Marchex (MCHX) AI Stock Analysis

• Market Cap: $73.32M
• Dividend Yield: N/A
• Average Volume (3M): 24.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.24
• Revenue Growth: -2.67%
• EPS Growth: 21.65%
• Country: US
• Employees: 163
• Sector: Communication Services
• Sector Strength: 86
• Industry: Advertising Agencies
• EPS (TTM): -0.04
• Shares Outstanding: 39,240,803
• 10 Day Avg. Volume: 37,573
• 30 Day Avg. Volume: 24,757
• PEG Ratio: 0.70
• Price to Book (P/B): 2.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -42.51
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 0.34
• Enterprise Value/Gross Profit: 2.17
• Enterprise Value/Ebitda: -8.02
• 1Y Price Target: $3.25
• Price Target Upside: 94.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 55 Neutral
• Price Target: $1.50 ▼( -10.18% Downside)

Marchex faces significant financial challenges with declining revenues and profitability, reflected in a moderate overall score. The company benefits from strong cost management and low debt, providing some stability. Positive earnings call guidance and strategic initiatives offer potential growth opportunities, though current valuation metrics suggest caution. Technical indicators show moderate upward momentum but indicate potential overbuying risks.

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

Financial 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 shows strong cost management with a gross margin of 64.0% but struggles with declining revenues and negative net profit margins. The balance sheet is stable with low debt but impacted by negative net income. Cash flow issues are apparent with negative operating and free cash flows, posing a risk.

Income Statement

The income statement shows declining revenues, with a revenue decrease of 4.3% from 2023 to the TTM period. Gross Profit Margin stands at 64.0% in TTM, indicating strong cost management. However, the company faces challenges with profitability as both EBIT and Net Profit Margins are negative, at -10.4% and -11.4% respectively, reflecting continued operational losses.

Balance Sheet

The balance sheet reflects a stable equity position with a Debt-to-Equity Ratio of 0.03, indicating low financial leverage. However, the continuous decline in equity and total assets over the years could be a concern. The Equity Ratio for TTM is 77.2%, showing a strong equity base, but the negative net income impacts Return on Equity, which remains negative.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, indicating potential liquidity issues. The Operating Cash Flow to Net Income Ratio is 0.23 for TTM, suggesting efficiency challenges in converting income into cash. The Free Cash Flow to Net Income Ratio is -0.31, further highlighting cash generation difficulties relative to net losses.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
47.95M	48.12M	49.91M	52.17M	53.48M	51.22M
	Gross Profit
30.70M	30.95M	29.33M	31.71M	31.78M	30.33M
	EBIT
-5.00M	-4.45M	-9.64M	-8.07M	-11.65M	-25.45M
	EBITDA
-3.20M	-1.80M	-5.76M	-4.03M	2.22M	-36.18M
	Net Income Common Stockholders
-5.48M	-4.95M	-9.91M	-8.24M	-4.39M	-42.99M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.02M	12.77M	14.61M	20.47M	27.09M	33.85M
	Total Assets
40.63M	43.20M	47.48M	56.79M	65.83M	77.73M
	Total Debt
1.10M	1.22M	2.10M	1.64M	3.26M	9.91M
	Net Debt
-8.92M	-11.55M	-12.51M	-18.84M	-23.83M	-23.94M
	Total Liabilities
9.26M	10.57M	11.61M	12.68M	14.32M	25.05M
	Stockholders Equity
31.37M	32.63M	35.87M	44.11M	51.50M	52.69M
Cash Flow		Free Cash Flow
-1.67M	-1.53M	-5.77M	-5.16M	-7.69M	-4.73M
	Operating Cash Flow
-1.25M	-1.10M	-4.39M	-2.29M	-6.34M	-3.37M
	Investing Cash Flow
-714.00K	-429.00K	-1.31M	-2.87M	-951.00K	981.00K
	Financing Cash Flow
-50.00K	-307.00K	-160.00K	-1.46M	528.00K	-5.49M

Marchex Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.67
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MCHX, the sentiment is Positive. The current price of 1.67 is above the 20-day moving average (MA) of 1.52, above the 50-day MA of 1.55, and below the 200-day MA of 1.81, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 57.95 is Neutral, neither overbought nor oversold. The STOCH value of 73.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MCHX.

Marchex Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$14.12B	6.43	-3.57%	3.69%	2.49%	-35.43%
INUV	58 Neutral	$62.74M	―	-34.39%	―	18.20%	50.14%
MCHX	55 Neutral	$73.32M	―	-16.55%	―	-2.67%	21.65%
WIMI	53 Neutral	$32.21M	6.46	8.21%	―	-8.74%	―
HHS	46 Neutral	$34.98M	―	-147.49%	―	-4.46%	-3053.30%
CDLX	45 Neutral	$96.60M	―	-135.48%	―	-12.77%	19.71%
FLNT	38 Underperform	$32.24M	―	-123.16%	―	-15.07%	33.40%

Marchex Corporate Events

Marchex Launches New Share Repurchase Program

Marchex announced a new share repurchase program to buy back up to 3 million shares of its Class B common stock, replacing previous programs. The company reported its financial results for the first quarter of 2025, showing a slight decrease in revenue and an increased net loss compared to the previous year. Despite these results, Marchex is optimistic about future growth, highlighting strategic milestones in its transformation into an AI-powered prescriptive analytics leader. The company is expanding its product platform and increasing investments in sales and marketing to support growth, while leveraging its first-party data for enhanced customer insights. Marchex also sold a domain asset for $0.8 million and expanded its auto vertical OEM sales channel, expecting these initiatives to improve financial performance and market positioning.

The most recent analyst rating on (MCHX) stock is a Buy with a $2.50 price target. To see the full list of analyst forecasts on Marchex stock, see the MCHX Stock Forecast page.

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.