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

Marchex (NASDAQ:MCHX) issued its quarterly earnings data 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. Marchex had a negative return on equity of 18.06% and a negative net margin of 12.44%.The firm had revenue of $11.00 million for the quarter, compared to analyst estimates of $11.20 million.

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 Price Performance

Marchex stock opened at $1.82 on Friday. The stock’s 50-day moving average is $1.68 and its 200-day moving average is $1.61. The company has a market cap of $80.63 million, a price-to-earnings ratio of -15.17 and a beta of 1.90. Marchex has a 12 month low of $1.32 and a 12 month high of $2.09.

Analyst Ratings Changes

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

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the stock. XTX Topco Ltd purchased a new stake in shares of Marchex during the 4th quarter valued at about $26,000. Jane Street Group LLC acquired a new position in shares of Marchex in the 1st quarter valued at approximately $30,000. Manatuck Hill Partners LLC purchased a new position in shares of Marchex during the 2nd quarter valued at approximately $88,000. Finally, Kanen Wealth Management LLC acquired a new stake in shares of Marchex during the first quarter worth approximately $813,000. 73.46% of the stock is owned by hedge funds and other institutional investors.

Marchex Company Profile

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.