SEATTLE, WA - Marchex Inc. (NASDAQ:MCHX), a company specializing in business services, announced the approval of stock option grants to its directors following their re-election at the annual stockholders meeting held on Wednesday. Each director received 50,000 options under the 2021 Stock Incentive Plan, with an exercise price equal to the closing price of Marchex's Class B common stock on the grant date of November 6, 2024.
The granted options will vest over a two-year period, with half vesting on each anniversary of the grant date. Full vesting will occur immediately if a Change in Control, as defined in the Plan, takes place. Alongside the stock options, Marchex has also committed to paying each independent director a cash compensation of $7,500 quarterly for their service on the board.
This move is part of the company's compensatory arrangements for its directors, aiming to align the interests of the board members with those of the shareholders and to incentivize their continued contribution to the company's governance and success.
In other recent news, Marchex, Inc. reported mixed results for the second quarter of 2024. The company's revenue for the quarter reached $12.1 million, a slight decrease from $12.5 million in the same period the previous year. However, the company saw significant improvements in adjusted EBITDA, which turned into a gain of $300,000 compared to a loss of $1 million in Q2 2023. Additionally, the GAAP net loss narrowed to $800,000, down from a loss of $2.7 million year-over-year.
Marchex's leadership shared an optimistic outlook, highlighting growth in their sales pipeline and key customer verticals. They also mentioned strategic advancements, particularly in the development of their OneStack platform. The company anticipates Q3 2024 revenue to be at least $12.6 million and expects adjusted EBITDA to be in the range of or better than Q2 2024 results.
Despite facing headwinds from certain customer segments, the company is seeing traction in the auto, auto services, and home services verticals. These recent developments suggest that Marchex is poised for growth in the second half of 2024, with a strong position to meet or exceed its targets for gross margin improvement and profitability profile.
InvestingPro Insights
Marchex's recent decision to grant stock options to its directors aligns with the company's current financial situation and market performance. According to InvestingPro data, Marchex has a market capitalization of $76.23 million, reflecting its position as a smaller player in the business services sector. Despite facing profitability challenges, with a negative P/E ratio of -18.14, the company has shown resilience in its stock performance.
An InvestingPro Tip highlights that Marchex has experienced a large price uptick over the last six months, which is corroborated by the impressive 34.33% price total return over the same period. This positive trend may have influenced the decision to offer stock options as a form of compensation, potentially aligning directors' interests with the company's recent market success.
Another relevant InvestingPro Tip notes that Marchex holds more cash than debt on its balance sheet, suggesting a relatively stable financial position despite current profitability challenges. This financial cushion may provide the company with flexibility as it navigates its growth strategy and compensates its leadership.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for Marchex, providing deeper insights into the company's financial health and market position.
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