SAN FRANCISCO, Feb. 14, 2019 /PRNewswire/ -- Marin Software
Incorporated (NASDAQ: MRIN), a leading provider of digital
marketing software for performance-driven advertisers and agencies,
today announced financial results for the fourth quarter and full
year ended December 31, 2018.
"We saw increasing adoption of our MarinOne platform in the
fourth quarter," said Chris Lien,
Chief Executive Officer of Marin Software. "All of our customers
now have access to our latest technology to help them deliver
performance from their Search, Social and eCommerce advertising.
Support for additional channels like Apple Search Ads and YouTube,
along with our recently announced revenue share agreement with
Google, will help us drive growth for our customers in 2019."
Fourth Quarter 2018 Business and Product Release
Highlights:
- Expanded MarinOne access to all customers, giving advertisers a
more extensive view into advertising performance across Search,
Social and eCommerce advertising.
- Added support for Apple Search Ads and YouTube in MarinOne,
providing greater coverage for key publishers.
- Increased Amazon Advertising spend managed by Marin by 85% from
the first quarter to the fourth quarter of 2018.
- Published two case studies highlighting the successful
performance results driven by Marin
Bidding for Amazon Sponsored Products.
- Launched support for Google Expanded Text Ads Enhancements,
allowing longer ad copy, particularly for ads running on
mobile.
- Certified by Google as one of the only click-measurement
providers to measure select ad interaction events that occur on
Google-hosted properties globally, including Showcase Shopping Ads,
Local Inventory Ads and Model Automotive Ads.
- Debuted Marin Social Pacing Dashboard, a real-time view into
performance against configurable targets on Facebook.
- Introduced Dynamic Product Ads for Auto on Social, which are a
way to combine effortless automation with segmented targeting for
prospects that are lower in the purchase funnel.
- Entered into and announced a three-year revenue share agreement
with Google through which Marin will receive quarterly payments
from Google to further develop Marin's enterprise technology
platform and software products.
Fourth Quarter 2018 Financial Updates:
- Net revenues totaled $15.8
million, a year-over-year decrease of 11% when compared to
$17.7 million in the fourth quarter
of 2017.
- GAAP loss from operations was ($3.0)
million, resulting in a GAAP operating margin of (19%),
compared to a GAAP loss from operations of ($7.5) million and a GAAP operating margin of
(42%) for the fourth quarter of 2017.
- Non-GAAP loss from operations was ($0.6)
million, resulting in a non-GAAP operating margin of (4%),
as compared to a non-GAAP loss from operations of ($5.4) million and a non-GAAP operating margin of
(31%) for the fourth quarter of 2017.
Full Year 2018 Financial Updates:
- Net revenues totaled $58.6
million, a year-over-year decrease of 22% when compared to
$75.0 million in 2017.
- GAAP loss from operations was ($42.3)
million, resulting in a GAAP operating margin of (72%),
compared to a GAAP loss from operations of ($30.3) million and a GAAP operating margin of
(40%) for 2017.
- Non-GAAP loss from operations was ($17.5) million, resulting in a non-GAAP
operating margin of (30%), as compared to a non-GAAP loss from
operations of ($18.3) million and a
non-GAAP operating margin of (24%) for 2017.
- Cash, cash equivalents and restricted cash totaled $11.5 million as of December 31, 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 first quarter of
2019 as follows:
Forward-Looking
Guidance
|
|
In
millions
|
|
|
|
|
|
|
|
|
|
|
|
|
Range of
Estimate
|
|
|
|
From
|
|
|
To
|
|
Three Months
Ending March 31, 2019
|
|
|
|
|
|
|
|
|
Revenues,
net
|
|
$
|
12.3
|
|
|
$
|
12.8
|
|
Non-GAAP loss from
operations
|
|
|
(4.2)
|
|
|
|
(3.7)
|
|
Non-GAAP loss from operations excludes the effects of
stock-based compensation, amortization of internally developed
software and intangible assets, impairment of goodwill and
long-lived assets, capitalization of internally developed software
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 and full year ended December
31, 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=133029. Following the
completion of the call through 11:59 p.m.
Eastern Time on February 21,
2019, 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 13686928.
