Marchex, Inc. (NASDAQ:MCHX) reported its results for the quarter ended June 30, 2011 yesterday and had a nice quarter.
Shares of Marchex are up over 19% today in an otherwise down market on the news (trading at $9.34 as of time of publication.
Here are some of the highlights of the earnings report:
Second Quarter 2011 Consolidated Financial Results:
- Revenue was $38.8 million for the second quarter of 2011, compared to $21.4 million for the same period of 2010.
- GAAP net income applicable to common stockholders was $80,000 for the second quarter of 2011 or $0.00 per diluted share. This compares to GAAP net loss applicable to common stockholders of $3.2 million or $0.10 per diluted share for the same period of 2010.
- Adjusted EBITDA was $6.0 million in the second quarter of 2011, compared to ($0.5) million for the same period of 2010. A reconciliation of adjusted EBITDA to GAAP net cash provided by operating activities is included in the financial tables attached to this release.
For the second quarter of 2011, revenue from Publishing, which is Marchex’s proprietary local and category websites that fulfill advertiser campaigns, was $5.4 million.
During the second quarter of 2011, Marchex sold a small number of non-strategic domains that yielded $2.7 million.
Marchex also purchased 379,000 shares of its outstanding Class B common stock for a total price of $2.8 million, bringing its total shares repurchased under its stock repurchase program to 10.4 million shares, or 28% of its outstanding common stock.
“Our performance in the second quarter represents an initial point of validation for Marchex and for all the hard work our people have poured into our company. It also highlights that the bet we made several years ago to be a leader in Digital Call Advertising is beginning to pay off,” said Russell C. Horowitz, Marchex Chairman and CEO. “While we are pleased with our progress, we also recognize that the digital call advertising industry is in its early stages, and we will need to stay focused on continued execution in driving live connections, new customers and more sales for our call advertisers.”
Marchex Guidance:
The following forward-looking statements reflect Marchex’s expectations as of August 4, 2011.
Financial guidance for fiscal year ending December 31, 2011: | ||
Revenue: | $147 million to $149 million | |
Adjusted Operating Income Before Amortization: | More than $18.5 million | |
Adjusted EBITDA: | Estimated add-backs of approximately $4.5 million in additional depreciation and amortization to adjusted operating income before amortization, implying an adjusted EBITDA of more than $23 million. | |
Long Term Adjusted EBITDA Margin Target: | 20% or more |
2011 GAAP income (loss) from operations is expected to be ($1.4) million or better, assuming stock-based compensation between $15.0 million and $16.5 million and amortization of intangible assets from acquisitions between $5.5 million and $6.5 million. This estimate excludes any prospective gain or loss on sales and disposals of intangible assets.
Financial guidance for the third quarter of 2011: | ||
Revenue: | $39 million – $40 million | |
Adjusted Operating Income Before Amortization: | $5.1 million or more | |
Adjusted EBITDA: | Estimated add-backs of approximately $1.0 million in additional depreciation and amortization to adjusted operating income before amortization, implying an adjusted EBITDA of $6.1 million or more. |
Third quarter GAAP income (loss) from operations is expected to be ($1.9) million or better, assuming stock-based compensation between $3.7 million and $4.5 million and amortization of intangible assets from acquisitions between $1.7 million and $2.5 million. This estimate excludes any gain or loss on sales and disposals of intangible assets.
“For the third quarter of 2011, even with our focus on investing our current revenue growth back into hiring and market leadership opportunities, we expect adjusted operating income before amortization and EBITDA to be sequentially higher than in the second quarter,” said Michael Arends, Marchex Chief Financial Officer.
Karl Jackson says
Great news. As domain purchases and value continue to rise it proves that domains for investors are the way to go.
Aggro says
@ Karl Cack-son
blablabla
Even a parrot can speak..
Yeah dolt, ever since they acquired Yun Ye’s portfolio, the stock price has more than HALVED.
Yeah – I’m sure the “smart money” (i’m sure this cliche is also well used by penny share hucksters like yourself) will be very pleased about the performance
Domainers: never let the facts get in the way of a good story.
BullS says
What are the names that they sold and pretty soon, they got no more names to sell so they go bankrupt
MHB says
Bull
They didn’t report what domains they sold
BullS says
Since they are publicity traded company, don’t they have to disclose?
MHB says
Each domain they sold, I don’t think so
By that reasoning every public company would have disclose every sale it made.
So Apple would have to disclose Mr. Smith bought an iPad, Ms. Jones bought an iPhone etc
BullS says
The can list the domains and Domains are their ASS-et
MHB says
UPDATE
Marchex closed at over 20% up today at $9.53
Karl Jackson says
Everyone has a right to their opinion. It is within that mix we can reveal the truth.
There are winning domains and loser domains out there. My suggestion would be pick a domain with Lots of EXACT Traffic as first choice. If you happen to be a large company, Realtor or Investor then pick a brand domain like: RealEstateBuyersMarket.com