- Fourth Quarter GAAP Revenue of $34.9
million, up 12% Year-Over-Year
- Fourth Quarter Call-Driven Revenue of
$34.3 million, up 13% Year-Over-Year, and 31% Year-Over-Year
excluding YP
- Sold remaining non-strategic Archeo
assets to focus on Mobile Advertising Analytics leadership
Marchex, Inc. (NASDAQ:MCHX), a leading mobile advertising
analytics company, today announced its financial results for the
fourth quarter and full year ended December 31, 2015.
"In 2015, we focused our entire company toward one opportunity:
to provide global brands extraordinary insights into the mobile
consumer journey by uniting the physical and digital
worlds,” said Pete Christothoulou, CEO. “We exited the year as
the most innovative analytics company, trusted by the world’s
largest brands, to measure and connect digital media to offline
sales. I’m excited about the team we are building and what we plan
to accomplish in 2016.”
Q4 2015 Financial
Highlights1
- GAAP revenue was $34.9
million for the fourth quarter of 2015, compared to $31.2
million for the fourth quarter of 2014.
- GAAP net income from continuing
operations was $1.2 million for the fourth quarter of 2015. This
compares to GAAP net loss from continuing operations of $146,000
for the fourth quarter of 2014.
- GAAP net income from continuing
operations attributable to common stockholders per diluted share
was $0.03 for the fourth quarter of 2015. This compares to GAAP net
loss from continuing operations of $0.00 for the fourth quarter of
2014.
Q4 2015 Q4 2014 GAAP
Revenue $34.9 million $31.2 million
Call-Driven and related Revenue $34.3 million
$30.3 million
Non-GAAP Results: Call-Driven
Adjusted OIBA2 $1.6 million $2.5 million
Call-Driven Adjusted EBITDA2 $2.5 million
$3.4 million
Adjusted OIBA2 $2.0
million $2.4 million
Adjusted EBITDA2
$2.9 million $3.3 million
Archeo Revenue $0.6 million $0.9 million
Gain on Sale of Archeo Assets1 $1.5 million
-
Cash Balance $109 million $80 million
- Adjusted non-GAAP EPS2 from continuing
operations for the fourth quarter of 2015 was $0.03, compared to
$0.04 for the fourth quarter of 2014.
Q4 2015 Other Financial
Highlights
- During the fourth quarter of 2015, YP
contributed $9.0 million in Call-Driven Revenues, compared to $11.1
million in the fourth quarter 2014.
- During the fourth quarter of 2015,
Marchex purchased 143,000 shares of its outstanding Class B common
stock for a total price of $600,000. This brings Marchex’s total
shares repurchased under its November 2014 share repurchase program
to 1.6 million shares or 4% of its outstanding Class B common
stock.
Full Year 2015 Financial
Highlights1
- GAAP revenue was $143.0
million for 2015, compared to $173.6 million for 2014.
- GAAP net loss from continuing
operations was $597,000 for 2015, compared to $22.8 million for
2014, which included the effect of a non-cash charge to income tax
expense of $22.3 million for a valuation allowance on our deferred
tax assets.
- GAAP net loss from continuing
operations attributable to common stockholders per diluted share
was $0.01 for 2015, compared to $0.57 for 2014.
2015 2014 GAAP
Revenue $143.0 million $173.6 million
Call-Driven and related Revenue $139.9 million
$168.1 million
Non-GAAP Results:
Call-Driven Adjusted OIBA2 $7.8 million
$11.1 million
Call-Driven Adjusted EBITDA2
$11.5 million $14.7 million
Adjusted OIBA2
$8.2 million $12.0 million
Adjusted
EBITDA2 $11.9 million $15.6 million
Archeo Revenue $3.1
million $5.5 million
- Adjusted non-GAAP EPS2 from continuing
operations for 2015 was $0.13, compared to $0.19 for 2014.
- During 2015, YP contributed $40.2
million in Call-Driven Revenues, compared to $41.8 million in
2014.
