SAN FRANCISCO, May 10, 2018 /PRNewswire/ -- 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 first quarter
ended March 31, 2018.
"Our growth in cross-channel revenue during Q1 demonstrates the
appeal for an open, independent approach to digital
advertising," said Chris Lien,
Chief Executive Officer of Marin Software. "Our new platform, which
launches this summer, will help advertisers drive performance in a
world where Google, Facebook and increasingly Amazon,
dominate."
First Quarter 2018 Business and Product Release
Highlights:
- Onboarded first customers advertising on Amazon, including a
multinational pharmaceutical corporation and a leading consumer
electronics and technology company.
- Upgraded Marin Bidding to
automatically calculate audience bid multipliers based on campaign
performance, driving greater ad spend efficiency for
advertisers.
- Developed a tool to automatically create a video slideshow ad
from top-performing products, helping to drive increased engagement
on social advertising.
- Expanded offerings for social travel advertisers by supporting
trip consideration and broad audiences for Facebook's Dynamic Ads
for Travel.
- Debuted customizable cross-channel dashboards, providing
advertisers with access to all key search and social campaign
metrics in a single view.
- Launched Unified Reporting, allowing advertisers to see all
campaigns in a single grid across search and social publishers for
better cross-channel alignment.
- Added support for Twitter Website Video Cards, providing
advertisers another outlet for delivering engaging video
content.
- Added support for Facebook offer ads where advertisers can
create and track promotions. Marin's proprietary Offer Library
makes it easier to launch and reuse offers at scale.
First Quarter 2018 Financial Updates:
- Net revenues totaled $15.4
million, a year-over-year decrease of 24%, when compared to
$20.3 million in the first quarter of
2017.
- GAAP loss from operations was ($9.1)
million, resulting in a GAAP operating margin of (59%),
compared to a GAAP loss from operations of ($6.0) million and a GAAP operating margin of
(29%) for the first quarter of 2017. Non-GAAP loss from operations
was ($6.0) million, resulting in a
non-GAAP operating margin of (39%), as compared to a non-GAAP loss
from operations of ($3.2) million and
a non-GAAP operating margin of (16%) for the first quarter of
2017.
- Cash, cash equivalents and restricted cash totaled $23.3 million as of March
31, 2018, as compared to $28.8
million as of December 31,
2017.
- During January 2018, initiated an
organizational restructuring plan designed to reduce operating
expenses and better align the Company's efforts to return to
growth. This restructuring plan is expected to result in annualized
cost savings of $6.0 million to
$7.0 million going forward. In
connection, the Company incurred $0.9
million in restructuring related expenses during the first
quarter of 2018, consisting primarily of employee severance
costs.
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."
Financial Outlook:
Marin is providing guidance for its
second quarter of 2018 as follows:
Forward-Looking
Guidance
|
In
millions
|
|
|
|
|
|
|
|
|
|
Range of
Estimate
|
|
|
From
|
|
To
|
Three Months
Ending June 30, 2018
|
|
|
|
|
|
|
Revenues,
net
|
|
$
|
13.5
|
|
$
|
14.0
|
Non-GAAP loss from
operations
|
|
|
(6.7)
|
|
|
(6.2)
|
Non-GAAP loss from operations excludes the effects of
stock-based compensation, amortization of internally developed
software, intangible assets and deferred costs to obtain and
fulfill contracts, impairment of goodwill and long-lived assets,
non-recurring costs associated with restructurings, capitalization
of internally developed software and deferral of costs to obtain
and fulfill contracts.
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 March 31, 2018, 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 the company name
and conference title. A live webcast of the conference call will be
accessible at http://public.viavid.com/index.php?id=129324.
Following the completion of the call through 11:59 PM Eastern Time on May 17, 2018, 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 United States or (412) 317-6671
internationally with the recording access code 13678855.
