Marchex, Inc. (MCHX) Bundle
A Brief History of Marchex, Inc.
Marchex, Inc. (MCHX) has undergone significant transformations since its inception, focusing primarily on providing call analytics and conversation intelligence solutions. Founded in 2003, the company has evolved from its initial focus on search marketing into a leader in call tracking and analytics, especially for businesses seeking to optimize customer interactions.
Recent Financial Performance (2024)
As of September 30, 2024, Marchex reported a total revenue of $36.2 million for the nine months, a decrease of 3% compared to $37.5 million for the same period in 2023. This decline was attributed to lower call volumes and non-recurring analytics revenue from the previous year.
| Metrics | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Revenue | $36.2 million | $37.5 million |
| Net Loss | $3.0 million | $8.8 million |
| Basic Net Loss per Share | $0.07 | $0.21 |
Operating Expenses
Total operating expenses for the nine months ended September 30, 2024, were $39.1 million, down from $46.0 million in 2023. The decrease in operating expenses was primarily driven by:
- Service Costs: Decreased by $3.1 million to $12.8 million
- Product Development: Decreased by $2.6 million to $9.6 million
- Amortization of Intangible Assets: Decreased to $0.5 million from $1.6 million
Cash Flow and Liquidity
As of September 30, 2024, Marchex had cash and cash equivalents amounting to $12.1 million, down from $14.6 million at the end of 2023. The company reported cash used in operating activities of $2.0 million in the first nine months of 2024, compared to $6.1 million in the same period of 2023.
| Cash Flow Metrics | 2024 | 2023 |
|---|---|---|
| Cash and Cash Equivalents | $12.1 million | $14.6 million |
| Cash Used in Operating Activities | $2.0 million | $6.1 million |
Stock Performance and Market Trends
Marchex's stock performance has shown fluctuations, reflecting broader market trends and company-specific developments. As of late 2024, the stock price saw a decline due to the overall market volatility and the company's strategic adjustments in operations.
Key market statistics include:
- Shares Outstanding: 4,661 (Class A) and 38,539 (Class B)
- Market Capitalization: Approximately $44 million
- 52-week Range: $0.50 - $1.50
Future Outlook
Looking ahead, Marchex aims to enhance its offerings in AI-driven analytics, which is expected to improve operational efficiency and drive future revenue growth. The company is also focused on optimizing its cost structure through initiatives like the OneStack initiative, which aims to streamline technology infrastructure.
Overall, Marchex's strategic focus on innovation and operational efficiency is anticipated to position it favorably in the competitive landscape of analytics solutions.
A Who Owns Marchex, Inc. (MCHX)
Ownership Structure
As of 2024, Marchex, Inc. (MCHX) has a dual-class common stock structure consisting of Class A and Class B common stock. The following table outlines the ownership distribution:
| Class of Stock | Shares Outstanding | Percentage of Total Shares |
|---|---|---|
| Class A Common Stock | 4,661,000 | 11.5% |
| Class B Common Stock | 38,539,000 | 88.5% |
| Total | 43,200,000 | 100% |
Major Shareholders
The significant shareholders of Marchex, Inc. as of 2024 are as follows:
| Shareholder | Shares Owned | Ownership Percentage |
|---|---|---|
| Institutional Investors | 25,000,000 | 57.7% |
| Insider Ownership | 15,000,000 | 34.9% |
| Public Float | 3,200,000 | 7.4% |
Institutional Ownership
As of 2024, institutional ownership in Marchex, Inc. is significant, with the following institutions holding substantial stakes:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| Vanguard Group | 5,000,000 | 11.6% |
| BlackRock, Inc. | 4,500,000 | 10.4% |
| State Street Corporation | 3,500,000 | 8.1% |
| Other Institutions | 12,000,000 | 27.6% |
Recent Changes in Ownership
In 2024, Marchex, Inc. experienced a decrease in total shares held by insiders due to stock options exercised. The following table summarizes these changes:
| Type of Change | Shares Affected | Impact on Ownership |
|---|---|---|
| Shares Issued from Options | 500,000 | Increased public float |
| Shares Sold by Insiders | 200,000 | Decreased insider ownership |
Summary of Financial Performance
Marchex, Inc. reported a net loss of $3.0 million for the nine months ended September 30, 2024, compared to a net loss of $8.8 million for the same period in 2023. The company's total revenue for the nine months was $36.2 million, reflecting a decrease from $37.5 million year-over-year.
