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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2019	Nov. 05, 2019
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Trading Symbol	MCHX
Entity Registrant Name	MARCHEX INC
Entity Central Index Key	0001224133
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Title of 12(b) Security	Class B Common Stock
Security Exchange Name	NASDAQ
Entity Shell Company	false
Entity File Number	000-50658
Entity Tax Identification Number	35-2194038
Entity Address, Address Line One	520 Pike Street
Entity Address, Address Line Two	Suite 2000
Entity Address, City or Town	Seattle
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98101
City Area Code	206
Local Phone Number	331-3300
Document Quarterly Report	true
Document Transition Report	false
Entity Incorporation, State or Country Code	DE
Class A
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		4,660,927
Class B
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		38,433,473

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 52,467	$ 45,230
Accounts receivable, net	14,100	16,198
Prepaid expenses and other current assets	2,428	2,657
Total current assets	68,995	64,085
Property and equipment, net	3,205	2,921
Right-of-use lease asset	6,146
Other assets, net	275	917
Goodwill	24,503	24,442
Intangible assets from acquisitions, net	15,993	20,697
Total assets	119,117	113,062
Current liabilities:
Accounts payable	5,611	5,968
Accrued expenses and other current liabilities	6,265	5,807
Current portion of acquisition-related liabilities	844	1,215
Deferred revenue and deposits	1,902	1,782
Lease liability current	1,506
Total current liabilities	16,128	14,772
Other non-current liabilities	30	1,287
Deferred tax liabilities	1,537	1,531
Lease liability non-current	6,034
Non-current portion of acquisition-related liabilities		446
Total liabilities	23,729	18,036
Commitments and contingencies
Stockholders’ equity:
Additional paid-in capital	354,781	350,801
Accumulated deficit	(259,826)	(256,198)
Total stockholders’ equity	95,388	95,026
Total liabilities and stockholders’ equity	119,117	113,062
Class A
Stockholders’ equity:
Common stock	49	53
Class B
Stockholders’ equity:
Common stock	$ 384	$ 370

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenue	$ 24,794	$ 20,006	$ 77,541	$ 62,120
Expenses:
Service costs	$ 12,770	$ 10,877	$ 40,951	$ 35,084
Type of Cost, Good or Service [Extensible List]	us-gaap:ServiceMember	us-gaap:ServiceMember	us-gaap:ServiceMember	us-gaap:ServiceMember
Sales and marketing	$ 3,971	$ 3,330	$ 12,172	$ 10,275
Product development	5,135	3,861	14,708	11,382
General and administrative	3,130	2,570	9,939	8,083
Amortization of intangible assets from acquisitions	1,568		4,704
Acquisition-related costs (benefit)	(432)	110	(710)	110
Total operating expenses	26,142	20,748	81,764	64,934
Loss from operations	(1,348)	(742)	(4,223)	(2,814)
Interest income and other, net	189	296	592	805
Loss before provision for income taxes	(1,159)	(446)	(3,631)	(2,009)
Income tax expense (benefit)	56	11	(3)	32
Net loss applicable to common stockholders	$ (1,215)	$ (457)	$ (3,628)	$ (2,041)
Basic and diluted net loss per Class A and Class B share applicable to common stockholders	$ (0.03)	$ (0.01)	$ (0.08)	$ (0.05)
Class A
Expenses:
Net loss applicable to common stockholders	$ (124)	$ (56)	$ (387)	$ (244)
Shares used to calculate basic net loss per share applicable to common stockholders:
Shares used to calculate basic net loss per share applicable to common stockholders	4,661	5,056	4,838	5,056
Shares used to calculate diluted net loss per share applicable to common stockholders:
Shares used to calculate diluted net loss per share applicable to common stockholders	4,661	5,056	4,838	5,056
Class B
Expenses:
Net loss applicable to common stockholders	$ (1,091)	$ (401)	$ (3,241)	$ (1,797)
Shares used to calculate basic net loss per share applicable to common stockholders:
Shares used to calculate basic net loss per share applicable to common stockholders	40,984	36,127	40,459	37,243
Shares used to calculate diluted net loss per share applicable to common stockholders:
Shares used to calculate diluted net loss per share applicable to common stockholders	45,645	41,183	45,297	42,299

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Class A	Class B	Class A common stock Class A	Class A common stock Class B	Treasury stock	Additional paid-in capital	Accumulated deficit
Beginning Balance at Dec. 31, 2017	$ 89,999			$ 53	$ 387		$ 343,268	$ (253,709)
Beginning Balance (in shares) at Dec. 31, 2017				5,056,000	38,736,000
Issuance of common stock upon exercise of options, issuance and vesting of restricted stock and under employee stock purchase plan, net	27				$ 1		26
Issuance of common stock from exercise of options, issuance and vesting of restricted stock and under employee stock purchase plan, net (in shares)					36,000
Stock compensation from options and restricted stock, net of forfeitures	951						951
Cumulative effect of a change in accounting principle related to revenue recognition \| ASC 606	189							189
Net loss	(926)							(926)
Ending Balance at Mar. 31, 2018	90,240			$ 53	$ 388		344,245	(254,446)
Ending Balance (in shares) at Mar. 31, 2018				5,056,000	38,772,000
Beginning Balance at Dec. 31, 2017	89,999			$ 53	$ 387		343,268	(253,709)
Beginning Balance (in shares) at Dec. 31, 2017				5,056,000	38,736,000
Repurchase of treasury stock			$ 0
Repurchase of treasury stock (in shares)			0
Ending Balance at Sep. 30, 2018	84,907			$ 53	$ 368		340,047	(255,561)
Ending Balance (in shares) at Sep. 30, 2018				5,056,000	36,798,000
Beginning Balance at Mar. 31, 2018	90,240			$ 53	$ 388		344,245	(254,446)
Beginning Balance (in shares) at Mar. 31, 2018				5,056,000	38,772,000
Issuance of common stock upon exercise of options, issuance and vesting of restricted stock and under employee stock purchase plan, net	722				$ 3		719
Issuance of common stock from exercise of options, issuance and vesting of restricted stock and under employee stock purchase plan, net (in shares)					287,000
Repurchase of treasury stock	(23)					$ (23)
Repurchase of treasury stock (in shares)						(2,334,000)
Retirement of treasury stock	(5,650)				$ (23)	$ 23	(5,650)
Retirement of treasury stock (in shares)					(2,334,000)	2,334,000
Net loss	(658)							(658)
Ending Balance at Jun. 30, 2018	84,631			$ 53	$ 368		339,314	(255,104)
Ending Balance (in shares) at Jun. 30, 2018				5,056,000	36,725,000
Issuance of common stock upon exercise of options, issuance and vesting of restricted stock and under employee stock purchase plan, net	733				$ 73		733
Net loss	(457)							(457)
Ending Balance at Sep. 30, 2018	84,907			$ 53	$ 368		340,047	(255,561)
Ending Balance (in shares) at Sep. 30, 2018				5,056,000	36,798,000
Beginning Balance at Dec. 31, 2018	95,026			$ 53	$ 370		350,801	(256,198)
Beginning Balance (in shares) at Dec. 31, 2018		5,056,000	36,965,000	5,056,000	36,965,000
Issuance of common stock upon exercise of options, issuance and vesting of restricted stock and under employee stock purchase plan, net	194				$ 1	$ (1)	194
Issuance of common stock from exercise of options, issuance and vesting of restricted stock and under employee stock purchase plan, net (in shares)					129,000	(90,000)
Stock compensation from options and restricted stock, net of forfeitures	545						545
Net loss	(1,299)							(1,299)
Ending Balance at Mar. 31, 2019	94,466			$ 53	$ 371	$ (1)	351,540	(257,497)
Ending Balance (in shares) at Mar. 31, 2019				5,056,000	37,094,000
Ending Balance, share at Mar. 31, 2019						(90,000)
Beginning Balance at Dec. 31, 2018	95,026			$ 53	$ 370		350,801	(256,198)
Beginning Balance (in shares) at Dec. 31, 2018		5,056,000	36,965,000	5,056,000	36,965,000
Repurchase of treasury stock			$ (900)
Repurchase of treasury stock (in shares)			(90,000)
Ending Balance at Sep. 30, 2019	95,388			$ 49	$ 384		354,781	(259,826)
Ending Balance (in shares) at Sep. 30, 2019		4,661,000	38,427,000	4,661,000	38,427,000
Beginning Balance at Mar. 31, 2019	94,466			$ 53	$ 371	$ (1)	351,540	(257,497)
Beginning Balance (in shares) at Mar. 31, 2019				5,056,000	37,094,000
Issuance of common stock upon exercise of options, issuance and vesting of restricted stock and under employee stock purchase plan, net	1,551				$ 9		1,542
Issuance of common stock from exercise of options, issuance and vesting of restricted stock and under employee stock purchase plan, net (in shares)					928,000
Conversion of Class A common stock to Class B common stock				$ (4)	$ 4
Conversion of Class A common stock to Class B common stock (in shares)				(395,000)	395,000
Stock compensation from options and restricted stock, net of forfeitures	782						782
Retirement of treasury stock					$ (1)	$ 1
Retirement of treasury stock (in shares)					(90,000)	90,000
Net loss	(1,114)							(1,114)
Ending Balance at Jun. 30, 2019	95,685			$ 49	$ 383		353,864	(258,611)
Ending Balance (in shares) at Jun. 30, 2019				4,661,000	38,327,000
Issuance of common stock upon exercise of options, issuance and vesting of restricted stock and under employee stock purchase plan, net	94				$ 1		93
Issuance of common stock from exercise of options, issuance and vesting of restricted stock and under employee stock purchase plan, net (in shares)					100,000
Stock compensation from options and restricted stock, net of forfeitures	824						824
Net loss	(1,215)							(1,215)
Ending Balance at Sep. 30, 2019	$ 95,388			$ 49	$ 384		$ 354,781	$ (259,826)
Ending Balance (in shares) at Sep. 30, 2019		4,661,000	38,427,000	4,661,000	38,427,000

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Operating Activities:
Net loss	$ (3,628)	$ (2,041)
Adjustments to reconcile net loss to net cash provided by operating activities:
Amortization and depreciation	6,126	1,360
Allowance for doubtful accounts and advertiser credits	191	335
Acquisition-related costs (benefit)	(818)
Stock-based compensation	2,150	2,335
Deferred income taxes	6
Change in certain assets and liabilities:
Accounts receivable, net	1,895	879
Refundable taxes	243
Prepaid expenses, other current assets and other assets	472	(268)
Accounts payable	(299)	401
Accrued expenses and other current liabilities	475	207
Deferred revenue and deposits	120	853
Other non-current liabilities	(90)	1
Net cash provided by operating activities	6,843	4,062
Investing Activities:
Purchases of property and equipment	(1,478)	(1,580)
Cash received in connection with acquisitions	95
Purchases of intangible assets and other assets	(64)	(576)
Net cash used in investing activities	(1,447)	(2,156)
Financing Activities:
Repurchases of Class B common stock		(5,673)
Proceeds from exercises of stock options, issuance and vesting of restricted stock and employee stock purchase plan, net	1,841	93
Common stock cash dividends paid		(21,911)
Net cash provided by (used in) financing activities	1,841	(27,491)
Net increase (decrease) in cash and cash equivalents	7,237	(25,585)
Cash and cash equivalents at beginning of period	45,230	104,190
Cash and cash equivalents at end of period	52,467	78,605
Supplemental disclosure of cash flow information:
Cash paid for operating leases	$ 1,268	$ 1,009

Significant Accounting Policies

9 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

Significant Accounting Policies

(2) Significant Accounting Policies

The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These judgments are difficult as matters that are inherently uncertain directly impact their valuation and accounting. Actual results may vary from management’s estimates and assumptions.