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 a SaaS advertising
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,
amortization of internally developed software, intangible assets
and deferred costs to obtain and fulfill contracts, impairment of
goodwill and long-lived assets, non-cash expenses related to debt
agreements, non-recurring costs associated with restructurings,
capitalization of internally developed software and deferral of
costs to obtain and fulfill contracts. 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, intangible assets
and deferred costs to obtain and fulfill contracts, capitalization
of internally developed software, deferral of costs to obtain and
fulfill contracts, impairment of goodwill and long-lived assets,
provision for income taxes, other income or expenses, net and
non-recurring costs associated with 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
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 second quarter of 2018.
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 May 10, 2018. 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
Inc.
|
Condensed
Consolidated Balance Sheets
|
(On a GAAP
basis)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
|
December
31,
|
|
(Unaudited; in
thousands, except par value)
|
|
2018
|
|
|
2017
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
21,983
|
|
|
$
|
27,544
|
|
Restricted
cash
|
|
|
1,293
|
|
|
|
1,293
|
|
Accounts receivable,
net
|
|
|
11,000
|
|
|
|
12,237
|
|
Prepaid expenses and
other current assets
|
|
|
5,652
|
|
|
|
3,989
|
|
Total current
assets
|
|
|
39,928
|
|
|
|
45,063
|
|
Property and
equipment, net
|
|
|
14,579
|
|
|
|
15,559
|
|
Goodwill
|
|
|
16,816
|
|
|
|
16,768
|
|
Intangible assets,
net
|
|
|
3,785
|
|
|
|
4,475
|
|
Other non-current
assets
|
|
|
2,357
|
|
|
|
1,504
|
|
Total
assets
|
|
$
|
77,465
|
|
|
$
|
83,369
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
2,762
|
|
|
$
|
2,826
|
|
Accrued expenses and
other current liabilities
|
|
|
8,474
|
|
|
|
10,474
|
|
Capital lease
obligations
|
|
|
1,438
|
|
|
|
1,416
|
|
Total current
liabilities
|
|
|
12,674
|
|
|
|
14,716
|
|
Capital lease
obligations, non-current
|
|
|
1,347
|
|
|
|
1,687
|
|
Other long-term
liabilities
|
|
|
4,158
|
|
|
|
4,183
|
|
Total
liabilities
|
|
|
18,179
|
|
|
|
20,586
|
|
Stockholders'
equity
|
|
|
|
|
|
|
|
|
Common stock, $0.001
par value
|
|
|
6
|
|
|
|
6
|
|
Additional paid-in
capital
|
|
|
292,099
|
|
|
|
291,163
|
|
Accumulated
deficit
|
|
|
(232,581)
|
|
|
|
(227,704)
|
|
Accumulated other
comprehensive loss
|
|
|
(238)
|
|
|
|
(682)
|
|
Total stockholders'
equity
|
|
|
59,286
|
|
|
|
62,783
|
|
Total liabilities and
stockholders' equity
|
|
$
|
77,465
|
|
|
$
|
83,369
|
|
Marin Software
Inc.
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Operations
|
(On a GAAP
basis)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
(Unaudited; in
thousands, except per share data)
|
|
2018
|
|
|
2017
|
Revenues,
net
|
|
$
|
15,402
|
|
|
$
|
20,333
|
Cost of
revenues
|
|
|
7,572
|
|
|
|
8,324
|
Gross
profit
|
|
|
7,830
|
|
|
|
12,009
|
Operating
expenses
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
|
7,381
|
|
|
|
6,676
|
Research and
development
|
|
|
6,155
|
|
|
|
7,138
|
General and
administrative
|
|
|
3,377
|
|
|
|
4,177
|
Total operating
expenses
|
|
|
16,913
|
|
|
|
17,991
|
Loss from
operations
|
|
|
(9,083)
|
|
|
|
(5,982)
|
Other income,
net
|
|
|
295
|
|
|
|
262
|
Loss before provision
for income taxes
|
|
|
(8,788)
|
|
|
|
(5,720)
|
Provision for income
taxes
|
|
|
(324)
|
|
|
|
(406)
|
Net loss
|
|
$
|
(9,112)
|
|
|
$
|
(6,126)
|
Net loss per common
share, basic and diluted
|
|
$
|
(1.59)
|
|
|
$
|
(1.10)
|
Weighted-average
shares outstanding, basic and diluted
|
|
|
5,736
|
|
|
|
5,583
|
Marin Software
Inc.
