Marchex, Inc. (NASDAQ:MCHX), a leader in mobile performance advertising, today announced its financial results for the first quarter ended March 31, 2013.
“Momentum across our Call Products drove accelerating growth in the first quarter,” said Russell Horowitz, Chief Executive Officer of Marchex. “Advertisers are spending more marketing dollars going after mobile consumers and they want high returns on that investment. Marchex is well-positioned to fill that need with our suite of products that delivers exceptional mobile advertising performance and measurability.”
Q1 2013 Financial Highlights:
- Revenue was $36.2 million for the first quarter of 2013, compared to $35.5 million for the same period in 2012.
- GAAP net income applicable to common stockholders was $85,000 for the first quarter of 2013 or $0.00 per diluted share. This compares to a GAAP net loss applicable to common stockholders of $788,000 or $0.02 per diluted share for the same period in 2012. The first quarter 2013 results included non-cash stock-based compensation expense of $1.9 million, compared to non-cash stock-based compensation expense of $3.9 million for the same period in 2012.
- Adjusted non-GAAP EPS1 for the first quarter of 2013 was $0.04, compared to $0.05 for the same period in 2012.
- Adjusted OIBA1 was $2.2 million for the first quarter of 2013, compared to $3.3 million for the same period in 2012.
- Adjusted EBITDA1 was $3.1 million for the first quarter of 2013, compared to $4.3 million for the same period in 2012.
1 Reconciliations of non-GAAP measures are included in the financial tables attached to this press release and we encourage investors to examine the reconciling adjustments between the GAAP and non-GAAP measures.
Marchex Q1 and Recent Call-Driven Business Highlights:
- Revenue. Call-driven and other related revenue was $31.1 million for the first quarter of 2013 – a 17 percent increase compared to $26.7 million for the first quarter of 2012.
- Products. Five call analytics and related performance advertising patents filed in the quarter, adding to Marchex’s expanding patent portfolio.
- Customers and Partners. Added more than 40 new national and reseller customers across several categories, such as Auto Services, Financial services, and Home Services. Also added several partners, including Kenshoo and Geary LSF, which will integrate Marchex Call Analytics into their product offering.
Archeo Q1 Highlights:
- Archeo, Inc. (“Archeo”), a division of Marchex, includes non-call driven assets, which consist of domain and directory assets, pay-per-click and reputation management products.
- Archeo revenue was $5.1 million for the first quarter of 2013.
- During the 1st quarter of 2013, Archeo sold a total of 50 domains that yielded $1.4 million.
Share Repurchase Program Update
Marchex purchased 31,000 shares of its outstanding Class B common stock for a total price of$119,000. This brings Marchex’s total shares repurchased under its stock repurchase program to 11.3 million shares, or 30% of its outstanding common stock.
The following forward-looking statements reflect Marchex’s expectations as of May 2, 2013. Marchexanticipates providing updates upon completion of the spin-off.
|Financial guidance for the fiscal year ending December 31, 2013:|
|Adjusted OIBA:||$10.5-$11.5 million|
|Adjusted EBITDA:||Estimated add-backs of approximately $4 million in additional depreciation and amortization to adjusted OIBA, implying an adjusted EBITDA of $14.5-$15.5 million|
For Call Driven Revenue, Marchex is forecasting a range of $127-$130 million.
2013 GAAP income (loss) from operations is expected to be ($2.9) million or better, assuming stock-based compensation between $9.0-$11.0 million and amortization of intangible assets from acquisitions between $3.0-$3.5 million. This estimate excludes any prospective gain or loss on sales and disposals of intangible assets or costs related to the separation of Archeo.
|Financial guidance for the Second Quarter ending June 30, 2013:|
|Adjusted OIBA:||$1.5-$2.5 million|
|Adjusted EBITDA:||Estimated add-backs of approximately $1 million in additional depreciation and amortization to adjusted OIBA, implying an adjusted EBITDA of $2.5-$3.5 million|
For Call Driven Revenue, Marchex is forecasting more than $32 million.
Second quarter GAAP income (loss) from operations is expected to be ($3.2) million or better, assuming stock-based compensation between $2.5-$3.5 million and amortization of intangible assets from acquisitions between $0.8-$1.2 million. This estimate excludes any prospective gain or loss on sales and disposals of intangible assets. In the short-term, the above estimates for our measures of profitability may be impacted further by the timing of investments and costs related to the separation of Archeo.
Conference Call and Webcast Information
Management will hold a conference call, starting at 5:00 p.m. ET on Thursday, May 2, 2013 to discuss its first quarter ended March 31, 2013 financial results, and other company updates. Access to the live webcast of the conference call will be available online from the Investors section of the Marchex’s website at www.marchex.com. An archived version of the webcast will also be available at the same location, beginning two hours after completion of the call.
Marchex, Inc. delivers customer calls to businesses and analyzes those calls so companies can get the most out of their mobile advertising.
Marchex supports its customers through a unique technology platform that has three primary components: (1) Call Analytics, which powers all of Marchex’s advertising solutions, and allows partners to leverage data and insights that accurately measure the performance of mobile, online and offline call advertising; (2) Digital Call Marketplace, which annually connects hundreds of millions of consumer calls to advertisers from a range of mobile and online sources on a Pay For Call basis; and(3) Local Leads, a white-labeled, full service digital advertising solution for small business resellers that drives quality phone calls and other leads to their small business advertisers.
On November 1, 2012, Marchex announced its intention to pursue separation of its business into two distinct, publicly-traded entities. Upon completion of the proposed tax-free spin-off transaction, Marchex’s existing shareholders would hold interests in: (1) Marchex, a pure play mobile advertising company focused on calls, and (2) Archeo, Inc., a premium domain and advertising marketplace. The spin-off is expected to be completed in 2013.
Marchex is based in Seattle. To learn more, please visit www.marchex.com.