Q2 2026 MARCHEX INC Earnings Call
Operator: Hello, everyone. Thank you for joining us, and welcome to Marchex Second Quarter 2026 Earnings Conference Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference call over to Francis Feeney, Chief Operating Officer. Francis, please go ahead.
Operator: Hello, everyone. Thank you for joining us, and welcome to Marchex Q2 2026 Earnings Conference Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference call over to Francis Feeney, Chief Operating Officer. Francis, please go ahead.
Speaker #1: Hello, everyone. Thank you for joining us, and welcome to March X's second quarter, 2026 earnings conference call. After today's prepared remarks, we will host a question-and-answer session.
Speaker #1: If you would like to ask a question, please press *1 to raise your hand. To withdraw your question, press *1 again. I will now hand the conference call over to Francis Feeney, Chief Operating Officer.
Speaker #1: Francis, please go ahead.
Speaker #2: Good afternoon, everyone, and welcome to March X's business update and second quarter 2026 conference call. Joining us today are Russ Horowitz, our chairman of the board; and Brian Nagle, our chief financial officer.
Francis Feeney: Good afternoon, everyone, and welcome to Marchex's Business Update and Second Quarter 2026 Conference Call. Joining us today are Russ Horowitz, our Chairman of the Board, and Brian Nagle, our Chief Financial Officer. Before we get started, I would 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 are set forth in today's earnings press release and in our most recent annual or 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. During this call, we will present both GAAP and non-GAAP financial measures.
Francis Feeney: Good afternoon, everyone, and welcome to Marchex's Business Update and Q2 2026 Conference Call. Joining us today are Russ Horowitz, our Chairman of the Board, and Brian Nagle, our Chief Financial Officer. Before we get started, I would 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 are set forth in today's earnings press release and in our most recent annual or quarterly report filed with the SEC.
Speaker #2: Before we get started, I would 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.
Speaker #2: Risks and uncertainties that could cause these results to differ materially are set forth in today's earnings press release, and in our most recent annual or quarterly report filed with the SEC.
Speaker #2: 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.
Francis Feeney: 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. During this call, we will present both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in today's earnings press release. The earnings press release is available in the investor relations section of our website. At this time, I want to turn the call over to Russ.
Speaker #2: During this call, we will present both gap and non-gap financial measures. A reconciliation of gap to non-gap measures is included in today's earnings press release.
Francis Feeney: A reconciliation of GAAP to non-GAAP measures is included in today's earnings press release. The earnings press release is available in the investor relations section of our website. At this time, I want to turn the call over to Russ.
Speaker #2: The earnings press release is available in the Investor Relations section of our website. At this time, I want to turn the call over to Russ.
Speaker #3: Thank you, Frank. And thank you to everyone for joining us today. July 1st's completion of Marchex's acquisition of Arcania marks an important step in our strategy to expand our AI-powered conversational intelligence and analytics solutions beyond insights and into actions and outcomes.
Russ Horowitz: Thank you, Frank, and thank you to everyone for joining us today. The 1 July completion of Marchex's acquisition of Arkanea marks an important step in our strategy to expand our AI-powered conversational intelligence and analytics solutions beyond insights and into actions and outcomes. By combining Marchex's conversational intelligence and analytics capabilities with Arkanea's performance-based customer qualification and acquisition technology, we are creating a highly differentiated, more comprehensive AI-powered solution that not only helps businesses better understand customer interactions, but also turns those interactions into measurable outcomes with demonstrable value impact. While we operate in a rapidly evolving and dynamic industry with uncertainties and various risks, we believe that the combined company can achieve greater revenue scaling growth, higher margins, expanded market reach, and enhanced strategic flexibility.
Russell Horowitz: Thank you, Frank, and thank you to everyone for joining us today. The 1 July completion of Marchex's acquisition of Archenia marks an important step in our strategy to expand our AI-powered conversational intelligence and analytics solutions beyond insights and into actions and outcomes. By combining Marchex's conversational intelligence and analytics capabilities with Archenia's performance-based customer qualification and acquisition technology, we are creating a highly differentiated, more comprehensive AI-powered solution that not only helps businesses better understand customer interactions, but also turns those interactions into measurable outcomes with demonstrable value impact. While we operate in a rapidly evolving and dynamic industry with uncertainties and various risks, we believe that the combined company can achieve greater revenue scaling growth, higher margins, expanded market reach, and enhanced strategic flexibility.
Speaker #3: By combining Marchex's conversational intelligence and analytics capabilities with Arcania's performance-based customer qualification and acquisition technology, we are creating a highly differentiated, more comprehensive, AI-powered solution that not only helps businesses better understand customer interactions, but also turns those interactions into measurable outcomes with demonstrable value impact.
Speaker #3: While we operate in a rapidly evolving and dynamic industry with uncertainties in various risks, we believe that the combined company can achieve greater revenue scale and growth, higher margins, expanded market reach, and enhanced strategic flexibility.
Speaker #3: Further, in light of our emerging sales growth levers and additional cost efficiencies, we will now be looking to make selective investments in incremental sales and development resources to help our 2027 growth opportunities.
Russ Horowitz: Further, in light of our emerging sales growth levers and additional cost efficiencies, we will now be looking to make selective investments in incremental sales and development resources to help our 2027 growth opportunities. As we discussed last quarter, if you zoom out and consider what our customers most fundamentally rely on, it's knowing how to leverage AI-driven strategic solutions to more efficiently drive growth-oriented customer acquisition and optimization. We believe that we are seeing continuing signs of validation that there is significant opportunity for us to rapidly expand into highly measurable AI-powered bundled solutions which provide the strategic insights our customers need, the automated actions those insights inform, and the revenue-generating outcomes those actions achieve. We believe that there are significant untapped opportunities within our existing customer base and within each of our current verticals.
Russell Horowitz: Further, in light of our emerging sales growth levers and additional cost efficiencies, we will now be looking to make selective investments in incremental sales and development resources to help our 2027 growth opportunities. As we discussed last quarter, if you zoom out and consider what our customers most fundamentally rely on, it's knowing how to leverage AI-driven strategic solutions to more efficiently drive growth-oriented customer acquisition and optimization. We believe that we are seeing continuing signs of validation that there is significant opportunity for us to rapidly expand into highly measurable AI-powered bundled solutions which provide the strategic insights our customers need, the automated actions those insights inform, and the revenue-generating outcomes those actions achieve. We believe that there are significant untapped opportunities within our existing customer base and within each of our current verticals.