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
(On a GAAP
basis)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
(Unaudited; in
thousands)
|
2018
|
|
|
2017
|
Operating
activities
|
|
|
|
|
|
|
Net loss
|
$
|
(9,112)
|
|
|
$
|
(6,126)
|
Adjustments to
reconcile net loss to net cash used in operating
activities
|
|
|
|
|
|
|
Depreciation
|
|
798
|
|
|
|
1,336
|
Amortization of
internally developed software
|
|
957
|
|
|
|
788
|
Amortization of
intangible assets
|
|
690
|
|
|
|
730
|
Amortization of
deferred costs to obtain and fulfill contracts
|
|
605
|
|
|
|
—
|
Unrealized foreign
currency losses (gains)
|
|
24
|
|
|
|
(12)
|
Non-cash interest
expense related to debt agreements
|
|
—
|
|
|
|
6
|
Stock-based
compensation related to equity awards and restricted
stock
|
|
1,028
|
|
|
|
1,842
|
(Recovery from)
provision for bad debts
|
|
(214)
|
|
|
|
416
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
|
Accounts
receivable
|
|
1,451
|
|
|
|
2,439
|
Prepaid expenses and
other assets
|
|
(482)
|
|
|
|
(1,417)
|
Accounts
payable
|
|
(48)
|
|
|
|
(49)
|
Accrued expenses and
other current liabilities
|
|
(620)
|
|
|
|
(574)
|
Net cash used in
operating activities
|
|
(4,923)
|
|
|
|
(621)
|
Investing
activities
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
(98)
|
|
|
|
(169)
|
Capitalization of
internally developed software
|
|
(693)
|
|
|
|
(543)
|
Net cash used in
investing activities
|
|
(791)
|
|
|
|
(712)
|
Financing
activities
|
|
|
|
|
|
|
Repayments of capital
lease obligations
|
|
(318)
|
|
|
|
(249)
|
Employee taxes paid
for withheld shares upon equity award settlement
|
|
(26)
|
|
|
|
(156)
|
Proceeds from
employee stock purchase plan, net
|
|
78
|
|
|
|
136
|
Net cash used in
financing activities
|
|
(266)
|
|
|
|
(269)
|
Effect of foreign
exchange rate changes on cash and cash equivalents and restricted
cash
|
|
419
|
|
|
|
181
|
Net decrease in cash
and cash equivalents and restricted cash
|
|
(5,561)
|
|
|
|
(1,421)
|
Cash and cash
equivalents and restricted cash
|
|
|
|
|
|
|
Beginning of
period
|
|
28,837
|
|
|
|
35,713
|
End of
period
|
$
|
23,276
|
|
|
$
|
34,292
|
Marin Software
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
(Unaudited; in
thousands)
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
|
2017
|
|
|
|
2018
|
Sales and Marketing
(GAAP)
|
$
|
6,676
|
|
|
$
|
6,710
|
|
|
$
|
6,630
|
|
|
$
|
6,920
|
|
|
|
$
|
26,936
|
|
|
|
$
|
7,381
|
Less Stock-based
compensation
|
|
(212)
|
|
|
|
(200)
|
|
|
|
(197)
|
|
|
|
(218)
|
|
|
|
|
(827)
|
|
|
|
|
(240)
|
Less Amortization of
intangible assets
|
|
(223)
|
|
|
|
(222)
|
|
|
|
(216)
|
|
|
|
(216)
|
|
|
|
|
(877)
|
|
|
|
|
(213)
|
Less Amortization of
deferred costs to obtain contracts
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(432)
|
Less Restructuring
related expenses