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 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 first quarter of 2019. 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 February 14, 2019. 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)
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
|
December
31,
|
|
(Unaudited; in
thousands, except par value)
|
|
2018
|
|
|
2017
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
10,210
|
|
|
$
|
27,544
|
|
Restricted
cash
|
|
|
1,293
|
|
|
|
1,293
|
|
Accounts receivable,
net
|
|
|
12,906
|
|
|
|
12,237
|
|
Prepaid expenses and
other current assets
|
|
|
4,642
|
|
|
|
3,989
|
|
Total current
assets
|
|
|
29,051
|
|
|
|
45,063
|
|
Property and
equipment, net
|
|
|
11,815
|
|
|
|
15,559
|
|
Goodwill
|
|
|
1,943
|
|
|
|
16,768
|
|
Intangible assets,
net
|
|
|
1,938
|
|
|
|
4,475
|
|
Other non-current
assets
|
|
|
2,046
|
|
|
|
1,504
|
|
Total
assets
|
|
$
|
46,793
|
|
|
$
|
83,369
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
2,699
|
|
|
$
|
2,826
|
|
Accrued expenses and
other current liabilities
|
|
|
9,809
|
|
|
|
10,474
|
|
Capital lease
obligations
|
|
|
1,249
|
|
|
|
1,416
|
|
Total current
liabilities
|
|
|
13,757
|
|
|
|
14,716
|
|
Capital lease
obligations, non-current
|
|
|
549
|
|
|
|
1,687
|
|
Other long-term
liabilities
|
|
|
3,541
|
|
|
|
4,183
|
|
Total
liabilities
|
|
|
17,847
|
|
|
|
20,586
|
|
Stockholders'
equity
|
|
|
|
|
|
|
|
|
Common stock, $0.001
par value
|
|
|
6
|
|
|
|
6
|
|
Additional paid-in
capital
|
|
|
295,116
|
|
|
|
291,163
|
|
Accumulated
deficit
|
|
|
(265,138)
|
|
|
|
(227,704)
|
|
Accumulated other
comprehensive loss
|
|
|
(1,038)
|
|
|
|
(682)
|
|
Total stockholders'
equity
|
|
|
28,946
|
|
|
|
62,783
|
|
Total liabilities and
stockholders' equity
|
|
$
|
46,793
|
|
|
$
|
83,369
|
|
|
|
|
|
|
|
|
|
|
Marin Software
Incorporated
|
|
Condensed
Consolidated Statements of Operations
|
|
(On a GAAP
basis)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
Year Ended
December 31
|
|
(Unaudited; in
thousands, except per share data)
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
Revenues,
net
|
|
$
|
15,825
|
|
|
$
|
17,692
|
|
|
$
|
58,631
|
|
|
$
|
74,991
|
|
Cost of
revenues
|
|
|
6,160
|
|
|
|
7,733
|
|
|
|
27,154
|
|
|
|
32,520
|
|
Gross
profit
|
|
|
9,665
|
|
|
|
9,959
|
|
|
|
31,477
|
|
|
|
42,471
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
|
4,594
|
|
|
|
6,920
|
|
|
|
23,425
|
|
|
|
26,936
|
|
Research and
development
|
|
|
5,007
|
|
|
|
6,108
|
|
|
|
22,450
|
|
|
|
26,564
|
|
General and
administrative
|
|
|
3,049
|
|
|
|
4,402
|
|
|
|
13,113
|
|
|
|
16,444
|
|
Impairment of
goodwill
|
|
|
—
|
|
|
|
—
|
|
|
|
14,740
|
|
|
|
2,797
|
|
Total operating
expenses
|
|
|
12,650
|
|
|
|
17,430
|
|
|
|
73,728
|
|
|
|
72,741
|
|
Loss from
