Marin Software Incorporated (NASDAQ: MRIN) (“Marin”, “Marin
Software” or the “Company”), a leading provider of digital
marketing software for performance-driven advertisers and agencies,
today announced financial results for the second quarter ended June
30, 2024.
“Marin is transforming how performance media buyers manage their
spend allocation decisions. The tools we've built this quarter in
Ascend provide the transparency and control to deliver maximum ROI
across an expanding number of ad platforms,” said Chris Lien, Marin
Software’s CEO. “We're thrilled to continue delivering this
innovation, thanks in part to the renewal of our strategic
partnership agreement with Google.”
Second Quarter 2024 Product
Highlights:
- Integrated Reddit + X (fka Twitter): Now Marin’s users can
engage with Reddit’s 1 billion monthly active users and X’s 500
million monthly active users and capitalize on these massive
audiences with Marin’s AI-powered optimization and customizable
automation.
- Introduced in-grid Pacing charts: Our new in-grid pacing charts
provide a real-time snapshot of how campaigns are pacing against
their budgets, making it easier than ever for Marin users to ensure
they always meet budget requirements.
- Upgraded the Strategy settings side panel: Marin users can set
both spend and efficiency targets for their strategies with the new
Strategy side panel. Now they can set the requirements in the
system and Marin will make the necessary updates to their daily
budgets and bids.
- Added Listing Group support for Performance Max campaigns:
Marin users can create and edit listing groups across all Microsoft
Ad and Google Performance Max campaigns – functionality not
available in the publisher platforms.
- Added Amazon TV advertising and Spotlight Ads: Advertisers can
take advantage of Amazon’s large and highly engaged audience with
Sponsored TV and Spotlight ads.
- Introduced in-grid data grouping: Users can now select up to 3
levels of key metrics to group and roll up data in Marin’s grid
without the need for pivot tables or data filters in another
app.
- Enhanced grids with header text wrapping: Now column headers
will automatically wrap so users don’t lose important text, and
more columns can fit in view without scrolling.
- Launched a campaign management API: Marin users can integrate
all their ecosystems with one API without the need to set up and
maintain integrations with each publisher platform.
Second Quarter 2024 Notable Client
Achievements:
- EasyGo, an Australian pioneer in online gaming, leveraged
Marin’s powerful optimizations and automations to reduce their cost
per conversion by 40% and cost per click by 30% while increasing
their conversions by 41% with Apple Search Ads.
Second Quarter 2024 Financial
Updates:
- Net revenue totaled $4.0 million, a year-over-year decrease of
7% when compared to $4.4 million for the second quarter of
2023.
- GAAP loss from operations was ($2.1) million, resulting in a
GAAP operating margin of (52%), as compared to a GAAP loss from
operations of ($6.0) million and a GAAP operating margin of (137%)
for the second quarter of 2023.
- Non-GAAP loss from operations was ($1.7) million, resulting in
a non-GAAP operating margin of (41%), as compared to a non-GAAP
loss from operations of ($4.8) million and a non-GAAP operating
margin of (111%) for the second quarter of 2023.
- Cash and cash equivalents were $7.9 million as of June 30,
2024.
Recent Renewal of Strategic Partnership
Agreement with Google:
- In July 2024, we entered into a new three-year Search Ads
Innovation Agreement with Google that will commence on October 1,
2024, which is substantially similar to our current Revenue Share
Agreement with Google that is scheduled to expire on September 30,
2024, including the same minimum quarterly payments.
Reconciliations of GAAP to non-GAAP financial measures have been
provided in the financial statement tables included in this press
release. An explanation of these measures is also included below,
under the heading “Non-GAAP Financial Measures.”