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(497)
|
Plus Deferral of costs
to obtain contracts
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
257
|
Sales and Marketing
(Non-GAAP)
|
$
|
6,241
|
|
|
$
|
6,288
|
|
|
$
|
6,217
|
|
|
$
|
6,486
|
|
|
|
$
|
25,232
|
|
|
|
$
|
6,256
|
Research and
Development (GAAP)
|
$
|
7,138
|
|
|
$
|
6,646
|
|
|
$
|
6,672
|
|
|
$
|
6,108
|
|
|
|
$
|
26,564
|
|
|
|
$
|
6,155
|
Less Stock-based
compensation
|
|
(996)
|
|
|
|
(318)
|
|
|
|
(326)
|
|
|
|
(356)
|
|
|
|
|
(1,996)
|
|
|
|
|
(339)
|
Less Amortization of
intangible assets
|
|
(247)
|
|
|
|
(244)
|
|
|
|
(239)
|
|
|
|
(239)
|
|
|
|
|
(969)
|
|
|
|
|
(237)
|
Less Restructuring
related expenses
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(115)
|
Plus Capitalization of
internally developed software
|
|
543
|
|
|
|
413
|
|
|
|
442
|
|
|
|
670
|
|
|
|
|
2,068
|
|
|
|
|
693
|
Research and
Development (Non-GAAP)
|
$
|
6,438
|
|
|
$
|
6,497
|
|
|
$
|
6,549
|
|
|
$
|
6,183
|
|
|
|
$
|
25,667
|
|
|
|
$
|
6,157
|
General and
Administrative (GAAP)
|
$
|
4,177
|
|
|
$
|
3,945
|
|
|
$
|
3,920
|
|
|
$
|
4,402
|
|
|
|
$
|
16,444
|
|
|
|
$
|
3,377
|
Less Stock-based
compensation
|
|
(323)
|
|
|
|
(248)
|
|
|
|
(234)
|
|
|
|
(254)
|
|
|
|
|
(1,059)
|
|
|
|
|
(245)
|
Less Amortization of
intangible assets
|
|
(13)
|
|
|
|
(10)
|
|
|
|
(5)
|
|
|
|
(5)
|
|
|
|
|
(33)
|
|
|
|
|
(3)
|
Less Restructuring
related expenses
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(111)
|
General and
Administrative (Non-GAAP)
|
$
|
3,841
|
|
|
$
|
3,687
|
|
|
$
|
3,681
|
|
|
$
|
4,143
|
|
|
|
$
|
15,352
|
|
|
|
$
|
3,018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marin Software
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
(Unaudited; in
thousands)
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
|
2017
|
|
|
|
2018
|
Gross Profit
(GAAP)
|
$
|
12,009
|
|
|
$
|
10,535
|
|
|
$
|
9,968
|
|
|
$
|
9,959
|
|
|
|
$
|
42,471
|
|
|
|
$
|
7,830
|
Plus Stock-based
compensation
|
|
311
|
|
|
|
152
|
|
|
|
166
|
|
|
|
193
|
|
|
|
|
822
|
|
|
|
|
204
|
Plus Amortization of
internally developed software
|
|
788
|
|
|
|
867
|
|
|
|
1,016
|
|
|
|
998
|
|
|
|
|
3,669
|
|
|
|
|
957
|
Plus Amortization of
intangible assets
|
|
247
|
|
|
|
245
|
|
|
|
240
|
|
|
|
239
|
|
|
|
|
971
|
|
|
|
|
237
|
Plus Amortization of
deferred costs to fulfill contracts
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
173
|
Plus Restructuring
related expenses
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
139
|
Less Deferral of costs
to fulfill contracts
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(115)
|
Gross Profit
(Non-GAAP)
|
$
|
13,355
|
|
|
$
|
11,799
|
|
|
$
|
11,390
|
|
|
$
|
11,389
|
|
|
|
$
|
47,933
|
|
|
|
$
|
9,425
|
Operating Loss
(GAAP)
|
$
|
(5,982)
|
|
|
$
|
(9,563)
|
|
|
$
|
(7,254)
|
|
|
$
|
(7,471)
|
|
|
