SAN
FRANCISCO, Nov. 4, 2021
/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, 2021.
"With the holiday season fast approaching, the
improvements we've made this quarter to the MarinOne ecommerce
module will help ensure our advertisers get the most from their
marketing investments across retail media, search and social," said
Chris Lien, CEO of Marin
Software.
Third Quarter 2021 Product Highlights:
- Added new Insights, including Amazon Keyword Expansion, Amazon
Negative Keyword Expansion, Top Performing Amazon Ads, Amazon
Keyword Match Type Expansion, Low Volume Bid Strategies, and Bid
Changes Preview.
- Integrated SEO data from Google Search Console to improve
revenue and ROAS by focusing investment on those targets that can
benefit the most.
- Expanded the eCommerce module to include Instacart, Google
Shopping, Microsoft Shopping, and Criteo Retail, enabling a
comprehensive view across publishers including Amazon.
- Added reporting support for Amazon Sponsored
Display Audience targets.
- Introduced support for keyword recommendations on new Amazon
groups, allowing advertisers with no existing keywords to get
started quickly.
- Introduced ad extension reporting across Google Sitelinks, Call
Extensions, Callout Extensions, and Mobile App Extensions. An
"All Extensions toggle" allows users to switch conveniently between
just those extensions with traffic, or the complete list.
- Introduced client-level forecasting charts into the Dashboard
to streamline decisions.
- Added optimization support for Google Dynamic Search Ads, to
increase revenue and/or ROAS.
- Introduced the ability to apply Bid Overrides via the
multi-edit workflow.
- Added the ability to roll up data by publishers and campaigns,
allowing users to compare performance across publishers (i.e.
Google vs. Microsoft vs. Facebook).
- Introduced Client Tags in MarinOne, which allows users who run
multi-client reports with Client Tags to do their reporting in
MarinOne.
- Added additional options to the 'More' menu in MarinOne Engine,
including History, Settings history, and Settings link.
- Introduced an Activity Log for MarinOne Social for users
to see the status of their work more easily.
- Added the Sync button to MarinOne Social, allowing users to
bring down changes from Facebook more easily.
- Enhanced the Help experience, serving guided tours, support
center results, certification, What's New content, and access to
the support team from a comprehensive, in-app menu.
Third Quarter 2021 Financial Updates:
- Net revenues totaled $6.2
million, a year-over-year decrease of 9% when compared to
$6.8 million in the third quarter of
2020.
- GAAP loss from operations was ($3.3)
million, resulting in a GAAP operating margin of (53%), as
compared to a GAAP loss from operations of ($4.3) million and a GAAP operating margin of
(63%) for the third quarter of 2020.
- Non-GAAP loss from operations was ($3.0)
million, resulting in a non-GAAP operating margin of (48%),
as compared to a non-GAAP loss from operations of ($2.8) million and a non-GAAP operating margin of
(42%) for the third quarter of 2020.
- 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."
- Cash, cash equivalents and restricted cash were $50.2 million in the aggregate at September 30, 2021.
- Raised net proceeds of $38.8
million from issuances and sales of common stock under the
Company's "at-the-market" securities offering facility, at a
weighted average sales price of $9.27
per share.
- Filed a new $100.0 million shelf
registration statement with the SEC, which includes a $50.0 million "at-the-market" securities offering
facility, pursuant to which we may be able to issue and sell
additional shares of our common stock.
- Entered into a new three-year revenue share agreement with
Google.
Financial Outlook:
Marin is providing
guidance for its fourth quarter of 2021 as follows:
Forward-Looking Guidance
|
In millions
|
|
|
|
|
|
|
|
|
|
|
Range of Estimate
|
|
|
|
|
From
|
|
|
To
|
|
|
Three Months Ending December 31,
2021
|
|
|
|
|
|
|
|
Revenues,
net
|
|
$
|
5.6
|
|
|
$
|
6.1
|
|
|
Non-GAAP loss from
operations
|
|
|
(4.5)
|
|
|
|
(4.0)
|
|
|
The Q4 revenue guidance includes estimated Q4 revenues
under the new Google revenue share agreement, under which the
Company expects to earn quarterly revenue commencing October 1, 2021 that will be approximately
$0.5 million less than the average
quarterly revenue recognized under the expiring agreement with
Google during the first three quarters of 2021. Non-GAAP loss from
operations includes the impact of a non-recurring charge of
approximately $0.7 million related to
incentive-based compensation for achievements expected to occur in
the fourth quarter and 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, CARES Act employee
retention credits and non-recurring costs associated with
restructurings and divestitures.
