[February 19, 2014] |
|
Marchex Announces Fourth Quarter and Full Year 2013 Results
SEATTLE --(Business Wire)--
Marchex, Inc. (NASDAQ:MCHX), a mobile advertising technology company,
today announced its financial results for the fourth quarter and full
year ended December 31, 2013.
"Marchex made significant strides in 2013 as we expanded our Call
Analytics technology, won new clients and retained and grew important,
existing relationships," said Russell Horowitz, Chairman and CEO of
Marchex. "Specifically, our Call Analytics platform connected and
analyzed hundreds of millions of calls on behalf of our clients; we
added new advertisers to our Call Marketplace and we grew our mobile
distribution partner network. This progress builds a strong foundation
for 2014 as we enter the year with product and business momentum."
Q4 2013 Financial Highlights1
-
GAAP revenue was $39.7 million for the fourth quarter of 2013,
compared to $32.4 million for the fourth quarter of 2012. Non-GAAP
revenue2, which excludes domain sales recorded in GAAP
revenue, was $38.1 million for the fourth quarter of 2013.
-
GAAP net income from continuing operations was $597,000 for the fourth
quarter of 2013, compared to a GAAP net loss from continuing
operations of $33.5 million for the fourth quarter of 2012.
-
GAAP net income from continuing operations attributable to common
stockholders per diluted share was $0.02 for the fourth quarter of
2013. This compares to GAAP net loss from continuing operations
attributable to common stockholders per diluted share of $1.00 for the
fourth quarter of 2012.
|
|
Q4 2013
|
|
Q4 2012
|
GAAP Revenue
|
|
$39.7 million
|
|
$32.4 million
|
Non-GAAP Results below exclude Domain Sales and Discontinued
Operations:
|
Non-GAAP Revenue 2, 3
|
|
$38.1 million
|
|
$32.4 million
|
Call-Driven and Other Revenue
|
|
$34.5 million
|
|
$28.5 million
|
Archeo Revenue 2, 3
|
|
$3.7 million
|
|
$4.0 million
|
|
|
|
|
|
Call-Driven Adjusted OIBA3
|
|
$1.7 million
|
|
$1.2 million
|
Call-Driven Adjusted EBITDA3
|
|
$2.6 million
|
|
$2.0 million
|
Adjusted OIBA2,3
|
|
$2.7 million
|
|
$2.5 million
|
Adjusted EBITDA2,3
|
|
$3.7 million
|
|
$3.4 million
|
-
Adjusted non-GAAP EPS3 from continuing operations for the
fourth quarter of 2013 was $0.04, compared to $0.05 for the fourth
quarter of 2012.
Full Year 2013 Consolidated Financial Results1
-
GAAP revenue was $152.6 million for 2013, compared to $132.8 million
for 2012. Non-GAAP revenue2, which excludes domain sales
recorded in GAAP revenue, was $150.1 million for 2013.
-
GAAP net income from continuing operations applicable to common
stockholders was $957,000 or $0.03 per diluted share for 2013. This
compares to GAAP net loss from continuing operations applicable to
common stockholders of $34.3 million or $1.03 per diluted share in
2012.
|
|
FY 2013
|
|
FY 2012
|
GAAP Revenue
|
|
$152.6 million
|
|
$132.8 million
|
Non-GAAP Results below exclude Domain Sales and Discontinued
Operations:
|
Non-GAAP Revenue 2, 3
|
|
$150.1 million
|
|
$132.8 million
|
Call-Driven and Other Revenue
|
|
$135.1 million
|
|
$111.9 million
|
Archeo Revenue 2, 3
|
|
$15.0 million
|
|
$20.9 million
|
|
|
|
|
|
Call-Driven Adjusted OIBA3
|
|
$6.3 million
|
|
$5.1 million
|
Call-Driven Adjusted EBITDA3
|
|
$9.9 million
|
|
$8.4 million
|
Adjusted OIBA2,3
|
|
$9.6 million
|
|
$13.4 million
|
Adjusted EBITDA2,3
|
|
$13.4 million
|
|
$17.1 million
|
-
Adjusted non-GAAP EPS3 from continuing operations for 2013
was $0.17, compared to $0.25 in 2012.
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 income (loss) from 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.
2 Excludes 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 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.
Marchex Q4 and Recent Call-Driven Business
Highlights:
-
Revenue. Call-Driven and other related revenue was $34.5
million for the fourth quarter of 2013 - a 21 percent increase
compared to $28.5 million for the fourth quarter of 2012.
-
Products. We recently released data showing that Marchex
blocked approximately 40 million phone calls in 2013 to U.S. small
businesses through its Clean Call™ technology. Marchex started
aggressively going after spam calls in 2011, after noticing the
detrimental effect these calls were having on businesses. Clean Call™
technology is now used by hundreds of thousands of advertisers to
detect and block telemarketers, robocallers and other spam dialers.
Marchex found that these calls cost small businesses about half a
billion dollars a year in lost productivity.
-
Customers and Partners. We recently announced a preferred
partnership with MapQuest to connect mobile and online consumers to
businesses via pay-for-call ads. MapQuest is one of the leading
mapping brands online, reaching 28.4 million web users and 13.7
million mobile and tablet users, with 4.0 million users across devices
in November 2013, according to comScore Media Metrix. The partnership
allows Marchex to leverage MapQuest's broad reach of consumers across
every digital channel for Pay-for-Call
advertising.
Archeo Q4 Business Highlights:
-
Revenue. Archeo non-GAAP revenue was $3.7 million for the
fourth quarter of 2013, which excludes domain sales recognized in GAAP
revenue.
-
Domains sales. During the fourth quarter of 2013, Archeo sold a
total of 262 domains that yielded $1.6 million.
Business Outlook
"Our business is being driven by our advertiser demand for mobile
performance. Our Call-Driven products and investments are centered on
unlocking this opportunity," said Mike Arends, Chief Financial Officer
of Marchex. "Given the relative size and importance of our Call-Driven
products, we believe that focusing on these revenue and profitability
measures is the most appropriate way to communicate our business
progress and guidance going forward. While advertiser budgets can change
and we can experience period-to-period variability based on a variety of
factors, we are excited about the ongoing progress we are making in our
business. Today we are forecasting accelerated Call-Driven revenue
year-over-year growth of approximately 30% in the first quarter."
The following forward-looking statements reflect Marchex's expectations
as of February 19, 2014 and exclude any contribution from Archeo
operations, domain sales and discontinued operations. Archeo
operating results would be incremental and additive to our Call-Driven
revenue, profitability, and other measures below:
Call-Driven financial guidance for the
fiscal year ending December 31, 2014
|
|
Call-Driven Revenue
|
$162 million or more
|
Call-Driven Adjusted OIBA 1
|
$7.5 million or more
|
Call Driven Adjusted EBITDA 1
|
$11.5 million or more
|
Call-Driven financial guidance for the
First Quarter ending March 31, 2014
|
|
Call-Driven Revenue
|
$40 million or more
|
Call-Driven Adjusted OIBA 1
|
$1-$2 million
|
Call-Driven Adjusted EBITDA 1
|
$2-$3 million
|
1 These non-GAAP Call-Driven measures assign all
Marchex indirect 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 19, 2014 to discuss its fourth quarter and year
ended December 31, 2013 financial results, and other company updates.
