Marchex, Inc. (NASDAQ: MCHX), the award-winning AI-powered conversation intelligence company that helps businesses turn strategic insights into the actions that drive their most valued sales outcomes, today announced its financial results for the fourth quarter and year ended December 31, 2021.
Q4 2021 and Full Year 2021 Financial Highlights
- GAAP revenue was $12.8 million for the fourth quarter of 2021, compared to $12.7 million for the fourth quarter of 2020. GAAP revenue was $53.5 million for 2021, compared to $51.2 million in 2020.
- Fourth quarter 2021 core analytics and solutions revenue was $12.8 million as compared to the fourth quarter of 2020 amount of $12.3 million, which excludes the benefit of recognizing $274,000 of revenue that was reserved at the end of the 2020 third quarter during the pandemic given it did not meet recognition criteria under our revenue recognition policies at such time. Including this amount, core analytics and solutions revenue for the fourth quarter of 2020 was $12.5 million. Core analytics and solutions revenue was $53.5 million in 2021, compared to $50.4 million in 2020.
- Net loss from continuing operations was $2.0 million for the fourth quarter of 2021 or $0.04 per diluted share, compared to a net loss of $5.7 million or $0.13 per diluted share for the fourth quarter of 2020. Net loss from continuing operations was $4.4 million for 2021 or $0.10 per diluted share, compared to a net loss of $42.0 million for 2020 or $0.93 per diluted share for 2020.
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Q4 2020 |
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Q4 2021 |
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FY 2020 |
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FY 2021 |
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GAAP Revenue |
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$12.7 million |
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$12.8 million |
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$51.2 million |
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$53.5 million |
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Non-GAAP Results: |
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Adjusted EBITDA from continuing operations |
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$(3.2) million |
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$60,000 |
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$(15.0) million |
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$(3.5) million |
- Adjusted non-GAAP income (loss) per share from continuing operations for the fourth quarter of 2021 was ($0.01) compared to ($0.09) for the fourth quarter of 2020. Adjusted non-GAAP income (loss) per share from continuing operations for 2021 was ($0.12) compared to ($0.28) for 2020.
Strategic Priorities and Growth Initiatives
- New Customer Traction and Existing Customer Expansion. Marchex saw continued momentum with new enterprise customers across multiple product lines in Auto, Home Services, Health Care and other verticals. This included traction with multiple OEM partners and the signing of a new large Home Services aggregator, which is expected to be onboarded later this year.
- Company Maintains Profitability Metrics in the Fourth Quarter. In the fourth quarter of 2021, Marchex achieved break-even Adjusted EBITDA in part through continued progress with the Company’s cost initiatives, including its technology and cloud-based infrastructure projects.
- Conversation Volumes. Conversation volume trends were sequentially flat in October versus recent prior months and the ensuing holiday periods embodied the historically normal seasonality trends of lower volumes.
- Expansion of Market Opportunities.
- Marchex Announces New Integration into Fortellis. Recently, Marchex announced its integration into the Fortellis Commerce Exchange Platform. This integration is designed to empower automotive dealers to easily deploy Marchex’s conversation intelligence and provide a better customer experience by automatically delivering up-to-date conversations, events, and outcomes within CDK Elead CRM, one of the auto industry’s largest CRMs. Through this integration, Marchex is enabling dealers to increase sales efficiency by taking the best actions needed to optimize every opportunity and sell more vehicles.
- Accelerate Product Innovation.
- Marchex Launches Conversation DNA™. The Company announced the launch of Conversation DNA, a core technology that enables voice and text conversation decoding, scoring, categorization and signal delivery across every Marchex conversation intelligence product. Powering such products as Marchex Anywhere, Engage and Engage for Automotive, and Marketing Edge, Conversation DNA identifies actionable insights from a growing base of more than one billion minutes of consumer-to-business voice conversations and hundreds of millions of text messages that Marchex’s AI powered conversation intelligence technology processes each year. The resulting AI signals enable businesses to take the actions that anticipate the needs of their consumers, deliver highly personalized experiences and increase sales.
“In the fourth quarter of 2021 and continuing through today, Marchex continues to assemble the key ingredients to capitalize on our opportunity in conversational intelligence,” said Russell Horowitz, Executive Chairman and Co-CEO. “Through expanding our opportunities with Fortune 500 customers and developing industry leading products, we are positioning ourselves to drive significant long-term growth. This year we will continue to invest in leveraging the growing base of billions of minutes of conversational data that flows through our platform to create first-ever AI-driven sales engagement signals and making those signals available to a broader base of businesses across more verticals. These investments, coupled with our cloud-based technology infrastructure initiatives, open the door to new growth opportunities as Marchex is solving an increasing array of mission critical problems for our customers across a growing number of direct and indirect sales channels.
Business Outlook
The following forward-looking statements reflect Marchex’s expectations as of March 2, 2022.
“Throughout January and the first part of February 2022, with the pandemic resurgence, we saw customer conversation volumes in key categories remain suppressed, consistent with fourth quarter 2021 levels, which we expect will impact growth to a degree in the first quarter,” said Mike Arends Co-CEO. “Despite this, we anticipate that sales traction will lead to sequential growth from last year’s fourth quarter and as compared to the first quarter of 2021. In addition, we believe we should be at or near break-even on an Adjusted EBITDA basis for the first quarter.
“Furthermore, as we continue to make progress with some of our largest customers as well as onboard new potentially significant relationships, and as our new products like our cloud-based Marchex Anywhere initiative begin to roll out, we believe we could see growth expand as we move through the year. These opportunities, along with continued traction with new product sales, are driving the expansion of our pipeline. In addition, if we see an unwinding of the pandemic impact on volumes at some point during the year, we believe that should convert to a tailwind in many of our verticals and enable us to achieve accelerating growth and potentially increasing double digit growth rates.” said Arends.
Management will hold a conference call, starting at 5:00 p.m. ET on Wednesday, March 2, 2022 to discuss its fourth quarter and year ended December 31, 2021 financial results and other company updates. Access to the live webcast of the conference call will be available online from the Investors section of Marchex’s website at www.marchex.com. An archived version of the webcast will also be available at the same location two hours after completion of the call.
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