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Marchex Announces Fourth Quarter and Full Year 2020 Results

SEATTLE--(BUSINESS WIRE)--Mar. 2, 2021-- Marchex, Inc. (NASDAQ: MCHX), a leading conversational analytics and solutions company that connects the voice of the customer to your business, today announced its financial results for the fourth quarter and full year ended December 31, 2020.

Q4 and Full Year 2020 Financial Highlights1

  • GAAP revenue, was $12.7 million for the fourth quarter of 2020, compared to $13.4 million for the fourth quarter of 2019. GAAP revenue, was $51.2 million for 2020, compared to $54.5 million for 2019.
  • Core analytics and solutions revenue was $12.5 million for the fourth quarter of 2020, which included the benefit of recognizing $274,000 of revenues that were reserved at the end of the prior quarter given they did not meet recognition criteria under our revenue recognition policies. Excluding this amount, core analytics and solutions revenue for the third quarter of 2020 was $12.3 million, compared to $12.7 million for the fourth quarter of 2019. Core analytics and solutions revenue was $50.4 million for 2020, compared to $52.3 million for 2019.
  • Net loss including discontinued operations was $5.4 million for the fourth quarter of 2020 or $0.12 per diluted share, compared to a net loss of $0.4 million or $0.01 per diluted share for the fourth quarter of 2019. Net loss including discontinued operations was $38.4 million for 2020 or $0.83 per diluted share, compared to a net loss including discontinued operations of $4.0 million or $0.09 per diluted share for 2019.
  • Net loss from continuing operations was $5.6 million for the fourth quarter of 2020 or $0.13 per diluted share, compared to a net loss of $2.8 million or $0.06 per diluted share for the fourth quarter of 2019. Net loss from continuing operations was $43.0 million for 2020 or $0.93 per diluted share, compared to a net loss from continuing operations of $11.5 million or $0.25 per diluted share for 2019.

 

 

Q4 2019

 

Q4 2020

 

FY 2019

 

FY 2020

GAAP Revenue

 

$13.4 million

 

$12.7 million

 

$54.5 million

 

$51.2 million

Core Analytics and solutions revenue

 

$12.7 million

 

$12.5 million

 

$52.3 million

 

$50.4 million

Cash Balance (net of current debt obligations)

 

$41.7 million

 

$28.7 million

 

 

 

 

Non-GAAP Results1:

 

 

 

 

 

 

 

 

Adjusted EBITDA from continuing operations

 

$(1.4) million

 

$(3.2) million

 

$(3.5) million

 

$(15.0) million

  • Adjusted non-GAAP income (loss) per share2 from continuing operations for the fourth quarter of 2020 was ($0.06), compared to ($0.04) for the fourth quarter of 2019. Adjusted non-GAAP income (loss) per share2 from continuing operations for 2020 was ($0.28), compared to ($0.13) for 2019.
_______________

1

The Company sold its interest in the Local Leads Platform, Call Marketplace and other assets not related to core conversational analytics and sales engagement solutions. As a result, the financial results of these dispositions are presented as discontinued operations net of tax in our condensed consolidated statements of operations in accordance with GAAP, and are excluded from revenue and all other results unless otherwise noted

2

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.

Strategic Priorities Update

Grow Client Relationships and Accelerate Product Innovation. Marchex continues to add new voice and text customers across its core verticals. Marchex also recently launched Marchex Marketing Edge, a new solution that enables brand marketers and agencies to tie revenue-generating conversations back to the specific marketing campaigns that generated them. This new product captures conversational data across multiple communication channels, including calls, text, and chat - as well as web form completions - and uses AI-powered conversation intelligence to identify and classify the conversations that drive sales. Marchex Marketing Edge enables businesses to complete and enrich the picture of their digital marketing performance and power automated actions by automatically flowing conversational data into a rich and growing list of third party Martech, Adtech, CRM and chat systems, and makes it simple to create custom integrations.

In January 2021, Marchex Marketing Edge was named the best in its class and presented with the Gold Stevie® Award in the Marketing Solution – New Version category in the 14th annual Stevie Awards for Sales & Customer Service. The Stevie Awards for Sales & Customer Service are the world's top honors for customer service, contact center, business development, and sales professionals. More than 2,600 nominations from organizations in 48 nations of all sizes and virtually every industry were evaluated in this year's competition. Stevie comments noted that Marchex Marketing Edge is an innovative solution that enables marketers to make better data-driven decisions and significantly increase customer reach.