Except for the changes below, the Company has consistently applied the accounting policies to all periods presented in these condensed consolidated financial statements.

The Financial Accounting Standards Board (“FASB”) ASC Topic 842, Leases, (ASC 842) is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the second option, the transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date. The entity must also recast its comparative period financial statements and provide the disclosures required by the new standard for the comparative periods. The new standard was effective for the Company on January 1, 2019. The Company adopted the new standard on January 1, 2019 and used the effective date as its date of initial application. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019. The new standard provides a number of optional practical expedients in transition. The Company elected the ‘package of practical expedients’, which permits it not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs.

The primary impact upon adoption of the standard relates to the recognition of new right-of-use (“ROU”) assets and lease liabilities on the Company’s balance sheet for its office and operating leases and providing significant new disclosures about its leasing activities. On adoption, the Company recognized additional operating lease liabilities of approximately $8.7 million based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases and ROU assets of approximately $7.4 million.

The new standard also provides practical expedients for an entity’s ongoing accounting. The Company elected the short-term lease recognition exemption for all leases that qualify. This means, for those leases that qualify, the Company did not recognize ROU assets or lease liabilities, and this included not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. The Company also elected the practical expedient to not separate lease and non-lease components for all of its leases.

Recent Accounting Pronouncement(s) Not Yet Effective

In August 2018, the FASB issued Accounting Standards Update No. 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40) – Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract (ASU 2018-15), an ASU which requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to be capitalized. The ASU is effective for reporting periods beginning after December 15, 2019, with early adoption permitted. The Company does not expect adoption of ASU 2018-15 to have a material impact on its consolidated financial statements.

In August 2018, the FASB issued Accounting Standards Update No. 2018-13, Fair Value Measurement (Topic 820) - Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13), an ASU which modifies the disclosure requirements on fair value measurements in ASC 820. The ASU is effective for reporting periods beginning after December 15, 2019, with early adoption permitted. The Company does not expect adoption of ASU 2018-13 to have a material impact on its consolidated financial statements.

In January 2017, the FASB issued Accounting Standards Update No 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (ASU 2017-04). ASU 2017-04 simplifies the subsequent measurement of goodwill by eliminating “Step 2” from the goodwill impairment test. ASU 2017-04 is effective for public companies’ annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect adoption of ASU 2017-04 to have a material impact on its consolidated financial statements.

In June 2016, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments (ASU 2016-13), an ASU amending the impairment model for most financial assets and certain other instruments. The ASU is effective for reporting periods beginning after December 15, 2019, with early adoption permitted after December 15, 2018. The ASU must be adopted using a modified-retrospective approach. In November 2018, the FASB issued Accounting Standards Update No. 2018-19, Codification Improvements (Topic 326), Financial Instruments - Credit Losses (ASU 2018-19), an ASU intended to improve the Codification or correct its unintended application. The ASU is effective upon the adoption of the amendments in Accounting Standards Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which is effective for reporting periods beginning after December 15, 2019, with early adoption permitted after December 15, 2018. In addition, in May 2019, the FASB issued Accounting Standards Update No. 2019-05, Financial Instruments — Credit Losses (Topic 326), Targeted Transition Relief, (ASU 2019-05)), an ASU which provides ASU 2016-13 transition relief by providing entities with an alternative to irrevocably elect the fair value option for eligible financial assets measured at amortized cost upon adoption of the credit losses standard. To be eligible for the transition election, the existing financial asset must otherwise be both within the scope of the new credit losses standard and eligible for the applying the fair value option in ASC 825-10. The election must be applied on an instrument-by-instrument basis and is not available for either available-for-sale or held-to-maturity debt securities. The ASU is effective upon the adoption of the amendments in Accounting Standards Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The Company does not expect adoption of ASU 2019-05, ASU 2018-19 and ASU 2016-13 to have a material impact on its consolidated financial statements.

Revenue Recognition

9 Months Ended

Sep. 30, 2019

Revenue From Contract With Customer [Abstract]

Revenue Recognition

(3) Revenue Recognition

The Company generates the majority of its revenues from advertisers for its performance based advertising services, which include the use of its call analytics technology and pay-for-call advertising products and services. The Company’s revenue also consists of payments from its reseller partners for use of its local leads platform and marketing services, which they offer to their small business customers. Customers typically receive the benefit of the Company’s services as they are performed and substantially all the Company’s revenue is recognized over time as the services are performed.

The Company adopted FASB ASC Topic 606, Revenue from Contracts with Customers, (ASC 606) on January 1, 2018 using the modified retrospective approach for all contracts not completed as of the date of initial application, referred to as open contracts. Therefore, the comparative information has not been adjusted and continues to be reported under ASC 605. Under ASC 606, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration we expect to receive in exchange for those goods or services. The Company measures revenue based on the consideration specified in the customer arrangement, and revenue is recognized when the performance obligations in the customer arrangement are satisfied. A performance obligation is a promise in a contract to transfer a distinct service or product to the customer. The transaction price of a contract is allocated to each distinct performance obligation and recognized as revenue when or as the customer receives the benefit of the performance obligation.

The primary impact upon adoption of the standard relates to the deferral (i.e. capitalization) of incremental contract acquisition costs which are recorded as other non-current assets in the balance sheet and the recognition (i.e. amortization) of them in sales and marketing expenses in the statements of operations over the term of the initial contract and anticipated renewal contracts to which the costs relate. The Company recognized a $189,000 decrease to accumulated deficit as of January 1, 2018 for the cumulative impact of adoption of the amended guidance associated with the incremental contract acquisition costs on open contracts that were capitalized. The impact of the adoption of ASC 606 on net loss applicable to common stockholders for the year ended December 31, 2018 and on the unaudited consolidated balance sheet at December 31, 2018 was not significant.

The Company’s call analytics technology platform provides data and insights that can measure the performance of mobile, online and offline advertising for advertisers and small business resellers. The Company generates revenue from the Company’s call analytics technology platform when advertisers pay the Company a fee for each call/text or call/text related data element they receive from calls or texts including call-based ads the Company distributes through its sources of call distribution or for each phone number tracked based on a pre-negotiated rate. Revenue is recognized as services are provided over time, which is generally measured by the delivery of each call/text or call/text related data element or each phone number tracked.

The Company’s call marketplace offers advertisers and advertising service providers’ ad placements across the Company’s distribution network. Advertisers or advertising service providers are charged on a pay-per-call or cost-per-action basis. The Company generates revenue upon delivery of qualified and reported phone calls to advertisers or advertising service providers’ listings. These advertisers and advertising service providers pay the Company a designated transaction fee for each qualified phone call, which occurs when a user makes a phone call, clicks, or completes a specified action on any of their advertisement listings after it has been placed by the Company or by the Company’s distribution partners. The Company also generates revenue from cost-per-action services, which occurs when a user makes a phone call from the Company’s advertiser’s listing or is redirected from one of the Company’s web sites or a third-party web site in the Company’s distribution network to an advertiser web site and completes the specified action. Each qualified phone call or specified action on a listing represents a completed transaction. Revenue is recognized as services are provided upon the delivery of a qualified phone call or completed action. The Company’s distribution network is primarily comprised of third party mobile and online search engines and applications, mobile carriers, directories, destination sites, shopping engines, Internet domains or web sites, other targeted Web-based content, and offline sources. The Company enters into agreements with these third-party distribution partners to provide distribution for pay-for-call advertisement listings, which contain call tracking numbers and/or URL strings. The Company generally pays distribution partners based on a percentage of revenue or a fixed amount per phone call or other actions on these listings. The Company acts as the principal with the advertiser for revenue call transactions, and is responsible for the fulfillment of services. The Company recognizes revenue for these fees under the gross revenue recognition method.

The Company’s local leads platform allows reseller partners to sell call advertising, search marketing, and other lead generation products through their existing sales channels to small business advertisers. The Company generates revenue from reseller partners utilizing the Company’s local leads platform and is paid account fees and/or agency fees for the Company’s products in the form of a percentage of the cost of every call or click delivered to advertisers. Revenue is recognized over time as services are provided. The reseller partners engage the advertisers and are the principal for the transaction, and the Company, in certain instances, is only financially liable to the publishers in the Company’s capacity as a collection agency for the amount collected from the advertisers. The Company recognizes revenue for these fees under the net revenue recognition method. In limited arrangements resellers pay the Company a fee for fulfilling an advertiser’s campaign in its distribution network and the Company acts as the principal and recognizes revenue for these fees under the gross revenue recognition method.

For the three and nine months ended September 30, 2018, revenues disaggregated by service type were $18.4 million and $56.9 million for performance based advertising services, respectively, and $1.6 million and $5.2 million for local leads services, respectively. For the three and nine months ended September 30, 2019, revenues disaggregated by service type were $24.8 million and $77.5 million for performance based advertising services, respectively, and $1.0 million and $3.3 million for local leads services, respectively.

The majority of the Company’s customers are invoiced on a monthly basis following the month of the delivery of services and are required to make payments under standard credit terms. The Company establishes an allowance for advertiser credits, which is included in accrued expense and other current liabilities in the balance sheet as of September 30, 2019, using its best estimate of the amount of expected future reductions in advertisers’ payment obligations related to delivered services based on analysis of historical credits. Customer payments received in advance of revenue recognition are contract liabilities and are recorded as deferred revenue. During the three and nine months ended September 30, 2019, revenue recognized that was included in the contract liabilities balance at the beginning of the period was $367,000 and $1.2 million.

The majority of the Company’s total revenue is derived from contracts that include consideration that is variable in nature. The variable elements of these contracts primarily include the number of transactions (for example, the number qualified phone calls). For contracts with an effective term greater than one year, the Company applies the standard’s practical expedient that permits the exclusion of disclosure of the value of unsatisfied performance obligations for these contracts as the Company’s right to consideration corresponds directly to the value provided to the customer for services completed to date and all future variable consideration is allocated to wholly unsatisfied performance obligations. A term for purposes of these contracts has been estimated at 24 months. In addition, the Company applies the standard’s optional exemption to disclose information about performance obligations for contracts that have original expected terms of one year or less.

For arrangements that include multiple performance obligations, the transaction price from the arrangement is allocated to each respective performance obligation based on its relative standalone selling price and recognized when revenue recognition criteria for each performance obligation are met. The standalone selling price for each performance obligation is established based on the sales price at which the Company would sell a promised good or service separately to a customer or the estimated standalone selling price.

In certain cases, the Company records revenue based on available and reported preliminary information from third parties. Collection on the related receivables may vary from reported information based upon third-party refinement of the estimated and reported amounts owed that occurs subsequent to period ends.

