SAN FRANCISCO, Nov. 5, 2020 /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, 2020.
"The increase in online commerce that has been generally
observed since the beginning of the COVID-19 pandemic combined with
the upcoming Q4 retail season both highlight the importance of
Amazon as part of a digital marketing strategy. Marin's integration
with Amazon Attribution unlocks what is currently a black box for
many advertisers and helps them better understand the full value of
their Google and Facebook investment. Without such insights,
advertisers are flying blind and likely undervaluing their
performance." said Chief Executive Officer Chris Lien.
Third Quarter 2020 Business and Product Release
Highlights:
- Launched reporting for Google Smart Shopping campaign
types.
- Enhanced bulk editing and creation support for Amazon in
MarinOne.
- Simplified linking of Amazon accounts with information about
Amazon Campaign Type designation in the Linking Wizard.
- Introduced product title on the product-level grids in
Marin Search and
MarinOne.
- Expanded Amazon-specific columns to enable Buy Box Monitoring,
Sponsored Brand performance by asset and evaluation of bid
modifiers by placements for Sponsored Products.
- Added management support for Bing Responsive Search ad formats
in Marin Search and MarinOne.
- Released a Client View and Dashboard widget to easily view
performance across brands, lines of business or geographies in a
single place.
- Enhanced Cross-Client Reports in MarinOne to support
client-level columns for dimensions, custom columns, conversion
types, and currency.
- Expanded automation with Automated Rules for Social allowing
advertisers to trigger workflows based on campaign performance and
other criteria.
- Added support for new Facebook ad types in Marin Social,
including Marketplace, Search, and Instagram Explore ads.
- Added support for Facebook Housing, Employment and Credit
Audiences in Marin Social, providing better protection against
potential discrimination by advertisers.
- Released support for Facebook's Value Optimization bid strategy
in Marin Social.
Third Quarter 2020 Financial Updates:
- Net revenues totaled $6.8
million, a year-over-year decrease of 42% when compared to
$11.7 million in the third quarter of
2019.
- GAAP loss from operations was ($4.3)
million, resulting in a GAAP operating margin of (63%), as
compared to a GAAP loss from operations of ($4.1) million and a GAAP operating margin of
(35%) for the third quarter of 2019.
- Non-GAAP loss from operations was ($2.8)
million, resulting in a non-GAAP operating margin of (42%),
as compared to a non-GAAP loss from operations of ($2.9) million and a non-GAAP operating margin of
(25%) for the third quarter of 2019.
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."
During the third quarter ended September
30, 2020, the Company commenced the implementation of a
restructuring and reduction-in-force plan to reduce the Company's
operating costs and address the impact of the COVID-19 pandemic.
The plan is expected to ultimately result in the reduction of the
Company's global workforce by approximately 60 employees,
approximately half of which are located outside of the United States. The Company completed the
majority of these actions during the third quarter of 2020 and
incurred $1.1 million in
restructuring costs during the quarter.
Since the end of the third quarter ended September 30, 2020, the Company has issued and
sold 1,900,000 shares of its common stock, at a weighted average
sales price of $3.30 per share,
pursuant to the Company's at-the-market offering program and
related shelf registration statement filed with the Securities and
Exchange Commission, netting proceeds to the Company of
approximately $6.0 million.
Financial Outlook:
Marin is providing guidance for its fourth quarter of
2020 as follows:
Forward-Looking
Guidance
|
In
millions
|
|
|
|
|
|
|
|
|
|
|
|
|
Range of
Estimate
|
|
|
|
|
From
|
|
|
To
|
|
|
Three Months
Ending December 31, 2020
|
|
|
|
|
|
|
|
|
|
Revenues,
net
|
|
$
|
6.3
|
|
|
$
|
6.8
|
|
|
Non-GAAP loss from
operations
|
|
|
(2.4)
|
|
|
|
(1.9)
|
|
|
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 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,
2020, and its outlook for the fourth quarter of 2020. To
access the call, please dial (877) 705-6003 in the United States or (201) 493-6725
internationally with reference to the company name and conference
title. A live webcast of the conference call will be accessible
at http://public.viavid.com/index.php?id=141617. Following the
completion of the call through 11:59 p.m.
