[August 09, 2016] |
|
Marchex Announces Second Quarter 2016 Results
Marchex,
Inc. (NASDAQ:MCHX), a leading mobile advertising analytics company,
today announced its financial results for the second quarter ended June
30, 2016.
"We are disappointed with our Q2 financial results and revised 2016
outlook, which were primarily driven by a small number of our large
clients that reduced their marketing spend," said Pete Christothoulou,
CEO. "It does not impact our long-term relationship with these clients
or our belief in the Online-to-Offline opportunity. Our new client wins
and strong customer feedback point to a growing pipeline. We are eager
to see our strategic progress flow through to our financial performance
and, ultimately, category leadership."
Q2 2016 Financial Highlights
-
GAAP revenue was $34.4 million for the second quarter of 2016,
compared to $35.3 million for the second quarter of 2015.
-
GAAP net loss from continuing operations was $68.8 million for the
second quarter of 2016 or $1.65 per diluted share, which includes the
effect of an estimated pre-tax $63.3 million, or $1.52 per diluted
share2, non-cash impairment charge based on the
preliminary results of the company's goodwill impairment tests.
Excluding the impact of the impairment, net loss from continuing
operations was $5.5 million2 or $0.13 per diluted share2
for the second quarter of 2016. For the second quarter of 2015, GAAP
net loss from continuing operations was $1.3 million or $0.03 per
diluted share.
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Q2 2015
|
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Q2 2016
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GAAP Revenue
|
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$35.3 million
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$34.4 million
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Call-Driven Revenue1
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$34.5 million
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$34.4 million
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Non-GAAP Results2:
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Enterprise Revenue3
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$24.1 million
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$26.3 million
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Call-Driven Adjusted OIBA
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$1.4 million
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($1.6) million
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Call-Driven Adjusted EBITDA
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$2.4 million
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($0.8) million
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Cash Balance
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$104 million
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$106 million
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-
Adjusted non-GAAP earnings (loss) per share2 from
continuing operations for the second quarter of 2016 was ($0.02),
compared to $0.02 for the second quarter of 2015.
-
During the second quarter of 2016, YP contributed $8.1 million in
Call-Driven Revenue, compared to $10.4 million in the second quarter
2015.
____________________
|
1Call-Driven revenue includes revenue generated from our
contracts with YP.
|
2Reconciliations 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.
|
3Enterprise Revenue, also referred to as "Call-Driven
Revenue excluding YP", represents Call-Driven revenue excluding
revenue generated from our contracts with YP.
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Strategic Priorities Update
The following highlights our recent progress:
Grow New and Existing Enterprise Client Relationships
-
We are seeing positive progress in our sales metrics, including new
clients, estimated annualized new client bookings, and our pipeline.
We have added more than 15 enterprise scale clients in the second
quarter and are beginning to more deeply penetrate our core verticals,
such as Travel and Communications. For example, we work with four of
the largest Hotel brands of which three were signed in the first half
of 2016. Our estimated annualized new client bookings through the
first half of 2016 have grown more than 50% from the annualized run
rate of the fourth quarter of 2015 despite many of our new sales reps
not being fully ramped.
Accelerate Product Innovation
-
We continue to execute our omni-channel analytics strategy. We are on
track to deliver several new products including Display Analytics for
general availability in the near term. These products enable clients
to measure the effectiveness of display and other digital media in
driving call conversions. Upon launching Display Analytics, we expect
to also measure the consumer journey and interplay between Display and
Search.
-
We have integrated our Display Analytics technology with more than 40
of the world's leading mobile publishers, including more than half of
comScore's top ten digital media properties.
Expand Global Strategic Partnerships
-
We have a new integration with Adobe's Marketing Cloud that delivers
better return on advertising spend for enterprise search marketers
that rely upon inbound phone calls to drive sales. The integration
delivers automated insights on phone calls directly into the Adobe
Media Optimizer for each keyword, including call outcomes and
Interactive Voice Response (IVR) inputs. These insights allow
marketers to properly automate paid search bidding by allocating
budgets towards keywords that best drive over-the-phone purchases.
Business Outlook
The following forward-looking statements reflect Marchex's expectations
as of August 9, 2016.
