SAN FRANCISCO, Nov. 7, 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 third quarter ended
September 30, 2019.
"In Q3 2019, Marin expanded the number of bid strategies we
offer with the addition of Awareness Targeting, Full-Funnel
Optimization and Amazon Bidding," said Chris Lien, Chief Executive Officer of Marin
Software. "Whether you're focused on driving traffic to your
website or app, increasing app downloads or driving sales on
Amazon, Marin's solutions help marketers make better bidding
decisions, so they can see greater returns from their online
advertising investments."
Third Quarter 2019 Business and Product Release
Highlights:
- Added support for Google's new Impression Share and Impression
Rate metrics in Marin Search, giving
advertisers better visibility into where their ads appear on the
search results page.
- Released Awareness Targeting bid strategy to help advertisers
drive brand awareness with Google paid search ads.
- Launched Full-Funnel Optimization, so that advertisers with
longer sales cycles can optimize to upper-funnel leads while
factoring in the value of the sale and customer lifetime
value.
- Added support for Google's Gmail ads placement, giving
advertisers extended reach and targeting options.
- Added support for Facebook Automatic Placements, giving
advertisers the ability to optimize their ads across the entire
Facebook family of apps and services (versus manually selecting the
placements).
- Released automated bidding for Amazon Sponsored Product Ads,
complementing Amazon bidding to achieve better performance for
Amazon advertisers.
- Incorporated "Buy Box" metrics for Amazon allowing Advertisers
to adjust their campaigns based on whether they are the default
purchase option.
- Released an Intelligent Tracking Prevention (ITP) Impact
Analysis Tool which estimates missing conversion data due to ITP
restrictions, providing customers with the ability to understand
the impact of these restrictions.
Third Quarter 2019 Financial Updates:
- Net revenues totaled $11.7
million, a year-over-year decrease of 11% when compared to
$13.2 million in the third quarter of
2018.
- GAAP loss from operations was ($4.1)
million, resulting in a GAAP operating margin of (35%), as
compared to a GAAP loss from operations of ($21.7) million and a GAAP operating margin of
(165%) for the third quarter of 2018.
- Non-GAAP loss from operations was ($2.9)
million, resulting in a non-GAAP operating margin of (25%),
as compared to a non-GAAP loss from operations of ($4.8) million and a non-GAAP operating margin of
(37%) for the third quarter of 2018.
- Cash, cash equivalents and restricted cash totaled $10.1 million as of September 30, 2019, as compared to $11.5 million as of December 31, 2018.
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
fourth quarter of 2019 as follows:
Forward-Looking
Guidance
|
In
millions
|
|
|
|
|
|
|
|
|
|
|
|
|
Range of
Estimate
|
|
|
|
|
From
|
|
|
To
|
|
|
Three Months Ended
December 31, 2019
|
|
|
|
|
|
|
|
|
|
Revenues,
net
|
|
$
|
10.4
|
|
|
$
|
10.9
|
|
|
Non-GAAP loss from
operations
|
|
|
(3.7)
|
|
|
|
(3.2)
|
|
|
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 ended September 30, 2019, and
its outlook for the future. To access the call, please dial (855)
327-6837 in the United States or
(631) 891-4304 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=136572.
Following the completion of the call through 11:59 p.m. Eastern Time on November 14, 2019, 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 10007869.
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, amortization of internally developed
software and intangible assets, impairment of goodwill
and long-lived assets, non-cash expenses related to debt
agreements, capitalization of internally developed software 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
and intangible assets, capitalization of internally developed
software, impairment of goodwill and long-lived assets, benefit
from or provision for income taxes, other income, 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.
Prior to 2019, Marin also included deferred costs
associated with contracts and the related amortization as an
adjustment to net loss for the purposes of calculating the
non-GAAP financial measures described above, but has updated its
definition to no longer include those items. Non-GAAP financial
measures for prior periods have been adjusted to conform
to current period presentation.
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 fourth 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 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; our ability to manage
expenses and liquidity and raise additional capital; our ability to
maintain or expand our sales and marketing capabilities; our
ability to retain and attract qualified management and technical
personnel or implement any planned personnel reductions; 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; level of usage and advertising spend managed on
our 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; 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 our ability to acquire
and integrate other businesses or sell business assets. 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 November 7, 2019. Marin assumes no obligation to,
and expressly disclaims any obligation to update any such
forward-looking statements after the date of this release.