Financial Outlook:
Marin is providing guidance for its third quarter of 2024 as
follows:
Forward-Looking
Guidance
In millions
Range of Estimate
From
To
Three Months Ending September 30,
2024
Revenue, net
$
4.0
$
4.2
Operating loss (Non-GAAP)
(2.1
)
(1.9
)
Non-GAAP loss from operations excludes the effects of
stock-based compensation expense, amortization of internally
developed software, impairment of long-lived assets, capitalization
of internally developed software, non-recurring costs associated
with restructurings, and certain professional fees that the Company
has incurred in responding to third-party subpoenas that the
Company has received related to governmental investigations of
Google and Meta.
Additionally, the Company does not reconcile its forward-looking
non-GAAP loss from operations, due to variability between revenue
and non-cash items such as stock-based compensation. The GAAP loss
from operations includes stock-based compensation expense, which is
affected by hiring and retention needs, as well as the future price
of Marin’s stock. As a result, a reconciliation of the
forward-looking non-GAAP financial measures to the corresponding
GAAP measures cannot be made without unreasonable effort.
Quarterly Results Conference
Call
Marin Software will host a conference call today at 2:00 PM
Pacific Time (5:00 PM Eastern Time) to review the Company’s
financial results for the quarter ended June 30, 2024, and its
outlook for the future. To access the call, please dial (800)
954-0684 in the United States or (212) 231-2929 internationally
with reference to conference ID 13742153. A live webcast of the
conference call will be accessible at
https://viavid.webcasts.com/starthere.jsp?ei=1639629&tp_key=e6b7822c04.
Following the completion of the call through 11:59 p.m. Eastern
Time on August 8, 2024, a recorded replay will be available on the
Company’s website at http://investor.marinsoftware.com/ and a
telephone replay will be available by dialing (844) 512-2921 in the
United States or (412) 317-6671 internationally with the recording
access code 13742153.
About Marin Software
Marin Software Incorporated’s (NASDAQ: MRIN) mission is to give
advertisers the power to drive higher efficiency and transparency
in their paid marketing programs that run on the world’s largest
publishers. Marin Software provides enterprise marketing software
for advertisers and agencies to integrate, align, and amplify their
digital advertising spend across the web and mobile devices. Marin
Software offers a unified SaaS advertising management platform for
search, social, and eCommerce advertising. The Company helps
digital marketers convert precise audiences, improve financial
performance, and make better decisions. Headquartered in San
Francisco with offices worldwide, Marin Software’s technology
powers marketing campaigns around the globe. For more information
about Marin Software, please visit www.marinsoftware.com.
Non-GAAP Financial
Measures
Marin uses certain non-GAAP financial measures in this release.
Marin uses these non-GAAP financial measures internally in
analyzing its financial results and believes they are useful to
investors, as a supplement to GAAP measures, in evaluating its
ongoing operational performance. Marin believes that the use of
these non-GAAP financial measures provides an additional tool for
investors to use in evaluating ongoing operating results and trends
and in comparing our financial results with other companies in our
industry, many of which present similar non-GAAP financial measures
to investors. Non-GAAP financial measures that Marin uses may
differ from measures that other companies may use.
Non-GAAP financial measures should not be considered in
isolation from, or as a substitute for, financial information
prepared in accordance with GAAP. A reconciliation of the non-GAAP
financial measures to their most directly comparable GAAP measures
has been provided in the financial statement tables included below
in this press release. Investors are encouraged to review the
reconciliation of these non-GAAP financial measures to their most
directly comparable GAAP financial measures.
Non-GAAP expenses, measures and net loss per share. Marin
defines non-GAAP sales and marketing, non-GAAP research and
development, non-GAAP general and administrative, non-GAAP gross
profit, non-GAAP operating loss and non-GAAP net loss as the
respective GAAP balances, adjusted for stock-based compensation
expense, amortization of internally developed software and
intangible assets, capitalization of internally developed software,
non-recurring costs associated with restructurings, and certain
professional fees that the Company has incurred in responding to
third-party subpoenas that the Company has received related to
governmental investigations of Google and Meta. Non-GAAP net loss
per share is calculated as non-GAAP net loss divided by the
weighted average shares outstanding.