The Company’s incremental direct costs of obtaining a contract, which consist primarily of sales commissions, are generally deferred and amortized to sales and marketing expense over the estimated life of the relevant customer relationship of approximately 24 months and are subject to being monitored every period to reflect any significant change in assumptions. In addition, the deferred contract cost asset is assessed for impairment on a periodic basis. The Company’s contract acquisition costs are included in other assets, net in the balance sheet. The Company is applying the standard’s practical expedient permitting expensing of costs to obtain a contract when the expected amortization period is one year or less, which typically results in expensing commissions paid to acquire certain contracts. As of September 30, 2019, the Company had $248,000 of net deferred contract costs and the amortization associated with these costs was $74,000 and $281,000 for the three and nine months ended September 30, 2019, respectively.

Stock-based Compensation Plans

9 Months Ended

Sep. 30, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-based Compensation Plans

(4) Stock-based Compensation Plans

The Company grants stock-based awards, including stock options, restricted stock awards, and restricted stock units. The Company measures stock-based compensation cost at the grant date based on the fair value of the award and recognizes it as expense over the vesting or service period, as applicable, of the stock-based award using the straight-line method. The Company accounts for forfeitures as they occur.

Stock-based compensation expense was included in the following operating expense categories as follows (in thousands):

	Nine Months Ended September 30,				Three Months Ended September 30,
	2018		2019		2018		2019
Service costs	$	338	$	131	$	108	$	36
Sales and marketing		411		529		125		180
Product development		276		215		94		72
General and administrative		1,310		1,275		375		535
Total stock-based compensation	$	2,335	$	2,150	$	702	$	823

The Company uses the Black-Scholes option pricing model to estimate the per share fair value of stock option grants with time-based vesting. The Black-Scholes model relies on a number of key assumptions to calculate estimated fair values. For the three and nine months ended September 30, 2018 and September 30, 2019 the expected life of each award granted was determined based on historical experience with similar awards, giving consideration to contractual terms, anticipated exercise patterns, vesting schedules and expirations. Expected volatility is based on historical volatility levels of the Company’s Class B common stock and the expected volatility of companies in similar industries that have similar vesting and contractual terms. The risk-free interest rate is based on the implied yield currently available on U.S. Treasury issues with terms approximately equal to the expected life of the option. For the nine months ended September 30, 2018, the Company used an expected dividend yield for those grants prior to the record date of the Company’s common stock cash dividend payment in March 2018.

The following weighted average assumptions were used in determining the fair value of time-vested stock option grants for the periods presented:

	Nine Months Ended September 30,		Three Months Ended September 30,
	2018	2019	2018	2019
Expected life (in years)	4.0-6.25	4.0-6.25	4.0-6.25	4.0-6.25
Risk-free interest rate	2.54%-2.93%	1.57%-2.22%	2.86%-2.93%	1.57%-1.59%
Expected volatility	42%-53%	39%-50%	42%-49%	40%-50%
Expected dividend yield	0%-3.57%	0%	0%	0%

Stock option activity during the nine months ended September 30, 2019 is summarized as follows:

	Shares (in thousands)			Weighted average exercise price		Weighted average remaining contractual term (in years)
Balance at December 31, 2018		5,511		$	4.98		5.53
Options granted		865			4.48
Options forfeited		(240	)		3.27
Options expired		(961	)		6.36
Options exercised		(487	)		3.70
Balance at September 30, 2019		4,688		$	4.82		5.86

Restricted stock awards and restricted stock units are generally measured at fair value on the date of grant based on the number of awards granted and the quoted price of the Company’s common stock. Restricted stock units entitle the holder to receive one share of the Company’s Class B common stock upon satisfaction of certain service conditions.

Restricted stock awards and restricted stock unit activity during the nine months ended September 30, 2019 is summarized as follows:

	Shares/ Units (in thousands)			Weighted average grant date fair value
Unvested balance at December 31, 2018		1,264		$	3.28
Granted		544			4.71
Vested		(355	)		3.70
Forfeited		(112	)		3.85
Unvested balance at September 30, 2019		1,341		$	3.70

Net Income (Loss) Per Share

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

Net Income (Loss) Per Share

(5) Net Income (Loss) Per Share

The Company computes net income (loss) per share of Class A and Class B common stock using the two class method. Under the provisions of the two class method, basic net income (loss) per share is computed by dividing net income (loss) applicable to common stockholders by the weighted average number of common shares outstanding during the year. Diluted net income (loss) per share is computed by dividing net income (loss) applicable to common stockholders by the weighted average number of common and dilutive common equivalent shares outstanding during the period. The computation of the diluted net income (loss) per share of Class B common stock assumes the conversion of Class A common stock to Class B common stock, while the diluted net income (loss) per share of Class A common stock does not assume the conversion of those shares.

In accordance with the two class method, the undistributed earnings (losses) for each year are allocated based on the contractual participation rights of the Class A and Class B common shares and the restricted shares as if the earnings for the year had been distributed. Considering the terms of the Company’s charter which provides that, if and when dividends are declared on the Company’s common stock in accordance with Delaware General Corporation Law, equivalent dividends shall be paid with respect to the shares of Class A common stock and Class B common stock and that both classes of common stock have identical dividend rights and would share equally in the Company’s net assets in the event of liquidation, the Company has allocated undistributed earnings (losses) on a proportionate basis.

Instruments granted in unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents, whether paid or unpaid, are participating securities prior to vesting. As such, the Company’s restricted stock awards are considered participating securities for purposes of calculating earnings per share.

The following tables present the computation of basic net loss per share applicable to common stockholders for the periods ended (in thousands, except per share amounts):

	Nine months ended September 30,
	2018						2019
	Class A			Class B			Class A			Class B
Basic net loss per share:
Numerator:
Net loss applicable to common stockholders	$	(244	)	$	(1,797	)	$	(387	)	$	(3,241	)
Denominator:
Weighted average number of shares outstanding used to calculate basic net loss per share		5,056			37,243			4,838			40,459
Basic net loss per share applicable to common stockholders	$	(0.05	)	$	(0.05	)	$	(0.08	)	$	(0.08	)

	Three months ended September 30,
	2018						2019
	Class A			Class B			Class A			Class B
Basic net loss per share:
Numerator:
Net loss applicable to common stockholders	$	(56	)	$	(401	)	$	(124	)	$	(1,091	)
Denominator:
Weighted average number of shares outstanding used to calculate basic net loss per share		5,056			36,127			4,661			40,984
Basic net loss per share applicable to common stockholders	$	(0.01	)	$	(0.01	)	$	(0.03	)	$	(0.03	)

The following tables present the computation of diluted net loss per share applicable to common stockholders for the periods ended (in thousands, except per share amounts):

	Nine months ended September 30,
	2018						2019
	Class A			Class B			Class A			Class B
Diluted net loss per share:
Numerator:
Net loss applicable to common stockholders	$	(244	)	$	(1,797	)	$	(387	)	$	(3,241	)
Reallocation of net loss for Class A shares as a result of conversion of Class A to Class B shares		—			(244	)		—			(387	)
Diluted net loss applicable to common stockholders	$	(244	)	$	(2,041	)	$	(387	)	$	(3,628	)
Denominator:
Weighted average number of shares outstanding used to calculate basic net loss per share		5,056			37,243			4,838			40,459
Conversion of Class A to Class B common shares outstanding		—			5,056			—			4,838
Weighted average number of shares outstanding used to calculate diluted net loss per share		5,056			42,299			4,838			45,297
Diluted net loss per share applicable to common stockholders	$	(0.05	)	$	(0.05	)	$	(0.08	)	$	(0.08	)

	Three months ended September 30,
	2018						2019
	Class A			Class B			Class A			Class B
Diluted net loss per share
Numerator:
Net loss applicable to common stockholders	$	(56	)	$	(401	)	$	(124	)	$	(1,091	)
Reallocation of net loss for Class A shares as a result of conversion of Class A to Class B shares		—			(56	)		—			(124	)
Diluted net loss applicable to common stockholders	$	(56	)	$	(457	)	$	(124	)	$	(1,215	)
Denominator:
Weighted average number of shares outstanding used to calculate basic net loss per share		5,056			36,127			4,661			40,984
Conversion of Class A to Class B common shares outstanding		—			5,056			—			4,661
Weighted average number of shares outstanding used to calculate diluted net loss per share		5,056			41,183			4,661			45,645
Diluted loss per share:
Diluted net loss per share applicable to common stockholders	$	(0.01	)	$	(0.01	)	$	(0.03	)	$	(0.03	)

The computation of diluted net loss per share excludes the following because their effect would be anti-dilutive (in thousands):

•

For the three and nine months ended September 30, 2018 and 2019, outstanding options to acquire 5,432 and 4,688 shares, respectively of Class B common stock.

•

For the three and nine months ended September 30, 2018 and 2019, 585 and 791 shares of unvested Class B restricted common shares, respectively.

•

For the three and nine months ended September 30, 2018 and 2019, 535 and 550 restricted stock units, respectively.

Concentrations

9 Months Ended

Sep. 30, 2019

Risks And Uncertainties [Abstract]

Concentrations

(6) Concentrations

The Company maintains substantially all of its cash and cash equivalents with two financial institutions and are all considered at Level 1 fair value with observable inputs that reflect quoted prices for identical assets or liabilities in active markets. At various points during the nine months ended September 30, 2018, the Company held cash equivalents in deposit sweep accounts with these same financial institutions. These Level 2 assets were fully liquidated prior to September 30, 2018.

The advertisers representing more than 10% of revenue are as follows (in percentages):

	Nine months ended September 30,						Three months ended September 30,
	2018			2019			2018			2019
Advertiser A		22	%		27	%		25	%		29	%
Advertiser B		21	%		12	%		16	%	*

* Less than 10% of revenue.

Advertiser A is also a distribution partner.

The outstanding receivable balance for each advertiser representing more than 10% of accounts receivable is as follows (in percentages):

At December 31,

2018

September 30,

2019

Advertiser A

Advertiser B

In certain cases, the Company may engage directly with one or more advertising agencies who act on an advertiser’s behalf. In addition, an advertising agency may represent more than one advertiser that utilizes the Company’s products and services. One advertising agency represented 12% and 15% of revenue for the three and nine months ended September 30, 2018, respectively, and less than 10% and 10% of revenue for the three and nine months ended September 30, 2019, respectively. This same advertising agency represented 23% and less than 10% of accounts receivable as of December 31, 2018 and September 30, 2019, respectively.

A significant amount of the Company’s revenue earned from advertisers is generated through arrangements with distribution partners. The Company may not be successful in renewing any of these agreements, or, if they are renewed, they may not be on terms as favorable as current arrangements. The Company may not be successful in entering into agreements with new distribution partners or advertisers on commercially acceptable terms. In addition, several of these distribution partners or advertisers may be considered potential competitors. There were no distribution partners paid more than 10% of revenue for the three and nine months ended September 30, 2018 and 2019.

Leases

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Leases

(9) Leases

The Company leases office space for its corporate headquarters in Seattle, Washington. It also leases an office space in Mississauga, Canada and Wichita, Kansas. The Company leases its office facilities under operating lease agreements in accordance with ASC 842 and recognizes rent expense on a straight-line basis over the lease term with any lease incentives amortized as a reduction of rent expense over the lease term.