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, 2021, 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 conference ID 13723659.
A live webcast of the conference call will be accessible at
http://public.viavid.com/index.php?id=146754
. Following the completion of the call through 11:59 p.m. Eastern Time on November 11, 2021, 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 13723659.
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, CARES Act employee retention credit and
non-recurring costs associated with restructurings and
divestitures. 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, CARES Act employee retention credit, other income,
net and non-recurring costs associated with restructurings and
divestitures. 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, impact of investments in
product and technology on future operating results, progress on
product development efforts, product capabilities, advertiser and
customer behavior, effects of the COVID-19 pandemic, and future
financial results, including its outlook for the fourth quarter of
2021. 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 any lingering
effects of the 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 extent of customer
acceptance and adoption of our MarinOne platform; 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 raise additional capital; our ability to manage
expenses; the success of any increased investments that we may make
in our engineering and sales and marketing teams; 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, including our loan under the Paycheck Protection
Program; 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; and adverse changes
in general economic or market conditions. 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 4, 2021.
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
December 31,
|
|
(Unaudited; in thousands, except par
value)
|
|
2021
|
|
|
2020
|
|
Assets:
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
49,727
|
|
|
$
|
14,280
|
|
Restricted
cash
|
|
|
431
|
|
|
|
540
|
|
Accounts receivable,
net
|
|
|
4,613
|
|
|
|
5,063
|
|
Prepaid expenses and
other current assets
|
|
|
2,827
|
|
|
|
3,039
|
|
Total current
assets
|
|
|
57,598
|
|
|
|
22,922
|
|
Property and
equipment, net
|
|
|
4,012
|
|
|
|
5,477
|
|
Right-of-use assets,
operating leases
|
|
|
2,740
|
|
|
|
7,737
|
|
Other non-current
assets
|
|
|
684
|
|
|
|
873
|
|
Total
assets
|
|
$
|
65,034
|
|
|
$
|
37,009
|
|
Liabilities and Stockholders'
Equity:
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
791
|
|
|
$
|
928
|
|
Accrued expenses and
other current liabilities
|
|
|
5,823
|
|
|
|
6,552
|
|
Note payable,
current
|
|
|
2,226
|
|
|
|
1,854
|
|
Operating lease
liabilities
|
|
|
3,222
|
|
|
|
6,800
|
|
Total current
liabilities
|
|
|
12,062
|
|
|
|
16,134
|
|
Note payable, net of
current
|
|
|
1,094
|
|
|
|
1,466
|
|
Operating lease
