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 |
GAAP Revenue |
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$35.3 million |
|
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$34.4 million |
Call-Driven Revenue1 |
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$34.5 million |
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$34.4 million |
Non-GAAP Results2: |
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Enterprise Revenue3 |
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$24.1 million |
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$26.3 million |
Call-Driven Adjusted OIBA |
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$1.4 million |
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($1.6) million |
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 |
Call-Driven Adjusted OIBA2 |
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a loss of ($2) million to a loss of ($4) million |
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, |
|
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2015 |
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2016 |
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2015 |
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2016 |
Revenue |
|
|
|
$ |
35,346 |
|
|
|
$ |
34,412 |
|
|
|
$ |
71,261 |
|
|
|
$ |
70,397 |
|
|
|
|
|
|
|
|
|
|
|
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Expenses: |
|
|
|
|
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|
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|
|
|
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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 |
|
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|
|
11,171 |
|
Product development (1) |
|
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8,147 |
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7,555 |
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|
15,839 |
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|
15,027 |
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General and administrative (1) |
|
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4,505 |
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|
5,833 |
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|
10,204 |
|
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|
10,495 |
|
Acquisition and disposition related costs |
|
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|
118 |
|
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|
304 |
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118 |
|
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|
308 |
|
Total operating expenses |
|
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|
|
36,812 |
|
|
|
|
39,818 |
|
|
|
|
73,027 |
|
|
|
|
79,460 |
|
Impairment of goodwill |
|
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|
|
- |
|
|
|
|
(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: |
|
|
|
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|
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|
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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: |
|
|
|
|
|
|
|
|
|
|
|
|
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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. |
![](http://cts.businesswire.com/ct/CT?id=bwnews&sty=20160809006400r1&sid=mstr2&distro=nx&lang=en)
Marchex Investor Relations
Trevor Caldwell, 206-331-3600
Email: ir(at)marchex.com
or
MEDIA INQUIRIES
Marchex Corporate Communications
206-331-3434
Email: pr(at)marchex.com
View source version on businesswire.com: http://www.businesswire.com/news/home/20160809006400/en/