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Business Wire
4 days ago
- Business
- Business Wire
Marchex Announces Second Quarter 2025 Results
SEATTLE--(BUSINESS WIRE)-- Marchex, Inc. (NASDAQ: MCHX), which harnesses the power of AI and conversational intelligence to drive operational excellence and revenue acceleration, today announced its financial results for the second quarter ended June 30, 2025. GAAP revenue was $11.7 million for the second quarter of 2025, compared to $12.1 million for the second quarter of 2024. Net income was $0.1 million for the second quarter of 2025 or $0.00 per diluted share, compared to a net loss of $0.8 million or $(0.02) per diluted share for the second quarter of 2024. Adjusted earnings before interest, taxes, depreciation, and amortization ("EBITDA") was a gain of $0.6 million for the second quarter of 2025, compared to a gain of $0.3 million for the second quarter of 2024. Adjusted EBITDA for the second quarter of 2025 includes $0.1 million of reorganization costs and excluding these amounts would result in an Adjusted EBITDA gain of $0.7 million. Adjusted non-GAAP income per share for the second quarter of 2025 was $0.02, compared to a loss per share of ($0.01) for the second quarter of 2024. Edwin Miller, Chief Executive Officer ("CEO") of Marchex, commented, 'The second quarter represented continued progress toward making 2025 an inflection point for our company. Based on continued technical and product developments, the second quarter saw us accelerate our investment transition into go forward growth initiatives. Additionally, we improved quarterly Adjusted EBITDA, net of reorganization costs, by nearly $1 million over the first quarter of 2025.' Continued Miller, 'Period to period there may be some financial variability based on timing with the new Engage platform migration completion (formerly 'OneStack'), but our technology and platform progress is leading to increasing operating and cost efficiencies. Collectively, we believe these benefits will accrue to more growth opportunities, gross margin expansion and operating leverage, which also means we can look to increase investment in sales, marketing, and product innovations as we move into 2026.' THE FOLLOWING FORWARD-LOOKING LOOKING STATEMENTS REFLECT MARCHEX'S EXPECTATIONS AS OF AUGUST 12, 2025 Marchex currently anticipates that both Revenue and Adjusted EBITDA will sequentially increase in the third quarter of 2025 as compared to the second quarter of 2025, with Adjusted EBITDA potentially increasing by more than 50% over second quarter levels. Marchex also currently anticipates that both Revenue and Adjusted EBITDA will be sequentially lower in the fourth quarter of 2025 as compared to the third quarter of 2025, due to the revenue impacts of certain customers not migrating, anticipated seasonality, and current macroeconomic factors, which it is anticipated will delay the achievement of Marchex's annual Revenue and Adjusted EBITDA run rate goals previously set for 2025. Added Miller, 'Throughout 2025, we have seen operating efficiency benefits begin to highlight the magnitude of our operating leverage, but we have also had to overcome migration revenue dilution, largely based on the timing and success of moving more than 1,000 customers to our new Engage platform throughout 2025, the vast majority of which has been completed. This does have short-term impacts on Revenue, including ancillary factors such as the timing of new sales launches or product utilization. Without these impacts, we would be seeing even higher sequential Revenue and Adjusted EBITDA progress. With that noted, the new Engage platform is a critical company accomplishment, representing a strategically key foundational element of our plan to support a market leading, vertically-focused conversational AI company with a growth path to more than $100 million in annualized revenue over time. With our belief that these primary migration initiatives will be completed by year end, we believe this bodes well for 2026, when sales will be in a position to accelerate on top of the substantial operating cost efficiencies achieved throughout 2025.' As noted in our first quarter earnings release (the 'Q1 Release'), the current macroeconomic environment continues to bring increased uncertainty with customers and prospects. Furthermore, new federal tariffs on imports have begun to have an adverse impact on various industries and vertical markets in which the Company operates, including automotive and auto services. These conditions make predicting actual 2025 performance and timing more difficult. The Company will continue to execute on its 2025 strategic plan, which it believes will lead to more success with new sales to existing and new customers, but acknowledges these conditions raise increased uncertainty regarding customer impacts, and as a result its actual financial results may be more variable in terms of revenue and adjusted EBITDA as reflected above. 