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Total Call-Driven financial guidance for
the Third Quarter ending September 30, 2016
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Call-Driven Revenue1
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$30 million or more
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Call-Driven Adjusted OIBA2
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a loss of ($2) million to a loss of ($4) million
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Call-Driven Adjusted EBITDA2
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a loss of ($1) million to a loss of ($3) million
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We are providing annual guidance on Call-Driven revenue which includes
anticipated contributions by YP due to increased visibility in the
remaining year outlook from this customer. We anticipate Enterprise
Revenue for the full year will be lower than our previously stated
annual guidance, primarily due to increasing variability in marketing
budgets from a small number of our largest enterprise customers.
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Total Call-Driven financial guidance for
the year ending December 31, 2016
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Call-Driven Revenue1
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$128 million or more
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Conference Call and Webcast Information
Management will hold a conference call, starting at 5:00 p.m. ET on
Tuesday, August 9, 2016 to discuss its second quarter ended June 30,
2016 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 analytics company that connects online behavior
to real-world, offline actions. By linking critical touchpoints in the
customer journey, Marchex's products enable a 360-degree view of
marketing effectiveness. Brands and agencies utilize Marchex's products
to transform business performance.
Please visit www.marchex.com,
www.marchex.com/blog/
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, dispositions,
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 August 9, 2016 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, Adjusted
non-GAAP earnings (loss) per share and Call-Driven and Archeo and Other
Adjusted OIBA and EBITDA. Additionally, Marchex also provides Enterprise
Revenue, which represents Call-Driven revenue excluding revenue
generated from our contracts with Yellowpages.com LLC ("YP").
OIBA represents income (loss) from
operations plus stock-based compensation expense. 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 disposition related
costs and preliminary estimate of impairment of goodwill, as these items
are 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, acquisition and
disposition related costs, and preliminary estimate of impairment of
goodwill. Adjusted EBITDA represents
income before interest, income taxes, depreciation, amortization, stock
compensation expense, acquisition and disposition related costs, and
preliminary estimate of impairment of goodwill. Marchex believes that
Adjusted EBITDA is another alternative measure of liquidity to GAAP net
cash provided by (used in) operating activities that provides meaningful
supplemental information regarding liquidity and is used by Marchex's
management to measure its ability to fund operations and its financing
obligations.
Call-Driven Adjusted OIBA and EBITDA
include the above descriptions of Adjusted OIBA and EBITDA for the
Call-Driven segment. The Call-Driven Adjusted OIBA and EBITDA includes
all Marchex general corporate overhead costs. Archeo