Eastern Time on November 12,
2020, 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 13710848.
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 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, 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, planned cost savings measures and estimated cost
savings, and future financial results, including its outlook for
the fourth quarter of 2020. 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
November 5, 2020. 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)
|
|
2020
|
|
|
2019
|
|
Assets:
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
7,978
|
|
|
$
|
11,134
|
|
Restricted
cash
|
|
|
972
|
|
|
|
971
|
|
Accounts receivable,
net
|
|
|
5,432
|
|
|
|
8,939
|
|
Prepaid expenses and
other current assets
|
|
|
3,029
|
|
|
|
3,522
|
|
Total current
assets
|
|
|
17,411
|
|
|
|
24,566
|
|
Property and
equipment, net
|
|
|
5,969
|
|
|
|
8,524
|
|
Right-of-use assets,
operating leases
|
|
|
9,336
|
|
|
|
7,705
|
|
Intangible assets,
net
|
|
|
—
|
|
|
|
95
|
|
Other non-current
assets
|
|
|
913
|
|
|
|
1,403
|
|
Total
assets
|
|
$
|
33,629
|
|
|
$
|
42,293
|
|
Liabilities and
Stockholders' Equity:
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
1,194
|
|
|
$
|
1,679
|
|
Accrued expenses and
other current liabilities
|
|
|
7,118
|
|
|
|
9,010
|
|
Note payable,
current
|
|
|
2,033
|
|
|
|
-
|
|
Operating lease
liabilities
|
|
|
6,820
|
|
|
|
3,786
|
|
Total current
liabilities
|
|
|
17,165
|
|
|
|
14,475
|
|
Note payable, net of
current
|
|
|
1,287
|
|
|
|
-
|
|
Operating lease
liabilities, non-current
|
|
|
3,483
|
|
|
|
5,181
|
|
Other long-term
liabilities
|
|
|
884
|
|
|
|
1,577
|
|
Total
liabilities
|
|
|
22,819
|
|
|
|
21,233
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
|
Common stock, $0.001
par value
|
|
|
7
|
|
|
|
7
|
|
Additional paid-in
capital
|
|
|
300,490
|
|
|
|
299,263
|
|
Accumulated
deficit
|
|
|
(288,636)
|
|
|
|
(277,112)
|
|
Accumulated other
comprehensive loss
|
|
|
(1,051)
|
|
|
|
(1,098)
|
|
Total
stockholders' equity
|
|
|
10,810
|
|
|
|
21,060
|
|
Total liabilities and
stockholders' equity
|
|
$
|
33,629
|
|
|
$
|
42,293
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
Revenues,
net
|
|
$
|
6,796
|
|
|
$
|
11,728
|
|
|
$
|
22,731
|
|
|
$
|
37,652
|
|
Cost of
revenues
|
|
|
4,323
|
|
|
|
5,567
|
|
|
|
14,253
|
|
|
|
17,307
|
|
Gross
profit
|
|
|
2,473
|
|
|
|
6,161
|
|
|
|
8,478
|
|
|
|
20,345
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
|
1,491
|
|
|
|
3,732
|
|
|
|
5,683
|
|
|
|
12,453
|
|
Research and
development
|
|
|
3,106
|
|
|
|
3,872
|
|
|
|
9,881
|
|
|
|
13,427
|
|
General and
administrative
|
|
|
2,131
|
|
|
|
2,631
|
|
|
|
6,123
|
|
|
