SAN FRANCISCO, Aug. 9, 2018 /PRNewswire/ -- Marin Software
Incorporated (NASDAQ: MRIN), a leading provider of cross-channel,
cross-device, enterprise marketing software for advertisers and
agencies, today announced financial results for the second quarter
ended June 30, 2018.
"As we execute on our open, independent, cross-channel strategy,
I am pleased to announce that Marin's support for Amazon Ads is gaining
traction in the market with Amazon proving to be our fastest
growing publisher in Q2 2018," said Chris
Lien, Chief Executive Officer of Marin Software. "Our
MarinOne platform will help advertisers thrive in a world where
Amazon joins Google and Facebook as the dominant pillars of digital
advertising."
Second Quarter 2018 Business and Product Release
Highlights:
- Debuted Bidding for Amazon Sponsored Product Ads helping
advertisers drive performance on this emerging ad platform.
- Released enhanced support for Facebook Ad Studies streaming
process for advertisers to test performance of their social
ads.
- Launched support for Yahoo Japan's Responsive Display Ads,
offering advertisers a flexible ad unit that automatically works
across a variety of devices and placements.
- Added Impression Share as an optimization target for Google
Shopping campaigns to help advertisers ensure their products
achieve a desired share of voice on key queries and products.
- Enabled Auto Segmentation of Google Shopping campaigns to
identify and optimize top performing products.
- Added support for Google Parallel tracking, enabling faster
page loads for a mobile-first world.
- Improved cross-channel Creative Asset Hub to sync with
third-party platforms, such as Google Drive, offering better
collaboration between media and creative teams.
Second Quarter 2018 Financial Updates:
- Net revenues totaled $14.3
million, a year-over-year decrease of 24% when compared to
$18.7 million in the
second quarter of 2017.
- GAAP loss from operations was ($8.4)
million, resulting in a GAAP operating margin of (59%),
compared to a GAAP loss from operations of ($9.6) million and a GAAP operating margin of
(51%) for the second quarter of 2017. Non-GAAP loss from operations
was ($6.2) million, resulting in a
non-GAAP operating margin of (43%), as compared to a non-GAAP loss
from operations of ($4.7) million and
a non-GAAP operating margin of (25%) for the second quarter of
2017.
- Cash, cash equivalents and restricted cash totaled $17.2 million as of June
30, 2018, as compared to $28.8
million as of December 31,
2017.
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 2018 as follows:
Forward-Looking
Guidance
|
In
millions
|
|
|
|
|
|
|
|
|
|
|
|
|
Range of
Estimate
|
|
|
|
|
From
|
|
To
|
|
Three Months
Ending September 30, 2018
|
|
|
|
|
|
|
|
Revenues,
net
|
|
$
|
12.3
|
|
$
|
12.8
|
|
Non-GAAP loss from
operations
|
|
|
(6.7)
|
|
|
(6.2)
|
|
Non-GAAP loss from operations excludes the effects of
stock-based compensation, amortization of internally developed
software, intangible assets and deferred costs to obtain and
fulfill contracts, impairment of goodwill and long-lived assets,
capitalization of internally developed software, deferral of costs
to obtain and fulfill contracts and non-recurring costs associated
with restructurings.
Additionally, the Company does not reconcile its forward-looking
non-GAAP loss from operations, due to variability between revenues
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, 2018,
and its outlook for the future. To access the call, please dial
(877) 705-6003 in the United
States or (201) 493-6725 internationally with reference to
the company name and conference title. A live webcast of the
conference call will be accessible
at http://public.viavid.com/index.php?id=130614. Following
the completion of the call through 11:59
p.m. Eastern Time on August 16,
2018, a recorded replay will be available for replay 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
13681773.