and Other Adjusted OIBA and EBITDA includes the above
descriptions of Adjusted OIBA and EBITDA for the Archeo segment in 2015,
and in 2016, Other operating results primarily includes transition
activities provided to buyer of Archeo assets which are not material. Enterprise
Revenue represents Call-Driven revenue excluding
revenue generated through our contracts with YP. Financial analysts and
investors may use Adjusted OIBA and EBITDA and Enterprise Revenue to
help with comparative financial evaluation to make informed investment
decisions. Net loss from continuing operations
excluding impairment of goodwill and related per diluted share
amount represents GAAP net loss from continuing operations adding back
the impact of the preliminary estimate of impairment of goodwill with
the corresponding diluted share amount derived by using GAAP diluted
shares outstanding. Adjusted non-GAAP earnings
(loss) per share 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) acquisition and disposition
related costs, (3) interest and other income (expense), (4) discontinued
operations, net of tax, (5) dividends paid to participating securities
and (6) preliminary estimate of impairment of goodwill. Financial
analysts and investors may use Adjusted non-GAAP earnings (loss) per
share 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 amounts)
|
(unaudited)
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Three months ended
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Six Months Ended
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June 30,
|
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June 30,
|
|
|
|
|
2015
|
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|
2016
|
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2015
|
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|
2016
|
Revenue
|
|
|
|
$
|
35,346
|
|
|
|
$
|
34,412
|
|
|
|
$
|
71,261
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|
|
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$
|
70,397
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Expenses:
|
|
|
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Service costs (1)
|
|
|
|
|
19,797
|
|
|
|
|
20,477
|
|
|
|
|
39,163
|
|
|
|
|
42,459
|
|
Sales and marketing (1)
|
|
|
|
|
4,245
|
|
|
|
|
5,649
|
|
|
|
|
7,703
|
|
|
|
|
11,171
|
|
Product development (1)
|
|
|
|
|
8,147
|
|
|
|
|
7,555
|
|
|
|
|
15,839
|
|
|
|
|
15,027
|
|
General and administrative (1)
|
|
|
|
|
4,505
|
|
|
|
|
5,833
|
|
|
|
|
10,204
|
|
|
|
|
10,495
|
|
Acquisition and disposition related costs
|
|
|
|
|
118
|
|
|
|
|
304
|
|
|
|
|
118
|
|
|
|
|
308
|
|
Total operating expenses
|
|
|
|
|
36,812
|
|
|
|
|
39,818
|
|
|
|
|
73,027
|
|
|
|
|
79,460
|
|
Impairment of goodwill
|
|
|
|
|
-
|
|
|
|
|
(63,305
|
)
|
|
|
|
-
|
|
|
|
|
(63,305
|
)
|
Loss from operations
|
|
|
|
|
(1,466
|
)
|
|
|
|
(68,711
|
)
|
|
|
|
(1,766
|
)
|
|
|
|
(72,368
|
)
|
Interest expense and other, net
|
|
|
|
|
(16
|
)
|
|
|
|
(68
|
)
|
|
|
|
(41
|
)
|
|
|
|
(75
|
)
|
Loss from continuing operations before provision for income taxes
|
|
|
|
|
(1,482
|
)
|
|
|
|
(68,779
|
)
|
|
|
|
(1,807
|
)
|
|
|
|
(72,443
|
)
|
Income tax expense (benefit)
|
|
|
|
|
(185
|
)
|
|
|
|
12
|
|
|
|
|
(180
|
)
|
|
|
|
25
|
|
Net loss from continuing operations
|
|
|
|
|
(1,297
|
)
|
|
|
|
(68,791
|
)
|
|
|
|
(1,627
|
)
|
|
|
|
(72,468
|
)
|
Discontinued operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from discontinued operations, net of tax
|
|
|
|
|
(92
|
)
|
|
|
|
-
|
|
|
|
|
5,047
|
|
|
|
|
-
|
|
Gain on sale from discontinued operations, net of tax
|
|
|
|
|
22,257
|
|
|
|
|
-
|
|
|
|
|
22,032
|
|
|
|
|
-
|
|
