[February 25, 2015] |
|
Marchex Announces Fourth Quarter 2014 and Full Year 2014 Results
Marchex,
Inc. (NASDAQ:MCHX), a mobile advertising technology company, today
announced its financial results for the fourth quarter and full year
ended December 31, 2014.
"Over the last several years, we have focused on bringing visibility to
the mobile advertising world through our call analytics platform.
Early on we saw the makings of a giant advertising measurement
opportunity as mobile experiences would become a major driver of sales
both online and offline, including consumer calls to businesses," said
Pete Christothoulou, Chief Executive Officer of Marchex. "In 2015 and
beyond, we will continue to support enterprise clients through call
analytics product innovations combined with delivering incredible
customer experiences."
Q4 2014 Financial Highlights1
-
GAAP revenue was $33.3 million for the fourth quarter of 2014,
compared to $39.7 million for the fourth quarter of 2013.
-
GAAP net income from continuing operations was $571,000 for the fourth
quarter of 2014, compared to GAAP net income from continuing
operations of $597,000 for the fourth quarter of 2013.
-
GAAP net income from continuing operations attributable to common
stockholders per diluted share was $0.01 for the fourth quarter of
2014. This compares to GAAP net income from continuing operations
attributable to common stockholders per diluted share of $0.02 for the
fourth quarter of 2013.
|
|
Q4 2014
|
|
Q4 2013
|
GAAP Revenue
|
|
$33.3 million
|
|
$39.7 million
|
Call-Driven and related revenue5
|
|
$30.3 million
|
|
$34.5 million
|
Non-GAAP Results:
|
Call-Driven Adjusted OIBA4
|
|
$2.5 million
|
|
$1.7 million
|
Call-Driven Adjusted EBITDA4
|
|
$3.4 million
|
|
$2.6 million
|
Adjusted OIBA4
|
|
$3.5 million
|
|
$4.3 million
|
Adjusted EBITDA4
|
|
$4.4 million
|
|
$5.2 million
|
|
|
|
|
|
Archeo Revenue including domain gains and sales2,4
|
|
$3.0 million
|
|
$5.2 million
|
Domain gains and sales2
|
|
$1.7 million
|
|
$1.6 million
|
-
Adjusted non-GAAP EPS3 from continuing operations for the
fourth quarter of 2014 was $0.05, compared to $0.07 for the fourth
quarter of 2013.
Full Year 2014 Financial Highlights1
-
GAAP revenue was $182.6 million for 2014, compared to $152.6 million
for 2013.
-
GAAP net loss from continuing operations was $19.4 million for 2014,
which includes the effect of a non-cash charge to income tax expense
of $22.3 million for a valuation allowance on our deferred tax assets
recorded in the third quarter, compared to GAAP net income from
continuing operations of $957,000 for 2013.
-
GAAP net loss from continuing operations attributable to common
stockholders per diluted share was $0.49 for 2014. This compares to
GAAP net income from continuing operations attributable to common
stockholders per diluted share of $0.03 for 2013.
|
|
FY 2014
|
|
FY 2013
|
GAAP Revenue
|
|
$182.6 million
|
|
$152.6 million
|
Call-Driven and related revenue5
|
|
$168.1 million
|
|
$135.1 million
|
Non-GAAP Results:
|
Call-Driven Adjusted OIBA4
|
|
$11.1 million
|
|
$6.3 million
|
Call-Driven Adjusted EBITDA4
|
|
$14.7 million
|
|
$9.9 million
|
Adjusted OIBA3, 4
|
|
$17.2 million
|
|
$15.8 million
|
Adjusted EBITDA3, 4
|
|
$20.9 million
|
|
$19.5 million
|
|
|
|
|
|
Archeo Revenue including domain gains and sales2,4
|
|
$14.5 million
|
|
$21.2 million
|
Domain gains and sales2
|
|
$7.4 million
|
|
$6.2 million
|
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 discontinued operations, net of tax in our condensed
consolidated statements of operations in accordance with GAAP, and are
excluded from all other results unless otherwise noted.
2Includes domain sales recognized in gains on sales
and disposals of intangible assets in 2013 and 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 Adjusted OIBA, Adjusted EBITDA and Non-GAAP EPS
include the impact of domain gains and sales. Historically, these
non-GAAP measures excluded the impact of domain gains and sales.
4 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.
5Allstate contributed revenue of $48.8 million and
$18.0 million in 2014 and 2013, respectively. Substantially all of the
2014 revenue related to the nine months ended September 30, 2014.
Marchex Q4 2014 and Recent Call-Driven Business
Highlights:
-
Revenue. Call-Driven and related revenue was $30.3 million for
the fourth quarter of 2014 compared to $34.5 million for the fourth
quarter of 2013.
-
Products. The Company recently launched Marchex
Call Analytics for Search, the newest addition to its Call
Analytics platform. For the first time, enterprise-level marketers can
track and measure which keywords drive sales from millions of mobile
consumers who call businesses directly from click-to-call ads on their
smartphones. Marketers can then improve campaigns in real time based
on this data.
Non-Operating Q4 2014 Highlights:
Marchex purchased 669,000 shares or 2% of its outstanding Class B common
stock for a total price of $2.5 million under its new share repurchase
program established in November 2014.
Business Outlook
The following forward-looking statements reflect Marchex's expectations
as of February 25, 2015, and exclude any contribution from Archeo
operations, including domain sales, and discontinued operations. Archeo
operating results would be additive to our Call-Driven revenue,
profitability, and other measures below:
Call-Driven financial guidance for the
First Quarter ending March 31, 2015
|
|
|
|
Call-Driven Revenue
|
|
$32 million or more
|
Call-Driven Adjusted OIBA 1
|
|
$1.5 million or more
|
Call Driven Adjusted EBITDA 1
|
|
$2.5 million or more
|
1 These non-GAAP Call-Driven measures assign all
Marchex corporate 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 25, 2015 to discuss its fourth quarter and year
ended December 31, 2014 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 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 25, 2015 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
including domain gains and/or sales, Adjusted OIBA and EBITDA including
and excluding domain gains and sales and Adjusted non-GAAP EPS including
and excluding domain gains and sales. Marchex also provides Call-Driven
Adjusted OIBA and EBITDA.