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 provides enterprise
marketing software for advertisers and agencies to integrate,
align, and amplify their digital advertising spend across the web
and mobile devices. Offering a unified SaaS advertising
management platform for search, social, display and
eCommerce advertising, Marin
helps digital marketers convert precise audiences, improve
financial performance, and make better decisions. Headquartered in
San Francisco, with offices
worldwide, Marin's technology powers marketing campaigns
around the globe. For more information about Marin Software,
please visit: http://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, amortization of internally developed
software, intangible assets and deferred costs to obtain and
fulfill contracts, impairment of goodwill and long-lived assets,
non-cash expenses related to debt agreements, capitalization of
internally developed software, deferral of costs to obtain and
fulfill contracts and non-recurring costs associated with
restructurings. 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, intangible assets and deferred costs to obtain
and fulfill contracts, capitalization of internally developed
software, deferral of costs to obtain and fulfill contracts,
impairment of goodwill and long-lived assets, provision for income
taxes, other income or expenses, net and non-recurring costs
associated with restructurings. 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, expectations about our
ability to return to growth, impact of investments in product and
technology on future operating results, progress on product
development efforts, product capabilities and future financial
results, including its outlook for the third quarter of 2018. 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 grow
sales to new and existing customers; our ability to expand our
sales and marketing capabilities; our ability to retain and attract
qualified management and technical personnel; delays in the release
of updates to our product platform or new 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 revenues, 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; adverse changes in our
relationships with and access to publishers and advertising
agencies; level of usage and advertising spend managed on our
platform; our ability to expand sales of our solutions in channels
other than search advertising; any slow-down in the search
advertising market generally; 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;
acceptance and continued usage of our platform and services by
customers and 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; adverse changes in general economic or market
conditions; and the ability to acquire and integrate other
businesses. 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, 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 9, 2018.
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
Inc.
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
(On a GAAP
basis)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
|
December
31,
|
|
(Unaudited; in
thousands, except par value)
|
|
2018
|
|
|
2017
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
15,927
|
|
|
$
|
27,544
|
|
Restricted
cash
|
|
|
1,293
|
|
|
|
1,293
|
|
Accounts receivable,
net
|
|
|
9,768
|
|
|
|
12,237
|
|
Prepaid expenses and
other current assets
|
|
|
5,787
|
|
|
|
3,989
|
|
Total current
assets
|
|
|
32,775
|
|
|
|
45,063
|
|
Property and
equipment, net
|
|
|
13,832
|
|
|
|
15,559
|
|
Goodwill
|
|
|
16,720
|
|
|
|
16,768
|
|
Intangible assets,
net
|
|
|
3,134
|
|
|
|
4,475
|
|
Other non-current
assets
|
|
|
2,401
|
|
|
|
1,504
|
|
Total
assets
|
|
$
|
68,862
|
|
|
$
|
83,369
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
1,918
|
|
|
$
|
2,826
|
|
Accrued expenses and
other current liabilities
|
|
|
9,001
|
|
|
|
10,474
|
|
Capital lease
obligations
|
|
|
1,445
|
|
|
|
1,416
|
|
Total current
liabilities
|
|
|
12,364
|
|
|
|
14,716
|
|
Capital lease
obligations, non-current
|
|
|
1,002
|
|
|
|
1,687
|
|
Other long-term
liabilities
|
|
|
3,885
|
|
|
|
4,183
|
|
Total
liabilities
|
|
|
17,251
|
|
|
|
20,586
|
|
Stockholders'
equity
|
|
|
|
|
|
|
|
|
Common stock, $0.001
par value
|
|
|
6
|
|
|
|
6
|
|
Additional paid-in
capital
|
|
|
293,278
|
|
|
|
291,163
|
|
Accumulated
deficit
|
|
|
(240,857)
|
|
|
|
(227,704)
|
|
Accumulated other
comprehensive loss
|
|
|
(816)
|
|
|
|
(682)
|
|
Total stockholders'
equity
|
|
|
51,611
|
|
|
|
62,783
|
|
Total liabilities and
stockholders' equity
|
|
$
|
68,862
|
|
|
$
|
83,369
|
|
Marin Software
Inc.