Adjusted EBITDA. Marin defines Adjusted EBITDA as net loss,
adjusted for stock-based compensation expense, depreciation,
amortization of internally developed software and intangible
assets, capitalization of internally developed software, benefit
from or provision for income taxes, other income, net,
non-recurring costs associated with restructurings, and certain
professional fees that the Company has incurred in responding to
third-party subpoenas that the Company has received related to
governmental investigations of Google and Meta. These amounts are
often excluded by other companies to help investors understand the
operational performance of their business. The Company uses
Adjusted EBITDA as a measurement of its operating performance
because it assists in comparing the operating performance on a
consistent basis by removing the impact of certain non-cash and
non-operating items. Adjusted EBITDA reflects an additional way of
viewing aspects of the operations that Marin believes, when viewed
with the GAAP results and the accompanying reconciliations to
corresponding GAAP financial measures, provide a more complete
understanding of factors and trends affecting its business.
Forward-Looking
Statements
This press release contains forward-looking statements
including, among other things, statements regarding Marin’s
business, impact of investments in product and technology on future
operating results, the increasing complexity in marketing, progress
on product development efforts, product capabilities, advertiser
and customer behavior, and future financial results, including its
outlook for the third quarter of 2024. These forward-looking
statements are subject to the safe harbor provisions created by the
Private Securities Litigation Reform Act of 1995. Actual results
could differ materially from those projected in the forward-looking
statements as a result of certain risk factors, including but not
limited to, our ability to reduce our expenses or raise additional
capital to meet our obligations as a going concern; our ability to
successfully implement a restructuring plan that we commenced in
July 2023 and the expected costs and savings from the restructuring
plan; the amount of digital advertising spend managed by our
customers using our products; the extent of customer acceptance,
adoption and usage of our MarinOne platform; the productivity of
our personnel and other aspects of our business; our ability to
maintain or grow sales to new and existing customers; any adverse
changes in our relationships with and access to publishers and
advertising agencies and strategic business partners, including any
adverse changes in our revenue sharing agreement with Google; our
ability to retain and attract qualified management, technical and
sales and marketing personnel; any delays in the release of updates
to our product platform or new features or delays in customer
deployment of any such updates or features; competitive factors,
including but not limited to pricing pressures, entry of new
competitors and new applications; quarterly fluctuations in our
operating results due to a number of factors; inability to
adequately forecast our future revenue, expenses, adjusted EBITDA,
cash flows or other financial metrics; delays, reductions or slower
growth in the amount spent on online and mobile advertising and the
development of the market for cloud-based software; progress in our
efforts to update our software platform; our ability to maintain or
expand sales of our solutions in channels other than search
advertising; any slow-down in the search advertising market
generally; any shift in customer digital advertising budgets from
search to segments in which we are not as deeply penetrated; the
development of the market for digital advertising; our ability to
provide high-quality technical support to our customers; material
defects in our platform including those resulting from any updates
we introduce to our platform, service interruptions at our single
third-party data center or breaches in our security measures; our
ability to develop enhancements to our platform; our ability to
protect our intellectual property; our ability to manage risks
associated with international operations; the impact of
fluctuations in currency exchange rates, particularly an increase
in the value of the dollar; near term changes in sales of our
software services or spend under management may not be immediately
reflected in our results due to our subscription business model;
our ability to maintain the listing of our common stock on the
Nasdaq; and adverse changes in general economic or market
conditions. These forward-looking statements are based on current
expectations and are subject to uncertainties and changes in
condition, significance, value and effect as well as other risks
detailed in documents filed with the Securities and Exchange
Commission, including our most recent report on Form 10-K, recent
reports on Form 10-Q and current reports on Form 8-K, which we may
file from time to time, and all of which are available free of
charge at the SEC’s website at www.sec.gov. Any of these risks
could cause actual results to differ materially from expectations
set forth in the forward-looking statements. All forward-looking
statements in this press release reflect Marin’s expectations as of
August 1, 2024. Marin assumes no obligation to, and expressly
disclaims any obligation to update any such forward-looking
statements after the date of this release.
