SAN FRANCISCO, Oct. 26, 2020 /PRNewswire/ -- Marin Software
Incorporated (NASDAQ: MRIN), a leading provider of digital
marketing software for performance-driven advertisers and agencies,
today announced the following estimated preliminary financial
results for the third quarter ended September 30, 2020:
- Net revenues are estimated to be $6.8
million, as compared to $11.7
million in the third quarter of 2019.
- GAAP loss from operations is estimated to range from
$(4.2) million to $(4.5) million, as compared to $(4.1) million for the third quarter of
2019.
- Non-GAAP loss from operations is estimated to range from
$(2.7) million to $(3.0) million, as compared to $(2.9) million for the third quarter of
2019.
- Cash, cash equivalents and restricted cash are estimated to be
$9.0 million in aggregate as of
September 30, 2020.
The estimated preliminary results presented above are based on
the information available to us as of the date of this press
release. Our actual results for the third quarter ended
September 30, 2020 may vary from
these estimated preliminary results and will not be finalized until
after the date of this press release.
A reconciliation of the estimated preliminary non-GAAP loss from
operations to the corresponding GAAP measure is provided in the
table included in this press release. An explanation of
non-GAAP loss from operations is also included below, under the
heading Non-GAAP Financial Measures.
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. Marin Software 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 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 GAAP measures, 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. A reconciliation of the non-GAAP
financial measure to its most directly comparable GAAP measure has
been provided in the financial statement tables included below in
this press release. Investors are encouraged to review the
reconciliation of this non-GAAP financial measure to its most
directly comparable GAAP financial measure.
Non-GAAP loss from operations. Marin defines
non-GAAP loss from operations as GAAP loss from operations,
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 and
divestitures.
Forward-Looking Statements
This press release contains forward-looking statements,
including our estimated preliminary financial results for the three
months ended September 30, 2020.
Actual results for the three months ended September 30, 2020 may differ materially from
these estimated preliminary results. These estimates should
not be viewed as a substitute for our full financial statements
prepared in accordance with U.S. generally accepted accounting
principles. Accordingly, you should not place undue reliance on
this preliminary data.
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 the effects of the
continuing global outbreak of COVID-19 on demand for our products
and services, the amount of digital advertising spend managed by
our customers using our products, the productivity of our personnel
and other aspects of our business; our ability to maintain or grow
sales to new and existing customers; any adverse changes in our
relationships with and access to publishers and advertising
agencies and strategic business partners, including any adverse
changes in our revenue sharing agreement with Google; our ability
to manage expenses and liquidity and raise additional capital; our
ability complete successfully our recent restructuring plan and
realize cost savings; our ability to retain and attract qualified
management, technical and sales and marketing personnel; any
default under or required repayment of our indebtedness or any
delays or reductions in forgiveness of such indebtedness; delays in
the release of updates to our product platform or new features or
delays in customer deployment of any such updates or features;
competitive factors, including but not limited to pricing
pressures, entry of new competitors and new applications; quarterly
fluctuations in our operating results due to a number of factors;
inability to adequately forecast our future 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 October 26,
2020. Marin assumes no obligation to, and expressly
disclaims any obligation to update any such forward-looking
statements after the date of this release.
Reconciliation of Estimated Preliminary GAAP Loss from
Operations to
Estimated Preliminary Non-GAAP Loss from Operations
|
|
Actual
|
|
Estimated Third
Quarter 2020
|
|
|
|
|
September 30,
|
|
|
|
|
|
|
|
|
|
|
(Unaudited; in
millions)
|
|
|
2019
|
|
|
|
Low
|
|
|
High
|
|
Operating Loss
(GAAP)
|
|
$
|
(4.1)
|
|
$
|
(4.2)
|
|
$
|
(4.5)
|
Plus Stock-based
compensation
|
|
|
|
0.7
|
|
|
|
0.2
|
|
|
|
0.2
|
Plus Amortization of
internally developed software
|
|
|
|
1.1
|
|
|
|
0.7
|
|
|
|
0.7
|
Plus Amortization of
intangible assets
|
|
|
|
0.4
|
|
|
|
-
|
|
|
|
-
|
Plus Restructuring
related expenses
|
|
|
|
-
|
|
|
|
1.1
|
|
|
|
1.1
|
Less Capitalization of
internally developed software
|
|
|
|
(1.0)
|
|
|
|
(0.5)
|
|
|
|
(0.5)
|
Operating Loss
(Non-GAAP)
|
|
$
|
(2.9)
|
|
$
|
(2.7)
|
|
$
|
(3.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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SOURCE Marin Software