Access to the live webcast of the conference call will be available
online from the Investors section of the 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 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, Adjusted EBITDA, Revenue
excluding and including Domain Sales, and Adjusted OIBA and EBITDA
excluding and including Domain Sales. Marchex also provides Call-Driven
and Archeo Adjusted OIBA and EBITDA, and Adjusted non-GAAP EPS.
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.
Revenue excluding Domain Sales
represents GAAP revenue excluding domain sales sold through Marchex's
Domain Marketplace which are recognized in GAAP revenue. Revenue
with Domain Sales represents GAAP revenue plus sales proceeds
from the sale of intangible assets. Adjusted
OIBA and EBITDA with Domain Sales includes the above
descriptions of Adjusted OIBA and EBITDA plus any 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 indirect
overhead costs to the Call-Driven results.
Archeo non-GAAP Measures include the measures above for the
Archeo segment. Financial analysts and investors may use the non-GAAP
historical Revenue with Domain Sales, Adjusted OIBA and EBITDA with
Domain Sales to help with comparative financial evaluation to make
informed investment decisions.
Adjusted non-GAAP EPS represents
Adjusted non-GAAP Net Income (Loss) applicable to common stockholders
divided by GAAP diluted shares outstanding. Adjusted non-GAAP Net Income
(Loss) 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
(loss) applicable to common stockholders plus the net of tax effects of:
(1) stock-based compensation expense, (2) amortization of intangible
assets from acquisitions, (3) domain sales contribution and gain/loss on
sales and disposals of intangible assets and domain sales contribution,
(4) acquisition and separation related costs, (5) interest and other
income (expense), (6) discontinued operations and gain on sale of
discontinued operations, net of tax and (7) dividends paid to
participating securities, and also excludes the effect of the 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.
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,
|
|
|
|
|
2012
|
|
|
|
2013
|
|
Revenue
|
|
$
|
32,436
|
|
|
$
|
39,680
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
Service costs (1)
|
|
|
19,099
|
|
|
|
23,833
|
|
|
Sales and marketing (1)
|
|
|
2,563
|
|
|
|
2,832
|
|
|
Product development (1)
|
|
|
5,963
|
|
|
|
6,760
|
|
|
General and administrative (1)
|
|
|
5,557
|
|
|
|
4,382
|
|
|
Amortization of intangible assets from acquisitions
|
|
|
1,054
|
|
|
|
426
|
|
|
Acquisition and separation related costs
|
|
|
589
|
|
|
|
(62
|
)
|
|
Total operating expenses
|
|
|
34,825
|
|
|
|
38,171
|
|
|
Impairment of goodwill
|
|
|
(15,837
|
)
|
|
|
-
|
|
|
Gain on sales and disposals of intangible assets, net
|
|
|
862
|
|
|
|
35
|
|
Income (loss) from operations
|
|
|
(17,364
|
)
|
|
|
1,544
|
|
Interest expense and other, net
|
|
|
(20
|
)
|
|
|
11
|
|
Income (loss) from continuing operations before provision for income
taxes
|
|
|
(17,384
|
)
|
|
|
1,555
|
|
Income tax expense
|
|
|
16,108
|
|
|
|
958
|
|
Net income (loss) from continuing operations
|
|
|
(33,492
|
)
|
|
|
597
|
|
Discontinued operations:
|
|
|
|
|
|
Income (loss) from discontinued operations, net of tax
|
|
|
(843
|
)
|
|
|
7
|
|
|
Gain on sale from discontinued operations, net of tax
|
|
|
-
|
|
|
|
1
|
|
Discontinued operations, net of tax
|
|
|
(843
|
)
|
|
|
8
|
|
Net income (loss)
|
|
|
(34,335
|
)
|
|
|
605
|
|
Dividends paid to participating securities
|
|
|
(394
|
)
|
|
|
-
|
|
Net income (loss) applicable to common stockholders
|
|
$
|
(34,729
|
)
|
|
$
|
605
|
|
|
|
|
|
|
|
Basic and diluted net income (loss) per Class A share applicable to
common stockholders:
|
|
|
|
|
|
Continuing operations
|
|
$
|
(1.00
|
)
|
|
$
|
0.02
|
|
|
Discontinued operations, net of tax
|
|
|
(0.02
|
)
|
|
|
0.00
|
|
Basic and diluted net income (loss) per Class A share applicable to
common stockholders
|
|
$
|
(1.02
|
)
|
|
$
|
0.02
|
|
Basic net income (loss) per Class B share applicable to common
stockholders:
|
|
|
|
|
|
Continuing operations
|
|
$
|
(0.99
|
)
|
|
$
|
0.02
|
|
|
Discontinued operations, net of tax
|
|
|
(0.02
|
)
|
|
|
0.00
|
|
Basic net income (loss) per Class B share applicable to common
stockholders:
|
|
$
|
(1.01
|
)
|
|
$
|
0.02
|
|
Diluted net income (loss) per Class B share applicable to common
stockholders:
|
|
|
|
|
|
Continuing operations
|
|
$
|
(1.00
|
)
|
|
$
|
0.02
|
|
|
Discontinued operations, net of tax
|
|
|
(0.02
|
)
|
|
|
0.00
|
|
Diluted net income (loss) per Class B share applicable to common
stockholders:
|
|
$
|
(1.02
|
)
|
|
$
|
0.02
|
|
Dividends paid per share
|
|
$
|
0.18
|
|
|
$
|
-
|
|
Shares used to calculate basic net income (loss) per share
applicable to common stockholders
|
|
|
|
|
|
Class A
|
|
|
9,570
|
|
|
|
7,770
|
|
|
Class B
|
|
|
24,642
|
|
|
|
28,371
|
|
Shares used to calculate diluted net income (loss) per share
applicable to common stockholders
|
|
|
|
|
|
Class A
|
|
|
9,570
|
|
|
|
7,770
|
|
|
Class B
|
|
|
34,212
|
|
|
|
38,713
|
|
(1)
|
Includes stock-based compensation allocated as follows:
|
|
|
|
|
|
Service costs
|
|
$
|
325
|
|
|
$
|
362
|
|
|
Sales and marketing
|
|
|
20
|
|
|
|
171
|
|
|
Product development
|
|
|
178
|
|
|
|
508
|
|
|
