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Yahoo
14-05-2025
- Business
- Yahoo
Q1 2025 Marchex Inc Earnings Call
Trevor Caldwell; Senior Vice President, Strategic Initiatives & Investor Relations; Marchex Inc Edwin Miller; Chief Executive Officer; Marchex Inc Brian Nagle; Principal Financial Officer and Principal Accounting Officer; Marchex Inc Operator Good afternoon and thank you for joining today's first-quarter 2025 Marchex earnings conference call. (Operator Instructions)I now hand the call over to Trevor Caldwell, Senior Vice President of Investment Relations and Strategic Initiatives. You may proceed. Trevor Caldwell Thank you, Joel. Good afternoon, everyone, and welcome to Marchex's business update and first-quarter 2025 conference call. Joining us today are Edgar Miller, our CEO; Russ Horowitz, our Chairman of the Board; and Brian Nagel, our SVP, Corporate we get started, I would like to take this opportunity to remind you that our remarks today will include forward-looking statements, including references to our financial and operational performance, and actual results may differ materially from those contemplated by these forward-looking statements. Risks and uncertainties that could cause these results to differ materially are set forth in today's earnings press release and in our most recent annual and quarterly report filed with the SEC. Any forward-looking statements that we make on this call are based on assumptions as of today, and we undertake no obligation to update these statements for subsequent this call, we will present both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in today's earnings press release. The earnings press release is available on the Investor Relations section of our this time, I'd like to turn the call over to Edwin. Edwin Miller Thank you, Trevor. Good afternoon, everyone, and thank you for joining us today. We are excited to mark the successful combination of key milestones in Marchex's two-year strategic, financial, and operational transformation. Over this period, Marchex has evolved into a SaaS-based prescriptive analytics provider powered by AI and proprietary first-party conversational data. This evolution has redefined who we are from our core technology platform to our product suite and how we serve our begin with our new technology foundation. With our OneStack platform unification initiative, we have consolidated the company's technology stack and data architecture into a single cloud-based architecture. This foundational project centralizes Marchex's large repository of first-party conversational data and powers the application of generative AI across the platform. This architecture now serves as the backbone for all future innovation and is already delivering impact across our business and for our customers. Because of this transformation, we have strengthened our financial profile are already seeing benefits. Our gross margin has increased by approximately 8% compared to the first quarter of 2023. OneStack allows us to operate with a more efficient cost structure, giving us the ability as we go forward to drop significant additional leverage to the bottom line as our product and customer momentum increases. We feel Marchex is incredibly well positioned to expand and drive incremental profitability as we introduce new AI products and features and drive more revenue. We believe that we are now at a strategic inflection point in our a new, more scalable, and profitable technology foundation, we are transitioning our focus to acceleration across our business. This will involve capitalizing on current momentum through launching innovative AI solutions, expanding sales channels, and deepening our presence in high-value verticals. We are strategically very well positioned in our four core verticals, which are auto, auto services, home services, and healthcare as well as other select industries. Additionally, we have now expanded our product capabilities to support all four business functions for our existing and new customers, including sales, marketing, service, and operations. In terms of progress, I want to highlight just a few we announced an expanded relationship with one of the largest Fortune 500 auto OEMs to include access to their base of more than 3,000 franchised auto dealerships to sell our flagship Engage for Sales product and our new Engage for Service product. This represents a new multimillion dollar opportunity for Marchex. We announced our new Engage for Service product just over a month ago, which enables Marchex to deliver AI-driven insights on service calls, which helps auto service departments recover missed opportunities, boost revenue, and increase lifetime customer value. This new AI-powered conversational intelligence solution is designed to help service centers better understand their customer engagement, elevates customer satisfaction, recover lost opportunities and increase revenue. Auto service centers are the backbone of dealerships, handling approximately 50% of all inbound now has a deferred or exclusive access to approximately 9,000 auto franchise dealerships with our current relationships. With our Engage offering now including both sales and service, we are opening incremental opportunity for Marchex to meaningfully expand our footprint and potential sell-through to a very large vertical market over time. Second, I'm excited to talk about the launch of our new user interface. This month, we launched our first ever comprehensive unified interface for customers across our products, which is an integrated element of the OneStack cloud technology platform. This initiative will lead to a unified customer experience and create more seamless upsell opportunities with new click to buy the new UI, we can deliver broadly applicable new AI features such as industry and customized benchmarking to our customers. Third, I'm excited to share that we have launched our first product into the Microsoft marketplace, marking an important step in expanding our go-to market strategy from one to one to one to many. As previously announced, Marchex entered to a strategic collaboration with Microsoft through the Microsoft Cloud AI Partner Program. This partnership makes Marchex's AI-powered conversational analytics solution globally accessible via Azure, providing a powerful channel to reach a broader enterprise audience. By leveraging a combination of direct enterprise sales, OEM