Speaker #3: As we discussed last quarter, if you zoom out and consider what our customers most fundamentally rely on, it's knowing how to leverage AI-driven strategic solutions to more efficiently drive growth-oriented customer acquisition and optimization.
Speaker #3: We believe that we are seeing continuing signs of validation that there is significant opportunity for us to rapidly expand into highly measurable AI-powered bundled solutions which provide the strategic insights our customers need, the automated actions those insights inform, and the revenue-generating outcomes those actions achieve.
Speaker #3: We believe that there are significant untapped opportunities within our existing customer base and within each of our current verticals. We believe selling bundled solutions across the entire customer value chain can accelerate our business and make us more valuable within our vertical markets as AI opens new product possibilities that can help businesses grow meaningfully while driving efficiencies.
Russ Horowitz: We believe selling bundled solutions across the entire customer value chain can accelerate our business and make us more valuable within our vertical markets as AI opens new product possibilities that can help businesses grow meaningfully while driving efficiencies. We have been jointly developing and selling the initial products that reflect the combined capabilities of the two companies. Product examples of this collaboration, which leverage Marchex's data and AI signals and Arkanea's AI tool set and user interface are, first, AI-verified outcomes, which drive increased revenue on a pay-per-event basis. Second, conversational AI agents, which increase customer bookings and appointment rates. We believe that our ability to sell these and other combined solutions to our installed customer base is our most immediate opportunity that will be a meaningful sales catalyst in 2026 and beyond.
Russell Horowitz: We believe selling bundled solutions across the entire customer value chain can accelerate our business and make us more valuable within our vertical markets as AI opens new product possibilities that can help businesses grow meaningfully while driving efficiencies. We have been jointly developing and selling the initial products that reflect the combined capabilities of the two companies. Product examples of this collaboration, which leverage Marchex's data and AI signals and Arkanea's AI tool set and user interface are, first, AI-verified outcomes, which drive increased revenue on a pay-per-event basis. Second, conversational AI agents, which increase customer bookings and appointment rates. We believe that our ability to sell these and other combined solutions to our installed customer base is our most immediate opportunity that will be a meaningful sales catalyst in 2026 and beyond.
Speaker #3: We have been jointly developing and selling initial products that reflect the combined capabilities of the two companies. Product examples of this collaboration, which leveraged Marchex's data and AI signals, and Arcania's AI toolset to user interface, are: first, AI-verified outcomes, which drive increased revenue on a pay-per-event basis; and second, conversational AI agents, which increase customer bookings and appointment rates.
Speaker #3: We believe that our ability to sell these and other combined solutions for our installed customer base is our most immediate opportunity, and will be a meaningful sales catalyst in 2026 and beyond.
Speaker #3: As discussed last quarter, our top 100 customers represent approximately 90% of our revenue, and this customer base has been the initial focus for presenting the new products.
Russ Horowitz: As discussed last quarter, our top 100 customers represent approximately 90% of our revenue, and this customer base has been the initial focus for presenting the new products. At that time, we had made presentations to nearly one-third of these customers, approximately half of whom have already purchased one or more of these products on a recurring or paid pilot basis. Of those remaining, we stated that we believe that over time, the majority are also likely to purchase one or more of these products on a recurring or paid pilot basis. Since this time, we have continued to see further progress and validation with these efforts. To this point, let me provide three examples of successful sales of new combined products to existing customers. First is an existing home services client which generates approximately $500,000 in annualized analytics revenue for Marchex.
Russell Horowitz: As discussed last quarter, our top 100 customers represent approximately 90% of our revenue, and this customer base has been the initial focus for presenting the new products. At that time, we had made presentations to nearly one-third of these customers, approximately half of whom have already purchased one or more of these products on a recurring or paid pilot basis. Of those remaining, we stated that we believe that over time, the majority are also likely to purchase one or more of these products on a recurring or paid pilot basis. Since this time, we have continued to see further progress and validation with these efforts. To this point, let me provide three examples of successful sales of new combined products to existing customers. First is an existing home services client which generates approximately $500,000 in annualized analytics revenue for Marchex.
Speaker #3: At that time, we had made presentations to nearly one-third of these customers, approximately half of whom have already purchased one or more of these products on a recurring or paid pilot basis.
Speaker #3: Of those remaining, we stated that we believe that, over time, the majority are also likely to purchase one or more of these products on a recurring or paid pilot basis.
Speaker #3: Since this time, we have continued to see further progress and validation with these efforts. To this point, let me provide three examples of successful sales of new combined products to existing customers.
Speaker #3: First is an existing home services client which generates approximately $500,000 in annualized analytics revenue for March X. This customer subsequently adopted our AI-verified outcomes offering, increasing its total annualized revenue contribution to more than $1 million.
Russ Horowitz: This customer subsequently adopted our AI-verified outcomes offering, increasing its total annualized revenue contribution to more than $1 million. This example illustrates the potential to take an established analytics relationship and expand it by connecting conversational insights directly to measurable customer outcomes. Second, an auto services customer generating more than $300,000 in annualized analytics revenue began a paid pilot designed to improve sales agent performance across 40 retail locations. That program has since expanded to more than 60 locations. This customer operates thousands of locations. If the program achieves its performance objectives and expands more broadly, we believe the relationship could represent at least $1 million in annualized revenue. Third, an advertising and media customer generating approximately $400,000 in annualized analytics revenue launched a paid pilot using a Marchex conversational AI agent to improve call handling.
Russell Horowitz: This customer subsequently adopted our AI-verified outcomes offering, increasing its total annualized revenue contribution to more than $1 million. This example illustrates the potential to take an established analytics relationship and expand it by connecting conversational insights directly to measurable customer outcomes. Second, an auto services customer generating more than $300,000 in annualized analytics revenue began a paid pilot designed to improve sales agent performance across 40 retail locations. That program has since expanded to more than 60 locations. This customer operates thousands of locations. If the program achieves its performance objectives and expands more broadly, we believe the relationship could represent at least $1 million in annualized revenue. Third, an advertising and media customer generating approximately $400,000 in annualized analytics revenue launched a paid pilot using a Marchex conversational AI agent to improve call handling.
Speaker #3: This example illustrates the potential to take an established analytics relationship and expand it by connecting conversational insights directly to measurable customer outcomes. Second, an auto services customer generating more than $300,000 in annualized analytics revenue began a paid pilot designed to improve sales agent performance across 40 retail locations.
Speaker #3: That program has since expanded to more than 60 locations. This customer operates thousands of locations. If the program achieves its performance objectives and expands more broadly, we believe the relationship could represent at least $1 million in annualized revenue.