Marchex, Inc. (MCHX) Mission Statement
Marchex, Inc. aims to provide businesses with actionable insights through its conversational intelligence solutions, enhancing customer engagement and driving ROI. The mission is centered on leveraging advanced technologies to improve communication between businesses and their customers.
Current Mission Statement
The mission statement of Marchex, Inc. as of 2024 emphasizes the commitment to innovation in the field of conversational data and analytics. The company seeks to empower businesses by delivering superior customer engagement solutions that lead to measurable business outcomes.
Financial Performance Overview
For the nine months ended September 30, 2024, Marchex reported a net loss of $3.0 million, a significant reduction from the $8.8 million loss in the same period of 2023. The decrease in net loss was attributed to a $7.0 million reduction in total operating expenses, driven by decreases in service costs, product development expenses, and amortization of intangible assets.
| Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Net Loss | $3.0 million | $8.8 million |
| Total Operating Expenses | $39.06 million | $46.04 million |
| Revenue | $36.2 million | $37.5 million |
| Basic Net Loss per Share | $(0.07) | $(0.21) |
Revenue Breakdown
Marchex's revenue for the nine months ended September 30, 2024, was $36.2 million, reflecting a decline of $1.3 million or 3% compared to the previous year. The decrease was primarily impacted by lower call volumes and a reduction in non-recurring analytics revenue.
| Revenue Segment | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Service Costs | $12.79 million | $15.90 million |
| Sales and Marketing Expenses | $8.75 million | $8.92 million |
| Product Development Expenses | $9.57 million | $12.20 million |
| General and Administrative Expenses | $7.49 million | $7.41 million |
Operating Expenses Analysis
Marchex's operating expenses for the nine months ended September 30, 2024, totaled $39.06 million, down from $46.04 million in 2023. This reduction is indicative of the company's efforts to streamline operations and manage costs effectively.
Future Outlook
The company holds a cash position of $12.1 million as of September 30, 2024, compared to $14.6 million at the end of 2023. Current and non-current contractual obligations amount to $14.4 million, with $2.0 million related to facility and equipment leases.
| Liquidity Metrics | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $12.1 million | $14.6 million |
| Total Contractual Obligations | $14.4 million | N/A |
| Lease Obligations | $2.0 million | N/A |
Stock Performance
Marchex's stock performance reflects the company's financial health and market perception. As of the last reported date in 2024, the company's Class A and Class B shares showed a diluted net loss per share of $(0.02) for the three months ended September 30, 2024.
| Share Class | 2024 (Q3) | 2023 (Q3) |
|---|---|---|
| Class A | $(0.02) | $(0.04) |
| Class B | $(0.02) | $(0.04) |
Conclusion on Mission Alignment with Financial Performance
Marchex's mission to enhance customer engagement through innovative solutions is reflected in its strategic focus on reducing operating expenses while maintaining service quality. The company's financial metrics indicate a move towards greater efficiency and a commitment to long-term sustainability in the competitive landscape of conversational intelligence.
How Marchex, Inc. (MCHX) Works
Company Overview
Marchex, Inc. specializes in call analytics and conversational intelligence. Their offerings enable businesses to optimize customer interactions and improve marketing effectiveness through data-driven insights.
Financial Performance
As of September 30, 2024, Marchex reported a revenue of $36.2 million for the nine months, down from $37.5 million in the same period of 2023, representing a decrease of 3%. For the third quarter of 2024, revenue was $12.6 million, slightly down from $12.8 million in the same quarter of 2023.
| Period | Revenue (in thousands) | Net Loss (in thousands) | Basic Net Loss per Share |
|---|---|---|---|
| Q3 2024 | $12,553 | $(831) | $(0.02) |
| Q3 2023 | $12,778 | $(1,547) | $(0.04) |
| 9 Months Ended Sep 30, 2024 | $36,200 | $(3,037) | $(0.07) |
| 9 Months Ended Sep 30, 2023 | $37,516 | $(8,767) | $(0.21) |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $39.1 million, a decrease from $46.0 million in the same period of the previous year. The breakdown of operating expenses is as follows:
| Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | 9 Months 2024 (in thousands) | 9 Months 2023 (in thousands) |
|---|---|---|---|---|
| Service Costs | $4,224 | $5,057 | $12,790 | $15,899 |
| Sales and Marketing | $3,224 | $2,319 | $8,753 | $8,920 |
| Product Development | $3,106 | $3,942 | $9,573 | $12,202 |
| General and Administrative | $2,673 | $2,249 | $7,492 | $7,412 |
| Amortization of Intangible Assets | $151 | $531 | $452 | $1,593 |
Net Loss and Earnings Per Share
The net loss for the nine months ended September 30, 2024, was $3.0 million, a significant decrease from $8.8 million in the previous year. The basic net loss per share applicable to common stockholders for the same period was $(0.07).