Discontinued operations, net of tax
|
|
|
|
|
22,165
|
|
|
|
|
-
|
|
|
|
|
27,079
|
|
|
|
|
-
|
|
Net income (loss)
|
|
|
|
|
20,868
|
|
|
|
|
(68,791
|
)
|
|
|
|
25,452
|
|
|
|
|
(72,468
|
)
|
Dividends paid to participating securities
|
|
|
|
|
(19
|
)
|
|
|
|
-
|
|
|
|
|
(37
|
)
|
|
|
|
-
|
|
Net income (loss) applicable to common stockholders
|
|
|
|
$
|
20,849
|
|
|
|
$
|
(68,791
|
)
|
|
|
$
|
25,415
|
|
|
|
$
|
(72,468
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net income (loss) per Class A and Class B share
applicable to common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
|
$
|
(0.03
|
)
|
|
|
$
|
(1.65
|
)
|
|
|
$
|
(0.04
|
)
|
|
|
$
|
(1.75
|
)
|
Discontinued operations, net of tax
|
|
|
|
$
|
0.53
|
|
|
|
$
|
-
|
|
|
|
$
|
0.66
|
|
|
|
$
|
-
|
|
Basic and diluted net income (loss) per Class A and Class B share
applicable to common stockholders
|
|
|
|
$
|
0.50
|
|
|
|
$
|
(1.65
|
)
|
|
|
$
|
0.62
|
|
|
|
$
|
(1.75
|
)
|
Dividends paid per share
|
|
|
|
$
|
0.02
|
|
|
|
$
|
-
|
|
|
|
$
|
0.04
|
|
|
|
$
|
-
|
|
Shares used to calculate basic net income (loss) per share
applicable to common stockholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A
|
|
|
|
|
5,233
|
|
|
|
|
5,233
|
|
|
|
|
5,233
|
|
|
|
|
5,233
|
|
Class B
|
|
|
|
|
36,072
|
|
|
|
|
36,499
|
|
|
|
|
35,919
|
|
|
|
|
36,238
|
|
Shares used to calculate diluted net income (loss) per share
applicable to common stockholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A
|
|
|
|
|
5,233
|
|
|
|
|
5,233
|
|
|
|
|
5,233
|
|
|
|
|
5,233
|
|
Class B
|
|
|
|
|
41,305
|
|
|
|
|
41,732
|
|
|
|
|
41,152
|
|
|
|
|
41,471
|
|
(1) Includes stock-based compensation allocated as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service costs
|
|
|
|
$
|
552
|
|
|
|
$
|
207
|
|
|
|
$
|
772
|
|
|
|
$
|
405
|
|
Sales and marketing
|
|
|
|
|
309
|
|
|
|
|
529
|
|
|
|
|
554
|
|
|
|
|
968
|
|
Product development
|
|
|
|
|
644
|
|
|
|
|
629
|
|
|
|
|
1,223
|
|
|
|
|
1,161
|
|
General and administrative
|
|
|
|
|
1,162
|
|
|
|
|
2,136
|
|
|
|
|
2,909
|
|
|
|
|
2,933
|
|
Total
|
|
|
|
$
|
2,667
|
|
|
|
$
|
3,501
|
|
|
|
$
|
5,458
|
|
|
|
$
|
5,467
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARCHEX, INC. AND SUBSIDIARIES
|
Condensed Consolidated Balance Sheets
|
(in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
June 30,
|
Assets
|
|
|
|
2015
|
|
|
2016
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
109,155
|
|
|
|
$
|
105,777
|
|
Accounts receivable, net
|
|
|
|
|
24,621
|
|
|
|
|
25,301
|
|
Prepaid expenses and other current assets
|
|
|
|
|
1,784
|
|
|
|
|
2,393
|
|
Refundable taxes
|
|
|
|
|
127
|
|
|
|
|
124
|
|
Total current assets
|
|
|
|
|
135,687
|
|
|
|
|
133,595
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
|
|
5,778
|
|
|
|
|
4,454
|
|
Intangibles and other assets, net
|
|
|
|
|
222
|
|
|
|
|
222
|
|
Goodwill
|
|
|
|
|
63,305
|
|
|
|
|
-
|
|
Total Assets
|
|
|
|
$
|
204,992
|
|
|
|
$
|
138,271
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
$
|
9,460
|
|
|
|
$
|
9,614
|
|
Accrued expenses and other current liabilities
|
|
|
|
|
6,712
|
|
|
|
|
7,583
|
|
Deferred revenue
|
|
|
|
|
692
|
|
|
|
|
333
|
|
Total current liabilities
|
|
|
|
|
16,864
|
|
|
|
|
17,530
|
|
|
|
|
|
|
|
|
|
Other non-current liabilities
|
|
|
|
|
662
|
|
|
|
|
407
|
|
Total Liabilities
|
|
|
|
|
17,526
|
|
|
|
|
17,937
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A common stock
|
|
|
|
|
55
|
|
|
|
|
55
|
|
Class B common stock
|
|
|
|
|
368
|
|
|
|
|
381
|
|
Treasury stock
|
|
|
|
|
(238
|
)
|
|
|
|
(95
|
)
|
Additional paid-in capital
|
|
|
|
|
350,799
|
|
|
|
|
355,979
|
|
Accumulated deficit
|