Marin Software Incorporated
Condensed Consolidated Balance
Sheets
(On a GAAP basis)
June 30,
December 31,
(Unaudited; in thousands, except par
value)
2024
2023
Assets:
Current assets:
Cash and cash equivalents
$
7,942
$
11,363
Accounts receivable, net
3,551
3,864
Prepaid expenses and other current
assets
1,087
1,548
Total current assets
12,580
16,775
Property and equipment, net
116
120
Right-of-use assets, operating leases
1,219
1,912
Other non-current assets
517
508
Total assets
$
14,432
$
19,315
Liabilities and Stockholders'
Equity:
Current liabilities:
Accounts payable
$
585
$
664
Accrued expenses and other current
liabilities
1,796
2,099
Operating lease liabilities
1,219
1,518
Total current liabilities
3,600
4,281
Operating lease liabilities,
non-current
—
394
Other long-term liabilities
973
1,001
Total liabilities
4,573
5,676
Stockholders’ equity:
Convertible preferred stock, $0.001 par
value
—
—
Common stock, $0.001 par value
3
3
Additional paid-in capital
359,528
358,884
Accumulated deficit
(348,680
)
(344,251
)
Accumulated other comprehensive loss
(992
)
(997
)
Total stockholders’ equity
9,859
13,639
Total liabilities and stockholders’
equity
$
14,432
$
19,315
Marin Software Incorporated
Condensed Consolidated Statements of
Operations
(On a GAAP basis)
Three Months Ended June
30,
Six Months Ended June
30,
(Unaudited; in thousands, except per
share data)
2024
2023
2024
2023
Revenue, net
$
4,045
$
4,360
$
8,076
$
8,943
Cost of revenue
1,690
3,174
3,433
6,414
Gross profit
2,355
1,186
4,643
2,529
Operating expenses:
Sales and marketing
1,043
1,935
2,293
3,960
Research and development
1,799
2,797
3,680
5,739
General and administrative
1,600
2,442
3,284
4,778
Total operating expenses
4,442
7,174
9,257
14,477
Loss from operations
(2,087
)
(5,988
)
(4,614
)
(11,948
)
Other income, net
138
215
242
440
Loss before income taxes
(1,949
)
(5,773
)
(4,372
)
(11,508
)
Provision for income taxes
69
144
57
192
Net loss
$
(2,018
)
$
(5,917
)
$
(4,429
)
$
(11,700
)
Net loss per common share, basic and
diluted
$
(0.65
)
$
(2.04
)
$
(1.44
)
$
(4.05
)
Weighted-average shares outstanding, basic
and diluted
3,108
2,902
3,066
2,887
Marin Software Incorporated
Condensed Consolidated Statements of
Cash Flows
(On a GAAP basis)
Six Months Ended June
30,
(Unaudited; in thousands)
2024
2023
Operating activities:
Net loss
$
(4,429
)
$
(11,700
)
Adjustments to reconcile net loss to net
cash used in operating activities
Depreciation
4
14
Amortization of internally developed
software
—
845
Amortization of right-of-use assets
765
802
Amortization of deferred costs to obtain
and fulfill contracts
181
187
Unrealized foreign currency losses
(4
)
32
Stock-based compensation related to equity
awards
744
2,285
Provision for credit losses
—
(390
)
Deferred income tax benefits
3
—
Changes in operating assets and
liabilities
Accounts receivable
325
895
Prepaid expenses and other assets