Investor Relations Contact:
Brad Kinnish
CFO, Marin Software Incorporated
(415) 430-7646
ir@marinsoftware.com
Media Contact:
Wesley MacLaggan
Marketing, Marin Software Incorporated
(415) 399-2580
press@marinsoftware.com
Marin Software
Incorporated
|
Condensed
Consolidated Balance Sheets
|
(On a GAAP
basis)
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
|
December
31,
|
|
(Unaudited; in
thousands, except par value)
|
|
2019
|
|
|
2018
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
9,167
|
|
|
$
|
10,210
|
|
Restricted
cash
|
|
|
971
|
|
|
|
1,293
|
|
Accounts receivable,
net
|
|
|
9,258
|
|
|
|
12,906
|
|
Prepaid expenses and
other current assets
|
|
|
3,949
|
|
|
|
4,642
|
|
Total current
assets
|
|
|
23,345
|
|
|
|
29,051
|
|
Property and
equipment, net
|
|
|
9,763
|
|
|
|
11,815
|
|
Right-of-use assets,
operating leases
|
|
|
8,641
|
|
|
|
—
|
|
Goodwill
|
|
|
1,868
|
|
|
|
1,943
|
|
Intangible assets,
net
|
|
|
470
|
|
|
|
1,938
|
|
Other non-current
assets
|
|
|
1,508
|
|
|
|
2,045
|
|
Total
assets
|
|
$
|
45,595
|
|
|
$
|
46,792
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
1,908
|
|
|
$
|
2,699
|
|
Accrued expenses and
other current liabilities
|
|
|
10,721
|
|
|
|
10,632
|
|
Operating lease
liabilities
|
|
|
4,294
|
|
|
|
—
|
|
Total current
liabilities
|
|
|
16,923
|
|
|
|
13,331
|
|
Operating lease
liabilities, non-current
|
|
|
5,696
|
|
|
|
—
|
|
Other long-term
liabilities
|
|
|
2,098
|
|
|
|
4,090
|
|
Total
liabilities
|
|
|
24,717
|
|
|
|
17,421
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
|
Common stock, $0.001
par value
|
|
|
7
|
|
|
|
6
|
|
Additional paid-in
capital
|
|
|
298,553
|
|
|
|
295,116
|
|
Accumulated
deficit
|
|
|
(276,595)
|
|
|
|
(264,713)
|
|
Accumulated other
comprehensive loss
|
|
|
(1,087)
|
|
|
|
(1,038)
|
|
Total
stockholders' equity
|
|
|
20,878
|
|
|
|
29,371
|
|
Total liabilities and
stockholders' equity
|
|
$
|
45,595
|
|
|
$
|
46,792
|
|
|
|
|
|
|
|
|
|
|
Marin Software
Incorporated
|
Condensed
Consolidated Statements of Operations
|
(On a GAAP
basis)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
|
Nine Months
Ended
September 30,
|
|
(Unaudited; in
thousands, except per share data)
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
Revenues,
net
|
|
$
|
11,728
|
|
|
$
|
13,153
|
|
|
$
|
37,652
|
|
|
$
|
42,806
|
|
Cost of
revenues
|
|
|
5,567
|
|
|
|
6,459
|
|
|
|
17,307
|
|
|
|
20,994
|
|
Gross
profit
|
|
|
6,161
|
|
|
|
6,694
|
|
|
|
20,345
|
|
|
|
21,812
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
|
3,732
|
|
|
|
5,296
|
|
|
|
12,453
|
|
|
|
18,831
|
|
Research and
development
|
|
|
3,872
|
|
|
|
5,471
|
|
|
|
13,427
|
|
|
|
17,443
|
|
General and
administrative
|
|
|