Completion of divestiture of certain assets, including its Local Leads platform and its Call Marketplace and associated revenues. In October 2020, Marchex completed the sale of its interest in the Local Leads Platform, Call Marketplace and other assets not related to core conversational analytics and sales engagement solutions.

Completion of Tender Offer. In October 2020, Marchex also completed its joint and equal tender offer with Edenbrook Capital, LLC for the purchase of 10 million shares of Class B common stock at $2.15 per share, of which the Company’s share of the repurchase totaled approximately $10.8 million for 5 million shares.

“In the fourth quarter of 2020, Marchex took important steps to concentrate the business on the transformational opportunity in conversational analytics and sales engagement solutions through divesting of non-core assets,” said Russell Horowitz, Executive Chairman and Co-CEO. “While we and our customers are still navigating the challenging circumstances created by the pandemic, during the fourth quarter and more recently, we have started to see benefits of a singularly focused company with accelerating new product releases, as well as adding new customer wins and upsells after managing through the difficult selling environment for much of 2020. Over the course of 2021, we will continue to execute on our strategy as a singularly focused conversational AI and sales engagement solutions company. We will continue to launch new products and partnerships designed to deliver and accelerate both our opportunity and long-term growth.”

Business Outlook

The following forward-looking statements reflect Marchex's expectations as of March 2, 2021.

“While we started to see some positive developments in the fourth quarter of 2020 in terms of sales pipeline and go forward opportunities, our outlook for the year remains highly fluid and there is a degree of uncertainty in the near term,” said Mike Arends, Co-CEO & Chief Financial Officer. “Based on this, for the first quarter of 2021 we are not providing revenue or adjusted operating income or adjusted EBITDA guidance.”

“As we look at 2021 overall and beyond, we continue to be encouraged by the interactions we are having with existing and potential new customers regarding expansion of existing relationships and adoption of new products. Assuming the current trajectory of these opportunities continue, and there is an unwinding of the business impact from the pandemic, we believe there is a path for us to return to double-digit growth in the course of 2021. Additionally, in 2021 we believe we can drive and achieve progressive and sequential growth in core analytics and solutions revenue, profitability, customer wins and product expansion. As we launch new products and they begin to contribute, we also continue to believe there is a potential path to reach break-even or better on an Adjusted EBITDA basis at some point in 2021,” said Arends.

Management will hold a conference call, starting at 5:00 p.m. ET on Tuesday, March 2, 2021 to discuss its fourth quarter and year ended December 31, 2020 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 understands the best customers are those who call your company - they convert faster, buy more, and churn less. Marchex provides solutions that help companies drive more calls, understand what happens on those calls, and convert more of those callers into customers. Our actionable intelligence strengthens the connection between companies and their customers, bridging the physical and digital world, to help brands maximize their marketing investments and operating efficiencies to acquire the best customers.

Please visit http://www.marchex.com, www.marchex.com/blog or @marchex on Twitter (Twitter.com/Marchex), 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. The consideration and purchase accounting are preliminary estimates at this time and are pending finalization of various items including potential working capital adjustments. All of the information provided in this release is as of March 2, 2021 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 OIBA, Adjusted EBITDA, and Adjusted non-GAAP income (loss) per share.

Adjusted OIBA from continuing operations represents income (loss) from operations, excluding (1) stock-based compensation expense, (2) amortization of intangible assets from acquisitions, (3) acquisition and disposition related costs (benefit), (4) impairment of intangibles assets and goodwill from acquisitions and (5) foreign government paycheck assistance subsidies. This measure, among other things, is one of the primary metrics by which Marchex evaluates the performance of its business. Adjusted OIBA is the basis on which Marchex's internal budgets are based and by which Marchex's management is currently evaluated. Marchex believes these measures are useful to investors because they represent Marchex's consolidated operating results, taking into account depreciation and other intangible amortization, which Marchex believes is an ongoing cost of doing business, but excluding the effects of certain other expenses as detailed above.