Speaker #3: And third, an advertising and media customer, generating approximately $400,000 in annualized analytics revenue, launched a paid pilot using a Marchex conversational AI agent to improve call handling.
Speaker #3: If the pilot converts to a broader deployment, we believe it could contribute incremental revenue during 2026 and increase annualized revenue from this customer by 50% or more in 2027.
Russ Horowitz: If the pilot converts to a broader deployment, we believe it could contribute incremental revenue during 2026 and increase annualized revenue from this customer by 50% or more in 2027. These examples demonstrate how our model can progress from an existing analytics relationship to a much more significant, strategically bundled, and competitively differentiated solution. I will now turn the call over to Brian to discuss our Q2 2026 financial results and Q3 outlook.
Russell Horowitz: If the pilot converts to a broader deployment, we believe it could contribute incremental revenue during 2026 and increase annualized revenue from this customer by 50% or more in 2027. These examples demonstrate how our model can progress from an existing analytics relationship to a much more significant, strategically bundled, and competitively differentiated solution. I will now turn the call over to Brian to discuss our Q2 2026 financial results and Q3 outlook.
Speaker #3: These examples demonstrate how our model can progress from an existing analytics relationship to a much more significant, strategically bundled, and competitively differentiated solution. I will now turn the call over to Brian to discuss our second quarter 2026 financial results and third quarter outlook.
Speaker #2: Thank you, Ross. Revenue for the second quarter of 2026 was $11 million, compared to $10.6 million for the first quarter of 2026. We saw a favorable impact from new sales, and existing customer upsells benefited the company in the quarter.
Brian Nagle: Thank you, Ross. Revenue for Q2 2026 was $11 million, compared to $10.6 million for Q1 2026. We saw a favorable impact of new sales and existing customer upsells benefit the company in the quarter. For operating expenditures, we saw efficiencies throughout the business as we benefited from the continued realignment of the organization and other expense efficiency initiatives that have taken place over the last several months. The benefits were offset by acquisition-related costs incurred during the quarter as we completed the acquisition of Arkanea. We anticipate that our overall margins can continue to improve over time as we are carrying an overall lower cost structure going forward, which could enable meaningful future operating and financial leverage for the business as new products and features sell through.
Brian Nagle: Thank you, Ross. Revenue for Q2 2026 was $11 million, compared to $10.6 million for Q1 2026. We saw a favorable impact of new sales and existing customer upsells benefit the company in the quarter. For operating expenditures, we saw efficiencies throughout the business as we benefited from the continued realignment of the organization and other expense efficiency initiatives that have taken place over the last several months. The benefits were offset by acquisition-related costs incurred during the quarter as we completed the acquisition of Arkanea. We anticipate that our overall margins can continue to improve over time as we are carrying an overall lower cost structure going forward, which could enable meaningful future operating and financial leverage for the business as new products and features sell through.
Speaker #2: For operating expenditures, we saw efficiencies throughout the business as we benefited from the continued realignment of the organization and other expense efficiency initiatives that have taken place over the last several months.
Speaker #2: The benefits were offset by acquisition-related costs incurred during the quarter, as we completed the acquisition of Arcania. We anticipate that our overall margins can continue to improve over time, as we are carrying an overall lower cost structure going forward.
Speaker #2: This could enable meaningful future operating and financial leverage for the business as new products and features sell through. We ended the second quarter with $8.2 million in cash, compared with $9 million at the end of the first quarter.
Brian Nagle: We ended Q2 with $8.2 million in cash, compared with $9 million at the end of Q1. The decrease primarily reflected cash payments for transaction expenses, organizational realignment activities, and other efficiency initiatives. Now turning to our outlook. Because the Arkanea transaction closed on 1 July, our Q2 results do not include Arkanea. Our Q3 outlook includes a full quarter of Arkanea's expected financial results. For Q3 2026, Marchex currently expects revenue of $16 million to $16.5 million, an Adjusted EBITDA of $2.3 million to $2.5 million. The expected sequential increase in revenue primarily reflects a full quarter of Arkanea's operations, together with continued growth in Marchex's existing business based on our evolved strategic approach with delivering bundled solutions, including insights, actions, and outcomes.
Brian Nagle: We ended Q2 with $8.2 million in cash, compared with $9 million at the end of Q1. The decrease primarily reflected cash payments for transaction expenses, organizational realignment activities, and other efficiency initiatives. Now turning to our outlook. Because the Arkanea transaction closed on 1 July, our Q2 results do not include Arkanea. Our Q3 outlook includes a full quarter of Arkanea's expected financial results. For Q3 2026, Marchex currently expects revenue of $16 million to $16.5 million, an Adjusted EBITDA of $2.3 million to $2.5 million.
Speaker #2: The decrease primarily reflected cash payments for transaction expenses, organizational realignment activities, and other efficiency initiatives. Now turning to our outlook. Because the Arcania transaction closed on July 1, our second quarter results do not include Arcania.
Speaker #2: Our third quarter outlook includes a full quarter of Arcania's expected financial results. For the third quarter of 2026, Marchex currently expects revenue of $16.0 million to $16.5 million and adjusted EBITDA of $2.3 million to $2.5 million.
Speaker #2: The expected sequential increase in revenue primarily reflects a full quarter of Arcania's operations together with continued growth in March X's existing business based on our evolved strategic approach with delivering bundled solutions including insights, actions, and outcomes.
Brian Nagle: The expected sequential increase in revenue primarily reflects a full quarter of Arkanea's operations, together with continued growth in Marchex's existing business based on our evolved strategic approach with delivering bundled solutions, including insights, actions, and outcomes. We plan to provide our Q4 2026 financial outlook and initial business outlook for 2027 when we report Q3 results, which is currently anticipated in early November. With that, I will hand the call to Frank.
Speaker #2: We plan to provide our fourth quarter 2026 financial outlook and initial business outlook for 2027 when we report third quarter results which is currently anticipated in early November.
Brian Nagle: We plan to provide our Q4 2026 financial outlook and initial business outlook for 2027 when we report Q3 results, which is currently anticipated in early November. With that, I will hand the call to Frank.
Speaker #2: With that, I will hand the call to Frank.
Speaker #3: Thank you, Brian. March X's acquisition of Arcania creates a vertically focused AI-driven customer acquisition and outcome optimization platform. March X brings a deep foundation of first-party data derived from years of analyzing customer conversations for many industry-leading companies, with Arcania adding AI-powered lead qualification, conversational IVR, performance marketing infrastructure, and expertise in activating call intelligence at scale.
