Marin Software Incorporated (NYSE: MRIN), provider of a leading
Revenue Acquisition Management platform for advertisers and
agencies, today announced financial results for the second quarter
ended June 30, 2013.
“Marin showed strong revenue growth in the second quarter as
more advertisers and agencies adopted our cloud-based Revenue
Acquisition Management platform to measure, manage, and optimize
their digital advertising investments across search, display,
social, and mobile channels,” said Chris Lien, founder and chief
executive officer of Marin. “Leading digital marketers globally
choose Marin’s solution to drive better revenue and business
outcomes, while saving time and unlocking business insights.”
Second Quarter 2013 Financial
Highlights:
- Net Revenues: Net revenues
totaled $18.2 million, a year-over-year increase of 30% when
compared to $14.0 million in the prior year period.
- Gross profit: GAAP gross profit
was $10.5 million, resulting in gross margin of 58%, compared to
GAAP gross margin of 57% during the second quarter of 2012.
Non-GAAP gross profit was $11.0 million, resulting in non-GAAP
gross margin of 61%, compared to non-GAAP gross margin of 59%
during the second quarter of 2012.
- Loss from operations: GAAP loss
from operations was ($8.8) million, compared to ($5.6) million for
the second quarter of 2012. GAAP operating margin was (48%),
compared to (40%) during the second quarter of 2012. Non-GAAP loss
from operations was ($8.1) million, compared to ($5.5) million for
the second quarter of 2012. Non-GAAP operating margin was (45%),
compared to (39%) during the second quarter of 2012.
- Net loss: Net loss was ($9.1)
million or ($0.28) per share based on 32.2 million weighted average
shares outstanding. This compares to a net loss of ($5.8) million
or ($1.37) per share based upon 4.3 million weighted average shares
outstanding for the second quarter of 2012.
- Non-GAAP net loss: Non-GAAP net
loss was ($8.4) million or ($0.26) per share based upon 32.2
million weighted average shares outstanding. This compares to
($5.7) million or ($0.26) per share based on 21.5 million weighted
average shares outstanding during the second quarter of 2012, which
assumes our convertible preferred stock was converted to common
stock for the full quarter.
- Adjusted EBITDA: Adjusted EBITDA
was a loss of ($7.0) million, as compared to a loss of ($4.8)
million for the second quarter of 2012.
- Balance Sheet: At June 30, 2013,
cash and cash equivalents totaled $120.6 million, compared to $31.5
million as of December 31, 2012. Marin received $109.3 million in
proceeds, net of issuance costs paid, from its initial public
offering, including exercise of the over-allotment option, during
the six months ended June 30, 2013.
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."
Second Quarter 2013 Business
Highlights
- Released additional support for Google
enhanced campaigns and Yahoo! Japan unified campaigns. Marin’s new
reporting and mobile-bid adjustment capabilities for Google
enhanced campaigns improve ad campaign visibility and help maximize
mobile performance. Yahoo! Japan advertisers can now migrate
existing ad campaigns to unified campaigns, set campaign-level bid
adjustments, and create mobile-preferred ads through Marin.
- Managed the Google enhanced campaign
and Yahoo! Japan unified campaign URL build process for clients,
which required over one billion URLs to be made mobile-ready.
Marin’s custom device tracking process saved clients from having to
rebuild nearly 500 million URLs.
- Added additional mobile targeting
options for Facebook advertisers, allowing them to target users
based on their mobile device usage. Marin users can now reach
Facebook users on specific versions of mobile operating systems
(OS) or those who are using WIFI connections. Marin’s new Facebook
Campaign Wizard enables marketers to easily create Facebook desktop
and mobile campaigns at scale. Marin launched a capability to help
marketers promote their mobile applications across unlimited
audience segments, drive downloads and track lifetime value from
installations.
- Delivered improvements to platform
support for Google Shopping and Product Listing Ads in anticipation
of the holiday season. Through Marin, retailers can bulk upload
product targets, saving marketers a significant amount of time and
effort.
- Increased the number of active
advertisers leveraging the Marin platform. During the second
quarter, 584 active advertisers utilized the Marin platform,
compared to 487 during the second quarter of 2012. Marin defines
active advertisers as an advertiser from whom Marin recognized
revenues in excess of $2,000 in at least one month during the
quarter.
- Appointed industry veteran, Matt
Ackley, Chief Marketing Officer to oversee global marketing for
Marin. Ackley brings to Marin over 15 years of executive-level
product and marketing experience at eBay, Google and high-growth
startups.
- Added Brian Kaminski as Senior Vice
President of Customer Success with a focus on direct advertisers.
