Marin Software Incorporated (NYSE:MRIN), a leading provider of
cross-channel, cross-device, enterprise marketing software for
advertisers and agencies, today announced financial results for the
third quarter ended September 30, 2017.
“Marin’s ability to address today's complex, fragmented customer
journey for leading brands gives us a competitive advantage as the
publisher toolsets will not address cross-publisher, cross-channel
needs,” said Chris Lien, chief executive office of Marin Software.
“We remain focused on returning to growth by delivering
customer-facing product innovation while operating with financial
discipline.”
Third Quarter 2017 Financial Overview:
- As of September 30, 2017, cash and cash equivalents and
restricted cash totaled $30.6 million, compared to $35.7 million as
of December 31, 2016.
- Net revenues totaled $18.2 million, a year-over-year decrease
of 24%, when compared to $24.0 million in the third quarter of
2016.
- GAAP gross profit was $10.0 million, resulting in a gross
margin of 55%, compared to GAAP gross profit of $15.3 million and a
gross margin of 64% during the third quarter of 2016. Non-GAAP
gross profit was $11.4 million, resulting in a non-GAAP gross
margin of 63%, compared to non-GAAP gross profit of $16.7
million and a non-GAAP gross margin of 69% during the third quarter
of 2016.
- GAAP loss from operations was ($7.3) million, compared to
($3.2) million for the third quarter of 2016. GAAP operating margin
was (40%), compared to (13%) during the third quarter of 2016.
Non-GAAP loss from operations was ($5.1) million, compared to
($1.0) million for the third quarter of 2016. Non-GAAP operating
margin was (28%), compared to (4%) during the third quarter of
2016.
- GAAP net loss was ($7.5) million, or ($1.34) per share, based
upon 5.7 million weighted average shares outstanding. This compares
to ($3.1) million, or ($0.55) per share, based upon 5.5 million
weighted average shares outstanding during the third quarter of
2016.
- Non-GAAP net loss was ($5.4) million, or ($0.95) per share,
based upon 5.7 million weighted average shares outstanding. This
compares to ($0.8) million, or ($0.15) per share, based upon 5.5
million weighted average shares outstanding during the third
quarter of 2016.
- Adjusted EBITDA was ($3.9) million, compared to $0.4 million in
the third quarter of 2016.
In October 2017, the Company completed a one-for-seven reverse
stock split of its issued and outstanding common stock. All share
and per share amounts throughout this release, including the
attached tables, have been adjusted to account for the impact of
this reverse stock split.
A reconciliation of GAAP to non-GAAP financial measures has 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."
Third Quarter 2017 Product Release
Highlights:
- Launched Audience reporting to help marketers track customers
across channels and test the effectiveness of different engagement
methods.
- Debuted Audience Bidding, which applies advanced machine
learning to programmatically move budgets to the most profitable
audience segments.
- Developed the Marin API to address the growing demand for
programmatic access to post-attributed performance data for use in
finance, data science and other SaaS applications.
- Added Salesforce as an integration to simplify the attribution
of middle- and lower-funnel CRM events to paid media buys across
search and social.
- Added robust automation enhancements to Marin’s Search Intent
feature to greatly simplify the workflow of launching campaigns on
Google and Facebook with a single brand voice. Enterprises can now
reach high-value audiences across the customer journey by utilizing
purchase intent signals from Search.
- Deployed “TruePath”, an industry-first cross-channel
measurement solution, on an initial set of customers, resulting in
budget reallocations to drive better performance.
- Improved Marin’s optimization tools with Dynamic Actions for
Shopping, which allows advertisers to boost or pause/activate
Google shopping ads based on their dimension values, and Scheduled
Boost, which allows advertisers to pre-program promotions so that
bids can automatically change during a sales period.
Financial Outlook:
As of November 9, 2017, Marin is initiating guidance for its
fourth quarter 2017 as follows:
|
Forward-Looking Guidance |
In millions, except per share
data |
|
|
|
|
|
|
|
|
|
|
|
|
Range of Estimate |
|
|
|
|
From |
|
|
To |
|
|
Three Months
Ending December 31, 2017 |
|
|
|
|
|
|
|
|
|
Revenues,
net |
|
$ |
17.5 |
|
|
$ |
18.0 |
|
|
Non-GAAP
income (loss) from operations |
|
$ |
(5.8 |
) |
|
$ |
(5.3 |
) |
|
Non-GAAP
net income (loss) per share |
|
$ |
(1.05 |
) |
|
$ |
(0.95 |
) |
|
Weighted-average shares outstanding |
|
|
5.7 |
|
|
|
|
|
|
Non-GAAP loss from operations and non-GAAP net loss per share
excludes the effects of stock-based compensation, amortization of
internally developed software, amortization of intangible assets,
impairment of goodwill and long-lived assets, non-cash expenses
related to debt agreements, non-recurring costs associated with
acquisitions and restructurings, and capitalization of internally
developed software.
