Q3 2024 Marchex Inc Earnings Call
Hello, everyone.
Operator: Thank you for attending today's Marchex Q3 2024 earnings.
Thank you for attending today's March ex Q3, 'twenty 'twenty four earnings call.
Sierra: My name is Sierra and I will be your moderator for today. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you would like to ask a question, press star 1 on your telephone keypad.
My name is Sierra and I will be your moderator for today.
All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end.
If you would like to ask a question press star one on your telephone keypad.
Trevor Caldwell: I would now like to pass the conference over to our host, Trevor Caldwell, Senior Vice President of Investor Relations and Strategic Initiatives. Please go ahead.
Speaker Change: I would now like to pass the conference over to our host Trevor Caldwell Senior Vice President of Investor Relations and strategic initiatives. Please go ahead.
Edwin Miller: Thank you, Ciara. Good afternoon, everyone, and welcome to Marchex's business update and third quarter 2024 conference call. Joining us today are Edwin Miller, our CEO, and Holly Aglio, our Chief Financial Officer.
Good afternoon, everyone and welcome to <unk> business update and third quarter 2024 conference call.
Joining us today are Alan Miller, our CEO.
<unk>, our chief Financial Officer.
Edwin Miller: Before we get started, I'd like to take this opportunity to remind you that our remarks today will include forward-looking statements, including references to our financial and operational performance and actual results may differ materially from those contemplated by these forward-looking statements. risks and uncertainties that could cause these results to differ materially set forth in today's earnings press release and in our most recent annual and quarterly report filed with the SEC. Any forward-looking statements that we make on this call are based on assumptions as of today, and we undertake no obligation to update these statements for subsequent events.
Before we get started I'd like to take.
This opportunity to remind you that our remarks today will include forward looking statements.
Any references to our financial and operational performance and actual results may differ materially from those contemplated by these forward looking statements.
Risks and uncertainties that could cause these results to differ materially are set forth in todays earnings press release and in our most recent annual and quarterly reports filed with the SEC.
Speaker Change: Any forward looking statements that we make on this call are based on assumptions as of today.
We undertake no obligation to update these statements for subsequent events.
Edwin Miller: During this call, we will present both GAAP and non-GAAP financial measures. Reconciliation of GAAP to non-GAAP measures is included in today's earnings press release. The press release is available in the investor relations section of our website.
During this call we will present, both GAAP and non-GAAP financial measures reconciliation of GAAP to non-GAAP measures is included in today's earnings press release. The press release is available in the Investor Relations section of our website at this time I'd like to turn the call over to Ed.
Edwin Miller: At this time, I'd like to turn the call over to Edwin. Thank you, Trevor. Good afternoon, everyone, and thank you for joining us today. We appreciate your ongoing interest in Marchex. and the opportunity to update you on the progress we're making toward a strategic vision. During today's call, We'll walk through the highlights of the quarter. and give an initial forward look into 2025 and beyond. will also provide updates on the steps we're taking. to position Marchex as a market leader in prescriptive analytics.
Speaker Change: Yeah.
Ed: Thank you Trevor.
Ed: Good afternoon, everyone.
Ed: Thank you for joining us today.
Ed: We appreciate your ongoing interest in March sex.
And the opportunity to update you on the progress, we're making toward our strategic vision.
During today's call.
Ed: We'll walk through the highlights of the quarter.
Ed: And given initial forward look into 2025 and beyond.
Ed: We'll also provide updates on the steps we're taking.
The position Mark checks as a market leader and prescriptive analytics.
Edwin Miller: The purpose of our company... The reason why we do what we do. is to deliver mission-critical insights. to businesses to achieve operational excellence. through our AI driven product. We help our customers build better experiences. generate greater customer loyalty, and most importantly, drive more revenue. We are now doing this across multiple functions with our customers. as we position ourselves for future growth. We are utilizing the power of our vast, direct, first-party conversational data to expand our capabilities. The future will entail creating more AI signals. and AI-driven products to help our customers drive more revenue. and my one-on-one sessions with customers.
The purpose of our company.
Ed: The reason why we do what we do.
It's to deliver mission critical insights.
Ed: Businesses to achieve operational excellence.
Ed: Through our AI driven products.
We help our customers build better experiences.
Generate greater customer loyalty and most importantly drive more revenue.
We are now doing this across multiple functions with our customers.
As we position ourselves for future growth.
