Marchex Reports $11.4 Million Revenue in Q1 2025, Net Loss Increases to $1.98 Million

Marchex, Inc. reported a revenue of $11.4 million for the first quarter of 2025, a decrease of 2% from $11.6 million in the same period of 2024. The decline in revenue was attributed to lower call volumes and customer consolidation activities that reduced contract revenues. The company's net loss applicable to common stockholders increased to $1.98 million, compared to a loss of $1.45 million in the prior year, resulting in a basic and diluted net loss per share of $0.05 for both Class A and Class B shares.

Total operating expenses rose to $13.3 million, up from $12.9 million in the previous year, primarily driven by a significant increase in general and administrative expenses, which surged by 35% to $3.1 million. This increase was largely due to one-time reorganization charges and higher personnel costs. Conversely, costs of revenue decreased by 5% to $4.2 million, reflecting a strategic realignment of personnel and reduced investment in cloud infrastructure. Sales and marketing expenses also increased by 18% to $3.3 million, influenced by higher amortization and depreciation charges.

In terms of operational metrics, the company maintained a stable customer base, with 4,660,927 shares of Class A common stock and 39,240,803 shares of Class B common stock outstanding as of May 7, 2025. The company continues to focus on enhancing its AI-powered conversational analytics technology, which is central to its business strategy. However, the company faces challenges in customer retention, as approximately 36% of its revenue comes from its five largest customers, highlighting a significant concentration risk.

Looking ahead, Marchex anticipates that its resources will be sufficient to fund operations for at least the next twelve months, although it acknowledges the potential need for additional equity or debt financing to support its acquisition strategy and long-term obligations. The company is also aware of macroeconomic factors that could impact its operating plans and financial performance. As it navigates these challenges, Marchex remains committed to leveraging its technology to drive operational excellence and revenue growth in the conversational analytics market.