liabilities, non-current
|
|
|
-
|
|
|
|
1,814
|
|
Other long-term
liabilities
|
|
|
1,154
|
|
|
|
1,780
|
|
Total
liabilities
|
|
|
14,310
|
|
|
|
21,194
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
Common stock, $0.001
par value
|
|
|
15
|
|
|
|
10
|
|
Additional paid-in
capital
|
|
|
350,822
|
|
|
|
308,065
|
|
Accumulated
deficit
|
|
|
(299,006)
|
|
|
|
(291,163)
|
|
Accumulated other
comprehensive loss
|
|
|
(1,107)
|
|
|
|
(1,097)
|
|
Total stockholders'
equity
|
|
|
50,724
|
|
|
|
15,815
|
|
Total liabilities and
stockholders' equity
|
|
$
|
65,034
|
|
|
$
|
37,009
|
|
|
|
|
|
|
|
|
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)
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Revenues,
net
|
|
$
|
6,155
|
|
|
$
|
6,796
|
|
|
$
|
18,557
|
|
|
$
|
22,731
|
|
Cost of
revenues
|
|
|
3,175
|
|
|
|
4,323
|
|
|
|
9,591
|
|
|
|
14,253
|
|
Gross
profit
|
|
|
2,980
|
|
|
|
2,473
|
|
|
|
8,966
|
|
|
|
8,478
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
|
1,266
|
|
|
|
1,491
|
|
|
|
3,780
|
|
|
|
5,683
|
|
Research and
development
|
|
|
2,677
|
|
|
|
3,106
|
|
|
|
7,743
|
|
|
|
9,881
|
|
General and
administrative
|
|
|
2,312
|
|
|
|
2,131
|
|
|
|
6,176
|
|
|
|
6,123
|
|
Total operating
expenses
|
|
|
6,255
|
|
|
|
6,728
|
|
|
|
17,699
|
|
|
|
21,687
|
|
Loss from
operations
|
|
|
(3,275)
|
|
|
|
(4,255)
|
|
|
|
(8,733)
|
|
|
|
(13,209)
|
|
Other income,
net
|
|
|
298
|
|
|
|
111
|
|
|
|
846
|
|
|
|
1,117
|
|
Loss before income
taxes
|
|
|
(2,977)
|
|
|
|
(4,144)
|
|
|
|
(7,887)
|
|
|
|
(12,092)
|
|
Income tax provision
(benefit)
|
|
|
153
|
|
|
|
(72)
|
|
|
|
(44)
|
|
|
|
(568)
|
|
Net loss
|
|
$
|
(3,130)
|
|
|
$
|
(4,072)
|
|
|
$
|
(7,843)
|
|
|
$
|
(11,524)
|
|
Net loss per common
share, basic and diluted
|
|
$
|
(0.22)
|
|
|
$
|
(0.58)
|
|
|
$
|
(0.66)
|
|
|
$
|
(1.67)
|
|
Weighted-average
shares outstanding, basic and diluted
|
|
|
14,500
|
|
|
|
7,017
|
|
|
|
11,956
|
|
|
|
6,916
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marin Software Incorporated
|
|
|
|
|
|
|
Condensed Consolidated Statements of Cash
Flows
|
|
|
|
|
|
|
(On a GAAP basis)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
|
|
(Unaudited; in thousands)
|
|
2021
|
|
|
2020
|
|
Operating activities:
|
|
|
|
|
|
|
Net loss
|
|
$
|
(7,843)
|
|
|
$
|
(11,524)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities
|
|
|
|
|
|
|
Depreciation
|
|
|
670
|
|
|
|
1,661
|
|
Amortization of
internally developed software
|
|
|
1,806
|
|
|
|
2,330
|
|
Amortization of
intangible assets
|
|
|
—
|
|
|
|
95
|
|
Amortization of
deferred costs to obtain and fulfill contracts
|
|
|
364
|
|
|
|
700
|
|
Interest
expense
|
|
|
6
|
|
|
|
14
|
|
Loss on disposals of
property and equipment and right-of-use assets
|
|
|
30
|
|
|
|
19
|
|
Unrealized foreign
currency losses
|
|
|
43
|
|
|
|
(29)
|
|
Stock-based
compensation related to equity awards
|
|
|
1,273
|
|
|
|
1,208