Additionally, the Company does not reconcile its forward-looking
non-GAAP financial measures, non-GAAP loss from operations and
non-GAAP net loss per share, due to variability between revenues
and non-cash items such as stock-based compensation. The GAAP
measures, loss from operations and net loss per share, include
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 third quarter ended September 30, 2017,
and its outlook for the future. To access the call, please dial
(877) 705-6003 in the U.S. 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=126758. Following
the completion of the call through 11:59 p.m. Eastern Time on
November 16, 2017, 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 U.S. or (412) 317-6671 internationally with the recording
access code 13672266.
About Marin Software
Marin Software Incorporated’s (NYSE:MRIN) mission is to give
advertisers the power to drive higher efficiency, effectiveness,
and transparency in their paid marketing programs that run on the
world’s largest publishers. Marin provides industry leading
enterprise marketing software for advertisers and agencies to
measure, manage, and optimize billions of dollars in annualized ad
spend across the web and mobile devices. Offering an integrated
SaaS ad management platform for search, social, and
display advertising, Marin helps digital marketers improve
financial performance, save time, and make better decisions.
Advertisers use Marin to create, target, and convert precise
audiences based on recent buying signals from users' search,
social, and display interactions. Headquartered in San Francisco,
with offices in eight countries, 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
expense, the amortization of intangible assets, the capitalization
of internally developed software, the impairment of goodwill and
long-lived assets, non-cash expenses related to debt agreements,
the amortization of internally developed software and the
non-recurring costs associated with acquisitions and
restructurings. Non-GAAP net loss per share is calculated as
non-GAAP net loss divided by the weighted average shares
outstanding that are adjusted to assume the conversion of
outstanding preferred shares to common shares as of the beginning
of the period.
Adjusted EBITDA. Marin defines Adjusted EBITDA as net income
(loss), adjusted for stock-based compensation expense,
depreciation, the amortization of internally developed software,
the amortization of intangible assets, the capitalization of
internally developed software, the impairment of goodwill and
long-lived assets, interest expense, net, the benefit from or
provision for income taxes, other income or expenses, net and the
non-recurring costs associated with acquisitions and
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 and for bonus compensation purposes, 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 fourth quarter of 2017. 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 November 9, 2017.
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:
Investor Relations, Marin Softwareir@marinsoftware.com
Media Contact:
Wesley MacLagganMarketing, Marin Software(415)
399-2586press@marinsoftware.com
|
|
|