operations
|
|
|
(2,985)
|
|
|
|
(7,471)
|
|
|
|
(42,251)
|
|
|
|
(30,270)
|
|
Other income
(expenses), net
|
|
|
585
|
|
|
|
231
|
|
|
|
1,593
|
|
|
|
(214)
|
|
Loss before provision
for income taxes
|
|
|
(2,400)
|
|
|
|
(7,240)
|
|
|
|
(40,658)
|
|
|
|
(30,484)
|
|
Provision for income
taxes
|
|
|
(387)
|
|
|
|
(31)
|
|
|
|
(1,011)
|
|
|
|
(1,007)
|
|
Net loss
|
|
$
|
(2,787)
|
|
|
$
|
(7,271)
|
|
|
$
|
(41,669)
|
|
|
$
|
(31,491)
|
|
Net loss per common
share, basic and diluted
|
|
$
|
(0.48)
|
|
|
$
|
(1.28)
|
|
|
$
|
(7.21)
|
|
|
$
|
(5.59)
|
|
Weighted-average
shares outstanding, basic and diluted
|
|
|
5,841
|
|
|
|
5,677
|
|
|
|
5,783
|
|
|
|
5,638
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marin Software
Incorporated
|
Condensed
Consolidated Statements of Cash Flows
|
(On a GAAP
basis)
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
|
(Unaudited; in
thousands)
|
|
2018
|
|
|
2017
|
|
Operating
activities
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(41,669)
|
|
|
$
|
(31,491)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities
|
|
|
|
|
|
|
|
|
Impairment of
goodwill
|
|
|
14,740
|
|
|
|
2,797
|
|
Depreciation
|
|
|
2,658
|
|
|
|
4,758
|
|
Amortization of
internally developed software
|
|
|
3,774
|
|
|
|
3,669
|
|
Amortization of
intangible assets
|
|
|
2,537
|
|
|
|
2,850
|
|
Amortization of
deferred costs to obtain and fulfill contracts
|
|
|
2,045
|
|
|
|
—
|
|
Gain on disposal of
property and equipment
|
|
|
(1)
|
|
|
|
(11)
|
|
Unrealized foreign
currency (gains) losses
|
|
|
(118)
|
|
|
|
986
|
|
Non-cash interest
expense related to debt agreements
|
|
|
—
|
|
|
|
15
|
|
Stock-based
compensation related to equity awards and restricted
stock
|
|
|
3,971
|
|
|
|
4,704
|
|
Provision for bad
debts
|
|
|
48
|
|
|
|
1,507
|
|
Deferred income tax
benefits
|
|
|
(398)
|
|
|
|
(358)
|
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(669)
|
|
|
|
4,754
|
|
Prepaid expenses and
other assets
|
|
|
(610)
|
|
|
|
(310)
|
|
Accounts
payable
|
|
|
(97)
|
|
|
|
306
|
|
Accrued expenses and
other current liabilities
|
|
|
809
|
|
|
|
954
|
|
Net cash used in
operating activities
|
|
|
(12,980)
|
|
|
|
(4,870)
|
|
Investing
activities
|
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
(586)
|
|
|
|
(461)
|
|
Proceeds from
disposal of property and equipment
|
|
|
8
|
|
|
|
11
|
|
Capitalization of
internally developed software
|
|
|
(2,129)
|
|
|
|
(2,068)
|
|
Net cash used in
investing activities
|
|
|
(2,707)
|
|
|
|
(2,518)
|
|
Financing
activities
|
|
|
|
|
|
|
|
|
Repayments of capital
lease obligations
|
|
|
(1,304)
|
|
|
|
(1,160)
|
|
Employee taxes paid
for withheld shares upon equity award settlement
|
|
|
(265)
|
|
|
|
(604)
|
|
Proceeds from
employee stock purchase plan, net
|
|
|
282
|
|
|
|
312
|
|
Net cash used in