273
479
Accounts payable
(78
)
(125
)
Accrued expenses and other liabilities
(324
)
(265
)
Operating lease liabilities
(765
)
(802
)
Net cash used in operating activities
(3,305
)
(7,743
)
Investing activities:
Capitalization of internally developed
software
—
(1,157
)
Net cash used in investing activities
—
(1,157
)
Financing activities:
Employee taxes paid for withheld shares
upon equity award settlement
(97
)
(83
)
Proceeds from employee stock purchase
plan, net
—
(3
)
Net cash provided by (used in) financing
activities
(97
)
(86
)
Effect of foreign exchange rate changes on
cash and cash equivalents
(19
)
5
Net decrease in cash and cash
equivalents
(3,421
)
(8,981
)
Cash and cash equivalents:
Beginning of period
11,363
27,957
End of the period
$
7,942
$
18,976
Marin Software Incorporated
Reconciliation of GAAP to Non-GAAP
Expenses
Three Months Ended
Year Ended
Three Months Ended
Mar 31,
Jun 30,
Sep 30
Dec 31,
Dec 31,
Mar 31,
Jun 30,
(Unaudited; in thousands)
2023
2023
2023
2023
2023
2024
2024
Sales and marketing
$
2,025
$
1,935
$
1,482
$
1,078
$
6,520
$
1,250
$
1,043
Stock-based compensation
(165
)
(184
)
(88
)
(65
)
(502
)
(64
)
(60
)
Restructuring related expenses
—
—
(122
)
—
(122
)
—
—
Sales and marketing (Non-GAAP)
$
1,860
$
1,751
$
1,272
$
1,013
$
5,896
$
1,186
$
983
Research and development
$
2,942
$
2,797
$
2,860
$
1,636
$
10,235
$
1,881
$
1,799
Stock-based compensation
(270
)
(305
)
(131
)
(119
)
(825
)
(127
)
(124
)
Restructuring related expenses
—
—
(815
)
(22
)
(837
)
—
—
Capitalization of internally developed
software
579
578
354
296
1,807
—
—
Research and development (Non-GAAP)
$
3,251
$
3,070
$
2,268
$
1,791
$
10,380
$
1,754
$
1,675
General and administrative
$
2,336
$
2,442
$
2,119
$
1,974
$
8,871
$
1,684
$
1,600
Stock-based compensation
(473
)
(627
)
(85
)
(187
)
(1,372
)
(183
)
(109
)
Restructuring related expenses
—
—
(189
)
—
(189
)
—
—
Third-party subpoena-related expenses
(84
)
(45
)
(36
)
(30
)
(195
)
(60
)
(81
)
General and administrative (Non-GAAP)
$
1,779
$
1,770
$
1,809
$
1,757
$
7,115
$
1,441
$
1,410
Marin Software Incorporated
Reconciliation of GAAP to Non-GAAP
Measures
Three Months Ended
Year Ended
Three Months Ended
Mar 31,
Jun 30,
Sep 30,
Dec 31,
Dec 31,
Mar 31,
Jun 30,
(Unaudited; in thousands)
2023
2023
2023
2023
2023
2024
2024
Gross profit
$
1,343
$
1,186
$
1,351
$
2,216
$
6,096
$
2,288
$
2,355
Stock-based compensation
124
137
5
41
307
39
38
Amortization of internally developed
software
419
426
433
423
1,701
—
—
Restructuring related expenses
—
—
671
2
673
—
—
Gross profit (Non-GAAP)
$
1,886
$
1,749
$
2,460
$
2,682
$
8,777
$
2,327
$
2,393
Operating loss
$
(5,960
)
$
(5,988
)
$
(5,110
)
$
(5,748
)
$
(22,806
)
$
(2,527
)
$
(2,087
)
Stock-based compensation
1,032
1,253
309
412
3,006
413
331
Amortization of internally developed
software
419
426
433
423
1,701
—
—
Restructuring related expenses