|
|
|
|
|
|
Marin Software
Inc. |
|
|
|
|
|
|
|
|
Condensed
Consolidated Balance Sheets |
|
|
|
|
|
|
|
|
(On a GAAP
basis) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
|
December 31, |
|
(Unaudited; in
thousands, except par value) |
|
2017 |
|
|
2016 |
|
Assets |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
29,356 |
|
|
$ |
34,420 |
|
Restricted cash |
|
|
1,293 |
|
|
|
1,293 |
|
Accounts
receivable, net |
|
|
12,706 |
|
|
|
18,761 |
|
Prepaid
expenses and other current assets |
|
|
4,686 |
|
|
|
3,808 |
|
Total
current assets |
|
|
48,041 |
|
|
|
58,282 |
|
Property and equipment,
net |
|
|
16,778 |
|
|
|
20,581 |
|
Goodwill |
|
|
16,741 |
|
|
|
19,318 |
|
Intangible assets,
net |
|
|
5,174 |
|
|
|
7,325 |
|
Other noncurrent
assets |
|
|
1,662 |
|
|
|
1,587 |
|
Total
assets |
|
$ |
88,396 |
|
|
$ |
107,093 |
|
Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
|
|
Accounts
payable |
|
$ |
2,467 |
|
|
$ |
2,434 |
|
Accrued
expenses and other current liabilities |
|
|
9,249 |
|
|
|
8,362 |
|
Deferred
revenues |
|
|
449 |
|
|
|
795 |
|
Capital
lease obligations |
|
|
1,096 |
|
|
|
1,015 |
|
Total
current liabilities |
|
|
13,261 |
|
|
|
12,606 |
|
Capital lease
obligations, non-current |
|
|
1,707 |
|
|
|
2,381 |
|
Other long-term
liabilities |
|
|
4,489 |
|
|
|
4,508 |
|
Total
liabilities |
|
|
19,457 |
|
|
|
19,495 |
|
Stockholders’
equity |
|
|
|
|
|
|
|
|
Common
stock, $0.001 par value |
|
|
6 |
|
|
|
6 |
|
Additional paid-in capital |
|
|
290,330 |
|
|
|
286,692 |
|
Accumulated deficit |
|
|
(220,433 |
) |
|
|
(196,213 |
) |
Accumulated other comprehensive loss |
|
|
(964 |
) |
|
|
(2,887 |
) |
Total
stockholders’ equity |
|
|
68,939 |
|
|
|
87,598 |
|
Total
liabilities and stockholders’ equity |
|
$ |
88,396 |
|
|
$ |
107,093 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marin Software
Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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) |
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
Revenues, net |
|
$ |
18,224 |
|
|
$ |
24,013 |
|
|
$ |
57,299 |
|
|
$ |
76,954 |
|
Cost of revenues (1)
(2) (3) |
|
|
8,256 |
|
|
|
8,668 |
|
|
|
24,787 |
|
|
|
26,752 |
|
Gross
profit |
|
|
9,968 |
|
|
|
15,345 |
|
|
|
32,512 |
|
|
|
50,202 |
|
Operating
expenses (1) (2) (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing |
|
|
6,630 |
|
|
|
7,581 |
|
|
|
20,016 |
|
|
|
25,973 |
|
Research and
development |
|
|
6,672 |
|
|
|
6,268 |
|
|
|
20,456 |
|
|
|
21,321 |
|
General and
administrative |
|
|
3,920 |
|
|
|
4,735 |
|
|
|
12,042 |
|
|
|
14,722 |
|
Impairment of
goodwill |
|
|
— |
|
|
|
— |
|
|
|
2,797 |
|
|
|
— |
|
Total
operating expenses |
|
|
17,222 |
|
|
|
18,584 |
|
|
|
55,311 |
|
|
|
62,016 |
|
Loss from
operations |
|
|
(7,254 |
) |
|
|
(3,239 |
) |
|
|
(22,799 |
) |
|
|
(11,814 |
) |
Interest expense,
net |
|
|
(8 |
) |
|
|
(39 |
) |
|
|
(109 |
) |
|
|
(91 |
) |
Other (expenses)
income, net |
|
|
(136 |
) |
|
|
188 |
|
|
|
(336 |
) |
|
|
632 |
|
Loss
before (provision for) benefit from income taxes |
|
|
(7,398 |
) |
|
|
(3,090 |
) |
|
|
(23,244 |
) |
|
|
(11,273 |
) |
(Provision for) benefit
from income taxes |
|
|
(151 |
) |
|
|
37 |
|
|
|
(976 |
) |
|
