Exhibit 99.1

Marchex Announces Third Quarter 2016 Results

SEATTLE – November 2, 2016-- Marchex, Inc. (NASDAQ:MCHX), a leading mobile advertising analytics company, today announced its financial results for the third quarter ended September 30, 2016.

Q3 2016 Financial Highlights

• GAAP revenue was $30.7 million for the third quarter of 2016, compared to $36.9 million for the third quarter of 2015.

• GAAP net loss from continuing operations was $5.9 million for the third quarter of 2016 or $0.14 per diluted share. For the third quarter of 2015, GAAP net loss from continuing operations was $191,000 or $0.00 per diluted share.

	Q3 2015	Q3 2016
GAAP Revenue	$36.9 million	$30.7 million
Call-Driven Revenue1	$36.1 million	$30.7 million
Non-GAAP Results2:
Enterprise Revenue3	$26.0 million	$24.0 million
Call-Driven Adjusted OIBA	$2.2 million	($3.7) million
Call-Driven Adjusted EBITDA	$3.1 million	($2.9) million
Cash Balance	$109 million	$105 million

• Adjusted non-GAAP earnings (loss) per share² from continuing operations for the third quarter of 2016 was ($0.06), compared to $0.04 for the third quarter of 2015.  

• During the third quarter of 2016, YP contributed $6.7 million in Call-Driven Revenue, compared to $10.1 million in the third quarter 2015.

¹ Call-Driven revenue includes revenue generated from our contracts with YP.

² Reconciliations of non-GAAP measures are included in the financial tables attached to this press release and we encourage investors to examine the reconciling adjustments between the GAAP and non-GAAP measures.

³ Enterprise Revenue represents Call-Driven revenue excluding revenue generated from our contracts with YP.

Strategic Priorities Update

• Grow New and Existing Enterprise Client Relationships. We are making progress with customer initiatives, including new clients and our pipeline.  We added 25 new clients year to date, including in the third quarter. These new relationships add to our customer footprint, which includes 17 of the top Fortune 500 global brands.  

• Accelerate Product Innovation. Marchex Display Analytics reached another milestone and is now available through select strategic partnerships and we expect to launch to general availability in the fourth quarter. Marchex Display Analytics measures the effectiveness of display and other digital media in driving call conversions and is expanding its ability to measure the consumer journey and interplay between search and display.  With the availability of Marchex Display Analytics, the Marchex Analytics platform gets closer to its mission to measure offline sales, and audience and consumer intent from digital advertisements across every channel and every device. Through our expanding integration footprint, our Marchex Display Analytics technology has access to more than 90% of impressions available in the U.S.  

• Expand Global Strategic Partnerships. We have a new integration with DoubleClick Campaign Manager’s newly released Conversions API. With this integration, marketers can securely upload Marchex Display Analytics data to DoubleClick and attribute inbound phone calls to digital and mobile advertising programs, providing a more complete view of media performance. DoubleClick customers can now take advantage of the rich phone call data that Marchex provides to better understand their customers and campaigns.

“Marchex has a unique position in the mobile advertising analytics market by virtue of our customer base, technology and products and we expect to make progress toward improving our financial performance and returning Marchex to profitability as soon as possible,” said Michael Arends, Chief Financial Officer.  

Business Outlook

The following forward-looking statements reflect Marchex's expectations as of November 2, 2016.

Total Call-Driven financial guidance for the Fourth Quarter ending December 31, 2016

Call-Driven Revenue1	$26 million or more
Call-Driven Adjusted OIBA2	a loss of ($3) million to a loss of ($4) million
Call-Driven Adjusted EBITDA2	a loss of ($2) million to a loss of ($3) million

Total Call-Driven financial guidance for the Fiscal Year ending December 31, 2016

Call-Driven Revenue1	$127 million or more
Call-Driven Adjusted OIBA2	a loss of ($10) million to a loss of ($11) million
Call-Driven Adjusted EBITDA2	a loss of ($6.5) million to a loss of ($7.5) million

Conference Call and Webcast Information

Management will hold a conference call, starting at 5:00 p.m. ET on Wednesday, November 2, 2016 to discuss its third quarter ended September 30, 2016 financial results and other company updates. Access to the live webcast of the conference call will be available online from the Investors section of Marchex’s website at www.marchex.com.  An archived version of the webcast will also be available at the same location, beginning two hours after completion of the call.