1In December 2015, the Company sold its
remaining Archeo assets. The financial results of this disposition
are included in continuing operations in our consolidated
statements of operations. The Company had previously sold certain
Archeo domain name and related assets in April 2015 and certain
pay-per-click assets in July 2013. The financial results of these
prior dispositions are presented as discontinued operations net of
tax in our consolidated statements of operations in accordance with
GAAP, and are excluded from all other results unless otherwise
noted.
2Reconciliations 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.
2015 Business Highlights
Marchex removed several of the divergent priorities in the
business, including selling non-core assets. It moved aggressively
to build new partnerships with leading global brands and agencies,
strengthened its team and launched groundbreaking products that
solve many of the mobile advertising problems clients are facing.
The following highlights selected points of progress throughout the
year:
Strategic Focus and Growth
- Focused on building the most powerful
set of analytics tools for enterprise marketers to deeply
understand the online-to-offline path to purchase.
- Accelerated Call-Driven Revenue growth
excluding YP to 31% in Q4 2015 compared to Q4 2014.
- Increased 2015 revenue growth by 50% on
average across three core verticals - Auto, Communications, and
Home Services.
- Sold all non-core Archeo assets. In
April 2015, sold the bulk of Archeo’s domain portfolio for cash
proceeds of $28.1 million plus additional earn-out
payments subject to certain sales targets; and in December 2015,
sold the remaining Archeo assets for a gain on sale of $1.5
million.
International Expansion
- Announced Analytics product expansion
to 10 markets throughout Europe, Canada, Australia and New Zealand
to support enterprise client demand, including CDK Global and
Yell.
Global Partnership Additions
- Signed strategic partnerships with two
of the world’s largest global advertising agencies including with
Light Reaction, a mobile-first performance advertising business
that is part of Xaxis, the programmatic media division of GroupM,
to launch click-to-call mobile performance products.
Product Innovation
Marchex accelerated its analytics product momentum in 2015
announcing the following innovations:
- Display Analytics beta, an
industry-first Analytics product that for the first time enables
enterprise marketers to measure when any inbound phone call to a
call center or store is influenced by exposure to a display
advertisement on a desktop or mobile device, even when a phone call
occurs weeks or months after exposure to an ad. The reports are
delivered real-time and track cross-device conversions, providing
marketers with actionable intelligence to shift towards display
tactics that produce positive returns.
- Search Analytics, an industry-first
Analytics product that enables brands and agencies to track and
measure which keywords drive sales from click-to-call ads. Features
of Search Analytics include: 100% keyword attribution from all
phone calls driven from mobile search; real-time conversion data
using Real-Time Call DNA technology to identify
those calls that are most likely to convert into sales; and
automated setup and synchronization with leading bid-management
platforms, such as DoubleClick, Kenshoo and Marin, which allows
search marketers to measure and improve campaigns accurately in
real time.
- Proprietary enhancements to our
patented Real-Time Call DNA, including the ability to automatically
redact credit card numbers from recorded phone calls in real-time.
Using voice stream pattern recognition and machine learning
algorithms, the technology redacts consumer credit card information
while the call recording is being processed within Marchex’s secure
datacenter.
- Proprietary enhancements to its
infrastructure, including Clean Call 3.0, a breakthrough in
automatically detecting and stopping robocallers without the need
for consumer verification through an interactive voice response
(IVR) prompt. Call spam that uses fake Caller IDs is on the rise
and analysis by Marchex estimates that robocalling may cost
businesses more than $1 billion each year in telephone charges and
lost productivity.
Leadership Additions
- Announced executive appointments
including Gary Nafus as Chief Revenue Officer and Customer
Engagement Specialist Matthew Muilenburg as Senior Vice President
to accelerate mobile advertising analytics leadership.
2016 Business Outlook
The following forward-looking statements reflect Marchex's
expectations as of February 18, 2016. In 2016, the company’s
strategic priorities include:
- Grow new and existing enterprise client
relationships,
- Accelerate product innovation, and
- Expand global strategic
partnerships.
The following financial guidance includes expectation of an
incremental annual investment in sales and marketing, and related
costs of more than $6 million for 2016 designed to capitalize on
the company’s product, international and agency growth initiatives.
The company expects the incremental investments to
disproportionately impact the first half.