|
8,129
|
|
Total operating
expenses
|
|
|
6,728
|
|
|
|
10,235
|
|
|
|
21,687
|
|
|
|
34,009
|
|
Loss from
operations
|
|
|
(4,255)
|
|
|
|
(4,074)
|
|
|
|
(13,209)
|
|
|
|
(13,664)
|
|
Other income,
net
|
|
|
111
|
|
|
|
640
|
|
|
|
1,117
|
|
|
|
1,712
|
|
Loss before benefit
from income taxes
|
|
|
(4,144)
|
|
|
|
(3,434)
|
|
|
|
(12,092)
|
|
|
|
(11,952)
|
|
Benefit from income
taxes
|
|
|
(72)
|
|
|
|
(161)
|
|
|
|
(568)
|
|
|
|
(70)
|
|
Net loss
|
|
$
|
(4,072)
|
|
|
$
|
(3,273)
|
|
|
$
|
(11,524)
|
|
|
$
|
(11,882)
|
|
Net loss per common
share, basic and diluted
|
|
$
|
(0.58)
|
|
|
$
|
(0.49)
|
|
|
$
|
(1.67)
|
|
|
$
|
(1.90)
|
|
Weighted-average
shares outstanding, basic and diluted
|
|
|
7,017
|
|
|
|
6,631
|
|
|
|
6,916
|
|
|
|
6,262
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marin Software
Incorporated
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
|
(On a GAAP
basis)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
September 30,
|
|
(Unaudited; in
thousands)
|
|
2020
|
|
|
2019
|
|
Operating
activities:
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(11,524)
|
|
|
$
|
(11,882)
|
|
Adjustments to
reconcile net loss to net cash (used in) provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
1,661
|
|
|
|
1,475
|
|
Amortization of
internally developed software
|
|
|
2,330
|
|
|
|
2,762
|
|
Amortization of
intangible assets
|
|
|
95
|
|
|
|
1,468
|
|
Amortization of
deferred costs to obtain and fulfill contracts
|
|
|
700
|
|
|
|
1,240
|
|
Loss on disposals of
property and equipment and right-of-use assets
|
|
|
19
|
|
|
|
13
|
|
Interest
expense
|
|
|
14
|
|
|
|
-
|
|
Unrealized foreign
currency losses (gains)
|
|
|
(29)
|
|
|
|
(52)
|
|
Stock-based
compensation expense related to equity awards
|
|
|
1,208
|
|
|
|
2,100
|
|
Provision for bad
debts
|
|
|
(204)
|
|
|
|
(47)
|
|
Net change in
operating leases
|
|
|
(294)
|
|
|
|
(421)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
3,723
|
|
|
|
3,728
|
|
Prepaid expenses and
other assets
|
|
|
289
|
|
|
|
1
|
|
Accounts
payable
|
|
|
(482)
|
|
|
|
(774)
|
|
Accrued expenses and
other liabilities
|
|
|
(1,994)
|
|
|
|
737
|
|
Net cash (used in)
provided by operating activities
|
|
|
(4,488)
|
|
|
|
348
|
|
Investing
activities:
|
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
(14)
|
|
|
|
(92)
|
|
Capitalization of
internally developed software
|
|
|
(1,442)
|
|
|
|
(1,874)
|
|
Net cash used in
investing activities
|
|
|
(1,456)
|
|
|
|
(1,966)
|
|
Financing
activities:
|
|
|
|
|
|
|
|
|
Proceeds from note
payable
|
|
|
3,320
|
|
|
|
-
|
|
Proceeds from
issuance of common shares through equity distribution agreement,
net of offering costs of $9 and $203 for 2020 and 2019,