About Marchex

Marchex is a mobile advertising analytics company that connects online behavior to real-world, offline actions.  By linking critical touchpoints in the customer journey, Marchex’s products enable a 360-degree view of marketing effectiveness.  Brands and agencies utilize Marchex’s products to transform business performance. 

Please visit www.marchex.com, www.marchex.com/blog/ or @marchex on Twitter (Twitter.com/Marchex), where Marchex discloses material information from time to time about the Company, its financial information, and its business.

Forward-Looking Statements:

This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included in this press release regarding our strategy, future operations, future financial position, future revenues, other financial guidance, acquisitions, dispositions, projected costs, prospects, plans and objectives of management are forward-looking statements. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements we make. There are a number of important factors that could cause Marchex's actual results to differ materially from those indicated by such forward-looking statements which are described in the "Risk Factors" section of our most recent periodic report and registration statement filed with the SEC. All of the information provided in this release is as of November 2, 2016 and Marchex undertakes no duty to update the information provided herein.

Non-GAAP Financial Information:

To supplement Marchex's consolidated financial statements presented in accordance with GAAP and to provide clarity internally and externally, Marchex uses certain non-GAAP measures of financial performance and liquidity, including OIBA, Adjusted OIBA, Adjusted EBITDA, Adjusted non-GAAP earnings (loss) per share and Call-Driven and Archeo and Other Adjusted OIBA and EBITDA. Marchex also provides Enterprise Revenue, which represents Call-Driven revenue excluding revenue generated from our contracts with Yellowpages.com LLC (“YP”).  

OIBA represents income (loss) from operations plus stock-based compensation expense. This measure, among other things, is one of the primary metrics by which Marchex evaluates the performance of its business. Additionally, Marchex's management uses Adjusted OIBA, which excludes acquisition and disposition related costs and impairment of goodwill, as these items are not indicative of Marchex’s recurring core operating results. Adjusted OIBA is the basis on which Marchex's internal budgets are based and by which Marchex's management is currently evaluated. Marchex believes these measures are useful to investors because they represent Marchex's consolidated operating results, taking into

account depreciation and other intangible amortization, which Marchex believes is an ongoing cost of doing business, but excluding the effects of certain other expenses such as stock-based compensation, acquisition and disposition related costs, and impairment of goodwill. Adjusted EBITDA represents income before interest, income taxes, depreciation, amortization, stock compensation expense, acquisition and disposition related costs, and impairment of goodwill. Marchex believes that Adjusted EBITDA is another alternative measure of liquidity to GAAP net cash provided by (used in) operating activities that provides meaningful supplemental information regarding liquidity and is used by Marchex's management to measure its ability to fund operations and its financing obligations.

Call-Driven Adjusted OIBA and EBITDA and Archeo and Other Adjusted OIBA and EBITDA include the above descriptions of Adjusted OIBA and EBITDA for the Call-Driven and Archeo segments. The Call-Driven Adjusted OIBA and EBITDA  includes all Marchex general corporate overhead costs.  The Archeo and Other Adjusted OIBA and EBITDA in 2016 primarily includes transition activities provided to the buyer of the Archeo assets which are not material. Financial analysts and investors may use Adjusted OIBA and EBITDA and Enterprise Revenue to help with comparative financial evaluation to make informed investment decisions. Adjusted non-GAAP earnings (loss) per sharerepresents Adjusted non-GAAP net income (loss) applicable to common stockholders divided by GAAP diluted shares outstanding. Adjusted non-GAAP net income (loss) applicable to common stockholders generally captures those items on the statement of operations that have been, or ultimately will be, settled in cash exclusive of certain items that are not indicative of Marchex’s recurring core operating results and represents net income (loss) applicable to common stockholders plus the net of tax effects of: (1) stock-based compensation expense, (2) acquisition and disposition related costs, (3) interest and other income (expense), (4) discontinued operations, net of tax,  (5) dividends paid to participating securities and (6) impairment of goodwill.  Financial analysts and investors may use Adjusted non-GAAP earnings (loss) per share to analyze Marchex's financial performance since these groups have historically used EPS related measures, along with other measures, to estimate the value of a company, to make informed investment decisions, and to evaluate a company's operating performance compared to that of other companies in its industry.