|
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)
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
Revenues,
net
|
|
$
|
14,251
|
|
|
$
|
18,742
|
|
|
$
|
29,653
|
|
|
$
|
39,075
|
|
Cost of
revenues
|
|
|
6,963
|
|
|
|
8,207
|
|
|
|
14,535
|
|
|
|
16,531
|
|
Gross
profit
|
|
|
7,288
|
|
|
|
10,535
|
|
|
|
15,118
|
|
|
|
22,544
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
|
6,154
|
|
|
|
6,710
|
|
|
|
13,535
|
|
|
|
13,386
|
|
Research and
development
|
|
|
5,817
|
|
|
|
6,646
|
|
|
|
11,972
|
|
|
|
13,784
|
|
General and
administrative
|
|
|
3,766
|
|
|
|
3,945
|
|
|
|
7,143
|
|
|
|
8,122
|
|
Impairment of
goodwill
|
|
|
—
|
|
|
|
2,797
|
|
|
|
—
|
|
|
|
2,797
|
|
Total operating
expenses
|
|
|
15,737
|
|
|
|
20,098
|
|
|
|
32,650
|
|
|
|
38,089
|
|
Loss from
operations
|
|
|
(8,449)
|
|
|
|
(9,563)
|
|
|
|
(17,532)
|
|
|
|
(15,545)
|
|
Other income
(expenses), net
|
|
|
377
|
|
|
|
(563)
|
|
|
|
672
|
|
|
|
(301)
|
|
Loss before provision
for income taxes
|
|
|
(8,072)
|
|
|
|
(10,126)
|
|
|
|
(16,860)
|
|
|
|
(15,846)
|
|
Provision for income
taxes
|
|
|
(204)
|
|
|
|
(419)
|
|
|
|
(528)
|
|
|
|
(825)
|
|
Net loss
|
|
$
|
(8,276)
|
|
|
$
|
(10,545)
|
|
|
$
|
(17,388)
|
|
|
$
|
(16,671)
|
|
Net loss per common
share, basic and diluted
|
|
$
|
(1.44)
|
|
|
$
|
(1.87)
|
|
|
$
|
(3.02)
|
|
|
$
|
(2.99)
|
|
Weighted-average
shares outstanding, basic and diluted
|
|
|
5,767
|
|
|
|
5,640
|
|
|
|
5,751
|
|
|
|
5,572
|
|
Marin Software
Inc.
|
Condensed
Consolidated Statements of Cash Flows
|
(On a GAAP
basis)
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
(Unaudited; in
thousands)
|
|
2018
|
|
|
2017
|
|
Operating
activities
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(17,388)
|
|
|
$
|
(16,671)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities
|
|
|
|
|
|
|
|
|
Impairment of
goodwill
|
|
|
—
|
|
|
|
2,797
|
|
Depreciation
|
|
|
1,557
|
|
|
|
2,599
|
|
Amortization of
internally developed software
|
|
|
1,943
|
|
|
|
1,655
|
|
Amortization of
intangible assets
|
|
|
1,341
|
|
|
|
1,451
|
|
Amortization of
deferred costs to obtain and fulfill contracts
|
|
|
1,145
|
|
|
|
—
|
|
Unrealized foreign
currency (gains) losses
|
|
|
(25)
|
|
|
|
512
|
|
Non-cash interest
expense related to debt agreements
|
|
|
—
|
|
|
|
13
|
|
Stock-based
compensation related to equity awards and restricted
stock
|
|
|
2,058
|
|
|
|
2,760
|
|
Provision for bad
debts
|
|
|
35
|
|
|
|
785
|
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
2,438
|
|
|
|
4,846
|
|
Prepaid expenses and
other assets
|
|
|
(1,199)
|
|
|
|
(1,168)
|
|
Accounts
payable
|
|
|
(877)
|
|
|
|
(459)
|
|
Accrued expenses and
other current liabilities
|
|
|
(425)
|
|
|
|
(374)
|
|
Net cash used in
operating activities
|
|
|
(9,397)
|
|
|
|
(1,254)
|
|
Investing
activities
|
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
(200)
|
|
|
|
(259)
|
|
Capitalization of
internally developed software
|
|
|
(1,295)
|
|
|
|
(956)
|
|
Net cash used in
investing activities
|
|
|
(1,495)
|
|
|
|
(1,215)
|
|
Financing
activities
|
|
|
|
|
|
|
|
|
Repayments of capital
lease obligations
|
|
|
(656)
|
|
|
|
(523)
|
|
Employee taxes paid
for withheld shares upon equity award settlement
|
|
|
(110)
|
|
|
|
(171)
|
|
Proceeds from
employee stock purchase plan, net
|
|
|
165
|
|
|
|
111
|
|
Net cash used in
financing activities
|
|
|
(601)
|
|
|
|
(583)
|
|
Effect of foreign
exchange rate changes on cash and cash equivalents and restricted
cash
|
|
|
(124)
|
|
|
|
1,161
|
|
Net decrease in cash
and cash equivalents and restricted cash
|
|
|
(11,617)
|
|
|
|
(1,891)
|
|
Cash and cash
equivalents and restricted cash
|
|
|
|
|
|
|
|
|
Beginning of
period
|
|
|
28,837
|
|
|
|
35,713
|
|
End of
period
|
|
$
|
17,220
|
|
|
$
|
33,822
|
|
Marin Software
Inc.
