The 10-second takeaway
For the quarter ended March 31 (Q1), Marchex beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. Non-GAAP earnings per share dropped. GAAP earnings per share increased to zero.
Gross margins contracted, operating margins grew, net margins increased.
Marchex reported revenue of $36.2 million. The four analysts polled by S&P Capital IQ foresaw net sales of $35.1 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.04. The two earnings estimates compiled by S&P Capital IQ anticipated $0.03 per share. Non-GAAP EPS of $0.04 for Q1 were 20% lower than the prior-year quarter's $0.05 per share. GAAP EPS shrank to zero from the prior-year quarter's -$0.02.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 40.9%, 250 basis points worse than the prior-year quarter. Operating margin was -2.1%, 410 basis points better than the prior-year quarter. Net margin was 0.2%, 220 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $35.9 million. On the bottom line, the average EPS estimate is $0.03.
Next year's average estimate for revenue is $145.8 million. The average EPS estimate is $0.19.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 113 members out of 131 rating the stock outperform, and 18 members rating it underperform. Among 40 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give Marchex a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Marchex is outperform, with an average price target of $6.00.
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