Marchex's management believes that investors should have access to, and Marchex is obligated to provide, the same set of tools that management uses in analyzing the company's results. These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP, and should not be considered in isolation, as a substitute for, or superior to, GAAP results. Marchex’s non-GAAP financial measures may be defined differently from time to time and may be defined differently than similar titled terms used by other companies, and accordingly, care should be exercised in understanding how Marchex defines its non-GAAP financial measures in this release. Marchex endeavors to compensate for the limitations of the non-GAAP measures presented by providing the comparable GAAP measure with equal or greater prominence, GAAP financial statements, and detailed descriptions of the reconciling items and adjustments, including quantifying such items, to derive the non-GAAP measure.

For further information, contact:

Trevor Caldwell
Marchex Investor Relations

Telephone: 206.331.3600
Email: ir(at)marchex.com

Or

MEDIA INQUIRIES

Marchex Corporate Communications

Telephone: 206.331.3434

Email: pr(at)marchex.com

MARCHEX, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)

(unaudited)

	Three months ended						Nine Months Ended
	September 30,						September 30,
	2015			2016			2015			2016
Revenue	$	36,852		$	30,749		$	108,113		$	101,146
Expenses:
Service costs (1)		20,003			18,505			59,166			60,964
Sales and marketing (1)		4,266			5,562			11,969			16,733
Product development (1)		7,769			6,832			23,608			21,859
General and administrative (1)		4,721			5,320			14,925			15,815
Acquisition and disposition related costs		81			354			199			662
Total operating expenses		36,840			36,573			109,867			116,033
Impairment of goodwill		—			—			—			(63,305	)
Income (loss) from operations		12			(5,824	)		(1,754	)		(78,192	)
Interest expense and other, net		(12	)		(15	)		(52	)		(90	)
Loss from continuing operations before provision for income taxes		0			(5,839	)		(1,806	)		(78,282	)
Income tax expense		191			15			11			40
Net loss from continuing operations		(191	)		(5,854	)		(1,817	)		(78,322	)
Discontinued operations:
Income from discontinued operations, net of tax		37			—			5,084			—
Gain on sale from discontinued operations, net of tax		163			—			22,195			—
Discontinued operations, net of tax		200			—			27,279			—
Net income (loss)		9			(5,854	)		25,462			(78,322	)
Dividends paid to participating securities		—			—			(37	)		—
Net income (loss) applicable to common stockholders	$	9		$	(5,854	)	$	25,425		$	(78,322	)
Basic and diluted net income (loss) per Class A and Class    B share applicable to common stockholders:
Continuing operations	$	(0.00	)	$	(0.14	)	$	(0.04	)	$	(1.88	)
Discontinued operations, net of tax	$	0.00		$	—		$	0.66		$	—
Basic and diluted net income (loss) per Class A and Class    B share applicable to common stockholders	$	0.00		$	(0.14	)	$	0.62		$	(1.88	)
Dividends paid per share	$	—		$	—		$	0.04		$	—
Shares used to calculate basic net income (loss) per    share applicable to common stockholders
Class A		5,233			5,233			5,233			5,233
Class B		36,120			36,639			35,980			36,372
Shares used to calculate diluted net income (loss) per    share applicable to common stockholders
Class A		5,233			5,233			5,233			5,233
Class B		41,353			41,872			41,213			41,605
(1) Includes stock-based compensation allocated as follows:
Service costs	$	273		$	160		$	1,046		$	565
Sales and marketing		339			353			893			1,321
Product development		620			206			1,843			1,367
General and administrative		1,119			1,060			4,027			3,993
Total	$	2,351		$	1,779		$	7,809		$	7,246

