Marchex, Inc.

Good afternoon. Thank you for attending the Marchex fourth quarter 2023 conference call. My name is Victoria and I'll be your moderator today. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. I would now like to pass the conference over to your host, Trevor Caldwell, Senior Vice President, Strategic Initiatives and Investor Relations with Marchex. Thank you. You may proceed, Trevor.

Thank you, Victoria. Good afternoon, everyone, and welcome to MarchX's Business Update and Fourth Quarter 2023 Conference Call. Joining us today are Edwin Miller, our CEO, and Holly Aglio, our Chief Financial Officer. Before we get started, I'd 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. Reconciliation of GAAP to non-GAAP measures is included in today's earnings press release. There are any special releases available on the investor relations section of our website. And at this time, I'm going to turn the call over to Edwin.

Thank you, Trevor, and good afternoon, everyone. And thank you for joining us today. I've been on the job for just over a year, and I'd like to begin by telling you I am as excited as ever about March X. From the multitude of conversations I've had with our existing customer base, to the strides we've made in leveraging the power of AI, I see a tremendous opportunity for MarchX to build a nine-figure business. Over the past year, we've taken significant steps toward achieving that outcome. MarchX sits on a goldmine of first-party vertical data. We have over one billion conversational minutes of data that refreshes every day. In the world of generative AI, having access to this type of first-party data is foundational to delivering unique analytics and insights across valuable markets. This is key for our current and future success. It allows us to move from diagnostic and descriptive analytics to predictive analytics, which in turn paves the path to delivering prescriptive analytics, which is our ultimate goal. Using all that AI has to offer, we see MarchX driving the future of conversational intelligence in the most lucrative vertical markets. This includes our current verticals of focus, which are auto, auto services, home services, and healthcare. To foster growth, MarchX needs to solve real-world problems for businesses by delivering industry-defining insights and AI signals that can evolve in real time with robust data while adopting large language models company-wide to ingrain an innovative mindset we can take to our clients. By working to become the trusted source for proprietary predictive insights in our vertical markets, we can empower Fortune 500 companies to thrive in rapidly evolving markets. Each of these vertical markets represents substantial opportunity for market checks. and we are executing to unlock them. Over the past year, we've moved quickly to concentrate our resources on our core vertical markets while returning the company to a cash-generating business with increasing gross margins. There is much more to do to achieve the threshold of our growth ambitions, but I am proud of the team for its considerable commitment and effort over the last year and moving us well down this path. We have several key initiatives planned for the year ahead. First, we are focused on moving to OneStack, our new cloud-based infrastructure. Our product platforms and data will be united across all verticals, providing MarchX the ability to unleash the power of generative AI as we transition resources from infrastructure to data science and AI model development. In addition, It will enhance our ability to integrate broadly within our vertical market ecosystems through new API capabilities. Having our data in one place and one architecture will enable MarchX to leverage the power of data across all vertical markets, leveraging generative AI models. This will also reduce our long-term infrastructure costs, and just as importantly, help accelerate our pace of innovation and customer adoption. We also anticipate the completion of single sign-on and our single interface by Q3 of this year. Uniting our products within one interface will allow us to sell more effectively, accelerate adoption of multiple products, and improve our ability to onboard new customers more quickly. These initiatives are significant undertakings, and we expect to see key progress achieved throughout the year. The takeaway is that we are on track to capitalize on our commended state asset in new and differentiated ways that will drive growth this year and beyond. Throughout the year, we will be launching new products that deliver high impact solutions for our expanding base of Fortune 500 customers. These solutions will empower our clients to unlock new insights and drive operational excellence in their businesses. Consider our most recent product award, From the Big Intelligence Group, naming Spotlight for Automotive Product of the Year. MarchX Spotlight for Automotive won this award because it empowers OEMs, brands, and dealers to make informed, data-driven decisions that drive positive business results, leading to increased revenue and improved customer satisfaction. We added hundreds of dealers last year, and we'll add many more this year. This is an illustrative and repeatable example of how Marchix can win expanding market share by working with vertical market leaders. We are a differentiated player because of our wealth of vertical data and expertise. Today, we work with 22 brands within the auto vertical. With a significant eight-figure business, we believe that our product roadmap will enable us to grow our business in the auto vertical meaningfully over time. Our product plans will open even more opportunities to penetrate that existing base of customers and win new relationships this year. Our goal is to replicate that success and scale in home services, healthcare, and auto services. These verticals share very similar business problems to the auto vertical. This is our roadmap to accelerating growth and building a larger AI and analytics business. We are seeing strong interest from the release of our first AI features, cost summaries and sentiment. With dozens of current pilots, there is an early demand for these initial AI features, which will open the door to wider adoption by our vertical market customers. We believe that our current customer expansion engagements, coupled with our new and developing customer pipeline and product plans, have established a roadmap for an increasing and accelerating growth profile throughout 2024. In summary, I and we at 1 March X are focused on, one, booking more business and increasing speed and scale of new revenue. Two, positioning the business with current and future clients around prescriptive data analytics and AI capabilities. Three, our successful migration to one stack by Q3 of this year, as one stack is a catalyst for revenue acceleration with our vertical market growth strategy. Four, continuing to deliver on operations and technology efficiencies that we anticipate could expand our gross margins and increase free cash flow. With that, I'll hand the call to Holly to walk you through the financials.