|
(611 |
) |
Net
loss |
|
$ |
(7,549 |
) |
|
$ |
(3,053 |
) |
|
$ |
(24,220 |
) |
|
$ |
(11,884 |
) |
Net loss per common
share, basic and diluted |
|
$ |
(1.34 |
) |
|
$ |
(0.55 |
) |
|
$ |
(4.31 |
) |
|
$ |
(2.18 |
) |
Weighted-average shares
outstanding, basic and diluted |
|
|
5,651 |
|
|
|
5,503 |
|
|
|
5,625 |
|
|
|
5,456 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
stock-based compensation expense as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues |
|
$ |
166 |
|
|
$ |
285 |
|
|
$ |
629 |
|
|
$ |
1,015 |
|
Sales and
marketing |
|
|
197 |
|
|
|
162 |
|
|
|
609 |
|
|
|
1,083 |
|
Research
and development |
|
|
326 |
|
|
|
852 |
|
|
|
1,640 |
|
|
|
4,149 |
|
General
and administrative |
|
|
234 |
|
|
|
532 |
|
|
|
805 |
|
|
|
2,345 |
|
Total |
|
$ |
923 |
|
|
$ |
1,831 |
|
|
$ |
3,683 |
|
|
$ |
8,592 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Includes
amortization of intangible assets as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues |
|
$ |
240 |
|
|
$ |
246 |
|
|
$ |
732 |
|
|
$ |
780 |
|
Sales and
marketing |
|
|
216 |
|
|
|
223 |
|
|
|
661 |
|
|
|
711 |
|
Research
and development |
|
|
239 |
|
|
|
246 |
|
|
|
730 |
|
|
|
780 |
|
General
and administrative |
|
|
5 |
|
|
|
15 |
|
|
|
28 |
|
|
|
79 |
|
Total |
|
$ |
700 |
|
|
$ |
730 |
|
|
$ |
2,151 |
|
|
$ |
2,350 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Includes
restructuring related expenses as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues |
|
$ |
— |
|
|
$ |
24 |
|
|
$ |
— |
|
|
$ |
175 |
|
Sales and
marketing |
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
213 |
|
Research
and development |
|
|
— |
|
|
|
(4 |
) |
|
|
— |
|
|
|
44 |
|
General
and administrative |
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
17 |
|
Total |
|
$ |
— |
|
|
$ |
24 |
|
|
$ |
— |
|
|
$ |
449 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marin Software
Inc. |
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Cash Flows |
|
|
|
|
|
|
|
|
(On a GAAP
basis) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, |
|
(Unaudited; in
thousands) |
|
2017 |
|
|
2016 |
|
Operating
activities |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(24,220 |
) |
|
$ |
(11,884 |
) |
Adjustments to
reconcile net loss to net cash (used in) provided by operating
activities |
|
|
|
|
|
|
|
|
Impairment of goodwill |
|
|
2,797 |
|
|
|
— |
|
Depreciation |
|
|
3,748 |
|
|
|
4,610 |
|
Amortization of internally developed software |
|
|
2,671 |
|
|
|
2,180 |
|
Amortization of intangible assets |
|
|
2,151 |
|
|
|
2,350 |
|
(Gain)
loss on disposal of property and equipment |
|
|
(11 |
) |
|
|
2 |
|
Unrealized foreign currency losses (gains) |
|
|
795 |
|
|
|
(268 |
) |
Non-cash
interest expense related to debt agreements |
|
|
15 |
|
|
|
18 |
|
Stock-based compensation related to equity awards and restricted
stock |
|
|
3,683 |
|
|
|
8,592 |
|
Provision
for bad debts |
|
|
1,040 |
|
|
|
852 |
|
Payment
of contingent consideration for prior acquisition |
|
|
— |
|
|
|
(93 |
) |
Changes
in operating assets and liabilities |
|
|
|
|
|
|
|
|
Accounts
receivable |
|
|
4,798 |
|
|
|
560 |
|
Prepaid
expenses and other current assets |
|
|
(959 |
) |
|
|
309 |
|
