Marchex, Inc. (NASDAQ:MCHX) today reported certain preliminary financial results for the quarter ended December 31, 2011.
Marchex expects revenue will range from $38.8 million to $39.0 million for the fourth quarter of 2011 compared with $28.0 million for the same period of 2010 and compared with previous guidance of more than $40.0 million for the fourth quarter of 2011. In addition, Marchex estimates Adjusted OIBA will range from $5.3 million to $5.5 million in the fourth quarter of 2011 compared with $2.3 million for the same period of 2010 and compared with previous guidance of $5.4 million or more for the fourth quarter of 2011. This implies an Adjusted EBITDA range of $6.3 million to $6.5 million for the fourth quarter of 2011 compared with $3.4 million for the same period of 2010 and compared with previous guidance of $6.4 million or more for the fourth quarter of 2011.
“During the fourth quarter, our business experienced year-over-year revenue growth driven by the growth in our call advertising products,” said Michael Arends, Marchex Chief Financial Officer. “However, non-call-driven revenues fell short of expectations during the quarter and we continue to see weakness here given market factors and our decision in recent years to concentrate our investment in product development and support for our higher growth, call-driven products. We continue to have confidence that call-based products will be the core driver of growth, and believe that our concentration on product development and support for our higher growth, call-driven products will pay off as the market continues to evolve.”
Russell Horowitz, Marchex Chairman and CEO, added, “We have had solid growth in our call-driven products over the last two-plus years and have seen good advertiser adoption and validation in our overall call advertising business. With that said, our sales strategy to direct national call advertisers and resellers is still evolving, and we need to remain focused on broadening our footprint with these advertisers in order to minimize concentrations. With direct national advertisers and resellers, we do have exposure to period-to-period variability with committed budgets, which can translate to variability in our financial performance. We will continue making investment decisions focused on our long-term opportunity to be a leader in this emerging market.”