|
|
Provision for bad
debts
|
|
|
(102)
|
|
|
|
(204)
|
|
Net change in
operating leases
|
|
|
(396)
|
|
|
|
(294)
|
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
551
|
|
|
|
3,723
|
|
Prepaid expenses and
other assets
|
|
|
(173)
|
|
|
|
289
|
|
Accounts
payable
|
|
|
(137)
|
|
|
|
(482)
|
|
Accrued expenses and
other liabilities
|
|
|
(1,351)
|
|
|
|
(1,994)
|
|
Net cash used in
operating activities
|
|
|
(5,259)
|
|
|
|
(4,488)
|
|
Investing activities:
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
(6)
|
|
|
|
(14)
|
|
Capitalization of
internally developed software
|
|
|
(971)
|
|
|
|
(1,442)
|
|
Net cash used in
investing activities
|
|
|
(977)
|
|
|
|
(1,456)
|
|
Financing activities:
|
|
|
|
|
|
|
Proceeds from
issuance of common shares through at-the-market offering, net of
offering costs
|
|
|
41,888
|
|
|
|
179
|
|
Proceeds from note
payable
|
|
|
—
|
|
|
|
3,320
|
|
Payment of principal
on finance lease liabilities
|
|
|
(15)
|
|
|
|
(545)
|
|
Employee taxes paid
for withheld shares upon equity award settlement
|
|
|
(280)
|
|
|
|
(220)
|
|
Proceeds from
employee stock purchase plan, net
|
|
|
29
|
|
|
|
19
|
|
Net cash provided by
financing activities
|
|
|
41,622
|
|
|
|
2,753
|
|
Effect of foreign
exchange rate changes on cash and cash equivalents and restricted
cash
|
|
|
(48)
|
|
|
|
36
|
|
Net decrease in cash
and cash equivalents and restricted cash
|
|
|
35,338
|
|
|
|
(3,155)
|
|
Cash and cash equivalents and restricted
cash:
|
|
|
|
|
|
|
Beginning of
period
|
|
|
14,820
|
|
|
|
12,105
|
|
End of
period
|
|
$
|
50,158
|
|
|
$
|
8,950
|
|
|
|
|
|
|
|
|
Marin Software Incorporated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
September 30,
|
|
|
(Unaudited; in thousands)
|
|
2020
|
|
|
2020
|
|
|
2020
|
|
|
2020
|
|
|
|
2020
|
|
|
|
2021
|
|
|
2021
|
|
|
2021
|
|
|
Sales and Marketing
(GAAP)
|
|
$
|
2,312
|
|
|
$
|
1,880
|
|
|
$
|
1,491
|
|
|
$
|
1,275
|
|
|
|
$
|
6,958
|
|
|
|
$
|
1,246
|
|
|
$
|
1,268
|
|
|
$
|
1,266
|
|
|
Less Stock-based
compensation
|
|
|
(110)
|
|
|
|
(149)
|
|
|
|
(24)
|
|
|
|
(70)
|
|
|
|
|
(353)
|
|
|
|
|
(66)
|
|
|
|
(70)
|
|
|
|
(122)
|
|
|
Less Restructuring
related expenses
|
|
|
(50)
|
|
|
|
—
|
|
|
|
(214)
|
|
|
|
(40)
|
|
|
|
|
(304)
|
|
|
|
|
2
|
|
|
|
-
|
|
|
|
-
|
|
|
Plus CARES Act
employee retention credit
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
42
|
|
|
|
42
|
|
|
|
60
|
|
|
Sales and Marketing
(Non-GAAP)
|
|
$
|
2,152
|
|
|
$
|
1,731
|
|
|
$
|
1,253
|
|
|
$
|
1,165
|
|
|
|
$
|
6,301
|
|
|
|
$
|
1,224
|
|
|
$
|
1,240
|
|
|
$
|
1,204
|
|
|
Research and
Development (GAAP)
|
|
$
|
3,437
|
|
|
$
|
3,338
|
|
|
$
|
3,106
|
|
|
$
|
2,934
|
|
|
|
$
|
12,815
|
|
|
|
$
|
2,399
|
|
|
$
|
2,667
|
|
|
$
|
2,677
|
|
|
Less Stock-based
compensation
|
|
|
(167)
|
|
|
|
(217)
|
|
|
|
(123)
|
|
|
|
(100)
|
|
|
|
|
(607)
|
|
|
|
|
(98)
|
|
|
|
(133)
|
|
|
|
(159)
|
|
|
Less Amortization of