relationships, technology integrators and platforms like Azure, Marchex is scaling our solutions more efficiently and solidifying our position as a trusted provider of conversational intelligence for large the coming months, we expect to introduce additional products across other leading marketplaces as well as with key integration and channel partners. Over time, we expect the combination of new AI-powered vertical signals and channel partnerships will be an important driver for growth. These initiatives are the first of many executed so far in 2025. There is much more to come as highlighted in today's release. Our business' ability to execute innovation across our product platform, expand and add new customer relationships, and open new markets is just that, I will hand the call to Brian to briefly overview some of our financial results and our guidance for 2025. Brian Nagle Thank you, for the first quarter of 2025 was $11.4 million. As communicated in today's press release, first-quarter revenue was affected by some seasonal call traffic factors and the timing of when we began to benefit from certain new sales, which we believe on a run rate basis will still accrue to the benefit of our overall 2025 financial operating expenditures, we continue to see efficiencies throughout the business as we benefited from the realignment of the organization following the completion of OneStack. We anticipate that our gross profit margins in particular should improve as we are carrying an overall lower cost cost structure going forward, which could enable significant future operating leverage for the business as new products and features sell through. On the balance sheet, we expect the second quarter to see cash balances stable to up relative to the first-quarter to annualized guidance, our 2025 financial plan reflects the belief that during 2025, we can grow to achieve more than $12.5 million in quarterly revenue or an annualized revenue run rate of $50 million or better by the end of 2025. With our progress with a more efficient cost structure at these revenue levels, we believe we can achieve more than $1.5 million in quarterly adjusted EBITDA or an annualized run rate of $6 million or more in adjusted do want to acknowledge there is currently some uncertainty due to the macroeconomic climate and lack of visibility. There are scenarios that could cause potential customers' impacts and increase the variability of actual financial performance. However, with the current momentum in the business, we believe that we are in a strong position to sell more through our expanding product platform and expanding customer relationships. As this progress materializes, we believe that we are in a position to realize greater overall profitability through our efficiency initiatives in the business as we move forward.I also want to note Marchex's adoption of a new share repurchase program and the sale of an unused domain as reported in today's release. If you can please see our press release for those that, I will hand the call back over to Edwin. Edwin Miller Thank you, Brian. We believe that Marchex has reached a key strategic inflection point. We are actively executing on a long-term vision to scale Marchex into a $100 million annual revenue business in the years ahead. Reaching this milestone will require building on our current momentum by launching innovative AI-driven solutions, broadening our sales channels, and strengthening our position in high-value verticals and expanded business functions, all while continuing to leverage our significant base of first-party conversational data to drive innovative solutions for Fortune 500 businesses and are highly focused on making 2025 a year of acceleration. With a strong foundation and a clear strategic vision in place, we are confident in our ability to drive sustainable growth, maintain financial discipline, and deliver meaningful value to both our customers and shareholders. I want to personally thank our team for their hard work and dedication to helping this business reach this important inflection point. I look forward to updating you in the coming that, I will hand the call back to the operator. Operator Thank you. We will now open the line for questions. (Operator Instructions)There are no questions in queue. I'll hand the call back over to the management team for concluding remarks. Edwin Miller Thank you. Thank you, everyone, for attending the call. We look forward to future dialogue with our shareholders. Brian Nagle Thank you, everyone. Operator That concludes today's conference call. Thank you for your participation. You may now disconnect your lines.
Yahoo
01-05-2025
- Business
- Yahoo
One Marchex Insider Raised Stake By 1,107% In Previous Year
From what we can see, insiders were net buyers in Marchex, Inc.'s (NASDAQ:MCHX ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it. Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares. Our free stock report includes 2 warning signs investors should be aware of before investing in Marchex. Read for free now. In the last twelve months, the biggest single purchase by an insider was when Chief Executive Officer Edwin Miller bought US$272k worth of shares at a price of US$1.36 per share. That means that an insider was happy to buy shares at around the current price of US$1.47. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Marchex insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was Edwin Miller. Edwin Miller bought 305.57k shares over the last 12 months at an average price of US$1.49. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below! See our latest analysis for Marchex Marchex is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying. I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Marchex insiders own about US$12m worth of shares. That equates to 18% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment. It doesn't really mean much that no insider has traded Marchex shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Marchex and their transactions don't cause us concern. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that Marchex has 2 warning signs and it would be unwise to ignore these. Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies. For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
07-03-2025
- Business
- Yahoo
Marchex Inc (MCHX) Q4 2024 Earnings Call Highlights: Navigating Challenges with Strategic ...