Francis Feeney: Thank you, Brian. Marchex's acquisition of Arkanea creates a vertically focused, AI-driven customer acquisition and outcome optimization platform. Marchex brings a deep foundation of first-party data derived from years of analyzing customer conversations for many industry-leading companies. Arkanea is adding AI-powered lead qualification, conversational IVR, performance marketing infrastructure, and expertise in activating call intelligence at scale. Together, the companies provide a comprehensive platform that connects customer insights, automated actions, and measurable business outcomes. Based on the increased opportunities of the combined company, moving forward, we are focused on scaling our financial performance to potentially achieve rule of 30 to rule of 40 trajectory. For reference, the rule of 30 to 40 metric represents the combination of annual revenue growth rates plus Adjusted EBITDA margins.
Francis Feeney: Thank you, Brian. Marchex's acquisition of Arkanea creates a vertically focused, AI-driven customer acquisition and outcome optimization platform. Marchex brings a deep foundation of first-party data derived from years of analyzing customer conversations for many industry-leading companies. Arkanea is adding AI-powered lead qualification, conversational IVR, performance marketing infrastructure, and expertise in activating call intelligence at scale. Together, the companies provide a comprehensive platform that connects customer insights, automated actions, and measurable business outcomes. Based on the increased opportunities of the combined company, moving forward, we are focused on scaling our financial performance to potentially achieve rule of 30 to rule of 40 trajectory. For reference, the rule of 30 to 40 metric represents the combination of annual revenue growth rates plus Adjusted EBITDA margins.
Speaker #3: Together, the companies provide a comprehensive platform that connects customer insights, automated actions, and measurable business outcomes. Based on the increased opportunities of the combined company, moving forward, we are focused on scaling our financial performance to potentially achieve a Rule of 30 to Rule of 40 trajectory.
Speaker #3: For reference, the rule of 30 to 40 metric represents the combination of annual revenue growth rates plus adjusted EBITDA margins. If we're able to achieve anticipated revenue run rate growth and combine this with our improving adjusted EBITDA margins, the combined company could be positioned to potentially achieve these rule of 30 to 40 metrics over time.
Francis Feeney: If we are able to achieve anticipated revenue run rate growth and combine this with our improving Adjusted EBITDA margins, the combined company could be positioned to potentially achieve these rule of 30 to 40 metrics over time, which we believe helps highlight the unique opportunity of the combined company. With that, I will hand the call back to Russ for closing remarks.
Francis Feeney: If we are able to achieve anticipated revenue run rate growth and combine this with our improving Adjusted EBITDA margins, the combined company could be positioned to potentially achieve these rule of 30 to 40 metrics over time, which we believe helps highlight the unique opportunity of the combined company. With that, I will hand the call back to Russ for closing remarks.
Speaker #3: Which we believe helps highlight the unique opportunity of the combined company. With that, I will hand the call back to Russ for closing remarks.
Speaker #4: Thank you, Frank. As we previously shared, we're highly focused on building a business that exceeds $100 million over time, and we believe that the combination of Marchex and Arcania has better positioned us to achieve this goal.
Russ Horowitz: Thank you, Frank. As we previously shared, we are highly focused on building a more than $100 million business over time, and we believe that the combination of Marchex and Arkanea has better positioned us to achieve this goal. We ended H2 2026 with a larger revenue base, a more comprehensive AI-powered platform, and a broader opportunity to help customers turn conversations into measurable business outcomes. Our priorities are clear. We will expand the adoption of our combined offerings across our existing customer base with an emphasis on converting successful paid pilots into broader recurring deployments. We will also continue to manage expenses carefully while making selective investments that can support sustainable growth and operating leverage. We believe Marchex now has a stronger foundation from which to grow.
Russell Horowitz: Thank you, Frank. As we previously shared, we are highly focused on building a more than $100 million business over time, and we believe that the combination of Marchex and Arkanea has better positioned us to achieve this goal. We ended H2 2026 with a larger revenue base, a more comprehensive AI-powered platform, and a broader opportunity to help customers turn conversations into measurable business outcomes. Our priorities are clear. We will expand the adoption of our combined offerings across our existing customer base with an emphasis on converting successful paid pilots into broader recurring deployments. We will also continue to manage expenses carefully while making selective investments that can support sustainable growth and operating leverage. We believe Marchex now has a stronger foundation from which to grow.
Speaker #4: We entered the second half of 2026 with a larger revenue base, and we're comprehensive AI-powered platform and a broader opportunity to help customers turn conversations into measurable business outcomes.
Speaker #4: Our priorities are clear. We'll expand the adoption of our combined offerings across our existing customer base with an emphasis on converting successful paid pilots into broader recurring deployments.
Speaker #4: And we will also continue to manage expenses carefully while making selective investments that can support sustainable growth and operating leverage. We believe March X now has a stronger foundation from which to grow.
Speaker #4: At the same time, we recognize that successful execution will depend on demonstrating measurable customer value, converting that value into recurring revenue, and delivering disciplined financial performance.
Russ Horowitz: At the same time, we recognize that successful execution will depend on demonstrating measurable customer value, converting that value into recurring revenue, and delivering disciplined financial performance. I am going to close out today's call by thanking all of our investors, partners, and other stakeholders for your ongoing support. I also want to thank our employees for their expertise, urgency, and commitment while we execute on the growth opportunities ahead. With that, I will hand the call back to the operator for questions.
Russell Horowitz: At the same time, we recognize that successful execution will depend on demonstrating measurable customer value, converting that value into recurring revenue, and delivering disciplined financial performance. I am going to close out today's call by thanking all of our investors, partners, and other stakeholders for your ongoing support. I also want to thank our employees for their expertise, urgency, and commitment while we execute on the growth opportunities ahead. With that, I will hand the call back to the operator for questions.
Speaker #4: I'm going to close out today's call by thanking all of our investors, partners, and other stakeholders for your ongoing support. I also want to thank our employees for their expertise, urgency, and commitment while we execute on the growth opportunities ahead.
Speaker #4: And with that, I will hand the call back to the operator for questions.
Speaker #5: We will now begin the question and answer session. If you would like to ask a question, please press star one to raise your hand.
Operator: We will now begin the question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Ross Kahler with Kahler Capital. Your line is open. Please go ahead.
Operator: We will now begin the question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Ross Kahler with Kahler Capital. Your line is open. Please go ahead.
Speaker #5: To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality.
Speaker #5: If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Ross Caller with Caller Capital.
Speaker #5: Your line is open. Please go ahead.
Speaker #6: Hey, guys. Congrats on the early wins and momentum. I have a few questions today. First, examples of customer expansions are great and seem to validate the cross-sell.