intangible assets
|
|
|
(48)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
(48)
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Less Restructuring
related expenses
|
|
|
—
|
|
|
|
—
|
|
|
|
(185)
|
|
|
|
(30)
|
|
|
|
|
(215)
|
|
|
|
|
(2)
|
|
|
|
—
|
|
|
|
—
|
|
|
Plus CARES Act
employee retention credit
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
252
|
|
|
|
238
|
|
|
|
245
|
|
|
Plus Capitalization of
internally developed software
|
|
|
540
|
|
|
|
418
|
|
|
|
484
|
|
|
|
427
|
|
|
|
|
1,869
|
|
|
|
|
434
|
|
|
|
238
|
|
|
|
362
|
|
|
Research and
Development (Non-GAAP)
|
|
$
|
3,762
|
|
|
$
|
3,539
|
|
|
$
|
3,282
|
|
|
$
|
3,231
|
|
|
|
$
|
13,814
|
|
|
|
$
|
2,985
|
|
|
$
|
3,010
|
|
|
$
|
3,125
|
|
|
General and
Administrative (GAAP)
|
|
$
|
1,981
|
|
|
$
|
2,011
|
|
|
$
|
2,131
|
|
|
$
|
2,436
|
|
|
|
$
|
8,559
|
|
|
|
$
|
1,869
|
|
|
$
|
1,995
|
|
|
$
|
2,312
|
|
|
Less Stock-based
compensation
|
|
|
(75)
|
|
|
|
(72)
|
|
|
|
(67)
|
|
|
|
(69)
|
|
|
|
|
(283)
|
|
|
|
|
(63)
|
|
|
|
(130)
|
|
|
|
(248)
|
|
|
Less Restructuring
related expenses
|
|
|
—
|
|
|
|
—
|
|
|
|
(123)
|
|
|
|
(5)
|
|
|
|
|
(128)
|
|
|
|
|
(2)
|
|
|
|
—
|
|
|
|
—
|
|
|
Plus CARES Act
employee retention credit
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
70
|
|
|
|
66
|
|
|
|
67
|
|
|
General and
Administrative (Non-GAAP)
|
|
$
|
1,906
|
|
|
$
|
1,939
|
|
|
$
|
1,941
|
|
|
$
|
2,362
|
|
|
|
$
|
8,148
|
|
|
|
$
|
1,874
|
|
|
$
|
1,931
|
|
|
$
|
2,131
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marin Software Incorporated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
September 30,
|
|
|
(Unaudited; in thousands)
|
|
2020
|
|
|
2020
|
|
|
2020
|
|
|
2020
|
|
|
|
2020
|
|
|
|
2021
|
|
|
2021
|
|
|
2021
|
|
|
Gross Profit
(GAAP)
|
|
$
|
3,315
|
|
|
$
|
2,690
|
|
|
$
|
2,473
|
|
|
$
|
3,559
|
|
|
|
$
|
12,037
|
|
|
|
$
|
3,067
|
|
|
$
|
2,919
|
|
|
$
|
2,980
|
|
|
Plus Stock-based
compensation
|
|
|
94
|
|
|
|
129
|
|
|
|
(19)
|
|
|
|
47
|
|
|
|
|
251
|
|
|
|
|
35
|
|
|
|
46
|
|
|
|
103
|
|
|
Plus Amortization of
internally developed
software
|
|
|
864
|
|
|
|
818
|
|
|
|
648
|
|
|
|
654
|
|
|
|
|
2,984
|
|
|
|
|
624
|
|
|
|
596
|
|
|
|
586
|
|
|
Plus Amortization of
intangible assets
|
|
|
47
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
47
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Plus Restructuring
related expenses
|
|
|
(7)
|
|
|
|
—
|
|
|
|
529
|
|
|
|
7
|
|
|
|
|
529
|
|
|
|
|
1
|
|
|
|
—
|
|
|
|
—
|
|
|
Less CARES Act
employee retention credit
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(175)
|
|
|
|
(179)
|
|
|
|
(174)
|
|
|
Gross Profit
(Non-GAAP)
|
|
$
|
4,313
|
|
|
$
|
3,637
|
|
|
$
|
3,631
|
|
|
$
|
4,267
|
|
|
|
$
|
15,848
|
|
|
|
$
|
3,552
|
|
|
$
|
3,382
|
|
|
$
|
3,495
|
|
|
Operating Loss
(GAAP)
|
|
$
|
(4,415)
|
|
|
$
|
(4,539)
|
|
|
$
|
(4,255)
|
|
|
$
|
(3,086)
|
|
|
|
$
|
(16,295)
|
|
|
|
$
|