MARCHEX, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

	December 31,			September 30,
Assets	2015			2016
Current assets:
Cash and cash equivalents	$	109,155		$	105,275
Accounts receivable, net		24,621			21,579
Prepaid expenses and other current assets		1,784			1,995
Refundable taxes		127			117
Total current assets		135,687			128,966
Property and equipment, net		5,778			3,913
Intangibles and other assets, net		222			220
Goodwill		63,305			—
Total Assets	$	204,992		$	133,099
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	9,460		$	7,960
Accrued expenses and other current liabilities		6,712			8,300
Deferred revenue		692			362
Total current liabilities		16,864			16,622
Other non-current liabilities		662			266
Total Liabilities		17,526			16,888
Class A common stock		55			55
Class B common stock		368			381
Treasury stock		(238	)		(2	)
Additional paid-in capital		350,799			357,617
Accumulated deficit		(163,518	)		(241,840	)
Total Stockholders' Equity		187,466			116,211
Total Liabilities and Stockholders' Equity	$	204,992		$	133,099

MARCHEX, INC. AND SUBSIDIARIES

(in thousands)

(unaudited)

Reconciliation of GAAP Income (Loss) from Operations to Operating Income (Loss) Before Amortization (OIBA)

and Adjusted Operating Income (Loss) Before Amortization (Adjusted OIBA)

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2015		2016			2015			2016
Income (loss) from operations	$	12	$	(5,824	)	$	(1,754	)	$	(78,192	)
Stock-based compensation		2,351		1,779			7,809			7,246
Operating income (loss) before amortization (OIBA)		2,363		(4,045	)		6,055			(70,946	)
Acquisition and disposition related costs		81		354			199			662
Impairment of goodwill		—		—			—			63,305
Adjusted operating income (loss) before amortization    (Adjusted OIBA) - Consolidated	$	2,444	$	(3,691	)	$	6,254		$	(6,979	)
Less:  Archeo and Other Adjusted OIBA1		267		18			45			45
Call-Driven Adjusted OIBA1	$	2,177	$	(3,709	)	$	6,209		$	(7,024	)

Reconciliation from Net Cash provided by (used in) Operating Activities to Adjusted EBITDA

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2015			2016			2015			2016
Net cash provided by (used in) operating activities	$	7,563		$	(220	)	$	12,000		$	(2,873	)
Changes in asset and liabilities		(4,299	)		(3,085	)		1,813			(2,438	)
Income tax expense		191			15			11			40
Acquisition and disposition related costs		81			354			199			662
Interest expense and other, net		12			12			52			87
Income from discontinued operations, net of tax		(37	)		—			(5,102	)		—
Tax effect on gain on sale of discontinued operations		(163	)		—			—			—
Adjusted EBITDA - Consolidated	$	3,348		$	(2,924	)	$	8,973		$	(4,522	)
Less:  Archeo and Other Adjusted EBITDA1		267			18			45			45
Call-Driven Adjusted EBITDA1	$	3,081		$	(2,942	)	$	8,928		$	(4,567	)
Net cash provided by (used in) investing activities	$	(1,260	)	$	(235	)	$	21,580		$	(829	)
Net cash used in financing activities	$	(1,798	)	$	(47	)	$	(4,676	)	$	(178	)

¹ The financial results have been derived from the condensed consolidated financial statements. In April 2015, Marchex divested certain Archeo domain name and related assets and the operating results of these divested assets are included in discontinued operations, net of tax, in the condensed consolidated financial statements. In December 2015, Marchex sold the remaining Archeo assets and its operating results are included in continuing operations for 2015. Unless otherwise indicated, information presented in these financial tables relates only to Marchex's continuing operations. In 2016, Other operating results related primarily to transition activities provided to the buyer of the Archeo assets and were not significant.