The Company’s lease agreement with respect to office space in Seattle, Washington, as amended, expires on March 31, 2025. The Company has the option to terminate the lease in March 2023, subject to satisfaction of certain conditions, including a payment of a termination fee of approximately $671,000. In addition, the lessor will pay towards the cost of certain leasehold improvements (“landlord contribution”) of which the Company may use up to approximately $180,000 of any unused landlord contribution as a credit against any payment obligation under the lease. In the second quarter of 2019, the Company requested the $180,000 landlord contribution from the lessor as a reimbursement towards certain leasehold improvements and received those funds in the third quarter of 2019. In the first quarter of 2018, the lessor paid $373,000 towards certain leasehold improvements which the Company accounted for as a lease incentive and is amortizing as a reduction of rent expense over the lease term. Additionally, in April 2018, the lessor refunded the previously provided security deposit and the Company provided a letter of credit to the lessor in the amount of $575,000, which was reduced by $100,000 in April 2019 and is contemplated to be reduced by such amount annually. The letter of credit was collateralized by a $575,000 certificate of deposit, which was restricted in use and is included in other assets in the Company’s condensed consolidated balance sheet as of December 31, 2018. On April 2, 2019, the Company was no longer required to collateralize the letter of credit and the certificate of deposit matured.

The Company’s lease agreement with respect to office space in Mississauga, Canada commenced in November 2016, with a lease term of 60 months, expiring on November 30, 2021. The Company has the option to terminate the lease upon nine months notice without any termination fees if such notice is provided.

The Company’s lease agreement with respect to office space in Wichita, Kansas is on a month-to-month basis. The lease agreement stipulates a mutual 120-day non-cancelable period to cease rental payments and vacate the premises, and is classified as a short-term operating lease. Short-term leases are leases having a term of twelve months or less.

Lease cost recognized in the Company’s consolidated statements of operations and other information is summarized as follows (in thousands):

	Three months ended September 30, 2019		Nine months ended September 30, 2019
Operating lease cost	$	423	$	1,283
Short-term operating lease cost (1)		30		88
Total operating lease cost (2)	$	453	$	1,371
Other information:
Weighted-average remaining lease term - operating leases			5.4 years
Weighted-average discount rate - operating leases (3)				5.0	%

(1)

The Company elected the practical expedient permitted in ASC Topic 842. As such, its short-term operating lease in Wichita, Kansas is not recognized as a liability as of the effective date of ASC Topic 842 and on the Company’s balance sheet as of September 30, 2019. The Company recognizes short-term operating lease costs on a straight-line basis.

(2)

Rent expense incurred by the Company was approximately $369,000 and $1.1 million for three and nine months ended September 30, 2018, respectively.

(3)

The discount rate used to compute the present value of total lease liabilities as of September 30, 2019 was based on the Company's estimated incremental borrowing rate of similar secured borrowings available to the Company as of the implementation date of ASC 842 on January 1, 2019.

As of September 30, 2019, the Company’s operating lease liabilities were as follows (in thousands):

	Total
Gross future operating lease payments	$	8,959
Less: imputed interest		(1,419	)
Present value of total operating lease liabilities		7,540
Less: current portion of operating lease liabilities		(1,506	)
Total long-term operating lease liabilities	$	6,034

Commitments, Contingencies, and Taxes

9 Months Ended

Sep. 30, 2019

Commitments Contingencies Taxes And Other [Abstract]

Commitments, Contingencies, and Taxes

(10) Commitments, Contingencies, and Taxes

(a) Commitments

The Company has commitments for future payments related to office facilities leases and other contractual obligations. The Company leases its office facilities under operating lease agreements in accordance with ASC 842 and recognizes rent expense on a straight-line basis over the lease term with any lease incentive amortized as a reduction of rent expense over the lease term. Other contractual obligations primarily relate to minimum contractual payments due to outside service providers. Future minimum payments are approximately as follows (in thousands):

	Facilities operating leases (1)		Other contractual obligations		Total
2019		272		1,039		1,311
2020		1,616		1,632		3,248
2021		1,654		378		2,032
2022		1,613		5		1,618
2023 and after		3,804		—		3,804
Total minimum payments	$	8,959	$	3,054	$	12,013
(1) For additional information regarding the Company's facilities operating leases, see Note 9. Leases of the notes to the condensed financial statements.

In connection with the Telmetrics acquisition in 2018, the Company has an earnout arrangement that requires the Company to pay up to a maximum of $3.0 million in cash based upon the achievement of targeted financial goals over the two (2) twelve (12) month periods following the acquisition date. The estimated fair value of the contingent consideration arrangement is approximately $631,000 and is recorded on the balance sheet in acquisition-related liabilities as of September 30, 2019.

During the first quarter of 2019 , the Company committed $2.5 million in funding for a strategic technology initiative through the first quarter of 2020.

(b) Contingencies

The Company from time to time is a party to disputes and legal and administrative proceedings arising from the ordinary course of business. In some agreements to which the Company is a party, the Company has agreed to indemnification provisions of varying scope and terms with advertisers, vendors and other parties with respect to certain matters, including, but not limited to, losses arising out of the Company’s breach of agreements or representations and warranties made by the Company, services to be provided by the Company and intellectual property infringement claims made by third parties. As a result of these provisions, the Company may from time to time provide certain levels of financial support to its contract parties to seek to minimize the impact of any associated litigation in which they may be involved. To date, there have been no known events or circumstances that have resulted in any material costs related to these indemnification provisions and no liabilities therefore have been recorded in the accompanying consolidated financial statements. However, the maximum potential amount of the future payments we could be required to make under these indemnification provisions could be material.

While any litigation contains an element of uncertainty, the Company is not aware of any legal proceedings or claims which are pending that the Company believes, based on current knowledge, will have, individually or taken together, a material adverse effect on the Company’s financial condition, results of operations or liquidity.

The Company determined that it is not more likely than not that its deferred tax assets will be realized and accordingly recorded a 100% valuation allowance against these deferred tax assets as of December 31, 2018 and September 30, 2019. In assessing whether it is more likely than not that the Company’s deferred tax assets will be realized, factors considered included: historical taxable income, historical trends related to advertiser usage rates, projected revenues and expenses, macroeconomic conditions, issues facing the industry, existing contracts, the Company’s ability to project future results and any appreciation of its other assets. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the periods in which those temporary differences are deductible. The Company considered the future reversal of deferred tax liabilities, carryback potential, projected taxable income, and tax planning strategies as well as its history of taxable income or losses in the relevant jurisdictions in making this assessment. Based on the level of historical taxable losses and the uncertainty of projections for future taxable income over the periods for which the deferred tax assets are deductible, the Company concluded that it is not more likely than not that the gross deferred tax assets will be realized.

From time to time, various state, federal and other jurisdictional tax authorities undertake audits of the Company and its filings. In evaluating the exposure associated with various tax filing positions, the Company on occasion accrues charges for uncertain positions. Resolution of uncertain tax positions will impact the Company’s effective tax rate when settled. The Company does not have any significant interest or penalty accruals. The provision for income taxes includes the impact of contingency provisions and changes to contingencies that are considered appropriate. The Company files U.S. federal, certain U.S. states, and certain foreign tax returns. Generally, U.S. federal, U.S. state, and foreign tax returns filed for years after 2012 are within the statute of limitations and are under examination or may be subject to examination.

Acquisitions

9 Months Ended

Sep. 30, 2019

Business Combinations [Abstract]

Acquisitions

(11) Acquisitions

(a) Telmetrics Acquisition:

In November 2018, the Company acquired 100% of the outstanding stock of Telmetrics, an enterprise call

and text tracking and analytics company based in Canada for total consideration consisting of the following:

•

Approximately $10.1 million in cash, paid at closing; and

•

Up to $3.0 million in cash based upon the achievement of targeted financial goals over the two (2) twelve (12) month periods following the acquisition date.

The Company accounted for the Telmetrics acquisition as a business combination. As a result of the acquisition, the Company captured additional scale with its call analytics business and enhanced text communications product initiatives.

A summary of the consideration for the acquisition initially recorded is as follows (in thousands):

Cash	$	10,100
Future consideration		1,600
Total	$	11,700

The future consideration includes an earnout arrangement that requires the Company to pay up to a maximum of $3.0 million in cash to the former shareholders of Telmetrics based upon the achievement of targeted financial goals over the two (2) twelve (12) month periods following the acquisition date. The potential undiscounted amount of all future payments that the Company could be required to make under the contingent earnout arrangement is between $0 and $3.0 million. Of the $3.0 million possible earnout, $450,000 may be paid to certain employees to the extent they remain employed by the Company on the first and second anniversaries following the acquisition date. Such amounts have been excluded from the purchase consideration and are treated as compensation expense. The fair value of the contingent consideration arrangement of approximately $631,000 was estimated by applying the income approach, which is based on significant inputs that are not observable in the market (Level 3 inputs), such as the discount rate and the probability of meeting targeted financial goals. Changes in these assumptions could have an impact on the payout of contingent consideration with a maximum payout being $3.0 million. The fair value of the contingent consideration was approximately $1.5 million and $631,000 as of December 31, 2018 and September 30, 2019, respectively, and the net change in fair value was primarily due to a change in the assumptions used in the original estimate of the liability. The earnout liability is recorded on the balance sheet in acquisition-related liabilities and the net change in fair value of the contingent consideration of approximately $880,000 that the Company recorded during the nine months ended September 30, 2019 is recorded on the income statement in acquisition-related costs (benefit), net of accretion of interest.

In connection with the acquisition, a portion of the cash consideration was placed in escrow to secure indemnification obligations for a period of 18 months from the closing date. The escrow amounts are included as part of the purchase price consideration and will ultimately be released less any indemnification obligations finally determined.

The following summarizes the estimated fair value of the assets acquired and the liabilities assumed at the acquisition date (in thousands):

Cash and cash equivalents	$	359
Accounts receivable		1,274
Prepaid expenses and other current assets	586
Property and equipment	281
Identifiable intangible assets		6,351
Liabilities assumed		(885	)
Deferred tax liabilities		(1,677	)
Net assets acquired		6,289
Goodwill ⁽¹⁾		5,472
Total ⁽¹⁾	$	11,761
⁽¹⁾^{Included working capital adjustments finalized subsequent to the acquisition in November 2018, resulting in total consideration of approximately $}^11,761^{(in thousands) and an adjustment to goodwill in the amount of $}⁶¹^{(in thousands) during the three months ended September 30, 2019}^.

The acquired identifiable intangible assets of approximately $6.4 million consist primarily of customer relationships, technology, tradenames, and non-compete agreements which will be amortized over 24 to 60 months (weighted average of 3.6 years) using the straight-line method. Goodwill represents the expected synergies with our existing business, the acquired assembled workforce, potential new customers and future cash flows after the acquisition of Telmetrics. The goodwill is not anticipated to be deductible for Canadian tax purposes.

(b) Callcap Acquisition:

In November 2018, the Company acquired 100% of the outstanding stock of Callcap, a call monitoring and analytics solutions company based in Kansas for total consideration of $35.0 million, consisting of the following:

•

Approximately $25.0 million in cash, and

•

3.4 million shares of Class B common stock valued at approximately $10.0 million, to be issued over the four-year period following the acquisition date. The issuance of the Class B common stock is not contingent.