financing activities
|
|
|
(1,287)
|
|
|
|
(1,452)
|
|
Effect of foreign
exchange rate changes on cash and cash equivalents and restricted
cash
|
|
|
(360)
|
|
|
|
1,964
|
|
Net decrease in cash
and cash equivalents and restricted cash
|
|
|
(17,334)
|
|
|
|
(6,876)
|
|
Cash and cash
equivalents and restricted cash
|
|
|
|
|
|
|
|
|
Beginning of
period
|
|
|
28,837
|
|
|
|
35,713
|
|
End of
period
|
|
$
|
11,503
|
|
|
$
|
28,837
|
|
|
|
|
|
|
|
|
|
|
Marin Software
Incorporated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP to Non-GAAP Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
|
March
31, 2017
|
|
|
June
30, 2017
|
|
|
September
30, 2017
|
|
|
December 31, 2017
|
|
|
December
31,
2017
|
|
|
March
31,
2018
|
|
|
June
30,
2018
|
|
|
September
30,
2018
|
|
|
December
31,
2018
|
|
|
December
31,
2018
|
|
(Unaudited; in
thousands)
|
Sales and Marketing
(GAAP)
|
|
$
|
6,676
|
|
|
$
|
6,710
|
|
|
$
|
6,630
|
|
|
$
|
6,920
|
|
|
$
|
26,936
|
|
|
$
|
7,381
|
|
|
$
|
6,154
|
|
|
$
|
5,296
|
|
|
$
|
4,594
|
|
|
$
|
23,425
|
|
Less Stock-based
compensation
|
|
|
(212)
|
|
|
|
(200)
|
|
|
|
(197)
|
|
|
|
(218)
|
|
|
|
(827)
|
|
|
|
(240)
|
|
|
|
(271)
|
|
|
|
(181)
|
|
|
|
(265)
|
|
|
|
(957)
|
|
Less Amortization of
intangible assets
|
|
|
(223)
|
|
|
|
(222)
|
|
|
|
(216)
|
|
|
|
(216)
|
|
|
|
(877)
|
|
|
|
(213)
|
|
|
|
(184)
|
|
|
|
(130)
|
|
|
|
(131)
|
|
|
|
(658)
|
|
Less Amortization of
deferred costs to obtain contracts
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(432)
|
|
|
|
(384)
|
|
|
|
(336)
|
|
|
|
(289)
|
|
|
|
(1,441)
|
|
Less Restructuring
related expenses
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(497)
|
|
|
|
(48)
|
|
|
|
(113)
|
|
|
|
(169)
|
|
|
|
(827)
|
|
Plus Deferral of costs
to obtain contracts
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
257
|
|
|
|
335
|
|
|
|
283
|
|
|
|
219
|
|
|
|
1,094
|
|
Sales and Marketing
(Non-GAAP)
|
|
$
|
6,241
|
|
|
$
|
6,288
|
|
|
$
|
6,217
|
|
|
$
|
6,486
|
|
|
$
|
25,232
|
|
|
$
|
6,256
|
|
|
$
|
5,602
|
|
|
$
|
4,819
|
|
|
$
|
3,959
|
|
|
$
|
20,636
|
|
Research and
Development (GAAP)
|
|
$
|
7,138
|
|
|
$
|
6,646
|
|
|
$
|
6,672
|
|
|
$
|
6,108
|
|
|
$
|
26,564
|
|
|
$
|
6,155
|
|
|
$
|
5,817
|
|
|
$
|
5,471
|
|
|
$
|
5,007
|
|
|
$
|
22,450
|
|
Less Stock-based
compensation
|
|
|
(996)
|
|
|
|
(318)
|
|
|
|
(326)
|
|
|
|
(356)
|
|
|
|
(1,996)
|
|
|
|
(339)
|
|
|
|
(314)
|
|
|
|
(339)
|
|
|
|
(406)
|
|
|
|
(1,398)
|
|
Less Amortization of
intangible assets
|
|
|
(247)
|
|
|
|
(244)
|
|
|
|
(239)
|
|
|
|
(239)
|
|
|
|
(969)
|
|
|
|
(237)
|
|
|
|
(234)
|
|
|
|
(234)
|
|
|
|
(233)
|
|
|
|
(938)
|
|
Less Restructuring
related expenses
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(115)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(115)
|
|
Plus Capitalization of
