Marchex (NASDAQ: MCHX) reported Q2 EPS of ($0.05), $0.03 better than the analyst estimate of ($0.08). Revenue for the quarter came in at $25.8 million versus the consensus estimate of $18.23 million.

Q2 2020 Financial Highlights

• Revenue was $25.8 million for the second quarter of 2020, compared to $26.3 million for the second quarter of 2019.
• Core analytics and solutions revenue was $12.5 million for the second quarter of 2020, which included the benefit of $800,000 of second quarter recognized revenues that were reserved at the end of the first quarter. Excluding this amount, core analytics and solutions revenue for the second quarter of 2020 was $11.7 million, compared to $13.4 million for the second quarter of 2019.
• Net loss was $4.5 million for the second quarter of 2020 or $0.09 per diluted share. For the second quarter of 2019, net loss was $1.1 million or $0.02 per diluted share.

Company announces plan to launch tender offer. Today, in a separate press release and 8K filed with the SEC, Marchex announced its plan to launch a joint and equal tender offer with Edenbrook Capital, LLC to purchase up to 10,000,000 shares of Class B common stock according to the details laid out in the filing.

“We are taking steps to increase our focus on the conversational analytics and sales engagement opportunity,” said Russell Horowitz, Executive Chairman and Co-CEO. “We believe this market represents a significant expansion of Marchex’s overall opportunity and we will benefit from the resulting focus. The trend toward AI-powered sales engagement solutions is a multi-year strategy that we believe will define our future. As we navigate to the other side of this extraordinary environment, we believe our investments in conversational analytics and AI-driven sales engagement solutions will lay a solid foundation for future growth.”

“With the global pandemic still in full force throughout the second quarter and continuing today, the environment for many of our customers remains fluid,” said Mike Arends, Co-CEO & Chief Financial Officer. “While many customers drove more business than anticipated into the end of the second quarter, we view this uptick with caution. July is typically a high seasonal point of the year for us with analytics volumes, however, in recent weeks, we have seen declines in certain categories more affected by the recent COVID-19 case surges. Given the wide range of possible outcomes for the year, we are preparing for several scenarios and will continue to act prudently to preserve our balance sheet and financial liquidity while not compromising the investments in AI we are making to accelerate Marchex’s overall opportunity.”

Business Outlook

Due to the continuing uncertainty facing many of our customers and rapidly shifting market conditions in the current business environment, we are not providing revenue or adjusted operating income or adjusted EBITDA guidance for the third quarter.

For earnings history and earnings-related data on Marchex (MCHX) click here.