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 separation related
costs, as this item is 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 and acquisition and separation related costs. Adjusted
EBITDA represents income before interest, income taxes,
depreciation, amortization, stock compensation expense, and acquisition
and separation related cost. 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. Historically,
these Non-GAAP measures excluded gain/loss on sales and disposals of
intangible assets for each asset and any domain sales contribution.
Archeo revenue including
domain gains and sales represents
GAAP revenue and includes sales proceeds from the sale of domains
recognized in gain/loss on sales and disposals of intangible assets and
domain sales sold through Marchex's Domain Marketplace which are
recognized in GAAP revenue. Adjusted OIBA and
EBITDA including or excluding domain gains and sales includes
the above descriptions of Adjusted OIBA and EBITDA and includes/excludes
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 general corporate overhead
costs to the Call-Driven results. Financial analysts and
investors may use the non-GAAP historical Revenue including/excluding
domain gains and sales and Adjusted OIBA and EBITDA including/excluding
domain gains and sales 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 separation related costs, (4) interest
and other income (expense), (5) discontinued operations, net of tax and
(6) dividends paid to participating securities, and also (7) excludes
the effect of any 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. Adjusted Non-GAAP EPS excluding
domain gains and sales includes the above description of
Adjusted non-GAAP EPS and excludes domain sales contribution and
gain/loss on sales and disposals of intangible assets.
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,
|
|
|
|
|
2013
|
|
|
|
2014
|
|
Revenue
|
|
$
|
39,680
|
|
|
$
|
33,291
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
Service costs (1)
|
|
|
23,833
|
|
|
|
17,853
|
|
|
Sales and marketing (1)
|
|
|
2,832
|
|
|
|
3,090
|
|
|
Product development (1)
|
|
|
6,760
|
|
|
|
6,962
|
|
|
General and administrative (1)
|
|
|
4,382
|
|
|
|
4,796
|
|
|
Amortization of intangible assets from acquisitions
|
|
|
426
|
|
|
|
-
|
|
|
Acquisition and separation related costs
|
|
|
(62
|
)
|
|
|
-
|
|
|
Total operating expenses
|
|
|
38,171
|
|
|
|
32,701
|
|
|
Gain on sales and disposals of intangible assets, net
|
|
|
35
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
1,544
|
|
|
|
590
|
|
Interest expense and other, net
|
|
|
11
|
|
|
|
(19
|
)
|
Income from continuing operations before provision for income taxes
|
|
|
1,555
|
|
|
|
571
|
|
Income tax expense
|
|
|
958
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Net income from continuing operations
|
|
|
597
|
|
|
|
571
|
|
Discontinued operations:
|
|
|
|
|
|
Income from discontinued operations, net of tax
|
|
|
7
|
|
|
|
-
|
|
|
Gain on sale from discontinued operations, net of tax
|
|
|
1
|
|
|
|
-
|
|
Discontinued operations, net of tax
|
|
|
8
|
|
|
|
-
|
|
Net income
|
|
|
605
|
|
|
|
571
|
|
Dividends paid to participating securities
|
|
|
-
|
|
|
|
(28
|
)
|
Net income applicable to common stockholders
|
|
$
|
605
|
|
|
$
|
543
|
|
|
|
|
|
|
|
Basic and diluted net income per Class A and Class B share
applicable to common stockholders:
|
|
|
|
|
|
Continuing operations
|
|
$
|
0.02
|
|
|
$
|
0.01
|
|
|
Discontinued operations, net of tax
|
|
|
0.00
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net income per Class A and Class B share
applicable to common stockholders:
|
|
$
|
0.02
|
|
|
$
|
0.01
|
|
Dividends paid per share
|
|
$
|
-
|
|
|
$
|
0.02
|
|
Shares used to calculate basic net income per share applicable to
common stockholders
|
|
|
|
|
|
Class A
|
|
|
7,770
|
|
|
|
5,233
|
|
|
Class B
|
|
|
28,371
|
|
|
|
35,969
|
|
Shares used to calculate diluted net income per share applicable to
common stockholders
|
|
|
|
|
|
Class A
|
|
|
7,770
|
|
|
|
5,233
|
|
|
Class B
|
|
|
38,713
|
|
|
|
41,567
|
|
|
|
|
|
|
|
|
(1
|
)
|
Includes stock-based compensation allocated as follows:
|
|
|
|
|
|
Service costs
|
|
$
|
362
|
|
|
$
|
365
|
|
|
Sales and marketing
|
|
|
171
|
|
|
|
231
|
|
|
Product development
|
|
|
508
|
|
|
|
579
|
|
|
General and administrative
|
|
|
1,321
|
|
|
|
1,704
|
|
|
Total
|
|
$
|
2,362
|
|
|
$
|
2,879
|
|
|
|
|
|
|
|
|
|
|
|
|
MARCHEX, INC. AND SUBSIDIARIES
|
Condensed Consolidated Statements of Operations
|
(in thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
December 31,
|
|
|
|
|
2013
|
|
|
|
2014
|
|
Revenue
|
|
$
|
152,550
|
|
|
$
|
182,644
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
Service costs (1)
|
|
|
91,858
|
|
|
|
114,581
|
|
|
Sales and marketing (1)
|
|
|
11,182
|
|
|
|
12,251
|
|
|
Product development (1)
|
|
|
27,346
|
|
|
|
29,561
|
|
|
General and administrative (1)
|
|
|
19,385
|
|
|
|
20,923
|
|
|
Amortization of intangible assets from acquisitions
|
|
|
2,926
|
|
|
|
434
|
|
|
Acquisition and separation related costs
|
|
|
878
|
|
|
|
(68
|
)
|
|
Total operating expenses
|
|
|
153,575
|
|
|
|
177,682
|
|
|
Gain on sales and disposals of intangible assets, net
|
|
|
3,774
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
2,749
|
|
|
|
4,962
|
|
Interest expense and other, net
|
|
|
(37
|
)
|
|
|
(62
|
)
|
Income from continuing operations before provision for income taxes
|
|
|
2,712
|
|
|
|
4,900
|
|
Income tax expense
|
|
|
1,755
|
|
|
|
24,277
