Marchex, Inc. (NASDAQ:MCHX), a mobile advertising
technology company, today announced its financial results for the
fourth quarter and full year ended December 31, 2014.
“Over the last several years, we have focused on bringing
visibility to the mobile advertising world through our call
analytics platform. Early on we saw the makings of a giant
advertising measurement opportunity as mobile experiences would
become a major driver of sales both online and offline, including
consumer calls to businesses,” said Pete Christothoulou, Chief
Executive Officer of Marchex. “In 2015 and beyond, we will continue
to support enterprise clients through call analytics product
innovations combined with delivering incredible customer
experiences.”
Q4 2014 Financial
Highlights1
- GAAP revenue was $33.3
million for the fourth quarter of 2014, compared to $39.7
million for the fourth quarter of 2013.
- GAAP net income from continuing
operations was $571,000 for the fourth quarter of 2014, compared to
GAAP net income from continuing operations of $597,000 for the
fourth quarter of 2013.
- GAAP net income from continuing
operations attributable to common stockholders per diluted share
was $0.01 for the fourth quarter of 2014. This compares to GAAP net
income from continuing operations attributable to common
stockholders per diluted share of $0.02 for the fourth quarter of
2013.
Q4 2014 Q4 2013 GAAP
Revenue $33.3 million $39.7 million
Call-Driven and related revenue5 $30.3 million
$34.5 million
Non-GAAP Results: Call-Driven
Adjusted OIBA4 $2.5 million $1.7 million
Call-Driven Adjusted EBITDA4 $3.4 million
$2.6 million
Adjusted OIBA4 $3.5
million $4.3 million
Adjusted EBITDA4
$4.4 million $5.2 million
Archeo Revenue including domain gains and sales2,4
$3.0 million $5.2 million
Domain gains and
sales2 $1.7 million $1.6 million
- Adjusted non-GAAP EPS3 from continuing
operations for the fourth quarter of 2014 was $0.05, compared to
$0.07 for the fourth quarter of 2013.
Full Year 2014 Financial
Highlights1
- GAAP revenue was $182.6
million for 2014, compared to $152.6 million for 2013.
- GAAP net loss from continuing
operations was $19.4 million for 2014, which includes the effect of
a non-cash charge to income tax expense of $22.3 million for a
valuation allowance on our deferred tax assets recorded in the
third quarter, compared to GAAP net income from continuing
operations of $957,000 for 2013.
- GAAP net loss from continuing
operations attributable to common stockholders per diluted share
was $0.49 for 2014. This compares to GAAP net income from
continuing operations attributable to common stockholders per
diluted share of $0.03 for 2013.
FY 2014 FY 2013 GAAP
Revenue $182.6 million $152.6 million
Call-Driven and related revenue5 $168.1
million $135.1 million
Non-GAAP Results:
Call-Driven Adjusted OIBA4 $11.1 million
$6.3 million
Call-Driven Adjusted EBITDA4
$14.7 million $9.9 million
Adjusted OIBA3,
4 $17.2 million $15.8 million
Adjusted
EBITDA3, 4 $20.9 million $19.5 million
Archeo Revenue including
domain gains and sales2,4 $14.5 million
$21.2 million
Domain gains and sales2 $7.4
million $6.2 million
1 In July 2013, certain pay-per-click assets were sold. As a
result, the financial results of these pay-per-click assets are
presented as discontinued operations, net of tax in our condensed
consolidated statements of operations in accordance with GAAP, and
are excluded from all other results unless otherwise noted.
2Includes domain sales recognized in gains on sales and
disposals of intangible assets in 2013 and domain sales recognized
in GAAP revenue. In September 2013 upon the launch of its domain
marketplace, the Company commenced recognizing domain sales as
revenue.
3 Adjusted OIBA, Adjusted EBITDA and Non-GAAP EPS include the
impact of domain gains and sales. Historically, these non-GAAP
measures excluded the impact of domain gains and sales.
4 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.
5Allstate contributed revenue of $48.8 million and $18.0 million
in 2014 and 2013, respectively. Substantially all of the 2014
revenue related to the nine months ended September 30, 2014.
Marchex Q4 2014 and Recent Call-Driven
Business Highlights:
- Revenue. Call-Driven and related
revenue was $30.3 million for the fourth quarter of 2014 compared
to $34.5 million for the fourth quarter of 2013.
- Products. The Company recently
launched Marchex Call Analytics for Search, the newest addition to
its Call Analytics platform. For the first time, enterprise-level
marketers can track and measure which keywords drive sales from
millions of mobile consumers who call businesses directly from
click-to-call ads on their smartphones. Marketers can then improve
campaigns in real time based on this data.
