Marchex, Inc. (MCHX), a leader in mobile performance advertising, today announced its financial results for the second quarter ended June 30, 2013.

 

Q2 2013 Financial Highlights:

 

• Revenue was $39.0 million for the second quarter of 2013, compared to $34.0 million for the same period in 2012.

•  to $4.6 million for the same period in 2012.

 

Marchex Q2 and Recent Call-Driven Business Highlights:

 

• Revenue. Call-driven and other related revenue was $33.9 million for the second quarter of 2013 – a 23 percent increase compared to $27.5 million for the second quarter of 2012.
• Products. For Publishers, we rolled out upgrades to our mobile and call advertising network technology. These enhancements include:
  • Performance-based monetization. This means high-quality publishers – those that deliver outcomes like call conversions – get paid based on measurable, data-driven results. In turn, these publishers yield more through Marchex’s Pay For Call ads than through integrations with other types of advertising, such as display or click.
  • Further integration of our proprietary Call Analytics technology to determine and score publisher quality.
  • Updates to our proprietary Clean Call technology to detect and block spam and prevent fraudulent calls to advertisers.
  • Updated APIs to streamline partner integration.

 

For Advertisers, we launched a new solution designed to optimize campaign performance for businesses with local branches. These advertisers have traditionally run marketing campaigns through separate national and local initiatives, but that has created widespread inefficiencies. Early customer data shows our solution helps drive brand consistency and greater customer conversions at the local level.

 

Archeo Q2 Highlights and Transaction Update:

 

• Archeo, Inc. (“Archeo”), a division of Marchex, includes non-call driven assets, which consist of domain assets and a pay-per-click advertising marketplace.

• Archeo revenue was $5.1 million for the second quarter of 2013

• During the second quarter of 2013, Archeo sold a total of 70 domains that yielded $1.3 million.

•   In July, certain pay-per-click assets were sold for proceeds totaling up to $2.6 million as part of a transaction to focus Archeo’s business on creating a premium domain marketplace.

• Those assets contributed $1.4 million in revenue and close to $100,000 in adjusted EBITDA in the second quarter and were on pace to contribute a projected $3 million in revenue and $200,000 in adjusted EBITDA for the remainder of 2013. Marchex estimates the full year impact for 2013 to be $6 million in revenue and $300,000 in EBITDA. Going forward, we anticipate this sale will be presented in our financial results as discontinued operations.

• As a result of this sale, and Marchex’s need to update and refile the Form 10 for Archeo, it is currently anticipated the spinoff will occur not earlier than the fourth quarter of 2013. During this time, Marchex will continue to review the strategic pieces of Archeo’s revised profile to optimize its value for shareholders.