ||||||
Total current liabilities | 32,733 | 13,035 | ||||||
Other non-current liabilities | 1,090 | 1,128 | ||||||
Total liabilities | 33,823 | 14,163 | ||||||
Stockholders’ equity: | ||||||||
Class A common stock | 53 | 53 | ||||||
Class B common stock | 387 | 388 | ||||||
Additional paid-in capital | 343,268 | 344,245 | ||||||
Accumulated deficit | (253,709 | ) | (254,446 | ) | ||||
Total stockholders’ equity | 89,999 | 90,240 | ||||||
Total liabilities and stockholders’ equity | $ | 123,822 | $ | 104,403 | ||||
MARCHEX, INC. AND SUBSIDIARIES | ||||||||
(in thousands) | ||||||||
(unaudited) | ||||||||
Reconciliation of GAAP Loss from Operations |
||||||||
Three Months Ended |
||||||||
2017 | 2018 | |||||||
Loss from operations | $ | (3,515 | ) | $ | (1,155 | ) | ||
Stock-based compensation | 1,357 | 951 | ||||||
Adjusted OIBA1 | $ | (2,158 | ) | $ | (204 | ) | ||
Reconciliation from Net Cash provided by (used in) |
||||||||
Three Months Ended
March 31, |
||||||||
2017 | 2018 | |||||||
Net cash provided by (used in) operating activities | $ | (878 | ) | $ | 3,021 | |||
Changes in assets and liabilities | (524 | ) | (2,471 | ) | ||||
Income tax expense | 12 | 11 | ||||||
Interest income and other, net | (17 | ) | (240 | ) | ||||
Adjusted EBITDA1 | $ | (1,407 | ) | $ | 321 | |||
Net cash used in investing activities | $ | (6 | ) | $ | (769 | ) | ||
Net cash provided by (used in) financing activities |
$ | 6 | $ | (21,880 | ) | |||
1 |
Includes reorganization costs of approximately $700,000 in Q1 2017. | |
Reconciliation from Revenue to Enterprise Revenue |
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Three Months Ended |
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2017 | 2018 | ||||||
Revenue | $ | 24,375 | $ | 21,896 | |||
Less: YP or DexYP Revenue | 5,402 | 3,916 | |||||
Enterprise Revenue2 | $ | 18,973 | $ | 17,980 | |||
2 | Enterprise Revenue represents total revenue less revenue generated from contracts with YP, and for the 2018 period, total revenue less revenue generated from contracts with YP and Dex Media, Inc. (collectively “DexYP”). In 2017, Dex Media, Inc. acquired YP Holdings LLC, which is the parent company of YP. | |
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 |
||||||||
2017 | 2018 | |||||||
Adjusted Non-GAAP income (loss) per share | $ | (0.03 | ) | $ | (0.00 | ) | ||
Net loss per share applicable to common stockholders - diluted (GAAP loss per share) |
$ | (0.08 | ) | $ | (0.02 | ) | ||
Shares used to calculate diluted net loss per share applicable to common stockholders |
42,225 | 43,095 | ||||||
Net loss applicable to common stockholders | $ | (3,510 | ) | $ | (926 | ) | ||
Stock-based compensation | 1,357 | 951 | ||||||
Interest income and other, net | (17 | ) | (240 | ) | ||||
Estimated impact of income taxes | 714 | 23 | ||||||
Adjusted Non-GAAP loss | $ | (1,456 | ) | $ | (192 | ) | ||
Adjusted Non-GAAP loss per share | $ | (0.03 | ) | $ | (0.00 | ) | ||
Shares used to calculate diluted net loss per share applicable to common stockholders (GAAP) and Adjusted Non-GAAP loss per share1 |
42,225 | 43,095 | ||||||
1 | For the purpose of computing the number of diluted shares for Adjusted Non-GAAP loss per share, Marchex uses the accounting guidance that would be applicable for computing the number of diluted shares for GAAP net loss per share. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20180503006559/en/
Source:
Marchex
Investor Relations
Trevor Caldwell, 206-331-3600
ir@marchex.com
Or
MEDIA
INQUIRIES
Corporate Communications
206-331-3434
marchex@edelman.com