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) from continuing operations
|
|
|
957
|
|
|
|
(19,377
|
)
|
Discontinued operations:
|
|
|
|
|
|
Income (loss) from discontinued operations, net of tax
|
|
|
(70
|
)
|
|
|
9
|
|
|
Gain on sale from discontinued operations, net of tax
|
|
|
930
|
|
|
|
278
|
|
Discontinued operations, net of tax
|
|
|
860
|
|
|
|
287
|
|
Net income (loss)
|
|
|
1,817
|
|
|
|
(19,090
|
)
|
Dividends paid to participating securities
|
|
|
-
|
|
|
|
(127
|
)
|
Net income (loss) applicable to common stockholders
|
|
$
|
1,817
|
|
|
$
|
(19,217
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net income (loss) per Class A and Class B share
applicable to common stockholders:
|
|
|
|
|
|
Continuing operations
|
|
$
|
0.03
|
|
|
$
|
(0.49
|
)
|
|
Discontinued operations, net of tax
|
|
$
|
0.02
|
|
|
$
|
0.01
|
|
Basic and diluted net income (loss) per Class A and Class B share
applicable to common stockholders:
|
|
$
|
0.05
|
|
|
$
|
(0.48
|
)
|
Dividends paid per share
|
|
$
|
-
|
|
|
$
|
0.08
|
|
Shares used to calculate basic net income (loss) per share
applicable to common stockholders
|
|
|
|
|
|
Class A
|
|
|
8,816
|
|
|
|
5,853
|
|
|
Class B
|
|
|
26,798
|
|
|
|
34,157
|
|
Shares used to calculate diluted net income (loss) per share
applicable to common stockholders
|
|
|
|
|
|
Class A
|
|
|
8,816
|
|
|
|
5,853
|
|
|
Class B
|
|
|
36,999
|
|
|
|
40,010
|
|
|
|
|
|
|
|
|
(1
|
)
|
Includes stock-based compensation allocated as follows:
|
|
|
|
|
|
Service costs
|
|
$
|
1,180
|
|
|
$
|
1,382
|
|
|
Sales and marketing
|
|
|
645
|
|
|
|
894
|
|
|
Product development
|
|
|
1,635
|
|
|
|
2,595
|
|
|
General and administrative
|
|
|
5,777
|
|
|
|
7,032
|
|
|
Total
|
|
$
|
9,237
|
|
|
$
|
11,903
|
|
|
|
|
|
|
|
|
|
|
|
|
MARCHEX, INC. AND SUBSIDIARIES
|
Condensed Consolidated Balance Sheets
|
(in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
Assets
|
|
|
2013
|
|
|
|
2014
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
30,912
|
|
|
$
|
80,032
|
|
|
Accounts receivable, net
|
|
|
30,005
|
|
|
|
25,941
|
|
|
Prepaid expenses and other current assets
|
|
|
2,943
|
|
|
|
3,143
|
|
|
Refundable taxes
|
|
|
97
|
|
|
|
131
|
|
|
Deferred tax assets
|
|
|
1,016
|
|
|
|
-
|
|
|
|
Total current assets
|
|
|
64,973
|
|
|
|
109,247
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
5,440
|
|
|
|
5,430
|
|
|
Deferred tax assets
|
|
|
25,138
|
|
|
|
-
|
|
|
Intangibles and other assets, net
|
|
|
484
|
|
|
|
313
|
|
|
Goodwill
|
|
|
65,679
|
|
|
|
65,679
|
|
|
Intangible assets from acquisitions, net
|
|
|
434
|
|
|
|
-
|
|
|
|
Total Assets
|
|
$
|
162,148
|
|
|
$
|
180,669
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
15,922
|
|
|
$
|
13,766
|
|
|
Accrued expenses and other current liabilities
|
|
|
7,988
|
|
|
|
7,515
|
|
|
Deferred revenue
|
|
|
1,388
|
|
|
|
2,117
|
|
|
|
Total current liabilities
|
|
|
25,298
|
|
|
|
23,398
|
|
|
|
|
|
|
|
|
|
Other non-current liabilities
|
|
|
2,095
|
|
|
|
1,118
|
|
|
|
Total Liabilities
|
|
|
27,393
|
|
|
|
24,516
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A common stock
|
|
|
80
|
|
|
|
55
|
|
|
Class B common stock
|
|
|
309
|
|
|
|
373
|
|
|
Treasury stock
|
|
|
(2
|
)
|
|
|
(2,503
|
)
|
|
Additional paid-in capital
|
|
|
305,517
|
|
|
|
348,467
|
|
|
Accumulated deficit
|
|
|
(171,149
|
)
|
|
|
(190,239
|
)
|
|
|
Total Stockholders' Equity
|
|
|
134,755
|
|
|
|
156,153
|
|
|
|
Total Liabilities and Stockholders' Equity
|
|
$
|
162,148
|
|
|
$
|
180,669
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARCHEX, INC. AND SUBSIDIARIES
|
Reconciliation of GAAP Income from Operations to Operating Income
Before Amortization (OIBA)
|
and Adjusted Operating Income Before Amortization (Adjusted OIBA)
|
(in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
December 31,
|
|
|
|
|
2013
|
|
|
|
2014
|
|
Income from operations
|
|
$
|
1,544
|
|
|
$
|
590
|
|
|
Stock-based compensation
|
|
|
2,362
|
|
|
|
2,879
|
|
|
Amortization of intangible assets from acquisitions
|
|
|
426
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Operating income before amortization (OIBA)
|
|
|
4,332
|
|
|
|
3,469
|
|
|
Acquisition and separation related costs
|
|
|
(62
|
)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income before amortization (Adjusted OIBA)
|
|
$
|
4,270
|
|
|
$
|
3,469
|
|
|
Domain sales contribution
|
|
|
(1,549
|
)
|
|
|
(1,679
|
)
|
|
Gain on sales and disposals of intangible assets, net
|
|
|
(35
|
)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Adjusted OIBA excluding domain gains and sales
|
|
$
|
2,686
|
|
|
$
|
1,790
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
December 31,
|
|
|
|
|
2013
|
|
|
|
2014
|
|
|
|
|
|
|
|
Income from operations
|
|
$
|
2,749
|
|
|
$
|
4,962
|
|
|
Stock-based compensation
|
|
|
9,237
|
|
|
|
11,903
|
|
|
Amortization of intangible assets from acquisitions
|
|
|
2,926
|
|
|
|
434
|
|
|
|
|
|
|
|
|
|
|
Operating income before amortization (OIBA)
|
|
|
14,912
|
|
|
|
17,299
|
|
|
Acquisition and separation related costs
|
|
|
878
|
|
|
|
(68
|
)
|
|
|
|
|
|
|
|
|
|
Adjusted operating income before amortization (Adjusted OIBA)
|
|
$
|
15,790
|
|
|
$
|
17,231
|
|
|
Domain sales contribution
|
|
|
(2,388
|
)
|
|
|
(7,341
|
)
|
|
Gain on sales and disposals of intangible assets, net
|
|
|
(3,774
|
)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Adjusted OIBA excluding domain gains and sales
|
|
$
|
9,628
|
|
|
$
|
9,890
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain reclassifications have been made to prior periods to conform
to current presentation.
