Marchex, Inc. (NASDAQ: MCHX), the award-winning AI-powered conversation intelligence company that helps businesses turn strategic insights into the actions that drive their most valued sales outcomes, today announced its financial results for the second quarter ended June 30, 2022.
Q2 2022 Financial Highlights
- GAAP revenue was $13.5 million for the second quarter of 2022, compared to $14.0 million for the second quarter of 2021.
- Net loss was $1.5 million for the second quarter of 2022 or $0.03 per diluted share, compared to a net loss of $0.3 million or $0.01 per diluted share for the second quarter of 2021.
- Adjusted non-GAAP income (loss) per share for the second quarter of 2022 was ($0.01) compared to ($0.02) for the second quarter of 2021.
Strategic Priorities and Growth Initiatives
- New Customer Traction and Existing Customer Expansion. Marchex saw continued traction with new enterprise customers across multiple product lines in several verticals including Home Services, Health Care and others. In addition, we continue to see long-term growth opportunities in our Auto vertical through the expansion of relationships with Fortune 500 customers and traction in the dealer channel.
- Company Maintains Profitability Metrics in the Second Quarter. In the second quarter of 2022, Marchex achieved above break-even Adjusted EBITDA in part through continued progress with the Company’s cost initiatives, including its technology and cloud-based infrastructure projects.
- Conversation Volumes. Conversation volume trends in the largest verticals were up modestly from the first quarter of 2022 largely due to the expansion of relationships with existing customers in those verticals. Overall, conversation volumes in the second quarter were down modestly on a year-over-year basis, impacted by customer inventory shortages, inflationary pressures and overall macroeconomic factors.
- Accelerate Product Innovation.
- Marchex Receives Product of the Year Award for Marchex Conversational Intelligence Platform. The Business Intelligence Group named Marchex’s Conversation Intelligence Platform as “Product of the Year” as part of the 2022 Sales and Marketing Technology Awards program, also known as The Sammys. The Sammys honor organizations and products helping to solve the challenges organizations have connecting and collaborating with prospects and customers. The Marchex Conversation Intelligence platform, built upon powerful artificial intelligence (AI) technology, enables businesses to take critical actions, deliver better customer experiences and grow their revenue. From a business intelligence perspective, this innovative technology unlocks key, relevant insights from both voice and text conversations at scale and extracts actionable signals that empower marketing, sales, and customer engagement teams to achieve their business objectives.
- Marchex Wins AI-Based Analytic Innovation Award by AI Breakthrough. AI Breakthrough is a leading market intelligence organization that rewards the top companies, technologies, and products in the contemporary artificial intelligence (AI) market. The company received the award for Marchex Conversation Intelligence, powered by Marchex Conversation DNA™, for developing the technology to precisely decode conversations down to a granular level, enabling businesses to optimize their marketing campaigns, improve customer experiences and ultimately close more sales. Breakthrough AI automation is at the very core of Marchex Conversation Intelligence, empowering businesses to listen at scale to what their customers are saying, optimize sales approaches to deliver customer experiences that improve sales outcomes, and make data-driven decisions that improve their performance.
“In the second quarter and throughout the past year, Marchex’s product innovation has fundamentally altered the way businesses can reach and interact with consumers, transforming marketing, sales, and customer engagement. Now businesses can gain the strategic insights they need from their business conversations to act immediately and win more business,” said Russell Horowitz, Executive Chairman and Co-CEO. “Our continued focus on innovating is helping businesses leverage conversational intelligence to drive better customer experiences and grow. Throughout the course of 2022, we expect to launch new sales engagement products supported by our award-winning Conversation DNA™ technology, win new customer relationship, expand relationships with many of our Fortune 500 customers, and open new channel partnerships, and that these current initiatives will continue to expand our opportunity and resulting growth profile.”
Business Outlook
The following forward-looking statements reflect Marchex’s expectations as of August 9, 2022.
“While we saw a modest lift in conversation volumes from the pandemic influenced months at the beginning of this year, we continue to see some customer impacts from supply chain disruptions, inflationary pressures and other macroeconomic events weigh on aggregate conversation volumes compared to the year-ago period,” said Mike Arends, Co-CEO. “Even with this headwind in place, we anticipate that our product and sales initiatives could lead to similar revenue levels in the third quarter of 2022 relative to the most recent quarters. In addition, we believe we will continue to be at or near break-even on an Adjusted EBITDA basis for the third quarter.”
“As we move through the rest of 2022, we are continuing to make progress with some of our largest customer relationships and believe they can serve as a foundation for long-term growth for Marchex. We expect to launch new products, new customer relationships and new channel partner relationships this year and believe through these initiatives we are laying the foundation for future growth. In addition, if we see an unwinding of the inventory challenges and other macro impacts on volumes at some point, we believe this should convert into a tailwind in several of our verticals and enable us to achieve accelerating growth. We expect to have more to share on these developments in the coming months.” said Arends.
Management will hold a conference call, starting at 5:00 p.m. ET on Tuesday, August 9, 2022 to discuss Marchex’s financial results for the second quarter ended June 30, 2022 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 shortly after completion of the call.
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