Revenue in free-fall, but company still generating cash.
Domain name and local search company Marchex (NASDAQ: MCHX) today reported a 44% drop in revenues for Q2 2009 compared to the same quarter last year, but the company still managed to generate cashflow and carries no debt.
The company posted $21.1M in revenue for the quarter, compared to $37.4M in the same quarter of 2008. For the first half of the year revenue dropped to $47.7M compared with $74.4M in the first half of 2008.
Marchex also reported that it sold a small number of domain names for $900,000 during the quarter.
The company reported a loss in the quarter on a GAAP basis, losing 4 cents per diluted share. Last year in the same quarter the company earned a penny per share. On an adjusted basis, the company earned 3 cents per share compared to 9 cents in the same period last year.
Marchex will hold an investor conference call this afternoon. It’s stock is down a penny in after hours trading.
adam says
wow! 44 percent drop in rev but still generating cash at approximately the same rate. Sounds fishy!
Andrew Allemann says
Adam – they were prepared for the drop and cut expenses accordingly. Profits beat expectations but revenue fell just short.
adam says
Andrews, I have been following this company for sometime to buy stocks. However, I have not seen any news items related to significant cost reductions happening in this company for a while now. This is the reason I remain cautious about this co.
Andrew Allemann says
@adam – I don’t know the details on the cuts, but if you look at the income statement in today’s filing you’ll see that they cut them about in line with the revenue drop.
D says
My guess would be Marchex’s biggest expense keeps beeing Horowitz’s + his clique salaries + bonuses
John Dawson says
This says a lot Marchex lists their domains for sale http://www.domainnamenews.com/domain-sales/marchex-lists-domains-sale/6024