Other
assets |
|
|
(98 |
) |
|
|
(340 |
) |
Accounts
payable |
|
|
(692 |
) |
|
|
246 |
|
Deferred
revenues |
|
|
(354 |
) |
|
|
(280 |
) |
Accrued
expenses and other current liabilities |
|
|
169 |
|
|
|
(2,050 |
) |
Net cash (used in) provided by operating activities |
|
|
(4,467 |
) |
|
|
4,804 |
|
Investing
activities |
|
|
|
|
|
|
|
|
Purchases of property
and equipment |
|
|
(351 |
) |
|
|
(1,154 |
) |
Proceeds from disposal
of property and equipment |
|
|
11 |
|
|
|
3 |
|
Capitalization of
internally developed software |
|
|
(1,398 |
) |
|
|
(4,050 |
) |
Net cash
used in investing activities |
|
|
(1,738 |
) |
|
|
(5,201 |
) |
Financing
activities |
|
|
|
|
|
|
|
|
Repayments of capital
lease obligations |
|
|
(788 |
) |
|
|
(1,223 |
) |
Proceeds from exercise
of common stock options |
|
|
— |
|
|
|
350 |
|
Proceeds from employee
stock purchase plan, net |
|
|
215 |
|
|
|
592 |
|
Net cash used in financing activities |
|
|
(573 |
) |
|
|
(281 |
) |
Effect of foreign exchange rate changes on cash and cash
equivalents and restricted cash |
|
|
1,714 |
|
|
|
(206 |
) |
Net decrease in cash and cash equivalents and restricted cash |
|
|
(5,064 |
) |
|
|
(884 |
) |
Cash and cash
equivalents and restricted cash |
|
|
|
|
|
|
|
|
Beginning of
period |
|
|
35,713 |
|
|
|
37,326 |
|
End of period |
|
$ |
30,649 |
|
|
$ |
36,442 |
|
Supplemental
disclosure of non-cash investing and financing
activities |
|
|
|
|
|
|
|
|
Acquisition of
equipment through capital leases |
|
$ |
181 |
|
|
$ |
1,283 |
|
Purchases of property
and equipment recorded in accounts payable and accrued
expenses |
|
|
693 |
|
|
|
9 |
|
Issuance of common
stock under employee stock purchase plan |
|
|
130 |
|
|
|
328 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marin Software
Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of GAAP to Non-GAAP Expenses (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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) |
|
2016 |
|
|
2016 |
|
|
2016 |
|
|
2016 |
|
|
|
2016 |
|
|
|
2017 |
|
|
2017 |
|
|
2017 |
|
Sales and Marketing
(GAAP) |
|
$ |
9,107 |
|
|
$ |
9,285 |
|
|
$ |
7,581 |
|
|
$ |
6,916 |
|
|
|
$ |
32,889 |
|
|
|
$ |
6,676 |
|
|
$ |
6,710 |
|
|
$ |
6,630 |
|
Less
Stock-based compensation |
|
|
(499 |
) |
|
|
(422 |
) |
|
|
(162 |
) |
|
|
(198 |
) |
|
|
|
(1,281 |
) |
|
|
|
(212 |
) |
|
|
(200 |
) |
|
|
(197 |
) |
Less
Amortization of intangible assets |
|
|
(248 |
) |
|
|
(240 |
) |
|
|
(223 |
) |
|
|
(223 |
) |
|
|
|
(934 |
) |
|
|
|
(223 |
) |
|
|
(222 |
) |
|
|
(216 |
) |
Less
Restructuring related expenses |
|
|
— |
|
|
|
(211 |
) |
|
|
(2 |
) |
|
|
(135 |
) |
|
|
|
(348 |
) |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Sales and Marketing
(Non-GAAP) |
|
$ |
8,360 |
|
|
$ |
8,412 |
|
|
$ |
7,194 |
|
|
$ |
6,360 |
|
|
|
$ |
30,326 |
|
|
|
$ |
6,241 |
|
|
$ |
6,288 |
|
|
$ |
6,217 |
|
Research and
Development (GAAP) |
|
$ |
8,009 |
|
|
$ |
7,044 |
|
|
$ |
6,268 |
|
|
$ |
6,520 |
|
|
|
$ |
27,841 |
|
|
|
$ |
7,138 |
|
|
$ |
6,646 |
|
|
$ |
6,672 |
|
Less
Stock-based compensation |
|
|
(2,022 |
) |
|
|
(1,275 |
) |
|
|
(852 |
) |
|
|
(840 |
) |
|
|
|
(4,989 |
) |
|
|
|
(996 |
) |
|
|
(318 |
) |
|
|
(326 |