Kaminski was most recently President of Business Performance at
iProspect, a leading digital marketing agency where he worked for
nearly 15 years.
- Awarded Best PPC Management Software at
the European Search Awards for the second consecutive year. Marin
was also named a winner of the 2013 San Francisco Business Times
Tech and Innovation Awards.
Financial Outlook:
As of August 7th, 2013, Marin is initiating guidance for its
third quarter and updating the full year 2013 as follows:
Forward-Looking Guidance In millions, except per
share data Range of Estimate From
To Three Months Ending September 30,
2013 Revenues, net $ 19.6 $ 20.0 Non-GAAP loss from
operations $ (8.5 ) $ (8.1 ) Non-GAAP net loss per share $ (0.28 )
$ (0.26 ) Weighted average shares outstanding 32.4
Twelve
Months Ending December 31, 2013 Revenues, net $ 76.0 $
76.8 Non-GAAP loss from operations $ (33.0 ) $ (32.2 ) Non-GAAP net
loss per share $ (1.15 ) $ (1.12 ) Weighted average shares
outstanding 30.5
Non-GAAP loss from operations and non-GAAP net loss per share
excludes the effects of stock-based compensation, amortization of
internally developed software, noncash expenses related to warrants
and capitalization of internally developed software. Additionally,
the weighted average shares outstanding for the twelve months
ending December 31, 2013 gives effect to the conversion of
convertible preferred stock at the beginning of the period.
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 June 30, 2013 and its
outlook for the future. To access the call, please dial (877)
705-6003 in the U.S. or (201) 493-6725 internationally. Passcode is
411944. A live webcast of the conference will be accessible from
Marin Software’s website at: http://investor.marinsoftware.com/. A
recording will be available for replay at:
http://investor.marinsoftware.com/.
About Marin Software
Marin Software Incorporated (NYSE: MRIN) provides a leading
Revenue Acquisition Management platform used by advertisers and
agencies to manage more than $4 billion in annualized ad spend.
Offering an integrated platform for search, social, display, and
mobile advertising, Marin helps advertisers and agencies improve
financial performance, save time, and make better decisions.
Headquartered in San Francisco, with offices worldwide, Marin's
technology powers marketing campaigns in more than 160 countries.
For more information about Marin’s products, please visit:
http://www.marinsoftware.com/solutions/overview.
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 its
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.
Marin defines non-GAAP gross profit, loss from operations and
net loss as the respective GAAP balances, adjusted for stock-based
compensation expense, capitalized internal-use software development
costs, noncash expenses from the issuance of warrants, and the
amortization of capitalized internal-use software. 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.
Marin defines Adjusted EBITDA as net loss, adjusted for
stock-based compensation expense, depreciation and amortization,
capitalized internal-use software development costs, interest
expense, net, provision for income taxes and other income
(expenses), net. 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 reflect 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, growth, momentum, and future financial results, including
its outlook for Q3 2013 and FY 2013. 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 (i) adverse changes in general economic or market
conditions; (ii) delays, reductions or slower growth in the amount
spent on online and mobile advertising and the development of the
market for cloud-based software; (iii) competitive factors,
including but not limited to pricing pressures, entry of new
competitors and new applications; (iv) adverse changes in our
relationships with and access to publishers and advertising
agencies; (v) level of usage and advertising spend managed on our
platform; (vi) our ability to expand sales of our solutions in
channels other than search advertising; (vii) our ability to expand
our sales and marketing capabilities and manage our growth
effectively; (viii) the development of the market for digital
advertising or revenue acquisition management; (ix) acceptance and
continued usage of our platform and services by customers and our
ability to provide high-quality technical support to our customers;
(x) material defects in our platform, service interruptions at our
single third-party data center or breaches in our security
measures; (xi) our ability to develop enhancements to our platform;
(xii) our ability to protect our intellectual property; (xiii) our
ability to manage risks associated with international operations;
(xiv) 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 and business model; (xv) our ability to
retain and attract qualified management and technical personnel;
and (xvi) 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-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 August 7, 2013. Marin assumes no obligation to,
and expressly disclaims any obligation to update any such
forward-looking statements after the date of this release.
