Marchex (MCHX) Lowers 2Q Revenue Guidance Outlook

Marchex, Inc. (NASDAQ: MCHX) today announced an update to its financial guidance for the second quarter ending June 30, 2018.

The following forward-looking statements reflect Marchex's expectations as of May 29, 2018. The Company expects revenue will range from $19.5 to $21.0 million for the second quarter ending June 30, 2018 compared to previous guidance of $21 million or more. In addition, the Company is reiterating its previous second quarter guidance for income (loss) from operations of ($2) million or better, Adjusted OIBA1 loss of ($1) million or better, and Adjusted EBITDA1 of breakeven or better.

“While we continue to create meaningful customer opportunities for 2018, particularly with our analytics products, media marketplace budget allocation changes from a few of our customers have caused us to revise our revenue outlook for the second quarter,” said Mike Arends, Chief Financial Officer. “While the changes in budget allocations may improve our second half of the year outlook, our focus remains on building a strong pipeline of opportunities, particularly with our analytics products, and making progress in our marketplace pipeline. These are not yet at the scale where they can offset media marketplace budget shifts and/or reductions. Despite these adjustments with media marketplace, we continue to expect breakeven or better for Adjusted EBITDA results in the second quarter and believe our efficiencies and disciplines there will help support us in our cash flow initiatives in the second half of the year as well.”

1 Adjusted OIBA assumes estimated stock-based compensation between $0.9 and $1.1 million and Adjusted EBITDA includes estimated addbacks of $1 million related to depreciation and amortization for the second quarter of 2018.

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