Non-Operating Q4 2014
Highlights:
Marchex purchased 669,000 shares or 2% of its outstanding Class
B common stock for a total price of $2.5 million under its new
share repurchase program established in November 2014.
Business Outlook
The following forward-looking statements reflect Marchex's
expectations as of February 25, 2015, and exclude any contribution
from Archeo operations, including domain sales, and discontinued
operations. Archeo operating results would be additive to our
Call-Driven revenue, profitability, and other measures
below:
Call-Driven
financial guidance for the First Quarter ending March 31,
2015
Call-Driven Revenue $32 million or more Call-Driven
Adjusted OIBA 1 $1.5 million or more Call Driven Adjusted
EBITDA 1 $2.5 million or more
1 These non-GAAP Call-Driven measures assign all Marchex
corporate overhead costs to the Call-Driven results.
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.
Conference Call and Webcast
Information
Management will hold a conference call, starting at 5:00 p.m. ET
on Wednesday, February 25, 2015 to discuss its fourth quarter and
year ended December 31, 2014 financial results, and other company
updates. Access to the live webcast of the conference call will be
available online from the Investors section of 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.
About Marchex
Marchex is a mobile advertising technology company. The company
provides a suite of products and services for businesses that
depend on consumer phone calls to drive sales. Marchex’s mobile
advertising platform delivers new customer phone calls to
businesses, while its technology analyzes the data in these calls
to help maximize ad campaign results. Marchex disrupts traditional
advertising models by giving businesses full transparency into
their ad campaign performance and charging them based on new
customer acquisition.
Please visit www.marchex.com,
blog.marchex.com or @marchex on Twitter (Twitter.com/Marchex),
where Marchex discloses material information from time to time
about the company, its financial information, and its business.
Forward-Looking
Statements:
This press release contains forward-looking statements that
involve substantial risks and uncertainties. All statements, other
than statements of historical facts, included in this press release
regarding our strategy, future operations, future financial
position, future revenues, other financial guidance, acquisitions,
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 which are described in the "Risk Factors" section of our
most recent periodic report and registration statement filed with
the SEC. All of the information provided in this release is as of
February 25, 2015 and Marchex undertakes no duty to update the
information provided herein.
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 OIBA , Adjusted OIBA, Adjusted
EBITDA, Revenue including domain gains and/or sales, Adjusted OIBA
and EBITDA including and excluding domain gains and sales and
Adjusted non-GAAP EPS including and excluding domain gains and
sales. Marchex also provides Call-Driven Adjusted OIBA and
EBITDA.
OIBA represents income (loss) from
operations plus (1) stock-based compensation expense and (2)
amortization of intangible assets from acquisitions. This measure,
among other things, is one of the primary metrics by which Marchex
evaluates the performance of its business. Additionally, Marchex's
management uses Adjusted OIBA, which
excludes acquisition and separation related costs, as this item is
not indicative of Marchex’s recurring core operating results.
Adjusted OIBA is the basis on which Marchex's internal budgets are
based and by which Marchex's management is currently evaluated.
Marchex believes these measures are useful to investors because
they represent Marchex's consolidated operating results, taking
into account depreciation and other intangible amortization, which
Marchex believes is an ongoing cost of doing business, but
excluding the effects of certain other expenses such as stock-based
compensation, amortization of intangible assets from acquisitions
and acquisition and separation related costs. Adjusted EBITDA represents income before interest,
income taxes, depreciation, amortization, stock compensation
expense, and acquisition and separation related cost. Marchex
believes that Adjusted EBITDA is another alternative measure of
liquidity to GAAP net cash provided by operating activities that
provides meaningful supplemental information regarding liquidity
and is used by Marchex's management to measure its ability to fund
operations and its financing obligations. Historically, these
Non-GAAP measures excluded gain/loss on sales and disposals of
intangible assets for each asset and any domain sales
contribution.
Archeo revenue including domain gains and sales represents GAAP
revenue and includes sales proceeds from the sale of domains
recognized in gain/loss on sales and disposals of intangible assets
and domain sales sold through Marchex’s Domain Marketplace which
are recognized in GAAP revenue. Adjusted OIBA
and EBITDA including or excluding domain gains and sales
includes the above descriptions of Adjusted OIBA and EBITDA and
includes/excludes domain sales contribution and gain/loss on sales
and disposals of intangible assets. Call-Driven Adjusted OIBA and EBITDA includes the
above descriptions of Adjusted OIBA and EBITDA for the Call-Driven
segment. The Call-Driven Adjusted OIBA and EBITDA assigns all
Marchex general corporate overhead costs to the Call-Driven
results. Financial analysts and investors may use the non-GAAP
historical Revenue including/excluding domain gains and sales and
Adjusted OIBA and EBITDA including/excluding domain gains and sales
to help with comparative financial evaluation to make informed
investment decisions. Adjusted non-GAAP
EPS represents Adjusted non-GAAP net income applicable to
common stockholders divided by GAAP diluted shares outstanding.