|
Reconciliation of
GAAP to Non-GAAP Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
|
June
30,
|
|
|
September
30,
|
|
|
December
31,
|
|
|
December
31,
|
|
|
March
31,
|
|
|
June
30,
|
|
(Unaudited; in
thousands)
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2018
|
|
|
2018
|
|
Sales and Marketing
(GAAP)
|
|
$
|
6,676
|
|
|
$
|
6,710
|
|
|
$
|
6,630
|
|
|
$
|
6,920
|
|
|
$
|
26,936
|
|
|
$
|
7,381
|
|
|
$
|
6,154
|
|
Less Stock-based
compensation
|
|
|
(212)
|
|
|
|
(200)
|
|
|
|
(197)
|
|
|
|
(218)
|
|
|
|
(827)
|
|
|
|
(240)
|
|
|
|
(271)
|
|
Less Amortization of
intangible assets
|
|
|
(223)
|
|
|
|
(222)
|
|
|
|
(216)
|
|
|
|
(216)
|
|
|
|
(877)
|
|
|
|
(213)
|
|
|
|
(184)
|
|
Less Amortization of
deferred costs to obtain contracts
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(432)
|
|
|
|
(384)
|
|
Less Restructuring
related expenses
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(497)
|
|
|
|
(48)
|
|
Plus Deferral of costs
to obtain contracts
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
257
|
|
|
|
335
|
|
Sales and Marketing
(Non-GAAP)
|
|
$
|
6,241
|
|
|
$
|
6,288
|
|
|
$
|
6,217
|
|
|
$
|
6,486
|
|
|
$
|
25,232
|
|
|
$
|
6,256
|
|
|
$
|
5,602
|
|
Research and
Development (GAAP)
|
|
$
|
7,138
|
|
|
$
|
6,646
|
|
|
$
|
6,672
|
|
|
$
|
6,108
|
|
|
$
|
26,564
|
|
|
$
|
6,155
|
|
|
$
|
5,817
|
|
Less Stock-based
compensation
|
|
|
(996)
|
|
|
|
(318)
|
|
|
|
(326)
|
|
|
|
(356)
|
|
|
|
(1,996)
|
|
|
|
(339)
|
|
|
|
(314)
|
|
Less Amortization of
intangible assets
|
|
|
(247)
|
|
|
|
(244)
|
|
|
|
(239)
|
|
|
|
(239)
|
|
|
|
(969)
|
|
|
|
(237)
|
|
|
|
(234)
|
|
Less Restructuring
related expenses
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(115)
|
|
|
|
—
|
|
Plus Capitalization of
internally developed software
|
|
|
543
|
|
|
|
413
|
|
|
|
442
|
|
|
|
670
|
|
|
|
2,068
|
|
|
|
693
|
|
|
|
602
|
|
Research and
Development (Non-GAAP)
|
|
$
|
6,438
|
|
|
$
|
6,497
|
|
|
$
|
6,549
|
|
|
$
|
6,183
|
|
|
$
|
25,667
|
|
|
$
|
6,157
|
|
|
$
|
5,871
|
|
General and
Administrative (GAAP)
|
|
$
|
4,177
|
|
|
$
|
3,945
|
|
|
$
|
3,920
|
|
|
$
|
4,402
|
|
|
$
|
16,444
|
|
|
$
|
3,377
|
|
|
$
|
3,766
|
|
Less Stock-based
compensation
|
|
|
(323)
|
|
|
|
(248)
|
|
|
|
(234)
|
|
|
|
(254)
|
|
|
|
(1,059)
|
|
|
|
(245)
|
|
|
|
(273)
|
|
Less Amortization of
intangible assets
|
|
|
(13)
|
|
|
|
(10)
|
|
|
|
(5)
|
|
|
|
(5)
|
|
|
|
(33)
|
|
|
|
(3)
|
|
|
|
—
|
|
Less Restructuring
related expenses