Adjusted EBITDA from continuing operations represents income (loss) from continuing operations before (1) interest, (2) income taxes, (3) depreciation, (4) stock-based compensation expense, (5) amortization of intangible assets from acquisitions, (6) acquisition and disposition related costs (benefit), (7) impairment of intangibles assets and goodwill from acquisitions, and (8) foreign government paycheck assistance subsidies. Marchex believes that Adjusted EBITDA is another alternative measure used by our management to understand and evaluate our core operating performance and trends, and that provides meaningful supplemental information regarding performance and evaluating liquidity to measure its ability to fund operations and its financing obligations. Financial analysts and investors may use Adjusted OIBA and Adjusted EBITDA to help with comparative financial evaluation to make informed investment decisions.

Adjusted non-GAAP income (loss) per share from continuing operations represents Adjusted non-GAAP income (loss) from continuing operations 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 (benefit), and (3) amortization of intangible assets from acquisitions, and (4) impairment of intangibles assets and goodwill from acquisitions, (5) interest income and other, net, (6) net income from discontinued operations, net of tax, and (7) estimated impact of income taxes. 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.

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

 

Twelve Months Ended

 

 

December 31,

 

December 31,

 

 

2019

 

2020

 

2019

 

2020

Revenue

 

$

13,448

 

 

$

12,691

 

 

$

54,489

 

 

$

51,218

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Service costs (1)

 

 

4,310

 

 

 

5,459

 

 

 

18,003

 

 

 

20,888

 

Sales and marketing (1)

 

 

3,745

 

 

 

3,693

 

 

 

13,729

 

 

 

16,656

 

Product development (1)

 

 

4,745

 

 

 

5,169

 

 

 

17,879

 

 

 

21,001

 

General and administrative (1)

 

 

3,474

 

 

 

3,015

 

 

 

13,022

 

 

 

12,796

 

Amortization of intangible assets from acquisitions

 

 

1,560

 

 

 

1,156

 

 

 

6,263

 

 

 

5,331

 

Acquisition and disposition related costs (benefit)

 

 

262

 

 

 

(71

)

 

 

(447

)

 

 

(1,043

)

Total operating expenses

 

 

18,096

 

 

 

18,421

 

 

 

68,449

 

 

 

75,629

 

Impairment of goodwill

 

 

 

 

 

 

 

 

 

 

 

(13,744

)

Impairment of intangible assets from acquisitions

 

 

 

 

 

 

 

 

 

 

 

(5,903

)

Loss from operations

 

 

(4,648

)

 

 

(5,730

)

 

 

(13,960

)

 

 

(44,058

)

Interest income (expense) and other, net

 

 

160

 

 

 

(16

)

 

 

752

 

 

 

123

 

Loss before provision for income taxes

 

 

(4,488

)

 

 

(5,746

)

 

 

(13,208

)

 

 

(43,935

)

Income tax expense (benefit)

 

 

(1,718

)

 

 

(99

)

 

 

(1,722

)

 

 

945

 

Loss from continuing operations

 

 

(2,770

)

 

 

(5,647

)

 

 

(11,486

)

 

 

(42,990

)

Income from discontinued operations, net of tax

 

 

2,356

 

 

 

248

 

 

 

7,444

 

 

 

4,544

 

Net loss applicable to common stockholders

 

$

(414

)

 

$

(5,399

)

 

$

(4,042

)

 

$

(38,446

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted net loss per Class A and Class B share applicable to common stockholders

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

(0.06

)

 

$

(0.13

)

 

 

(0.25

)

 

 

(0.93

)

Discontinued operations, net of tax

 

$

0.05

 

 

$

0.01

 

 

 

0.16

 

 

 

0.10

 

Basic and diluted net loss per Class A and Class B share applicable to common stockholders

 

$

(0.01

)

 

$

(0.12

)

 

$

(0.09

)

 

$

(0.83

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used to calculate basic net loss per share applicable to common stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

Class A

 

 

4,661

 

 

 

4,661

 

 

 

4,793

 

 

 

4,661

 

Class B

 

 

41,286

 

 

 

39,411

 

 

 

40,667

 

 

 

41,559

 

Shares used to calculate diluted net loss per share applicable to common stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

Class A

 

 

4,661

 

 

 

4,661

 

 

 

4,793

 

 

 

4,661

 

Class B

 

 

45,947

 

 

 

44,072

 

 

 

45,460

 

 

 

46,260

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes stock-based compensation allocated as follows:

 

 

 

 

 

 

 

 

 

 

 

 

Service costs

 

$

3

 

 

$

7

 

 

$

113

 

 

$

36

 

Sales and marketing

 

 

125

 

 

 

283

 

 

 

469

 