General and administrative
|
|
|
2,720
|
|
|
|
1,321
|
|
|
Total
|
|
$
|
3,243
|
|
|
$
|
2,362
|
|
|
MARCHEX, INC. AND SUBSIDIARIES
|
Condensed Consolidated Statements of Operations
|
(in thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
December 31,
|
|
|
|
|
2012
|
|
|
|
2013
|
|
Revenue
|
|
$
|
132,794
|
|
|
$
|
152,550
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
Service costs (1)
|
|
|
75,920
|
|
|
|
91,858
|
|
|
Sales and marketing (1)
|
|
|
13,057
|
|
|
|
11,182
|
|
|
Product development (1)
|
|
|
23,200
|
|
|
|
27,346
|
|
|
General and administrative (1)
|
|
|
22,838
|
|
|
|
19,385
|
|
|
Amortization of intangible assets from acquisitions
|
|
|
4,728
|
|
|
|
2,926
|
|
|
Acquisition and separation related costs
|
|
|
753
|
|
|
|
878
|
|
|
Total operating expenses
|
|
|
140,496
|
|
|
|
153,575
|
|
|
Impairment of goodwill
|
|
|
(15,837
|
)
|
|
|
-
|
|
|
Gain on sales and disposals of intangible assets, net
|
|
|
6,296
|
|
|
|
3,774
|
|
Income (loss) from operations
|
|
|
(17,243
|
)
|
|
|
2,749
|
|
Interest expense and other, net
|
|
|
(449
|
)
|
|
|
(37
|
)
|
Income (loss) from continuing operations before provision for income
taxes
|
|
|
(17,692
|
)
|
|
|
2,712
|
|
Income tax expense
|
|
|
16,566
|
|
|
|
1,755
|
|
Net income (loss) from continuing operations
|
|
|
(34,258
|
)
|
|
|
957
|
|
Discontinued operations:
|
|
|
|
|
|
Loss from discontinued operations, net of tax
|
|
|
(938
|
)
|
|
|
(70
|
)
|
|
Gain on sale from discontinued operations, net of tax
|
|
|
-
|
|
|
|
930
|
|
Discontinued operations, net of tax
|
|
|
(938
|
)
|
|
|
860
|
|
Net income (loss)
|
|
|
(35,196
|
)
|
|
|
1,817
|
|
Dividends paid to participating securities
|
|
|
(657
|
)
|
|
|
-
|
|
Net income (loss) applicable to common stockholders
|
|
$
|
(35,853
|
)
|
|
$
|
1,817
|
|
|
|
|
|
|
|
Basic and diluted net income (loss) per Class A share applicable to
common stockholders:
|
|
|
|
|
|
Continuing operations
|
|
$
|
(1.03
|
)
|
|
$
|
0.03
|
|
|
Discontinued operations, net of tax
|
|
|
(0.03
|
)
|
|
|
0.02
|
|
Basic and diluted net income (loss) per Class A share applicable to
common stockholders
|
|
$
|
(1.06
|
)
|
|
$
|
0.05
|
|
Basic and diluted net income (loss) per Class B share applicable to
common stockholders:
|
|
|
|
|
|
Continuing operations
|
|
$
|
(1.02
|
)
|
|
$
|
0.03
|
|
|
Discontinued operations, net of tax
|
|
|
(0.03
|
)
|
|
|
0.02
|
|
Basic and diluted net income (loss) per Class A share applicable to
common stockholders
|
|
$
|
(1.05
|
)
|
|
$
|
0.05
|
|
Dividends paid per share
|
|
$
|
0.25
|
|
|
$
|
-
|
|
Shares used to calculate basic net income (loss) per share
applicable to common stockholders
|
|
|
|
|
|
Class A
|
|
|
9,574
|
|
|
|
8,816
|
|
|
Class B
|
|
|
24,412
|
|
|
|
26,798
|
|
Shares used to calculate diluted net income (loss) per share
applicable to common stockholders
|
|
|
|
|
|
Class A
|
|
|
9,574
|
|
|
|
8,816
|
|
|
Class B
|
|
|
33,986
|
|
|
|
36,999
|
|
(1)
|
Includes stock-based compensation allocated as follows:
|
|
|
|
|
|
Service costs
|
|
$
|
1,869
|
|
|
$
|
1,180
|
|
|
Sales and marketing
|
|
|
2,029
|
|
|
|
645
|
|
|
Product development
|
|
|
1,038
|
|
|
|
1,635
|
|
|
General and administrative
|
|
|
10,702
|
|
|
|
5,777
|
|
|
Total
|
|
$
|
15,638
|
|
|
$
|
9,237
|
|
|
MARCHEX, INC. AND SUBSIDIARIES
|
Condensed Consolidated Balance Sheets
|
(in thousands)
|
(unaudited)
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
Assets
|
|
|
2012
|
|
|
|
2013
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
15,930
|
|
|
$
|
30,912
|
|
|
Accounts receivable, net
|
|
|
25,988
|
|
|
|
30,005
|
|
|
Prepaid expenses and other current assets
|
|
|
2,667
|
|
|
|
2,943
|
|
|
Refundable taxes
|
|
|
264
|
|
|
|
97
|
|
|
Deferred tax assets
|
|
|
830
|
|
|
|
1,016
|
|
|
|
Total current assets
|
|
|
45,679
|
|
|
|
64,973
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
6,005
|
|
|
|
5,440
|
|
|
Deferred tax assets
|
|
|
27,677
|
|
|
|
25,446
|
|
|
Intangibles and other assets, net
|
|
|
611
|
|
|
|
484
|
|
|
Goodwill
|
|
|
65,815
|
|
|
|
65,679
|
|
|
Intangible assets from acquisitions, net
|
|
|
3,360
|
|
|
|
434
|
|
|
|
Total Assets
|
|
$
|
149,147
|
|
|
$
|
162,456
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
12,378
|
|
|
$
|
15,922
|
|
|
Accrued expenses and other current liabilities
|
|
|
9,609
|
|
|
|
7,988
|
|
|
Deferred revenue
|
|
|
2,009
|
|
|
|
1,388
|
|
|
|
Total current liabilities
|
|
|
23,996
|
|
|
|
25,298
|
|
|
|
|
|
|
|
|
|
Other non-current liabilities
|
|
|
2,216
|
|
|
|
2,095
|
|
|
|
Total Liabilities
|
|
|
26,212
|
|
|
|
27,393
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A common stock
|
|
|
98
|
|
|
|
80
|
|
|
Class B common stock
|
|
|
284
|
|
|
|
309
|
|
|
Treasury stock
|
|
|
(13
|
)
|
|
|
(2
|
)
|
|
Additional paid-in capital
|
|
|
295,532
|
|
|
|
305,825
|
|
|
Accumulated deficit
|
|
|
(172,966
|
)
|
|
|
(171,149
|
)
|
|
|
Total Stockholders' Equity
|
|
|
122,935
|
|
|
|
135,063
|
|
|
|
Total Liabilities and Stockholders' Equity
|
|
$
|
149,147
|
|
|
$
|
162,456
|
|
|
MARCHEX, INC. AND SUBSIDIARIES
|
Reconciliation of GAAP Income (Loss) from Operations to Operating
Income Before Amortization (OIBA)
|
and Adjusted Operating Income Before Amortization (Adjusted OIBA)
|
(in thousands)
|
(unaudited)
|
|
|
|
|
Three Months Ended
|
|
|
|
December 31,
|
|
|
|
|
2012
|
|
|
|
2013
|
|
