The marketing company said it now expects $47.5 million to $48.5 million in call-driven revenue for the third quarter 2014. For the fourth quarter of 2014 the company expects call driven revenue of $170 million to $172 million.
The lower call-driven revenue guidance is due to revised commitments from Allstate (ALL) in the fourth quarter. The insurance company is moving towards a fixed fee pay model as opposed to a performance-based model of payment.
The marketing company will continue working with Allstate as an integration partner using its call analytics technology.
TheStreet Ratings team rates MARCHEX INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate MARCHEX INC (MCHX) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and robust revenue growth. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."