internally developed software
|
|
|
543
|
|
|
|
413
|
|
|
|
442
|
|
|
|
670
|
|
|
|
2,068
|
|
|
|
693
|
|
|
|
602
|
|
|
|
398
|
|
|
|
436
|
|
|
|
2,129
|
|
Research and
Development (Non-GAAP)
|
|
$
|
6,438
|
|
|
$
|
6,497
|
|
|
$
|
6,549
|
|
|
$
|
6,183
|
|
|
$
|
25,667
|
|
|
$
|
6,157
|
|
|
$
|
5,871
|
|
|
$
|
5,296
|
|
|
$
|
4,804
|
|
|
$
|
22,128
|
|
General and
Administrative (GAAP)
|
|
$
|
4,177
|
|
|
$
|
3,945
|
|
|
$
|
3,920
|
|
|
$
|
4,402
|
|
|
$
|
16,444
|
|
|
$
|
3,377
|
|
|
$
|
3,766
|
|
|
$
|
2,921
|
|
|
$
|
3,049
|
|
|
$
|
13,113
|
|
Less Stock-based
compensation
|
|
|
(323)
|
|
|
|
(248)
|
|
|
|
(234)
|
|
|
|
(254)
|
|
|
|
(1,059)
|
|
|
|
(245)
|
|
|
|
(273)
|
|
|
|
(195)
|
|
|
|
(164)
|
|
|
|
(877)
|
|
Less Amortization of
intangible assets
|
|
|
(13)
|
|
|
|
(10)
|
|
|
|
(5)
|
|
|
|
(5)
|
|
|
|
(33)
|
|
|
|
(3)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(3)
|
|
Less Restructuring
related expenses
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(111)
|
|
|
|
(36)
|
|
|
|
(11)
|
|
|
|
—
|
|
|
|
(158)
|
|
General and
Administrative (Non-GAAP)
|
|
$
|
3,841
|
|
|
$
|
3,687
|
|
|
$
|
3,681
|
|
|
$
|
4,143
|
|
|
$
|
15,352
|
|
|
$
|
3,018
|
|
|
$
|
3,457
|
|
|
$
|
2,715
|
|
|
$
|
2,885
|
|
|
$
|
12,075
|
|
Marin Software
Incorporated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP to Non-GAAP Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
|
March
31,
2017
|
|
|
June
30,
2017
|
|
|
September
30,
2017
|
|
|
December
31,
2017
|
|
|
December
31,
2017
|
|
|
March
31,
2018
|
|
|
June
30,
2018
|
|
|
September
30,
2018
|
|
|
December
31,
2018
|
|
|
December
31,
2018
|
|
(Unaudited; in
thousands)
|
Gross Profit
(GAAP)
|
|
$
|
12,009
|
|
|
$
|
10,535
|
|
|
$
|
9,968
|
|
|
$
|
9,959
|
|
|
$
|
42,471
|
|
|
$
|
7,830
|
|
|
$
|
7,288
|
|
|
$
|
6,694
|
|
|
$
|
9,665
|
|
|
$
|
31,477
|
|
Plus Stock-based
compensation
|
|
|
311
|
|
|
|
152
|
|
|
|
166
|
|
|
|
193
|
|
|
|
822
|
|
|
|
204
|
|
|
|
172
|
|
|
|
160
|
|
|
|
203
|
|
|
|
739
|
|
Plus Amortization of
internally developed software
|
|
|
788
|
|
|
|
867
|
|
|
|
1,016
|
|
|
|
998
|
|
|
|
3,669
|
|
|
|
957
|
|
|
|
986
|
|
|
|
928
|
|
|
|
903
|
|
|
|
3,774
|
|
Plus Amortization of
intangible assets
|
|
|
247
|
|
|
|
245
|
|
|
|
240
|
|
|
|
239
|
|
|
|
971
|
|
|
|
237
|
|
|
|
233
|
|
|
|
234
|
|
|
|
234
|
|
|
|
938
|
|
Plus Amortization of
deferred costs to fulfill contracts
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
173
|
|
|
|
156
|
|
|
|
143
|
|
|
|
132
|
|
|
|
604
|
|
Plus Restructuring
related expenses
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
139
|
|
|
|
—
|
|
|
|
37
|
|
|
|
—
|
|
|
|
176
|
|
Less Deferral of costs
to fulfill contracts
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(115)
|
|
|
|
(81)
|
|
|
|
(76)
|
|
|
|
(58)
|
|
|
|
(330)
|
|
Gross Profit
