Marchex 2013 Results: $152.6m revenue, Archeo sells 262 domains in Q4 for $1.6m ($6107 average/domain)

Marchex, Inc. (NASDAQ:MCHX), a mobile advertising technology company, today announced its financial results for the fourth quarter and full year ended December 31, 2013.

“Marchex made significant strides in 2013 as we expanded our Call Analytics technology, won new clients and retained and grew important, existing relationships,” said Russell Horowitz, Chairman and CEO of Marchex. “Specifically, our Call Analytics platform connected and analyzed hundreds of millions of calls on behalf of our clients; we added new advertisers to our Call Marketplace and we grew our mobile distribution partner network. This progress builds a strong foundation for 2014 as we enter the year with product and business momentum.”

Q4 2013 Financial Highlights

• GAAP revenue was $39.7 million for the fourth quarter of 2013, compared to $32.4 million for the fourth quarter of 2012. Non-GAAP revenue², which excludes domain sales recorded in GAAP revenue, was $38.1 million for the fourth quarter of 2013.
• GAAP net income from continuing operations was $597,000 for the fourth quarter of 2013, compared to a GAAP net loss from continuing operations of $33.5 million for the fourth quarter of 2012.
• GAAP net income from continuing operations attributable to common stockholders per diluted share was $0.02 for the fourth quarter of 2013. This compares to GAAP net loss from continuing operations attributable to common stockholders per diluted share of $1.00 for the fourth quarter of 2012.

Full Year 2013 Consolidated Financial Results

• GAAP revenue was $152.6 million for 2013, compared to $132.8 million for 2012. Non-GAAP revenue², which excludes domain sales recorded in GAAP revenue, was $150.1 million for 2013.
• GAAP net income from continuing operations applicable to common stockholders was $957,000 or $0.03 per diluted share for 2013. This compares to GAAP net loss from continuing operations applicable to common stockholders of $34.3 million or $1.03 per diluted share in 2012.

Marchex Q4 and Recent Call-Driven Business Highlights:

• Revenue. Call-Driven and other related revenue was $34.5 million for the fourth quarter of 2013 – a 21 percent increase compared to $28.5 million for the fourth quarter of 2012.
• Products. We recently released data showing that Marchex blocked approximately 40 million phone calls in 2013 to U.S. small businesses through its Clean Call™ technology. Marchex started aggressively going after spam calls in 2011, after noticing the detrimental effect these calls were having on businesses. Clean Call™ technology is now used by hundreds of thousands of advertisers to detect and block telemarketers, robocallers and other spam dialers. Marchex found that these calls cost small businesses about half a billion dollars a year in lost productivity.
• Customers and Partners. We recently announced a preferred partnership with MapQuest to connect mobile and online consumers to businesses via pay-for-call ads. MapQuest is one of the leading mapping brands online, reaching 28.4 million web users and 13.7 million mobile and tablet users, with 4.0 million users across devices in November 2013, according to comScore Media Metrix. The partnership allows Marchex to leverage MapQuest’s broad reach of consumers across every digital channel for Pay-for-Call advertising.

Archeo Q4 Business Highlights:

• Revenue. Archeo non-GAAP revenue was $3.7 million for the fourth quarter of 2013, which excludes domain sales recognized in GAAP revenue.
• Domains sales. During the fourth quarter of 2013, Archeo sold a total of 262 domains that yielded $1.6 million.