) |
Less
Amortization of intangible assets |
|
|
(271 |
) |
|
|
(263 |
) |
|
|
(246 |
) |
|
|
(247 |
) |
|
|
|
(1,027 |
) |
|
|
|
(247 |
) |
|
|
(244 |
) |
|
|
(239 |
) |
Less
Restructuring related expenses |
|
|
— |
|
|
|
(48 |
) |
|
|
4 |
|
|
|
— |
|
|
|
|
(44 |
) |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Plus
Capitalization of internally developed software |
|
|
1,493 |
|
|
|
1,407 |
|
|
|
1,150 |
|
|
|
662 |
|
|
|
|
4,712 |
|
|
|
|
543 |
|
|
|
413 |
|
|
|
442 |
|
Research and
Development (Non-GAAP) |
|
$ |
7,209 |
|
|
$ |
6,865 |
|
|
$ |
6,324 |
|
|
$ |
6,095 |
|
|
|
$ |
26,493 |
|
|
|
$ |
6,438 |
|
|
$ |
6,497 |
|
|
$ |
6,549 |
|
General and
Administrative (GAAP) |
|
$ |
4,969 |
|
|
$ |
5,018 |
|
|
$ |
4,735 |
|
|
$ |
5,168 |
|
|
|
$ |
19,890 |
|
|
|
$ |
4,177 |
|
|
$ |
3,945 |
|
|
$ |
3,920 |
|
Less
Stock-based compensation |
|
|
(880 |
) |
|
|
(933 |
) |
|
|
(532 |
) |
|
|
(366 |
) |
|
|
|
(2,711 |
) |
|
|
|
(323 |
) |
|
|
(248 |
) |
|
|
(234 |
) |
Less
Amortization of intangible assets |
|
|
(36 |
) |
|
|
(28 |
) |
|
|
(15 |
) |
|
|
(13 |
) |
|
|
|
(92 |
) |
|
|
|
(13 |
) |
|
|
(10 |
) |
|
|
(5 |
) |
Less
Acquisition related expenses |
|
|
(9 |
) |
|
|
(20 |
) |
|
|
— |
|
|
|
(11 |
) |
|
|
|
(40 |
) |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Less
Restructuring related expenses |
|
|
— |
|
|
|
(15 |
) |
|
|
(2 |
) |
|
|
(3 |
) |
|
|
|
(20 |
) |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
General and
Administrative (Non-GAAP) |
|
$ |
4,044 |
|
|
$ |
4,022 |
|
|
$ |
4,186 |
|
|
$ |
4,775 |
|
|
|
$ |
17,027 |
|
|
|
$ |
3,841 |
|
|
$ |
3,687 |
|
|
$ |
3,681 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- The sum of the quarterly financial information may vary from
full year financial information due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marin Software
Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of GAAP to Non-GAAP Measures (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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) |
|
2016 |
|
|
2016 |
|
|
2016 |
|
|
2016 |
|
|
|
2016 |
|
|
|
2017 |
|
|
2017 |
|
|
2017 |
|
Gross Profit
(GAAP) |
|
$ |
17,998 |
|
|
$ |
16,859 |
|
|
$ |
15,345 |
|
|
$ |
14,473 |
|
|
|
$ |
64,675 |
|
|
|
$ |
12,009 |
|
|
$ |
10,535 |
|
|
$ |
9,968 |
|
Plus
Stock-based compensation |
|
|
421 |
|
|
|
309 |
|
|
|
285 |
|
|
|
299 |
|
|
|
|
1,314 |
|
|
|
|
311 |
|
|
|
152 |
|
|
|
166 |
|
Plus
Amortization of internally developed software |
|
|
681 |
|
|
|
719 |
|
|
|
780 |
|
|
|
808 |
|
|
|
|
2,988 |
|
|
|
|
788 |
|
|
|
867 |
|
|
|
1,016 |
|
Plus
Amortization of intangible assets |
|
|
271 |
|
|
|
263 |
|
|
|
246 |
|
|
|
247 |
|
|
|
|
1,027 |
|
|
|
|
247 |
|
|
|
245 |
|
|
|
240 |
|
Plus
Restructuring related expenses |
|
|
— |
|
|
|
151 |
|
|
|
24 |
|
|
|
9 |
|
|
|
|
184 |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Gross Profit
(Non-GAAP) |
|
$ |
19,371 |
|
|
$ |
18,301 |
|
|
$ |
16,680 |
|
|
$ |
15,836 |
|
|
|
$ |
70,188 |
|
|
|
$ |
13,355 |
|
|
$ |
11,799 |
|
|
$ |
11,390 |
|
Operating Loss
(GAAP) |
|
$ |
(4,087 |
) |
|
$ |
(4,488 |
) |
|
$ |
(3,239 |
) |
|
$ |
(4,131 |
) |
|
|
$ |
(15,945 |
) |
|
|
$ |
(5,982 |
) |
|
$ |
(9,563 |
) |
|
$ |
(7,254 |
