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marchex_logo_4CMarchex has laid off 10 percent of its staff after a disappointing second quarter.

The Seattle-area advertising analytics company confirmed Friday that it laid off 40 people this week across multiple departments. Marchex employed 375 people before the job cuts. The Puget Sound Business Journal first reported the layoffs.

Here’s a statement provided by the company, attributed to Marchex CEO Peter Christothoulou:

“This was a painful decision that required us to reduce our workforce to bring our expenses in line with revenue. Despite these challenges, we are focused on executing on our opportunity and leading this market. I have every ounce of confidence we are taking the right steps to get there.”

Marchex, which went public in 2004, saw its stock drop more than 17 percent last week after missing estimates for the company’s second quarter earnings report.

Marchex CEO Peter Christothoulou.
Marchex CEO Peter Christothoulou.

Christothoulou, who took over after longtime leader Russell Horowitz stepped down last year, told investors last week that the company was disappointed with its most recent financial results. Christothoulou said a “small number of large clients made adjustments to their marketing budgets, changes which unfortunately reduced that they will likely spend our call marketplace this year.”

“These changes affected us in Q2 and also limit the growth we expected in the second half of the year,” he said on the company’s earnings call. “This is the principal reason for our revised 2016 outlook. We have historically relied on a small number of large multi-million dollar clients to generate a significant portion of our revenue. As a result, we are susceptible to marketing budget fluctuations from a handful of clients, which is what impacted our call marketplace.”

Shares of Marchex are down 30 percent in the past year and were trading at $2.88 as of Friday afternoon. The stock fell sharply in 2014 after a key deal with Allstate fell apart.

Marchex, which operates search, display, and call advertising analytics, is now valued at $128 million.

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