2025 Business Update and Recent Strategic Product and Operational Expansion Strategic Product Launches and Sequential Accelerants: Over the course of 2025, Marchex is significantly expanding its product platform availability for customers and prospects. During the second quarter, Marchex launched its new unified user interface across Marchex's product suite, launched new vertical AI capabilities, and began testing and development of other new products and features, many of which will be launched during the balance of 2025. Gross Profit Margin Expansion: As the company realizes additional SaaS software revenue, increased sales of new products, and continued efficiency from its investments in cloud infrastructure and platform integration, Marchex continues to anticipate meaningful gross margin expansion into the future. New Expanded Partnership with FordDirect: Marchex recently announced an expanded partnership with FordDirect for its Engage for Sales and Service product offering. The new relationship includes multi-year access to its more than 3,000 franchised dealers for Marchex's dealer-facing products. This relationship significantly expands the reach of Marchex's dealer products and gives Ford dealers and retailers unmatched insights into customer interactions, helping drive revenue performance and customer and dealer satisfaction. New AI-Powered Conversational Intelligence Solutions for the Health Care Industry Launched: Marchex continues to expand its industry-leading vertical solutions with recent advancements in AI-driven sentiment analysis and the release of its Health Care solutions, to deliver compliant operational intelligence from patient conversations. Designed for health systems and ambulatory care facilities, the latest release introduces a new healthcare-specific AI solution that identifies patient intent and outcome types, and topics for emerging care needs. Marchex's offerings are tailored to the needs of each key vertical, allowing Marchex to provide prescriptive analytics uniquely calibrated to each industry's omnichannel conversational trends. Channel Expansion and One-to-Many Sales Opportunities: As noted in the Q1 Release, Marchex has launched its initial product into the Microsoft Azure Marketplace and AppSource. By transacting via Azure's global cloud platform, Marchex anticipates it can unlock new sales channels and reach a broader enterprise audience. The Company also expects to launch new products into additional Marketplaces along with other significant integration partners and channel partners throughout 2025 and into 2026. Product Awards: Marchex Engage for Auto Sales and Service recently won the '2025 AI Agent Product of the Year Award' by TMC, a global integrated media company. Marchex Engage for Auto Sales & Service is purpose-built for automotive dealerships and service centers, combining conversation AI and industry-specific intelligence to turn everyday conversations into revenue-generating actions. This award honors groundbreaking AI innovations that elevate performance and deliver outstanding business results across industries and functions. New Company Website: Marchex launched its new corporate website during the second quarter of 2025. The new customer-facing brand reinforces the dynamic characteristics of Marchex new AI-driven product suite for Fortune 500 businesses and more in some of the largest vertical markets. Additional New Growth Initiatives Planned for 2025 Technology, Product, and Feature Expansion: Marchex anticipates significantly expanding its award-winning suite of AI-powered conversational intelligence solutions throughout 2025 and into 2026, as noted in the Q1 Release. New solutions include: AI Benchmarking: Marchex expects to launch shortly its AI Benchmarking to all customers on the Company's new UI. This will include industry-specific sales and marketing insights driven from real-time customer conversations across the vertical markets for Fortune 500 companies and other customers. AgentAI Optimizer: In the coming months, Marchex expects to launch its AgentAI Optimizer, which prescriptively analyzes the performance and effectiveness of third-party AI-Agents for Fortune 500 businesses and other customers. Marchex GPT: In the second half of 2025, the Company expects to launch Marchex GPT, which is its business-specific, large language model capabilities that enables Fortune 500 and other businesses to effectively search their own structured