 

 

1,041

 

Product development

 

 

63

 

 

 

97

 

 

 

233

 

 

 

358

 

General and administrative

 

 

725

 

 

 

596

 

 

 

2,000

 

 

 

2,172

 

Total

 

$

916

 

 

$

983

 

 

$

2,815

 

 

$

3,607

 

MARCHEX, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

 

 

December 31,

 

December 31,

 

 

2019

 

2020

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

41,731

 

 

$

33,851

 

Accounts receivable, net

 

 

7,525

 

 

 

6,331

 

Prepaid expenses and other current assets

 

 

2,015

 

 

 

2,232

 

Current assets of discontinued operations

 

 

11,148

 

 

 

 

Total current assets

 

 

62,419

 

 

 

42,414

 

Property and equipment, net

 

 

2,995

 

 

 

2,747

 

Other assets, net

 

 

312

 

 

 

2,251

 

Right-of-use lease asset

 

 

5,801

 

 

 

3,568

 

Goodwill

 

 

32,330

 

 

 

18,502

 

Intangible assets from acquisitions, net

 

 

19,485

 

 

 

8,252

 

Long-term assets of discontinued operations

 

 

1,159

 

 

 

 

Total assets

 

$

124,501

 

 

$

77,734

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

618

 

 

$

2,424

 

Accrued expenses and other current liabilities

 

 

6,859

 

 

 

10,158

 

Deferred revenue and deposits

 

 

866

 

 

 

1,393

 

Lease liability current

 

 

1,500

 

 

 

1,806

 

Loan obligations, current

 

 

 

 

 

5,123

 

Current liabilities of discontinued operations

 

 

7,703

 

 

 

 

Total current liabilities

 

 

17,546

 

 

 

20,904

 

Deferred tax liabilities

 

 

981

 

 

 

1,162

 

Lease liability non-current

 

 

5,664

 

 

 

2,980

 

Other non-current liabilities

 

 

473

 

 

 

 

Total liabilities

 

 

24,664

 

 

 

25,046

 

Stockholders’ equity:

 

 

 

 

 

 

Class A common stock

 

 

49

 

 

 

49

 

Class B common stock

 

 

396

 

 

 

365

 

Additional paid-in capital

 

 

359,632

 

 

 

350,960

 

Accumulated deficit

 

 

(260,240

)

 

 

(298,686

)

Total stockholders’ equity

 

 

99,837

 

 

 

52,688

 

Total liabilities and stockholders’ equity

 

$

124,501

 

 

$

77,734

 

MARCHEX, INC. AND SUBSIDIARIES

(in thousands)

(unaudited)

 

Reconciliation of GAAP Loss from Operations to Adjusted Operating Income (Loss) Before Amortization (OIBA) from Continuing Operations and Adjusted EBITDA from Continuing Operations

 

 

 

Three Months Ended

December 31,

 

Twelve Months Ended

December 31,

 

 

2019

 

2020

 

2019

 

2020

Loss from operations

 

$

(4,648

)

 

$

(5,730

)

 

$

(13,960

)

 

$

(44,058

)

Stock-based compensation

 

 

916

 

 

 

983

 

 

 

2,815

 

 

 

3,607

 

Amortization of intangible assets from acquisitions

 

 

1,560

 

 

 

1,156

 

 

 

6,263

 

 

 

5,331

 

Acquisition and disposition related costs (benefit)

 

 

262

 

 

 

(71

)

 

 

(447

)

 

 

(1,043

)

Impairment of goodwill

 

 

 

 

 

 

 

 

 

 

 

13,744

 

Impairment of intangible assets from acquisitions

 

 

 

 

 

 

 

 

 

 

 

5,903

 

Foreign government paycheck assistance subsidies1

 

 

 

 

 

(46

)

 

 

 

 

 

(415

)

Adjusted OIBA from continuing operations

 

$

(1,910

)

 

$

(3,708

)

 

$

(5,329

)

 

$

(16,931

)

Depreciation and amortization

 

 

468

 

 

 

500

 

 

 

1,864

 

 

 

1,918

 

Adjusted EBITDA from continuing operations

 

$

(1,442

)

 

$

(3,208

)

 

$

(3,465

)

 

$

(15,013

)

1

Includes pandemic related wage relief subsidies, recognized as a reduction of wages during the period received.

