Marchex, Inc. (NASDAQ:MCHX) Q3 2022 Earnings Conference Call November 3, 2022 5:00 PM ET

Company Participants

Trevor Caldwell - Investor Relations

Michael Arends - Co-Chief Executive Officer

Russell Horowitz - Co-Chief Executive Officer

Conference Call Participants

Dillon Heslin - ROTH Capital Partners

Vivek Palani - JMN Research

Operator

Good afternoon, everyone, and welcome to the Marchex’s Third Quarter Conference Call. My name is Emily and I will be your conference call operator today. [Operator Instructions] I will now turn the call over to our host, Trevor Caldwell, Senior Vice President of Strategic Initiatives and Investor Relations. Please go ahead, Trevor.

Trevor Caldwell

Thank you, Emily. Good afternoon, everyone and welcome to Marchex’s business update and third quarter 2022 conference call. Joining us today are Michael Arends and Russell Horowitz, our Co-CEOs.

Before we get started, I would like to take this opportunity to remind you that our remarks today will include forward-looking statements, including references to our financial and operational performance and actual results may differ materially from those contemplated by these forward-looking statements. Risks and uncertainties that could cause these results to differ materially are set forth in today’s earnings press release and in our most recent annual and quarterly report filed with the SEC. Any forward-looking statements that we make on this call are based on assumptions as of today and we undertake no obligation to update these statements for subsequent events. During this call, we will present both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in today’s earnings press release. The earnings press release is available for the Investor Relations section of our website.

At this time, I’d like to turn the call over to Mike Arends.

Michael Arends

Thank you, Trevor, and good afternoon, everyone. Thank you for joining us today. The third quarter was mixed for Marchex. The ongoing supply chain challenges and rising inflation continued to impact conversation volumes on a year-over-year basis for certain customers and business segments. At the same time, demand for our conversational intelligence software is growing among many of our largest customers as well as other large businesses with distributed retail footprints.

We are seeing healthy development in our pipeline, which is a positive indicator for our overall growth as we look into next year. There still are certain macroeconomic factors present such as inventory shortages, which have impacted prices in certain verticals. That, along with the pullback in consumer spending to a degree, has had a corresponding effect on conversation volumes at the retail level. That story is fluid on a vertical-by-vertical basis, but it is still a present factor, especially when looking at it on a year-over-year comparison basis.