Adjusted non-GAAP net income applicable to common stockholders
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 applicable to common
stockholders plus the net of tax effects of: (1) stock-based
compensation expense, (2) amortization of intangible assets from
acquisitions, (3) acquisition and separation related costs, (4)
interest and other income (expense), (5) discontinued operations,
net of tax and (6) dividends paid to participating securities, and
also (7) excludes the effect of any tax valuation allowance.
Financial analysts and investors may use Adjusted non-GAAP EPS to
analyze Marchex's financial performance since these groups have
historically used EPS 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 Non-GAAP EPS excluding domain gains and
sales includes the above description of Adjusted non-GAAP
EPS and excludes domain sales contribution and gain/loss on sales
and disposals of intangible assets.
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 Condensed
Consolidated Statements of Operations (in thousands, except
per share data) (unaudited) Three
Months Ended December 31, 2013
2014 Revenue $ 39,680 $ 33,291
Expenses: Service costs (1) 23,833 17,853 Sales and marketing (1)
2,832 3,090 Product development (1) 6,760 6,962 General and
administrative (1) 4,382 4,796 Amortization of intangible assets
from acquisitions 426 - Acquisition and separation related costs
(62 ) - Total operating expenses 38,171
32,701 Gain on sales and disposals of intangible assets, net
35 - Income from operations
1,544 590 Interest expense and other, net 11
(19 ) Income from continuing operations before provision for
income taxes 1,555 571 Income tax expense 958
- Net income from continuing operations 597
571 Discontinued operations: Income from discontinued operations,
net of tax 7 - Gain on sale from discontinued operations, net of
tax 1 - Discontinued operations,
net of tax 8 - Net income 605 571 Dividends paid to participating
securities - (28 ) Net income
applicable to common stockholders $ 605 $ 543
Basic and diluted net income per Class A and Class B share
applicable to common stockholders: Continuing operations $ 0.02 $
0.01 Discontinued operations, net of tax 0.00
- Basic and diluted net income per Class A and
Class B share applicable to common stockholders: $ 0.02 $ 0.01
Dividends paid per share $ - $ 0.02 Shares used to calculate basic
net income per share applicable to common stockholders Class A
7,770 5,233 Class B 28,371 35,969 Shares used to calculate diluted
net income per share applicable to common stockholders Class A
7,770 5,233 Class B 38,713 41,567 (1 ) Includes stock-based
compensation allocated as follows: Service costs $ 362 $ 365 Sales
and marketing 171 231 Product development 508 579 General and
administrative 1,321 1,704 Total
$ 2,362 $ 2,879
MARCHEX, INC.
AND SUBSIDIARIES Condensed Consolidated Statements of
Operations (in thousands, except per share data)
(unaudited) Twelve Months Ended
December 31, 2013
2014 Revenue $ 152,550 $ 182,644 Expenses:
Service costs (1) 91,858 114,581 Sales and marketing (1) 11,182
12,251 Product development (1) 27,346 29,561 General and
administrative (1) 19,385 20,923 Amortization of intangible assets
from acquisitions 2,926 434 Acquisition and separation related
costs 878 (68 ) Total operating
expenses 153,575 177,682 Gain on sales and disposals of intangible
assets, net 3,774 -
Income from operations 2,749 4,962 Interest expense and other, net
(37 ) (62 ) Income from continuing operations
before provision for income taxes 2,712 4,900 Income tax expense
1,755 24,277 Net income
(loss) from continuing operations 957 (19,377 ) Discontinued
operations: Income (loss) from discontinued operations, net of tax
(70 ) 9 Gain on sale from discontinued operations, net of tax
930 278 Discontinued operations,
net of tax 860 287 Net income
(loss) 1,817 (19,090 ) Dividends paid to participating securities
- (127 ) Net income (loss) applicable
to common stockholders $ 1,817 $ (19,217 )
Basic and diluted net income (loss) per Class A and Class B
share applicable to common stockholders: Continuing operations $
0.03 $ (0.49 ) Discontinued operations, net of tax $ 0.02
$ 0.01 Basic and diluted net income (loss) per Class
A and Class B share applicable to common stockholders: $ 0.05 $
(0.48 ) Dividends paid per share $ - $ 0.08 Shares used to
calculate basic net income (loss) per share applicable to common
stockholders Class A 8,816 5,853 Class B 26,798 34,157 Shares used
to calculate diluted net income (loss) per share applicable to