) |
Plus
Impairment of goodwill |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
2,797 |
|
|
|
— |
|
Plus
Stock-based compensation |
|
|
3,822 |
|
|
|
2,939 |
|
|
|
1,831 |
|
|
|
1,703 |
|
|
|
|
10,295 |
|
|
|
|
1,842 |
|
|
|
918 |
|
|
|
923 |
|
Plus
Amortization of internally developed software |
|
|
681 |
|
|
|
719 |
|
|
|
780 |
|
|
|
808 |
|
|
|
|
2,988 |
|
|
|
|
788 |
|
|
|
867 |
|
|
|
1,016 |
|
Plus
Amortization of intangible assets |
|
|
826 |
|
|
|
794 |
|
|
|
730 |
|
|
|
730 |
|
|
|
|
3,080 |
|
|
|
|
730 |
|
|
|
721 |
|
|
|
700 |
|
Plus
Acquisition related expenses |
|
|
9 |
|
|
|
20 |
|
|
|
— |
|
|
|
11 |
|
|
|
|
40 |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Plus
Restructuring related expenses |
|
|
— |
|
|
|
425 |
|
|
|
24 |
|
|
|
147 |
|
|
|
|
596 |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Less
Capitalization of internally developed software |
|
|
(1,493 |
) |
|
|
(1,407 |
) |
|
|
(1,150 |
) |
|
|
(662 |
) |
|
|
|
(4,712 |
) |
|
|
|
(543 |
) |
|
|
(413 |
) |
|
|
(442 |
) |
Operating Loss
(Non-GAAP) |
|
$ |
(242 |
) |
|
$ |
(998 |
) |
|
$ |
(1,024 |
) |
|
$ |
(1,394 |
) |
|
|
$ |
(3,658 |
) |
|
|
$ |
(3,165 |
) |
|
$ |
(4,673 |
) |
|
$ |
(5,057 |
) |
Net Loss (GAAP) |
|
$ |
(4,413 |
) |
|
$ |
(4,418 |
) |
|
$ |
(3,053 |
) |
|
$ |
(4,596 |
) |
|
|
$ |
(16,480 |
) |
|
|
$ |
(6,126 |
) |
|
$ |
(10,545 |
) |
|
$ |
(7,549 |
) |
Plus
Impairment of goodwill |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
2,797 |
|
|
|
— |
|
Plus
Stock-based compensation |
|
|
3,822 |
|
|
|
2,939 |
|
|
|
1,831 |
|
|
|
1,703 |
|
|
|
|
10,295 |
|
|
|
|
1,842 |
|
|
|
918 |
|
|
|
923 |
|
Plus
Amortization of internally developed software |
|
|
681 |
|
|
|
719 |
|
|
|
780 |
|
|
|
808 |
|
|
|
|
2,988 |
|
|
|
|
788 |
|
|
|
867 |
|
|
|
1,016 |
|
Plus
Amortization of intangible assets |
|
|
826 |
|
|
|
794 |
|
|
|
730 |
|
|
|
730 |
|
|
|
|
3,080 |
|
|
|
|
730 |
|
|
|
721 |
|
|
|
700 |
|
Plus
Non-cash expenses related to debt agreements |
|
|
7 |
|
|
|
6 |
|
|
|
5 |
|
|
|
9 |
|
|
|
|
27 |
|
|
|
|
6 |
|
|
|
7 |
|
|
|
2 |
|
Plus
Acquisition related expenses |
|
|
9 |
|
|
|
20 |
|
|
|
— |
|
|
|
11 |
|
|
|
|
40 |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Plus
Restructuring related expenses |
|
|
— |
|
|
|
425 |
|
|
|
24 |
|
|
|
147 |
|
|
|
|
596 |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Less
Capitalization of internally developed software |
|
|
(1,493 |
) |
|
|
(1,407 |
) |
|
|
(1,150 |
) |
|
|
(662 |
) |
|
|
|
(4,712 |
) |
|
|
|
(543 |
) |
|
|
(413 |
) |
|
|
(442 |
) |
Net Loss
(Non-GAAP) |
|
$ |
(561 |
) |
|
$ |
(922 |
) |
|
$ |
(833 |
) |
|
$ |
(1,850 |
) |
|
|
$ |
(4,166 |
) |
|
|
$ |
(3,303 |
) |
|
$ |
(5,648 |
) |
|
$ |
(5,350 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- The sum of the quarterly financial information may vary from
full year financial information due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marin Software
Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of
Non-GAAP Earnings Per Share (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, except per share data) |
|
2016 |
|
|
2016 |
|
|
2016 |
|
|
2016 |
|
|
|
2016 |
|
|
|
2017 |
|
|
2017 |
|
|
2017 |
|
Net Loss
(Non-GAAP) |