respectively
|
|
|
179
|
|
|
|
1,504
|
|
Payment of principal
on finance lease liabilities
|
|
|
(545)
|
|
|
|
(986)
|
|
Employee taxes paid
for withheld shares upon equity award settlement
|
|
|
(220)
|
|
|
|
(295)
|
|
Proceeds from
employee stock purchase plan, net
|
|
|
19
|
|
|
|
123
|
|
Net cash provided by
financing activities
|
|
|
2,753
|
|
|
|
346
|
|
Effect of foreign
exchange rate changes on cash and cash equivalents and restricted
cash
|
|
|
36
|
|
|
|
(93)
|
|
Net decrease in cash
and cash equivalents and restricted cash
|
|
|
(3,155)
|
|
|
|
(1,365)
|
|
Cash and cash
equivalents and restricted cash:
|
|
|
|
|
|
|
|
|
Beginning of
period
|
|
|
12,105
|
|
|
|
11,503
|
|
End of
period
|
|
$
|
8,950
|
|
|
$
|
10,138
|
|
|
|
|
|
|
|
|
|
|
Marin Software
Incorporated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP to Non-GAAP Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Year
Ended
|
|
|
|
Three Months
Ended
|
|
|
|
March
31, 2019
|
|
|
June
30, 2019
|
|
|
September 30, 2019
|
|
|
December 31, 2019
|
|
|
|
December 31, 2019
|
|
|
|
March
31, 2020
|
|
|
June
30, 2020
|
|
|
September
30, 2020
|
|
(Unaudited; in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and Marketing
(GAAP)
|
|
$
|
4,634
|
|
|
$
|
4,087
|
|
|
$
|
3,732
|
|
|
$
|
3,383
|
|
|
|
$
|
15,836
|
|
|
|
$
|
2,312
|
|
|
$
|
1,880
|
|
|
$
|
1,491
|
|
Less Stock-based
compensation
|
|
|
(180)
|
|
|
|
(205)
|
|
|
|
(155)
|
|
|
|
(141)
|
|
|
|
|
(681)
|
|
|
|
|
(110)
|
|
|
|
(149)
|
|
|
|
(24)
|
|
Less Amortization of
intangible assets
|
|
|
(64)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
(64)
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Less Restructuring
related expenses
|
|
|
(157)
|
|
|
|
(66)
|
|
|
|
—
|
|
|
|
(178)
|
|
|
|
|
(401)
|
|
|
|
|
(50)
|
|
|
|
—
|
|
|
|
(214)
|
|
Sales and Marketing
(Non-GAAP)
|
|
$
|
4,233
|
|
|
$
|
3,816
|
|
|
$
|
3,577
|
|
|
$
|
3,064
|
|
|
|
$
|
14,690
|
|
|
|
$
|
2,152
|
|
|
$
|
1,731
|
|
|
$
|
1,253
|
|
Research and
Development (GAAP)
|
|
$
|
4,895
|
|
|
$
|
4,660
|
|
|
$
|
3,872
|
|
|
$
|
4,418
|
|
|
|
$
|
17,845
|
|
|
|
$
|
3,437
|
|
|
$
|
3,338
|
|
|
$
|
3,106
|
|
Less Stock-based
compensation
|
|
|
(281)
|
|
|
|
(269)
|
|
|
|
(266)
|
|
|
|
(209)
|
|
|
|
|
(1,025)
|
|
|
|
|
(167)
|
|
|
|
(217)
|
|
|
|
(123)
|
|
Less Amortization of
intangible assets
|
|
|
(234)
|
|
|
|
(234)
|
|
|
|
(234)
|
|
|
|
(173)
|
|
|
|
|
(875)
|
|
|
|
|
(48)
|
|
|
|
—
|
|
|
|
—
|
|
Less Restructuring
related expenses
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(185)
|
|
Plus Capitalization of
internally developed software
|
|
|
482
|
|
|
|
388
|
|
|
|
1,004
|
|
|
|
182
|
|
|
|
|
2,056
|
|
|
|
|
540
|
|
|
|
418
|
|
|
|
484
|
|