common stockholders Class A 8,816 5,853 Class B 36,999 40,010
(1 ) Includes stock-based compensation allocated as follows:
Service costs $ 1,180 $ 1,382 Sales and marketing 645 894 Product
development 1,635 2,595 General and administrative 5,777
7,032 Total $ 9,237 $
11,903
MARCHEX, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (in thousands)
(unaudited) December 31,
December 31, Assets 2013
2014 Current assets: Cash and cash equivalents
$ 30,912 $ 80,032 Accounts receivable, net 30,005 25,941 Prepaid
expenses and other current assets 2,943 3,143 Refundable taxes 97
131 Deferred tax assets 1,016 -
Total current assets 64,973 109,247 Property and equipment,
net 5,440 5,430 Deferred tax assets 25,138 - Intangibles and other
assets, net 484 313 Goodwill 65,679 65,679 Intangible assets from
acquisitions, net 434 - Total
Assets $ 162,148 $ 180,669
Liabilities and Stockholders' Equity Current
liabilities: Accounts payable $ 15,922 $ 13,766 Accrued expenses
and other current liabilities 7,988 7,515 Deferred revenue
1,388 2,117 Total current liabilities
25,298 23,398 Other non-current liabilities 2,095
1,118 Total Liabilities 27,393 24,516
Class A common stock 80 55 Class B common stock 309
373 Treasury stock (2 ) (2,503 ) Additional paid-in capital 305,517
348,467 Accumulated deficit (171,149 )
(190,239 ) Total Stockholders' Equity 134,755
156,153 Total Liabilities and Stockholders' Equity $
162,148 $ 180,669
MARCHEX,
INC. AND SUBSIDIARIES Reconciliation of GAAP Income from
Operations to Operating Income Before Amortization (OIBA)
and Adjusted Operating Income Before Amortization (Adjusted
OIBA) (in thousands) (unaudited)
Three Months Ended December 31,
2013 2014 Income from
operations $ 1,544 $ 590 Stock-based compensation 2,362 2,879
Amortization of intangible assets from acquisitions 426
- Operating income before
amortization (OIBA) 4,332 3,469 Acquisition and separation related
costs (62 ) -
Adjusted
operating income before amortization (Adjusted OIBA) $
4,270 $ 3,469 Domain sales contribution (1,549
) (1,679 ) Gain on sales and disposals of intangible assets, net
(35 ) - Adjusted OIBA excluding
domain gains and sales $ 2,686 $ 1,790
Twelve Months Ended December 31,
2013 2014
Income from operations $ 2,749 $ 4,962 Stock-based compensation
9,237 11,903 Amortization of intangible assets from acquisitions
2,926 434 Operating
income before amortization (OIBA) 14,912 17,299 Acquisition and
separation related costs 878 (68 )
Adjusted operating income before amortization (Adjusted
OIBA) $ 15,790 $ 17,231 Domain
sales contribution (2,388 ) (7,341 ) Gain on sales and disposals of
intangible assets, net (3,774 ) -
Adjusted OIBA excluding domain gains and sales $ 9,628
$ 9,890 Certain
reclassifications have been made to prior periods to conform to
current presentation.
MARCHEX, INC. AND
SUBSIDIARIES Reconciliation from Net Cash provided by
Operating Activities to Adjusted EBITDA (in thousands)
(unaudited) Three Months
Ended December 31, 2013
2014 Net cash provided by operating
activities $ 6,109 $ 4,302 Changes in assets and liabilities (1,636
) 58 Income tax expense 958 - Interest expense and other, net (14 )
20 Gain on sales and disposals of intangible assets, net 35 - Loss
on discontinued operations, net of tax (7 ) - Excess tax benefits
related to stock compensation (209 ) -
Adjusted EBITDA $ 5,236 $
4,380 Domain sales contribution (1,549 ) (1,679 ) Gain on
sales and disposals of intangible assets, net (35 )
- Adjusted EBITDA excluding domain gains and
sales $ 3,652 $ 2,701 Net cash used in
investing activities $ (549 ) $ (1,000 ) Net cash
provided by (used in) financing activities $ 202 $
(3,922 )
Twelve Months Ended
December 31, 2013
2014 Net cash provided by operating activities
$ 13,596 $ 22,419 Changes in asset and liabilities (1,154 ) (25,990
) Income tax expense 1,755 24,277 Acquisition and separation
related costs 940 - Interest expense and other, net 30 62 Gain on
sales and disposals of intangible assets, net 3,774 - Income (loss)
on discontinued operations, net of tax 42 (9 ) Tax effect on gain
on sale of discontinued operations 563
143
Adjusted EBITDA $ 19,546
$ 20,902 Domain sales contribution (2,388 ) (7,341 )
Gain on sales and disposals of intangible assets, net (3,774
) - Adjusted EBITDA excluding domain
gains and sales $ 13,384 $ 13,561 Net
cash provided by (used in) investing activities $ 1,647
$ (3,178 ) Net cash provided by (used in) financing
activities $ (261 ) $ 29,879 Certain
reclassifications have been made to prior periods to conform to
current presentation.
