Marchex, Inc. Loses Third-Largest Customer, Cuts FY14 Outlook


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Marchex, Inc. (NASDAQ: MCHX) shares plummeted more than 44 percent Thursday after the sales call products and services company dropped its business with The Allstate Corporation (NYSE: ALL) and cut its 2014 outlook.

Allstate provided 13 percent of Marchex' 2013 revenue and was its third-largest customer.

ENTER TO WIN $500 IN STOCK OR CRYPTO

Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!

Marchex said Allstate sought to switch its business with Marchex to a fixed-fee basis from payments made for each call.

"It's not in our best long-term interest to to work under such an arrangement," Marchex said.

The company forecast 2014 call-driven revenue of $170 million to $172 million, down from its expectation last month of $178 million.

Call-driven revenue accounted for 89 percent of the company's 2013 $155.6 million top line.

But the company cited "progress" with other large customers and boosted its third-quarter forecast of call-driven revenue to between $47.5 million and $48.5 million, from $46 million last month.

"Beyond Allstate, we continue to experience growth in our customer base," Chief Executive Russell Horowitz said.

Marchex traded recently at $4.17, down 44.4 percent.


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Posted In: NewsGuidanceContractsMovers