Income (loss) from operations
|
|
$
|
(17,364
|
)
|
|
$
|
1,544
|
|
|
Stock-based compensation
|
|
|
3,243
|
|
|
|
2,362
|
|
|
Amortization of intangible assets from acquisitions
|
|
|
1,054
|
|
|
|
426
|
|
Operating income before amortization (OIBA)
|
|
|
(13,067
|
)
|
|
|
4,332
|
|
|
Acquisition and separation related costs
|
|
|
589
|
|
|
|
(62
|
)
|
|
Impairment of goodwill
|
|
|
15,837
|
|
|
|
-
|
|
|
Domain sales contribution
|
|
|
-
|
|
|
|
(1,549
|
)
|
|
Gain on sales and disposals of intangible assets, net
|
|
|
(862
|
)
|
|
|
(35
|
)
|
Adjusted operating income before amortization (Adjusted OIBA)
|
|
$
|
2,497
|
|
|
$
|
2,686
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
December 31,
|
|
|
|
|
2012
|
|
|
|
2013
|
|
|
|
|
|
|
|
Income (loss) from operations
|
|
$
|
(17,243
|
)
|
|
$
|
2,749
|
|
|
Stock-based compensation
|
|
|
15,638
|
|
|
|
9,237
|
|
|
Amortization of intangible assets from acquisitions
|
|
|
4,728
|
|
|
|
2,926
|
|
Operating income before amortization (OIBA)
|
|
|
3,123
|
|
|
|
14,912
|
|
|
Acquisition and separation related costs
|
|
|
753
|
|
|
|
878
|
|
|
Impairment of goodwill
|
|
|
15,837
|
|
|
|
-
|
|
|
Domain sales contribution
|
|
|
-
|
|
|
|
(2,388
|
)
|
|
Gain on sales and disposals of intangible assets, net
|
|
|
(6,296
|
)
|
|
|
(3,774
|
)
|
Adjusted operating income before amortization (Adjusted OIBA)
|
|
$
|
13,417
|
|
|
$
|
9,628
|
|
|
MARCHEX, INC. AND SUBSIDIARIES
|
Reconciliation from Net Cash provided by Operating Activities to
Adjusted EBITDA
|
(in thousands)
|
(unaudited)
|
|
|
|
|
Three Months Ended
|
|
|
|
December 31,
|
|
|
|
|
2012
|
|
|
|
2013
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
$
|
4,311
|
|
|
$
|
6,109
|
|
|
Changes in asset and liabilities
|
|
|
(17,696
|
)
|
|
|
(1,636
|
)
|
|
Income tax expense
|
|
|
16,108
|
|
|
|
958
|
|
|
Separation related costs
|
|
|
589
|
|
|
|
-
|
|
|
Interest expense and other, net
|
|
|
19
|
|
|
|
(14
|
)
|
|
Less: Domain sales contribution
|
|
|
-
|
|
|
|
(1,549
|
)
|
|
Discontinued operations, net of tax
|
|
|
(73
|
)
|
|
|
(7
|
)
|
|
Excess tax benefits related to stock compensation
|
|
|
146
|
|
|
|
(209
|
)
|
Adjusted EBITDA
|
|
$
|
3,404
|
|
|
$
|
3,652
|
|
|
|
|
|
|
|
Net cash provided by (used in) investing activities
|
|
$
|
197
|
|
|
$
|
(549
|
)
|
|
|
|
|
|
|
Net cash provided by (used in) financing activities
|
|
$
|
(24,112
|
)
|
|
$
|
202
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
December 31,
|
|
|
|
|
2012
|
|
|
|
2013
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
$
|
19,901
|
|
|
$
|
13,596
|
|
|
|
|
|
|
|
|
Changes in asset and liabilities
|
|
|
(20,580
|
)
|
|
|
(1,154
|
)
|
|
Income tax expense
|
|
|
16,566
|
|
|
|
1,755
|
|
|
Separation related costs
|
|
|
885
|
|
|
|
940
|
|
|
Interest expense and other, net
|
|
|
88
|
|
|
|
30
|
|
|
Less: Domain sales contribution
|
|
|
-
|
|
|
|
(2,388
|
)
|
|
Discontinued operations, net of tax
|
|
|
(24
|
)
|
|
|
42
|
|
|
Tax effect on gain on sale of discontinued operations
|
|
|
-
|
|
|
|
563
|
|
|
Excess tax benefits related to stock compensation
|
|
|
308
|
|
|
|
-
|
|
Adjusted EBITDA
|
|
$
|
17,144
|
|
|
$
|
13,384
|
|
|
|
|
|
|
|
Net cash provided by investing activities
|
|
$
|
3,320
|
|
|
$
|
1,647
|
|
|
|
|
|
|
|
Net cash used in financing activities
|
|
$
|
(44,734
|
)
|
|
$
|
(261
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain reclassifications have been made to prior periods to conform
to current period 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,
|
|
|
|
|
2012
|
|
|
|
2013
|
|
Adjusted Non-GAAP EPS from continuing operations
|
|
$
|
0.05
|
|
|
$
|
0.04
|
|
|
|
|
|
|
|
Net income (loss) from continuing operations applicable to common
stockholders - diluted (GAAP EPS)
|
|
$
|
(1.00
|
)
|
|
$
|
0.02
|
|
Shares used to calculate diluted net income (loss) per share
applicable to common stockholders
|
|
|
34,212
|
|
|
|
38,713
|
|
|
|
|
|
|
|
Net income (loss) applicable to common stockholders
|
|
$
|
(34,729
|
)
|
|
$
|
605
|
|
|
Stock-based compensation
|
|
|
3,243
|
|
|
|
2,362
|
|
|
Acquisition and separation related costs
|
|
|
589
|
|
|
|
(62
|
)
|
|
Impairment of goodwill
|
|
|
15,837
|
|
|
|
-
|
|
|
Amortization of intangible assets from acquisitions
|
|
|
1,054
|
|
|
|
426
|
|
|
Gain on sales and disposals of intangible assets, net
|
|
|
(862
|
)
|
|
|
(35
|
)
|
|
Domain sales contribution
|
|
|
-
|
|
|
|
(1,549
|
)
|
|
Interest expense and other, net
|
|
|
20
|
|
|
|
(11
|
)
|
|
Dividends paid to participating securities
|
|
|
394
|
|
|
|
-
|
|
|
Tax valuation allowance
|
|
|
16,400
|
|
|
|
-
|
|
|
Discontinued operations, net of tax
|
|
|
843
|
|
|
|
(8
|
)
|
|
Estimated impact of income taxes
|
|
|
(1,170
|
)
|
|
|
(69
|
)
|
|
|
|
|
|
|
Adjusted Non-GAAP net income from continuing operations
|
|
$
|
1,619
|
|
|
$
|
1,659
|
|
|
|
|
|
|
|
Adjusted Non-GAAP EPS from continuing operations
|
|
$
|
0.05
|
|
|
$
|
0.04
|
|
|
|
|
|
|
|
Shares used to calculate diluted net income (loss) per share
applicable to common stockholders
|
|
|
34,212
|
|
|
|
38,713
|
|
|
Weighted average stock options and common shares subject to purchase
or cancellation (if applicable)
|
|
|
1,523
|
|
|
|
-
|
|
Diluted shares used to calculate Adjusted Non-GAAP EPS (1)
|
|
|
35,735
|
|
|
|
38,713
|
|
|
|
|
|
|
|
(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.
