Marchex (MCHX) AI Stock Analysis

• Market Cap: $60.76M
• Dividend Yield: N/A
• Average Volume (3M): 50.09K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.38
• Revenue Growth: -3.58%
• EPS Growth: 50.73%
• Country: US
• Employees: 163
• Sector: Communication Services
• Sector Strength: 73
• Industry: Advertising Agencies
• EPS (TTM): -0.11
• Shares Outstanding: 39,053,303
• 10 Day Avg. Volume: 64,073
• 30 Day Avg. Volume: 50,091
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.68
• Price to Cash Flow (P/CF): 23.10
• P/FCF Ratio: 22.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $3.25
• Price Target Upside: 133.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Marchex's overall score reflects significant financial challenges, including consistent losses and negative cash flows. The recent earnings call provides a cautiously optimistic outlook with strategic initiatives, but the company must address profitability issues and leverage opportunities to improve its position. While technical indicators suggest potential for a rebound, the current valuation concerns persist.

Positive Factors

Operational Leverage

The OneStack initiative aims to enhance customer acquisition and expand margins, potentially improving operational leverage over time.

Product Development

Marchex anticipates new product rollouts to lead to a return to growth, with better growth dependent on the success of go-to-market strategies.

Negative Factors

Guidance

4Q guidance was slightly below projections, impacting short-term expectations.

Revenue Diversification

The timeline for the impact of the OneStack initiative remains uncertain, affecting revenue diversification into new verticals.

Marchex Business Overview & Revenue Model

Company Description

Marchex, Inc. is a call analytics company that provides solutions to businesses seeking to connect, engage, and support customers over the phone. The company operates primarily in the digital marketing and advertising sectors, offering a suite of products designed to optimize the way businesses understand and interact with their customers through voice communication. Its core services include call tracking, call analytics, and conversational intelligence, which help businesses improve their customer experience and evaluate the effectiveness of their marketing efforts.

How the Company Makes Money

Marchex makes money by offering subscription-based services and software solutions to businesses. The company's primary revenue streams include fees from its call analytics and tracking services, which help businesses gain insights into phone call interactions with customers. These services allow businesses to measure the effectiveness of their advertising campaigns by tracking which marketing channels drive phone calls. Marchex also generates revenue through its conversational intelligence products, which analyze call data to provide actionable insights for improving customer engagement and sales strategies. Partnerships with marketing agencies and resellers also play a role in expanding its reach and customer base, contributing to its overall earnings.

Marchex Financial Statement Overview

Summary

Marchex faces significant financial challenges, with consistent losses and declining revenues. The company's low leverage provides some stability, but negative cash flows and profitability issues are critical concerns. The firm needs to enhance operational efficiency and revenue growth to improve its financial health.

Income Statement

Marchex shows a declining revenue trend with a noticeable drop over the years. The gross profit margin remains stable, but negative EBIT and net income margins indicate ongoing profitability challenges. The company has not achieved positive net income in recent years, reflecting pressure on profitability and potential operational inefficiencies.

Balance Sheet

The balance sheet displays a positive equity position, suggesting financial stability. The debt-to-equity ratio is low, indicating minimal leverage and reduced financial risk. However, the declining stockholder's equity and total assets suggest potential pressure on long-term financial health.

Cash Flow

Marchex's cash flow statements reveal persistent negative operating and free cash flow, highlighting liquidity challenges. The free cash flow to net income ratio is negative, pointing to potential cash generation issues. The lack of positive cash flows raises concerns about the company's ability to sustain operations without external financing.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
48.12M	49.91M	52.17M	53.48M	51.22M
	Gross Profit
30.95M	29.33M	31.71M	31.78M	30.33M
	EBIT
-4.45M	-9.64M	-8.07M	-11.65M	-25.45M
	EBITDA
-4.45M	-5.76M	-4.03M	2.22M	-36.18M
	Net Income Common Stockholders
-4.95M	-9.91M	-8.24M	-4.39M	-42.99M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.77M	14.61M	20.47M	27.09M	33.85M
	Total Assets
43.20M	47.48M	56.79M	65.83M	77.73M
	Total Debt
1.22M	2.10M	1.64M	3.26M	9.91M
	Net Debt
-11.55M	-12.51M	-18.84M	-23.83M	-23.94M
	Total Liabilities
10.57M	11.61M	12.68M	14.32M	25.05M
	Stockholders Equity
32.63M	35.87M	44.11M	51.50M	52.69M
Cash Flow		Free Cash Flow
-1.53M	-5.77M	-5.16M	-7.69M	-4.73M
	Operating Cash Flow
-1.10M	-4.39M	-2.29M	-6.34M	-3.37M
	Investing Cash Flow
-429.00K	-1.31M	-2.87M	-951.00K	981.00K
	Financing Cash Flow
-307.00K	-160.00K	-1.46M	528.00K	-5.49M

Marchex Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MCHX, the sentiment is Negative. The current price of 1.39 is below the 20-day moving average (MA) of 1.78, below the 50-day MA of 1.90, and below the 200-day MA of 1.83, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 28.52 is Positive, neither overbought nor oversold. The STOCH value of 3.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MCHX.

Marchex Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RAMP	70 Outperform	$1.60B	80,900.00	-0.25%	―	14.50%	―
PERI	67 Neutral	$331.47M	28.25	1.75%	―	-32.95%	-89.11%
TTD	66 Neutral	$22.94B	59.24	15.37%	―	25.63%	118.49%
MGNI	64 Neutral	$1.30B	65.47	3.10%	―	7.82%	―
Sector *	58 Neutral	$25.21B	3.07	-13.86%	4.29%	2.47%	-43.03%
APPS	50 Neutral	$271.44M	―	-101.69%	―	-15.51%	-54.09%
MCHX	46 Neutral	$60.76M	―	-14.44%	―	-3.58%	50.73%

Marchex Corporate Events

Marchex Reports Strong Q2 2023 Financial Results

Marchex has announced its financial results for the second quarter of 2023, highlighting a revenue increase driven by strong demand for its call analytics solutions. The company reported a net income improvement compared to the previous year, reflecting effective cost management and operational efficiencies. This financial performance underscores Marchex’s competitive positioning in the call analytics industry and suggests positive implications for its stakeholders.