We are utilizing the power of our vast direct first party conversational data to expand our capabilities.
Ed: The future will entail creating more signals.
And AI driven products to help our customers drive more revenue.
And my one on one sessions with customers.
Edwin Miller: I consistently hear that they want more of what we can provide. This is an exciting time for March. We are moving at an increasing pace as we put all the pieces in place to accelerate our business. We help our customers transform from being reactive to proactive. by building a company that harnesses the power of vertical market direct first-party data sets. We are transforming raw information into high-value impact actions for Fortune 500 companies. looking ahead to 2025 and beyond. We are focused on growth opportunity. We are pursuing several key initiatives that will expand our market presence and accelerate momentum.
Ed: By consistently here.
They want more of what we can provide.
This is an exciting time for March sex.
We're moving at an increasing pace as we put all the pieces in place to accelerate our business.
We help our customers transform from being reactive to proactive.
By building a company that harnesses the power of vertical market direct first party datasets.
We are transforming raw information into high value impact actions for fortune 500 companies.
Looking ahead to 2025 and beyond.
We are focused on growth opportunities.
We are pursuing several key initiatives that will expand our market presence and accelerate momentum.
Ed: First.
Edwin Miller: I would like to talk about our product innovation. We are developing new AI-driven features and enhancements. to keep us at the forefront. of Prescriptive Analytics. This includes Sentiment, which we brought to market earlier this year, and the new AI vertical-specific solutions we recently announced. that we are launching in Q4 2024. These products deliver descriptive and prescriptive insights that enable businesses to improve return on ad spend. understand the preliminary elements driving change in customer behavior and increase their sales growth. The solutions are tailored for automotive OEMs and dealers. Home Service. Medical, Dental, and Automotive Services Purchases.
I would like to talk about our product innovation.
We are developing new AI, driven features and enhancements to keep us at the forefront.
Ed: <unk>.
Scripted analytics this includes sentiment which.
Ed: Which we brought to market earlier this year.
And the new AI vertical specific solutions, we recently announced.
That we are launching in Q4 2024.
These products deliver descriptive and prescriptive insights that enable businesses to improve return on ad spend.
I understand the preliminary Amit.
Ed: Elements driving change in customer behavior.
Ed: And increase their sales growth.
Solutions are tailored for automotive Oems and dealers.
Ed: Home services.
Ed: Medical.
Dental and automotive services protocols.
Edwin Miller: There is more to come. with more than a billion minutes of direct first-party conversations to fuel insight. we were able to provide an expanding menu of prescriptive data insights. Our rich omni-channel data on our vertical markets provides Marchex deep insights into the unique problems and opportunities for our clients. This is a key driver of why our customers are engaging in a cross-functional manner. As we move into 2025. We will look to expand ourselves. evolve our marketing presence, messaging, and capabilities. and grow our channel partner. We are expanding our go-to-market strategy and diving deeper into our new and existing verticals to open new opportunities.
There is more to come.
With more than a billion minutes of direct first party conversations to fuel insights.
We were able to provide an expanding menu a prescriptive data insights.
Our rich Omnichannel data with our vertical markets provide smart checks deep insights into the unique problems and opportunities for our clients.
This is a key driver of why our customers are engaging in a cross functional manner.
Ed: Second.
Ed: As we move into 2025, we.
We will look to expand our sales team.
Ed: Evolve, our marketing presence messaging and capabilities.
And grow our channel partnerships.
We are expanding our go to market strategy and diving deeper into our new and existing verticals to open new opportunities.
Edwin Miller: We understand the need to grow and strengthen our team to achieve our revenue growth targets.
We understand the need to grow and strengthen our team to achieve our revenue growth targets.
Edwin Miller: Last, Is there a single sign on integration? Simplifying access to our evolved solutions will enhance the customer experience and productivity. We are committed to investing for growth. We anticipate Marchex can form a substantially larger business. with new and existing customers. With new sales tools to leverage our API through the channel and expanded sales team. More innovation with AI signals on our SaaS platform. and go-to-market initiatives that we will launch this quarter and throughout 2025. We believe Marchex will be well positioned to accelerate the overall business and pivot to growth.
Ed: Last.
Speaker Change: Is there a single sign on integration.
Simplifying access to our evolve solutions will enhance the customer experience and productivity.
We are committed to investing for growth.
We anticipate <unk> can form a substantially larger business with new and existing customers.