(Non-GAAP)
|
|
$
|
13,355
|
|
|
$
|
11,799
|
|
|
$
|
11,390
|
|
|
$
|
11,389
|
|
|
$
|
47,933
|
|
|
$
|
9,425
|
|
|
$
|
8,754
|
|
|
$
|
8,120
|
|
|
$
|
11,079
|
|
|
$
|
37,378
|
|
Operating Loss
(GAAP)
|
|
$
|
(5,982)
|
|
|
$
|
(9,563)
|
|
|
$
|
(7,254)
|
|
|
$
|
(7,471)
|
|
|
$
|
(30,270)
|
|
|
$
|
(9,083)
|
|
|
$
|
(8,449)
|
|
|
$
|
(21,734)
|
|
|
$
|
(2,985)
|
|
|
$
|
(42,251)
|
|
Plus Impairment of
goodwill
|
|
|
—
|
|
|
|
2,797
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,797
|
|
|
|
—
|
|
|
|
—
|
|
|
|
14,740
|
|
|
|
—
|
|
|
|
14,740
|
|
Plus Stock-based
compensation
|
|
|
1,842
|
|
|
|
918
|
|
|
|
923
|
|
|
|
1,021
|
|
|
|
4,704
|
|
|
|
1,028
|
|
|
|
1,030
|
|
|
|
875
|
|
|
|
1,038
|
|
|
|
3,971
|
|
Plus Amortization of
internally developed software
|
|
|
788
|
|
|
|
867
|
|
|
|
1,016
|
|
|
|
998
|
|
|
|
3,669
|
|
|
|
957
|
|
|
|
986
|
|
|
|
928
|
|
|
|
903
|
|
|
|
3,774
|
|
Plus Amortization of
intangible assets
|
|
|
730
|
|
|
|
721
|
|
|
|
700
|
|
|
|
699
|
|
|
|
2,850
|
|
|
|
690
|
|
|
|
651
|
|
|
|
598
|
|
|
|
598
|
|
|
|
2,537
|
|
Plus Amortization of
deferred costs to fulfill contracts
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
173
|
|
|
|
156
|
|
|
|
143
|
|
|
|
132
|
|
|
|
604
|
|
Plus Amortization of
deferred costs to obtain contracts
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
432
|
|
|
|
384
|
|
|
|
336
|
|
|
|
289
|
|
|
|
1,441
|
|
Plus Restructuring
related expenses
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
862
|
|
|
|
84
|
|
|
|
161
|
|
|
|
169
|
|
|
|
1,276
|
|
Less Capitalization of
internally developed software
|
|
|
(543)
|
|
|
|
(413)
|
|
|
|
(442)
|
|
|
|
(670)
|
|
|
|
(2,068)
|
|
|
|
(693)
|
|
|
|
(602)
|
|
|
|
(398)
|
|
|
|
(436)
|
|
|
|
(2,129)
|
|
Less Deferral of costs
to fulfill contracts
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(115)
|
|
|
|
(81)
|
|
|
|
(76)
|
|
|
|
(58)
|
|
|
|
(330)
|
|
Less Deferral of costs
to obtain contracts
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(257)
|
|
|
|
(335)
|
|
|
|
(283)
|
|
|
|
(219)
|
|
|
|
(1,094)
|
|
Operating Loss
(Non-GAAP)
|
|
$
|
(3,165)
|
|
|
$
|
(4,673)
|
|
|
$
|
(5,057)
|
|
|
$
|
(5,423)
|
|
|
$
|
(18,318)
|
|
|
$
|
(6,006)
|
|
|
$
|
(6,176)
|
|
|
$
|
(4,710)
|
|
|
$
|
(569)
|
|
|
$
|
(17,461)
|
|
Net Loss
(GAAP)
|
|
$
|
(6,126)
|
|
|
$
|
(10,545)
|
|
|
$
|
(7,549)
|
|
|
$
|
(7,271)
|
|
|
$
|
(31,491)
|
|
|
$
|
(9,112)
|
|
|
$
|
(8,276)
|
|
|
$
|
(21,494)
|
|
|
$
|
(2,787)
|
|
|
$
|
(41,669)
|
|
Plus Impairment of
goodwill
|
|
|
—
|
|
|
|
2,797
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,797
|
|
|
|
—
|
|
|
|
—
|
|
|
|
14,740
|
|
|
|
—
|
|
|
|
14,740
|
|
Plus Stock-based
compensation
|
|
|
1,842
|
|
|
|
918
|
|
|
|
923
|
|
|
|
1,021
|
|
|
|
4,704
|
|
|
|
1,028
|
|
|
|
1,030
|
|
|
|
875
|
|
|
|
1,038
|
|