Total Call-Driven
financial guidance for the First Quarter ending March 31,
2016
Call-Driven Revenue Including YP $35 million or more
Call-Driven Adjusted OIBA3 a loss of ($0.5) million to a
loss of ($2.5) million Call-Driven Adjusted EBITDA3 $0.5
million to a loss of ($1.5) million
Call-Driven
financial guidance excluding YP for the year ending December 31,
2016
Call-Driven Revenue Excluding YP3 $117 million or more
3Reconciliations 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 Thursday, February 18, 2016 to discuss its fourth quarter and
full year ended December 31, 2015 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 analytics company that connects
online behavior to real-world, offline actions. By linking critical
touchpoints in the customer journey, Marchex’s products enable a
360-degree view of marketing effectiveness. Brands and agencies
utilize Marchex’s products to transform business performance.
Please visit www.marchex.com, www.marchex.com/blog 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,
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 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 18, 2016 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, Adjusted non-GAAP EPS and Call-Driven and Archeo Adjusted
OIBA and EBITDA. Additionally, Marchex also provides Call-Driven
and Archeo Revenue excluding revenue generated from our contracts
with Yellowpages.com LLC (“YP”).
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 disposition related costs, and gain on
sale of Archeo assets, as these items are 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, acquisition
and disposition related costs, and gain on sale of Archeo assets.
Adjusted EBITDA represents income
before interest, income taxes, depreciation, amortization, stock
compensation expense, acquisition and disposition related costs,
and gain on sale of Archeo assets. 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.
Call-Driven Adjusted OIBA and
EBITDA include the above descriptions of Adjusted OIBA and
EBITDA for the Call-Driven segment. The Call-Driven Adjusted OIBA
and EBITDA assign all Marchex general corporate overhead costs to
the Call-Driven results. Archeo Adjusted OIBA
and EBITDA include the above descriptions of Adjusted OIBA
and EBITDA for the Archeo segment. Call-Driven and Archeo Revenue excluding YP
excludes revenue generated through our contracts with YP. Financial
analysts and investors may use Adjusted OIBA and EBITDA and Revenue
excluding YP 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
disposition related costs, (4) interest and other income (expense),
(5) discontinued operations, net of tax, (6) dividends paid to
participating securities, and (7) gain on sale of Archeo assets.
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.
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 Twelve Months Ended
December 31,
December 31, 2014
2015 2014
2015 Revenue $ 31,227 $ 34,900 $ 173,601 $ 143,013
Expenses: Service costs (1) 17,033 19,601 111,259 78,767
Sales and marketing (1) 2,960 4,493 11,719 16,462 Product
development (1) 6,962 7,450 29,561 31,058 General and
administrative (1) 4,791 3,585 20,918 18,510 Amortization of
intangible assets from acquisitions - - 434 - Acquisition and
disposition related costs - 20
(68 ) 219 Total operating expenses
31,746 35,149 173,823 145,016 Gain on sale of Archeo assets
- 1,496 -
1,496 Income (loss) from operations (519 ) 1,247 (222 ) (507
) Interest expense and other, net (19 ) (11 )
(62 ) (63 ) Income (loss) from continuing
operations before provision for income taxes (538 ) 1,236 (284 )
(570 ) Income tax expense (benefit) (392 ) 16
22,509 27 Net Income
(loss) from continuing operations (146 ) 1,220 (22,793 ) (597 )