|
|
|
|
|
MARCHEX, INC. AND SUBSIDIARIES
|
Reconciliation from Net Cash provided by Operating Activities to
Adjusted EBITDA
|
(in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
December 31,
|
|
|
|
|
2013
|
|
|
|
2014
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
$
|
6,109
|
|
|
$
|
4,302
|
|
|
Changes in assets and liabilities
|
|
|
(1,636
|
)
|
|
|
58
|
|
|
Income tax expense
|
|
|
958
|
|
|
|
-
|
|
|
Interest expense and other, net
|
|
|
(14
|
)
|
|
|
20
|
|
|
Gain on sales and disposals of intangible assets, net
|
|
|
35
|
|
|
|
-
|
|
|
Loss on discontinued operations, net of tax
|
|
|
(7
|
)
|
|
|
-
|
|
|
Excess tax benefits related to stock compensation
|
|
|
(209
|
)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
$
|
5,236
|
|
|
$
|
4,380
|
|
|
Domain sales contribution
|
|
|
(1,549
|
)
|
|
|
(1,679
|
)
|
|
Gain on sales and disposals of intangible assets, net
|
|
|
(35
|
)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA excluding domain gains and sales
|
|
$
|
3,652
|
|
|
$
|
2,701
|
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
$
|
(549
|
)
|
|
$
|
(1,000
|
)
|
|
|
|
|
|
|
Net cash provided by (used in) financing activities
|
|
$
|
202
|
|
|
$
|
(3,922
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
December 31,
|
|
|
|
|
2013
|
|
|
|
2014
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
$
|
13,596
|
|
|
$
|
22,419
|
|
|
Changes in asset and liabilities
|
|
|
(1,154
|
)
|
|
|
(25,990
|
)
|
|
Income tax expense
|
|
|
1,755
|
|
|
|
24,277
|
|
|
Acquisition and separation related costs
|
|
|
940
|
|
|
|
-
|
|
|
Interest expense and other, net
|
|
|
30
|
|
|
|
62
|
|
|
Gain on sales and disposals of intangible assets, net
|
|
|
3,774
|
|
|
|
-
|
|
|
Income (loss) on discontinued operations, net of tax
|
|
|
42
|
|
|
|
(9
|
)
|
|
Tax effect on gain on sale of discontinued operations
|
|
|
563
|
|
|
|
143
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
$
|
19,546
|
|
|
$
|
20,902
|
|
|
Domain sales contribution
|
|
|
(2,388
|
)
|
|
|
(7,341
|
)
|
|
Gain on sales and disposals of intangible assets, net
|
|
|
(3,774
|
)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA excluding domain gains and sales
|
|
$
|
13,384
|
|
|
$
|
13,561
|
|
|
|
|
|
|
|
Net cash provided by (used in) investing activities
|
|
$
|
1,647
|
|
|
$
|
(3,178
|
)
|
|
|
|
|
|
|
Net cash provided by (used in) financing activities
|
|
$
|
(261
|
)
|
|
$
|
29,879
|
|
|
|
|
|
|
|
Certain reclassifications have been made to prior periods to conform
to current 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,
|
|
|
|
|
|
2013
|
|
|
|
2014
|
|
Adjusted Non-GAAP EPS from continuing operations
|
|
$
|
0.07
|
|
|
$
|
0.05
|
|
|
|
|
|
|
|
|
Net income applicable to common stockholders - diluted (GAAP EPS)
|
|
$
|
0.02
|
|
|
$
|
0.01
|
|
Shares used to calculate diluted net income per share applicable to
common stockholders
|
|
|
38,713
|
|
|
|
41,567
|
|
|
|
|
|
|
|
|
Net income applicable to common stockholders
|
|
$
|
605
|
|
|
$
|
543
|
|
|
Stock-based compensation
|
|
|
2,362
|
|
|
|
2,879
|
|
|
Acquisition and separation related costs
|
|
|
(62
|
)
|
|
|
-
|
|
|
Amortization of intangible assets from acquisitions
|
|
|
426
|
|
|
|
-
|
|
|
Interest expense and other, net
|
|
|
(11
|
)
|
|
|
19
|
|
|
Dividends paid to participating securities
|
|
|
-
|
|
|
|
28
|
|
|
Tax valuation allowance
|
|
|
-
|
|
|
|
(659
|
)
|
|
Discontinued operations, net of tax
|
|
|
(8
|
)
|
|
|
-
|
|
|
Estimated impact of income taxes
|
|
|
(676
|
)
|
|
|
(598
|
)
|
|
|
|
|
|
|
|
|
|
Adjusted Non-GAAP net income from continuing operations
|
|
$
|
2,636
|
|
|
$
|
2,212
|
|
|
Domain sales contribution
|
|
|
(1,549
|
)
|
|
|
(1,552
|
)
|
|
Gain on sales and disposals of intangible assets, net
|
|
|
(35
|
)
|
|
|
-
|
|
|
Estimated impact of income taxes on domain gains and sales
|
|
|
607
|
|
|
|
635
|
|
|
|
|
|
|
|
|
|
|
Adjusted Non-GAAP net income excluding domain gains and sales