data. Miller concluded, 'Marchex is one of the few public AI-powered conversational intelligence companies which is part of a transformative market opportunity and is also generating positive Adjusted EBITDA while increasing investment in customers and products. With the collective benefit of our recent technology, platform and product progress, we have a meaningful opportunity to deliver increased value to our customers, which is what is driving our expanding sales pipeline. As we execute through the balance of 2025 and into 2026, we believe that we are well positioned to successfully deliver on our go forward strategic and financial goals.' Management will hold a conference call, starting at 5:00 p.m. Eastern Time on Tuesday, August 12, 2025, to discuss its second quarter 2025 financial results and other Company updates. Access to the live webcast of the conference call will be available online from the Investor Relations section of Marchex's website at An archived version of the webcast will also be available at the same location two hours after completion of the call. About Marchex Marchex harnesses the power of AI and conversational intelligence to provide actionable insights aligned with prescriptive vertical market data analytics, driving operational excellence and revenue acceleration. Marchex enables sales, marketing, service, operations, and executive teams to optimize customer journey experiences across omnichannel communication channels. Through our prescriptive analytics solutions, we enable the alignment of enterprise strategy, empowering businesses to increase revenue through informed decision-making and strategic execution. Marchex provides conversational intelligence AI-powered solutions for market-leading companies in leading B2B2C vertical markets, including several of the world's most innovative and successful brands. Please visit or @marchex on X, where Marchex discloses material information from time to time about the Company, its financial information, and its business. Forward-Looking Statements This earnings release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included in this earnings release regarding our strategy, future operations, future financial position, future revenues, other financial guidance, acquisitions, dispositions, projected costs, prospects, plans and objectives of management are forward-looking statements. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements we make. There are a number of important factors that could cause Marchex's actual results to differ materially from those indicated by such forward-looking statements including but not limited to product demand, order cancellations and delays, competition and general economic conditions. These factors are described in greater detail in the "Risk Factors" section of our most recent periodic report and registration statement filed with the Securities and Exchange Commission. All of the information provided in this release is as of August 12, 2025, and Marchex undertakes no duty to update the information provided herein. In the event the earnings release contains links to third party websites or materials, the links are provided solely as a convenience to the user. Marchex is not responsible for the content of linked third-party sites or materials and does not make any representations regarding the content or accuracy thereof. Non-GAAP Financial Information To supplement Marchex's consolidated financial statements presented in accordance with GAAP and to provide clarity internally and externally, Marchex uses certain non-GAAP measures of financial performance and liquidity, including adjusted EBITDA and adjusted non-GAAP income (loss) per share. Financial analysts and investors may use adjusted EBITDA to help with comparative financial evaluation to make informed investment decisions. Financial analysts and investors may use adjusted non-GAAP income (loss) per share to analyze Marchex's financial performance since these groups have historically used earnings per share related measures, along with other measures, to estimate the value of a Company, to make informed investment decisions, and to evaluate a Company's operating performance compared to that of other companies in its industry. Adjusted EBITDA represents net income (loss) before (1) interest, (2) income taxes, (3) amortization of intangible assets from acquisitions, (4) depreciation and amortization, (5) stock-based compensation expense, and (6) acquisition and disposition-related costs. Adjusted EBITDA is a metric by which Marchex has evaluated the performance of its business, to include being the basis on which Marchex's internal budgets have been based and by which Marchex's management has been