Condensed Consolidated Balance Sheets
(On a GAAP basis) (Unaudited; in thousands, except
par value) June 30, December 31,
2013 2012
Assets Current assets
Cash and cash equivalents
$ 120,579 $ 31,540 Accounts receivable, net 12,354 13,133 Prepaid
expenses and other current assets 3,328 1,814
Total current assets 136,261 46,487 Property and equipment,
net 13,426 9,224 Other noncurrent assets 397
1,513 Total assets $ 150,084 $ 57,224
Liabilities, Preferred Stock and Stockholders' Equity
(Deficit) Current liabilities Accounts payable $ 1,570 $ 1,268
Accrued expenses 10,636 9,661 Deferred revenue 3,757 618 Current
portion of long-term debt 2,782 1,572
Total current liabilities 18,745 13,119 Long-term debt, less
current portion 3,066 9,243 Other long term liabilities
1,496 1,858 Total liabilities 23,307
24,220 Convertible preferred stock, $0.001 par
value - 105,710 Stockholders’ equity (deficit) Common stock, $0.001
par value 32 5 Additional paid-in capital 223,692 4,638 Accumulated
deficit (96,947 ) (77,349 ) Total stockholders’
equity (deficit) 126,777 (72,706 )
Total liabilities, preferred stock and
stockholders’equity (deficit)
$ 150,084 $ 57,224
Condensed Consolidated
Statements of Operations Three Months
Ended Six Months Ended (On a GAAP
basis) June 30, June 30, (Unaudited; in
thousands, except per share data) 2013
2012 2013 2012
Revenues, net $ 18,218 $ 14,032 $
35,373 $ 27,006 Cost of revenues (1) 7,696
5,989 15,068 11,243 Gross profit
10,522 8,043 20,305
15,763
Operating expenses (1) Sales and
marketing 10,350 8,021 20,809 14,873 Research and development 4,904
3,078 9,983 6,045 General and administrative 4,026
2,517 8,074 6,910 Total
operating expenses 19,280 13,616
38,866 27,828 Loss from operations (8,758 )
(5,573 ) (18,561 ) (12,065 ) Interest expense, net (109 ) (102 )
(293 ) (212 ) Other expenses, net (81 ) (94 )
(489 ) (197 ) Loss before provision for income taxes (8,948
) (5,769 ) (19,343 ) (12,474 ) Provision for income taxes
(149 ) (55 ) (255 ) (104 ) Net loss $ (9,097 )
$ (5,824 ) $ (19,598 ) $ (12,578 ) Net loss per common
share, basic and diluted $ (0.28 ) $ (1.37 ) $ (0.99 ) $
(2.94 ) Weighted-average shares outstanding, basic and diluted
32,237 4,261 19,871
4,282 (1) Includes stock-based compensation as
follows: Cost of revenues $ 245 $ 115 $ 450 $ 171 Sales and
marketing 361 124 654 556 Research and development 303 132 611 496
General and administrative 400 156
819 2,195 $ 1,309 $ 527 $
2,534 $ 3,418
Condensed Consolidated
Statements of Cash Flows Six Months Ended
(On a GAAP basis) June 30, (Unaudited; in
thousands) 2013 2012
Operating activities Net loss $ (19,598
) $ (12,578 ) Adjustments to reconcile net loss to net cash used in
operating activities Depreciation 2,129 1,102 Amortization of
internally developed software 483 210 Noncash expenses related to
warrants 383 273 Stock-based compensation 2,534 3,418 Provision for
bad debt 114 227 Other noncash expenses - 74 Excess tax benefits
from stock-based award activities (37 ) - Changes in operating
assets and liabilities Accounts receivable 665 (1,695 ) Prepaid
expenses and other current assets (1,514 ) (293 ) Other assets 16
(60 ) Accounts payable (826 ) 56 Deferred revenue 3,139 445 Accrued
expenses and other liabilities 1,879 540
Net cash used in operating activities (10,633 )
(8,281 )
Investing activities Purchases of property
and equipment (2,934 ) (2,855 ) Capitalization of internally
developed software (1,548 ) (834 ) Net cash used in
investing activities (4,482 ) (3,689 )
Financing
activities Proceeds from issuance of common stock in initial
public offering, net of issuance costs 109,454 - Proceeds from
issuance of note payable, net of issuance costs 1,718 7,314
Repayment of note payable (8,034 ) (3,383 ) Redemption of common
stock and unvested shares subject to repurchase (45 ) (4,502 )
Proceeds from issuance of convertible, preferred stock, net of
