Marchex, Inc. (MCHX) Q3 2025 Earnings Call Transcript
Revenue for Q3 2025 $11.5 million, down from $11.7 million in Q2 2025. The decrease was due to migration activities from legacy platforms to the new Marchex Engage platform, despite favorable impacts from new sales and existing customer upsells.
Cash on balance sheet $10.3 million, down from $10.5 million at the end of Q2 2025. The decrease was primarily due to the timing of customer payments at the end of the quarter.
Gross profit margins Anticipated to improve over time due to a lower cost structure, which could enable meaningful future operating and financial leverage as new products and features sell through.
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Marchex Launches New AI-Driven Phone Attribution Analysis Feature
- AI-Driven Phone Attribution: Marchex's new feature within its Engage platform enables businesses to accurately attribute phone calls driven by AI search engines, even when customers do not visit a website, thereby enhancing visibility into customer interactions and revenue potential.
- Comprehensive Attribution Framework: By integrating Dynamic Number Insertion (DNI), AI-Powered Conversation Intelligence, Answer Engine Optimization (AEO), and GA4 integration, Marchex provides businesses with a robust attribution solution that helps maintain competitiveness in AI-driven customer engagement.
- GA4 Unified Analytics: The new capability allows organizations to log AI-driven phone calls as GA4 events, enabling them to tie calls to marketing campaigns and channel groupings, which boosts ROI and optimizes customer acquisition strategies.
- Market Adaptability Enhancement: As AI search becomes a dominant channel for consumer discovery, Marchex's new feature aids businesses in adapting to this shift by providing accurate attribution and outcome-centric insights, ensuring they remain ahead in a rapidly evolving market.
Marchex (MCHX) Achieves Break-Even Earnings in Q3
Earnings Performance: Marchex (MCHX) reported break-even quarterly earnings per share, missing the Zacks Consensus Estimate of $0.01, and compared to a loss of $0.01 per share a year ago. The company has only surpassed consensus EPS estimates once in the last four quarters.
Revenue Trends: The company posted revenues of $11.51 million for the quarter, falling short of the Zacks Consensus Estimate by 3.49% and down from $12.55 million a year ago. Marchex has not beaten revenue estimates in the last four quarters.
Stock Outlook: Marchex shares have declined about 8.6% year-to-date, underperforming the S&P 500's 16.5% gain. The stock currently holds a Zacks Rank #3 (Hold), indicating expected performance in line with the market.
Industry Context: The Internet - Services industry, to which Marchex belongs, is ranked in the bottom 41% of Zacks industries, suggesting that the overall industry outlook could significantly impact Marchex's stock performance moving forward.