Ross Kahler: Hey, guys. Congrats on the early wins and momentum. I have a few questions today. First, examples of customer expansions are great and seem to validate the cross-sell. Russ, can you provide some more color on the quality of the pipeline, particularly the amount of million-dollar deals in there? As a follow-up, how big can deals get on an annual basis? In particular, are there any multimillion-dollar deals in there?
Ross Koller: Hey, guys. Congrats on the early wins and momentum. I have a few questions today. First, examples of customer expansions are great and seem to validate the cross-sell. Russ, can you provide some more color on the quality of the pipeline, particularly the amount of million-dollar deals in there? As a follow-up, how big can deals get on an annual basis? In particular, are there any multimillion-dollar deals in there?
Speaker #6: Ross, can you provide some more color on the quality of the pipeline, and particularly the amount of million-dollar deals in there? And as a follow-up, how big can deals get on an annual basis, and in particular, are there any multi-million-dollar deals in there?
Speaker #4: Yeah, it's a really good question. It actually hits right on how we think about our pipeline and are looking at the growth path. We believe we have a double-digit number of customers where there's potential for seven figures or more of incremental revenue from today.
Russ Horowitz: Yeah. It's a really good question. It actually hits right on how we think about our pipeline and are looking at the growth path. We believe we have a double-digit number of customers where there's potential for seven figures or more of incremental revenue from today. Within that group, we believe many of them over time likely have the potential to incrementally deliver multi-millions of dollars per year. So there's really plenty of opportunity at the million-dollar plus and multimillion-dollar scale. If we can make this happen, it'll be very meaningful, and it will move the needle. This has been one of the big takeaways for us so far, that we have this big potential revenue expansion on a per-customer basis. We believe our expanded TAM just on existing customers is very significant, and it's why we're working with urgency to build the momentum.
Russell Horowitz: Yeah. It's a really good question. It actually hits right on how we think about our pipeline and are looking at the growth path. We believe we have a double-digit number of customers where there's potential for seven figures or more of incremental revenue from today. Within that group, we believe many of them over time likely have the potential to incrementally deliver multi-millions of dollars per year. So there's really plenty of opportunity at the million-dollar plus and multimillion-dollar scale. If we can make this happen, it'll be very meaningful, and it will move the needle. This has been one of the big takeaways for us so far, that we have this big potential revenue expansion on a per-customer basis. We believe our expanded TAM just on existing customers is very significant, and it's why we're working with urgency to build the momentum.
Speaker #4: Within that group, we believe many of them over time, likely have the potential to incrementally deliver multi-millions of dollars per year so there's really plenty of opportunity.
Speaker #4: At the million-dollar-plus and multi-million-dollar scale, so if we can make this happen, it'll be very meaningful, and it will move the needle. This has been one of the big takeaways for us so far—that we have this big potential revenue expansion on a per-customer basis.
Speaker #4: And we believe our expanded TAM, just on existing customers, is very significant. And it's why we're working with urgency to build the momentum.
Ross Kahler: Awesome. Thanks for that color. Russ, what's driving the dramatically increased deal sizes? How is AI affecting the growth and the amount of value you can provide your customers today?
Ross Koller: Awesome. Thanks for that color. Russ, what's driving the dramatically increased deal sizes? How is AI affecting the growth and the amount of value you can provide your customers today?
Speaker #6: Awesome. Thanks for that color. Ross, what's driving the dramatically increased deal sizes? And how is AI affecting the growth and the amount of value you can provide your customers today?
Speaker #4: Yeah. The deal size, that's really being driven by our ability to move beyond selling just the analytics and the resulting insights and now bundling it with the actions and revenue-generating outcomes that the insights inform.
Russ Horowitz: Yeah. The deal size, that's really being driven by our ability to move beyond selling just the analytics and the resulting insights, and now bundling it with the actions and revenues generating outcomes that the insights inform. When we've only sold insights, we have very little influence or control on whether the customer actually follows through and takes action on these. In the absence of action, they don't achieve the value impact that the insights inform. Don't get me wrong, many customers do take actions in various forms, but a lot of the low-hanging fruit and potential value never gets harvested fully because taking these actions involves their needing to make operational changes, mobilize cross-departmental collaboration, and other logistical requirements, and these are large, complex organizations.
Russell Horowitz: Yeah. The deal size, that's really being driven by our ability to move beyond selling just the analytics and the resulting insights, and now bundling it with the actions and revenues generating outcomes that the insights inform. When we've only sold insights, we have very little influence or control on whether the customer actually follows through and takes action on these. In the absence of action, they don't achieve the value impact that the insights inform. Don't get me wrong, many customers do take actions in various forms, but a lot of the low-hanging fruit and potential value never gets harvested fully because taking these actions involves their needing to make operational changes, mobilize cross-departmental collaboration, and other logistical requirements, and these are large, complex organizations.
Speaker #4: When we've only sold insights, we have very little influence or control over whether the customer actually follows through and takes action on these. And in the absence of action, they don't achieve the value impact that the insights inform.
Speaker #4: Don't get me wrong. I mean, many customers do take actions in various forms. But a lot of the low-hanging fruit and potential value never gets harvested fully because taking these actions involves their needing to to make operational changes, mobilize cross-departmental collaboration, and other logistical requirements and these are large complex organizations.
Russ Horowitz: With our solutions now connecting our insights to the AI-driven automated actions, to hit on that second part of your question, where we effectively can take the action for them, and with the outcomes being handsomely achievable and measurable, it changes how much they're willing to pay us. That's what really drives the increased revenue opportunity with so many of these customers. Our value impact at the bottom of the customer acquisition funnel, where much larger existing budgets exist, is significantly amplified. The great part is our analytics are able to objectify the improved results by measuring the revenue dollars of the outcomes we generate.
Speaker #4: But with our solutions now connecting our insights to the AI-driven automated actions to hit on that second part of your question, where we effectively can take the action for them and with the outcomes being tangibly achievable and measurable, it changes how much they're willing to pay us.
Russell Horowitz: With our solutions now connecting our insights to the AI-driven automated actions, to hit on that second part of your question, where we effectively can take the action for them, and with the outcomes being handsomely achievable and measurable, it changes how much they're willing to pay us. That's what really drives the increased revenue opportunity with so many of these customers. Our value impact at the bottom of the customer acquisition funnel, where much larger existing budgets exist, is significantly amplified. The great part is our analytics are able to objectify the improved results by measuring the revenue dollars of the outcomes we generate.
Speaker #4: And that's what really drives the increased revenue opportunity with so many of these customers. So our value impact at the bottom of the customer acquisition funnel, where much larger existing budgets exist, is significantly amplified.