|
|
|
|
(163,518
|
)
|
|
|
|
(235,986
|
)
|
Total Stockholders' Equity
|
|
|
|
|
187,466
|
|
|
|
|
120,334
|
|
Total Liabilities and Stockholders' Equity
|
|
|
|
$
|
204,992
|
|
|
|
$
|
138,271
|
|
|
|
|
|
|
|
|
|
|
MARCHEX, INC. AND SUBSIDIARIES
|
(in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP Loss from Operations to Operating Income
Before Amortization (OIBA) and Adjusted Operating Income Before
Amortization (Adjusted OIBA)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
Loss from operations
|
|
|
|
$
|
(1,466
|
)
|
|
|
$
|
(68,711
|
)
|
|
|
$
|
(1,766
|
)
|
|
|
$
|
(72,368
|
)
|
Stock-based compensation
|
|
|
|
|
2,667
|
|
|
|
|
3,501
|
|
|
|
|
5,458
|
|
|
|
|
5,467
|
|
Operating income before amortization (OIBA)
|
|
|
|
|
1,201
|
|
|
|
|
(65,210
|
)
|
|
|
|
3,692
|
|
|
|
|
(66,901
|
)
|
Acquisition and disposition related costs
|
|
|
|
|
118
|
|
|
|
|
304
|
|
|
|
|
118
|
|
|
|
|
308
|
|
Impairment of goodwill
|
|
|
|
|
-
|
|
|
|
|
63,305
|
|
|
|
|
-
|
|
|
|
|
63,305
|
|
Adjusted operating income before amortization (Adjusted OIBA) -
Consolidated
|
|
|
|
$
|
1,319
|
|
|
|
$
|
(1,601
|
)
|
|
|
$
|
3,810
|
|
|
|
$
|
(3,288
|
)
|
Less: Archeo and Other Adjusted OIBA1
|
|
|
|
|
(81
|
)
|
|
|
|
11
|
|
|
|
|
(222
|
)
|
|
|
|
27
|
|
Call-Driven Adjusted OIBA1
|
|
|
|
$
|
1,400
|
|
|
|
$
|
(1,612
|
)
|
|
|
$
|
4,032
|
|
|
|
$
|
(3,315
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from Net Cash provided by (used in) Operating
Activities to Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) operating activities
|
|
|
|
$
|
(1,814
|
)
|
|
|
$
|
(386
|
)
|
|
|
$
|
4,437
|
|
|
|
$
|
(2,653
|
)
|
Changes in asset and liabilities
|
|
|
|
|
3,883
|
|
|
|
|
(785
|
)
|
|
|
|
6,111
|
|
|
|
|
647
|
|
Income tax expense (benefit)
|
|
|
|
|
(185
|
)
|
|
|
|
12
|
|
|
|
|
(180
|
)
|
|
|
|
25
|
|
Acquisition and disposition related costs
|
|
|
|
|
118
|
|
|
|
|
304
|
|
|
|
|
118
|
|
|
|
|
308
|
|
Interest expense and other, net
|
|
|
|
|
16
|
|
|
|
|
68
|
|
|
|
|
41
|
|
|
|
|
75
|
|
Loss (income) from discontinued operations, net of tax
|
|
|
|
|
91
|
|
|
|
|
-
|
|
|
|
|
(5,065
|
)
|
|
|
|
-
|
|
Tax effect on gain on sale of discontinued operations
|
|
|
|
|
163
|
|
|
|
|
-
|
|
|
|
|
163
|
|
|
|
|
-
|
|
Adjusted EBITDA - Consolidated
|
|
|
|
$
|
2,272
|
|
|
|
$
|
(787
|
)
|
|
|
$
|
5,625
|
|
|
|
$
|
(1,598
|
)
|
Less: Archeo and Other Adjusted EBITDA1
|
|
|
|
|
(81
|
)
|
|
|
|
11
|
|
|
|
|
(222
|
)
|
|
|
|
27
|
|
Call-Driven Adjusted EBITDA1
|
|
|
|
$
|
2,353
|
|
|
|
$
|
(798
|
)
|
|
|
$
|
5,847
|
|
|
|
$
|
(1,625
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) investing activities
|
|
|
|
$
|
23,767
|
|
|
|
$
|
(119
|
)
|
|
|
$
|
22,840
|
|
|
|
$
|
(594
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in financing activities
|
|
|
|
$
|
(1,181
|
)
|
|
|
$
|
(321
|
)
|
|
|
$
|
(2,878
|
)
|
|
|
$
|
(131
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
|
The financial results have been derived from the condensed
consolidated financial statements. In April 2015, Marchex divested
certain Archeo domain name and related assets and the operating
results of these divested assets are included in discontinued
operations, net of tax, in the condensed consolidated financial
statements. In December 2015, Marchex sold the remaining Archeo
assets and its operating results are included in continuing
operations for 2015. Unless otherwise indicated, information
presented in these financial tables relates only to Marchex's
continuing operations. In 2016, Other operating results related
primarily to transition activities provided to the buyer of the
Archeo assets and were not significant.