MARCHEX, INC. AND
SUBSIDIARIES Reconciliation of GAAP EPS to Adjusted Non-GAAP
EPS (in thousands, except per share data)
(unaudited) Three
Months Ended December 31, 2013
2014 Adjusted Non-GAAP EPS from
continuing operations $ 0.07 $ 0.05 Net
income applicable to common stockholders - diluted (GAAP EPS) $
0.02 $ 0.01 Shares used to calculate diluted net income per share
applicable to common stockholders 38,713 41,567 Net income
applicable to common stockholders $ 605 $ 543 Stock-based
compensation 2,362 2,879 Acquisition and separation related costs
(62 ) - Amortization of intangible assets from acquisitions 426 -
Interest expense and other, net (11 ) 19 Dividends paid to
participating securities - 28 Tax valuation allowance - (659 )
Discontinued operations, net of tax (8 ) - Estimated impact of
income taxes (676 ) (598 )
Adjusted
Non-GAAP net income from continuing operations $
2,636 $ 2,212 Domain sales contribution (1,549
) (1,552 ) Gain on sales and disposals of intangible assets, net
(35 ) - Estimated impact of income taxes on domain gains and sales
607 635 Adjusted Non-GAAP
net income excluding domain gains and sales $ 1,659 $
1,295
Adjusted Non-GAAP EPS from continuing
operations $ 0.07 $
0.05 Adjusted Non-GAAP EPS excluding domain
gains and sales $ 0.04 $ 0.03
Diluted shares used to calculate Adjusted Non-GAAP
EPS (1) 38,713 41,567
(1)
For the purpose of computing the number of diluted shares for
Adjusted Non-GAAP EPS, Marchex uses the accounting guidance that
would be applicable for computing the number of diluted shares for
GAAP EPS. Certain reclassifications have been made to prior
periods to conform to current presentation.
MARCHEX, INC. AND SUBSIDIARIES Reconciliation of GAAP EPS
to Adjusted Non-GAAP EPS (in thousands, except per share
data) (unaudited)
Twelve Months Ended December 31, 2013
2014 Adjusted Non-GAAP EPS from
continuing operations $ 0.27 $ 0.26 Net
income (loss) from continuing operations applicable to common
stockholders - diluted (GAAP EPS) $ 0.03 $ (0.49 ) Shares used to
calculate diluted net income (loss) per share applicable to common
stockholders 36,999 40,010 Net income (loss) applicable to
common stockholders $ 1,817 $ (19,217 ) Stock-based compensation
9,237 11,903 Acquisition and separation related costs 878 (68 )
Amortization of intangible assets from acquisitions 2,926 434
Interest expense and other, net 37 62 Dividends paid to
participating securities - 127 Tax valuation allowance 651 21,686
Discontinued operations, net of tax (860 ) (287 ) Estimated impact
of income taxes (4,574 ) (3,495 )
Adjusted Non-GAAP net income from continuing operations
$ 10,112 $ 11,145 Domain sales
contribution (2,388 ) (7,341 ) Gain on sales and disposals of
intangible assets, net (3,774 ) - Estimated impact of income taxes
on domain gains and sales 2,306 2,635
Adjusted Non-GAAP net income from continuing
operations excluding domain gains and sales $ 6,256 $
6,439
Adjusted Non-GAAP EPS from continuing
operations $ 0.27 $
0.26 Adjusted Non-GAAP EPS from continuing
operations excluding domain gains and sales $ 0.17 $
0.15
Shares used to calculate diluted net
income (loss) per share applicable to common stockholders
(GAAP)
36,999 40,010 Weighted average stock options and common shares
subject to purchase or cancellation (if applicable) -
2,116 Diluted shares used to calculate
Adjusted Non-GAAP EPS (1) 36,999 42,125
(1)
For the purpose of computing the number of diluted shares for
Adjusted Non-GAAP EPS, Marchex uses the accounting guidance that
would be applicable for computing the number of diluted shares for
GAAP EPS. Certain reclassifications have been made to prior
periods to conform to current presentation.
