Marchex Announces Fourth Quarter 2014 and Full Year 2014 Results
“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
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
2Includes domain sales recognized in gains on sales
and disposals of intangible assets in 2013 and domain sales recognized
in GAAP revenue. In
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.
5
-
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:
Business Outlook
The following forward-looking statements reflect
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
Conference Call and Webcast Information
Management will hold a conference call, starting at
About
Please visit www.marchex.com,
blog.marchex.com or @marchex
on Twitter (Twitter.com/
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
Non-GAAP Financial Information:
To supplement
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
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 EBITDAassigns all
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. |
Source:
Marchex Investor Relations
Trevor Caldwell, 206-331-3600
Email:
ir(at)marchex.com
or
MEDIA INQUIRIES
Marchex
Corporate Communications
Sonia Krishnan, 206-331-3434
Email:
skrishnan(at)marchex.com