Speaker #4: And the great part is our analytics are able to objectify the improved results by measuring the revenue dollars of the outcomes we generate. So our evolved solutions can and will not only inform the action that's needed, but they can then take the action on the customer's behalf and achieve the transactional outcome most valued by the customer and then also measure and validate the result.
Russ Horowitz: Our evolved solutions can and will not only inform the action that's needed, but they can then take the action on the customer's behalf and achieve the transactional outcome most valued by the customer, and then also measure and validate the result. It can complete and close the entire loop right down to the customer acquisition layer. Because of this, we can substantiate a much bigger piece of the pie. All that we've learned so far in this process continues to support our belief that on a combined basis, as we noted in the body of our presentation, that we have $100 million plus revenue opportunity, and we're just approaching all of our efforts as a profitably focused sprint to that $100 million revenue run rate and beyond.
Russell Horowitz: Our evolved solutions can and will not only inform the action that's needed, but they can then take the action on the customer's behalf and achieve the transactional outcome most valued by the customer, and then also measure and validate the result. It can complete and close the entire loop right down to the customer acquisition layer. Because of this, we can substantiate a much bigger piece of the pie. All that we've learned so far in this process continues to support our belief that on a combined basis, as we noted in the body of our presentation, that we have $100 million plus revenue opportunity, and we're just approaching all of our efforts as a profitably focused sprint to that $100 million revenue run rate and beyond.
Speaker #4: It can complete and close the entire loop right down to the customer acquisition layer and because of this, we can substantiate a much bigger piece of the pie.
Speaker #4: And that's all that we've learned so far, and this process continues to support our belief that, on a combined basis, as we noted in the body of our presentation, we have a $100 million-plus revenue opportunity. We're just approaching all of our efforts as a profitably focused sprint to that $100 million revenue run rate and beyond.
Ross Kahler: Awesome. Thanks for that, Russ. With the enhanced profitability of the business and the nearly $10 million EBITDA run rate projected for this quarter, can you walk us through your thoughts on capital allocation and buybacks versus reinvestment back into growing the business?
Ross Koller: Awesome. Thanks for that, Russ. With the enhanced profitability of the business and the nearly $10 million EBITDA run rate projected for this quarter, can you walk us through your thoughts on capital allocation and buybacks versus reinvestment back into growing the business?
Speaker #6: Awesome. Thanks for that, Ross. And then, with the enhanced profitability of the business and the nearly $10 million EBITDA run rate projected for this quarter, can you walk us through your thoughts on capital allocation and buybacks versus reinvestment back into growing the business?
Russ Horowitz: Yeah. Things we think a lot about. We think we are at a positive inflection point. Clearly, we are just getting into this evolved opportunity. But in terms of our increasing ability to generate more cash, we will assess best and highest use of that increase in cash as we go forward and achieve these milestones. It is worth noting, we are a low CapEx business. We have meaningful tax shields. The Arkanea transaction actually helps us optimize our free cash flow generation in totality. Yeah, as we move forward, it just gives us more flexibility. I have also noted before, if you look at our history, we have had times where we have done stock buybacks, we have done self-tender offers, we have declared special dividends and other, I think, shareholder-centric behaviors. Just to remind everyone, we do have an existing 3 million share buyback program that is authorized at this time.
Russell Horowitz: Yeah. Things we think a lot about. We think we are at a positive inflection point. Clearly, we are just getting into this evolved opportunity. But in terms of our increasing ability to generate more cash, we will assess best and highest use of that increase in cash as we go forward and achieve these milestones. It is worth noting, we are a low CapEx business. We have meaningful tax shields. The Arkanea transaction actually helps us optimize our free cash flow generation in totality. Yeah, as we move forward, it just gives us more flexibility.
Speaker #4: Yeah. These are things we think a lot about. We think we're at a positive inflection point. Clearly, we're just getting into this evolving opportunity. But in terms of our increasing ability to generate more cash, we will assess the best and highest use of that increasing cash as we go forward and achieve these milestones.
Speaker #4: It is worth noting we're a low capex business. We have meaningful tax yields. The Arcadia transaction actually helps us optimize our free cash flow generation in totality.
Speaker #4: So as we move forward, it just gives us more flexibility. I've also noted before, if you look at our history, we've had times where we've done stock buybacks.
Russell Horowitz: I have also noted before, if you look at our history, we have had times where we have done stock buybacks, we have done self-tender offers, we have declared special dividends and other, I think, shareholder-centric behaviors. Just to remind everyone, we do have an existing 3 million share buyback program that is authorized at this time. The other thing I would point out is that me, the other insiders in the board, we own about a third of the company, and we are super focused on getting the stock value recognized and also creating new incremental value.
Speaker #4: We've done self-tender offers. We've declared special dividends and other kind of I think shareholder-centric behaviors. And just to remind everyone, we do have an existing $3 million share buyback program that's authorized at this time.
Russ Horowitz: The other thing I would point out is that me, the other insiders in the board, we own about a third of the company, and we are super focused on getting the stock value recognized and also creating new incremental value. To that end, on the investor relations front with where we are now in our opportunity and how we think about it going forward, we are planning to be much more active and out there with investors, communicating about what we are doing, why it is exciting, different, and defensible, and how big we think this can be so that investors can hopefully start to appreciate us more and what our potential might look like.
Speaker #4: The other thing I'd point out is that we, the other insiders and the board, own about a third of the company, and we're super focused on getting the stock value recognized and also creating new incremental value.
Russell Horowitz: To that end, on the investor relations front with where we are now in our opportunity and how we think about it going forward, we are planning to be much more active and out there with investors, communicating about what we are doing, why it is exciting, different, and defensible, and how big we think this can be so that investors can hopefully start to appreciate us more and what our potential might look like.
Speaker #4: To that end, on the investor relations front, with where we are now and our opportunity, and how we think about it going forward, we're planning to be much more active and out there with investors communicating about what we're doing why it's exciting, different and defensible, and how big we think this can be.
Speaker #4: So that investors can hopefully start to appreciate us more, and what our potential might look like.
Ross Kahler: Awesome. Thanks, guys.
Ross Koller: Awesome. Thanks, guys.
Speaker #6: Awesome. Thanks, guys.
Russ Horowitz: Appreciate the questions.
Russell Horowitz: Appreciate the questions.
Speaker #4: Appreciate the questions.
Operator: Your next question comes from the line of Mike Latimore with Northland Capital Markets. Your line is open. Please go ahead.
Operator: Your next question comes from the line of Mike Latimore with Northland Capital Markets. Your line is open. Please go ahead.
