Marchex reports Q1 2025 financials, sees strategic AI growth

SEATTLE - Marchex, Inc. (NASDAQ: MCHX), a $63 million market cap company specializing in AI-driven conversational intelligence and analytics, has disclosed its financial outcomes for Q1 2025, ending March 31. According to InvestingPro data, the company’s stock has shown significant volatility, gaining over 12% in the past week despite being down 16% year-to-date. The firm reported $11.4 million in revenue, a slight decrease from $11.6 million in the same period last year. Marchex experienced a net loss of $2.0 million, or $(0.05) per diluted share, compared to a net loss of $1.5 million, or $(0.03) per diluted share, in Q1 2024. InvestingPro analysis shows the company maintains a healthy financial position with a current ratio of 2.4, indicating strong liquidity, and notably holds more cash than debt on its balance sheet.

The adjusted EBITDA was a loss of $0.8 million for Q1 2025, including reorganization costs of $0.6 million. Excluding these costs, the adjusted EBITDA loss would have been $0.2 million, consistent with the first quarter of the previous year. The adjusted non-GAAP loss per share for the quarter was $(0.04), compared to ($0.02) for the same period in 2024.

CEO Edwin Miller expressed confidence in the company’s financial trajectory, anticipating an increase in Q2 2025 revenue and a positive adjusted EBITDA. Marchex’s strategic transformation over the past two years has repositioned it as a SaaS-based prescriptive analytics provider. Based on InvestingPro’s Fair Value analysis, the stock appears slightly overvalued at current levels, though analysts have set an ambitious price target suggesting significant upside potential. Get access to 7 more exclusive InvestingPro Tips and comprehensive analysis in the Pro Research Report. This evolution has enhanced its technology platform and product offerings, aiming to establish the company as a leader in the conversational intelligence and SaaS analytics space.

Marchex also announced a new share repurchase program, authorizing the repurchase of up to 3 million shares of its Class B common stock. The program has no expiration date and may be adjusted or terminated at any time.

The company has made significant strides in expanding its product offerings and market reach. New products include the Marchex Engage Platform, which offers capabilities such as click-to-purchase for AI signals and integration with customer data sets. Marchex has also increased its investment in sales and marketing, including channel partnerships and marketplace presence, notably in the Microsoft Azure Marketplace.

In terms of operational efficiency, Marchex anticipates improved gross profit margins in 2025 compared to 2024, due to additional SaaS revenue and efficiency gains from investments in cloud infrastructure and platform integration.

The press release includes forward-looking statements regarding Marchex’s financial plan, which reflects an ambition to reach a $50 million annual revenue run rate and a $6 million adjusted EBITDA annual run rate in 2025. However, the company acknowledges that macroeconomic uncertainties may impact this outlook. With a beta of 1.78, the stock shows higher volatility than the broader market, and analysts currently do not anticipate profitability this year, projecting an EPS of -$0.05 for FY2025.

This news is based on a press release statement from Marchex, Inc.

In other recent news, Marchex reported its fourth-quarter 2024 earnings, revealing a loss per share of -$0.03, which was larger than the forecasted -$0.01. The company’s revenue for the quarter was $11.9 million, falling short of the anticipated $12.35 million and marking a decrease from the $12.4 million reported in the same quarter of the previous year. Despite these financial setbacks, Marchex has expanded its partnership with a major automotive OEM to provide its AI-driven Marchex Engage for Sales and Service platform to nearly 3,000 auto dealers nationwide. This expansion is expected to enhance revenue growth and operational efficiency within the automotive dealerships’ sales and service departments. Additionally, Marchex is focusing on strategic growth areas, including partnerships with major companies like Microsoft, and anticipates revenue growth in 2025 with a positive adjusted EBITDA. Analysts from ROTH Capital Partners discussed the company’s technological advancements and AI innovations during a recent earnings call. The company is also addressing potential risks, such as competitive pressures and macroeconomic factors, which could impact its operations.

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