|
|
$
|
1,659
|
|
|
$
|
1,295
|
|
|
|
|
|
|
|
|
Adjusted Non-GAAP EPS from continuing operations
|
|
$
|
0.07
|
|
|
$
|
0.05
|
|
|
|
|
|
|
|
|
|
|
Adjusted Non-GAAP EPS excluding domain gains and sales
|
|
$
|
0.04
|
|
|
$
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares used to calculate Adjusted Non-GAAP EPS (1)
|
|
|
38,713
|
|
|
|
41,567
|
|
|
|
|
|
|
|
|
(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
|
Reconciliation of GAAP EPS to Adjusted Non-GAAP EPS
|
(in thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
|
December 31,
|
|
|
|
|
|
2013
|
|
|
|
2014
|
|
Adjusted Non-GAAP EPS from continuing operations
|
|
$
|
0.27
|
|
|
$
|
0.26
|
|
|
|
|
|
|
|
|
Net income (loss) from continuing operations applicable to common
stockholders - diluted (GAAP EPS)
|
|
$
|
0.03
|
|
|
$
|
(0.49
|
)
|
Shares used to calculate diluted net income (loss) per share
applicable to common stockholders
|
|
|
36,999
|
|
|
|
40,010
|
|
|
|
|
|
|
|
|
Net income (loss) applicable to common stockholders
|
|
$
|
1,817
|
|
|
$
|
(19,217
|
)
|
|
Stock-based compensation
|
|
|
9,237
|
|
|
|
11,903
|
|
|
Acquisition and separation related costs
|
|
|
878
|
|
|
|
(68
|
)
|
|
Amortization of intangible assets from acquisitions
|
|
|
2,926
|
|
|
|
434
|
|
|
Interest expense and other, net
|
|
|
37
|
|
|
|
62
|
|
|
Dividends paid to participating securities
|
|
|
-
|
|
|
|
127
|
|
|
Tax valuation allowance
|
|
|
651
|
|
|
|
21,686
|
|
|
Discontinued operations, net of tax
|
|
|
(860
|
)
|
|
|
(287
|
)
|
|
Estimated impact of income taxes
|
|
|
(4,574
|
)
|
|
|
(3,495
|
)
|
|
|
|
|
|
|
|
|
|
Adjusted Non-GAAP net income from continuing operations
|
|
$
|
10,112
|
|
|
$
|
11,145
|
|
|
Domain sales contribution
|
|
|
(2,388
|
)
|
|
|
(7,341
|
)
|
|
Gain on sales and disposals of intangible assets, net
|
|
|
(3,774
|
)
|
|
|
-
|
|
|
Estimated impact of income taxes on domain gains and sales
|
|
|
2,306
|
|
|
|
2,635
|
|
|
|
|
|
|
|
|
|
|
Adjusted Non-GAAP net income from continuing operations excluding
domain gains and sales
|
|
$
|
6,256
|
|
|
$
|
6,439
|
|
|
|
|
|
|
|
|
Adjusted Non-GAAP EPS from continuing operations
|
|
$
|
0.27
|
|
|
$
|
0.26
|
|
|
|
|
|
|
|
|
|
|
Adjusted Non-GAAP EPS from continuing operations excluding domain
gains and sales
|
|
$
|
0.17
|
|
|
$
|
0.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used to calculate diluted net income (loss) per share
applicable to common stockholders (GAAP)
|
|
|
36,999
|
|
|
|
40,010
|
|
|
Weighted average stock options and common shares subject to purchase
or cancellation (if applicable)
|
|
|
-
|
|
|
|
2,116
|
|
Diluted shares used to calculate Adjusted Non-GAAP EPS (1)
|
|
|
36,999
|
|
|
|
42,125
|
|
|
|
|
|
|
|
|
(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
|
(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
|
|
|
|
|
12/31/2013
|
|
|
|
3/31/2014
|
|
|
|
6/30/2014
|
|
|
|
9/30/2014
|
|
|
|
12/31/2014
|
|
|
|
|
12/31/2013
|
|
|
|
12/31/2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
$
|
1,544
|
|
|
$
|
1,436
|
|
|
$
|
1,711
|
|
|
$
|
1,225
|
|
|
$
|
590
|
|
|
|
$
|
2,749
|
|
|
$
|
4,962
|
|
|
Stock-based compensation
|
|
|
2,362
|
|
|
|
2,883
|
|
|
|
3,117
|
|
|
|
3,024
|
|
|
|
2,879
|
|
|
|
|
9,237
|
|
|
|
11,903
|
|
|
Amortization of intangible assets from acquisitions
|
|
|
426
|
|
|
|
403
|
|
|
|
31
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
2,926
|
|
|
|
434
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income before amortization (OIBA)
|
|
|
4,332
|
|
|
|
4,722
|
|
|
|
4,859
|
|
|
|
4,249
|
|
|
|
3,469
|
|
|
|
|
14,912
|
|
|
|
17,299
|
|
|
Acquisition and separation related costs
|
|
|
(62
|
)
|
|
|
-
|
|
|
|
(68
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
|
878
|
|
|
|
(68
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income before amortization (Adjusted OIBA)
|
|
$
|
4,270
|
|
|
$
|
4,722
|
|
|
$
|
4,791
|
|
|
$
|
4,249
|
|
|
$
|
3,469
|
|
|
|