The Company accounted for the Callcap acquisition as a business combination. As a result of the acquisition, the Company expanded its customer base, as well as enhanced its growth opportunities in verticals and new customer channels, such as the small business segment.

A summary of the consideration for the acquisition is as follows (in thousands):

Cash	$	24,993
Fair value of equity consideration		10,017
Total	$	35,010

The fair value of the 3.4 million shares of Class B common stock to be issued over the four-year period following the acquisition date, was calculated based on the closing price of Marchex’s Common Stock on Nasdaq on the acquisition date and is recorded on the Company’s balance sheet within additional paid-in capital.

In connection with the acquisition, a portion of the cash and equity consideration was (or will be on issuance) placed in escrow to secure indemnification obligations for a period of 18 months from the closing date. The escrow amounts are included as part of the purchase price consideration and will ultimately be released less any indemnification obligations finally determined.

The following summarizes the estimated fair value of the assets acquired and the liabilities assumed at the acquisition date (in thousands):

Cash and cash equivalents	$	490
Accounts receivable		246
Prepaid expenses and other current assets		504
Property and equipment		93
Identifiable intangible assets		15,128
Liabilities assumed		(482	)
Net assets acquired		15,979
Goodwill		19,031
Total	$	35,010

The acquired identifiable intangible assets of approximately $15.1 million consist primarily of customer relationships, tradenames, technologies, and non-compete agreements, which will be amortized over their preliminary estimated useful lives ranging from 24 to 60 months (weighted average of 4.1 years) using the straight-line method. Goodwill represents the expected synergies with our existing business, the acquired assembled workforce, potential new customers and future cash flows after the acquisition of Callcap. The goodwill is deductible for federal tax purposes.

The following unaudited pro forma financial information summarizes the combined results of operations of the Company, Telmetrics, and Callcap, and is based on the historical results of operations of the Company, Telmetrics, and Callcap. The pro forma information reflects the results of operations of the Company as if the acquisitions of Telmetrics and Callcap had taken place on January 1, 2018. The unaudited pro forma financial information for the three and nine months ended September 30, 2018 combine the historical results of operations for the Company for the three and nine months ended September 30, 2018 and Telmetrics’ and Callcap’s historical results of operations during the pre-acquisition period for the three and nine months ended September 30, 2018. The pro forma information includes adjustments for amortization of intangible assets, accretion of interest expense related to the future consideration, and elimination of interest expense and income. The unaudited pro forma financial information is provided for informational purposes only and is not necessarily indicative of the combined results that would have occurred had the acquisition taken place on the dates indicated, nor is it necessarily indicative of results that may occur in the future.

	(Unaudited)
	(in thousands)
	Nine Months Ended			Three months ended
	September 30,			September 30,
	2018			2018
Revenue	$	77,066		$	25,119
Net loss applicable to common stockholders		(3,091	)		(925	)

Identifiable Intangible Assets from Acquisitions

9 Months Ended

Sep. 30, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

Identifiable Intangible Assets from Acquisitions

(12) Identifiable Intangible Assets from Acquisitions

Identifiable intangible assets from acquisitions consisted of the following (in thousands):

	As of December 31, 2018
	Gross Carrying Amount		Accumulated Amortization		Net
Customer relationships	$	12,368	$	295	$	12,073
Technologies		5,879		258		5,621
Non-compete agreements		2,559		184		2,375
Tradenames		672		44		628
Total identifiable intangible assets from acquisitions	$	21,478	$	781	$	20,697


	As of September 30, 2019
	Gross Carrying Amount		Accumulated Amortization		Net
Customer relationships	$	12,368	$	2,150	$	10,218
Technologies		5,879		1,728		4,151
Non-compete agreements		2,559		1,311		1,248
Tradenames		672		296		376
Total identifiable intangible assets from acquisitions	$	21,478	$	5,485	$	15,993

Amortizable intangible assets are amortized on a straight-line basis over their useful lives. Customer relationships, acquired technologies, tradenames, and non-compete arrangements have a weighted average useful life from date of purchase of 5 years, 3 years, 2 years, 1-2 years, respectively. Aggregate amortization expense incurred by the Company for the nine months ended September 30, 2019 was approximately $4.7 million. Based upon the current amount of acquired identifiable intangible assets subject to amortization, the estimated remaining amortization expense as of September 30, 2019 for the next five years is as follows: $1.5 million in 2019, $5.7 million in 2020, $4.2 million in 2021, $2.5 million in 2022, and $2.1 million in 2023.

Significant Accounting Policies (Policies)	9 Months Ended
Significant Accounting Policies (Policies)	Sep. 30, 2019
Accounting Policies [Abstract]
Accompanying Unaudited Condensed Consolidated Financial Statements	The accompanying unaudited condensed consolidated financial statements of Marchex, Inc. and its wholly-owned subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for annual financial statements. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the nine months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019, or for any other period. The balance sheet at December 31, 2018 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and notes required by accounting principles generally accepted in the United States of America for complete financial statements. These condensed consolidated financial statements and notes should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes included in the Annual Report on Form 10-K for the year ended December 31, 2018, as amended, and filed with the SEC. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All inter-company transactions and balances have been eliminated in consolidation. Certain reclassifications have been made to the consolidated financial statements in the prior periods to conform to the current period presentation. Acquisitions In November 2018, we acquired Telmetrics Inc. (“Telmetrics”), an enterprise call and text tracking and analytics company, and SITA Laboratories, Inc. (d/b/a Callcap) (“Callcap”), a call monitoring and analytics solutions company. See Note 11. Acquisitions of the notes to the condensed consolidated financial statements for further discussion.
Recent Accounting Pronouncement(s) Not Yet Effective	Recent Accounting Pronouncement(s) Not Yet Effective In August 2018, the FASB issued Accounting Standards Update No. 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40) – Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract (ASU 2018-15), an ASU which requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to be capitalized. The ASU is effective for reporting periods beginning after December 15, 2019, with early adoption permitted. The Company does not expect adoption of ASU 2018-15 to have a material impact on its consolidated financial statements. In August 2018, the FASB issued Accounting Standards Update No. 2018-13, Fair Value Measurement (Topic 820) - Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13), an ASU which modifies the disclosure requirements on fair value measurements in ASC 820. The ASU is effective for reporting periods beginning after December 15, 2019, with early adoption permitted. The Company does not expect adoption of ASU 2018-13 to have a material impact on its consolidated financial statements. In January 2017, the FASB issued Accounting Standards Update No 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (ASU 2017-04). ASU 2017-04 simplifies the subsequent measurement of goodwill by eliminating “Step 2” from the goodwill impairment test. ASU 2017-04 is effective for public companies’ annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect adoption of ASU 2017-04 to have a material impact on its consolidated financial statements. In June 2016, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments (ASU 2016-13), an ASU amending the impairment model for most financial assets and certain other instruments. The ASU is effective for reporting periods beginning after December 15, 2019, with early adoption permitted after December 15, 2018. The ASU must be adopted using a modified-retrospective approach. In November 2018, the FASB issued Accounting Standards Update No. 2018-19, Codification Improvements (Topic 326), Financial Instruments - Credit Losses (ASU 2018-19), an ASU intended to improve the Codification or correct its unintended application. The ASU is effective upon the adoption of the amendments in Accounting Standards Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which is effective for reporting periods beginning after December 15, 2019, with early adoption permitted after December 15, 2018. In addition, in May 2019, the FASB issued Accounting Standards Update No. 2019-05, Financial Instruments — Credit Losses (Topic 326), Targeted Transition Relief, (ASU 2019-05)), an ASU which provides ASU 2016-13 transition relief by providing entities with an alternative to irrevocably elect the fair value option for eligible financial assets measured at amortized cost upon adoption of the credit losses standard. To be eligible for the transition election, the existing financial asset must otherwise be both within the scope of the new credit losses standard and eligible for the applying the fair value option in ASC 825-10. The election must be applied on an instrument-by-instrument basis and is not available for either available-for-sale or held-to-maturity debt securities. The ASU is effective upon the adoption of the amendments in Accounting Standards Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The Company does not expect adoption of ASU 2019-05, ASU 2018-19 and ASU 2016-13 to have a material impact on its consolidated financial statements.
Revenue Recognition	Revenue Recognition The Company generates the majority of its revenues from advertisers for its performance based advertising services, which include the use of its call analytics technology and pay-for-call advertising products and services. The Company’s revenue also consists of payments from its reseller partners for use of its local leads platform and marketing services, which they offer to their small business customers. Customers typically receive the benefit of the Company’s services as they are performed and substantially all the Company’s revenue is recognized over time as the services are performed. The Company adopted FASB ASC Topic 606, Revenue from Contracts with Customers, (ASC 606) on January 1, 2018 using the modified retrospective approach for all contracts not completed as of the date of initial application, referred to as open contracts. Therefore, the comparative information has not been adjusted and continues to be reported under ASC 605. Under ASC 606, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration we expect to receive in exchange for those goods or services. The Company measures revenue based on the consideration specified in the customer arrangement, and revenue is recognized when the performance obligations in the customer arrangement are satisfied. A performance obligation is a promise in a contract to transfer a distinct service or product to the customer. The transaction price of a contract is allocated to each distinct performance obligation and recognized as revenue when or as the customer receives the benefit of the performance obligation. The primary impact upon adoption of the standard relates to the deferral (i.e. capitalization) of incremental contract acquisition costs which are recorded as other non-current assets in the balance sheet and the recognition (i.e. amortization) of them in sales and marketing expenses in the statements of operations over the term of the initial contract and anticipated renewal contracts to which the costs relate. The Company recognized a $189,000 decrease to accumulated deficit as of January 1, 2018 for the cumulative impact of adoption of the amended guidance associated with the incremental contract acquisition costs on open contracts that were capitalized. The impact of the adoption of ASC 606 on net loss applicable to common stockholders for the year ended December 31, 2018 and on the unaudited consolidated balance sheet at December 31, 2018 was not significant. The Company’s call analytics technology platform provides data and insights that can measure the performance of mobile, online and offline advertising for advertisers and small business resellers. The Company generates revenue from the Company’s call analytics technology platform when advertisers pay the Company a fee for each call/text or call/text related data element they receive from calls or texts including call-based ads the Company distributes through its sources of call distribution or for each phone number tracked based on a pre-negotiated rate. Revenue is recognized as services are provided over time, which is generally measured by the delivery of each call/text or call/text related data element or each phone number tracked. The Company’s call marketplace offers advertisers and advertising service providers’ ad placements across the Company’s distribution network. Advertisers or advertising service providers are charged on a pay-per-call or cost-per-action basis. The Company generates revenue upon delivery of qualified and reported phone calls to advertisers or advertising service providers’ listings. These advertisers and advertising service providers pay the Company a designated transaction fee for each qualified phone call, which occurs when a user makes a phone call, clicks, or completes a specified action on any of their advertisement listings after it has been placed by the Company or by the Company’s distribution partners. The Company also generates revenue from cost-per-action services, which occurs when a user makes a phone call from the Company’s advertiser’s listing or is redirected from one of the Company’s web sites or a third-party web site in the Company’s distribution network to an advertiser web site and completes the specified action. Each qualified phone call or specified action on a listing represents a completed transaction. Revenue is recognized as services are provided upon the delivery of a qualified phone call or completed action. The Company’s distribution network is primarily comprised of third party mobile and online search engines and applications, mobile carriers, directories, destination sites, shopping engines, Internet domains or web sites, other targeted Web-based content, and offline sources. The Company enters into agreements with these third-party distribution partners to provide distribution for pay-for-call advertisement listings, which contain call tracking numbers and/or URL strings. The Company generally pays distribution partners based on a percentage of revenue or a fixed amount per phone call or other actions on these listings. The Company acts as the principal with the advertiser for revenue call transactions, and is responsible for the fulfillment of services. The Company recognizes revenue for these fees under the gross revenue recognition method. The Company’s local leads platform allows reseller partners to sell call advertising, search marketing, and other lead generation products through their existing sales channels to small business advertisers. The Company generates revenue from reseller partners utilizing the Company’s local leads platform and is paid account fees and/or agency fees for the Company’s products in the form of a percentage of the cost of every call or click delivered to advertisers. Revenue is recognized over time as services are provided. The reseller partners engage the advertisers and are the principal for the transaction, and the Company, in certain instances, is only financially liable to the publishers in the Company’s capacity as a collection agency for the amount collected from the advertisers. The Company recognizes revenue for these fees under the net revenue recognition method. In limited arrangements resellers pay the Company a fee for fulfilling an advertiser’s campaign in its distribution network and the Company acts as the principal and recognizes revenue for these fees under the gross revenue recognition method. For the three and nine months ended September 30, 2018, revenues disaggregated by service type were $18.4 million and $56.9 million for performance based advertising services, respectively, and $1.6 million and $5.2 million for local leads services, respectively. For the three and nine months ended September 30, 2019, revenues disaggregated by service type were $24.8 million and $77.5 million for performance based advertising services, respectively, and $1.0 million and $3.3 million for local leads services, respectively. The majority of the Company’s customers are invoiced on a monthly basis following the month of the delivery of services and are required to make payments under standard credit terms. The Company establishes an allowance for advertiser credits, which is included in accrued expense and other current liabilities in the balance sheet as of September 30, 2019, using its best estimate of the amount of expected future reductions in advertisers’ payment obligations related to delivered services based on analysis of historical credits. Customer payments received in advance of revenue recognition are contract liabilities and are recorded as deferred revenue. During the three and nine months ended September 30, 2019, revenue recognized that was included in the contract liabilities balance at the beginning of the period was $367,000 and $1.2 million. The majority of the Company’s total revenue is derived from contracts that include consideration that is variable in nature. The variable elements of these contracts primarily include the number of transactions (for example, the number qualified phone calls). For contracts with an effective term greater than one year, the Company applies the standard’s practical expedient that permits the exclusion of disclosure of the value of unsatisfied performance obligations for these contracts as the Company’s right to consideration corresponds directly to the value provided to the customer for services completed to date and all future variable consideration is allocated to wholly unsatisfied performance obligations. A term for purposes of these contracts has been estimated at 24 months. In addition, the Company applies the standard’s optional exemption to disclose information about performance obligations for contracts that have original expected terms of one year or less. For arrangements that include multiple performance obligations, the transaction price from the arrangement is allocated to each respective performance obligation based on its relative standalone selling price and recognized when revenue recognition criteria for each performance obligation are met. The standalone selling price for each performance obligation is established based on the sales price at which the Company would sell a promised good or service separately to a customer or the estimated standalone selling price. In certain cases, the Company records revenue based on available and reported preliminary information from third parties. Collection on the related receivables may vary from reported information based upon third-party refinement of the estimated and reported amounts owed that occurs subsequent to period ends. The Company’s incremental direct costs of obtaining a contract, which consist primarily of sales commissions, are generally deferred and amortized to sales and marketing expense over the estimated life of the relevant customer relationship of approximately 24 months and are subject to being monitored every period to reflect any significant change in assumptions. In addition, the deferred contract cost asset is assessed for impairment on a periodic basis. The Company’s contract acquisition costs are included in other assets, net in the balance sheet. The Company is applying the standard’s practical expedient permitting expensing of costs to obtain a contract when the expected amortization period is one year or less, which typically results in expensing commissions paid to acquire certain contracts. As of September 30, 2019, the Company had $248,000 of net deferred contract costs and the amortization associated with these costs was $74,000 and $281,000 for the three and nine months ended September 30, 2019, respectively.
Stock-Based Compensation	The Company grants stock-based awards, including stock options, restricted stock awards, and restricted stock units. The Company measures stock-based compensation cost at the grant date based on the fair value of the award and recognizes it as expense over the vesting or service period, as applicable, of the stock-based award using the straight-line method. The Company accounts for forfeitures as they occur. The Company uses the Black-Scholes option pricing model to estimate the per share fair value of stock option grants with time-based vesting. The Black-Scholes model relies on a number of key assumptions to calculate estimated fair values. For the three and nine months ended September 30, 2018 and September 30, 2019 the expected life of each award granted was determined based on historical experience with similar awards, giving consideration to contractual terms, anticipated exercise patterns, vesting schedules and expirations. Expected volatility is based on historical volatility levels of the Company’s Class B common stock and the expected volatility of companies in similar industries that have similar vesting and contractual terms. The risk-free interest rate is based on the implied yield currently available on U.S. Treasury issues with terms approximately equal to the expected life of the option. For the nine months ended September 30, 2018, the Company used an expected dividend yield for those grants prior to the record date of the Company’s common stock cash dividend payment in March 2018.

