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

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

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

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.

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