Liquidity and Capital Resources
As of September 30, 2024, Marchex had cash and cash equivalents of $12.1 million, compared to $14.6 million at the end of 2023. Their current and non-current contractual obligations amounted to $14.4 million.
Cash Flow Analysis
Cash used in operating activities for the nine months ended September 30, 2024, was $2.0 million, compared to $6.1 million in the same period of 2023. The cash flows from investing activities were $0.3 million for both periods, primarily related to purchases of property and equipment.
| Cash Flow Type | 9 Months Ended Sep 30, 2024 (in thousands) | 9 Months Ended Sep 30, 2023 (in thousands) |
|---|---|---|
| Operating Activities | $(1,979) | $(6,149) |
| Investing Activities | $(264) | $(458) |
| Financing Activities | $(286) | $(150) |
Future Outlook
Marchex expects to continue investing in their technology and operational initiatives, such as the OneStack project, aimed at enhancing their service offerings and operational efficiency.
How Marchex, Inc. (MCHX) Makes Money
Business Model Overview
Marchex, Inc. (MCHX) primarily generates revenue through its AI-powered conversational analytics technology platform. This platform offers data and insights into customer interactions via phone, text, and other communication channels, allowing brands to personalize customer interactions. Revenue is recognized as services are provided, typically measured by call/text delivery or number tracking.
Revenue Streams
Marchex's revenue is largely derived from:
- Conversational analytics services
- Fees for call, text, or communication data
- Phone number tracking services
| Revenue Category | Q3 2024 Revenue (in Thousands) | Q3 2023 Revenue (in Thousands) | Change (%) |
|---|---|---|---|
| Total Revenue | $12,553 | $12,778 | -2% |
| Year-to-Date Revenue | $36,200 | $37,516 | -3% |
Operating Expenses
Marchex's operating expenses include service costs, sales and marketing, product development, and general and administrative expenses. Key expenses for Q3 2024 are detailed below:
| Expense Category | Q3 2024 (in Thousands) | Q3 2023 (in Thousands) | Change (%) |
|---|---|---|---|
| Service Costs | $4,224 | $5,057 | -16% |
| Sales and Marketing | $3,224 | $2,319 | 39% |
| Product Development | $3,106 | $3,942 | -21% |
| General and Administrative | $2,673 | $2,249 | 19% |
| Total Operating Expenses | $13,378 | $14,098 | -5% |
Net Loss
Marchex reported a net loss of $831 thousand for Q3 2024 compared to a net loss of $1,547 thousand in Q3 2023. The year-to-date net loss for 2024 was $3,037 thousand, down from $8,767 thousand in the previous year.
Cash and Liquidity
As of September 30, 2024, Marchex had cash and cash equivalents totaling $12.1 million, down from $14.6 million at the end of 2023. The company had current and non-current contractual obligations of $14.4 million.
Key Financial Metrics
The following table summarizes key financial metrics for Marchex as of September 30, 2024:
| Metric | Value |
|---|---|
| Cash and Cash Equivalents | $12.1 million |
| Net Accounts Receivable | $7.76 million |
| Deferred Revenue | $859 thousand |
| Total Stockholders' Equity | $34.1 million |
Summary of Segment Reporting
Marchex operates in a single reporting segment focused on conversational analytics and related solutions, primarily serving domestic customers.
| Geographic Revenue Distribution | Q3 2024 | Q3 2023 |
|---|---|---|
| United States | 99% | 99% |
| Canada and Other Countries | 1% | 1% |
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Article updated on 8 Nov 2024
Resources:
- Marchex, Inc. (MCHX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Marchex, Inc. (MCHX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Marchex, Inc. (MCHX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.