|
|
|
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,
|
|
|
|
|
2012
|
|
|
|
2013
|
|
|
|
|
|
|
|
Adjusted Non-GAAP EPS
|
|
$
|
0.25
|
|
|
$
|
0.17
|
|
|
|
|
|
|
|
Net income (loss) from continuing operations per share applicable to
common stockholders - diluted (GAAP EPS)
|
|
$
|
(1.03
|
)
|
|
$
|
0.03
|
|
Shares used to calculate diluted net income (loss) per share
applicable to common stockholders
|
|
|
33,986
|
|
|
|
36,999
|
|
|
|
|
|
|
|
Net income (loss) applicable to common stockholders
|
|
$
|
(35,853
|
)
|
|
$
|
1,817
|
|
|
Stock-based compensation
|
|
|
15,638
|
|
|
|
9,237
|
|
|
Acquisition and separation related costs
|
|
|
753
|
|
|
|
878
|
|
|
Impairment of goodwill
|
|
|
15,837
|
|
|
|
-
|
|
|
Amortization of intangible assets from acquisitions
|
|
|
4,728
|
|
|
|
2,926
|
|
|
Gain on sales and disposals of intangible assets, net
|
|
|
(6,296
|
)
|
|
|
(3,774
|
)
|
|
Domain sales contribution
|
|
|
-
|
|
|
|
(2,388
|
)
|
|
Interest expense and other, net
|
|
|
449
|
|
|
|
37
|
|
|
Dividends paid to participating securities
|
|
|
657
|
|
|
|
-
|
|
|
Tax valuation allowance
|
|
|
16,400
|
|
|
|
651
|
|
|
Discontinued operations, net of tax
|
|
|
938
|
|
|
|
(860
|
)
|
|
Estimated impact of income taxes
|
|
|
(4,544
|
)
|
|
|
(2,268
|
)
|
Adjusted Non-GAAP net income from continuing operations
|
|
$
|
8,707
|
|
|
$
|
6,256
|
|
|
|
|
|
|
|
Adjusted Non-GAAP EPS from continuing operations
|
|
$
|
0.25
|
|
|
$
|
0.17
|
|
|
|
|
|
|
|
Shares used to calculate diluted net income (loss) per share
applicable
|
|
|
|
|
to common stockholders
|
|
|
33,986
|
|
|
|
36,999
|
|
|
Weighted average stock options and common shares subject to purchase
or cancellation (if applicable)
|
|
|
1,377
|
|
|
|
-
|
|
Diluted shares used to calculate Adjusted Non-GAAP EPS (1)
|
|
|
35,363
|
|
|
|
36,999
|
|
|
|
|
|
|
|
(1)
|
For the purpose of computing the number of diluted shares for
non-GAAP EPS, Marchex uses the accounting guidance that would be
applicable for computing the number of diluted shares for GAAP EPS.
|
|
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)
|
|
|
|
|
3 months ended
|
|
|
|
12 months ended
|
|
|
|
3/31/2012
|
|
|
6/30/2012
|
|
|
9/30/2012
|
|
|
12/31/2012
|
|
|
3/31/2013
|
|
|
6/30/2013
|
|
|
|
9/30/2013
|
|
|
|
12/31/2013
|
|
|
|
|
|
12/31/2012
|
|
|
|
12/31/2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations
|
|
$ (616
|
)
|
|
$ 1,158
|
|
|
$ (421
|
)
|
|
$ (17,364
|
)
|
|
$ 297
|
|
|
$ (98
|
)
|
|
$
|
1,006
|
|
|
$
|
1,544
|
|
|
|
|
$
|
(17,243
|
)
|
|
$
|
2,749
|
|
|
Stock-based compensation
|
|
3,891
|
|
|
4,802
|
|
|
3,702
|
|
|
3,243
|
|
|
1,907
|
|
|
2,603
|
|
|
|
2,365
|
|
|
|
2,362
|
|
|
|
|
|
15,638
|
|
|
|
9,237
|
|
|
Amortization of intangible assets from acquisitions
|
|
1,537
|
|
|
1,082
|
|
|
1,055
|
|
|
1,054
|
|
|
1,055
|
|
|
736
|
|
|
|
709
|
|
|
|
426
|
|
|
|
|
|
4,728
|
|
|
|
2,926
|
|
Operating income before amortization (OIBA)
|
|
4,812
|
|
|
7,042
|
|
|
4,336
|
|
|
(13,067
|
)
|
|
3,259
|
|
|
3,241
|
|
|
|
4,080
|
|
|
|
4,332
|
|
|
|
|
|
3,123
|
|
|
|
14,912
|
|
|
Acquisition and separation related costs
|
|
(132
|
)
|
|
-
|
|
|
296
|
|
|
589
|
|
|
345
|
|
|
309
|
|
|
|
286
|
|
|
|
(62
|
)
|
|
|
|
|
753
|
|
|
|
878
|
|
|
Impairment of goodwill
|
|
-
|
|
|
-
|
|
|
-
|
|
|
15,837
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
15,837
|
|
|
|
-
|
|
|
Domain sales contribution
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
(839
|
)
|
|
|
(1,549
|
)
|
|
|
|
|
-
|
|
|
|
(2,388
|
)
|
|
Gain on sales and disposals of intangible assets, net
|
|
(1,463
|
)
|
|
(3,258
|
)
|
|
(713
|
)
|
|
(862
|
)
|
|
(1,362
|
)
|
|
(1,330
|
)
|
|
|
(1,047
|
)
|
|
|
(35
|
)
|
|
|
|
|
(6,296
|
)
|
|
|
(3,774
|
)
|
Adjusted operating income before amortization (Adjusted OIBA)
|
|
$ 3,217
|
|
|
$ 3,784
|
|
|
$ 3,919
|
|
|
$ 2,497
|
|
|
$ 2,242
|
|
|
$ 2,220
|
|
|
$
|
2,480
|
|
|
$
|
2,686
|
|
|
|
|
$
|
13,417
|
|
|
$
|
9,628
|
|
|
Reconciliation from Net Cash provided by Operating Activities to
Adjusted EBITDA
|
|
|
|
|
3 months ended
|
|
|
|
12 months ended
|
|
|
|
3/31/2012
|
|
|
6/30/2012
|
|