Discontinued operations: Income from discontinued operations, net
of tax 716 38 3,425 5,123 Gain on sale from discontinued
operations, net of tax - -
278 22,195 Discontinued
operations, net of tax 716 38
3,703 27,318 Net income (loss)
570 1,258 (19,090 ) 26,721 Dividends paid to participating
securities (28 ) - (127 ) (37 )
Net income (loss) applicable to common stockholders $ 542
$ 1,258 $ (19,217 ) $ 26,684
Basic and diluted net income (loss) per Class A and Class B share
applicable to common stockholders: Continuing operations $ (0.00 )
$ 0.03 $ (0.57 ) $ (0.01 ) Discontinued operations, net of tax $
0.01 $ 0.00 $ 0.09 $ 0.66
Basic and diluted net income (loss) per Class A and Class B share
applicable to common stockholders $ 0.01 $ 0.03 $ (0.48 ) $ 0.65
Dividends paid per share $ 0.02 $ - $ 0.08 $ 0.04 Shares used to
calculate basic net income (loss) per share applicable to common
stockholders Class A 5,233 5,233 5,853 5,233 Class B 35,969 35,804
34,157 35,935 Shares used to calculate diluted net income (loss)
per share applicable to common stockholders Class A 5,233 5,233
5,853 5,233 Class B 41,202 41,599 40,010 41,168 (1 ) Includes
stock-based compensation allocated as follows: Service costs $ 363
$ 143 $ 1,373 $ 1,189 Sales and marketing 230 414 888 1,307 Product
development 578 567 2,595 2,410 General and administrative
1,704 1,091 7,032
5,118 Total $ 2,875 $ 2,215 $
11,888 $ 10,024
MARCHEX, INC. AND
SUBSIDIARIES Condensed Consolidated Balance Sheets
(in thousands) (unaudited)
December 31, December 31, Assets
2014 2015 Current assets:
Cash and cash equivalents $ 80,032 $ 109,155 Accounts receivable,
net 25,941 24,621 Prepaid expenses and other current assets 3,143
1,784 Refundable taxes 131 127
Total current assets 109,247 135,687 Property and equipment,
net 5,430 5,778 Intangibles and other assets, net 313 222 Goodwill
65,679 63,305 Total Assets $
180,669 $ 204,992
Liabilities and
Stockholders' Equity Current liabilities: Accounts
payable $ 13,766 $ 9,460 Accrued expenses and other current
liabilities 7,515 6,712 Deferred revenue 2,117
692 Total current liabilities 23,398 16,864
Other non-current liabilities 1,118 662
Total Liabilities 24,516 17,526 Class A common
stock 55 55 Class B common stock 373 368 Treasury stock (2,503 )
(238 ) Additional paid-in capital 348,467 350,799 Accumulated
deficit (190,239 ) (163,518 ) Total
Stockholders' Equity 156,153 187,466
$ 180,669 $ 204,992
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 December 31,
December 31, 2014 2015
2014 2015 Income
(loss) from operations $ (519 ) $ 1,247 $ (222 ) $ (507 )
Stock-based compensation 2,875 2,215 11,888 10,024 Amortization of
intangible assets from acquisitions - -
434 - Operating income before
amortization (OIBA) 2,356 3,462 12,100 9,517 Acquisition and
disposition related costs - 20 (68 ) 219 Gain on sale of Archeo
assets - (1,496 ) -
(1,496 )
Adjusted operating income before amortization (Adjusted
OIBA) $ 2,356 $ 1,986
$ 12,032 $ 8,240
Reconciliation from Net Cash provided by Operating
Activities to Adjusted EBITDA Three
Months Ended Twelve Months Ended December 31,
December 31, 2014
2015 2014
2015 Net cash provided by operating activities
$ 4,302 $ 753 $ 22,419 $ 12,753 Changes in asset and liabilities 58
2,150 (25,991 ) 3,963 Income tax expense (benefit) (392 ) 16 22,509
27 Acquisition and disposition related costs - 20 - 219 Interest
expense and other, net 19 11 62 63 Income on discontinued
operations, net of tax (734 ) (38 ) (3,555 ) (5,140 ) Tax effect on
gain on sale of discontinued operations -
- 144 -
Adjusted EBITDA $ 3,253 $
2,912 $ 15,588 $
11,885 Net cash provided by (used in)
investing activities $ (1,000 ) $ 242 $ (3,178 )
$ 21,822 Net cash provided by (used in)
