Marchex Reports Slight Revenue Decline, Improved Operating Losses and Expenses in Q3 2024

Marchex, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, reflecting a slight decline in revenue but notable improvements in operating losses and overall expenses compared to the previous fiscal period.

For the three months ended September 30, 2024, Marchex generated revenue of $12.6 million, a decrease of 2% from $12.8 million in the same period of 2023. For the nine months, revenue totaled $36.2 million, down 3% from $37.5 million year-over-year. The decline in revenue was attributed to market conditions and customer spending patterns, particularly in the automotive sector, which is a significant contributor to the company's revenue.

Operating expenses for the third quarter decreased to $13.4 million from $14.1 million in the prior year, while for the nine months, total operating expenses fell to $39.1 million from $46.0 million. This reduction in expenses was primarily driven by a $3.1 million decrease in service costs and a $2.6 million reduction in product development expenses. As a result, the loss from operations improved to $(825,000) for the third quarter, compared to $(1,320,000) in Q3 2023, and $(2.9 million) for the nine months, significantly down from $(8.5 million) in the same period last year.

Net loss applicable to common stockholders for the third quarter was $(831,000), improving from $(1,547,000) in Q3 2023. For the nine months, the net loss was $(3.0 million), a substantial decrease from $(8.8 million) in the prior year. The basic and diluted net loss per share for the third quarter was $(0.02), compared to $(0.04) in the same quarter of 2023.

As of September 30, 2024, the company reported cash and cash equivalents of $12.1 million, down from $14.6 million at the end of 2023. Current liabilities decreased to $8.7 million from $9.7 million, while total liabilities fell to $10.0 million from $11.6 million. Total stockholders' equity was reported at $34.1 million, down from $35.9 million.

Marchex continues to focus on its AI-powered conversational analytics technology, which remains the primary revenue driver. The company has not engaged in any share repurchases under its existing program, which allows for the repurchase of up to 3 million shares of Class B common stock. The company is also navigating ongoing litigation related to a previous acquisition, which may impact future financial performance.