Research and
Development (Non-GAAP)
|
|
$
|
4,862
|
|
|
$
|
4,545
|
|
|
$
|
4,376
|
|
|
$
|
4,218
|
|
|
|
$
|
18,001
|
|
|
|
$
|
3,762
|
|
|
$
|
3,539
|
|
|
$
|
3,282
|
|
General and
Administrative (GAAP)
|
|
$
|
3,221
|
|
|
$
|
2,277
|
|
|
$
|
2,631
|
|
|
$
|
2,317
|
|
|
|
$
|
10,446
|
|
|
|
$
|
1,981
|
|
|
$
|
2,011
|
|
|
$
|
2,131
|
|
Less Stock-based
compensation
|
|
|
(99)
|
|
|
|
(146)
|
|
|
|
(105)
|
|
|
|
(75)
|
|
|
|
|
(425)
|
|
|
|
|
(75)
|
|
|
|
(72)
|
|
|
|
(67)
|
|
Less Restructuring
related expenses
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(123)
|
|
General and
Administrative (Non-GAAP)
|
|
$
|
3,122
|
|
|
$
|
2,131
|
|
|
$
|
2,526
|
|
|
$
|
2,242
|
|
|
|
$
|
10,021
|
|
|
|
$
|
1,906
|
|
|
$
|
1,939
|
|
|
$
|
1,941
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marin Software
Incorporated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP to Non-GAAP Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Year
Ended
|
|
|
|
Three Months
Ended
|
|
|
|
March
31, 2019
|
|
|
June
30, 2019
|
|
|
September 30, 2019
|
|
|
December 31, 2019
|
|
|
|
December 31, 2019
|
|
|
|
March
31, 2020
|
|
|
June
30, 2020
|
|
|
September
30, 2020
|
|
(Unaudited; in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit
(GAAP)
|
|
$
|
7,637
|
|
|
$
|
6,547
|
|
|
$
|
6,161
|
|
|
$
|
5,848
|
|
|
|
$
|
26,193
|
|
|
|
$
|
3,315
|
|
|
$
|
2,690
|
|
|
$
|
2,473
|
|
Plus Stock-based
compensation
|
|
|
125
|
|
|
|
142
|
|
|
|
127
|
|
|
|
139
|
|
|
|
|
533
|
|
|
|
|
94
|
|
|
|
129
|
|
|
|
(19)
|
|
Plus Amortization of
internally developed software
|
|
|
750
|
|
|
|
955
|
|
|
|
1,057
|
|
|
|
1,142
|
|
|
|
|
3,904
|
|
|
|
|
864
|
|
|
|
818
|
|
|
|
648
|
|
Plus Amortization of
intangible assets
|
|
|
234
|
|
|
|
234
|
|
|
|
234
|
|
|
|
173
|
|
|
|
|
875
|
|
|
|
|
47
|
|
|
|
—
|
|
|
|
—
|
|
Plus Restructuring
related expenses
|
|
|
6
|
|
|
|
—
|
|
|
|
—
|
|
|
|
90
|
|
|
|
|
96
|
|
|
|
|
(7)
|
|
|
|
—
|
|
|
|
529
|
|
Gross Profit
(Non-GAAP)
|
|
$
|
8,752
|
|
|
$
|
7,878
|
|
|
$
|
7,579
|
|
|
$
|
7,392
|
|
|
|
$
|
31,601
|
|
|
|
$
|
4,313
|
|
|
$
|
3,637
|
|
|
$
|
3,631
|
|
Operating Loss
(GAAP)
|
|
$
|
(5,113)
|
|
|
$
|
(4,477)
|
|
|
$
|
(4,074)
|
|
|
$
|
(6,180)
|
|
|
|
$
|
(19,844)
|
|
|
|
$
|
(4,415)
|
|
|
$
|
(4,539)
|
|
|
$
|
(4,255)
|
|
Plus Impairment of
goodwill
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,910
|
|
|
|
|
1,910
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Plus Stock-based
compensation
|
|
|
685
|
|
|
|
762
|
|
|
|
653
|
|
|
|
564
|
|
|
|
|
2,664
|
|
|
|
|
446
|
|
|
|
567
|
|
|
|
195
|
|
Plus Amortization of
internally developed software
|
|
|
750
|
|
|
|
955
|
|
|
|
1,057
|
|
|
|
1,142
|
|
|
|
|
3,904
|
|
|
|
|
864
|
|
|
|
818
|
