Earnings miss estimates while company sells $1M in non-strategic domain names.
Online advertising company Marchex (NASDAQ: MCHX) missed analysts’ adjusted earnings estimates by 3 cents per share, earning only 2 cents per share in the first quarter of 2009. Analysts had predicted earnings of 5 cents per share. Revenue fell 28% compared to the same quarter last year, coming in at only $26.6 million.
During the quarter Marchex sold $1M worth of domain names:
In addition, during the quarter, Marchex sold a small number of non-strategic domains that yielded nearly $1 million. There is still significant demand for high quality domains and Marchex believes that will remain the case in 2009 and beyond.
[Updated 5-7-09] On yesterday’s investor conference call, Marchex CEO Russell Horowitz said the company is stepping up efforts to sell some of its domain names.
Marchex’s domain portfolio consists mainly of domain names gained when the company acquired Yun Ye’s Ult Search portfolio for over $100M. The company focuses on local advertising and uses a proprietary ad network of 70,000 advertisers in addition to a Yahoo advertising feed.