2,631
|
|
|
|
2,921
|
|
|
|
8,129
|
|
|
|
10,064
|
|
Impairment of
goodwill
|
|
|
—
|
|
|
|
14,740
|
|
|
|
—
|
|
|
|
14,740
|
|
Total operating
expenses
|
|
|
10,235
|
|
|
|
28,428
|
|
|
|
34,009
|
|
|
|
61,078
|
|
Loss from
operations
|
|
|
(4,074)
|
|
|
|
(21,734)
|
|
|
|
(13,664)
|
|
|
|
(39,266)
|
|
Other income,
net
|
|
|
640
|
|
|
|
336
|
|
|
|
1,712
|
|
|
|
1,008
|
|
Loss before (benefit
from) provision for income taxes
|
|
|
(3,434)
|
|
|
|
(21,398)
|
|
|
|
(11,952)
|
|
|
|
(38,258)
|
|
(Benefit from)
provision for income taxes
|
|
|
(161)
|
|
|
|
96
|
|
|
|
(70)
|
|
|
|
624
|
|
Net loss
|
|
$
|
(3,273)
|
|
|
$
|
(21,494)
|
|
|
$
|
(11,882)
|
|
|
$
|
(38,882)
|
|
Net loss per common
share, basic and diluted
|
|
$
|
(0.49)
|
|
|
$
|
(3.71)
|
|
|
$
|
(1.90)
|
|
|
$
|
(6.75)
|
|
Weighted-average
shares outstanding, basic and diluted
|
|
|
6,631
|
|
|
|
5,787
|
|
|
|
6,262
|
|
|
|
5,763
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marin Software
Incorporated
|
Condensed
Consolidated Statements of Cash Flows
|
(On a GAAP
basis)
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
(Unaudited; in
thousands)
|
|
2019
|
|
|
2018
|
|
Operating
activities
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(11,882)
|
|
|
$
|
(38,882)
|
|
Adjustments to
reconcile net loss to net cash provided by (used in) operating
activities:
|
|
|
|
|
|
|
|
|
Impairment of
goodwill
|
|
|
—
|
|
|
|
14,740
|
|
Depreciation
|
|
|
1,475
|
|
|
|
2,185
|
|
Amortization of
internally developed software
|
|
|
2,762
|
|
|
|
2,871
|
|
Amortization of
intangible assets
|
|
|
1,468
|
|
|
|
1,939
|
|
Loss on disposals of
property and equipment and right-of-use assets
|
|
|
13
|
|
|
|
3
|
|
Amortization of
deferred costs to obtain and fulfill contracts
|
|
|
1,240
|
|
|
|
1,624
|
|
Unrealized foreign
currency gains
|
|
|
(52)
|
|
|
|
(12)
|
|
Stock-based
compensation expense related to equity awards
|
|
|
2,100
|
|
|
|
2,933
|
|
Provision for bad
debts
|
|
|
(47)
|
|
|
|
(194)
|
|
Net change in
operating leases
|
|
|
(421)
|
|
|
|
—
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
3,728
|
|
|
|
3,773
|
|
Prepaid expenses and
other assets
|
|
|
1
|
|
|
|
(824)
|
|
Accounts
payable
|
|
|
(774)
|
|
|
|
(751)
|
|
Accrued expenses and
other current liabilities
|
|
|
737
|
|
|
|
(181)
|
|
Net cash provided by
(used in) operating activities
|
|
|
348
|
|
|
|
(10,776)
|
|
Investing
activities
|
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
(92)
|
|
|
|
(580)
|
|
Proceeds from
disposals of property and equipment
|
|
|
—
|
|
|
|
3
|
|
Capitalization of
internally developed software
|
|
|
(1,874)
|
|
|
|
(1,693)
|
|
Net cash used in
investing activities
|
|
|
(1,966)
|
|
|
|
(2,270)
