Exhibit 99.1
MARCHEX, INC. AND SUBSIDIARIES
Reconciliation of GAAP EPS to Adjusted Non-GAAP EPS
(unaudited)
Quarter March 31, | Quarter March 31, | |||||||
Net income (loss) per share applicable to common stockholders - diluted (GAAP EPS) | $ | (0.11 | ) | $ | 0.01 | |||
Shares used to calculate diluted net income (loss) per share applicable to common stockholders | 13,446,542 | 32,920,472 | ||||||
Net income (loss) applicable to common stockholders | $ | (1,426,340 | ) | $ | 388,409 | |||
Acquisition-related retention consideration | 132,936 | — | ||||||
Facility relocation | 230,459 | — | ||||||
Stock-based compensation | 360,764 | 146,538 | ||||||
Amortization of acquired intangible assets | 1,034,868 | 3,083,157 | ||||||
Interest income and other, net | (69,585 | ) | (270,523 | ) | ||||
Impact of Income taxes | (289,229 | ) | (1,128,637 | ) | ||||
Convertible preferred stock dividends | 348,993 | |||||||
Accretion to redemption value of redeemable convertible preferred stock | 402,679 | — | ||||||
Adjusted Non-GAAP Net income (loss) applicable to common stockholders | $ | 376,552 | $ | 2,567,937 | ||||
Shares used to calculate Adjusted Non-GAAP EPS | 21,313,950 | 34,092,808 | ||||||
Adjusted Non-GAAP EPS | $ | 0.02 | $ | 0.08 | ||||
Shares used to calculate diluted net income (loss) per share applicable to common stockholders | 13,446,542 | 32,920,472 | ||||||
Weighted average stock options and warrants and common shares subject to repurchase or cancellation | 1,143,345 | — | ||||||
Convertible preferred for adjusted Non-GAAP EPS | 6,724,063 | 1,172,336 | ||||||
Shares used to calculate Adjusted Non-GAAP EPS | 21,313,950 | 34,092,808 |
The above table excludes convertible preferred stock dividends, accretion to redemption value of redeemable convertible preferred stock and assumes conversion of the convertible preferred stock into Class B common stock in determining Adjusted Non-GAAP EPS. In the absence of such treatment, Adjusted Non-GAAP EPS would be $0.07 per share for the quarter ended March 31, 2005 and a net loss of $(0.01) per share for the same period in 2004.