|
$
|
(30,270)
|
|
|
|
$
|
(9,083)
|
Plus Impairment of
goodwill
|
|
—
|
|
|
|
2,797
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
2,797
|
|
|
|
|
—
|
Plus Stock-based
compensation
|
|
1,842
|
|
|
|
918
|
|
|
|
923
|
|
|
|
1,021
|
|
|
|
|
4,704
|
|
|
|
|
1,028
|
Plus Amortization of
internally developed software
|
|
788
|
|
|
|
867
|
|
|
|
1,016
|
|
|
|
998
|
|
|
|
|
3,669
|
|
|
|
|
957
|
Plus Amortization of
intangible assets
|
|
730
|
|
|
|
721
|
|
|
|
700
|
|
|
|
699
|
|
|
|
|
2,850
|
|
|
|
|
690
|
Plus Amortization of
deferred costs to fulfill contracts
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
173
|
Plus Amortization of
deferred costs to obtain contracts
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
432
|
Plus Restructuring
related expenses
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
862
|
Less Capitalization of
internally developed software
|
|
(543)
|
|
|
|
(413)
|
|
|
|
(442)
|
|
|
|
(670)
|
|
|
|
|
(2,068)
|
|
|
|
|
(693)
|
Less Deferral of costs
to fulfill contracts
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(115)
|
Less Deferral of costs
to obtain contracts
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(257)
|
Operating Loss
(Non-GAAP)
|
$
|
(3,165)
|
|
|
$
|
(4,673)
|
|
|
$
|
(5,057)
|
|
|
$
|
(5,423)
|
|
|
|
$
|
(18,318)
|
|
|
|
$
|
(6,006)
|
Net Loss
(GAAP)
|
$
|
(6,126)
|
|
|
$
|
(10,545)
|
|
|
$
|
(7,549)
|
|
|
$
|
(7,271)
|
|
|
|
$
|
(31,491)
|
|
|
|
$
|
(9,112)
|
Plus Impairment of
goodwill
|
|
—
|
|
|
|
2,797
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
2,797
|
|
|
|
|
—
|
Plus Stock-based
compensation
|
|
1,842
|
|
|
|
918
|
|
|
|
923
|
|
|
|
1,021
|
|
|
|
|
4,704
|
|
|
|
|
1,028
|
Plus Amortization of
internally developed software
|
|
788
|
|
|
|
867
|
|
|
|
1,016
|
|
|
|
998
|
|
|
|
|
3,669
|
|
|
|
|
957
|
Plus Amortization of
intangible assets
|
|
730
|
|
|
|
721
|
|
|
|
700
|
|
|
|
699
|
|
|
|
|
2,850
|
|
|
|
|
690
|
Plus Amortization of
deferred costs to fulfill contracts
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
173
|
Plus Amortization of
deferred costs to obtain contracts
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
432
|
Plus Non-cash expenses
related to debt agreements
|
|
6
|
|
|
|
7
|
|
|
|
2
|
|
|
|
—
|
|
|
|
|
15
|
|
|
|
|
—
|
Plus Restructuring
related expenses
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
862
|
Less Capitalization of
internally developed software
|
|
(543)
|
|
|
|
(413)
|
|
|
|
(442)
|
|
|
|
(670)
|
|
|
|
|
(2,068)
|
|
|
|
|
(693)
|
Less Deferral of costs
to fulfill contracts
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(115)
|
Less Deferral of costs
to obtain contracts
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(257)
|
Net Loss
(Non-GAAP)
|
$
|
(3,303)
|
|
|
$
|
(5,648)
|
|
|
$
|
(5,350)
|
|
|
$
|
(5,223)
|
|
|
|
$
|
(19,524)
|
|
|