—
—
1,797
24
1,821
—
—
Capitalization of internally developed
software
(579
)
(578
)
(354
)
(296
)
(1,807
)
—
—
Third-party subpoena-related expenses
84
45
36
30
195
60
81
Impairment loss on long-lived assets
—
—
—
3,276
3,276
—
—
Operating loss (Non-GAAP)
$
(5,004
)
$
(4,842
)
$
(2,889
)
$
(1,879
)
$
(14,614
)
$
(2,054
)
$
(1,675
)
Net loss
$
(5,783
)
$
(5,917
)
$
(4,954
)
$
(5,263
)
$
(21,917
)
$
(2,411
)
$
(2,018
)
Stock-based compensation
1,032
1,253
309
412
3,006
413
331
Amortization of internally developed
software
419
426
433
423
1,701
—
—
Restructuring related expenses
—
—
1,797
24
1,821
—
—
Capitalization of internally developed
software
(579
)
(578
)
(354
)
(296
)
(1,807
)
—
—
Third-party subpoena-related expenses
84
45
36
30
195
60
81
Impairment loss on long-lived assets
—
—
—
3,276
3,276
—
—
Net loss (Non-GAAP)
$
(4,827
)
$
(4,771
)
$
(2,733
)
$
(1,394
)
$
(13,725
)
$
(1,938
)
$
(1,606
)
Marin Software Incorporated
Calculation of Non-GAAP Earnings Per
Share
Three Months Ended
Year Ended
Three Months Ended
Mar 31,
Jun 30,
Sep 30,
Dec 31,
Dec 31,
Mar 31,
Jun 30,
(Unaudited; in thousands, except per
share data)
2023
2023
2023
2023
2023
2024
2024
Net loss (Non-GAAP)
$
(4,827
)
$
(4,771
)
$
(2,733
)
$
(1,394
)
$
(13,725
)
$
(1,938
)
$
(1,606
)
Weighted-average shares outstanding, basic
and diluted
2,873
2,902
2,985
3,009
2,943
3,024
3,108
Net loss per share, basic and diluted
(Non-GAAP)
$
(1.68
)
$
(1.64
)
$
(0.92
)
$
(0.46
)
$
(4.66
)
$
(0.64
)
$
(0.52
)
Marin Software Incorporated
Reconciliation of Net Loss to Adjusted
EBITDA
Three Months Ended
Year Ended
Three Months Ended
Mar 31,
Jun 30,
Sep 30,
Dec 31,
Dec 31,
Mar 31,
Jun 30,
(Unaudited; in thousands)
2023
2023
2023
2023
2023
2024
2024
Net loss
$
(5,783
)
$
(5,917
)
$
(4,954
)
$
(5,263
)
$
(21,917
)
$
(2,411
)
$
(2,018
)
Depreciation
11
3
3
2
19
2
2
Amortization of internally developed
software
419
426
433
423
1,701
—
—
Provision for (benefit from) income
taxes
48
144
2
(344
)
(150
)
(12
)
69
Stock-based compensation
1,032
1,253
309
412
3,006
413
331
Capitalization of internally developed
software
(579
)
(578
)
(354
)
(296
)
(1,807
)
—
—
Restructuring related expenses
—
—
1,797
24
1,821
—
—
Impairment loss on long-lived assets
—
—
—
3,276
3,276
—
—
Other income, net
(225
)
(215
)
(158
)
(141
)
(739
)
(104
)
(138
)
Third-party subpoena-related expenses
84
45
36
30
195
60
81
Adjusted EBITDA
$
(4,993
)
$
(4,839
)
$
(2,886
)
$
(1,877
)
$
(14,595
)
$
(2,052
)
$
(1,673
)
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version on businesswire.com: https://www.businesswire.com/news/home/20240801421228/en/
Investor Relations, Marin Software
ir@marinsoftware.com
Media Contact Wesley MacLaggan Marketing, Marin Software
(415) 399-2580 press@marinsoftware.com
Marin Software (NASDAQ:MRIN)
過去 株価チャート
から 12 2024 まで 1 2025
Marin Software (NASDAQ:MRIN)
過去 株価チャート
から 1 2024 まで 1 2025