Revenue Reconciliation

 

 

 

Three Months Ended

December 31,

 

Twelve Months Ended

December 31,

 

 

2019

 

2020

 

2019

 

2020

Core analytics and solutions revenue2

 

$

12,674

 

$

12,546

 

$

52,324

 

$

50,421

Other analytics3

 

 

774

 

 

 

145

 

 

 

2,165

 

 

 

797

 

Total Revenue

 

$

13,448

 

 

$

12,691

 

 

$

54,489

 

 

$

51,218

 

2

Core analytics and solutions revenue includes revenue from analytics and sales engagement solutions customers, including those that are purchasing or buying products derived from the company’s speech technology platform.

3

Includes revenue from tests, consulting services or other analytics revenues that may continue for a limited time but are not anticipated to continue in future periods.

MARCHEX, INC. AND SUBSIDIARIES

(in thousands, except per share amounts)

(unaudited)

 

Reconciliation of GAAP Net Loss per Share to Adjusted Non-GAAP Income (Loss) from Continuing Operations per Share

 

 

 

Three Months Ended

December 31,

 

Twelve Months Ended

December 31,

 

 

2019

 

2020

 

2019

 

2020

Adjusted Non-GAAP income (loss) per share

 

$

(0.04

)

 

$

(0.06

)

 

$

(0.13

)

 

$

(0.28

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share applicable to common stockholders - diluted (GAAP loss per share)

 

$

(0.01

)

 

$

(0.12

)

 

$

(0.09

)

 

$

(0.83

)

Shares used to calculate diluted net loss per share applicable to common stockholders

 

 

45,947

 

 

 

44,072

 

 

 

45,460

 

 

 

46,260

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss from continuing operations applicable to common stockholders

 

$

(414

)

 

$

(5,399

)

 

$

(4,042

)

 

$

(38,446

)

Stock-based compensation

 

 

916

 

 

 

983

 

 

 

2,815

 

 

 

3,607

 

Acquisition related costs (benefit)

 

 

262

 

 

 

(71

)

 

 

(447

)

 

 

(1,043

)

Amortization of intangible assets from acquisitions

 

 

1,560

 

 

 

1,156

 

 

 

6,263

 

 

 

5,331

 

Impairment of goodwill

 

 

 

 

 

 

 

 

 

 

 

13,744

 

Impairment of intangible assets from acquisitions

 

 

 

 

 

 

 

 

 

 

 

5,903

 

Interest income and other, net

 

 

(160

)

 

 

16

 

 

 

(752

)

 

 

(123

)

Income from discontinued operations, net of tax

 

 

(2,356

)

 

 

(248

)

 

 

(7,444

)

 

 

(4,544

)

Estimated impact of income taxes

 

 

(1,599

)

 

 

780

 

 

 

(2,101

)

 

 

2,555

 

Adjusted Non-GAAP loss from continuing operations

 

$

(1,791

)

 

$

(2,783

)

 

$

(5,708

)

 

$

(13,016

)

Adjusted Non-GAAP loss from continuing operations per share

 

$

(0.04

)

 

$

(0.06

)

 

$

(0.13

)

 

$

(0.28

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used to calculate diluted net loss per share applicable to common stockholders (GAAP) and Adjusted Non-GAAP loss from continuing operations per share

 

 

45,947

 

 

 

44,072

 

 

 

45,460

 

 

 

46,260

 

1

 

For the purpose of computing the number of diluted shares for Adjusted Non-GAAP income (loss) from continuing operations 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.

MARCHEX, INC. AND SUBSIDIARIES

(in thousands, except per share amounts)

(unaudited)

 

Reconciliation of GAAP Loss from Continuing Operations to Non-GAAP Loss from Continuing Operations excluding Impairment of Goodwill and Intangible Assets

 

 

 

Three Months Ended

December 31,

 

Twelve Months Ended

December 31,

 

 

2019

 

2020

 

2019

 

2020

Loss from continuing operations (GAAP)

 

$

(2,770

)

 

$

(5,647

)

 

$

(11,486

)

 

$

(42,990

)

Impairment of goodwill

 

 

 

 

 

 

 

 

 

 

 

13,744

 

Impairment of intangible assets from acquisitions

 

 

 

 

 

 

 

 

 

 

 

5,903

 

Loss from continuing operations excluding impairment of goodwill and intangible assets (Non-GAAP)

 

$

(2,770

)

 

$

(5,647

)

 