|
|
|
648
|
|
Plus Amortization of
intangible assets
|
|
|
532
|
|
|
|
468
|
|
|
|
468
|
|
|
|
346
|
|
|
|
|
1,814
|
|
|
|
|
95
|
|
|
|
—
|
|
|
|
—
|
|
Plus Restructuring
related expenses
|
|
|
163
|
|
|
|
66
|
|
|
|
—
|
|
|
|
268
|
|
|
|
|
497
|
|
|
|
|
43
|
|
|
|
—
|
|
|
|
1,051
|
|
Less Capitalization of
internally developed software
|
|
|
(482)
|
|
|
|
(388)
|
|
|
|
(1,004)
|
|
|
|
(182)
|
|
|
|
|
(2,056)
|
|
|
|
|
(540)
|
|
|
|
(418)
|
|
|
|
(484)
|
|
Operating Loss
(Non-GAAP)
|
|
$
|
(3,465)
|
|
|
$
|
(2,614)
|
|
|
$
|
(2,900)
|
|
|
$
|
(2,132)
|
|
|
|
$
|
(11,111)
|
|
|
|
$
|
(3,507)
|
|
|
$
|
(3,572)
|
|
|
$
|
(2,845)
|
|
Net Loss
(GAAP)
|
|
$
|
(4,606)
|
|
|
$
|
(4,003)
|
|
|
$
|
(3,273)
|
|
|
$
|
(526)
|
|
|
|
$
|
(12,408)
|
|
|
|
$
|
(3,971)
|
|
|
$
|
(3,481)
|
|
|
$
|
(4,072)
|
|
Plus Impairment of
goodwill
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,910
|
|
|
|
|
1,910
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Plus Stock-based
compensation
|
|
|
685
|
|
|
|
762
|
|
|
|
653
|
|
|
|
564
|
|
|
|
|
2,664
|
|
|
|
|
446
|
|
|
|
567
|
|
|
|
195
|
|
Plus Amortization of
internally developed software
|
|
|
750
|
|
|
|
955
|
|
|
|
1,057
|
|
|
|
1,142
|
|
|
|
|
3,904
|
|
|
|
|
864
|
|
|
|
818
|
|
|
|
648
|
|
Plus Amortization of
intangible assets
|
|
|
532
|
|
|
|
468
|
|
|
|
468
|
|
|
|
346
|
|
|
|
|
1,814
|
|
|
|
|
95
|
|
|
|
—
|
|
|
|
—
|
|
Plus Restructuring
related expenses
|
|
|
163
|
|
|
|
66
|
|
|
|
—
|
|
|
|
268
|
|
|
|
|
497
|
|
|
|
|
43
|
|
|
|
—
|
|
|
|
1,051
|
|
Less Capitalization of
internally developed software
|
|
|
(482)
|
|
|
|
(388)
|
|
|
|
(1,004)
|
|
|
|
(182)
|
|
|
|
|
(2,056)
|
|
|
|
|
(540)
|
|
|
|
(418)
|
|
|
|
(484)
|
|
Less Gain on
divestiture of Perfect Audience
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(5,064)
|
|
|
|
|
(5,064)
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Net Loss
(Non-GAAP)
|
|
$
|
(2,958)
|
|
|
$
|
(2,140)
|
|
|
$
|
(2,099)
|
|
|
$
|
(1,542)
|
|
|
|
$
|
(8,739)
|
|
|
|
$
|
(3,063)
|
|
|
$
|
(2,514)
|
|
|
$
|
(2,662)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marin Software
Incorporated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Year
Ended
|
|
|
|
Three Months
Ended
|
|
|
|
|
March
31, 2019
|
|
|
June
30, 2019
|
|
|
September 30, 2019
|
|
|
December 31, 2019
|
|
|
|
December 31, 2019
|
|
|
|
March
31, 2020
|
|
|
June
30, 2020
|
|
|
September
30, 2020
|
|
(Unaudited; in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss
(Non-GAAP)
|
|
|
$
|
(2,958)
|
|
|
$
|
(2,140)
|
|
|
$
|
(2,099)
|
|
|
$
|
(1,542)
|
|
|
|
$
|
(8,739)
|
|
|
|
$
|
(3,063)
|
|
|
$
|
(2,514)
|
|
|
$
|
(2,662)
|
|
Weighted-average
shares outstanding, basic and diluted
|
|
|
|
5,945
|
|
