Marchex Raises First Quarter 2014 Guidance
March 19 2014 - 6:45AM
Business Wire
Company Sees Increasing Demand for
Call-Driven Products Resulting from Strong Client
Performance
Marchex, Inc. (NASDAQ:MCHX), a mobile advertising technology
company, today announced it is updating its outlook for the first
quarter of the year ending December 31, 2014.
“The momentum continues to build in our business as we provide
clear mobile measurement and deliver strong performance to our
clients,” said Russell Horowitz, Chairman and CEO of Marchex. “The
combination of Marchex’s ability to deliver high quality calls from
our Call Marketplace combined with the insight we can deliver
through our Call Analytics platform is helping us gain mindshare as
a performance leader. We are excited about our progress as we start
off the year and look forward to continuing to execute for our
clients over the course of 2014.”
The following forward-looking statements reflect Marchex’s
expectations as of March 19, 2014 and exclude any contribution from
Archeo operations, domain sales and discontinued operations and
updates the guidance previously provided on February 19, 2014.
Archeo operating results would be incremental and additive to our
Call-Driven revenue, profitability, and other measures below:
Call-Driven financial
guidance for the First Quarter ending March 31, 2014
Call-Driven Revenue
$42 million or more, up from $40
million or more Call-Driven Adjusted OIBA 1
$1.5-$2.1 million,
up from $1-$2 million Call-Driven Adjusted EBITDA 1
$2.5-$3.1
million, up from $2-$3 million
1 These non-GAAP Call-Driven measures assign all Marchex
indirect overhead costs to the Call-Driven results.
Marchex plans on updating its outlook for the full year ending
December 31, 2014 in early May in connection with its release of
financial results for the first quarter of 2014.
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
March 19, 2014 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, and
Adjusted EBITDA. Marchex also provides Call-Driven Adjusted OIBA
and EBITDA. This press release includes an estimated range of
Call-Driven Revenue and Call-Driven Adjusted OIBA and EBITDA for
the first quarter of 2014.
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 any gain/loss on sales and disposals of intangible assets
for each asset and acquisition and separation related costs as
these items are not indicative of Marchex’s recurring core
operating results and any domain sales contribution. 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 or gain/loss such as stock-based
compensation, amortization of intangible assets from acquisitions,
acquisition and separation related costs, domain sales contribution
and gain/loss on sales and disposals of intangible assets.
Adjusted EBITDA represents income
(loss) before interest, income taxes, depreciation, amortization,
stock compensation expense, acquisition and separation related
cost, domain sales contribution and gain/loss on sales and
disposals of intangible 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 includes the above descriptions of
Adjusted OIBA and EBITDA for the Call-Driven segment. The
Call-Driven Adjusted OIBA and EBITDA assigns all Marchex indirect
overhead costs to the Call-Driven results.
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 Investor RelationsTrevor Caldwell, 206-331-3600Email:
ir(at)marchex.comorMEDIA INQUIRIES:Marchex Corporate
CommunicationsSonia Krishnan, 206-331-3434Email:
skrishnan(at)marchex.com
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