MCHX 8-K

MARCHEX, INC.

Date: February 12, 2020

/s/ MICHAEL A. ARENDS

Michael A. Arends

Co-CEO and Chief Financial Officer

(Principal Executive Officer for SEC reporting purposes, Principal Financial Officer and Principal Accounting Officer)

Marchex Inc (MCHX)

8-K 2020-02-12 For: 2020-02-12

Added on April 08, 2026

	Q4 2018			Q4 2019				FY 2018			FY 2019
Revenue	$	23.1	million	$	28.6		million	$	85.3	million	$	106.1	million
Net cash provided by (used in) operating activities	$	1.0	million	$	(1.7	)	million	$	5.1	million	$	5.1	million
Cash Balance	$	45.2	million	$	42.5		million
Non-GAAP Results¹:
Adjusted EBITDA	$	1.2	million	$	1.0		million	$	2.2	million	$	4.4	million

Total Revenue		Approximately $25 million
Income (loss) from operations		($4.5) million or better
Adjusted OIBA^1,2		A loss of ($1.5) million or better
Adjusted EBITDA^1,2		A loss of ($1.0) million or better
Adjusted EBITDA excluding auto services investment ^1,2		Near break-even

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2018			2019			2018			2019
Revenue	$	23,131		$	28,591		$	85,251		$	106,132
Expenses:
Service costs (1)		12,720			15,586			47,804			56,537
Sales and marketing (1)		3,513			4,479			13,788			16,651
Product development (1)		4,041			5,419			15,423			20,127
General and administrative (1)		2,798			3,577			10,881			13,516
Amortization of intangible assets from acquisitions		781			1,559			781			6,263
Acquisition related costs (benefit)		352			263			462			(447	)
Total operating expenses		24,205			30,883			89,139			112,647
Loss from operations		(1,074	)		(2,292	)		(3,888	)		(6,515	)
Interest income and other, net		249			160			1,054			752
Loss before provision for income taxes		(825	)		(2,132	)		(2,834	)		(5,763	)
Income tax expense (benefit)		(188	)		(1,718	)		(156	)		(1,721	)
Net loss applicable to common stockholders	$	(637	)	$	(414	)	$	(2,678	)	$	(4,042	)

Basic and diluted net loss per Class A and Class B share applicable to common stockholders	$	(0.01	)	$	(0.01	)	$	(0.06	)	$	(0.09	)
Shares used to calculate basic net loss per share applicable to common stockholders:
Class A		5,056			4,661			5,056			4,793
Class B		37,823			41,286			37,390			40,667
Shares used to calculate diluted net loss per share applicable to common stockholders:
Class A		5,056			4,661			5,056			4,793
Class B		42,880			45,947			42,446			45,460

(1) Includes stock-based compensation allocated as follows:
Service costs	$	97		$	10		$	435		$	141
Sales and marketing		152			187			563			716
Product development		80			75			356			290
General and administrative		376			725			1,686			2,000
Total	$	705		$	997		$	3,040		$	3,147

	December 31,			December 31,
	2018			2019
Assets
Current assets:
Cash and cash equivalents	$	45,230		$	42,526
Accounts receivable, net		16,198			17,809
Prepaid expenses and other current assets		2,657			2,084
Total current assets		64,085			62,419
Property and equipment, net		2,921			3,028
Right-of-use lease asset		—			5,801
Other assets, net		917			335
Goodwill		24,442			33,433
Intangible assets from acquisitions, net		20,697			19,485
Total assets	$	113,062		$	124,501
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	5,968		$	7,082
Accrued expenses and other current liabilities		5,807			6,668
Current portion of acquisition-related liabilities		1,215			579
Deferred revenue and deposits		1,782			1,173
Lease liability current		—			1,500
Total current liabilities		14,772			17,002
Other non-current liabilities		1,287			—
Deferred tax liabilities		1,531			981
Lease liability non-current		—			5,664
Non-current portion of acquisition-related liabilities		446			—
Total liabilities		18,036			23,647
Stockholders’ equity:
Class A common stock		53			49
Class B common stock		370			396
Additional paid-in capital		350,801			360,649
Accumulated deficit		(256,198	)		(260,240	)
Total stockholders’ equity		95,026			100,854
Total liabilities and stockholders’ equity	$	113,062		$	124,501

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2018			2019			2018			2019
Loss from operations	$	(1,074	)	$	(2,292	)	$	(3,888	)	$	(6,515	)
Stock-based compensation		705			997			3,040			3,147
Amortization of intangible assets from acquisitions		781			1,559			781			6,263
Acquisition related costs (benefit)		352			263			462			(447	)
Adjusted operating income before amortization (Adjusted OIBA)	$	764		$	527		$	395		$	2,448