MARCHEX, INC. AND SUBSIDIARIES (in thousands)
(unaudited)
Reconciliation of GAAP Income (Loss) from
Operations to Operating Income before Amortization (OIBA)
and Adjusted Operating Income Before Amortization (Adjusted
OIBA)
Three Months Ended
Twelve Months Ended 12/31/2013
3/31/2014 6/30/2014
9/30/2014
12/31/2014 12/31/2013
12/31/2014 Income from operations $
1,544 $ 1,436 $ 1,711 $ 1,225 $ 590 $ 2,749 $ 4,962 Stock-based
compensation 2,362 2,883 3,117 3,024 2,879 9,237 11,903
Amortization of intangible assets from acquisitions 426
403 31
- - 2,926
434 Operating income before amortization
(OIBA) 4,332 4,722 4,859 4,249 3,469 14,912 17,299 Acquisition and
separation related costs (62 ) -
(68 ) - -
878 (68 )
Adjusted operating income
before amortization (Adjusted OIBA) $ 4,270
$ 4,722 $ 4,791 $ 4,249
$ 3,469 $ 15,790 $ 17,231
Domain sales contribution (1,549 ) (1,893 ) (2,217 ) (1,552 )
(1,679 ) (2,388 ) (7,341 ) Gain on sales and disposals of
intangible assets, net (35 ) -
- - -
(3,774 ) - Adjusted OIBA
excluding domain gains and sales $ 2,686 $ 2,829
$ 2,574 $ 2,697 $ 1,790
9,628 9,890
Reconciliation from Net Cash provided by Operating Activities to
Adjusted EBITDA
Three Months Ended
Twelve Months Ended 12/31/2013
3/31/2014 6/30/2014
9/30/2014
12/31/2014 12/31/2013
12/31/2014 Net cash provided by
operating activities $ 6,109 $ 8,078 $ 3,289 $ 6,750 $ 4,302 $
13,596 $ 22,419 Changes in assets and liabilities (1,636 ) (2,984 )
1,672 (24,736 ) 58 (1,154 ) (25,990 ) Income tax expense 958 588
709 22,980 - 1,755 24,277 Acquisition and separation related costs
- - - - - 940 - Gain on sales and disposals of intangible assets,
net 35 - - - - 3,774 - Discontinued operations, net of tax (7 ) (9
) - - - 42 (9 ) Tax effect of gain on sale of discontinued
operations - - - 143 - 563 143 Interest expense and other, net (14
) 2 22 18 20 30 62 Excess tax benefits related to stock
compensation (209 ) - -
- - -
-
Adjusted EBITDA
$ 5,236 $ 5,675 $ 5,692
$ 5,155 $ 4,380 $ 19,546
$ 20,902 Domain sales contribution (1,549 ) (1,893 )
(2,217 ) (1,552 ) (1,679 ) (2,388 ) (7,341 ) Gain on sales and
disposals of intangible assets, net (35 ) -
- -
- (3,774 ) - Adjusted
EBITDA excluding domain gains and sales $ 3,652 $
3,782 $ 3,475 $ 3,603 $
2,701 $ 13,384 $ 13,561 Net cash
provided by (used in) investing activities $ (549 ) $ (807 )
$ (545 ) $ (826 ) $ (1,000 ) $ 1,647
$ (3,178 ) Net cash provided by (used in) financing
activities $ 202 $ 343 $ 33,680
$ (222 ) $ (3,922 ) $ (261 ) $ 29,879
Due to rounding, the sum of quarterly amounts may not equal
amounts reported for year-to-date periods.
MARCHEX, INC.