Speaker #1: Your next question comes from the line of Mike Lattimore with Northland Capital Markets. Your line is open. Please go ahead.
Mike Latimore: Yep. Great. Thanks. Yeah. Congrats on the acquisition here. Thanks for the pro forma numbers. The sequential growth in Q2 and then forecasted in Q3 looks pretty healthy there. Is that still mainly the core businesses sort of organically doing your thing, or is there a fair amount of cross-sell already benefiting the numbers here?
Mike Latimore: Yep. Great. Thanks. Yeah. Congrats on the acquisition here. Thanks for the pro forma numbers. The sequential growth in Q2 and then forecasted in Q3 looks pretty healthy there. Is that still mainly the core businesses sort of organically doing your thing, or is there a fair amount of cross-sell already benefiting the numbers here?
Speaker #5: Yeah. Great. Thanks. Yeah. Congrats on the acquisition here. And thanks for the pro forma numbers. The sequential growth in the second quarter and then forecasted in the third quarter looks pretty healthy there.
Speaker #5: Is that still mainly the core businesses sort of organically doing their thing, or is there a fair amount of cross-sell already benefiting the numbers here?
Speaker #4: Yeah, super good question. Both companies, kind of on their own, have had and continue to have growth catalysts. But what's really driving it is these collaborative products.
Russ Horowitz: Super good question. Both companies on their own have had and continue to have growth catalysts. What's really driving it is these collaborative products. It's what really opens up the wallet sort of customer level when we can deliver these integrated bundled solutions. It's really where we think our kind of competitive moat is because we've got the customer data. We know where the opportunities exist to do better. As we noted previously, we had dependencies on them looking at the insights and doing something about it independent of us.
Russell Horowitz: Super good question. Both companies on their own have had and continue to have growth catalysts. What's really driving it is these collaborative products. It's what really opens up the wallet sort of customer level when we can deliver these integrated bundled solutions. It's really where we think our kind of competitive moat is because we've got the customer data. We know where the opportunities exist to do better. As we noted previously, we had dependencies on them looking at the insights and doing something about it independent of us.
Speaker #4: It's what really opens up the wallet share to the customer level when we can deliver these integrated bundled solutions, and it's really where we think our kind of competitive moat is—because we've got the customer data, we know where the opportunities exist to do better.
Speaker #4: And kind of as we noted previously, we had dependencies on that looking at the insights and doing something about it independent of us. But now we can go to them and tell them not only can we eliminate where the big opportunities are, to drive much better ROI and performance at the bottom of the funnel, but we can automate the actions using the bundled solutions and then we can also deliver and sell the outcomes and then as noted, validate it so we get that closed loop.
Russ Horowitz: Now we can go to them and tell them not only can we eliminate where the big opportunities are to drive much better ROI and performance at the bottom of the funnel, but we can automate the actions using the bundled solutions. Then we can also deliver and sell the outcomes. Then, as noted, validate it so we get that closed loop. That's been a very appealing value proposition. It's obviously very early. We gave the three examples that reflect three different products that have translated into meaningful customer expansion. Yeah, we really look at this and are mindful of each of the opportunities on the standalone products that came from Marchex and Arkanea. What's really driving it and where we see the competitive differentiation and growth is with these combined solutions.
Russell Horowitz: Now we can go to them and tell them not only can we eliminate where the big opportunities are to drive much better ROI and performance at the bottom of the funnel, but we can automate the actions using the bundled solutions. Then we can also deliver and sell the outcomes. Then, as noted, validate it so we get that closed loop. That's been a very appealing value proposition. It's obviously very early. We gave the three examples that reflect three different products that have translated into meaningful customer expansion. Yeah, we really look at this and are mindful of each of the opportunities on the standalone products that came from Marchex and Arkanea. What's really driving it and where we see the competitive differentiation and growth is with these combined solutions.
Speaker #4: That's been a very appealing value proposition. It's obviously very early. We gave the three examples that reflect kind of three different products that have translated into meaningful customer expansion.
Speaker #4: So, yeah, we really look at this, and we're mindful of each of the opportunities on the standalone products that came from our checks in Arcadia.
Speaker #4: But what's really driving it, and where we see the competitive differentiation and growth, is with these combined solutions.
Speaker #5: Got it. And then yeah, the three customers were super interesting. And is it fair to say that the upsell that you're seeing across those three is with one product and that over time you might have I think you originally were talking five potential products.
Mike Latimore: The three customers were super interesting. Is it fair to say that the upsell that you are seeing across those three is with one product and that over time, you might have, I think you originally were talking five potential products. Is that a fair way to think about it?
Mike Latimore: The three customers were super interesting. Is it fair to say that the upsell that you are seeing across those three is with one product and that over time, you might have, I think you originally were talking five potential products. Is that a fair way to think about it?
Speaker #5: Is that a fair way to think about it?
Russ Horowitz: Yeah. There is kind of five products. One or two of them are later stages of development, but we are in conversations with customers based on our expected timing of their availability. But it is why with the three examples, we chose three specific products that are new and leverage the combined solutions, the AI-verified outcomes, which we talked about more than doubling a home services company opportunity.
Russell Horowitz: Yeah. There is kind of five products. One or two of them are later stages of development, but we are in conversations with customers based on our expected timing of their availability. But it is why with the three examples, we chose three specific products that are new and leverage the combined solutions, the AI-verified outcomes, which we talked about more than doubling a home services company opportunity. We talked about the specific integration focused on enhanced agent performance for a big auto services company with thousands of locations, where that has a very significant direct impact on bottom of the funnel performance.
Speaker #4: Yeah. Yeah. There's kind of five products one or two of them are later stages of development, but we are in conversations with customers based on our expected timing of their availability.
Speaker #4: But it's why would the three examples we chose three specific products that are new and leverage the combined solutions. The AI verified outcomes, which we talked about more than doubling the home services company opportunity.
Speaker #4: We talked about the specific integration focused on enhanced agent performance for a big auto services company with thousands of locations, where that has a very significant direct impact on bottom-of-the-funnel performance.
Russ Horowitz: We talked about the specific integration focused on enhanced agent performance for a big auto services company with thousands of locations, where that has a very
Russ Horowitz: significant direct impact on bottom of the funnel performance. The third one is conversational AI agents to improve call handling with a third customer. So three different product implementations, all of which leverage the combined capabilities and increase individual customer revenue by between 50% and over 100%. So for us, the model is there, it just comes down to how many more of these yeses can we get, how fast can we get them, and what does it look like to scale that. That is what gives us the urgency and encouragement.