financing activities $ (3,922 ) $ (776 ) $ 29,879
$ (5,452 )
MARCHEX, INC. AND SUBSIDIARIES
Reconciliation of GAAP EPS to Adjusted Non-GAAP EPS (in
thousands, except per share data) (unaudited)
Three Months Ended Twelve Months Ended December
31, December 31, 2014
2015 2014
2015 Adjusted Non-GAAP EPS from continuing operations
$ 0.04 $ 0.03 $ 0.19 $ 0.13
Net Income (loss) from continuing operations
applicable to common stockholders - diluted (GAAP EPS) $ (0.00 ) $
0.03 $ (0.57 ) $ (0.01 ) Shares used to calculate diluted net
income (loss) from continuing operations per share applicable to
common stockholders 41,202 41,599 40,010
41,168
Net income (loss) applicable to common stockholders $ 542 $
1,258 $ (19,217 ) $ 26,684 Stock-based compensation 2,875 2,215
11,888 10,024 Acquisition and disposition related costs - 20 (68 )
219 Gain on sale of Archeo assets - (1,496 ) - (1,496 )
Amortization of intangible assets from acquisitions - - 434 -
Interest expense and other, net 19 11 62 63 Dividends paid to
participating securities 28 - 127 37 Tax valuation allowance (659 )
- 21,686 - Discontinued operations, net of tax (716 ) (38 ) (3,703
) (27,318 ) Estimated impact of income taxes (554 )
(682 ) (3,378 ) (2,863 )
Adjusted
Non-GAAP net income from continuing operations $
1,535 $ 1,288 $
7,831 $ 5,350
Adjusted Non-GAAP EPS from continuing operations $
0.04 $ 0.03 $
0.19 $ 0.13
Shares used to calculate diluted net income (loss) from continuing
operations per share applicable to common stockholders (GAAP)
41,202 41,599 40,010 41,168 Weighted average stock options and
common shares subject to purchase or cancellation (if applicable)
365 - 2,116
421 Diluted shares used to calculate Adjusted
Non-GAAP EPS (1) 41,567 41,599
42,126 41,589 (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 Financial Summary Information (in
thousands) (unaudited)
NON-GAAP MEASURES
CONSOLIDATED1
Q414 Q115 Q215
Q315 Q415 FY 2015 GAAP
Revenue $ 31,227 $
35,915 $ 35,346 $
36,852 $ 34,900 $
143,013 Adjusted OIBA $ 2,356 $
2,491 $ 1,319 $ 2,444 $
1,986 $ 8,240 Adjusted EBITDA
$ 3,253 $
3,353 $ 2,272
$ 3,348 $
2,912 $ 11,885
CALL-DRIVEN AND
RELATED Q414 Q115
Q215 Q315 Q415
FY 2015 GAAP Revenue $ 30,325 $
35,028 $ 34,458 $ 36,135
$ 34,265 $ 139,886 Adjusted OIBA
$ 2,512 $ 2,632 $ 1,400
$ 2,177 $ 1,600 $ 7,809
Adjusted EBITDA $ 3,409
$ 3,494
$ 2,353 $
3,081 $ 2,526 $
11,454
ARCHEO Q414
Q115 Q215 Q315
Q415 FY 2015 GAAP Revenue $ 902
$ 887
$ 888 $ 717 $ 635
$ 3,127 Adjusted OIBA $ (156
)
$ (141
)
$ (81
)
$ 267 $ 386 $ 431
Adjusted EBITDA $ (156
)
$ (141
)
$ (81
)
$ 267 $ 386
$ 431
CALL-DRIVEN REVENUE EXCLUDING YP
Q414 Q115 Q215
Q315 Q415 FY 2015 GAAP Revenue
$ 30,325 $ 35,028 $
34,458 $ 36,135 $ 34,265
$ 139,886 Revenue excluding YP $
19,262 $ 24,271 $ 24,096
$ 26,007 $ 25,302 $
99,676 YP Revenue $
11,063 $ 10,757
$ 10,362
$ 10,128 $
8,963 $ 40,210
ARCHEO REVENUE EXCLUDING YP Q414
Q115 Q215 Q315
Q415 FY 2015 GAAP Revenue $ 902
$ 887 $ 888 $ 717
$ 635 $ 3,127 Revenue excluding
YP $ 524 $ 525 $ 515
$ 418 $ 343 $ 1,801 YP
Revenue $ 378
$ 362 $
373 $ 299
$ 292 $ 1,326
1 In April 2015, Marchex divested certain Archeo domain name and
related assets. The operating results of the divested assets are
included in discontinued operations, net of tax, in the unaudited
consolidated financial statements. In December 2015, Marchex sold
the remaining Archeo assets and its operating results are included
in continuing operations. Unless otherwise indicated, information
presented in these financial tables relates only to Marchex's
continuing operations. The financial results for the discontinued
operations are preliminary, subject to updates, and have been
derived from the unaudited consolidated financial statements of
Marchex, Inc. for all periods presented.
