The Seattle advertising analytics company said its downward spike stemmed from the loss of business from a few clients, which reduced their marketing budgets.
Seattle advertising-analytics company Marchex hit a rough patch during its second quarter, disappointing both company executives and investors.
The company’s stock plunged more than 17 percent Wednesday, closing the day at $2.79 per share, after the company reported a $68.8 million loss on $34.4 million in revenue during its quarterly earnings report Tuesday. Revenue nearly matched the $35.3 million the company reported in the same period last year, but profit took a big hit from $20.8 million in the second quarter of 2015.
“Let me start by saying that we are disappointed with our Q2 financial results and revised 2015 outlook, which are driven by a combination of factors,” CEO Pete Christothoulou said on a call Tuesday with investors and analysts.
Marchex runs analytics on various mobile ad campaigns for businesses, keeping track of which digital advertisements lead to customer visits either via phone or in person.
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Christothoulou attributed much of the quarterly loss to a few clients reducing their overall marketing budget. The company makes a large part of its revenue from a small group of big clients.
Two of those customers were acquired, Christothoulou said on the call, meaning they would spend “several million dollars” less this year with Marchex.
The company emphasized that it is adding customers and is in the midst of expanding its sales team to bring in more accounts.
“At the start of the year, we reorganized our sales-team infrastructure in order to concentrate on our push into the enterprise market,” a spokeswoman said Wednesday. “Our analytics platform was built to solve the biggest problems that large advertisers have in mobile advertising — namely, understanding how digital actions translate into offline purchases either over the phone or in stores.”
Marchex, which has 375 employees, was founded by former Go2Net executives and went public early in its life, in 2004.