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(111)
|
|
|
|
(36)
|
|
General and
Administrative (Non-GAAP)
|
|
$
|
3,841
|
|
|
$
|
3,687
|
|
|
$
|
3,681
|
|
|
$
|
4,143
|
|
|
$
|
15,352
|
|
|
$
|
3,018
|
|
|
$
|
3,457
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marin Software
Inc.
|
Reconciliation of
GAAP to Non-GAAP Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
|
June
30,
|
|
|
September
30,
|
|
|
December
31,
|
|
|
December
31,
|
|
|
March
31,
|
|
|
June
30,
|
|
(Unaudited; in
thousands)
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2018
|
|
|
2018
|
|
Gross Profit
(GAAP)
|
|
$
|
12,009
|
|
|
$
|
10,535
|
|
|
$
|
9,968
|
|
|
$
|
9,959
|
|
|
$
|
42,471
|
|
|
$
|
7,830
|
|
|
$
|
7,288
|
|
Plus Stock-based
compensation
|
|
|
311
|
|
|
|
152
|
|
|
|
166
|
|
|
|
193
|
|
|
|
822
|
|
|
|
204
|
|
|
|
172
|
|
Plus Amortization of
internally developed software
|
|
|
788
|
|
|
|
867
|
|
|
|
1,016
|
|
|
|
998
|
|
|
|
3,669
|
|
|
|
957
|
|
|
|
986
|
|
Plus Amortization of
intangible assets
|
|
|
247
|
|
|
|
245
|
|
|
|
240
|
|
|
|
239
|
|
|
|
971
|
|
|
|
237
|
|
|
|
233
|
|
Plus Amortization of
deferred costs to fulfill contracts
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
173
|
|
|
|
156
|
|
Plus Restructuring
related expenses
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
139
|
|
|
|
—
|
|
Less Deferral of costs
to fulfill contracts
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(115)
|
|
|
|
(81)
|
|
Gross Profit
(Non-GAAP)
|
|
$
|
13,355
|
|
|
$
|
11,799
|
|
|
$
|
11,390
|
|
|
$
|
11,389
|
|
|
$
|
47,933
|
|
|
$
|
9,425
|
|
|
$
|
8,754
|
|
Operating Loss
(GAAP)
|
|
$
|
(5,982)
|
|
|
$
|
(9,563)
|
|
|
$
|
(7,254)
|
|
|
$
|
(7,471)
|
|
|
$
|
(30,270)
|
|
|
$
|
(9,083)
|
|
|
$
|
(8,449)
|
|
Plus Impairment of
goodwill
|
|
|
—
|
|
|
|
2,797
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,797
|
|
|
|
—
|
|
|
|
—
|
|
Plus Stock-based
compensation
|
|
|
1,842
|
|
|
|
918
|
|
|
|
923
|
|
|
|
1,021
|
|
|
|
4,704
|
|
|
|
1,028
|
|
|
|
1,030
|
|
Plus Amortization of
internally developed software
|
|
|
788
|
|
|
|
867
|
|
|
|
1,016
|
|
|
|
998
|
|
|
|
3,669
|
|
|
|
957
|
|
|
|
986
|
|
Plus Amortization of
intangible assets
|
|
|
730
|
|
|
|
721
|
|
|
|
700
|
|
|
|
699
|
|
|
|
2,850
|
|
|
|
690
|
|
|
|
651
|
|
Plus Amortization of
deferred costs to fulfill contracts
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
173
|
|
|
|
156
|
|
Plus Amortization of
deferred costs to obtain contracts