Stock-based Compensation Plans (Tables)

9 Months Ended

Sep. 30, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-based Compensation Expense Included in Operating Expense

Stock-based compensation expense was included in the following operating expense categories as follows (in thousands):

	Nine Months Ended September 30,				Three Months Ended September 30,
	2018		2019		2018		2019
Service costs	$	338	$	131	$	108	$	36
Sales and marketing		411		529		125		180
Product development		276		215		94		72
General and administrative		1,310		1,275		375		535
Total stock-based compensation	$	2,335	$	2,150	$	702	$	823

Assumptions to Estimate Fair Value for Stock Options at Grant Date

The following weighted average assumptions were used in determining the fair value of time-vested stock option grants for the periods presented:

	Nine Months Ended September 30,		Three Months Ended September 30,
	2018	2019	2018	2019
Expected life (in years)	4.0-6.25	4.0-6.25	4.0-6.25	4.0-6.25
Risk-free interest rate	2.54%-2.93%	1.57%-2.22%	2.86%-2.93%	1.57%-1.59%
Expected volatility	42%-53%	39%-50%	42%-49%	40%-50%
Expected dividend yield	0%-3.57%	0%	0%	0%

Summary of Stock Option

Stock option activity during the nine months ended September 30, 2019 is summarized as follows:

	Shares (in thousands)			Weighted average exercise price		Weighted average remaining contractual term (in years)
Balance at December 31, 2018		5,511		$	4.98		5.53
Options granted		865			4.48
Options forfeited		(240	)		3.27
Options expired		(961	)		6.36
Options exercised		(487	)		3.70
Balance at September 30, 2019		4,688		$	4.82		5.86

Summary of Restricted Stock Awards and Restricted Stock Units

Restricted stock awards and restricted stock unit activity during the nine months ended September 30, 2019 is summarized as follows:

	Shares/ Units (in thousands)			Weighted average grant date fair value
Unvested balance at December 31, 2018		1,264		$	3.28
Granted		544			4.71
Vested		(355	)		3.70
Forfeited		(112	)		3.85
Unvested balance at September 30, 2019		1,341		$	3.70

Net Income (Loss) Per Share (Tables)

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

Computation of Loss per Share Basic and Diluted

The following tables present the computation of basic net loss per share applicable to common stockholders for the periods ended (in thousands, except per share amounts):

	Nine months ended September 30,
	2018						2019
	Class A			Class B			Class A			Class B
Basic net loss per share:
Numerator:
Net loss applicable to common stockholders	$	(244	)	$	(1,797	)	$	(387	)	$	(3,241	)
Denominator:
Weighted average number of shares outstanding used to calculate basic net loss per share		5,056			37,243			4,838			40,459
Basic net loss per share applicable to common stockholders	$	(0.05	)	$	(0.05	)	$	(0.08	)	$	(0.08	)

	Three months ended September 30,
	2018						2019
	Class A			Class B			Class A			Class B
Basic net loss per share:
Numerator:
Net loss applicable to common stockholders	$	(56	)	$	(401	)	$	(124	)	$	(1,091	)
Denominator:
Weighted average number of shares outstanding used to calculate basic net loss per share		5,056			36,127			4,661			40,984
Basic net loss per share applicable to common stockholders	$	(0.01	)	$	(0.01	)	$	(0.03	)	$	(0.03	)

The following tables present the computation of diluted net loss per share applicable to common stockholders for the periods ended (in thousands, except per share amounts):

	Nine months ended September 30,
	2018						2019
	Class A			Class B			Class A			Class B
Diluted net loss per share:
Numerator:
Net loss applicable to common stockholders	$	(244	)	$	(1,797	)	$	(387	)	$	(3,241	)
Reallocation of net loss for Class A shares as a result of conversion of Class A to Class B shares		—			(244	)		—			(387	)
Diluted net loss applicable to common stockholders	$	(244	)	$	(2,041	)	$	(387	)	$	(3,628	)
Denominator:
Weighted average number of shares outstanding used to calculate basic net loss per share		5,056			37,243			4,838			40,459
Conversion of Class A to Class B common shares outstanding		—			5,056			—			4,838
Weighted average number of shares outstanding used to calculate diluted net loss per share		5,056			42,299			4,838			45,297
Diluted net loss per share applicable to common stockholders	$	(0.05	)	$	(0.05	)	$	(0.08	)	$	(0.08	)

	Three months ended September 30,
	2018						2019
	Class A			Class B			Class A			Class B
Diluted net loss per share
Numerator:
Net loss applicable to common stockholders	$	(56	)	$	(401	)	$	(124	)	$	(1,091	)
Reallocation of net loss for Class A shares as a result of conversion of Class A to Class B shares		—			(56	)		—			(124	)
Diluted net loss applicable to common stockholders	$	(56	)	$	(457	)	$	(124	)	$	(1,215	)
Denominator:
Weighted average number of shares outstanding used to calculate basic net loss per share		5,056			36,127			4,661			40,984
Conversion of Class A to Class B common shares outstanding		—			5,056			—			4,661
Weighted average number of shares outstanding used to calculate diluted net loss per share		5,056			41,183			4,661			45,645
Diluted loss per share:
Diluted net loss per share applicable to common stockholders	$	(0.01	)	$	(0.01	)	$	(0.03	)	$	(0.03	)

Leases (Tables)

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Schedule of Lease Cost Recognized in Consolidated Statement of Operations and Other Information

Lease cost recognized in the Company’s consolidated statements of operations and other information is summarized as follows (in thousands):

	Three months ended September 30, 2019		Nine months ended September 30, 2019
Operating lease cost	$	423	$	1,283
Short-term operating lease cost (1)		30		88
Total operating lease cost (2)	$	453	$	1,371
Other information:
Weighted-average remaining lease term - operating leases			5.4 years
Weighted-average discount rate - operating leases (3)				5.0	%

(1)

(2)

Rent expense incurred by the Company was approximately $369,000 and $1.1 million for three and nine months ended September 30, 2018, respectively.