Due to rounding, the sum of quarterly amounts may not equal
amounts reported for year-to-date periods.
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 12/31/2014
3/31/2015 6/30/2015
9/30/2015 12/31/2015
12/31/2014 12/31/2015
Income (loss) from operations $ (519 ) $ (300 ) $
(1,466 ) $ 12 $ 1,247 $ (222 ) $ (507 ) Stock-based compensation
2,875 2,791 2,667 2,351 2,215 11,888 10,024 Amortization of
intangible assets from acquisitions - -
- - -
434 - Operating income before
amortization (OIBA) 2,356 2,491 1,201 2,363 3,462 12,100 9,517
Acquisition and disposition related costs - - 118 81 20 (68 ) 219
Gain on sale of Archeo assets - -
- - (1,496 )
- (1,496 )
Adjusted OIBA - Consolidated
$ 2,356 $ 2,491 $ 1,319
$ 2,444 $ 1,986 $ 12,032
$ 8,240 Less: Archeo Adjusted OIBA1 (156 )
(141 ) (81 ) 267 386
933 431 Call-Driven and related
Adjusted OIBA1 $ 2,512 $ 2,632 $ 1,400
$ 2,177 $ 1,600 $ 11,099 $ 7,809
Reconciliation from Net Cash provided by
(used in) Operating Activities to Adjusted EBITDA
Three Months Ended
Twelve Months Ended 12/31/2014
3/31/2015 6/30/2015
9/30/2015
12/31/2015 12/31/2014
12/31/2015 Net cash provided by (used in)
operating activities $ 4,302 $ 6,251 $ (1,814 ) $ 7,563 $ 753 $
22,419 $ 12,753 Changes in assets and liabilities 58 2,228 3,883
(4,299 ) 2,150 (25,991 ) 3,963 Income tax expense (benefit) (392 )
5 (185 ) 191 16 22,509 27 Acquisition and disposition related costs
- - 118 81 20 - 219 Income on discontinued operations, net of tax
(734 ) (5,156 ) 91 (37 ) (38 ) (3,555 ) (5,140 ) Tax effect of gain
on sale of discontinued operations - - 163 (163 ) - 144 - Interest
expense and other, net 19 25
16 12 11
62 63
Adjusted EBITDA -
Consolidated $ 3,253 $ 3,353
$ 2,272 $ 3,348 $ 2,912
$ 15,588 $ 11,885 Less: Archeo Adjusted
EBITDA1 (156 ) (141 ) (81 )
267 386 933
431 Call-Driven and related Adjusted EBITDA1 $ 3,409
$ 3,494 $ 2,353 $ 3,081 $
2,526 $ 14,655 $ 11,454
Summary of Revenue by Segment
Three Months Ended
Twelve Months Ended 12/31/2014
3/31/2015 6/30/2015
9/30/2015
12/31/2015 12/31/2014
12/31/2015 Call-Driven1 and related Revenue $ 30,325
$ 35,028 $ 34,458 $ 36,135 $ 34,265 $ 168,051 $ 139,886 Archeo
Revenue1 902 887
888 717 635 5,550
3,127
Revenue - Consolidated $
31,227 $ 35,915
$ 35,346 $ 36,852
$ 34,900 $ 173,601
$ 143,013
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.
Due to rounding, the sum of quarterly amounts may not equal
amounts reported for year-to-date periods.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160218006640/en/
Marchex Investor RelationsTrevor Caldwell, 206-331-3600Email:
ir(at)marchex.comorMEDIA INQUIRIESMarchex Corporate
Communications206-331-3434Email: pr(at)marchex.com
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