Revenue: $11.9 million for Q4 2024, down from $12.4 million in Q4 2023. Operating Expenses: $12.9 million for Q4 2024, compared to $12.6 million in Q4 2023. Cost of Revenues: $4.4 million for Q4 2024, with improved percentage year-over-year. Sales and Marketing Costs: $3.4 million for Q4 2024, increased from Q4 2023. Product Development Costs: $2.8 million for Q4 2024. Adjusted EBITDA: Loss of $386,000 for Q4 2024, down from a gain of $112,000 in Q4 2023. GAAP Net Loss: $1.9 million for Q4 2024, or negative $0.04 per diluted share, compared to a loss of $1.1 million or negative $0.02 per diluted share in Q4 2023. Adjusted Non-GAAP Loss: Negative $0.03 per share for Q4 2024, compared to $0.00 per share in Q4 2023. Cash on Hand: Approximately $12.8 million at the end of Q4 2024. Warning! GuruFocus has detected 5 Warning Signs with MCHX. Release Date: March 06, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Marchex Inc (NASDAQ:MCHX) successfully completed the OneStack initiative, unifying their data stacks into a single cloud-based architecture, optimizing performance and scalability. The company is positioned to accelerate innovation and launch growth initiatives throughout 2025, with a focus on building a $100 million revenue business. Marchex Inc (NASDAQ:MCHX) plans to introduce new AI-powered products and expand sales channels, including a partnership with Microsoft, enhancing their market position. The company is implementing a unified user interface and single sign-on, improving customer experience and enabling efficient cross-sell and upsell capabilities. Marchex Inc (NASDAQ:MCHX) anticipates positive adjusted EBITDA for the full year 2025, driven by revenue growth and operational discipline. Revenue for the fourth quarter of 2024 was $11.9 million, a decrease from $12.4 million in the same quarter last year. Adjusted EBITDA for the fourth quarter of 2024 was a loss of $386,000, down from a positive $112,000 in the fourth quarter of 2023. GAAP net loss for the fourth quarter of 2024 was $1.9 million, compared to a loss of $1.1 million in the fourth quarter of 2023. The company experienced typical seasonal decreases in call volumes, with some headwinds in customer segments like small business resellers. Operating expenses increased in the fourth quarter of 2024, with total operating costs rising to $12.9 million from $12.6 million in the fourth quarter of 2023. Q: Can you discuss what gives you confidence in the sequential revenue improvement throughout the year and how this differs from past expectations? A: Edwin Miller, CEO, and Russell Horowitz, Executive Chairman, highlighted the technological advancements, such as the integration of Generative AI and the OneStack platform, which streamline operations and enhance product offerings. These innovations, along with a unified user interface and expanded sales channels, position Marchex for accelerated growth in 2025, differentiating it from previous years. Q: How might tariffs impact Marchex's market presence, particularly with auto OEMs? A: Russell Horowitz stated that while there are uncertainties regarding tariffs, there have been no specific disruptions reported by customers. Marchex remains focused on aligning with the strategic roadmaps of its clients, and any potential impact from tariffs will be addressed as it arises. Q: What are the strategic benefits of the OneStack platform and unified UI for Marchex? A: Edwin Miller explained that the OneStack platform consolidates multiple interfaces into a single, seamless experience, enhancing customer access to AI signals. This integration supports a more efficient go-to-market strategy and enables better cross-functional sales opportunities, contributing to the company's growth objectives. Q: How is Marchex planning to leverage its first-party data for growth? A: Russell Horowitz mentioned that Marchex is utilizing its first-party data to develop new AI signals and vertical-specific solutions. This approach allows the company to target customers more effectively and expand its market reach, particularly in service-related business units. Q: What are the anticipated financial outcomes for Marchex in 2025? A: Brian Nagle, SVP Corporate Controller, indicated that Marchex expects revenue growth and improved gross margins in 2025. The company aims for positive adjusted EBITDA, driven by increased revenue and operational efficiencies, with potential reinvestment into growth initiatives. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