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
432
|
|
|
|
384
|
|
Plus Restructuring
related expenses
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
862
|
|
|
|
84
|
|
Less Capitalization of
internally developed software
|
|
|
(543)
|
|
|
|
(413)
|
|
|
|
(442)
|
|
|
|
(670)
|
|
|
|
(2,068)
|
|
|
|
(693)
|
|
|
|
(602)
|
|
Less Deferral of costs
to fulfill contracts
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(115)
|
|
|
|
(81)
|
|
Less Deferral of costs
to obtain contracts
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(257)
|
|
|
|
(335)
|
|
Operating Loss
(Non-GAAP)
|
|
$
|
(3,165)
|
|
|
$
|
(4,673)
|
|
|
$
|
(5,057)
|
|
|
$
|
(5,423)
|
|
|
$
|
(18,318)
|
|
|
$
|
(6,006)
|
|
|
$
|
(6,176)
|
|
Net Loss
(GAAP)
|
|
$
|
(6,126)
|
|
|
$
|
(10,545)
|
|
|
$
|
(7,549)
|
|
|
$
|
(7,271)
|
|
|
$
|
(31,491)
|
|
|
$
|
(9,112)
|
|
|
$
|
(8,276)
|
|
Plus Impairment of
goodwill
|
|
|
—
|
|
|
|
2,797
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,797
|
|
|
|
—
|
|
|
|
—
|
|
Plus Stock-based
compensation
|
|
|
1,842
|
|
|
|
918
|
|
|
|
923
|
|
|
|
1,021
|
|
|
|
4,704
|
|
|
|
1,028
|
|
|
|
1,030
|
|
Plus Amortization of
internally developed software
|
|
|
788
|
|
|
|
867
|
|
|
|
1,016
|
|
|
|
998
|
|
|
|
3,669
|
|
|
|
957
|
|
|
|
986
|
|
Plus Amortization of
intangible assets
|
|
|
730
|
|
|
|
721
|
|
|
|
700
|
|
|
|
699
|
|
|
|
2,850
|
|
|
|
690
|
|
|
|
651
|
|
Plus Amortization of
deferred costs to fulfill contracts
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
173
|
|
|
|
156
|
|
Plus Amortization of
deferred costs to obtain contracts
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
432
|
|
|
|
384
|
|
Plus Non-cash expenses
related to debt agreements
|
|
|
6
|
|
|
|
7
|
|
|
|
2
|
|
|
|
—
|
|
|
|
15
|
|
|
|
—
|
|
|
|
—
|
|
Plus Restructuring
related expenses
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
862
|
|
|
|
84
|
|
Less Capitalization of
internally developed software
|
|
|
(543)
|
|
|
|
(413)
|
|
|
|
(442)
|
|
|
|
(670)
|
|
|
|
(2,068)
|
|
|
|
(693)
|
|
|
|
(602)
|
|
Less Deferral of costs
to fulfill contracts
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(115)
|
|
|
|
(81)
|
|
Less Deferral of costs
to obtain contracts
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(257)
|
|
|
|
(335)
|
|
Net Loss
(Non-GAAP)
|
|
$
|
(3,303)
|
|
|
$
|
(5,648)
|
|
|
$
|
(5,350)
|
|
|
$
|
(5,223)
|
|
|
$
|
(19,524)
|
|
|
$
|
(6,035)
|
|
|
$
|
(6,003)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marin Software
Inc.
