SAN FRANCISCO, Dec. 17, 2018 /PRNewswire/ -- Marin Software
Incorporated (Nasdaq: MRIN), a leading provider of digital
marketing software for performance-driven advertisers and agencies,
today announced that it has entered into a three-year revenue
sharing agreement with Google to further develop Marin's enterprise tech platform and software
products.
Financial Outlook:
As a result of its agreement with Google, Marin is providing updated guidance for the
fourth quarter of 2018 as follows:
Forward-Looking
Guidance
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In
Millions
|
|
|
|
|
|
|
|
|
|
|
|
|
Range of
Estimate
|
|
|
|
|
From
|
|
|
To
|
|
|
Three Months
Ending December 31, 2018
|
|
|
|
|
|
|
|
|
|
Revenues,
net
|
|
$
|
14.6
|
|
|
$
|
15.1
|
|
|
Non-GAAP loss from
operations
|
|
|
(2.9)
|
|
|
|
(2.4)
|
|
|
The agreement with Google extends through September 30, 2021, at which time the agreement
may be terminated or renewed. Future guidance from
Marin will incorporate all
expected revenues and reinvestments required under this
agreement.
"This revenue sharing agreement with Google highlights the
value of a strong, independent ecosystem that helps brands get the
most out of their cross-channel marketing spend," said Chris Lien, Chief Executive Officer of
Marin. "With increased investment
supported by Google, leading advertisers can expect to see even
more search innovation from Marin
to better help them achieve their advertising goals including
harnessing the power of machine learning-based ad formats and other
innovative placements."
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, Marin 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. 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 loss from operations to loss from
operations cannot be made without unreasonable effort.
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, 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 a non-GAAP financial
measure in this release. Marin
uses this non-GAAP financial measure internally in analyzing its
financial results and believes it is useful to investors, as a
supplement to the corresponding GAAP measure in evaluating its
ongoing operational performance. Marin believes that the use of this non-GAAP
financial measure 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.
Forward-Looking Statements
This press release contains forward-looking statements
including, among other things, statements regarding Marin's development of its search advertising
platform and products, receipt of revenue share payments and
reinvestment of a portion of such payments pursuant to its
agreement with Google, Marin's
future search innovation to help advertisers achieve their
advertising goals, and Marin's
future financial results, including its updated financial outlook
for the fourth 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 revenues from the agreement with Google; 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 December 17, 2018.
Marin assumes no obligation to,
and expressly disclaims any obligation to update any such
forward-looking statements after the date of this release.
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SOURCE Marin Software