|
|
|
|
|
|
MARCHEX, INC. AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP earnings (loss) per share to Adjusted
Non-GAAP earnings (loss) per share
|
(in thousands, except per share amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
Adjusted Non-GAAP earnings (loss) per share from continuing
operations
|
|
|
|
$
|
0.02
|
|
|
|
$
|
(0.02
|
)
|
|
|
$
|
0.06
|
|
|
|
$
|
(0.05
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from continuing operations applicable to common
stockholders - diluted (GAAP loss per share)
|
|
|
|
$
|
(0.03
|
)
|
|
|
$
|
(1.65
|
)
|
|
|
$
|
(0.04
|
)
|
|
|
$
|
(1.75
|
)
|
Shares used to calculate diluted net loss from continuing operations
per share applicable to common stockholders
|
|
|
|
|
41,305
|
|
|
|
|
41,732
|
|
|
|
|
41,152
|
|
|
|
|
41,471
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) applicable to common stockholders
|
|
|
|
$
|
20,849
|
|
|
|
$
|
(68,791
|
)
|
|
|
$
|
25,415
|
|
|
|
$
|
(72,468
|
)
|
Stock-based compensation
|
|
|
|
|
2,667
|
|
|
|
|
3,501
|
|
|
|
|
5,458
|
|
|
|
|
5,467
|
|
Acquisition and disposition related costs
|
|
|
|
|
118
|
|
|
|
|
304
|
|
|
|
|
118
|
|
|
|
|
308
|
|
Impairment of goodwill
|
|
|
|
|
-
|
|
|
|
|
63,305
|
|
|
|
|
-
|
|
|
|
|
63,305
|
|
Interest expense and other, net
|
|
|
|
|
16
|
|
|
|
|
68
|
|
|
|
|
41
|
|
|
|
|
75
|
|
Dividends paid to participating securities
|
|
|
|
|
19
|
|
|
|
|
-
|
|
|
|
|
37
|
|
|
|
|
-
|
|
Discontinued operations, net of tax
|
|
|
|
|
(22,165
|
)
|
|
|
|
-
|
|
|
|
|
(27,079
|
)
|
|
|
|
-
|
|
Estimated impact of income taxes
|
|
|
|
|
(646
|
)
|
|
|
|
746
|
|
|
|
|
(1,516
|
)
|
|
|
|
1,093
|
|
Adjusted Non-GAAP net income (loss) from continuing operations
|
|
|
|
$
|
858
|
|
|
|
$
|
(867
|
)
|
|
|
$
|
2,474
|
|
|
|
$
|
(2,220
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Non-GAAP earnings (loss) per share from continuing
operations
|
|
|
|
$
|
0.02
|
|
|
|
$
|
(0.02
|
)
|
|
|
$
|
0.06
|
|
|
|
$
|
(0.05
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used to calculate diluted net income (loss) from continuing
operations per share applicable to common stockholders (GAAP)
|
|
|
|
|
41,305
|
|
|
|
|
41,732
|
|
|
|
|
41,152
|
|
|
|
|
41,471
|
|
Weighted average stock options and common shares subject to purchase
or cancellation (if applicable)
|
|
|
|
|
415
|
|
|
|
|
-
|
|
|
|
|
366
|
|
|
|
|
-
|
|
Diluted shares used to calculate Adjusted Non-GAAP earnings (loss)
per share 1
|
|
|
|
|
41,720
|
|
|
|
|
41,732
|
|
|
|
|
41,518
|
|
|
|
|
41,471
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
|
For the purpose of computing the number of diluted shares for
Adjusted Non-GAAP earnings (loss) per share, Marchex uses the
accounting guidance that would be applicable for computing the
number of diluted shares for GAAP earnings (loss) per share.