(2,447)
|
|
|
$
|
(3,011)
|
|
|
$
|
(3,275)
|
|
|
Plus Stock-based
compensation
|
|
|
446
|
|
|
|
567
|
|
|
|
195
|
|
|
|
286
|
|
|
|
|
1,494
|
|
|
|
|
262
|
|
|
|
379
|
|
|
|
632
|
|
|
Plus Amortization of
internally developed
software
|
|
|
864
|
|
|
|
818
|
|
|
|
648
|
|
|
|
654
|
|
|
|
|
2,984
|
|
|
|
|
624
|
|
|
|
596
|
|
|
|
586
|
|
|
Plus Amortization of
intangible assets
|
|
|
95
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
95
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Plus Restructuring
related expenses
|
|
|
43
|
|
|
|
—
|
|
|
|
1,051
|
|
|
|
82
|
|
|
|
|
1,176
|
|
|
|
|
3
|
|
|
|
—
|
|
|
|
—
|
|
|
Less CARES Act
employee retention credit
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(539)
|
|
|
|
(525)
|
|
|
|
(546)
|
|
|
Less Capitalization of
internally developed
software
|
|
|
(540)
|
|
|
|
(418)
|
|
|
|
(484)
|
|
|
|
(427)
|
|
|
|
|
(1,869)
|
|
|
|
|
(434)
|
|
|
|
(238)
|
|
|
|
(362)
|
|
|
Operating Loss
(Non-GAAP)
|
|
$
|
(3,507)
|
|
|
$
|
(3,572)
|
|
|
$
|
(2,845)
|
|
|
$
|
(2,491)
|
|
|
|
$
|
(12,415)
|
|
|
|
$
|
(2,531)
|
|
|
$
|
(2,799)
|
|
|
$
|
(2,965)
|
|
|
Net Loss
(GAAP)
|
|
$
|
(3,971)
|
|
|
$
|
(3,481)
|
|
|
$
|
(4,072)
|
|
|
$
|
(2,527)
|
|
|
|
$
|
(14,051)
|
|
|
|
$
|
(2,212)
|
|
|
$
|
(2,501)
|
|
|
$
|
(3,130)
|
|
|
Plus Stock-based
compensation
|
|
|
446
|
|
|
|
567
|
|
|
|
195
|
|
|
|
286
|
|
|
|
|
1,494
|
|
|
|
|
262
|
|
|
|
379
|
|
|
|
632
|
|
|
Plus Amortization of
internally developed
software
|
|
|
864
|
|
|
|
818
|
|
|
|
648
|
|
|
|
654
|
|
|
|
|
2,984
|
|
|
|
|
624
|
|
|
|
596
|
|
|
|
586
|
|
|
Plus Amortization of
intangible assets
|
|
|
95
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
95
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Plus Restructuring
related expenses
|
|
|
43
|
|
|
|
—
|
|
|
|
1,051
|
|
|
|
82
|
|
|
|
|
1,176
|
|
|
|
|
3
|
|
|
|
—
|
|
|
|
—
|
|
|
Less CARES Act
employee retention credit
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(539)
|
|
|
|
(525)
|
|
|
|
(546)
|
|
|
Less Capitalization of
internally developed
software
|
|
|
(540)
|
|
|
|
(418)
|
|
|
|
(484)
|
|
|
|
(427)
|
|
|
|
|
(1,869)
|
|
|
|
|
(434)
|
|
|
|
(238)
|
|
|
|
(362)
|
|
|
Net Loss
(Non-GAAP)
|
|
$
|
(3,063)
|
|
|
$
|
(2,514)
|
|
|
$
|
(2,662)
|
|
|
$
|
(1,932)
|
|
|
|
$
|
(10,171)
|
|
|
|
$
|
(2,296)
|
|
|
$
|
(2,289)
|
|
|
$
|
(2,820)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
Marin Software Incorporated
|
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|
|
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|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
Calculation of Non-GAAP Earnings Per
Share
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
Three Months Ended
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|
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|
Year Ended
|
|
|
|
Three Months Ended
|
|
|
|
|
March 31,
|
|
|
June 30,
