Release Date: October 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Marchex Inc (MCHX, Financial) is focusing on product innovation with new AI-driven features and enhancements, including sentiment analysis and vertical-specific solutions.
- The company is expanding its sales team and marketing capabilities to drive growth in 2025 and beyond.
- Marchex Inc (MCHX) is making progress on its 'One Stack' initiative, which aims to create a more scalable technical foundation and streamline operations.
- The company reported a slight increase in revenue from the second quarter of 2024, indicating some positive momentum.
- Marchex Inc (MCHX) is leveraging its vast direct first-party conversational data to expand its capabilities and provide valuable insights to customers.
Negative Points
- Revenue for the third quarter of 2024 was slightly down compared to the same quarter last year, indicating challenges in maintaining growth.
- The company anticipates a revenue decline in the fourth quarter of 2024 due to expected seasonality of call volume.
- Adjusted EBITDA for the third quarter of 2024 was lower than the same period last year, reflecting ongoing financial challenges.
- Marchex Inc (MCHX) is facing headwinds from certain customer segments, such as small business resellers, which could impact future performance.
- The company reported a GAAP net loss for the third quarter of 2024, highlighting ongoing profitability challenges.
Q & A Highlights
Q: With the product rollouts happening in Q4 across specific verticals, could you clarify the timeline and when we might see the impact on sales?
A: We've already rolled out a couple of products this year. The ones in Q4 have been piloted with clients, and we'll continue to innovate and productize AI-driven capabilities. The transition to one stack will allow us to invest more in go-to-market strategies and ease of onboarding for clients. We are already in the market discussing these with current clients.
Q: Could you elaborate on your AI capabilities and what is currently in the pipeline?
A: We have a dedicated team working on AI capabilities, reporting to our CRO and head of product. We are building continuously, with significant delivery milestones expected on March 1 and June 1. We have a strategic plan in place and feel confident about our product and marketing teams.
Q: Can you elaborate on the new customer wins this year, including the type of customer and use case?
A: We have wins in both our enterprise and commercial groups, with varying sizes depending on the verticals. We are seeing success across all mentioned verticals, and our progress with the one stack initiative is enhancing our ability to scale and innovate.
Q: When do you expect the one stack initiative to be fully complete?
A: We are now in the cloud, and soon we will have no legacy co-locations. We will continue to innovate on AI signals, becoming more efficient each month. Our movement to a SaaS platform is well-received by clients, and we are making good progress.
Q: Regarding sales and marketing investment, do you need new products out before making a push, or is the push already underway?
A: We are already selling what we have, and the transition to one stack will allow us to sell at a faster speed. The real breakout moment could be through channel partnerships, leveraging our API and supporting our go-to-market motion.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