$
|
15,790
|
|
|
$
|
17,231
|
|
|
Domain sales contribution
|
|
|
(1,549
|
)
|
|
|
(1,893
|
)
|
|
|
(2,217
|
)
|
|
|
(1,552
|
)
|
|
|
(1,679
|
)
|
|
|
|
(2,388
|
)
|
|
|
(7,341
|
)
|
|
Gain on sales and disposals of intangible assets, net
|
|
|
(35
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
(3,774
|
)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted OIBA excluding domain gains and sales
|
|
$
|
2,686
|
|
|
$
|
2,829
|
|
|
$
|
2,574
|
|
|
$
|
2,697
|
|
|
$
|
1,790
|
|
|
|
|
9,628
|
|
|
|
9,890
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from Net Cash provided by Operating Activities to
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
|
|
|
12/31/2013
|
|
|
|
3/31/2014
|
|
|
|
6/30/2014
|
|
|
|
9/30/2014
|
|
|
|
12/31/2014
|
|
|
|
|
12/31/2013
|
|
|
|
12/31/2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
$
|
6,109
|
|
|
$
|
8,078
|
|
|
$
|
3,289
|
|
|
$
|
6,750
|
|
|
$
|
4,302
|
|
|
|
$
|
13,596
|
|
|
$
|
22,419
|
|
|
Changes in assets and liabilities
|
|
|
(1,636
|
)
|
|
|
(2,984
|
)
|
|
|
1,672
|
|
|
|
(24,736
|
)
|
|
|
58
|
|
|
|
|
(1,154
|
)
|
|
|
(25,990
|
)
|
|
Income tax expense
|
|
|
958
|
|
|
|
588
|
|
|
|
709
|
|
|
|
22,980
|
|
|
|
-
|
|
|
|
|
1,755
|
|
|
|
24,277
|
|
|
Acquisition and separation related costs
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
940
|
|
|
|
-
|
|
|
Gain on sales and disposals of intangible assets, net
|
|
|
35
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
3,774
|
|
|
|
-
|
|
|
Discontinued operations, net of tax
|
|
|
(7
|
)
|
|
|
(9
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
42
|
|
|
|
(9
|
)
|
|
Tax effect of gain on sale of discontinued operations
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
143
|
|
|
|
-
|
|
|
|
|
563
|
|
|
|
143
|
|
|
Interest expense and other, net
|
|
|
(14
|
)
|
|
|
2
|
|
|
|
22
|
|
|
|
18
|
|
|
|
20
|
|
|
|
|
30
|
|
|
|
62
|
|
|
Excess tax benefits related to stock compensation
|
|
|
(209
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
$
|
5,236
|
|
|
$
|
5,675
|
|
|
$
|
5,692
|
|
|
$
|
5,155
|
|
|
$
|
4,380
|
|
|
|
$
|
19,546
|
|
|
$
|
20,902
|
|
|
Domain sales contribution
|
|
|
(1,549
|
)
|
|
|
(1,893
|
)
|
|
|
(2,217
|
)
|
|
|
(1,552
|
)
|
|
|
(1,679
|
)
|
|
|
|
(2,388
|
)
|
|
|
(7,341
|
)
|
|
Gain on sales and disposals of intangible assets, net
|
|
|
(35
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
(3,774
|
)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA excluding domain gains and sales
|
|
$
|
3,652
|
|
|
$
|
3,782
|
|
|
$
|
3,475
|
|
|
$
|
3,603
|
|
|
$
|
2,701
|
|
|
|
$
|
13,384
|
|
|
$
|
13,561
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) investing activities
|
|
$
|
(549
|
)
|
|
$
|
(807
|
)
|
|
$
|
(545
|
)
|
|
$
|
(826
|
)
|
|
$
|
(1,000
|
)
|
|
|
$
|
1,647
|
|
|
$
|
(3,178
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) financing activities
|
|
$
|
202
|
|
|
$
|
343
|
|
|
$
|
33,680
|
|
|
$
|
(222
|
)
|
|
$
|
(3,922
|
)
|
|
|
$
|
(261
|
)
|
|
$
|
29,879
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 Discontinued Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
|
|
Q113
|
|
|
|
Q213
|
|
|
|
Q313
|
|
|
|
Q413
|
|
|
|
Q114
|
|
|
|
Q214
|
|
|
|
Q314
|
|
|
|
Q414
|
GAAP Revenue
|
|
$
|
34,732
|
|
|
|
$
|
37,578
|
|
|
|
$
|
40,560
|
|
|
|
$
|
39,680
|
|
|
|
$
|
50,496
|
|
|
|
$
|
49,676
|
|
|
|
$
|
49,181
|
|
|
|
$
|
33,291
|
Adjusted OIBA
|
|
$
|
3,604
|
|
|
|
$
|
3,550
|
|
|
|
$
|
4,366
|
|
|
|
$
|
4,270
|
|
|
|
$
|
4,722
|
|
|
|
$
|
4,791
|
|
|
|
$
|
4,249
|
|
|
|
$
|
3,469
|
Adjusted EBITDA
|
|
$
|
4,516
|
|
|
|
$
|
4,480
|
|
|
|
$
|
5,314
|
|
|
|
$
|
5,236
|
|
|
|
$
|
5,675
|
|
|
|
$
|
5,692
|
|
|
|
$
|
5,155
|
|
|
|
$
|
4,380
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CALL-DRIVEN AND RELATED
|
|
Q113
|
|
|
|
Q213
|
|
|
|
Q313
|
|
|
|
Q413
|
|
|
|
Q114
|
|
|
|
Q214
|
|
|
|
Q314
|
|
|
|
Q414
|
GAAP Revenue
|
|
$
|
31,108
|
|
|
|
$
|
33,893
|
|
|
|
$
|
35,668
|
|
|