|
9/30/2012
|
|
|
12/31/2012
|
|
|
3/31/2013
|
|
|
|
6/30/2013
|
|
|
|
9/30/2013
|
|
|
|
12/31/2013
|
|
|
|
|
|
12/31/2012
|
|
|
|
12/31/2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
$ 3,954
|
|
|
$ 7,980
|
|
|
$ 3,656
|
|
|
$ 4,311
|
|
|
$ 2,141
|
|
|
$
|
1,014
|
|
|
$
|
4,332
|
|
|
$
|
6,109
|
|
|
|
|
$
|
19,901
|
|
|
$
|
13,596
|
|
|
Changes in asset and liabilities
|
|
302
|
|
|
(3,997
|
)
|
|
811
|
|
|
(17,696
|
)
|
|
463
|
|
|
|
1,393
|
|
|
|
(1,374
|
)
|
|
|
(1,636
|
)
|
|
|
|
|
(20,580
|
)
|
|
|
(1,154
|
)
|
|
Income tax expense (benefit)
|
|
(88
|
)
|
|
595
|
|
|
(49
|
)
|
|
16,108
|
|
|
165
|
|
|
|
243
|
|
|
|
389
|
|
|
|
958
|
|
|
|
|
|
16,566
|
|
|
|
1,755
|
|
|
Separation related costs
|
|
-
|
|
|
-
|
|
|
296
|
|
|
589
|
|
|
345
|
|
|
|
309
|
|
|
|
286
|
|
|
|
-
|
|
|
|
|
|
885
|
|
|
|
940
|
|
|
Less: Domain sales contribution
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
(839
|
)
|
|
|
(1,549
|
)
|
|
|
|
|
-
|
|
|
|
(2,388
|
)
|
|
Discontinued operations, net of tax
|
|
(27
|
)
|
|
38
|
|
|
38
|
|
|
(73
|
)
|
|
17
|
|
|
|
(11
|
)
|
|
|
43
|
|
|
|
(7
|
)
|
|
|
|
|
(24
|
)
|
|
|
42
|
|
|
Tax effect of gain on sale of discontinued operations
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
563
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
563
|
|
|
Interest expense and other, net
|
|
19
|
|
|
22
|
|
|
28
|
|
|
19
|
|
|
17
|
|
|
|
12
|
|
|
|
15
|
|
|
|
(14
|
)
|
|
|
|
|
88
|
|
|
|
30
|
|
|
Excess tax benefits related to stock compensation
|
|
97
|
|
|
23
|
|
|
42
|
|
|
146
|
|
|
7
|
|
|
|
189
|
|
|
|
13
|
|
|
|
(209
|
)
|
|
|
|
|
308
|
|
|
|
-
|
|
Adjusted EBITDA
|
|
$ 4,257
|
|
|
$ 4,661
|
|
|
$ 4,822
|
|
|
$ 3,404
|
|
|
$ 3,155
|
|
|
$
|
3,149
|
|
|
$
|
3,428
|
|
|
$
|
3,652
|
|
|
|
|
$
|
17,144
|
|
|
$
|
13,384
|
|
Net cash provided by (used in) investing activities
|
|
$ 1,194
|
|
|
$ 2,032
|
|
|
$ (103
|
)
|
|
$ 197
|
|
|
$ 512
|
|
|
$
|
449
|
|
|
$
|
1,235
|
|
|
$
|
(549
|
)
|
|
|
|
$
|
3,320
|
|
|
$
|
1,647
|
|
Net cash provided by (used in) financing activities
|
|
$ (1,296
|
)
|
|
$ (17,734
|
)
|
|
$ (1,592
|
)
|
|
$ (24,112
|
)
|
|
$ (1,484
|
)
|
|
$
|
179
|
|
|
$
|
842
|
|
|
$
|
202
|
|
|
|
|
$
|
(44,734
|
)
|
|
$
|
(261
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain reclassifications have been made to prior periods to conform
to current period presentation and to exclude the results from
discontinued operations.
|
|
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 Domain Sales and Discontinued Operations
|
|
CONSOLIDATED
|
|
Q112
|
|
Q212
|
|
Q312
|
|
Q412
|
|
Q113
|
|
Q213
|
|
Q313
|
|
Q413
|
Non-GAAP Revenue
|
|
$
|
33,835
|
|
$
|
32,832
|
|
$
|
33,691
|
|
$
|
32,436
|
|
$
|
34,732
|
|
$
|
37,578
|
|
$
|
39,661
|
|
$
|
38,124
|
Adjusted OIBA
|
|
$
|
3,217
|
|
$
|
3,784
|
|
$
|
3,919
|
|
$
|
2,497
|
|
$
|
2,242
|
|
$
|
2,220
|
|
$
|
2,480
|
|
$
|
2,686
|
Adjusted EBITDA
|
|
$
|
4,257
|
|
$
|
4,661
|
|
$
|
4,822
|
|
$
|
3,404
|
|
$
|
3,155
|
|
$
|
3,149
|
|
$
|
3,428
|
|
$
|
3,652
|
|
CALL-DRIVEN AND OTHER
|
|
Q112
|
|
Q212
|
|
Q312
|
|
Q412
|
|
Q113
|
|
Q213
|
|
Q313
|
|
Q413
|
GAAP Revenue
|
|
$
|
26,651
|
|
$
|
27,497
|
|
$
|
29,269
|
|
$
|
28,469
|
|
$
|
31,108
|
|
$
|
33,893
|
|
$
|
35,668
|
|
$
|
34,457
|
Adjusted OIBA
|
|
$
|
188
|
|
$
|
1,530
|
|
$
|
2,215
|
|
$
|
1,158
|
|
$
|
1,371
|
|
$
|
1,508
|
|
$
|
1,693
|
|
$
|
1,725
|
Adjusted EBITDA
|
|
$
|
980
|
|
$
|
2,319
|
|
$
|
3,064
|
|
$
|
2,016
|
|
$
|
2,247
|
|
$
|
2,400
|
|
$
|
2,598
|
|
$
|
2,618
|
|
ARCHEO
|
|
Q112
|
|
Q212
|
|
Q312
|
|
Q412
|
|
Q113
|
|
Q213
|
|
Q313
|
|
Q413
|
Non-GAAP Revenue
|
|
$
|
7,184
|
|
$
|
5,335
|
|
$
|
4,422
|
|
$
|
3,967
|
|
$
|
3,624
|
|
$
|
3,685
|
|
$
|
3,993
|
|
$
|
3,667
|
Adjusted OIBA
|
|
$
|
3,029
|
|
$
|
2,254
|
|
$
|
1,704
|
|
$
|
1,339
|
|
$
|
871
|
|
$
|
712
|
|
$
|
787
|
|
$
|
961
|
Adjusted EBITDA
|
|
$
|
3,277
|
|
$
|
2,342
|
|
$
|
1,758
|
|
$
|
1,388
|
|
$
|
908
|
|
$
|
749
|
|
$
|
830
|
|
$
|
1,034
|
|
|
Certain reclassifications have been made to prior periods to conform
to current period presentation and to exclude the results from
discontinued operations.