With new sales tools to leverage our ATI through the channel.
Speaker Change: And expanded sales team.
Speaker Change: More innovation with AIG signals on our SaaS platform.
And go to market initiatives that we will launch this quarter and throughout 2025.
Speaker Change: We believe <unk> checks will be well positioned to accelerate the overall business and pivot to growth.
Edwin Miller: In the third quarter, we continued to make meaningful progress on OneStack, our customer-facing product initiative to bring a centralized platform into the cloud. This will play a crucial role in our ability to take advantage of our data assets. I mentioned one stack on our previous calls and the purpose behind it. which is to create a more scalable technical foundation. This progress has already started to free up resources. that will allow us to reinvest in initiatives. that are key to driving revenue growth in 2025 and beyond. We anticipate that the completion of the One Stack Initiative to unify our products, call stacks, and data pipelines.
Speaker Change: And the third quarter, we continued to make meaningful progress on one stack, our customer facing product initiatives to bring centralized platform into the cloud.
This will play a crucial role in our ability to take advantage of our data assets.
I mentioned, one stack on our previous calls and the purpose behind it.
Speaker Change: Which is to create a more scalable technical foundation.
Speaker Change: This progress has already started to free up resources.
That will allow us to reinvest in initiatives.
That are key to driving revenue growth in 2025 and beyond.
Speaker Change: We anticipate that the completion of the one stack initiative to unify our products cost stocks and data pipelines will.
Edwin Miller: will help accelerate product innovation. This will be a catalyst for revenue growth overall. and specifically an accelerant with our expanded vertical market growth strategy. Also, This movement will provide a streamlined go-to-market process. greater ease of onboarding of our customers and support and improve account management. It will also allow us to remove costs in the business that will support gross market improvement. and Free Cash Flow Over Time as a SaaS Cloud. Our work on infrastructure is about building for the future. With this in place. We believe we can move faster, invest smarter, and capitalize on the expanding opportunities to build a 100 million plus business.
We'll help accelerated product innovation.
This will be a catalyst for revenue growth overall.
Speaker Change: And specifically an accelerant with our expanded vertical vertical market growth strategy also.
This movement will provide a streamlined go to market process.
Greater ease of Onboarding of our customers and support.
An improved account management.
It will also allow us to remove costs in the business that will support gross margin improvements.
Speaker Change: And free cash flow over time as the SaaS platform.
Our work on infrastructure is about building for the future.
Speaker Change: With this in place.
Speaker Change: We believe we can move faster and.
Best smarter and capitalize on the expanding opportunities to build a 100 million plus business.
Edwin Miller: I'm excited about the momentum we are building this year to modernize our technical foundation. expand our pipeline. and Win New Relationships. As we scale some of these relationships and launch our go-to-market initiatives, we believe Marchex is in a strong position. to transition to a growth company next year.
I'm excited about the momentum we are building this year to modernize our technical foundation.
Expand our pipeline.
Speaker Change: And win new relationships.
As we scale some of these relationships and launch our go to market initiatives. We believe <unk> is in a strong position.
The transition to a growth company next year.
Holly Aglio: With that, I will hand the call to Holly. Thank you, Edwin. For the third quarter of 2024, revenue was $12.6 million versus $12.8 million for the same quarter last year, and up from second quarter 2024 revenue of $12.1 million. Revenue in the third quarter was up from the second quarter, in part due to slightly improved conversation volumes, and in part from the launch of some new customer wins so far this year. We are seeing traction in the auto, auto services, and home services vertical. similar to last quarter on a year over year basis. We saw continued headwinds from certain customer segments, like our small business reseller.
With that I will hand, the call to Holly.
Holly: Thank you Edwin.
For the third quarter of 2020 for revenue with $12 $6 million versus $12 $8 million for the same quarter last year.
Up from second quarter 2020 for revenue of $12 $1 million.
Holly: Revenue in the third quarter was up from the second quarter.
Holly: Part D to slightly improved conversation volumes and in part from the launch of some new customer wins, so far this year.
We are seeing traction in the auto and auto services and home services vertical.
Similar to last quarter on a year over year basis.
We saw continued headwinds from certain customer segments like our small business resellers.
Holly Aglio: though that seems slightly improved on a sequential basis. In the future, we anticipate the impact of small business reseller volume trends may be mitigated by our launch and sell-through of new products and features into our Fortune 500 customer base.