|
|
3,971
|
|
Plus Amortization of
internally developed software
|
|
|
788
|
|
|
|
867
|
|
|
|
1,016
|
|
|
|
998
|
|
|
|
3,669
|
|
|
|
957
|
|
|
|
986
|
|
|
|
928
|
|
|
|
903
|
|
|
|
3,774
|
|
Plus Amortization of
intangible assets
|
|
|
730
|
|
|
|
721
|
|
|
|
700
|
|
|
|
699
|
|
|
|
2,850
|
|
|
|
690
|
|
|
|
651
|
|
|
|
598
|
|
|
|
598
|
|
|
|
2,537
|
|
Plus Amortization of
deferred costs to fulfill contracts
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
173
|
|
|
|
156
|
|
|
|
143
|
|
|
|
132
|
|
|
|
604
|
|
Plus Amortization of
deferred costs to obtain contracts
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
432
|
|
|
|
384
|
|
|
|
336
|
|
|
|
289
|
|
|
|
1,441
|
|
Plus Non-cash expenses
related to debt agreements
|
|
|
6
|
|
|
|
7
|
|
|
|
2
|
|
|
|
—
|
|
|
|
15
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Plus Restructuring
related expenses
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
862
|
|
|
|
84
|
|
|
|
161
|
|
|
|
169
|
|
|
|
1,276
|
|
Less Capitalization of
internally developed software
|
|
|
(543)
|
|
|
|
(413)
|
|
|
|
(442)
|
|
|
|
(670)
|
|
|
|
(2,068)
|
|
|
|
(693)
|
|
|
|
(602)
|
|
|
|
(398)
|
|
|
|
(436)
|
|
|
|
(2,129)
|
|
Less Deferral of costs
to fulfill contracts
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(115)
|
|
|
|
(81)
|
|
|
|
(76)
|
|
|
|
(58)
|
|
|
|
(330)
|
|
Less Deferral of costs
to obtain contracts
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(257)
|
|
|
|
(335)
|
|
|
|
(283)
|
|
|
|
(219)
|
|
|
|
(1,094)
|
|
Net Loss
(Non-GAAP)
|
|
$
|
(3,303)
|
|
|
$
|
(5,648)
|
|
|
$
|
(5,350)
|
|
|
$
|
(5,223)
|
|
|
$
|
(19,524)
|
|
|
$
|
(6,035)
|
|
|
$
|
(6,003)
|
|
|
$
|
(4,470)
|
|
|
$
|
(371)
|
|
|
$
|
(16,879)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marin Software
Incorporated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of
Non-GAAP Earnings Per Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
|
March
31,
2017
|
|
|
June
30,
2017
|
|
|
September
30,
2017
|
|
|
December
31,
2017
|
|
|
December
31,
2017
|
|
|
March
31,
2018
|
|
|
June
30,
2018
|
|
|
September
30,
2018
|
|
|
December
31,
2018
|
|
|
December
31,
2018
|
|
(Unaudited; in
thousands, except per share data)
|
Net Loss
(Non-GAAP)
|
|
$
|
(3,303)
|
|
|
$
|
(5,648)
|
|
|
$
|
(5,350)
|
|
|
$
|
(5,223)
|
|
|
$
|
(19,524)
|
|
|
$
|
(6,035)
|
|
|
$
|
(6,003)
|
|
|
$
|
(4,470)
|
|
|
$
|
(371)
|
|
|
$
|
(16,879)
|
|
Weighted-average
shares outstanding, basic and diluted
|
|
|
5,583
|
|
|
|
5,640
|
|
|
|
5,651
|
|
|
|
5,677
|
|
|
|
5,638
|
|
|
|
5,736
|
|
|
|
5,767
|
|
|
|
5,787
|
|
|
|
5,841
|
|
|
|
5,783
|
|
Non-GAAP net loss per
common share, basic and diluted
|
|
$
|
(0.59)
|
|
|
$
|
(1.00)
|
|
|
$
|
(0.95)
|
|
|
$
|
(0.92)
|
|
|
$
|
(3.46)
|
|
|
$
|
(1.05)
|
|
|
$
|
(1.04)
|
|
|
$
|
(0.77)
|
|
|
$
|
(0.06)
|
|
|