|
$
|
34,457
|
|
|
|
$
|
45,492
|
|
|
|
$
|
45,857
|
|
|
|
$
|
46,379
|
|
|
|
$
|
30,323
|
Adjusted OIBA
|
|
$
|
1,371
|
|
|
|
$
|
1,508
|
|
|
|
$
|
1,693
|
|
|
|
$
|
1,725
|
|
|
|
$
|
2,411
|
|
|
|
$
|
2,897
|
|
|
|
$
|
3,279
|
|
|
|
$
|
2,512
|
Adjusted EBITDA
|
|
$
|
2,246
|
|
|
|
$
|
2,401
|
|
|
|
$
|
2,598
|
|
|
|
$
|
2,618
|
|
|
|
$
|
3,312
|
|
|
|
$
|
3,764
|
|
|
|
$
|
4,170
|
|
|
|
$
|
3,409
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ARCHEO
|
|
Q113
|
|
|
|
Q213
|
|
|
|
Q313
|
|
|
|
Q413
|
|
|
|
Q114
|
|
|
|
Q214
|
|
|
|
Q314
|
|
|
|
Q414
|
GAAP Revenue
|
|
$
|
3,624
|
|
|
|
$
|
3,685
|
|
|
|
$
|
4,892
|
|
|
|
$
|
5,223
|
|
|
|
$
|
5,004
|
|
|
|
$
|
3,819
|
|
|
|
$
|
2,802
|
|
|
|
$
|
2,968
|
Adjusted OIBA
|
|
$
|
2,233
|
|
|
|
$
|
2,042
|
|
|
|
$
|
2,673
|
|
|
|
$
|
2,545
|
|
|
|
$
|
2,311
|
|
|
|
$
|
1,894
|
|
|
|
$
|
970
|
|
|
|
$
|
957
|
Adjusted EBITDA
|
|
$
|
2,270
|
|
|
|
$
|
2,079
|
|
|
|
$
|
2,716
|
|
|
|
$
|
2,618
|
|
|
|
$
|
2,363
|
|
|
|
$
|
1,928
|
|
|
|
$
|
985
|
|
|
|
$
|
971
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
12/31/2013
|
|
|
3/31/2014
|
|
|
6/30/2014
|
|
|
|
9/30/2014
|
|
|
|
12/31/2014
|
|
|
|
|
12/31/2013
|
|
|
12/31/2014
|
|
Marchex - Consolidated5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue - GAAP2
|
|
$
|
39,680
|
|
$
|
50,496
|
|
$
|
49,676
|
|
|
$
|
49,181
|
|
|
$
|
33,291
|
|
|
|
$
|
152,550
|
|
$
|
182,644
|
|
|
|
Revenue including domain gains3
|
|
$
|
39,715
|
|
$
|
50,496
|
|
$
|
49,676
|
|
|
$
|
49,181
|
|
|
$
|
33,291
|
|
|
|
$
|
156,324
|
|
$
|
182,644
|
|
|
|
Adjusted OIBA including domain gains and sales4
|
|
$
|
4,270
|
|
$
|
4,722
|
|
$
|
4,791
|
|
|
$
|
4,249
|
|
|
$
|
3,469
|
|
|
|
$
|
15,790
|
|
$
|
17,231
|
|
|
|
Adjusted OIBA excluding domain gains and sales4
|
|
$
|
2,686
|
|
$
|
2,829
|
|
$
|
2,574
|
|
|
$
|
2,697
|
|
|
$
|
1,790
|
|
|
|
$
|
9,628
|
|
$
|
9,890
|
|
|
|
Adjusted EBITDA including domain gains and sales4
|
|
$
|
5,236
|
|
$
|
5,675
|
|
$
|
5,692
|
|
|
$
|
5,155
|
|
|
$
|
4,380
|
|
|
|
$
|
19,546
|
|
$
|
20,902
|
|
|
|
Adjusted EBITDA excluding domain gains and sales4
|
|
$
|
3,652
|
|
$
|
3,782
|
|
$
|
3,475
|
|
|
$
|
3,603
|
|
|
$
|
2,701
|
|
|
|
$
|
13,384
|
|
$
|
13,561
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Call-Driven1 and related
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue - GAAP
|
|
$
|
34,457
|
|
$
|
45,492
|
|
$
|
45,857
|
|
|
$
|
46,379
|
|
|
$
|
30,323
|
|
|
|
$
|
135,126
|
|
$
|
168,051
|
|
|
|
Adjusted OIBA4
|
|
$
|
1,725
|
|
$
|
2,411
|
|
$
|
2,897
|
|
|
$
|
3,279
|
|
|
$
|
2,512
|
|
|
|
$
|
6,297
|
|
$
|
11,099
|
|
|
|
Adjusted EBITDA4
|
|
$
|
2,618
|
|
$
|
3,312
|
|
$
|
3,764
|
|
|
$
|
4,170
|
|
|
$
|
3,409
|
|
|
|
$
|
9,863
|
|
$
|
14,655
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Archeo1,5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue - GAAP2
|
|
$
|
5,223
|
|
$
|
5,004
|
|
$
|
3,819
|
|
|
$
|
2,802
|
|
|
$
|
2,968
|
|
|
|
$
|
17,424
|
|
$
|
14,593
|
|
|
|
Revenue including domain gains3
|
|
$
|
5,258
|
|
$
|
5,004
|
|
$
|
3,819
|
|
|
$
|
2,802
|
|
|
$
|
2,968
|
|
|
|
$
|
21,198
|
|
$
|
14,593
|
|
|
|
Adjusted OIBA including domain gains and sales4
|
|
$
|
2,545
|
|
$
|
2,311
|
|
$
|
1,894
|
|
|
$
|
970
|
|
|
$
|
957
|
|
|
|
$
|
9,493
|
|
$
|
6,132
|
|
|
|
Adjusted OIBA excluding domain gains and sales4
|
|
$
|
961
|
|
$
|
418
|
|
$
|
(323
|
)
|
|
$
|
(582
|
)
|
|
$
|
(722
|
)
|
|
|
$
|
3,331
|
|
$
|
(1,209
|
)
|
|
|
Adjusted EBITDA including domain gains and sales4
|
|
$
|
2,618
|
|
$
|
2,363
|
|
$
|
1,928
|
|
|
$
|
985
|
|
|
$
|
971
|
|
|
|
$
|
9,683
|
|
$
|
6,247
|
|
|
|
Adjusted EBITDA excluding domain gains and sales4
|
|
$
|
1,034
|
|
$
|
470
|
|
$
|
(289
|
)
|
|
$
|
(567
|
)
|
|
$
|
(708
|
)
|
|
|
$
|
3,521
|
|
$
|
(1,094
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
2
|
|
In September 2013, Marchex launched its Domains Marketplace and
through it, commenced buying and selling of domains.