issuance costs - 34,294 Proceeds from common stock purchase
agreements and option exercises 1,024 1,876 Excess tax benefits
from stock-based award activities 37 -
Net cash provided by financing activities 104,154
35,599 Net increase in cash and cash equivalents
89,039 23,629
Cash and cash equivalents Beginning of period
31,540 1,719 End of period $ 120,579
$ 25,348
Reconciliation of GAAP to Non-GAAP
Measures
(Unaudited; in thousands) Three Months Ended Year
Ended Three Months Ended
March 31, June 30, September 30,
December 31, December 31, March 31, June
30, 2012 2012 2012 2012 2012
2013 2013 Gross Profit (GAAP) $ 7,720 $ 8,043
$ 9,016 $ 10,015 $ 34,794 $ 9,783 $ 10,522 Plus Stock-based
compensation 56 115 121 147 439 205 245 Plus Amortization of
internally developed software 96 114 136 179 525 227 256 Less
Capitalization of internally developed software -
- (23 ) (15 ) (38 ) -
- Gross Profit (Non-GAAP) $ 7,872 $ 8,272 $
9,250 $ 10,326 $ 35,720 $ 10,215 $ 11,023 Operating loss
(GAAP) $ (6,492 ) $ (5,573 ) $ (6,423 ) $ (6,797 ) $ (25,285 ) $
(9,803 ) $ (8,758 ) Plus Stock-based compensation 2,891 527 829 701
4,948 1,225 1,309 Plus Amortization of internally developed
software 96 114 136 179 525 227 256 Plus Noncash expenses related
to warrants 60 - - - 60 - - Less Capitalization of internally
developed software (303 ) (531 ) (440 )
(469 ) (1,743 ) (632 ) (916 ) Operating loss
(Non-GAAP) $ (3,748 ) $ (5,463 ) $ (5,898 ) $ (6,386 ) $ (21,495 )
$ (8,983 ) $ (8,109 ) Net Loss (GAAP) $ (6,754 ) $ (5,824 )
$ (6,648 ) $ (7,256 ) $ (26,482 ) $ (10,501 ) $ (9,097 ) Plus
Stock-based compensation 2,891 527 829 701 4,948 1,225 1,309 Plus
Amortization of internally developed software 96 114 136 179 525
227 256 Plus Noncash expenses related to warrants 223 50 61 247 581
310 73 Less Capitalization of internally developed software
(303 ) (531 ) (440 ) (469 ) (1,743 )
(632 ) (916 ) Net Loss (Non-GAAP) $ (3,847 ) $ (5,664
) $ (6,062 ) $ (6,598 ) $ (22,171 ) $ (9,371 ) $ (8,375 )
Calculation of Non-GAAP Earnings Per Share
(Unaudited; in thousands, except per
share data) Three Months Ended Year Ended
Three Months Ended March
31, June 30, September 30, December 31,
December 31, March 31, June 30, 2012
2012 2012 2012 2012 2013
2013 Net Loss (Non-GAAP) $ (3,847 ) $ (5,664 ) $ (6,062 ) $
(6,598 ) $ (22,171 ) $ (9,371 ) $ (8,375 ) Weighted-average
shares outstanding, basic and diluted 4,254 4,261 4,404 4,559 4,417
7,365 32,237 Additional weighted average shares giving effect to
conversion of convertible preferred stock at the beginning of the
period 17,275 17,275 17,275
18,753 18,753 16,877
- Shares used in computing non-GAAP net loss
per share, basic and diluted 21,529 21,536
21,679 23,312 23,170
24,242 32,237 Non-GAAP net loss
per common share, basic and diluted $ (0.18 ) $ (0.26 ) $ (0.28 ) $
(0.28 ) $ (0.96 ) $ (0.39 ) $ (0.26 )
Reconciliation of Net Loss to Adjusted EBITDA
(Unaudited; in thousands) Three Months Ended Year
Ended Three Months Ended March 31, June
30, September 30, December 31, December
31, March 31, June 30, 2012 2012
2012 2012 2012 2013 2013 Net
loss $ (6,754 ) $ (5,824 ) $ (6,648 ) $ (7,256 ) $ (26,482 ) $
(10,501 ) $ (9,097 ) Depreciation 488 614 700 840 2,642 1,008 1,121
Amortization of internally developed software 96 114 136 179 525
227 256 Interest expense, net 110 102 137 171 520 184 109 Provision
for income taxes 49 55 63
54 221 106 149
EBITDA (6,011 ) (4,939 ) (5,612 ) (6,012 ) (22,574 ) (8,976
) (7,462 ) Stock-based compensation 2,891 527 829 701 4,948 1,225
1,309 Capitalization of internally developed software (303 ) (531 )
(440 ) (469 ) (1,743 ) (632 ) (916 ) Other (income) expenses, net
103 94 25 234
456 408 81
Adjusted EBITDA $ (3,320 ) $ (4,849 ) $ (5,198 ) $ (5,546 ) $
(18,913 ) $ (7,975 ) $ (6,988 )
Marin Software (NASDAQ:MRIN)
Historical Stock Chart
From Jun 2024 to Jul 2024
Marin Software (NASDAQ:MRIN)
Historical Stock Chart
From Jul 2023 to Jul 2024