|
Calculation of
Non-GAAP Earnings Per Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
|
June
30,
|
|
|
September
30,
|
|
|
December
31,
|
|
|
December
31,
|
|
|
March
31,
|
|
|
June
30,
|
|
(Unaudited; in
thousands, except per share data)
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2018
|
|
|
2018
|
|
Net Loss
(Non-GAAP)
|
|
$
|
(3,303)
|
|
|
$
|
(5,648)
|
|
|
$
|
(5,350)
|
|
|
$
|
(5,223)
|
|
|
$
|
(19,524)
|
|
|
$
|
(6,035)
|
|
|
$
|
(6,003)
|
|
Weighted-average
shares outstanding, basic and diluted
|
|
|
5,583
|
|
|
|
5,640
|
|
|
|
5,651
|
|
|
|
5,677
|
|
|
|
5,638
|
|
|
|
5,736
|
|
|
|
5,767
|
|
Non-GAAP net loss per
common share, basic and diluted
|
|
$
|
(0.59)
|
|
|
$
|
(1.00)
|
|
|
$
|
(0.95)
|
|
|
$
|
(0.92)
|
|
|
$
|
(3.46)
|
|
|
$
|
(1.05)
|
|
|
$
|
(1.04)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marin Software
Inc.
|
Reconciliation of
Net Loss to Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
|
June
30,
|
|
|
September
30,
|
|
|
December
31,
|
|
|
December
31,
|
|
|
March
31,
|
|
|
June
30,
|
|
(Unaudited; in
thousands)
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2018
|
|
|
2018
|
|
Net Loss
|
|
$
|
(6,126)
|
|
|
$
|
(10,545)
|
|
|
$
|
(7,549)
|
|
|
$
|
(7,271)
|
|
|
$
|
(31,491)
|
|
|
$
|
(9,112)
|
|
|
$
|
(8,276)
|
|
Depreciation
|
|
|
1,336
|
|
|
|
1,263
|
|
|
|
1,149
|
|
|
|
1,010
|
|
|
|
4,758
|
|
|
|
798
|
|
|
|
759
|
|
Amortization of
internally developed software
|
|
|
788
|
|
|
|
867
|
|
|
|
1,016
|
|
|
|
998
|
|
|
|
3,669
|
|
|
|
957
|
|
|
|
986
|
|
Amortization of
intangible assets
|
|
|
730
|
|
|
|
721
|
|
|
|
700
|
|
|
|
699
|
|
|
|
2,850
|
|
|
|
690
|
|
|
|
651
|
|
Amortization of
deferred costs to obtain and fulfill contracts
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
605
|
|
|
|
540
|
|
Provision for income
taxes
|
|
|
406
|
|
|
|
419
|
|
|
|
151
|
|
|
|
31
|
|
|
|
1,007
|
|
|
|
324
|
|
|
|
204
|
|
Impairment of
goodwill
|
|
|
—
|
|
|
|
2,797
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,797
|
|
|
|
—
|
|
|
|
—
|
|
Stock-based
compensation
|
|
|
1,842
|
|
|
|
918
|
|
|
|
923
|
|
|
|
1,021
|
|
|
|
4,704
|
|
|
|
1,028
|
|
|
|
1,030
|
|
Capitalization of
internally developed software
|
|
|
(543)
|
|
|
|
(413)
|
|
|
|
(442)
|
|
|
|
(670)
|
|
|
|
(2,068)
|
|
|
|
(693)
|
|
|
|
(602)
|
|
Deferral of costs to
obtain and fulfill contracts
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(372)
|
|
|
|
(416)
|
|
Restructuring related
expenses
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
862
|
|
|
|
84
|
|
Other (income)
expenses, net
|
|
|
(262)
|
|
|
|
563
|
|
|
|
144
|
|
|
|
(231)
|
|
|
|
214
|
|
|
|
(295)
|
|
|
|
(377)
|
|
Adjusted
EBITDA
|
|
$
|
(1,829)
|
|
|
$
|
(3,410)
|
|
|
$
|
(3,908)
|
|
|
$
|
(4,413)
|
|
|
$
|
(13,560)
|
|
|
$
|
(5,208)
|
|
|
$
|
(5,417)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original content with
multimedia:http://www.prnewswire.com/news-releases/marin-software-announces-second-quarter-2018-financial-results-300695104.html
SOURCE Marin Software