Marchex (NASDAQ:MCHX) Issues Earnings Results, Misses Expectations By $0.03 EPS

Marchex (NASDAQ:MCHX) posted its quarterly earnings results on Wednesday. The technology company reported ($0.01) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.02 by ($0.03), Zacks reports. The company had revenue of $11.00 million during the quarter, compared to the consensus estimate of $11.20 million. Marchex had a negative net margin of 11.15% and a negative return on equity of 14.61%.

Here are the key takeaways from Marchex’s conference call:

• Archenia acquisition completed July 1, combining Marchex’s conversational intelligence with AI-powered lead qualification, automated actions, and outcome measurement to create a broader customer-acquisition platform.
• Management cited strong early cross-selling, including a home-services customer expanding from approximately $500,000 to more than $1 million in annualized revenue, an auto-services pilot with potential for at least $1 million, and a media customer with potential for 50% or more revenue growth in 2027.
• Third-quarter guidance calls for $16 million-$16.5 million in revenue and $2.3 million-$2.5 million in adjusted EBITDA, reflecting a full quarter of Archenia and continued growth in Marchex’s existing business.
• Second-quarter revenue increased to $11 million from $10.6 million, while cash declined to $8.2 million from $9 million due primarily to acquisition, restructuring, and other efficiency-related payments; management expects lower ongoing costs to improve margins over time.
• Management believes the combined company has a double-digit number of customers with potential for at least $1 million of incremental annual revenue, supports a long-term goal of exceeding $100 million in revenue, and may eventually reach a Rule of 30-to-40 performance profile.

Marchex Trading Down 2.2%

Shares of NASDAQ:MCHX opened at $1.71 on Thursday. The firm has a market capitalization of $75.80 million, a PE ratio of -15.55 and a beta of 1.90. The business’s 50 day moving average is $1.67 and its 200-day moving average is $1.61. Marchex has a 1-year low of $1.32 and a 1-year high of $2.09.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings restated a “sell (d-)” rating on shares of Marchex in a report on Friday, July 17th. One analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Reduce”.

Institutional Trading of Marchex

A number of large investors have recently bought and sold shares of the stock. XTX Topco Ltd acquired a new stake in shares of Marchex in the 4th quarter valued at $26,000. Jane Street Group LLC bought a new position in shares of Marchex in the first quarter valued at approximately $30,000. Manatuck Hill Partners LLC acquired a new position in shares of Marchex in the 2nd quarter worth approximately $88,000. Finally, Kanen Wealth Management LLC acquired a new position in shares of Marchex in the 1st quarter worth approximately $813,000. 73.46% of the stock is currently owned by institutional investors.

About Marchex

Marchex, Inc (NASDAQ: MCHX) operates a call data and analytics platform designed to help businesses measure and optimize customer interactions. The company’s core services include call tracking, conversational analytics and performance marketing solutions that attribute phone calls to specific advertising campaigns. By capturing and analyzing voice interactions, Marchex enables advertisers, agencies and brands to gain actionable insights into caller intent, marketing ROI and customer behavior.

Through its suite of technologies, Marchex offers real-time call monitoring, keyword spotting and AI-driven transcription to surface trends and conversion signals from inbound calls.