Does anyone know where can I see their complete domain portfolio? I would be very interested to see the names they hold.

Originally posted by snoopy
What has the management done for the company, they despite so many acquisitions and talk about development they seem to be barely making any money?

I am not to sure how F.S. ' portfolio will compare to Mchx
"size-wise"?
but it will be very illustrative to compare each one of these' :
"business model" "overhead" "facilities" "biz tools" "man hours" "Organigram" and last but no least "Profitability" .

At the moment I am writing this in my underwear with my feet up my breakfast bar, my beloved dog is in my lap "one eye on the news" "one eye on the laptop" and the "other one" the third one looking for domain ideas...

Mchx ' Zip-code segment has always appeared to me as an "Optical Illusion"...."all bark no..."

So much for Domain related IPO's...

Between these 1) Mchx latest report and 2) the lastest moves by the Big G (MFA blocking and adsense' participants new options) , I think in the near future domain/portfolio purchases will be scrutinized a lot more , strategies reviewed , and "multiples paid" revisited.

On the cashflow valuation, the company is not worth much unless they can really generate some good growth in the near future.

What about liquidation value? They have about 200,000 names. After net cash adjustment from the balance sheet, the per name value is about $1750. I assume they do have some nice names. If they have 10 names that goes for a million dollars each, the average value of name drops to $1700.

I think WallSt doesn't understand the domains the way we do, and thus Marchex is headed towards $7 imo.

The negative news about general economy is increasing these days and its going to impact Marchex as well.

I may be wrong but thats what my gut feeling is.

They have 283 full-time employees.

http://finance.yahoo.com/q/pr?s=MCHX

That's a lot of overhead.

Originally posted by jfses
They have 283 full-time employees.

http://finance.yahoo.com/q/pr?s=MCHX

WOW. That is a lot of overhead. Might be a few less people working there if the price keeps dropping.

They can make a lot of money if they just park their names

Originally posted by Domo Sapiens
I am not to sure how F.S. ' portfolio will compare to Mchx
"size-wise"?
but it will be very illustrative to compare each one of these' :
"business model" "overhead" "facilities" "biz tools" "man hours" "Organigram" and last but no least "Profitability" .

At the moment I am writing this in my underwear with my feet up my breakfast bar, my beloved dog is in my lap "one eye on the news" "one eye on the laptop" and the "other one" the third one looking for domain ideas...

Mchx ' Zip-code segment has always appeared to me as an "Optical Illusion"...."all bark no..."

So much for Domain related IPO's...

Between these 1) Mchx latest report and 2) the lastest moves by the Big G (MFA blocking and adsense' participants new options) , I think in the near future domain/portfolio purchases will be scrutinized a lot more , strategies reviewed , and "multiples paid" revisited.

Allegedly, when Mchx bought Ult Search, it (Ult S) was netting approx $20m a year from 100,000 names.

Looking at the business.com model, would it have made more sense to develop one super-domain at a time while the rest are making $s on PPC? This would be a far more cost effective and lucrative strategy IMO.

Maybe domaining is meant to be a simple business for individuals with vision (and great hair, white teeth, etc) - big business seem to want to make it difficult in an attempt to justify itself.

As Domo Sapiens noted, give me the FS approach any day of the week. You can take your laptop with you on your month long vacation, or, sit in a collar and tie and explain to the shareholders why you've not done so good......no brainer for me!

Originally posted by king-dom
Allegedly, when Mchx bought Ult Search, it (Ult S) was netting approx $20m a year from 100,000 names.

And now they are a 150 Million dollar business and growing

Marchex is doing fine.. they continue to expand ..that expansion more than anything else is where the expenses are coming from ..(yep ..you actually have to PAY for those new assets )

They dont want to be a 20 million dollar micro company..

in fact there latest aqustion is more than $20 million.. they are paying 28 million for VoiceStar..

Fast growth companies are rarely "immediately profitable" .. it's all about becoming the big player ..

The "domains" are just a base to build on..

look ..

"Marchex has more than 200,000 Web sites that contain more than one billion pages of targeted local content to help local consumers make better decisions. These Web sites generate tens of millions of visitors for our network and delivered more than 40 million look-ups and referrals in the second quarter. "


This isnt about being able to run around the beach naked while you watch your PPC income


Anyone check the short status ?

Originally posted by bidawinner
And now they are a 150 Million dollar business and growing

Marchex is doing fine.. they continue to expand ..that expansion more than anything else is where the expenses are coming from ..(yep ..you actually have to PAY for those new assets )

They dont want to be a 20 million dollar micro company..

in fact there latest aqustion is more than $20 million.. they are paying 28 million for VoiceStar..

Fast growth companies are rarely "immediately profitable" .. it's all about becoming the big player ..

The "domains" are just a base to build on..

look ..

"Marchex has more than 200,000 Web sites that contain more than one billion pages of targeted local content to help local consumers make better decisions. These Web sites generate tens of millions of visitors for our network and delivered more than 40 million look-ups and referrals in the second quarter. "


This isnt about being able to run around the beach naked while you watch your PPC income


Anyone check the short status ?

Run around the beach naked...hmm...sounds good to me!

At the risk of sounding pedantic, the $20m of Ult Search was profit, not turnover (the $150m you mention).
Turnover is vanity, profit is sanity.

I've never been a corporate animal - too laid back. I understand what they are doing, just never really got the 'why'.

And now they are a 150 Million dollar business and growing

they have bought many companies in addition to ult so you'd really need to look at the earnings from the domains they bought in isolation to make any kind of comparison to see if they have managed to improve on the old ult earnings.

Originally posted by bidawinner


Marchex is doing fine.. they continue to expand ..that expansion more than anything else is where the expenses are coming from ..(yep ..you actually have to PAY for those new assets )

Under what objective measure are the "doing fine"?,

-They made 300k in the last quarter and that was actually an improvement
-The share price has fallen by half since they acquired ultsearch around 3 years ago.
-There is a suggestion that some/a lot? of the revenue growth has come arbitrage.
-The domains may well be worth more than the entire market cap, ie the management is likely adding negative value.

Originally posted by snoopy


-They made 300k in the last quarter and that was actually an improvement

From what I recall (correct me if I am wrong), I think this was income before amortization. Take the amortization into account and they are probably sitting on large accounting losses. They are promoting income before amortization (similar to EBITDA - operating cash flow).

They could argue that this is more representative of their asset base since domains / other intangible asset amortization shouldn´t be taken into account as their value is increasing however the bottom line is that investors are looking for a return / yield and even on a cash flow basis, yielding $300k / quarter for an investment of $370 million or so of market capitalization is an extremely thin yield (less than 1%).

The bottom line is that if the yield isn´t there, the only guidance is the asset / domain value which they didn´t provide any information on in the conference call.

Originally posted by jfses
They have 283 full-time employees.

http://finance.yahoo.com/q/pr?s=MCHX

Those salaries could very well suprass the 1 Million USD per month.