|
|
Financing
activities
|
|
|
|
|
|
|
|
|
Proceeds from
issuance of common shares through at-the-market offering, net of
offering costs
|
|
|
1,504
|
|
|
|
—
|
|
Payment of principal
on finance lease liabilities
|
|
|
(986)
|
|
|
|
(971)
|
|
Employee taxes paid
for withheld shares upon equity award settlement
|
|
|
(295)
|
|
|
|
(137)
|
|
Proceeds from
employee stock purchase plan, net
|
|
|
123
|
|
|
|
249
|
|
Net cash provided by
(used in) financing activities
|
|
|
346
|
|
|
|
(859)
|
|
Effect of foreign
exchange rate changes on cash and cash equivalents and restricted
cash
|
|
|
(93)
|
|
|
|
(242)
|
|
Net decrease in cash
and cash equivalents and restricted cash
|
|
|
(1,365)
|
|
|
|
(14,147)
|
|
Cash and cash
equivalents and restricted cash
|
|
|
|
|
|
|
|
|
Beginning of
period
|
|
|
11,503
|
|
|
|
28,837
|
|
End of
period
|
|
$
|
10,138
|
|
|
$
|
14,690
|
|
|
|
|
|
|
|
|
|
|
Marin Software
Incorporated
|
Reconciliation of
GAAP to Non-GAAP Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Year
Ended
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
2018
|
|
|
June
30,
2018
|
|
|
September
30,
2018
|
|
|
December
31,
2018
|
|
|
|
December
31,
2018
|
|
|
|
March
31,
2019
|
|
|
June
30,
2019
|
|
|
September
30,
2019
|
|
(Unaudited; in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and Marketing
(GAAP)
|
|
$
|
7,381
|
|
|
$
|
6,154
|
|
|
$
|
5,296
|
|
|
$
|
4,594
|
|
|
|
$
|
23,425
|
|
|
|
$
|
4,634
|
|
|
$
|
4,087
|
|
|
$
|
3,732
|
|
Less Stock-based
compensation
|
|
|
(240)
|
|
|
|
(271)
|
|
|
|
(181)
|
|
|
|
(265)
|
|
|
|
|
(957)
|
|
|
|
|
(180)
|
|
|
|
(205)
|
|
|
|
(155)
|
|
Less Amortization of
intangible assets
|
|
|
(213)
|
|
|
|
(184)
|
|
|
|
(130)
|
|
|
|
(131)
|
|
|
|
|
(658)
|
|
|
|
|
(64)
|
|
|
|
—
|
|
|
|
—
|
|
Less Restructuring
related expenses
|
|
|
(497)
|
|
|
|
(48)
|
|
|
|
(113)
|
|
|
|
(169)
|
|
|
|
|
(827)
|
|
|
|
|
(157)
|
|
|
|
(66)
|
|
|
|
—
|
|
Sales and Marketing
(Non-GAAP)
|
|
$
|
6,431
|
|
|
$
|
5,651
|
|
|
$
|
4,872
|
|
|
$
|
4,029
|
|
|
|
$
|
20,983
|
|
|
|
$
|
4,233
|
|
|
$
|
3,816
|
|
|
$
|
3,577
|
|
Research and
Development (GAAP)
|
|
$
|
6,155
|
|
|
$
|
5,817
|
|
|
$
|
5,471
|
|
|
$
|
5,007
|
|
|
|
$
|
22,450
|
|
|
|
$
|
4,895
|
|
|
$
|
4,660
|
|
|
$
|
3,872
|
|
Less Stock-based
compensation
|
|
|
(339)
|
|
|
|
(314)
|
|
|
|
(339)
|
|
|
|
(406)
|
|
|
|
|
(1,398)
|
|
|
|
|
(281)
|
|
|
|
(269)
|
|
|
|
(266)
|
|
Less Amortization of
intangible assets
|
|
|
(237)
|
|
|
|
(234)
|
|
|
|
(234)
|
|
|
|
(233)
|
|
|
|
|
(938)
|
|
|
|
|
(234)
|
|
|
|
(234)
|
|
|
|
(234)
|
|
Less Restructuring
related expenses
|
|
|
(115)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
(115)
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Plus Capitalization of