|
|
6,201
|
|
|
|
6,631
|
|
|
|
6,705
|
|
|
|
|
6,373
|
|
|
|
|
6,819
|
|
|
|
6,912
|
|
|
|
7,017
|
|
Non-GAAP net loss per
common share, basic and diluted
|
|
|
$
|
(0.50)
|
|
|
$
|
(0.35)
|
|
|
$
|
(0.32)
|
|
|
$
|
(0.23)
|
|
|
|
$
|
(1.37)
|
|
|
|
$
|
(0.45)
|
|
|
$
|
(0.36)
|
|
|
$
|
(0.38)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marin Software
Incorporated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Net Loss to Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Year
Ended
|
|
|
|
Three Months
Ended
|
|
|
|
|
March
31, 2019
|
|
|
June
30, 2019
|
|
|
September 30, 2019
|
|
|
December 31, 2019
|
|
|
|
December 31, 2019
|
|
|
|
March
31, 2020
|
|
|
June
30, 2020
|
|
|
September
30, 2020
|
|
(Unaudited; in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss
|
|
|
$
|
(4,606)
|
|
|
$
|
(4,003)
|
|
|
$
|
(3,273)
|
|
|
$
|
(526)
|
|
|
|
$
|
(12,408)
|
|
|
|
$
|
(3,971)
|
|
|
$
|
(3,481)
|
|
|
$
|
(4,072)
|
|
Depreciation
|
|
|
|
499
|
|
|
|
482
|
|
|
|
494
|
|
|
|
459
|
|
|
|
|
1,934
|
|
|
|
|
893
|
|
|
|
402
|
|
|
|
366
|
|
Amortization of
internally developed software
|
|
|
|
750
|
|
|
|
955
|
|
|
|
1,057
|
|
|
|
1,142
|
|
|
|
|
3,904
|
|
|
|
|
864
|
|
|
|
818
|
|
|
|
648
|
|
Amortization of
intangible assets
|
|
|
|
532
|
|
|
|
468
|
|
|
|
468
|
|
|
|
346
|
|
|
|
|
1,814
|
|
|
|
|
95
|
|
|
|
-
|
|
|
|
-
|
|
Provision for (benefit
from) income taxes
|
|
|
|
33
|
|
|
|
58
|
|
|
|
(161)
|
|
|
|
(50)
|
|
|
|
|
(120)
|
|
|
|
|
25
|
|
|
|
(521)
|
|
|
|
(72)
|
|
Impairment of
goodwill
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,910
|
|
|
|
|
1,910
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Stock-based
compensation
|
|
|
|
685
|
|
|
|
762
|
|
|
|
653
|
|
|
|
564
|
|
|
|
|
2,664
|
|
|
|
|
446
|
|
|
|
567
|
|
|
|
195
|
|
Capitalization of
internally developed software
|
|
|
|
(482)
|
|
|
|
(388)
|
|
|
|
(1,004)
|
|
|
|
(182)
|
|
|
|
|
(2,056)
|
|
|
|
|
(540)
|
|
|
|
(418)
|
|
|
|
(484)
|
|
Gain on divestiture of
Perfect Audience
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(5,064)
|
|
|
|
|
(5,064)
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Restructuring related
expenses
|
|
|
|
163
|
|
|
|
66
|
|
|
|
—
|
|
|
|
268
|
|
|
|
|
497
|
|
|
|
|
43
|
|
|
|
—
|
|
|
|
1,051
|
|
Other income,
net
|
|
|
|
(540)
|
|
|
|
(532)
|
|
|
|
(640)
|
|
|
|
(540)
|
|
|
|
|
(2,252)
|
|
|
|
|
(469)
|
|
|
|
(537)
|
|
|
|
(111)
|
|
Adjusted
EBITDA
|
|
|
$
|
(2,966)
|
|
|
$
|
(2,132)
|
|
|
$
|
(2,406)
|
|
|
$
|
(1,673)
|
|
|
|
$
|
(9,177)
|
|
|
|
$
|
(2,614)
|
|
|
$
|
(3,170)
|
|
|
$
|
(2,479)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/marin-software-announces-third-quarter-financial-results-301167449.html
SOURCE Marin Software