Speaker Change: That seems slightly improved on a sequential basis.
Speaker Change: In the future.
Chesapeake the impact of small business reseller volume trends may be mitigated by our launch and sell through of new products and features into our fortune 500 customer base.
Holly Aglio: Turning to operating expenses for the third quarter. excluding stock-based compensation, amortization of intangible assets, and acquisition and disposition related costs. Total operating costs for the third quarter of 2024 were $12.8 million compared to $13.2 million for the third quarter of 2023. Service costs were $4.2 million for the third quarter. Service costs as a percentage of revenue trended consistent with Q2 levels, which was a somewhat higher than anticipated result due to timing of certain expense items, including costs related to the execution of our infrastructure initiative. sales and marketing costs were approximately $3.2 million for the third quarter.
Turning to operating expenses for the third quarter.
Excluding stock based compensation amortization of intangible assets.
Speaker Change: On acquisition and disposition related costs.
Total operating costs for the third quarter of 2024 were $12 $8 million.
Compared to $13 $2 million for the third quarter of 2023.
Speaker Change: Service costs were $4 $2 million for the third quarter.
Service costs as a percentage of revenue trend is consistent with Q2 level, which was somewhat higher than anticipated result.
The timing of certain expense items.
Including costs related to the execution of our infrastructure initiatives.
Sales and marketing costs were approximately $3 $2 million for the third quarter.
Holly Aglio: This was up slightly from the third quarter of 2023, as we increased our investment in our go to market team. As we complete phases of our infrastructure initiative, we will be balancing profitability goals along with increasing our investment in growth initiatives. Product development costs were $3.1 million for the third quarter as we continue to invest in innovation and leveraging AI to expand our product suite.
Speaker Change: This was up slightly from the third quarter of 2023.
Speaker Change: We increased our investments in our go to market team.
As we complete phases of our infrastructure initiatives, we will be balancing profitability goals, along with increasing our investment in growth initiatives.
Speaker Change: Product development costs were $3 $1 million for the third quarter.
We continue to invest in innovation and leveraging AI to expand our product suite.
Holly Aglio: Moving to profitability measures. adjusted EBITDA was approximately $300,000 for the third quarter of 2024, which is largely consistent with adjusted EBITDA of approximately $400,000 for the third quarter of 2023, even with our strategic investments in key areas that position us for future growth. Gap net loss was $800,000 for the third quarter of 2024. for $0.02 per diluted share. This compares to a loss of $1.5 million, or $0.04 per diluted share, for the third quarter of 2023. Adjusted non-gap loss was one cent per share for the third quarter of 2024, compared to a loss of one cent per share for the third quarter of 2023.
Speaker Change: Moving to profitability measures.
Adjusted EBITDA was approximately $300000 for the third quarter of 2024.
Which is largely consistent with adjusted EBITDA of approximately $400000 for the third quarter of 2023, even with our strategic investments in key areas that position us for future growth.
GAAP net loss was $800000 for the third quarter of 2024.
Speaker Change: Our two cents per diluted share.
This compares to a loss of $1 $5 million or four cents per diluted share for the third quarter of 2023.
Speaker Change: Adjusted non-GAAP loss was one cent per share for the third quarter of 2024.
Speaker Change: Compared to a loss of one cents per share for the third quarter of 2023.
Holly Aglio: Additionally, we ended the third quarter with approximately $12.1 million in cash on hand.
Speaker Change: Additionally, we ended the third quarter with approximately $12 $1 million in cash on hand.
Holly Aglio: Now turning to our outlook for the fourth quarter of 2024. First, let's discuss revenue. We anticipate fourth quarter 2024 revenue will be in the range of $12 million due to expected seasonality of call volume. As a reminder, the fourth quarter typically represents lower sales volumes for many of our customers as call volumes decline during the holiday.
Now turning to our outlook for the fourth quarter of 2024.
Speaker Change: First let's discuss revenue.
We anticipate fourth quarter 2020 for revenue will be in the range of $12 million due to expected seasonality of call volume.
Speaker Change: As a reminder, the fourth quarter typically represents lower sales volumes for many of our customers as call volumes declined during the holidays.
Holly Aglio: for Adjusted EBITDA. In the fourth quarter, we anticipate adjusted EBITDA to be a loss in the range of $400,000 due to the overlap in timing of expenses related to the completion of our foundational One Stack initiative.