internally developed software
|
|
|
693
|
|
|
|
602
|
|
|
|
398
|
|
|
|
436
|
|
|
|
|
2,129
|
|
|
|
|
482
|
|
|
|
388
|
|
|
|
1,004
|
|
Research and
Development (Non-GAAP)
|
|
$
|
6,157
|
|
|
$
|
5,871
|
|
|
$
|
5,296
|
|
|
$
|
4,804
|
|
|
|
$
|
22,128
|
|
|
|
$
|
4,862
|
|
|
$
|
4,545
|
|
|
$
|
4,376
|
|
General and
Administrative (GAAP)
|
|
$
|
3,377
|
|
|
$
|
3,766
|
|
|
$
|
2,921
|
|
|
$
|
3,049
|
|
|
|
$
|
13,113
|
|
|
|
$
|
3,221
|
|
|
$
|
2,277
|
|
|
$
|
2,631
|
|
Less Stock-based
compensation
|
|
|
(245)
|
|
|
|
(273)
|
|
|
|
(195)
|
|
|
|
(164)
|
|
|
|
|
(877)
|
|
|
|
|
(99)
|
|
|
|
(146)
|
|
|
|
(105)
|
|
Less Amortization of
intangible assets
|
|
|
(3)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
(3)
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Less Restructuring
related expenses
|
|
|
(111)
|
|
|
|
(36)
|
|
|
|
(11)
|
|
|
|
—
|
|
|
|
|
(158)
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
General and
Administrative (Non-GAAP)
|
|
$
|
3,018
|
|
|
$
|
3,457
|
|
|
$
|
2,715
|
|
|
$
|
2,885
|
|
|
|
$
|
12,075
|
|
|
|
$
|
3,122
|
|
|
$
|
2,131
|
|
|
$
|
2,526
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marin Software
Incorporated
|
Reconciliation of
GAAP to Non-GAAP Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Year
Ended
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
2018
|
|
|
June
30,
2018
|
|
|
September
30,
2018
|
|
|
December
31,
2018
|
|
|
|
December
31,
2018
|
|
|
|
March
31,
2019
|
|
|
June
30,
2019
|
|
|
September
30,
2019
|
|
(Unaudited; in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit
(GAAP)
|
|
$
|
7,830
|
|
|
$
|
7,288
|
|
|
$
|
6,694
|
|
|
$
|
9,665
|
|
|
|
$
|
31,477
|
|
|
|
$
|
7,637
|
|
|
$
|
6,547
|
|
|
$
|
6,161
|
|
Plus Stock-based
compensation
|
|
|
204
|
|
|
|
172
|
|
|
|
160
|
|
|
|
203
|
|
|
|
|
739
|
|
|
|
|
125
|
|
|
|
142
|
|
|
|
127
|
|
Plus Amortization of
internally developed software
|
|
|
957
|
|
|
|
986
|
|
|
|
928
|
|
|
|
903
|
|
|
|
|
3,774
|
|
|
|
|
750
|
|
|
|
955
|
|
|
|
1,057
|
|
Plus Amortization of
intangible assets
|
|
|
237
|
|
|
|
233
|
|
|
|
234
|
|
|
|
234
|
|
|
|
|
938
|
|
|
|
|
234
|
|
|
|
234
|
|
|
|
234
|
|
Plus Restructuring
related expenses
|
|
|
139
|
|
|
|
—
|
|
|
|
37
|
|
|
|
—
|
|
|
|
|
176
|
|
|
|
|
6
|
|
|
|
—
|
|
|
|
—
|
|
Gross Profit
(Non-GAAP)
|
|
$
|
9,367
|
|
|
$
|
8,679
|
|
|
$
|
8,053
|
|
|
$
|
11,005
|
|
|
|
$
|
37,104
|
|
|
|
$
|
8,752
|
|
|
$
|
7,878
|
|
|
$
|
7,579
|
|
Operating Loss
(GAAP)
|
|
$
|
(9,083)
|
|
|
$
|
(8,449)
|
|
|
$
|
(21,734)
|
|
|
$
|
(2,985)
|
|
|
|
$
|
(42,251)
|
|
|
|
$
|
(5,113)
|
|
|
$
|
(4,477)
|
|
|
$
|
(4,074)
|
|
Plus Impairment of
goodwill
|
|
|
—
|
|
|
|
—
|
|
|
|
14,740
|
|
|