|
|
|
Domain sales occurring after this date are included in GAAP
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
|
|
Domain sales recognized in gain on sales and disposals of intangible
assets, net.
|
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, net and direct contribution of domain sales
sold through its Domains Marketplace.
|
5
|
|
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
12/31/2013
|
|
|
3/31/2014
|
|
|
6/30/2014
|
|
|
9/30/2014
|
|
|
12/31/2014
|
|
|
|
12/31/2013
|
|
|
12/31/2014
|
Revenue6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated - GAAP1
|
|
$
|
39,680
|
|
$
|
50,496
|
|
$
|
49,676
|
|
$
|
49,181
|
|
$
|
33,291
|
|
|
$
|
152,550
|
|
$
|
182,644
|
|
|
|
Add: Domain gains2
|
|
|
35
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
3,774
|
|
|
-
|
|
|
Consolidated including domain gains and sales3
|
|
|
39,715
|
|
|
50,496
|
|
|
49,676
|
|
|
49,181
|
|
|
33,291
|
|
|
|
156,324
|
|
|
182,644
|
|
|
|
Less: Archeo4 including domain gains and sales3
|
|
|
5,258
|
|
|
5,004
|
|
|
3,819
|
|
|
2,802
|
|
|
2,968
|
|
|
|
21,198
|
|
|
14,593
|
|
|
Call-Driven4 and related
|
|
$
|
34,457
|
|
$
|
45,492
|
|
$
|
45,857
|
|
$
|
46,379
|
|
$
|
30,323
|
|
|
$
|
135,126
|
|
$
|
168,051
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted OIBA5,6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated excluding domain gains and sales
|
|
$
|
2,686
|
|
$
|
2,829
|
|
$
|
2,574
|
|
$
|
2,697
|
|
$
|
1,790
|
|
|
$
|
9,628
|
|
$
|
9,890
|
|
|
|
Add: Domain gains and sales
|
|
|
1,584
|
|
|
1,893
|
|
|
2,217
|
|
|
1,552
|
|
|
1,679
|
|
|
|
6,162
|
|
|
7,341
|
|
|
Consolidated including domain gains and sales
|
|
|
4,270
|
|
|
4,722
|
|
|
4,791
|
|
|
4,249
|
|
|
3,469
|
|
|
|
15,790
|
|
|
17,231
|
|
|
|
Less: Archeo4 including domain gains and sales
|
|
|
2,545
|
|
|
2,311
|
|
|
1,894
|
|
|
970
|
|
|
957
|
|
|
|
9,493
|
|
|
6,132
|
|
|
Call-Driven4 and related
|
|
$
|
1,725
|
|
$
|
2,411
|
|
$
|
2,897
|
|
$
|
3,279
|
|
$
|
2,512
|
|
|
$
|
6,297
|
|
$
|
11,099
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA5,6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated excluding domain gains and sales
|
|
$
|
3,652
|
|
$
|
3,782
|
|
$
|
3,475
|
|
$
|
3,603
|
|
$
|
2,701
|
|
|
$
|
13,384
|
|
$
|
13,561
|
|
|
|
Add: Domain gains and sales
|
|
|
1,584
|
|
|
1,893
|
|
|
2,217
|
|
|
1,552
|
|
|
1,679
|
|
|
|
6,162
|
|
|
7,341
|
|
|
Consolidated including domain gains and sales
|
|
|
5,236
|
|
|
5,675
|
|
|
5,692
|
|
|
5,155
|
|
|
4,380
|
|
|
|
19,546
|
|
|
20,902
|
|
|
|
Less: Archeo4 including domain gains and sales
|
|
|
2,618
|
|
|
2,363
|
|
|
1,928
|
|
|
985
|
|
|
971
|
|
|
|
9,683
|
|
|
6,247
|
|
|
Call-Driven4 and related
|
|
$
|
2,618
|
|
$
|
3,312
|
|
$
|
3,764
|
|
$
|
4,170
|
|
$
|
3,409
|
|
|
$
|
9,863
|
|
$
|
14,655
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
In September 2013, Marchex launched its Domains Marketplace and
through it, commenced buying and selling of domains.
|
|
|
Domain sales occurring after this date are included in GAAP
revenue and related cost in service cost. Prior to this date,
domain sales were recognized in gain on sales and disposals of
intangible assets, net in the unaudited condensed consolidated
financial statements.
|
2
|
|
Domain sales recognized in gain on sales and disposals of intangible
assets, net in the unaudited condensed consolidated financial
statements.
|
3
|
|
Domain sales recognized in either gain on sales and disposals of
intangible assets or in revenue in the unaudited condensed
consolidated financial statements.
|
4
|
|
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.
|
5
|
|
These are non-GAAP measures of operating results and liquidity.
These non-GAAP measures are adjusted for net gains from sales of
intangible assets, net and direct contribution of domain sales
sold through its Domains Marketplace.
|
6
|
|
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due to rounding, the sum of quarterly amounts may not equal amounts
reported for year-to-date periods.
|
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|