Speaker Change: For adjusted EBITDA.
In the fourth quarter, we anticipate adjusted EBITDA to be a loss in the range of $400000.
Due to the overlap in timing of expenses related to the completion of our foundational one stack initiatives.
Holly Aglio: for Gross Margin. Fourth quarter growth margin is anticipated to be slightly lower than Q3 2024, which, as previously mentioned, trended consistent with Q2 and was somewhat higher than anticipated.
For gross margin.
Fourth quarter gross margin is anticipated to be slightly lower than Q3 2024.
Speaker Change: Which as previously mentioned trended consistent with Q2 and was somewhat higher than anticipated.
Holly Aglio: due to timing of certain expense items. Turning to our preliminary outlook for 2025. Revenue for the first quarter of 2025 is anticipated to be higher than the first quarter of 2024 and sequentially higher than the fourth quarter of 2024. We anticipate 2025 will be a growth year in revenue relative to 2024, with the opportunity for accelerating sequential growth rates during 2025. We anticipate growth margins for 2025 will be higher than 2024, with the opportunity for improvement during 2025. We also anticipate that Q1 2025 adjusted EBITDA will be improved over Q4 2024. As we look initially into next year, we continue to grow our pipeline of opportunity.
Due to timing of certain expense items.
Speaker Change: Turning to our preliminary outlook for 2025.
Revenue for the first quarter of 2025 is anticipated to be higher than the first quarter of 2024 and sequentially higher than the fourth quarter of 2024.
Speaker Change: We anticipate 2025 will be a growth year in revenue relative to 2024.
The opportunity for accelerating sequential growth rates during 2025.
We anticipate gross margins for 2025 will be higher than 2024 with the opportunity for improvement during 2025.
Speaker Change: We also anticipate that Q1 2025, adjusted EBITDA will be improved over Q4 2024.
As we look initially into next year, we continue to grow our pipeline of opportunity.
Holly Aglio: We are expanding our product innovation efforts and go to market investments as we transition to the next phase of our infrastructure initiative. We anticipate these efforts, along with the onboarding of some of our recent new customer wins, can contribute to our anticipated revenue growth throughout 2025. This is something we also believe could continue to drive additional leverage in our growth margin as the cost savings from our One Stack initiative favorably flow through in the first quarter of 2025. And we see traction in new AI products that we anticipate releasing throughout the year.
We are expanding our product innovation efforts and go to market investments.
We transitioned to the next phase of our infrastructure initiatives.
We anticipate these efforts along with the Onboarding of some of our recent new customer wins.
And contribute to our anticipated revenue growth throughout 2025.
Speaker Change: This is something we also believe could continue to drive additional leverage in our gross margin.
Speaker Change: The cost savings from our one stack initiatives favorably flow through in the first quarter of 2025, and we see traction and new AI products that we anticipate releasing throughout the year.
Edwin Miller: With that, I'll hand the call back to Edwin. Thank you, Holly. In closing, we are excited about the road ahead. Marchex is building a market-leading prescriptive analytic company and our progress this quarter demonstrates that we are well on our way. We remain confident in our strategy and excited about the opportunities in front of us.
With that I'll hand, the call back to Edwin.
Speaker Change: <unk>.
Edwin: Thank you Holly.
In closing we are excited about the road ahead.
Mark <unk> is building a market, leading prescriptive analytics company and our progress this quarter demonstrates that we are well on our way.
We remain confident in our strategy and excited about the opportunities in front of us.
Edwin Miller: and committed to delivering value for our customers, partners, employees, and shareholders. Thank you to all of the talent at Marchex. It is the team members in each function that make the difference.
Committed to delivering value for our customers partners employees and shareholders.
Thank you to all of the talented <unk> it.
It is the team members in each function that make the difference.
Edwin Miller: At this time, I'll pass the call back to the operator and take any questions.
At this time I'll pass the call back to the operator and take any questions.
Operator: We will now begin the Q&A session. As a reminder, if you would like to ask a question, please press star, followed by 1. If you would like to remove your question, press star followed by two. And if you are using a speakerphone, please pick up your handset before asking your question.
We will now begin the Q&A session.
As a reminder, if you would like to ask a question. Please press star followed by one.
If you would like to remove your question press star followed by <unk>.
If you are using a speakerphone please pick up your handset before asking your question.