|
|
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
|
|
|
|
|
3/31/2012
|
|
|
6/30/2012
|
|
|
9/30/2012
|
|
|
12/31/2012
|
|
|
3/31/2013
|
|
|
6/30/2013
|
|
|
9/30/2013
|
|
|
12/31/2013
|
|
|
|
|
12/30/2012
|
|
|
12/31/2013
|
Marchex - consolidated4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue - GAAP
|
|
$
|
33,835
|
|
$
|
32,832
|
|
$
|
33,691
|
|
$
|
32,436
|
|
$
|
34,732
|
|
$
|
37,578
|
|
$
|
40,560
|
|
$
|
39,680
|
|
|
|
$
|
132,794
|
|
$
|
152,550
|
|
Revenue excluding Domain Sales2
|
|
$
|
33,835
|
|
$
|
32,832
|
|
$
|
33,691
|
|
$
|
32,436
|
|
$
|
34,732
|
|
$
|
37,578
|
|
$
|
39,661
|
|
$
|
38,124
|
|
|
|
$
|
132,794
|
|
$
|
150,095
|
|
Revenue with Domain Sales3
|
|
$
|
35,309
|
|
$
|
36,101
|
|
$
|
34,404
|
|
$
|
33,298
|
|
$
|
36,094
|
|
$
|
38,908
|
|
$
|
41,607
|
|
$
|
39,715
|
|
|
|
$
|
139,112
|
|
$
|
156,324
|
|
Adjusted OIBA excluding Domain Sales2
|
|
$
|
3,217
|
|
$
|
3,784
|
|
$
|
3,919
|
|
$
|
2,497
|
|
$
|
2,242
|
|
$
|
2,220
|
|
$
|
2,480
|
|
$
|
2,686
|
|
|
|
$
|
13,417
|
|
$
|
9,628
|
|
Adjusted OIBA with Domain Sales3
|
|
$
|
4,680
|
|
$
|
7,042
|
|
$
|
4,632
|
|
$
|
3,359
|
|
$
|
3,604
|
|
$
|
3,550
|
|
$
|
4,366
|
|
$
|
4,270
|
|
|
|
$
|
19,713
|
|
$
|
15,790
|
|
Adjusted EBITDA excluding Domain Sales2
|
|
$
|
4,257
|
|
$
|
4,661
|
|
$
|
4,822
|
|
$
|
3,404
|
|
$
|
3,155
|
|
$
|
3,149
|
|
$
|
3,428
|
|
$
|
3,652
|
|
|
|
$
|
17,144
|
|
$
|
13,384
|
|
Adjusted EBITDA with Domain Sales3
|
|
$
|
5,720
|
|
$
|
7,919
|
|
$
|
5,535
|
|
$
|
4,266
|
|
$
|
4,517
|
|
$
|
4,479
|
|
$
|
5,314
|
|
$
|
5,236
|
|
|
|
$
|
23,440
|
|
$
|
19,546
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Call-Driven and Other1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
26,651
|
|
$
|
27,497
|
|
$
|
29,269
|
|
$
|
28,469
|
|
$
|
31,108
|
|
$
|
33,893
|
|
$
|
35,668
|
|
$
|
34,457
|
|
|
|
$
|
111,886
|
|
$
|
135,126
|
|
Adjusted OIBA
|
|
$
|
188
|
|
$
|
1,530
|
|
$
|
2,215
|
|
$
|
1,158
|
|
$
|
1,371
|
|
$
|
1,508
|
|
$
|
1,693
|
|
$
|
1,725
|
|
|
|
$
|
5,091
|
|
$
|
6,297
|
|
Adjusted EBITDA
|
|
$
|
980
|
|
$
|
2,319
|
|
$
|
3,064
|
|
$
|
2,016
|
|
$
|
2,247
|
|
$
|
2,400
|
|
$
|
2,598
|
|
$
|
2,618
|
|
|
|
$
|
8,379
|
|
$
|
9,863
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Archeo1,4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
7,184
|
|
$
|
5,335
|
|
$
|
4,422
|
|
$
|
3,967
|
|
$
|
3,624
|
|
$
|
3,685
|
|
$
|
4,892
|
|
$
|
5,223
|
|
|
|
$
|
20,908
|
|
$
|
17,424
|
|
Revenue excluding Domain Sales2
|
|
$
|
7,184
|
|
$
|
5,335
|
|
$
|
4,422
|
|
$
|
3,967
|
|
$
|
3,624
|
|
$
|
3,685
|
|
$
|
3,993
|
|
$
|
3,667
|
|
|
|
$
|
20,908
|
|
$
|
14,969
|
|
Revenue with Domain Sales3
|
|
$
|
8,658
|
|
$
|
8,604
|
|
$
|
5,135
|
|
$
|
4,829
|
|
$
|
4,986
|
|
$
|
5,015
|
|
$
|
5,939
|
|
$
|
5,258
|
|
|
|
$
|
27,226
|
|
$
|
21,198
|
|
Adjusted OIBA excluding Domain Sales2
|
|
$
|
3,029
|
|
$
|
2,254
|
|
$
|
1,704
|
|
$
|
1,339
|
|
$
|
871
|
|
$
|
712
|
|
$
|
787
|
|
$
|
961
|
|
|
|
$
|
8,326
|
|
$
|
3,331
|
|
Adjusted OIBA with Domain Sales3
|
|
$
|
4,492
|
|
$
|
5,512
|
|
$
|
2,417
|
|
$
|
2,201
|
|
$
|
2,233
|
|
$
|
2,042
|
|
$
|
2,673
|
|
$
|
2,545
|
|
|
|
$
|
14,622
|
|
$
|
9,493
|
|
Adjusted EBITDA excluding Domain Sales2
|
|
$
|
3,277
|
|
$
|
2,342
|
|
$
|
1,758
|
|
$
|
1,388
|
|
$
|
908
|
|
$
|
749
|
|
$
|
830
|
|
$
|
1,034
|
|
|
|
$
|
8,765
|
|
$
|
3,521
|
|
Adjusted EBITDA with Domain Sales3
|
|
$
|
4,740
|
|
$
|
5,600
|
|
$
|
2,471
|
|
$
|
2,250
|
|
$
|
2,270
|
|
$
|
2,079
|
|
$
|
2,716
|
|
$
|
2,618
|
|
|
|
$
|
15,061
|
|
$
|
9,683
|
|
|
1
|
The financial results for Call-Driven and Archeo are preliminary
and have been derived from the unaudited condensed consolidated
financial statements of Marchex, Inc. for all periods presented.
Corporate overhead expenses have been reallocated in prior periods
to conform to current period presentation. The unaudited
Call-Driven financial results include certain direct operating
expenses and general corporate overhead expenses in all periods
presented. The unaudited Archeo financial results include direct
operating expenses for all periods presented.
|
2
|
In September 2013, Marchex announced and launched its Domains
Marketplace and through it, commenced buying and selling of
domains. Domain sales occurring after this date are included in
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
|
Includes all domain sales recognized in gain on sales and
disposals of intangible assets and in revenue and service costs.
|
4
|
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.
|
|
|
|
Certain reclassifications have been made to prior periods to
conform to current period presentation and to exclude the results
from discontinued operations.