$
|
(2.92)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marin Software
Incorporated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Net Loss to Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
|
March
31,
2017
|
|
|
June
30,
2017
|
|
|
September
30,
2017
|
|
|
December
31,
2017
|
|
|
December
31,
2017
|
|
|
March
31,
2018
|
|
|
June
30,
2018
|
|
|
September
30,
2018
|
|
|
December
31,
2018
|
|
|
December
31,
2018
|
|
(Unaudited; in
thousands)
|
Net Loss
|
|
$
|
(6,126)
|
|
|
$
|
(10,545)
|
|
|
$
|
(7,549)
|
|
|
$
|
(7,271)
|
|
|
$
|
(31,491)
|
|
|
$
|
(9,112)
|
|
|
$
|
(8,276)
|
|
|
$
|
(21,494)
|
|
|
$
|
(2,787)
|
|
|
$
|
(41,669)
|
|
Depreciation
|
|
|
1,336
|
|
|
|
1,263
|
|
|
|
1,149
|
|
|
|
1,010
|
|
|
|
4,758
|
|
|
|
798
|
|
|
|
759
|
|
|
|
628
|
|
|
|
473
|
|
|
|
2,658
|
|
Amortization of
internally developed software
|
|
|
788
|
|
|
|
867
|
|
|
|
1,016
|
|
|
|
998
|
|
|
|
3,669
|
|
|
|
957
|
|
|
|
986
|
|
|
|
928
|
|
|
|
903
|
|
|
|
3,774
|
|
Amortization of
intangible assets
|
|
|
730
|
|
|
|
721
|
|
|
|
700
|
|
|
|
699
|
|
|
|
2,850
|
|
|
|
690
|
|
|
|
651
|
|
|
|
598
|
|
|
|
598
|
|
|
|
2,537
|
|
Amortization of
deferred costs to obtain and fulfill contracts
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
605
|
|
|
|
540
|
|
|
|
479
|
|
|
|
421
|
|
|
|
2,045
|
|
Provision for income
taxes
|
|
|
406
|
|
|
|
419
|
|
|
|
151
|
|
|
|
31
|
|
|
|
1,007
|
|
|
|
324
|
|
|
|
204
|
|
|
|
96
|
|
|
|
387
|
|
|
|
1,011
|
|
Impairment of
goodwill
|
|
|
—
|
|
|
|
2,797
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,797
|
|
|
|
—
|
|
|
|
—
|
|
|
|
14,740
|
|
|
|
—
|
|
|
|
14,740
|
|
Stock-based
compensation
|
|
|
1,842
|
|
|
|
918
|
|
|
|
923
|
|
|
|
1,021
|
|
|
|
4,704
|
|
|
|
1,028
|
|
|
|
1,030
|
|
|
|
875
|
|
|
|
1,038
|
|
|
|
3,971
|
|
Capitalization of
internally developed software
|
|
|
(543)
|
|
|
|
(413)
|
|
|
|
(442)
|
|
|
|
(670)
|
|
|
|
(2,068)
|
|
|
|
(693)
|
|
|
|
(602)
|
|
|
|
(398)
|
|
|
|
(436)
|
|
|
|
(2,129)
|
|
Deferral of costs to
obtain and fulfill contracts
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(372)
|
|
|
|
(416)
|
|
|
|
(359)
|
|
|
|
(277)
|
|
|
|
(1,424)
|
|
Restructuring related
expenses
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
862
|
|
|
|
84
|
|
|
|
161
|
|
|
|
169
|
|
|
|
1,276
|
|
Other (income)
expenses, net
|
|
|
(262)
|
|
|
|
563
|
|
|
|
144
|
|
|
|
(231)
|
|
|
|
214
|
|
|
|
(295)
|
|
|
|
(377)
|
|
|
|
(336)
|
|
|
|
(585)
|
|
|
|
(1,593)
|
|
Adjusted
EBITDA
|
|
$
|
(1,829)
|
|
|
$
|
(3,410)
|
|
|
$
|
(3,908)
|
|
|
$
|
(4,413)
|
|
|
$
|
(13,560)
|
|
|
$
|
(5,208)
|
|
|
$
|
(5,417)
|
|
|
$
|
(4,082)
|
|
|
$
|
(96)
|
|
|
$
|
(14,803)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/marin-software-announces-fourth-quarter-2018-financial-results-300796265.html
SOURCE Marin Software