Darren Aftahi: Our first question today comes from Darren Aftahi with Roth Capital Partners. Your line is now open.
Our first question today comes from Darren <unk> with Roth Capital Partners. Your line is now open.
Darren Aftahi: Darren, thanks for taking my question.
Darren Thanks for taking my questions.
Darren Aftahi: First, with some of the product rollouts that are happening in 4Q across specific verticals, can you sort of help clarify the timeline on that? When does that start? When do you think it would be complete? Or is it sort of an ongoing thing through 2025 and to sort of see the impact of some of those products resulting in increased sales?
First with some of the product rollouts that are happening in <unk> across specific verticals.
Darren: Could you sort of help clarify the timeline on that.
When does that start when do you think it would be complete or is it sort of an ongoing thing through 2025 into sort of see the impact of some of those.
Products, resulting in increased sales.
Edwin Miller: Thank you for the question. One, we've already rolled out a couple this year, the ones in the fourth quarter will be rolled out. We've piloted at clients already, so we've tested it. But we'll continue to innovate. and productize any AI-driven capabilities and solutions for our clients. So, we won't stop doing that.
Speaker Change: Thank you for the question.
One one we've already rolled out a couple this year the ones in the fourth quarter will be rolled out with.
Speaker Change: We piloted at clients already so we've tested it.
Speaker Change: But we'll continue to innovate.
And product ties any AI driven.
Speaker Change: Capabilities and solutions for our clients.
So we won't stop doing that we're freeing up capacity by going to one stack.
Edwin Miller: We are freeing up capacity by going to one stack. And being in one stack with one API, one data pipe will allow us to invest. to two things, the go to market motion, the sell these signals, spend time with our clients, again, ease of onboarding for our clients. So being able to have our account management group, customer success group. easily demonstrate in having, in the future, we anticipate a click-to-buy capability off the web and then leveraging the channel. But we're not going to stop building them, and we are already out in the market talking about that.
And being in one stack with one API one data pipe.
Will allow us to invest more into two things the go to market motion to sell these signals.
Spend time with their clients again ease of Onboarding.
For our clients, so being able to have our account management group customer success group.
Seasonally demonstrate and having in the future.
Speaker Change: We anticipate a click to buy capability off the web.
And then being <unk>.
Leveraging the channel, but we're not going to stop building them and we are already out in the market talking about them.
Edwin Miller: with current clients.
Speaker Change: With current clients.
Edwin Miller: And if maybe you could elaborate on some of your AI capabilities and what you have now and what you're sort of working on, how much of that sort of in the pipeline already or that's part of the investments with the product development and sales that you've got to go out and sort of create these products. We're already down the path. We've got a MIME plus team. It reports to Todd Wilson, which works for Troy Hartless, our CRO and head of product. We're down the path, and we're building every day.
Speaker Change: Got it.
Speaker Change: If maybe you could elaborate on some of your AI capabilities and while you have now.
What are you sort of working on.
How much of that.
Is sort of in the pipeline already or that's part of the investments with new product development sales that you've got to go out and sort of create these these products.
Speaker Change: We're already down the path, we've got in mind plus team.
Reports that Todd Wilson, which works for.
Tori heart with our CRO and head of product and so we're down the path and were building every day I will go back.
Edwin Miller: I will go back, I think. March 1 is a big date for us for delivery of items. June 1 is a big date. And going back, the sequence of progress, we believe, has the potential to create an absolute virtuous cycle for the company. And we're We've got a good strategic plan.
Speaker Change: I think.
March was a big a big date for us for delivery of items June one's a big date.
Speaker Change: And going back.
The sequence of progress, we believe has the potential to creative.
Speaker Change: In absolute virtuous cycle.
The company.
And where.
Speaker Change: We've got a good strategic plan, we are together with the ERP in the coming months.
Edwin Miller: We are together with the ELT in the coming months to plan 2025 further. And I feel good about the product team. I feel good about the product marketing team. I feel good about the Inge team. So more to come.
Speaker Change: The planned 2025 further.
And I feel good about the product team.
Good about the product marketing team.
So good about the <unk> team.
Speaker Change: So more to come.
Darren Aftahi: Great. Thank you.
Speaker Change: Great. Thank you.
Mike Latimore: Our next question today comes from Mike Latimore with Northland Capital. Markets. Your line is now open.
Our next question today comes from Mike Latimore with Northland capital.
Your line is now open.
Mike Latimore: Great, thanks.