|
|
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
|
|
|
|
|
|
3/31/2012
|
|
|
6/30/2012
|
|
9/30/2012
|
|
12/31/2012
|
|
|
3/31/2013
|
|
|
6/30/2013
|
|
|
9/30/2013
|
|
|
12/31/2013
|
|
|
|
|
12/31/2012
|
|
|
12/31/2013
|
Revenue5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated - GAAP
|
|
$
|
33,835
|
|
$
|
32,832
|
|
$ 33,691
|
|
$
|
32,436
|
|
$
|
34,732
|
|
$
|
37,578
|
|
$
|
40,560
|
|
$
|
39,680
|
|
|
|
$
|
132,794
|
|
$
|
152,550
|
|
|
Less: Domain sales recognized in revenue2
|
|
|
-
|
|
|
-
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
899
|
|
|
1,556
|
|
|
|
|
-
|
|
|
2,455
|
|
Consolidated excluding Domain Sales1
|
|
$
|
33,835
|
|
$
|
32,832
|
|
$ 33,691
|
|
$
|
32,436
|
|
$
|
34,732
|
|
$
|
37,578
|
|
$
|
39,661
|
|
$
|
38,124
|
|
|
|
$
|
132,794
|
|
$
|
150,095
|
|
|
Add: Domain sales recognized in revenue4
|
|
|
-
|
|
|
-
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
899
|
|
|
1,556
|
|
|
|
|
-
|
|
|
2,455
|
|
|
Add: Domain Sales1
|
|
|
1,474
|
|
|
3,269
|
|
713
|
|
|
862
|
|
|
1,362
|
|
|
1,330
|
|
|
1,047
|
|
|
35
|
|
|
|
|
6,318
|
|
|
3,774
|
|
Consolidated with Domain Sales1
|
|
|
35,309
|
|
|
36,101
|
|
34,404
|
|
|
33,298
|
|
|
36,094
|
|
|
38,908
|
|
|
41,607
|
|
|
39,715
|
|
|
|
|
139,112
|
|
|
156,324
|
|
|
Less: Archeo including Domain Sales3
|
|
|
8,658
|
|
|
8,604
|
|
5,135
|
|
|
4,829
|
|
|
4,986
|
|
|
5,015
|
|
|
5,939
|
|
|
5,258
|
|
|
|
|
27,226
|
|
|
21,198
|
|
|
Other
|
|
|
181
|
|
|
175
|
|
174
|
|
|
180
|
|
|
171
|
|
|
162
|
|
|
131
|
|
|
99
|
|
|
|
|
710
|
|
|
563
|
|
Call-Driven3
|
|
$
|
26,470
|
|
$
|
27,322
|
|
$ 29,095
|
|
$
|
28,289
|
|
$
|
30,937
|
|
$
|
33,731
|
|
$
|
35,537
|
|
$
|
34,358
|
|
|
|
$
|
111,176
|
|
$
|
134,563
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income3,5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
$
|
3,217
|
|
$
|
3,784
|
|
$ 3,919
|
|
$
|
2,497
|
|
$
|
2,242
|
|
$
|
2,220
|
|
$
|
2,480
|
|
$
|
2,686
|
|
|
|
$
|
13,417
|
|
$
|
9,628
|
|
|
Add: Gain on Domain Sales and Domain Sales Contribution6
|
|
|
1,463
|
|
|
3,258
|
|
713
|
|
|
862
|
|
|
1,362
|
|
|
1,330
|
|
|
1,886
|
|
|
1,584
|
|
|
|
|
6,296
|
|
|
6,162
|
|
Consolidated with Domain Sales
|
|
|
4,680
|
|
|
7,042
|
|
4,632
|
|
|
3,359
|
|
|
3,604
|
|
|
3,550
|
|
|
4,366
|
|
|
4,270
|
|
|
|
|
19,713
|
|
|
15,790
|
|
|
Less: Archeo including Domain Sales3
|
|
|
4,492
|
|
|
5,512
|
|
2,417
|
|
|
2,201
|
|
|
2,233
|
|
|
2,042
|
|
|
2,673
|
|
|
2,545
|
|
|
|
|
14,622
|
|
|
9,493
|
|
|
Other
|
|
|
71
|
|
|
116
|
|
104
|
|
|
105
|
|
|
106
|
|
|
86
|
|
|
75
|
|
|
59
|
|
|
|
|
396
|
|
|
326
|
|
Call-Driven3
|
|
$
|
117
|
|
$
|
1,414
|
|
$ 2,111
|
|
$
|
1,053
|
|
$
|
1,265
|
|
$
|
1,422
|
|
$
|
1,618
|
|
$
|
1,666
|
|
|
|
$
|
4,695
|
|
$
|
5,971
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA4,5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
$
|
4,257
|
|
$
|
4,661
|
|
$ 4,822
|
|
$
|
3,404
|
|
$
|
3,155
|
|
$
|
3,149
|
|
$
|
3,428
|
|
$
|
3,652
|
|
|
|
$
|
17,144
|
|
$
|
13,384
|
|
|
Add: Gain on Domain Sales and Domain Sales Contribution6
|
|
|
1,463
|
|
|
3,258
|
|
713
|
|
|
862
|
|
|
1,362
|
|
|
1,330
|
|
|
1,886
|
|
|
1,584
|
|
|
|
|
6,296
|
|
|
6,162
|
|
Consolidated with Domain Sales
|
|
|
5,720
|
|
|
7,919
|
|
5,535
|
|
|
4,266
|
|
|
4,517
|
|
|
4,479
|
|
|
5,314
|
|
|
5,236
|
|
|
|
|
23,440
|
|
|
19,546
|
|
|
Less: Archeo including Domain Sales3
|
|
|
4,740
|
|
|
5,600
|
|
2,471
|
|
|
2,250
|
|
|
2,270
|
|
|
2,079
|
|
|
2,716
|
|
|
2,618
|
|
|
|
|
15,061
|
|
|
9,683
|
|
|
Other
|
|
|
71
|
|
|
116
|
|
104
|
|
|
105
|
|
|
106
|
|
|
86
|
|
|
75
|
|
|
59
|
|
|
|
|
396
|
|
|
326
|
|
Call-Driven3
|
|
$
|
909
|
|
$
|
2,203
|
|
$ 2,960
|
|
$
|
1,911
|
|
$
|
2,141
|
|
$
|
2,314
|
|
$
|
2,523
|
|
$
|
2,559
|
|
|
|
$
|
7,982
|
|
$
|
9,537
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
These are non-GAAP measures of financial results which are adjusted
for sales proceeds from sales of intangible assets and/or domain
sales recognized as revenue.
|
2
|
In September 2013, Marchex announced and launched its Domains
Marketplace and through it, commenced buying and selling of domains.
Domain sales occurring after this date are included in 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
|
The financial results for Call-Driven and Archeo are preliminary and
have been derived from the unaudited condensed consolidated
financial statements of Marchex, Inc. for all periods presented.
Corporate overhead expenses have been reallocated in prior periods
to conform to current period presentation. The unaudited Call-Driven
financial results include certain direct operating expenses and
general corporate overhead expenses in all periods presented. The
unaudited Archeo financial results include direct operating expenses
for all periods presented.
|
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, direct contribution of domain sales sold through
Marchex's Domains Marketplace.
|
5
|
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.
|
6
|
Includes net gains from sales of intangible assets and direct
contribution of domain sales sold through Marchex's Domains
Marketplace.
|
|
|
|
Certain reclassifications have been made to prior periods to conform
to current period presentation and to exclude the results from
discontinued operations.
|
|
Due to rounding, the sum of quarterly amounts may not equal amounts
reported for year-to-date periods.
|
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|