AND SUBSIDIARIES Quarterly Financial Summary Information
(in thousands)
NON-GAAP
MEASURES Amounts below exclude Discontinued Operations
CONSOLIDATED Q113
Q213 Q313
Q413 Q114
Q214 Q314
Q414 GAAP Revenue $
34,732 $ 37,578 $ 40,560
$ 39,680 $ 50,496 $
49,676 $ 49,181 $ 33,291
Adjusted OIBA $ 3,604 $ 3,550
$ 4,366 $ 4,270 $ 4,722
$ 4,791 $ 4,249 $ 3,469
Adjusted EBITDA $ 4,516
$ 4,480 $
5,314 $ 5,236
$ 5,675 $
5,692 $ 5,155
$ 4,380
CALL-DRIVEN AND RELATED Q113
Q213 Q313
Q413 Q114
Q214 Q314
Q414 GAAP Revenue $ 31,108
$ 33,893 $ 35,668 $
34,457 $ 45,492 $ 45,857
$ 46,379 $ 30,323 Adjusted OIBA
$ 1,371 $ 1,508 $ 1,693
$ 1,725 $ 2,411 $ 2,897
$ 3,279 $ 2,512 Adjusted EBITDA
$ 2,246 $
2,401 $ 2,598
$ 2,618 $
3,312 $ 3,764
$ 4,170 $
3,409
ARCHEO
Q113 Q213
Q313 Q413
Q114 Q214
Q314 Q414 GAAP Revenue
$ 3,624 $ 3,685 $ 4,892
$ 5,223 $ 5,004 $ 3,819
$ 2,802 $ 2,968 Adjusted OIBA
$ 2,233 $ 2,042 $ 2,673
$ 2,545 $ 2,311 $ 1,894
$ 970 $ 957 Adjusted EBITDA
$ 2,270 $
2,079 $ 2,716
$ 2,618 $
2,363 $ 1,928
$ 985 $
971 Due to rounding, the sum of quarterly amounts may
not equal amounts reported for year-to-date periods.
MARCHEX, INC. AND SUBSIDIARIES Financial Summary by
Segment (in thousands) (unaudited)
Three Months Ended
Twelve Months Ended 12/31/2013
3/31/2014 6/30/2014
9/30/2014 12/31/2014
12/31/2013 12/31/2014
Marchex - Consolidated5
Revenue - GAAP2 $ 39,680
$ 50,496 $ 49,676
$ 49,181 $ 33,291
$ 152,550 $ 182,644
Revenue including domain gains3 $ 39,715 $
50,496 $ 49,676 $ 49,181 $
33,291 $ 156,324 $ 182,644
Adjusted OIBA
including domain gains and sales4 $
4,270 $ 4,722 $
4,791 $ 4,249
$ 3,469 $ 15,790 $
17,231 Adjusted OIBA excluding domain gains and
sales4 $ 2,686 $ 2,829 $ 2,574 $
2,697 $ 1,790 $ 9,628 $ 9,890
Adjusted EBITDA including domain gains and sales4
$ 5,236 $ 5,675
$ 5,692 $ 5,155
$ 4,380 $ 19,546
$ 20,902 Adjusted EBITDA excluding domain
gains and sales4 $ 3,652 $ 3,782 $ 3,475 $
3,603 $ 2,701 $ 13,384 $ 13,561
Call-Driven1 and related Revenue - GAAP $
34,457 $ 45,492 $ 45,857 $ 46,379 $ 30,323 $ 135,126 $ 168,051
Adjusted OIBA4 $ 1,725 $ 2,411 $ 2,897 $ 3,279 $ 2,512 $ 6,297 $
11,099 Adjusted EBITDA4 $ 2,618 $ 3,312 $ 3,764 $ 4,170 $ 3,409 $
9,863 $ 14,655
Archeo1,5 Revenue - GAAP2 $
5,223 $ 5,004 $ 3,819 $ 2,802 $ 2,968 $ 17,424 $ 14,593 Revenue
including domain gains3 $ 5,258 $ 5,004 $ 3,819 $ 2,802 $ 2,968 $
21,198 $ 14,593 Adjusted OIBA including domain gains and sales4 $
2,545 $ 2,311 $ 1,894 $ 970 $ 957 $ 9,493 $ 6,132 Adjusted OIBA
excluding domain gains and sales4 $ 961 $ 418 $ (323 ) $ (582 ) $
(722 ) $ 3,331 $ (1,209 ) Adjusted EBITDA including domain gains
and sales4 $ 2,618 $ 2,363 $ 1,928 $ 985 $ 971 $ 9,683 $ 6,247
Adjusted EBITDA excluding domain gains and sales4 $ 1,034 $ 470 $
(289 ) $ (567 ) $ (708 ) $ 3,521 $ (1,094 ) 1 The
financial results for Call-Driven and Archeo have been derived from
the unaudited condensed consolidated financial statements. The
Call-Driven financial results include certain direct operating
expenses and general corporate overhead expenses. The Archeo
financial results include direct operating expenses. 2 In September
2013, Marchex launched its Domains Marketplace and through it,
commenced buying and selling of domains.
Domain sales occurring after this date are
included in GAAP revenue and related cost in service cost. Prior to
this date, domain sales were recognized in gain on sales and
disposals of intangible assets in the unaudited condensed
consolidated financial statements.