|
—
|
|
|
|
|
14,740
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Plus Stock-based
compensation
|
|
|
1,028
|
|
|
|
1,030
|
|
|
|
875
|
|
|
|
1,038
|
|
|
|
|
3,971
|
|
|
|
|
685
|
|
|
|
762
|
|
|
|
653
|
|
Plus Amortization of
internally developed software
|
|
|
957
|
|
|
|
986
|
|
|
|
928
|
|
|
|
903
|
|
|
|
|
3,774
|
|
|
|
|
750
|
|
|
|
955
|
|
|
|
1,057
|
|
Plus Amortization of
intangible assets
|
|
|
690
|
|
|
|
651
|
|
|
|
598
|
|
|
|
598
|
|
|
|
|
2,537
|
|
|
|
|
532
|
|
|
|
468
|
|
|
|
468
|
|
Plus Restructuring
related expenses
|
|
|
862
|
|
|
|
84
|
|
|
|
161
|
|
|
|
169
|
|
|
|
|
1,276
|
|
|
|
|
163
|
|
|
|
66
|
|
|
|
—
|
|
Less Capitalization of
internally developed software
|
|
|
(693)
|
|
|
|
(602)
|
|
|
|
(398)
|
|
|
|
(436)
|
|
|
|
|
(2,129)
|
|
|
|
|
(482)
|
|
|
|
(388)
|
|
|
|
(1,004)
|
|
Operating Loss
(Non-GAAP)
|
|
$
|
(6,239)
|
|
|
$
|
(6,300)
|
|
|
$
|
(4,830)
|
|
|
$
|
(713)
|
|
|
|
$
|
(18,082)
|
|
|
|
$
|
(3,465)
|
|
|
$
|
(2,614)
|
|
|
$
|
(2,900)
|
|
Net Loss
(GAAP)
|
|
$
|
(9,112)
|
|
|
$
|
(8,276)
|
|
|
$
|
(21,494)
|
|
|
$
|
(2,362)
|
|
|
|
$
|
(41,244)
|
|
|
|
$
|
(4,606)
|
|
|
$
|
(4,003)
|
|
|
$
|
(3,273)
|
|
Plus Impairment of
goodwill
|
|
|
—
|
|
|
|
—
|
|
|
|
14,740
|
|
|
|
—
|
|
|
|
|
14,740
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Plus Stock-based
compensation
|
|
|
1,028
|
|
|
|
1,030
|
|
|
|
875
|
|
|
|
1,038
|
|
|
|
|
3,971
|
|
|
|
|
685
|
|
|
|
762
|
|
|
|
653
|
|
Plus Amortization of
internally developed software
|
|
|
957
|
|
|
|
986
|
|
|
|
928
|
|
|
|
903
|
|
|
|
|
3,774
|
|
|
|
|
750
|
|
|
|
955
|
|
|
|
1,057
|
|
Plus Amortization of
intangible assets
|
|
|
690
|
|
|
|
651
|
|
|
|
598
|
|
|
|
598
|
|
|
|
|
2,537
|
|
|
|
|
532
|
|
|
|
468
|
|
|
|
468
|
|
Plus Restructuring
related expenses
|
|
|
862
|
|
|
|
84
|
|
|
|
161
|
|
|
|
169
|
|
|
|
|
1,276
|
|
|
|
|
163
|
|
|
|
66
|
|
|
|
—
|
|
Less Capitalization of
internally developed software
|
|
|
(693)
|
|
|
|
(602)
|
|
|
|
(398)
|
|
|
|
(436)
|
|
|
|
|
(2,129)
|
|
|
|
|
(482)
|
|
|
|
(388)
|
|
|
|
(1,004)
|
|
Net Loss
(Non-GAAP)
|
|
$
|
(6,268)
|
|
|
$
|
(6,127)
|
|
|
$
|
(4,590)
|
|
|
$
|
(90)
|
|
|
|
$
|
(17,075)
|
|
|
|
$
|
(2,958)
|
|
|
$
|
(2,140)
|
|
|
$
|
(2,099)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marin Software
Incorporated
|
Calculation of
Non-GAAP Earnings Per Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Year
Ended
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
2018
|
|
|
June
30,
2018
|
|
|
September
30,
2018
|
|
|
December
31,
2018
|
|
|
|
December
31,
2018
|
|
|
|
March
31,
2019
|
|
|
June
30,
2019
|
|
|
September
30,
2019
|
|
(Unaudited; in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss
(Non-GAAP)
