Marchex Reports Earnings

Marchex.com reported 1st Quarter 2008 Financial Results today.

The following is what they reported

Revenue was $37.0 million for the first quarter of 2008, compared to $34.2 million for the same period of 2007.

GAAP net loss applicable to common stockholders was $1.2 million for the first quarter of 2008 or $0.03 loss per diluted share. This compares to GAAP net income applicable to common stockholders of $548,000 or $0.01 per diluted share for the same period of 2007. The first quarter 2008 results included non-cash stock-based compensation expense recorded under the fair value method of $3.1 million, compared to non-cash stock-based compensation expense of $2.9 million for the same period in 2007.Adjusted operating income before amortization was $5.1 million for the first quarter of 2008, compared to $7.6 million for the same period of 2007. A reconciliation of non-GAAP adjusted operating income before amortization to GAAP operating income and GAAP net income is included in the financial tables attached to this release.

Adjusted EBITDA was $7.7 million in the first quarter of 2008, compared to $9.5 million for the same period of 2007. A reconciliation of operating income before taxes, depreciation, amortization and gain/loss on sales of intangible assets to GAAP net cash provided by operating activities is included in the financial tables attached to this release.

“Marchex’s focus on the local online industry continues to drive growth in our business,” said Russell C. Horowitz, Marchex Chairman and CEO. “Local is increasingly recognized as one of the most dynamic opportunities in the online universe and Marchex is well positioned to be a leader across both the local advertising and search ecosystems. We will continue to stay focused on executing on our objectives related to strategic partnerships, product milestones and operational objectives as we move through 2008.”

Local Advertising Services: For the first quarter of 2008, revenue from Local Advertising Services was $22.3 million. One of the primary factors driving growth on a year-over-year basis was the continued increase in the number of new advertisers using Marchex products and services.

In the first quarter, Marchex added more than 10,000 new advertisers through its local aggregator partnerships and direct sales channel. Marchex now has more than 65,000 advertisers using its products and services and, based on current growth rates, is updating its forecast to reflect that it now anticipates it will have more than 100,000 advertisers using its products and services by the end of 2009, up from a forecast of 80,000 advertisers previously.

Revenue from Marchex’s Local Search Network for the was $14.7 million. Additionally, Marchex attracted more than 30 million unique visitors for the month of March 2008 and delivered more than 85 million revenue-generating events and referrals in the first quarter

During the first quarter of 2008, Marchex purchased 786,000 shares of its outstanding Class B common stock for a total price of $7.2 million, bringing its total shares repurchased under its stock repurchase program to 3 million shares, or 7% of its outstanding common stock.

The following forward-looking statements reflect Marchex’s expectations as of May 6, 2008.