Speaker #4: And then the third one is conversational AI agents to improve call handling with a third customer so three different product implementations all of which leverage the combined capabilities.
Russell Horowitz: The third one is conversational AI agents to improve call handling with a third customer. So three different product implementations, all of which leverage the combined capabilities and increase individual customer revenue by between 50% and over 100%. So for us, the model is there, it just comes down to how many more of these yeses can we get, how fast can we get them, and what does it look like to scale that. That is what gives us the urgency and encouragement.
Speaker #4: And increase individual customer revenue by between 50% and over 100%. So, for us, the models there just come down to how many more of these yeses can we get?
Speaker #4: How fast can we get them? And what does it look like to scale that? And that's what gives us the urgency and encouragement.
Mike Latimore: Right. Can you just touch on the evolution of Arkanea, and in particular, obviously it has been around a while. How has AI changed what they can offer, the type of outcomes their customers get, and what kind of AI are they really using here or developing? Is it generative? Is it natural language understanding, agentic? Just a little color on the evolution of Arkanea and how AI has changed what they can offer and what the benefits come from it.
Mike Latimore: Right. Can you just touch on the evolution of Arkanea, and in particular, obviously it has been around a while. How has AI changed what they can offer, the type of outcomes their customers get, and what kind of AI are they really using here or developing? Is it generative? Is it natural language understanding, agentic? Just a little color on the evolution of Arkanea and how AI has changed what they can offer and what the benefits come from it.
Speaker #5: Right. Right. And then just can you just touch on the kind of evolution of Arcadia and in particular how has obviously it's been around a while.
Speaker #5: How has AI sort of changed what they can offer the type of outcomes their customers get? And what kind of AI are they really using here or developing?
Speaker #5: Is it generative? Is it natural language understanding? Agentic? Just little color on the evolution of Arcadia and how AI has changed what they can offer and what the benefits come from it.
Russ Horowitz: Yeah. There are aspects across the board that are all incorporated into its solution. It does definitely integrate and utilize agentic AI capabilities. When we look at some of the core components that Arkanea has developed and validated with its customer bases that we are now leveraging across the combined company, one of them is our conversational lead qualification agent. We can take inbound leads at the top of the funnel and on an automated basis qualify those before they ever connect with an advertiser. Additionally, what we are able to do is real-time conversational analysis to categorize and understand success and failure, both on a transactional basis, which leads us to the ability to sell AI-verified outcomes, and whether it is different forms of consumer intent, like an appointment or an actual sale.
Russell Horowitz: Yeah. There are aspects across the board that are all incorporated into its solution. It does definitely integrate and utilize agentic AI capabilities. When we look at some of the core components that Arkanea has developed and validated with its customer bases that we are now leveraging across the combined company, one of them is our conversational lead qualification agent. We can take inbound leads at the top of the funnel and on an automated basis qualify those before they ever connect with an advertiser. Additionally, what we are able to do is real-time conversational analysis to categorize and understand success and failure, both on a transactional basis, which leads us to the ability to sell AI-verified outcomes, and whether it is different forms of consumer intent, like an appointment or an actual sale.
Speaker #4: Yeah, there are aspects across the board that are all incorporated into the solution. But, yeah, it does definitely integrate and utilize agentic AI capabilities. When we look at some of the core components that Arcadia has developed and validated with its customer base, we’re now leveraging those across the combined company.
Speaker #4: One of them is our conversational lead qualification agent. So we can take inbound leads at the top of the funnel and, on an automated basis, qualify those before they ever connect with an advertiser.
Speaker #4: And then additionally, what we're able to do is real-time conversational analysis to categorize and understand success and failure both on the transactional sell AI verified outcomes and whether it's different forms of consumer intent like on appointment or an actual sale.
Russ Horowitz: Then feed all of that real-time analysis back into the system to optimize the other components. The ability to do all those things in relative real-time and at scale, as well as take these highly detailed specific classifications and transparently, we talk about transparency and truth. Truthfully, transparently make those available to our customers in a way that gives them a lens on their business and their core success metrics they have not previously had, is an important ingredient in what these combined solutions are leveraging.
Speaker #4: And then feed all of that real-time analysis back into the system to optimize the other components. So the ability to do all those things in relative real-time and at scale as well as take these highly detailed specific classifications and transparently and we talk about transparency and truth.
Russell Horowitz: Then feed all of that real-time analysis back into the system to optimize the other components. The ability to do all those things in relative real-time and at scale, as well as take these highly detailed specific classifications and transparently, we talk about transparency and truth. Truthfully, transparently make those available to our customers in a way that gives them a lens on their business and their core success metrics they have not previously had, is an important ingredient in what these combined solutions are leveraging.
Speaker #4: Truthfully, transparently make those available to our customers in a way that gives them a lens on their business and their core success metrics they haven't previously had.
Speaker #4: It is an important ingredient in what these combined solutions are leveraging.
Mike Latimore: Great. Okay. Thank you. Thanks very much.
Mike Latimore: Great. Okay. Thank you. Thanks very much.
Speaker #5: Great. All right, thank you. Thanks very much.
Russ Horowitz: Really appreciate it. Thank you.
Russell Horowitz: Really appreciate it. Thank you.
Speaker #4: Really appreciate it. Thank you.
Speaker #1: We have reached the end of the Q&A session. I will now turn the call back over to management team for closing remarks.
Operator: We have reached the end of the Q&A session. I will now turn the call back over to management team for closing remarks.
Operator: We have reached the end of the Q&A session. I will now turn the call back over to management team for closing remarks.
Speaker #4: We appreciate everyone's participation in our call today. We're pleased to keep you updated on both the closing of the transaction and where we are, what our primary focus is, and what we think is an evolved, exciting opportunity that we are going to focus on—successfully executing and delivering real progress.
Russ Horowitz: We appreciate everyone's participation in our call today. We are pleased to keep you updated on both the closing of the transaction and where we are and what our primary focus is, and what we think is an evolved, exciting opportunity that we are going to focus on successfully executing and delivering real progress. Appreciate your support, and we will look forward to updating you as we move forward. Thank you.
Russell Horowitz: We appreciate everyone's participation in our call today. We are pleased to keep you updated on both the closing of the transaction and where we are and what our primary focus is, and what we think is an evolved, exciting opportunity that we are going to focus on successfully executing and delivering real progress. Appreciate your support, and we will look forward to updating you as we move forward. Thank you.
Speaker #4: Appreciate your support and we'll look forward to updating you as we move forward. Thank you.
Operator: Thank you for attending. You may now disconnect.
Operator: Thank you for attending. You may now disconnect.