MARCHEX, INC. AND SUBSIDIARIES

Reconciliation of GAAP loss per share to Adjusted Non-GAAP earnings (loss) per share

(in thousands, except per share amounts)

(unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2015			2016			2015			2016
Adjusted Non-GAAP earnings (loss) per share from    continuing operations	$	0.04		$	(0.06	)	$	0.10		$	(0.11	)
Net loss from continuing operations applicable to    common stockholders - diluted (GAAP loss per share)	$	(0.00	)	$	(0.14	)	$	(0.04	)	$	(1.88	)
Shares used to calculate diluted net loss from continuing    operations per share applicable to common stockholders		41,353			41,872			41,213			41,605
Net income (loss) applicable to common stockholders	$	9		$	(5,854	)	$	25,425		$	(78,322	)
Stock-based compensation		2,351			1,779			7,809			7,246
Acquisition and disposition related costs		81			354			199			662
Impairment of goodwill		—			—			—			63,305
Interest expense and other, net		12			15			52			90
Dividends paid to participating securities		—			—			37			—
Discontinued operations, net of tax		(200	)		—			(27,279	)		—
Estimated impact of income taxes		(662	)		1,248			(2,182	)		2,342
Adjusted Non-GAAP net income (loss) from    continuing operations	$	1,591		$	(2,458	)	$	4,061		$	(4,677	)
Adjusted Non-GAAP earnings (loss) per share from    continuing operations	$	0.04		$	(0.06	)	$	0.10		$	(0.11	)
Shares used to calculate diluted net income (loss) from    continuing operations per share applicable to common    stockholders (GAAP)		41,353			41,872			41,213			41,605
Weighted average stock options and common shares    subject to purchase or cancellation (if applicable)		394			—			373			—
Diluted shares used to calculate Adjusted Non-GAAP earnings    (loss) per share 1		41,747			41,872			41,586			41,605

¹ For the purpose of computing the number of diluted shares for Adjusted Non-GAAP earnings (loss) per share, Marchex uses the accounting guidance that would be applicable for computing the number of diluted shares for GAAP earnings (loss) per share.

MARCHEX, INC. AND SUBSIDIARIES

Financial Summary Information

(in thousands)

(unaudited)

NON-GAAP MEASURES

CONSOLIDATED1	Q315		Q316			YTD Q315		YTD Q316
GAAP Revenue	$	36,852	$	30,749		$	108,113	$	101,146
Adjusted OIBA	$	2,444	$	(3,691	)	$	6,254	$	(6,979	)
Adjusted EBITDA	$	3,348	$	(2,924	)	$	8,973	$	(4,522	)
CALL-DRIVEN	Q315		Q316			YTD Q315		YTD Q316
GAAP Revenue	$	36,135	$	30,749		$	105,621	$	101,125
Adjusted OIBA	$	2,177	$	(3,709	)	$	6,209	$	(7,024	)
Adjusted EBITDA	$	3,081	$	(2,942	)	$	8,928	$	(4,567	)
ENTERPRISE REVENUE2	Q315		Q316			YTD Q315		YTD Q316
Call-Driven GAAP Revenue	$	36,135	$	30,749		$	105,621	$	101,125
Less:  YP Revenue	$	10,128	$	6,747		$	31,247	$	23,357
Enterprise Revenue	$	26,007	$	24,002		$	74,374	$	77,768

¹ In April 2015, Marchex divested certain Archeo domain name and related assets and the operating results of these divested assets are included in discontinued operations, net of tax, in the condensed consolidated financial statements. In December 2015, Marchex sold the remaining Archeo assets and its operating results are included in continuing operations for 2015. In 2016, there were Other operating activities that related primarily to transition activities provided to the buyer of the Archeo assets and were not significant. Unless otherwise indicated, information presented in these financial tables relates only to Marchex's continuing operations.  

² Enterprise Revenue, also referred to as “Call-Driven Revenue excluding YP”, represents Call-Driven revenue excluding revenue generated from our contracts with YP.