Mike Latimore: Great. Thanks, good evening.
Mike Latimore: Good evening. You mentioned a few new customer wins that you've already had this year. Can you just elaborate on you know, type of customer, how big they are, use case?
You've mentioned a few new customer wins that you have.
Speaker Change: <unk> already has this year can you just elaborate on you now.
Type of customer how big they are use case.
Edwin Miller: Yeah, Mike, good to hear your voice. I hope you're well. And thanks for the question. We have what I call an enterprise group and a commercial group. We're seeing wins in both of those different approaches to market. And again, going in 25, we'll have a channel approach as well. Sizes vary. It depends on if it's a commercial group and the rooftops and the size of those and the size of the deal with the OEM. And again, it's against all the verticals I mentioned. So we're having success.
Yes, Mike good to hear your voice I hope Youre well.
And thanks for the question.
We have.
Speaker Change: What I would call Enterprise group and our commercial group, we're seeing wins in both of those different.
Approaches to market.
And again going into 'twenty, five we'll have channel approach as well.
Sizes vary it depends on if it's a if it's a commercial group.
And the rooftops and the size of those.
Speaker Change: And the size of the deal with the OEM and again, it's against all of the verticals that I mentioned so we're.
Speaker Change: We're having success.
Edwin Miller: I'm really happy of what True Heart was able to do this year, either in product and in sales. And the Inge team has done a great job of of getting us moved to the one stack in progress.
I'm really happy of what for harvest has been able to do this year.
Either in product and in sales and the <unk> team has done a great job of.
Of getting us moved to one stack.
Speaker Change: And progress, but I will say March one in June one of next year, a big dates for us.
Edwin Miller: But I will say March 1 and June 1 of next year are big dates for us to. to form. scale, ease of use, single sign-on, et cetera. And I just see speed and velocity and the motion.
Speaker Change: To form.
Scale ease of use single sign on et cetera, and.
I, just see speed and velocity and the motion.
Edwin Miller: And then on one stack, can you just clarify, when do you expect that to be kind of fully complete? We are now in the cloud, which is fun to see, with scale and efficiency. We will, here in the near term, have no legacy co-locations at all, which is fun to see, and the team's excited about it. We'll have one API, but we won't stop innovating on the AI signals. But we're going to get more efficient each month we breathe, which is fun. And again, we're grabbing billions of minutes of data. We're grabbing data while we're sitting here.
Speaker Change: And then on one stack can you just clarify.
Speaker Change: When do you expect that to be kind of fully complete.
Speaker Change: Yeah.
We are now in the cloud which is.
Speaker Change: It's fun to see with scale and efficiency.
We will in the here in the near term have no legacy.
Co locations at all which is fun to see and the team is excited about it.
We will have <unk> API, but we won't stop innovating on the AI signals.
But we're going to get more efficient each each month, we breathe, which is fine and again, we're grabbing billions of minutes of data.
We're grabbing data, while we're sitting here.
Edwin Miller: And our movement to a SaaS platform and being able to productize. prescriptive analytics beyond all the other buckets of analytics. We're seeing a Good anticipation from our clients. So, I feel good about our progress.
Speaker Change: And our movement to a SaaS platform and.
And being able to product ties.
Speaker Change: Prescriptive analytics beyond all the other buckets of analytics.
We're seeing a.
Speaker Change: Good.
Speaker Change: Anticipation from our clients.
So I feel good about our progress.
Speaker Change: Yes.
Edwin Miller: And the March 1 and June 1 dates, does that relate to one stack? Does that relate to new applications you're going to? It relates mostly to the applications and signals on it, but we'll continue to create scale and manage containers and manage vertical market compliance. So we're making progress across the board. But again, I won't stop innovating. We're in the right place at the right time. We're in a great market. I'm excited about the market. We've got a great team built. I can't say enough about the talent at the company.
As of March one and June one day does that relate to one stack as it relates to new applications, you're going to release.
It relates mostly to the applications and signals on it but we will continue to create scale and damaged containers.
And manage vertical market compliance.
Speaker Change: We're making progress across the board, but again I wont stop innovating.
Speaker Change: We're in we're in the right place at the right time, we're in a great market I'm excited about the market.
Speaker Change: We've got a great team built.
I can't say enough about the talent at the company.
Speaker Change: So.
Edwin Miller: My chairman has leaned in hard, which is fun to work with. So, we're in a good spot.