|
|
$
|
(6,268)
|
|
|
$
|
(6,127)
|
|
|
$
|
(4,590)
|
|
|
$
|
(90)
|
|
|
|
$
|
(17,075)
|
|
|
|
$
|
(2,958)
|
|
|
$
|
(2,140)
|
|
|
$
|
(2,099)
|
|
Weighted-average
shares outstanding, basic and diluted
|
|
|
5,736
|
|
|
|
5,767
|
|
|
|
5,787
|
|
|
|
5,841
|
|
|
|
|
5,783
|
|
|
|
|
5,945
|
|
|
|
6,201
|
|
|
|
6,631
|
|
Non-GAAP net loss per
common share, basic and diluted
|
|
$
|
(1.09)
|
|
|
$
|
(1.06)
|
|
|
$
|
(0.79)
|
|
|
$
|
(0.02)
|
|
|
|
$
|
(2.95)
|
|
|
|
$
|
(0.50)
|
|
|
$
|
(0.35)
|
|
|
$
|
(0.32)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marin Software
Incorporated
|
Reconciliation of
Net Loss to Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Year
Ended
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
2018
|
|
|
June
30,
2018
|
|
|
September
30,
2018
|
|
|
December
31,
2018
|
|
|
|
December
31,
2018
|
|
|
|
March
31,
2019
|
|
|
June
30,
2019
|
|
|
September
30,
2019
|
|
(Unaudited; in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss
|
|
$
|
(9,112)
|
|
|
$
|
(8,276)
|
|
|
$
|
(21,494)
|
|
|
$
|
(2,362)
|
|
|
|
$
|
(41,244)
|
|
|
|
$
|
(4,606)
|
|
|
$
|
(4,003)
|
|
|
$
|
(3,273)
|
|
Depreciation
|
|
|
798
|
|
|
|
759
|
|
|
|
628
|
|
|
|
473
|
|
|
|
|
2,658
|
|
|
|
|
499
|
|
|
|
482
|
|
|
|
494
|
|
Amortization of
internally developed software
|
|
|
957
|
|
|
|
986
|
|
|
|
928
|
|
|
|
903
|
|
|
|
|
3,774
|
|
|
|
|
750
|
|
|
|
955
|
|
|
|
1,057
|
|
Amortization of
intangible assets
|
|
|
690
|
|
|
|
651
|
|
|
|
598
|
|
|
|
598
|
|
|
|
|
2,537
|
|
|
|
|
532
|
|
|
|
468
|
|
|
|
468
|
|
Provision for (benefit
from) income taxes
|
|
|
324
|
|
|
|
204
|
|
|
|
96
|
|
|
|
(38)
|
|
|
|
|
586
|
|
|
|
|
33
|
|
|
|
58
|
|
|
|
(161)
|
|
Impairment of
goodwill
|
|
|
—
|
|
|
|
—
|
|
|
|
14,740
|
|
|
|
—
|
|
|
|
|
14,740
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Stock-based
compensation
|
|
|
1,028
|
|
|
|
1,030
|
|
|
|
875
|
|
|
|
1,038
|
|
|
|
|
3,971
|
|
|
|
|
685
|
|
|
|
762
|
|
|
|
653
|
|
Capitalization of
internally developed software
|
|
|
(693)
|
|
|
|
(602)
|
|
|
|
(398)
|
|
|
|
(436)
|
|
|
|
|
(2,129)
|
|
|
|
|
(482)
|
|
|
|
(388)
|
|
|
|
(1,004)
|
|
Restructuring related
expenses
|
|
|
862
|
|
|
|
84
|
|
|
|
161
|
|
|
|
169
|
|
|
|
|
1,276
|
|
|
|
|
163
|
|
|
|
66
|
|
|
|
—
|
|
Other income,
net
|
|
|
(295)
|
|
|
|
(377)
|
|
|
|
(336)
|
|
|
|
(585)
|
|
|
|
|
(1,593)
|
|
|
|
|
(540)
|
|
|
|
(532)
|
|
|
|
(640)
|
|
Adjusted
EBITDA
|
|
$
|
(5,441)
|
|
|
$
|
(5,541)
|
|
|
$
|
(4,202)
|
|
|
$
|
(240)
|
|
|
|
$
|
(15,424)
|
|
|
|
$
|
(2,966)
|
|
|
$
|
(2,132)
|
|
|
$
|
(2,406)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/marin-software-announces-third-quarter-2019-financial-results-300954245.html
SOURCE Marin Software