(3)

Schedule of Operating Lease Liabilities

As of September 30, 2019, the Company’s operating lease liabilities were as follows (in thousands):

	Total
Gross future operating lease payments	$	8,959
Less: imputed interest		(1,419	)
Present value of total operating lease liabilities		7,540
Less: current portion of operating lease liabilities		(1,506	)
Total long-term operating lease liabilities	$	6,034

Acquisitions (Tables)

9 Months Ended

Sep. 30, 2019

Business Acquisition [Line Items]

Summary of Unaudited Pro Forma Financial Information

	(Unaudited)
	(in thousands)
	Nine Months Ended			Three months ended
	September 30,			September 30,
	2018			2018
Revenue	$	77,066		$	25,119
Net loss applicable to common stockholders		(3,091	)		(925	)

Telmetrics Acquisition

Business Acquisition [Line Items]

Summary of Consideration for Acquisition Initially Recorded

A summary of the consideration for the acquisition initially recorded is as follows (in thousands):

Cash	$	10,100
Future consideration		1,600
Total	$	11,700

Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed

The following summarizes the estimated fair value of the assets acquired and the liabilities assumed at the acquisition date (in thousands):

Cash and cash equivalents	$	359
Accounts receivable		1,274
Prepaid expenses and other current assets	586
Property and equipment	281
Identifiable intangible assets		6,351
Liabilities assumed		(885	)
Deferred tax liabilities		(1,677	)
Net assets acquired		6,289
Goodwill ⁽¹⁾		5,472
Total ⁽¹⁾	$	11,761
⁽¹⁾^{Included working capital adjustments finalized subsequent to the acquisition in November 2018, resulting in total consideration of approximately $}^11,761^{(in thousands) and an adjustment to goodwill in the amount of $}⁶¹^{(in thousands) during the three months ended September 30, 2019}^.

Callcap Acquisition

Business Acquisition [Line Items]

Summary of Consideration for Acquisition Initially Recorded

A summary of the consideration for the acquisition is as follows (in thousands):

Cash	$	24,993
Fair value of equity consideration		10,017
Total	$	35,010

Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed

The following summarizes the estimated fair value of the assets acquired and the liabilities assumed at the acquisition date (in thousands):

Cash and cash equivalents	$	490
Accounts receivable		246
Prepaid expenses and other current assets		504
Property and equipment		93
Identifiable intangible assets		15,128
Liabilities assumed		(482	)
Net assets acquired		15,979
Goodwill		19,031
Total	$	35,010

Identifiable Intangible Assets from Acquisitions (Tables)

9 Months Ended

Sep. 30, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

Summary of Identifiable Intangible Assets from Acquisitions

Identifiable intangible assets from acquisitions consisted of the following (in thousands):

	As of December 31, 2018
	Gross Carrying Amount		Accumulated Amortization		Net
Customer relationships	$	12,368	$	295	$	12,073
Technologies		5,879		258		5,621
Non-compete agreements		2,559		184		2,375
Tradenames		672		44		628
Total identifiable intangible assets from acquisitions	$	21,478	$	781	$	20,697


	As of September 30, 2019
	Gross Carrying Amount		Accumulated Amortization		Net
Customer relationships	$	12,368	$	2,150	$	10,218
Technologies		5,879		1,728		4,151
Non-compete agreements		2,559		1,311		1,248
Tradenames		672		296		376
Total identifiable intangible assets from acquisitions	$	21,478	$	5,485	$	15,993

Revenue Recognition - Additional Information (Detail) - USD ($)		3 Months Ended		9 Months Ended
	Jan. 01, 2018	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Disaggregation Of Revenue [Line Items]
Revenue disaggregated by service type		$ 24,794,000	$ 20,006,000	$ 77,541,000	$ 62,120,000
Revenue recognized		367,000		$ 1.2
Revenue, Practical expedient description terms				The majority of the Company’s total revenue is derived from contracts that include consideration that is variable in nature. The variable elements of these contracts primarily include the number of transactions (for example, the number qualified phone calls). For contracts with an effective term greater than one year, the Company applies the standard’s practical expedient that permits the exclusion of disclosure of the value of unsatisfied performance obligations for these contracts as the Company’s right to consideration corresponds directly to the value provided to the customer for services completed to date and all future variable consideration is allocated to wholly unsatisfied performance obligations. A term for purposes of these contracts has been estimated at 24 months. In addition, the Company applies the standard’s optional exemption to disclose information about performance obligations for contracts that have original expected terms of one year or less.
Customer Relationships
Disaggregation Of Revenue [Line Items]
Estimated life				24 months
Customer Contracts
Disaggregation Of Revenue [Line Items]
Deferred contract costs, net		248,000		$ 248,000
Amortization associated with deferred contract costs		74,000		$ 281,000
Maximum \| Customer Contracts
Disaggregation Of Revenue [Line Items]
Threshold amortization period when company obtains a contact				1 year
Advertising Services
Disaggregation Of Revenue [Line Items]
Revenue disaggregated by service type		24,800,000	18,400,000	$ 77,500,000	56,900,000
Local Leads Revenue
Disaggregation Of Revenue [Line Items]
Revenue disaggregated by service type		$ 1,000,000	$ 1,600,000	$ 3,300,000	$ 5,200,000
ASC 606 \| Difference between Revenue Guidance in Effect before and after Topic 606
Disaggregation Of Revenue [Line Items]
Decrease to accumulated deficit for cumulative impact of adoption	$ 189,000

Summary of Stock Option (Detail) - $ / shares	9 Months Ended	12 Months Ended
Summary of Stock Option (Detail) - $ / shares	Sep. 30, 2019	Dec. 31, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Number of shares, Beginning Balance	5,511
Options granted, Shares	865
Options forfeited, Shares	(240)
Options expired, Shares	(961)
Options exercised, Shares	(487)
Number of shares, Ending Balance	4,688	5,511
Weighted average exercise price, Beginning Balance	$ 4.98
Options granted, Weighted average exercise price	4.48
Options forfeited, Weighted average exercise price	3.27
Options expired, Weighted average exercise price	6.36
Options exercised, Weighted average exercise price	3.70
Weighted average exercise price, Ending Balance	$ 4.82	$ 4.98
Weighted average remaining contractual term, End of the period	5 years 10 months 9 days	5 years 6 months 10 days

Computation of Loss Per Share Basic and Diluted (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Numerator:
Net loss applicable to common stockholders	$ (1,215)	$ (457)	$ (3,628)	$ (2,041)
Numerator:
Net loss applicable to common stockholders	(1,215)	(457)	(3,628)	(2,041)
Class A
Numerator:
Net loss applicable to common stockholders	$ (124)	$ (56)	$ (387)	$ (244)
Denominator:
Weighted average number of shares outstanding used to calculate basic net loss per share	4,661	5,056	4,838	5,056
Weighted average number of shares outstanding used to calculate diluted net loss per share	4,661	5,056	4,838	5,056
Basic net loss per share applicable to common stockholders	$ (0.03)	$ (0.01)	$ (0.08)	$ (0.05)
Numerator:
Net loss applicable to common stockholders	$ (124)	$ (56)	$ (387)	$ (244)
Diluted net loss applicable to common stockholders	$ (124)	$ (56)	$ (387)	$ (244)
Diluted loss per share:
Diluted net loss per share applicable to common stockholders	$ (0.03)	$ (0.01)	$ (0.08)	$ (0.05)
Class B
Numerator:
Net loss applicable to common stockholders	$ (1,091)	$ (401)	$ (3,241)	$ (1,797)
Denominator:
Weighted average number of shares outstanding used to calculate basic net loss per share	40,984	36,127	40,459	37,243
Conversion of Class A to Class B common shares outstanding	4,661	5,056	4,838	5,056
Weighted average number of shares outstanding used to calculate diluted net loss per share	45,645	41,183	45,297	42,299
Basic net loss per share applicable to common stockholders	$ (0.03)	$ (0.01)	$ (0.08)	$ (0.05)
Numerator:
Net loss applicable to common stockholders	$ (1,091)	$ (401)	$ (3,241)	$ (1,797)
Reallocation of net loss for Class A shares as a result of conversion of Class A to Class B shares	(124)	(56)	(387)	(244)
Diluted net loss applicable to common stockholders	$ (1,215)	$ (457)	$ (3,628)	$ (2,041)
Diluted loss per share:
Diluted net loss per share applicable to common stockholders	$ (0.03)	$ (0.01)	$ (0.08)	$ (0.05)

Future Minimum Payments (Detail) $ in Thousands	Sep. 30, 2019 USD ($)
Contractual Obligation Fiscal Year Maturity Schedule [Abstract]
Facilities operating leases 2019	$ 272
Facilities operating leases 2020	1,616
Facilities operating leases 2021	1,654
Facilities operating leases 2022	1,613
Facilities operating leases 2023 and after	3,804
Facilities operating leases Total minimum payments	8,959
Other contractual obligations 2019	1,039
Other contractual obligations 2020	1,632
Other contractual obligations 2021	378
Other contractual obligations 2022	5
Other contractual obligations 2023 and after	0
Other contractual obligations, Total minimum payments	3,054
Total 2019	1,311
Total 2020	3,248
Total 2021	2,032
Total 2022	1,618
Total 2023 and after	3,804
Total minimum payments	$ 12,013

Acquisitions - Additional Information (Detail) - USD ($) shares in Millions	1 Months Ended	3 Months Ended	9 Months Ended
	Nov. 30, 2018	Sep. 30, 2019	Sep. 30, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Net change in fair value of contingent consideration			$ 818,000
Telmetrics Acquisition
Business Acquisition [Line Items]
Business acquisition, percentage of voting interests acquired	100.00%
Cash paid for business acquisition	$ 10,100,000
Maximum contingent consideration cash payable on acquisition	$ 3,000,000
Contingent consideration, description	Up to $3.0 million in cash based upon the achievement of targeted financial goals over the two (2) twelve (12) month periods following the acquisition date.
Minimum contingent consideration cash payable on acquisition	$ 0
Business combination contingent consideration payment to employees	450,000
Fair value of contingent consideration	$ 631,000,000	$ 631,000,000	631,000,000	$ 1,500
Net change in fair value of contingent consideration			880,000
Indemnification obligations period	18 months
Identifiable intangible assets	$ 6,351,000	6,400,000	$ 6,400,000
Weighted average useful life			3 years 7 months 6 days
Finite-lived intangible assets, amortization method			straight-line method
Total consideration	$ 11,700,000	11,761,000
Telmetrics Acquisition \| Minimum
Business Acquisition [Line Items]
Acquired identifiable intangible assets amortization period			24 months
Telmetrics Acquisition \| Maximum
Business Acquisition [Line Items]
Acquired identifiable intangible assets amortization period			60 months
Callcap Acquisition
Business Acquisition [Line Items]
Business acquisition, percentage of voting interests acquired	100.00%
Cash paid for business acquisition	$ 24,993,000
Indemnification obligations period	18 months
Identifiable intangible assets	$ 15,128,000	$ 15,100,000	$ 15,100,000
Weighted average useful life			4 years 1 month 6 days
Finite-lived intangible assets, amortization method			straight-line method
Total consideration	$ 35,010,000
Callcap Acquisition \| Class B
Business Acquisition [Line Items]
Stock issued during the period, shares	3.4
Stock issued during the period, value	$ 10,000,000
Common stock issuance period	4 years
Callcap Acquisition \| Minimum
Business Acquisition [Line Items]
Acquired identifiable intangible assets amortization period			24 months
Callcap Acquisition \| Maximum
Business Acquisition [Line Items]
Acquired identifiable intangible assets amortization period			60 months

Acquisitions - Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed (Detail) - USD ($)
$ in Thousands

Sep. 30, 2019

Dec. 31, 2018

Nov. 30, 2018

Business Acquisition [Line Items]

Goodwill

$ 24,503

$ 24,442

Telmetrics Acquisition

Business Acquisition [Line Items]

Cash and cash equivalents

$ 359

Accounts receivable

1,274

Prepaid expenses and other current assets

586

Property and equipment

281

Identifiable intangible assets

6,400

6,351

Liabilities assumed

(885)

Deferred tax liabilities

(1,677)

Net assets acquired

6,289

Goodwill

^[1]

5,472

Total

^[1]

11,761

Callcap Acquisition

Business Acquisition [Line Items]

Cash and cash equivalents

490

Accounts receivable

246

Prepaid expenses and other current assets

504

Property and equipment

Identifiable intangible assets

$ 15,100

15,128

(482)

15,979

19,031

$ 35,010

[1]	Included working capital adjustments finalized subsequent to the acquisition in November 2018, resulting in total consideration of approximately $11,761 (in thousands) and an adjustment to goodwill in the amount of $61 (in thousands) during the three months ended September 30, 2019.