$

(11,486

)

 

$

(23,343

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from continuing operations applicable to common stockholders - diluted (GAAP loss per share)

 

$

(0.06

)

 

$

(0.13

)

 

$

(0.25

)

 

$

(0.93

)

Impairment of goodwill per diluted share

 

 

 

 

 

 

 

 

 

 

 

0.30

 

Impairment of intangible assets from acquisitions per diluted share

 

 

 

 

 

 

 

 

 

 

 

0.13

 

Loss from continuing operations excluding impairment of goodwill and intangible assets per diluted share (Non-GAAP)

 

$

(0.06

)

 

$

(0.13

)

 

$

(0.25

)

 

$

(0.50

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used to calculate diluted loss from continuing operations per share applicable to common stockholders (GAAP) and diluted loss from continuing operations excluding impairment of goodwill and intangible assets (Non-GAAP)

 

 

45,947

 

 

 

44,072

 

 

 

45,460

 

 

 

46,260

 

MARCHEX, INC. AND SUBSIDIARIES

(in thousands)

(unaudited)

 

Reconciliation of GAAP Loss from Operations to Adjusted OIBA from Continuing Operations and Adjusted EBITDA from Continuing Operations

 

 

 

Three Months Ended

 

Twelve

Months

Ended

 

 

3/31/2020

 

6/30/2020

 

9/30/2020

 

12/31/2020

 

12/31/2020

Revenue

 

$

12,008

 

 

$

12,716

 

 

$

13,803

 

 

$

12,691

 

 

$

51,218

 

Service costs

 

 

(4,828

)

 

 

(4,968

)

 

 

(5,633

)

 

 

(5,459

)

 

 

(20,888

)

Sales and marketing

 

 

(4,170

)

 

 

(4,828

)

 

 

(3,965

)

 

 

(3,693

)

 

 

(16,656

)

Product development

 

 

(5,358

)

 

 

(5,306

)

 

 

(5,168

)

 

 

(5,169

)

 

 

(21,001

)

General and administrative

 

 

(3,453

)

 

 

(2,845

)

 

 

(3,483

)

 

 

(3,015

)

 

 

(12,796

)

Amortization of intangible assets from acquisitions

 

 

(1,763

)

 

 

(1,206

)

 

 

(1,206

)

 

 

(1,156

)

 

 

(5,331

)

Acquisition and disposition related (costs) benefit

 

 

635

 

 

 

361

 

 

 

(24

)

 

 

71

 

 

 

1,043

 

Impairment of goodwill

 

 

(13,744

)

 

 

 

 

 

 

 

 

 

 

 

(13,744

)

Impairment of intangible assets from acquisitions

 

 

(5,903

)

 

 

 

 

 

 

 

 

 

 

 

(5,903

)

Loss from operations

 

 

(26,576

)

 

 

(6,076

)

 

 

(5,676

)

 

 

(5,730

)

 

 

(44,058

)

Stock-based compensation

 

 

962

 

 

 

844

 

 

 

818

 

 

 

983

 

 

 

3,607

 

Amortization of intangible assets from acquisitions

 

 

1,763

 

 

 

1,206

 

 

 

1,206

 

 

 

1,156

 

 

 

5,331

 

Acquisition and disposition related costs (benefit)

 

 

(635

)

 

 

(361

)

 

 

24

 

 

 

(71

)

 

 

(1,043

)

Impairment of goodwill

 

 

13,744

 

 

 

 

 

 

 

 

 

 

 

 

13,744

 

Impairment of intangible assets from acquisitions

 

 

5,903

 

 

 

 

 

 

 

 

 

 

 

 

5,903

 

Foreign government paycheck assistance subsidies1

 

 

 

 

 

(252

)

 

 

(117

)

 

 

(46

)

 

 

(415

)

Adjusted OIBA from continuing operations

 

 

(4,839

)

 

 

(4,639

)

 

 

(3,745

)

 

 

(3,708

)

 

 

(16,931

)

Depreciation and amortization

 

 

506

 

 

 

477

 

 

 

435

 

 

 

500

 

 

 

1,918

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA from continuing operations

 

$

(4,333

)

 

$

(4,162

)

 

$

(3,310

)

 

$

(3,208

)

 

$

(15,013

)

1

Includes pandemic related wage relief subsidies, recognized as a reduction of wages during the period received.

 

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

Source: Marchex, Inc.