3 Domain sales recognized in gain on sales and disposals of
intangible assets, net. 4
These are non-GAAP measures of operating
results and liquidity. These non-GAAP measures are adjusted for net
gains from sales of intangible assets, net and direct contribution
of domain sales sold through its Domains Marketplace.
5
Amounts presented exclude results of
discontinued operations. Operating results of discontinued
operations relate to certain pay-per-click assets sold in July 2013
and are included in discontinued operations, net of tax in the
unaudited condensed consolidated financial statements.
Due to rounding, the sum of quarterly amounts may not equal
amounts reported for year-to-date periods.
MARCHEX, INC. AND SUBSIDIARIES Reconciliation to Reported
Financial and Non-GAAP Information (in thousands)
(unaudited)
Three Months Ended Twelve Months Ended
12/31/2013 3/31/2014
6/30/2014 9/30/2014
12/31/2014 12/31/2013
12/31/2014 Revenue6
Consolidated - GAAP1 $ 39,680 $
50,496 $ 49,676 $ 49,181
$ 33,291 $ 152,550 $
182,644 Add: Domain gains2 35 -
- - - 3,774
- Consolidated including domain gains and sales3 39,715 50,496
49,676 49,181 33,291 156,324 182,644 Less: Archeo4 including domain
gains and sales3 5,258 5,004
3,819 2,802 2,968 21,198
14,593 Call-Driven4 and related $ 34,457 $ 45,492
$ 45,857 $ 46,379 $ 30,323 $ 135,126 $
168,051 Adjusted OIBA5,6 Consolidated excluding domain gains
and sales $ 2,686 $ 2,829 $ 2,574 $ 2,697 $ 1,790 $ 9,628 $ 9,890
Add: Domain gains and sales 1,584 1,893
2,217 1,552 1,679 6,162
7,341
Consolidated including domain gains and
sales 4,270 4,722 4,791 4,249
3,469 15,790 17,231 Less: Archeo4 including
domain gains and sales 2,545 2,311
1,894 970 957 9,493
6,132 Call-Driven4 and related $ 1,725 $ 2,411
$ 2,897 $ 3,279 $ 2,512 $ 6,297 $
11,099 Adjusted EBITDA5,6 Consolidated excluding domain
gains and sales $ 3,652 $ 3,782 $ 3,475 $ 3,603 $ 2,701 $ 13,384 $
13,561 Add: Domain gains and sales 1,584 1,893
2,217 1,552 1,679
6,162 7,341
Consolidated including domain gains
and sales 5,236 5,675 5,692 5,155
4,380 19,546 20,902 Less: Archeo4 including
domain gains and sales 2,618 2,363
1,928 985 971 9,683
6,247 Call-Driven4 and related $ 2,618 $ 3,312
$ 3,764 $ 4,170 $ 3,409 $ 9,863 $
14,655 1 In September 2013, Marchex launched
its Domains Marketplace and through it, commenced buying and
selling of domains.
Domain sales occurring after this date are
included in GAAP revenue and related cost in service cost. Prior to
this date, domain sales were recognized in gain on sales and
disposals of intangible assets, net in the unaudited condensed
consolidated financial statements.
2 Domain sales recognized in gain on sales and disposals of
intangible assets, net in the unaudited condensed consolidated
financial statements. 3
Domain sales recognized in either gain on
sales and disposals of intangible assets or in revenue in the
unaudited condensed consolidated financial statements.
4 The financial results for Call-Driven and Archeo have been
derived from the unaudited condensed consolidated financial
statements. The Call-Driven financial results include certain
direct operating expenses and general corporate overhead expenses.
The Archeo financial results include direct operating expenses. 5
These are non-GAAP measures of operating
results and liquidity. These non-GAAP measures are adjusted for net
gains from sales of intangible assets, net and direct contribution
of domain sales sold through its Domains Marketplace.
6
Amounts presented exclude results of
discontinued operations. Financial results of discontinued
operations related to certain pay-per-click assets sold in July
2013 and are included in discontinued operations, net of tax in the
unaudited condensed consolidated financial statements.
Due to rounding, the sum of quarterly amounts may not equal
amounts reported for year-to-date periods.
Marchex Investor RelationsTrevor Caldwell, 206-331-3600Email:
ir(at)marchex.comorMEDIA INQUIRIESMarchex Corporate
CommunicationsSonia Krishnan, 206-331-3434Email:
skrishnan(at)marchex.com
Marchex (NASDAQ:MCHX)
Historical Stock Chart
From Mar 2024 to Apr 2024
Marchex (NASDAQ:MCHX)
Historical Stock Chart
From Apr 2023 to Apr 2024