MARCHEX INC Earnings Per Share Disclosure
Note 7: Net Loss Per Share
The Company computes net loss per share of Class A and Class B common stock using the two class method. Under the provisions of the two class method, basic net loss per share is computed by dividing net loss applicable to common stockholders by the weighted average number of common shares outstanding during the year. Diluted net loss per share is computed by dividing net loss applicable to common stockholders by the weighted average number of common and dilutive common equivalent shares outstanding during the period. The computation of the diluted net loss per share of Class B common stock assumes the conversion of Class A common stock to Class B common stock, while the diluted net loss per share of Class A common stock does not assume the conversion of those shares.
The following table presents the computation of basic net loss per share applicable to common stockholders for the periods ended:
|
|
Year Ended December 31, |
|
|||||||||||||
|
|
2024 |
|
|
2023 |
|
||||||||||
(In Thousands, Except Per Share Amounts) |
|
Class A |
|
|
Class B |
|
|
Class A |
|
|
Class B |
|
||||
Basic net loss per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Numerator: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net loss applicable to common stockholders |
|
$ |
(534 |
) |
|
$ |
(4,413 |
) |
|
$ |
(1,084 |
) |
|
$ |
(8,826 |
) |
Denominator: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average number of shares outstanding - basic |
|
|
4,661 |
|
|
|
38,498 |
|
|
|
4,661 |
|
|
|
37,960 |
|
Basic net loss per share applicable to common stockholders |
|
$ |
(0.11 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.23 |
) |
|
$ |
(0.23 |
) |
The following table presents the computation of diluted net loss per share for the periods ended:
|
|
Year Ended December 31, |
|
|||||||||||||
|
|
2024 |
|
|
2023 |
|
||||||||||
(In Thousands, Except Per Share Amounts) |
|
Class A |
|
|
Class B |
|
|
Class A |
|
|
Class B |
|
||||
Diluted net loss per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Numerator: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net loss applicable to common stockholders |
|
$ |
(534 |
) |
|
$ |
(4,413 |
) |
|
$ |
(1,084 |
) |
|
$ |
(8,826 |
) |
Reallocation of net loss for Class A to Class B shares |
|
|
— |
|
|
|
(534 |
) |
|
|
— |
|
|
|
(1,084 |
) |
Diluted net loss applicable to common stockholders: |
|
$ |
(534 |
) |
|
$ |
(4,947 |
) |
|
$ |
(1,084 |
) |
|
$ |
(9,910 |
) |
Denominator: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average number of shares outstanding - basic |
|
|
4,661 |
|
|
|
38,498 |
|
|
|
4,661 |
|
|
|
37,960 |
|
Conversion of Class A to B common shares outstanding |
|
|
— |
|
|
|
4,661 |
|
|
|
— |
|
|
|
4,661 |
|
Weighted average number of shares outstanding - diluted |
|
|
4,661 |
|
|
|
43,159 |
|
|
|
4,661 |
|
|
|
42,621 |
|
Diluted net loss per share applicable to common stockholders |
|
$ |
(0.11 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.23 |
) |
|
$ |
(0.23 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Anti-dilutive securities |
|
|
— |
|
|
|
5,951 |
|
|
|
— |
|
|
|
4,689 |
|
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.