Identifiable Intangible Assets from Acquisitions - Additional Information (Detail) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019 USD ($)	Sep. 30, 2019 USD ($)
Finite Lived Intangible Assets [Line Items]
Amortization of intangible assets from acquisitions	$ 1,568	$ 4,704
Estimated remaining amortization expense in 2019	1,500	1,500
Estimated amortization expense in 2020	5,700	5,700
Estimated amortization expense in 2021	4,200	4,200
Estimated amortization expense in 2022	2,500	2,500
Estimated amortization expense in 2023	$ 2,100	$ 2,100
Customer Relationships
Finite Lived Intangible Assets [Line Items]
Weighted average useful life		5 years
Technologies
Finite Lived Intangible Assets [Line Items]
Weighted average useful life		3 years
Tradenames
Finite Lived Intangible Assets [Line Items]
Weighted average useful life		2 years
Non-compete Agreements \| Minimum
Finite Lived Intangible Assets [Line Items]
Weighted average useful life		1 year
Non-compete Agreements \| Maximum
Finite Lived Intangible Assets [Line Items]
Weighted average useful life		2 years

Common Stock - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended		3 Months Ended		9 Months Ended		12 Months Ended
	Nov. 30, 2018	May 31, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2017	Nov. 30, 2014
Equity, Class of Treasury Stock [Line Items]
Treasury stock acquired, value			$ 23
Cash dividends declared per share							$ 0.50
Dividends payable							$ 21,900
Dividend paid in cash				$ 21,900		$ 21,911
Callcap Acquisition
Equity, Class of Treasury Stock [Line Items]
Business acquisition, percentage of voting interests acquired	100.00%
Cash paid for business acquisition	$ 24,993
Class B
Equity, Class of Treasury Stock [Line Items]
Number of shares authorized to be repurchased								3,000,000
Treasury stock acquired, shares					90,000	0
Treasury stock repurchased					$ 0.01
Treasury stock acquired, value					$ 900	$ 0
Class B \| Callcap Acquisition
Equity, Class of Treasury Stock [Line Items]
Stock issued during the period, shares	3,400,000
Common stock issuance period	4 years
Class B \| Former Member of Board of Directors
Equity, Class of Treasury Stock [Line Items]
Treasury stock acquired, shares		2,300,000
Treasury stock acquired, value		$ 5,700

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2019	Dec. 31, 2018
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	137,500,000	137,500,000
Class A
Common stock, shares authorized	12,500,000	12,500,000
Common stock, shares issued	4,661,000	5,056,000
Common stock, shares outstanding	4,661,000	5,056,000
Class B
Common stock, shares authorized	125,000,000	125,000,000
Common stock, shares issued	38,427,000	36,965,000
Common stock, shares outstanding	38,427,000	36,965,000
Restricted stock, shares outstanding	791,000	574,000

Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Jan. 01, 2019
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Operating lease liabilities	$ 7,540
ROU assets	$ 6,146
ASU 2016-02
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Operating lease liabilities		$ 8,700
ROU assets		$ 7,400

Stock-based Compensation Plans - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2019 shares
Class B
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units holder entitle to receive number of shares of common stock upon certain service conditions	1

Summary Restricted Stock Awards and Restricted Stock Units Activity (Detail) - Restricted Stock	9 Months Ended
	Sep. 30, 2019 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested Shares, Beginning Balance \| shares	1,264
Granted, Shares \| shares	544
Vested, Shares \| shares	(355)
Forfeited, Shares \| shares	(112)
Unvested Shares, Ending Balance \| shares	1,341
Weighted average grant date fair value, Beginning Balance \| $ / shares	$ 3.28
Granted, Weighted average grant date fair value \| $ / shares	4.71
Vested, Weighted average grant date fair value \| $ / shares	3.70
Forfeited, Weighted average grant date fair value \| $ / shares	3.85
Weighted average grant date fair value, Ending Balance \| $ / shares	$ 3.70

Concentrations - Additional Information (Detail)	3 Months Ended		9 Months Ended		12 Months Ended
Concentrations - Additional Information (Detail)	Sep. 30, 2019 Agency Distributor	Sep. 30, 2018 Entity Agency Distributor	Sep. 30, 2019 Agency Distributor	Sep. 30, 2018 Entity Agency Distributor	Dec. 31, 2018
Concentration Risk [Line Items]
Number of financial institutions \| Entity		2		2
Number of distribution partners that were paid revenue \| Distributor	0	0	0	0
Minimum
Concentration Risk [Line Items]
Percentage of revenue as criteria for major distribution partners	10.00%	10.00%	10.00%	10.00%
Revenue \| Customer Concentration Risk
Concentration Risk [Line Items]
Number of advertising agencies \| Agency	1	1	1	1
Concentration risk, percentage		12.00%		15.00%
Revenue \| Customer Concentration Risk \| Maximum
Concentration Risk [Line Items]
Concentration risk, percentage	10.00%		10.00%
Accounts Receivable \| Customer Concentration Risk
Concentration Risk [Line Items]
Concentration risk, percentage					23.00%
Accounts Receivable \| Customer Concentration Risk \| Maximum
Concentration Risk [Line Items]
Concentration risk, percentage			10.00%

Revenue Recognition - Additional Information (Detail 1)	Sep. 30, 2019
Maximum \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-07-01
Disaggregation Of Revenue [Line Items]
Performance obligations for contracts, effective term	1 year

Segment Reporting and Geographic Information - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2019 Segment
Segment Reporting [Abstract]
Number of operating segments	1

Property and Equipment (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 28,635	$ 28,015
Less: Accumulated depreciation and amortization	(25,430)	(25,094)
Property and equipment, net	3,205	2,921
Computer and Other Related Equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	19,187	18,839
Purchased and Internally Developed Software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	6,681	6,878
Furniture and Fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,030	1,023
Leasehold Improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,737	$ 1,275

Leases - Additional Information (Detail) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
Leases - Additional Information (Detail) - USD ($)	Apr. 30, 2019	Sep. 30, 2019	Mar. 31, 2018	Sep. 30, 2019	Dec. 31, 2018	Apr. 30, 2018
Lessee Lease Description [Line Items]
Lease expiration date				Mar. 31, 2025
Payments for lease termination fee				$ 671,000
Contribution as credit against lease payments				$ 180,000
Contribution from lessor as reimbursement towards leasehold improvements		$ 180,000
Payments towards leasehold improvements			$ 373,000
Letter of credit amount payable						$ 575,000
Reduction in letters of credit	$ 100,000
Mississauga, Canada [Member]
Lessee Lease Description [Line Items]
Lease expiration date				Nov. 30, 2021
Lease commencement period				November 2016
Lease term (in months)		60 months		60 months
Wichita, Kansas [Member]
Lessee Lease Description [Line Items]
Lease term (in months)		120 days		120 days
Letter of Credit \| Certificates of Deposit \| Other Assets
Lessee Lease Description [Line Items]
Letters of credit outstanding amount					$ 575,000

Leases - Schedule of Lease Cost Recognized in Consolidated Statement of Operations and Other Information (Detail) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019 USD ($)	Sep. 30, 2019 USD ($)
Lease Cost [Abstract]
Operating lease cost	$ 423	$ 1,283
Short-term operating lease cost	30	88
Total operating lease cost	$ 453	$ 1,371
Other information:
Weighted-average remaining lease term - operating leases	5 years 4 months 24 days	5 years 4 months 24 days
Weighted-average discount rate - operating leases	5.00%	5.00%

Leases - Schedule of Operating Lease Liabilities (Detail) $ in Thousands	Sep. 30, 2019 USD ($)
Operating Leases Future Minimum Payments Due [Abstract]
Gross future operating lease payments	$ 8,959
Less: imputed interest	(1,419)
Present value of total operating lease liabilities	7,540
Less: current portion of operating lease liabilities	(1,506)
Total long-term operating lease liabilities	$ 6,034

Commitments, Contingencies, and Taxes - Additional Information (Detail) - USD ($)	Sep. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Nov. 30, 2018
Commitments Contingencies And Taxes [Line Items]
Long term commitment amount	$ 12,013,000
Percentage of valuation allowance	100.00%		100.00%
Strategic Technology
Commitments Contingencies And Taxes [Line Items]
Long term commitment amount		$ 2,500,000
Telmetrics Acquisition
Commitments Contingencies And Taxes [Line Items]
Maximum contingent consideration cash payable on acquisition				$ 3,000,000
Fair value of contingent consideration	$ 631,000,000		$ 1,500	$ 631,000,000

Acquisitions - Summary of Unaudited Proforma Financial Information (Detail) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2018
Business Acquisition Pro Forma Information [Abstract]
Revenue	$ 25,119	$ 77,066
Net loss applicable to common stockholders	$ (925)	$ (3,091)

Identifiable Intangible Assets from Acquisitions - Summary of Identifiable Intangible Assets from Acquisitions (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Acquired Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 21,478	$ 21,478
Accumulated Amortization	5,485	781
Net	15,993	20,697
Customer Relationships
Acquired Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	12,368	12,368
Accumulated Amortization	2,150	295
Net	10,218	12,073
Technologies
Acquired Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	5,879	5,879
Accumulated Amortization	1,728	258
Net	4,151	5,621
Non-compete Agreements
Acquired Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	2,559	2,559
Accumulated Amortization	1,311	184
Net	1,248	2,375
Tradenames
Acquired Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	672	672
Accumulated Amortization	296	44
Net	$ 376	$ 628

Goodwill - Additional Information (Detail)	9 Months Ended
Goodwill - Additional Information (Detail)	Sep. 30, 2019 USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill impairment loss	$ 0