|
$ |
(561 |
) |
|
$ |
(922 |
) |
|
$ |
(833 |
) |
|
$ |
(1,850 |
) |
|
|
$ |
(4,166 |
) |
|
|
$ |
(3,303 |
) |
|
$ |
(5,648 |
) |
|
$ |
(5,350 |
) |
Weighted-average shares
outstanding, basic and diluted |
|
|
5,395 |
|
|
|
5,469 |
|
|
|
5,503 |
|
|
|
5,528 |
|
|
|
|
5,474 |
|
|
|
|
5,583 |
|
|
|
5,640 |
|
|
|
5,651 |
|
Non-GAAP net loss per
common share, basic and diluted |
|
$ |
(0.10 |
) |
|
$ |
(0.17 |
) |
|
$ |
(0.15 |
) |
|
$ |
(0.33 |
) |
|
|
$ |
(0.76 |
) |
|
|
$ |
(0.59 |
) |
|
$ |
(1.00 |
) |
|
$ |
(0.95 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marin Software
Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of Net Loss to Adjusted EBITDA (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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) |
|
2016 |
|
|
2016 |
|
|
2016 |
|
|
2016 |
|
|
|
2016 |
|
|
|
2017 |
|
|
2017 |
|
|
2017 |
|
Net Loss |
|
$ |
(4,413 |
) |
|
$ |
(4,418 |
) |
|
$ |
(3,053 |
) |
|
$ |
(4,596 |
) |
|
|
$ |
(16,480 |
) |
|
|
$ |
(6,126 |
) |
|
$ |
(10,545 |
) |
|
$ |
(7,549 |
) |
Depreciation |
|
|
1,665 |
|
|
|
1,542 |
|
|
|
1,403 |
|
|
|
1,425 |
|
|
|
|
6,035 |
|
|
|
|
1,336 |
|
|
|
1,263 |
|
|
|
1,149 |
|
Amortization of internally developed software |
|
|
681 |
|
|
|
719 |
|
|
|
780 |
|
|
|
808 |
|
|
|
|
2,988 |
|
|
|
|
788 |
|
|
|
867 |
|
|
|
1,016 |
|
Amortization of intangible assets |
|
|
826 |
|
|
|
794 |
|
|
|
730 |
|
|
|
730 |
|
|
|
|
3,080 |
|
|
|
|
730 |
|
|
|
721 |
|
|
|
700 |
|
Interest
expense, net |
|
|
18 |
|
|
|
34 |
|
|
|
39 |
|
|
|
38 |
|
|
|
|
129 |
|
|
|
|
37 |
|
|
|
64 |
|
|
|
8 |
|
Provision
for (benefit from) income taxes |
|
|
341 |
|
|
|
307 |
|
|
|
(37 |
) |
|
|
793 |
|
|
|
|
1,404 |
|
|
|
|
406 |
|
|
|
419 |
|
|
|
151 |
|
EBITDA |
|
$ |
(882 |
) |
|
$ |
(1,022 |
) |
|
$ |
(138 |
) |
|
$ |
(802 |
) |
|
|
$ |
(2,844 |
) |
|
|
$ |
(2,829 |
) |
|
$ |
(7,211 |
) |
|
$ |
(4,525 |
) |
Impairment of goodwill |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
2,797 |
|
|
|
— |
|
Stock-based compensation |
|
|
3,822 |
|
|
|
2,939 |
|
|
|
1,831 |
|
|
|
1,703 |
|
|
|
|
10,295 |
|
|
|
|
1,842 |
|
|
|
918 |
|
|
|
923 |
|
Capitalization of internally developed software |
|
|
(1,493 |
) |
|
|
(1,407 |
) |
|
|
(1,150 |
) |
|
|
(662 |
) |
|
|
|
(4,712 |
) |
|
|
|
(543 |
) |
|
|
(413 |
) |
|
|
(442 |
) |
Acquisition related expenses |
|
|
9 |
|
|
|
20 |
|
|
|
— |
|
|
|
11 |
|
|
|
|
40 |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Restructuring related expenses |
|
|
— |
|
|
|
425 |
|
|
|
24 |
|
|
|
147 |
|
|
|
|
596 |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other
(income) expenses, net |
|
|
(33 |
) |
|
|
(411 |
) |
|
|
(188 |
) |
|
|
(366 |
) |
|
|
|
(998 |
) |
|
|
|
(299 |
) |
|
|
499 |
|
|
|
136 |
|
Adjusted EBITDA |
|
$ |
1,423 |
|
|
$ |
544 |
|
|
$ |
379 |
|
|
$ |
31 |
|
|
|
$ |
2,377 |
|
|
|
$ |
(1,829 |
) |
|
$ |
(3,410 |
) |
|
$ |
(3,908 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- The sum of the quarterly financial information may vary from
full year financial information due to rounding.
Marin Software (NASDAQ:MRIN)
Historical Stock Chart
From Mar 2024 to Apr 2024
Marin Software (NASDAQ:MRIN)
Historical Stock Chart
From Apr 2023 to Apr 2024