SEATTLE--(BUSINESS WIRE)--May 29, 2018--
Marchex,
Inc. (NASDAQ:MCHX), a leading provider of call analytics that drive,
measure, and convert callers into customers, today announced an update
to its financial guidance for the second quarter ending June 30, 2018.
The following forward-looking statements reflect Marchex's expectations
as of May 29, 2018. The Company expects revenue will range from $19.5 to
$21.0 million for the second quarter ending June 30, 2018 compared to
previous guidance of $21 million or more. In addition, the Company is
reiterating its previous second quarter guidance for income (loss) from
operations of ($2) million or better, Adjusted OIBA1 loss of
($1) million or better, and Adjusted EBITDA1 of breakeven or
better.
“While we continue to create meaningful customer opportunities for 2018,
particularly with our analytics products, media marketplace budget
allocation changes from a few of our customers have caused us to revise
our revenue outlook for the second quarter,” said Mike Arends, Chief
Financial Officer. “While the changes in budget allocations may improve
our second half of the year outlook, our focus remains on building a
strong pipeline of opportunities, particularly with our analytics
products, and making progress in our marketplace pipeline. These are not
yet at the scale where they can offset media marketplace budget shifts
and/or reductions. Despite these adjustments with media marketplace, we
continue to expect breakeven or better for Adjusted EBITDA results in
the second quarter and believe our efficiencies and disciplines there
will help support us in our cash flow initiatives in the second half of
the year as well.”
1Adjusted OIBA assumes estimated
stock-based compensation between $0.9 and $1.1 million and Adjusted
EBITDA includes estimated addbacks of $1 million related to depreciation
and amortization for the second quarter of 2018.
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. All of the information provided in this
release is as of May 29, 2018 and Marchex undertakes no duty to update
the information provided herein.
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 and EBITDA. This press release
includes previously issued guidance on estimated Adjusted OIBA and
EBITDA for the second quarter of 2018.
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 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
such as stock-based compensation. Adjusted
EBITDA represents income (loss) before interest, income
taxes, depreciation, amortization, and stock-based compensation. Marchex
believes that Adjusted EBITDA is another alternative measure of
liquidity to GAAP net cash provided by (used in) operating activities
that provides meaningful supplemental information regarding liquidity
and is used by Marchex's management to measure its ability to fund
operations and its financing obligations. Financial analysts and
investors may use Adjusted OIBA and EBITDA to help with comparative
financial evaluation to make informed investment decisions.
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180529006079/en/
Source: Marchex, Inc.
Marchex Investor Relations
Trevor Caldwell, 206-331-3600
ir@marchex.com
Or
MEDIA
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Marchex Corporate Communications
206-331-3434
marchex@edelman.com