My Chairman has leaned in hard which is fun to work with.
So we're in a good spot.
Mike Latimore: Great. And then just on the sales and marketing investment.
Speaker Change: Great and then just on the sales and marketing investment.
Edwin Miller: Do you need to have these new products out or additional progress on one stack before you really make a push or is this kind of just, you know, you're already pushing hard now and we'll just kind of build from there? You know, I when I show up at a company, I always say you got to sell what's in the little red wagon. And so we're able to sell what we have it we there were great acquisitions made. Bringing together as a platform play is fun. And so we'll be the I think, sell it at a faster speed.
Speaker Change: Do you need to have these new products out or additional progress on our own stack before you really make a push or is this kind of just two.
Speaker Change: You already heard now and we'll just kind of build from there.
Speaker Change: Yeah.
Speaker Change: Yes.
When I show up at a company I always say you got to sell within little Red wagon.
And so we're able to sell what we have.
Speaker Change: They were great acquisitions made.
Bringing together as a platform play.
Speaker Change: It's fun.
And so we will be but I think at a faster speed.
Edwin Miller: We will invest from the dollars we're saving on moving to one stack with scale and efficiency.
We will invest from.
From the dollars were saving on moving to one stack with scale and efficiency.
Mike Latimore: And I think that The real breakout moment for us could be... channel with some major partners and the API. while helping Troy with the go-to-market motion and staffing. Got it, okay.
Speaker Change: And.
Speaker Change: I think that.
The real breakout moment for us could be chat.
Speaker Change: Channel without with some major partners and the API.
While helping Troy with the go to market motion in staffing.
Got it okay.
Edwin Miller: I guess our last one, just on channel, can you talk about the type of channel partners you're... kind of looking at engaging with Um I mean, you can think about any major CRM company. you can think about. anyone down in a dealership. that's got POS or DMS. So it's a large ecosystem given our ability with data and our ability to share that data and consume that data.
Greg It's very last one just on channel can you talk about the <unk>.
Channel partners here.
Looking at engagement.
Speaker Change:
Speaker Change: I mean, you can think about any major CRM company.
You can think about.
Speaker Change:
Speaker Change: Anyone down in a dealership.
That Scott Pos or DNS.
It's a large ecosystem.
Speaker Change: <unk> system, given our ability.
Speaker Change: With data and our ability to share that data and consume that data. So I didn't talk a lot about that on the on the call, but we have something I've talked about in the past called MTS, where we can actually ingest data from our partners for our clients and compare that data, which is one of the things that I mentioned cross functional engagement.
Edwin Miller: So I didn't talk a lot about that on the call. But we have something I've talked about in the past called NPS, where we can actually ingest data from our partners or our clients and compare that data, which is one of the things. And I mentioned cross-functional engagement. So we have multiple functions showing up at meetings now. When I began, we were fell into one function. So we're making great progress. And again, I'm the leadership of the team. It's fun to watch.
Speaker Change: <unk>.
Speaker Change: We have.
Multiple functions showing up at meetings now.
When I began we were selling the one function. So we're making great progress and again under the leadership of the team.
It's fun to watch.
Mike Latimore: Yep. Awesome. Great.
Awesome, great. Thanks very much.
Mike Latimore: Thanks very much. Oh, you're welcome.
Mike: Youre welcome Thanks, Mike.
Mike Latimore: Thanks, Mike.
Speaker Change: Okay.
Operator: Thank you all for your questions. There are currently no questions in queue, so as a reminder, it is star 1 to ask a question.
Thank you all for your questions.
There are currently no questions in queue. So as a reminder, it is star one to ask a question.
Operator: It appears we have no further questions, so I'll pass the conference back to management for any closing or further remarks. Okay, thank you everyone for dialing in. We appreciate your interest in Marchex. and continued support.
It appears we have no further questions. So I'll pass the conference back to management for any closing or further remarks.
Okay. Thank you everyone for dialing in and we appreciate your interest in <unk>.
And continued support.
Edwin Miller: We're working hard for the shareholders, so I look forward to the next conversations.
Speaker Change: We're working hard for the shareholders. So.
Look forward to the next conversations.
Operator: Thank you.
Operator: That will conclude today's conference call. Thank you all for your participation.
That will conclude today's conference call. Thank you all for your participation you may now disconnect your line.
Operator: You may now disconnect your line.