|
|
|
|
|
|
Reconciliation of GAAP net loss from continuing operations to
Non-GAAP net loss from continuing operations
|
excluding impairment of goodwill
|
(in thousands, except per share amounts)
|
(unaudited)
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from continuing operations (GAAP)
|
|
|
|
$
|
(1,297
|
)
|
|
|
$
|
(68,791
|
)
|
|
|
$
|
(1,627
|
)
|
|
|
$
|
(72,468
|
)
|
Impairment of goodwill
|
|
|
|
|
-
|
|
|
|
|
63,305
|
|
|
|
|
-
|
|
|
|
|
63,305
|
|
Net loss from continuing operations excluding goodwill impairment
(NON-GAAP)
|
|
|
|
$
|
(1,297
|
)
|
|
|
$
|
(5,486
|
)
|
|
|
$
|
(1,627
|
)
|
|
|
$
|
(9,163
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from continuing operations applicable to common
stockholders - diluted (GAAP loss per share)
|
|
|
|
$
|
(0.03
|
)
|
|
|
$
|
(1.65
|
)
|
|
|
$
|
(0.04
|
)
|
|
|
$
|
(1.75
|
)
|
Impairment of goodwill per diluted share
|
|
|
|
|
-
|
|
|
|
|
1.52
|
|
|
|
|
-
|
|
|
|
|
1.53
|
|
Net loss from continuing operations excluding goodwill impairment
per diluted share (NON-GAAP)
|
|
|
|
$
|
(0.03
|
)
|
|
|
$
|
(0.13
|
)
|
|
|
$
|
(0.04
|
)
|
|
|
$
|
(0.22
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used to calculate diluted net loss from continuing
operations per share applicable to common stockholders (GAAP) and
diluted net loss from continuing operations excluding goodwill
impairment (NON-GAAP)
|
|
|
|
|
41,305
|
|
|
|
|
41,732
|
|
|
|
|
41,152
|
|
|
|
|
41,471
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARCHEX, INC. AND SUBSIDIARIES
|
Financial Summary Information
|
(in thousands)
|
(unaudited)
|
|
NON-GAAP MEASURES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED1
|
|
|
|
Q215
|
|
|
Q216
|
|
|
|
YTD Q215
|
|
|
YTD Q216
|
GAAP Revenue
|
|
|
|
$
|
35,346
|
|
|
$
|
34,412
|
|
|
|
|
$
|
71,261
|
|
|
$
|
70,397
|
|
Adjusted OIBA
|
|
|
|
$
|
1,319
|
|
|
$
|
(1,601
|
)
|
|
|
|
$
|
3,810
|
|
|
$
|
(3,288
|
)
|
Adjusted EBITDA
|
|
|
|
$
|
2,272
|
|
|
$
|
(787
|
)
|
|
|
|
$
|
5,625
|
|
|
$
|
(1,598
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CALL-DRIVEN
|
|
|
|
Q215
|
|
|
Q216
|
|
|
|
YTD Q215
|
|
|
YTD Q216
|
GAAP Revenue
|
|
|
|
$
|
34,458
|
|
|
$
|
34,412
|
|
|
|
|
$
|
69,486
|
|
|
$
|
70,376
|
|
Adjusted OIBA
|
|
|
|
$
|
1,400
|
|
|
$
|
(1,612
|
)
|
|
|
|
$
|
4,032
|
|
|
$
|
(3,315
|
)
|
Adjusted EBITDA
|
|
|
|
$
|
2,353
|
|
|
$
|
(798
|
)
|
|
|
|
$
|
5,847
|
|
|
$
|
(1,625
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ENTERPRISE REVENUE2
|
|
|
|
Q215
|
|
|
Q216
|
|
|
|
YTD Q215
|
|
|
YTD Q216
|
Call-Driven GAAP Revenue
|
|
|
|
$
|
34,458
|
|
|
$
|
34,412
|
|
|
|
|
$
|
69,486
|
|
|
$
|
70,376
|
|
Less: YP Revenue
|
|
|
|
$
|
10,362
|
|
|
$
|
8,091
|
|
|
|
|
$
|
21,119
|
|
|
$
|
16,610
|
|
Enterprise Revenue
|
|
|
|
$
|
24,096
|
|
|
$
|
26,321
|
|
|
|
|
$
|
48,367
|
|
|
$
|
53,766
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
|
In April 2015, Marchex divested certain Archeo domain name and
related assets and the operating results of these divested assets
are included in discontinued operations, net of tax, in the
condensed consolidated financial statements. In December 2015,
Marchex sold the remaining Archeo assets and its operating results
are included in continuing operations for 2015. In 2016, there were
Other operating activities that related primarily to transition
activities provided to the buyer of the Archeo assets and were not
significant. Unless otherwise indicated, information presented in
these financial tables relates only to Marchex's continuing
operations.
|
|
|
|
|
2
|
|
|
Enterprise Revenue, also referred to as "Call-Driven Revenue
excluding YP", represents Call-Driven revenue excluding revenue
generated from our contracts with YP.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160809006400/en/
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