|
$
|
(6,035)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marin Software
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of
Non-GAAP Earnings Per Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Year
Ended
|
|
|
|
Three Months
Ended
|
|
March
31,
|
|
|
June
30,
|
|
|
September
30,
|
|
|
December
31,
|
|
|
|
December
31,
|
|
|
|
March
31,
|
(Unaudited; in
thousands, except per share data)
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
|
2017
|
|
|
|
2018
|
Net Loss
(Non-GAAP)
|
$
|
(3,303)
|
|
|
$
|
(5,648)
|
|
|
$
|
(5,350)
|
|
|
$
|
(5,223)
|
|
|
|
$
|
(19,524)
|
|
|
|
$
|
(6,035)
|
Weighted-average
shares outstanding, basic and diluted
|
|
5,583
|
|
|
|
5,640
|
|
|
|
5,651
|
|
|
|
5,677
|
|
|
|
|
5,638
|
|
|
|
|
5,736
|
Non-GAAP net loss per
common share, basic and diluted
|
$
|
(0.59)
|
|
|
$
|
(1.00)
|
|
|
$
|
(0.95)
|
|
|
$
|
(0.92)
|
|
|
|
$
|
(3.46)
|
|
|
|
$
|
(1.05)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marin Software
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
(Unaudited; in
thousands)
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
|
2017
|
|
|
|
2018
|
Net Loss
|
$
|
(6,126)
|
|
|
$
|
(10,545)
|
|
|
$
|
(7,549)
|
|
|
$
|
(7,271)
|
|
|
|
$
|
(31,491)
|
|
|
|
$
|
(9,112)
|
Depreciation
|
|
1,336
|
|
|
|
1,263
|
|
|
|
1,149
|
|
|
|
1,010
|
|
|
|
|
4,758
|
|
|
|
|
798
|
Amortization of
internally developed software
|
|
788
|
|
|
|
867
|
|
|
|
1,016
|
|
|
|
998
|
|
|
|
|
3,669
|
|
|
|
|
957
|
Amortization of
intangible assets
|
|
730
|
|
|
|
721
|
|
|
|
700
|
|
|
|
699
|
|
|
|
|
2,850
|
|
|
|
|
690
|
Amortization of
deferred costs to obtain and fulfill contracts
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
605
|
Provision for (benefit
from) income taxes
|
|
406
|
|
|
|
419
|
|
|
|
151
|
|
|
|
31
|
|
|
|
|
1,007
|
|
|
|
|
324
|
Impairment of
goodwill
|
|
—
|
|
|
|
2,797
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
2,797
|
|
|
|
|
—
|
Stock-based
compensation
|
|
1,842
|
|
|
|
918
|
|
|
|
923
|
|
|
|
1,021
|
|
|
|
|
4,704
|
|
|
|
|
1,028
|
Capitalization of
internally developed software
|
|
(543)
|
|
|
|
(413)
|
|
|
|
(442)
|
|
|
|
(670)
|
|
|
|
|
(2,068)
|
|
|
|
|
(693)
|
Deferral of costs to
obtain and fulfill contracts
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(372)
|
Restructuring related
expenses
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
862
|
Other (income)
expenses, net
|
|
(262)
|
|
|
|
563
|
|
|
|
144
|
|
|
|
(231)
|
|
|
|
|
214
|
|
|
|
|
(295)
|
Adjusted
EBITDA
|
$
|
(1,829)
|
|
|
$
|
(3,410)
|
|
|
$
|
(3,908)
|
|
|
$
|
(4,413)
|
|
|
|
$
|
(13,560)
|
|
|
|
$
|
(5,208)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original content with
multimedia:http://www.prnewswire.com/news-releases/marin-software-announces-first-quarter-2018-financial-results-300646599.html
SOURCE Marin Software