Marchex Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Marchex Inc. has submitted its annual 10-K filing for the fiscal year ended December 31, 2023, detailing financial information and business operations.</b>

AI Summary

MARCHEX INC (MCHX) filed a Annual Report (10-K) with the SEC on April 1, 2024. Marchex Inc. filed its 10-K report for the fiscal year ending December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. Key financial statement items and disclosures are included, such as restricted stock, accounts receivable, and retained earnings. The company's business address is 1200 Fifth Ave, Suite 1300, Seattle, WA 98101. The filing references various accounting standards and internal company plans, including the Employee Stock Purchase Plan Twenty Fourteen.

Why It Matters

For investors and stakeholders tracking MARCHEX INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Marchex Inc.'s financial performance and position for the fiscal year 2023, which is crucial for investors to assess the company's health and future prospects. The detailed disclosures within the report, including specific financial line items and references to company plans, offer insights into Marchex's operational strategies, risk management, and executive compensation structures.

Risk Assessment

Risk Level: medium — MARCHEX INC shows moderate risk based on this filing. The filing is a standard 10-K annual report, which typically contains a broad range of financial and operational information, but lacks specific forward-looking guidance or significant event disclosures that would indicate immediate high risk or opportunity.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand Marchex Inc.'s performance and potential challenges for the upcoming fiscal year.

Key Numbers

• 2023-12-31 — Fiscal Year End (CONFORMED PERIOD OF REPORT)
• 2024-04-01 — Filed As Of Date (FILED AS OF DATE)
• 2023-03-29 — Date As Of Change (DATE AS OF CHANGE)

Key Players & Entities

• MARCHEX INC (company) — FILER
• 20231231 (date) — CONFORMED PERIOD OF REPORT
• 20240401 (date) — FILED AS OF DATE
• 1200 FIFTH AVE SUITE 1300 SEATTLE WA 98101 (address) — BUSINESS ADDRESS
• 7389 (sic_code) — STANDARD INDUSTRIAL CLASSIFICATION
• EdwinMiller (person) — Mentioned in context of a date
• MCHX (ticker) — Ticker symbol

FAQ

Industry Context

Marchex Inc. operates in the business services sector, specifically focusing on digital marketing and analytics solutions for businesses.

Regulatory Implications

The filing adheres to the regulations set forth by the Securities and Exchange Commission (SEC) for annual reports (Form 10-K).

What Investors Should Do

1. Analyze the financial statements for revenue, net income, and other key performance indicators.
2. Examine the risk factors section for potential challenges and uncertainties facing the company.
3. Review any disclosures related to executive compensation and corporate governance.

Year-Over-Year Comparison

This is the initial 10-K filing provided for analysis; no prior filing data is available for comparison.

Key Financial Figures

• $0.01 — hich registered Class B Common Stock, $0.01 par value per share MCHX The NASDAQ

Filing Documents

• mchx-20231231.htm (10-K) — 1802KB
• mchx-ex21_1.htm (EX-21.1) — 17KB
• mchx-ex23_1.htm (EX-23.1) — 4KB
• mchx-ex31_1i.htm (EX-31.1(I)) — 12KB
• mchx-ex31_1ii.htm (EX-31.1(II)) — 12KB
• mchx-ex32.htm (EX-32) — 19KB
• mchx-ex97_1.htm (EX-97.1) — 6KB
• 0000950170-24-038807.txt (&nbsp;) — 9526KB
• mchx-20231231.xsd (EX-101.SCH) — 1536KB
• mchx-20231231_htm.xml (XML) — 1840KB

BUSINESS

BUSINESS 4 ITEM 1A.

RISK FACTORS

RISK FACTORS 10 ITEM 1B. UNRESOLVED STAFF COMMENTS 24 ITEM 1C. CYBERSECURITY 24 ITEM 2.

PROPERTIES

PROPERTIES 24 ITEM 3.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 24 ITEM 4. MINE SAFETY DISCLOSURES 24 Part II ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 25 ITEM 6.

SELECTED FINANCIAL DATA

SELECTED FINANCIAL DATA 25 ITEM 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 26 ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 35 ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 36 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 61 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 61 ITEM 9B. OTHER INFORMATION 61 Part III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 63 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 63 ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 63 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 63 ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES 63 Part IV ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES 64 2 Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We use words such as "believes", "intends", "expects", "anticipates", "plans", "may", "will" and similar expressions to identify forward-looking statements. All forward-looking statements, including, but not limited to, statements regarding our future operating results, financial position, prospects, acquisitions, dispositions, and business strategy, expectations regarding our growth and the growth of the industry in which we operate, and plans and objectives of management for future operations, are inherently uncertain as they are based on our expectations and assumptions concerning future events. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements we make. There are a number of important factors that could cause the actual results of Marchex to differ materially from those indicated by such forward-looking statements. Any or all of our forward-looking statements in this report may turn out to be inaccurate. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. They may be affected by inaccurate assumptions we might make or by known or unknown risks and uncertainties, including the risks, uncertainties and assumptions described in Item 1A of this Annual Report on Form 10-K under the caption "Risk Factors" and elsewhere in this report, and those described from time to time in our future reports filed with the SEC. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this report may not occur as contemplated, and act

BUSINESS

ITEM 1. BUSINESS Overview References herein to "we," "us" or "our" refer to Marchex, Inc. ("Marchex" or the "Company") and its wholly-owned subsidiaries unless the context specifically states or implies otherwise. Marchex harnesses the power of AI and omnichannel conversational intelligence to provide actionable insights aligned with prescriptive vertical market data analytics, driving operational excellence and revenue acceleration. Marchex enables executive, sales, and marketing teams to optimize customer journey experiences across communications channels. Through our prescriptive analytics solutions, we enable the alignment of enterprise strategy, empowering businesses to increase revenue through informed decision-making and strategic execution. Marchex provides conversational intelligence AI-powered solutions for market-leading companies in leading B2B2C vertical markets, including several of the world's most innovative and successful brands. Our mission is to create intelligence around all types of business conversations. We desire to be a leader in vertical market conversational intelligence leveraging generative artificial intelligence and data analytics. We seek to empower performance improvements for our customers by giving them actionable, real-time insights into the conversations they are having with their customers across phone, text and other communication channels. We have assembled a set of applications that incorporate artificial intelligence ("AI") functionality for enterprises that depend on phone calls, texts and other communication channels to help convert prospects into customers, enabling compelling customer experiences during the sales process and helping maximize returns. Our proprietary data and conversational insights help enable brands to personalize customer interactions in order to accelerate sales and capture more opportunities to grow their business. We serve large enterprises with a distributed footprint that interact with the