Calls & Clicks: Highlights from ReachLocal, Marchex & Yelp Q3 Earnings

There were a slew of earnings reports released today. Among them LinkedIn, Marchex, ReachLocal and Yelp. Below are three of those releases and some highlights:

ReachLocal (highlights)

  • $118.9 million in Q3 revenue
  • 857 salespeople
  • 22,100 advertisers (vs. 18,700 a year ago)
  • International operations provided greatest growth; direct sales the most revenue
  • Company expects FY2012 revenues “in the range of $453.1 million to $455.1 million”

Yelp (highlights)

  • Quarterly net revenue of $36.4 million
  • Revenue for nine months: $96.4 million
  • 84 million monthly unique users (in 96 markets)
  • 35,500 “active” local business accounts
  • 33 million reviews
  • 8 million monthly active smartphone app users (with more installs)
  • 45 percent of searches on Yelp come from its mobile apps

Yelp said that it expected full-year 2012 revenue to “be in the range of $136.4 million – $136.9 million, representing growth of approximately 64% compared to the full year of 2011.”

Marchex (highlights)

  • Revenue was $34.8 million for the third quarter of 2012 vs. $39.9 million for the same period in 2011
  • Call-Driven Revenues: $29.1 million (up $1.8 million, or 7%, from Q2)
  • Non-Call-Driven Revenues: Q3 evenue was $5.7 million, down $1.0 million from Q2 (Non-Call-products include Marchex’s domain and directory assets, pay-per-click and reputation management products.)

Partly because they’re a drag on earnings and the growing PPCall ad network, the non-call businesses are being spun out into another public company called Archeo, which sounds a little like a new menu item at Taco Bell.

I spoke to Marchex yesterday about the transition and got some interesting data about PPCall (mostly mobile) conversion rates, which I wrote up at Marketing Land:

Marchex sources calls from multiple channels though roughly two-thirds of its calls come from mobile. Marchex told me that it can take “as many as 250,000″ mobile impressions to generate a quality phone call — meaning one that is intended. The company maintains that a huge percentage of calls initiated from mobile display ads are inadvertent (“fat finger problem”).

Marchex uses call analytics to determine which calls are qualified and should be charged to advertisers. Among those that qualify as “good calls,” the company says that it sees “conversion rates north of 25 percent.” That means of the billable calls about one-fourth on average turn into sales. I asked for some additional examples and the company provided the following vertical conversion data:

  • Self-storage — 15 to 20 percent
  • Home services — 35 to 40 percent
  • Education — 25 to 35 percent
  • Insurance — 8 to 15 percent

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