Marchex – $37 Million for The Fourth Quarter of 2007 – Domain Magnate

Marchex – $37 Million for The Fourth Quarter of 2007

Marchex reports: $37 Million for The Fourth Quarter of 2007

Fourth Quarter 2007 Consolidated Financial Results:

  • Revenue was $37.0 million for the fourth quarter of 2007, compared to $32.6 million for the same period of 2006.
  • GAAP net loss applicable to common stockholders was $774,000 for the fourth quarter of 2007 or $0.02 loss per diluted share. This compares to GAAP net income applicable to common stockholders of $5.0 million or $0.01 loss per diluted share for the same period of 2006. The GAAP diluted EPS calculation in 2006 excludes the effect of the non-cash non-recurring discount on preferred stock redemption of $5.8 million, net of dividends on the redeemed preferred shares of $197,000. The fourth quarter 2007 results included non-cash stock-based compensation expense recorded under the fair value method of $2.1 million, compared to non-cash stock-based compensation expense of $2.6 million for the same period in 2006.
  • We provide a reconciliation of GAAP diluted EPS to Adjusted Non-GAAP EPS in the financial tables attached to this press release and encourage investors to examine the reconciling adjustments between the GAAP and non-GAAP measures. Adjusted non-GAAP EPS for the fourth quarter of 2007 was $0.08, compared to $0.13 for the same period of 2006. Some Wall Street analysts use non-GAAP measures to analyze our operating results, which may include adjusted non-GAAP EPS, adjusted operating income before amortization and adjusted EBITDA. We present GAAP measures with equal or greater prominence than non-GAAP measures and such non-GAAP measures should not be considered a substitute for, or superior to, GAAP results.
  • Adjusted operating income before amortization was $5.3 million for the fourth quarter of 2007, compared to $8.3 million for the same period of 2006. A reconciliation of non-GAAP adjusted operating income before amortization to GAAP operating income and GAAP net income is included in the financial tables attached to this release.
  • Adjusted EBITDA was $7.9 million in the fourth quarter of 2007, compared to $10.0 million for the same period of 2006. A reconciliation of operating income before taxes, depreciation, amortization and gain/loss on sales of intangible assets to GAAP net cash provided by operating activities is included in the financial tables attached to this release.

Full Year 2007 Results:

  • Revenue for the year ended December 31, 2007 was $139.4 million, compared to $127.8 million for 2006.
  • GAAP net loss applicable to common stockholders was $1.4 million or $0.04 loss per diluted share for 2007. This compares to GAAP net income applicable to common stockholders of $2.8 million or $0.04 loss per diluted share for the same period of 2006. The GAAP diluted EPS calculation in 2006 excludes the effect of the non-cash non-recurring discount on preferred stock redemption of $5.8 million, net of dividends on the redeemed preferred shares of $197,000.
  • As discussed in the summary of the fourth quarter 2007 consolidated financial results, we provide a reconciliation of GAAP diluted EPS to Adjusted Non-GAAP EPS in the financial tables attached to this press release and encourage investors to examine the reconciling adjustments between the GAAP and non-GAAP measures. Adjusted non-GAAP EPS for 2007 was $0.36, compared to $0.47 for 2006.
  • Adjusted operating income before amortization was $24.0 million for 2007, compared to $33.4 million 2006. A reconciliation of non-GAAP adjusted operating income before amortization to GAAP operating income and GAAP net income is included in the financial tables attached to this release.
  • Adjusted EBITDA was $33.3 million for 2007, compared to $39.5 million for 2006. A reconciliation of operating income before taxes, depreciation, amortization and gain/loss on sales of intangible assets to GAAP net cash provided by operating activities is included in the financial tables attached to this release.

Marchexs focus on the local online opportunity led to our positive performance in the fourth quarter and increased momentum in our business, said Russell C. Horowitz, Marchex Chairman and CEO. Marchex is achieving leadership in local through two means: first, by building and delivering the most local-centric advertising platform in the industry, supporting clicks and calls; and, second, by delivering unparalleled utility and relevance to local consumers through our network of proprietary local Web sites. Our success in each of these areas is already leading Marchex to a point of scale that few companies in the local online industry possess, and is positioning us to capture increased market share and see accelerating growth.

What can I say? I love Marchex for what they do. They took a simple idea and expanded it to the highest possible scale.

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