evaluated. This measure is used by our management to understand and evaluate our core operating performance and trends, and management believes it provides meaningful information regarding the Company's liquidity and ability to fund its operations and financing obligations. Adjusted non-GAAP income (loss) per share represents adjusted non-GAAP income (loss) divided by GAAP diluted shares outstanding. Adjusted non-GAAP income (loss) generally captures those items on the statement of operations that have been, or ultimately will be, settled in cash exclusive of certain items that are not indicative of Marchex's recurring core operating results and represents net income (loss) applicable to common stockholders plus the net of tax effects of: (1) stock-based compensation expense, (2) acquisition and disposition related costs, (3) amortization of intangible assets from acquisitions, and (4) interest (income) expense and other, net. Marchex's management believes that investors should have access to, and Marchex is obligated to provide, the same set of tools that management uses in analyzing the Company's results. These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP, and should not be considered in isolation, as a substitute for, or superior to, GAAP results. Marchex's non-GAAP financial measures may be defined differently from time to time and may be defined differently than similar titled terms used by other companies, and accordingly, care should be exercised in understanding how Marchex defines its non-GAAP financial measures in this release. Marchex endeavors to compensate for the limitations of the non-GAAP measures presented by providing the comparable GAAP measure with equal or greater prominence, GAAP financial statements, and detailed descriptions of the reconciling items and adjustments, including quantifying such items, to derive the non-GAAP measure. MARCHEX, INC. AND SUBSIDIARIES Consolidated Balance Sheets (In Thousands) (Unaudited) June 30, December 31, 2025 2024 Assets Current assets: Cash and cash equivalents $ 10,491 $ 12,767 Accounts receivable, net 7,561 7,072 Prepaid expenses and other current assets 3,043 2,439 Total current assets 21,095 22,278 Property and equipment, net 1,736 1,811 Other assets, net 768 397 Right-of-use lease assets 827 1,156 Goodwill 17,558 17,558 Total assets $ 41,984 $ 43,200 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 2,920 $ 1,349 Accrued benefits and payroll 992 2,133 Other accrued expenses and current liabilities 3,684 4,197 Deferred revenue and deposits 806 1,093 Operating lease liability, current 330 495 Total current liabilities 8,732 9,267 Deferred tax liabilities 658 579 Operating lease liability, non-current 551 721 Total liabilities 9,941 10,567 Stockholders' equity: Class A common stock 49 49 Class B common stock 393 390 Additional paid-in capital 359,676 358,372 Accumulated deficit (328,075 ) (326,178 ) Total stockholders' equity 32,043 32,633 Total liabilities and stockholders' equity $ 41,984 $ 43,200 Expand MARCHEX, INC. AND SUBSIDIARIES (In Thousands) (Unaudited) Reconciliation of Net Income (Loss) to Adjusted EBITDA Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net income (loss) applicable to common stockholders $ 85 $ (756 ) $ (1,897 ) $ (2,206 ) Interest (income) expense and other, net (626 ) 31 (623 ) 109 Income tax expense 5 3 114 62 Amortization of intangible assets from acquisitions — 151 — 301 Amortization of capitalized software development costs 10 — 10 — Depreciation and amortization 618 385 1,250 708 Stock-based compensation 556 437 1,011 870 Adjusted EBITDA $ 648 $ 251 $ (135 ) $ (156 ) Expand MARCHEX, INC. AND SUBSIDIARIES (In Thousands) (Unaudited) Reconciliation of Net Income (Loss) per Share to Adjusted Non-GAAP Income (Loss) (1) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net income (loss) per share applicable to common stockholders, diluted $ 0.00 $ (0.02 ) $ (0.04 ) $ (0.05 ) Stock-based compensation 0.01 0.01 0.02 0.02 Amortization of intangible assets from acquisitions — — — 0.01 Interest income (expense) and other, net 0.01 — 0.01 — Adjusted non-GAAP income (loss) per share $ 0.02 $ (0.01 ) $ (0.01 ) $ (0.02 ) Shares used to calculate diluted net income (loss) per share applicable to common stockholders (GAAP) and adjusted non-GAAP income (loss) per share 43,902 43,064 43,812 43,059 Expand (1) For the purpose of computing the number of diluted shares for adjusted non-GAAP income (loss) per share, Marchex uses the accounting guidance that would be applicable for computing the number of diluted shares for GAAP net income (loss) per share. Expand
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
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