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
March 31,
|
|
|
June 30,
|
|
|
September 30,
|
|
|
(Unaudited; in thousands, except per share
data)
|
|
2020
|
|
|
2020
|
|
|
2020
|
|
|
2020
|
|
|
|
2020
|
|
|
|
2021
|
|
|
2021
|
|
|
2021
|
|
|
Net Loss
(Non-GAAP)
|
|
$
|
(3,063)
|
|
|
$
|
(2,514)
|
|
|
$
|
(2,662)
|
|
|
$
|
(1,932)
|
|
|
|
$
|
(10,171)
|
|
|
|
$
|
(2,296)
|
|
|
$
|
(2,289)
|
|
|
$
|
(2,820)
|
|
|
Weighted-average
shares outstanding, basic and
diluted
|
|
|
6,819
|
|
|
|
6,912
|
|
|
|
7,017
|
|
|
|
8,616
|
|
|
|
|
7,344
|
|
|
|
|
10,300
|
|
|
|
11,034
|
|
|
|
14,500
|
|
|
Non-GAAP net loss per
common share, basic and
diluted
|
|
$
|
(0.45)
|
|
|
$
|
(0.36)
|
|
|
$
|
(0.38)
|
|
|
$
|
(0.22)
|
|
|
|
$
|
(1.38)
|
|
|
|
$
|
(0.22)
|
|
|
$
|
(0.21)
|
|
|
$
|
(0.19)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marin Software Incorporated
|
|
|
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|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
September 30,
|
|
|
(Unaudited; in thousands)
|
|
2020
|
|
|
2020
|
|
|
2020
|
|
|
2020
|
|
|
|
2020
|
|
|
|
2021
|
|
|
2021
|
|
|
2021
|
|
|
Net Loss
|
|
$
|
(3,971)
|
|
|
$
|
(3,481)
|
|
|
$
|
(4,072)
|
|
|
$
|
(2,527)
|
|
|
|
$
|
(14,051)
|
|
|
|
$
|
(2,212)
|
|
|
$
|
(2,501)
|
|
|
$
|
(3,130)
|
|
|
Depreciation
|
|
|
893
|
|
|
|
402
|
|
|
|
366
|
|
|
|
263
|
|
|
|
|
1,924
|
|
|
|
|
240
|
|
|
|
223
|
|
|
|
207
|
|
|
Amortization of
internally developed software
|
|
|
864
|
|
|
|
818
|
|
|
|
648
|
|
|
|
654
|
|
|
|
|
2,984
|
|
|
|
|
624
|
|
|
|
596
|
|
|
|
586
|
|
|
Amortization of
intangible assets
|
|
|
95
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
95
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Provision for (benefit
from) income taxes
|
|
|
25
|
|
|
|
(521)
|
|
|
|
(72)
|
|
|
|
(143)
|
|
|
|
|
(711)
|
|
|
|
|
92
|
|
|
|
(289)
|
|
|
|
153
|
|
|
Stock-based
compensation
|
|
|
446
|
|
|
|
567
|
|
|
|
195
|
|
|
|
286
|
|
|
|
|
1,494
|
|
|
|
|
262
|
|
|
|
379
|
|
|
|
632
|
|
|
CARES Act employee
retention credit
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(539)
|
|
|
|
(525)
|
|
|
|
(546)
|
|
|
Capitalization of
internally developed software
|
|
|
(540)
|
|
|
|
(418)
|
|
|
|
(484)
|
|
|
|
(427)
|
|
|
|
|
(1,869)
|
|
|
|
|
(434)
|
|
|
|
(238)
|
|
|
|
(362)
|
|
|
Restructuring related
expenses
|
|
|
43
|
|
|
|
—
|
|
|
|
1,051
|
|
|
|
82
|
|
|
|
|
1,176
|
|
|
|
|
3
|
|
|
|
-
|
|
|
|
-
|
|
|
Other income,
net
|
|
|
(469)
|
|
|
|
(537)
|
|
|
|
(111)
|
|
|
|
(416)
|
|
|
|
|
(1,533)
|
|
|
|
|
(327)
|
|
|
|
(221)
|
|
|
|
(298)
|
|
|
Adjusted
EBITDA
|
|
$
|
(2,614)
|
|
|
$
|
(3,170)
|
|
|
$
|
(2,479)
|
|
|
$
|
(2,228)
|
|
|
|
$
|
(10,491)
|
|
|
|
$
|
(2,291)
|
|
|
$
|
(2,576)
|
|
|
$
|
(2,758)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original
content:https://www.prnewswire.com/news-releases/marin-software-announces-third-quarter-2021-financial-results-301416915.html
SOURCE Marin Software