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Investor Relations

marinsoftware.com

Investor Relations

Marin Software Announces Third Quarter 2022 Financial Results

Thursday, November 03, 2022 04:20 PM

SAN FRANCISCO--(BUSINESS WIRE)-- 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, 2022.

“As marketers face rising economic uncertainty, there is a greater need to be able to measure, manage, and optimize each marketing dollar,” said Chris Lien, Marin Software’s Chairman and CEO. “MarinOne is well positioned to meet these needs, providing visibility, time savings, and financial lift across search, social, and ecommerce channels."

Third Quarter 2022 Product Highlights:

  • Launched support for managing Snapchat Ads in MarinOne, giving advertisers the ability to connect with over 300 million daily active users with immersive content that inspires action.
  • Added support for Pinterest bidding, enabling Pinterest advertisers to leverage MarinOne’s state of the art optimization.
  • Introduced one-click support for nearly 20 Insights, allowing users to implement changes with the click of a button to quickly improve the performance of their accounts, rather than having to work through bulksheets.
  • Added three new Insights, including automated alerts for RSA Coverage, First Page Minimum Bid, and KPI Performance.
  • Introduced three new ways to segment data in the Dimensions tab, giving users a deeper understanding of performance based on device, publisher, and match type.
  • Expanded Dynamic Actions to allow changes to additional objects, including Product Targets and Dynamic Targets.
  • Introduced sync support for Amazon Portfolios.
  • Introduced new ‘Jump To’ filters within Strategies for faster navigation. Users can filter for campaigns, groups, keywords, product groups, and dynamic targets.
  • Introduced Responsive Bidding, which allows MarinOne Bidding to sync with publishers more often and with more intelligence. If Responsive Bidding detects a change to rules, boosts, or Strategy assignments, bids will immediately be recalculated.
  • Expanded support for Google Smart Bidding settings, giving users more flexibility in selecting the bidding tools that best meet their needs across Google and Marin.

Third Quarter 2022 Financial Updates:

  • Net revenues totaled $5.0 million, a year-over-year decrease of 19% when compared to $6.2 million in the third quarter of 2021.
  • GAAP loss from operations was ($5.8) million, resulting in a GAAP operating margin of (117%), as compared to a GAAP loss from operations of ($3.3) million and a GAAP operating margin of (53%) for the third quarter of 2021.
  • Non-GAAP loss from operations was ($4.5) million, resulting in a non-GAAP operating margin of (91%), as compared to a non-GAAP loss from operations of ($2.9) million and a non-GAAP operating margin of (47%) for the third quarter of 2021.

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 fourth quarter of 2022 as follows:

Forward-Looking Guidance

In millions

 

 

 

 

 

 

 

 

 

 

Range of Estimate

 

 

 

 

From

 

 

To

 

 

Three Months Ending December 31, 2022

 

 

 

 

 

 

 

Revenues, net

 

$

4.6

 

 

$

5.1

 

 

Non-GAAP loss from operations

 

 

(4.9

)

 

 

(4.5

)

 

Non-GAAP loss from operations excludes the effects of stock-based compensation, amortization of internally developed software, impairment of long-lived assets, capitalization of internally developed software, non-recurring costs associated with restructurings, and certain professional fees that the Company has incurred in responding to third-party subpoenas that the Company has received related to governmental investigations of Google and Facebook.

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, 2022, and its outlook for the future. To access the call, please dial (855) 327-6837 in the United States or (631) 891-4304 internationally with reference to conference ID 10020237. A live webcast of the conference call will be accessible at https://viavid.webcasts.com/starthere.jsp?ei=1569936&tp_key=afea24f81c. Following the completion of the call through 11:59 p.m. Eastern Time on November 10, 2022, 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 10020237.

About Marin Software

Marin Software Incorporated’s (NASDAQ: MRIN) mission is to give advertisers the power to drive higher efficiency and transparency in their paid marketing programs that run on the world’s largest publishers. Marin Software provides enterprise marketing software for advertisers and agencies to integrate, align, and amplify their digital advertising spend across the web and mobile devices. Marin Software offers a unified SaaS advertising management platform for search, social, and eCommerce advertising. The Company helps digital marketers convert precise audiences, improve financial performance, and make better decisions. Headquartered in San Francisco with offices worldwide, Marin Software’s technology powers marketing campaigns around the globe. For more information about Marin Software, please visit www.marinsoftware.com.

Non-GAAP Financial Measures

Marin uses certain non-GAAP financial measures in this release. Marin uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating its ongoing operational performance. Marin believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures to investors. Non-GAAP financial measures that Marin uses may differ from measures that other companies may use.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. A reconciliation of the non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included below in this press release. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures.

Non-GAAP expenses, measures and net loss per share. Marin defines non-GAAP sales and marketing, non-GAAP research and development, non-GAAP general and administrative, non-GAAP gross profit, non-GAAP operating loss and non-GAAP net loss as the respective GAAP balances, adjusted for stock-based compensation, amortization of internally developed software and intangible assets, impairment of goodwill and long-lived assets, non-cash expenses related to debt agreements, capitalization of internally developed software, CARES Act employee retention credit, non-recurring costs associated with restructurings, and certain professional fees that the Company has incurred in responding to third-party subpoenas that the Company has received related to governmental investigations of Google and Facebook. Non-GAAP net loss per share is calculated as non-GAAP net loss divided by the weighted average shares outstanding.

Adjusted EBITDA. Marin defines Adjusted EBITDA as net loss, adjusted for stock-based compensation expense, depreciation, amortization of internally developed software and intangible assets, capitalization of internally developed software, impairment of goodwill and long-lived assets, benefit from or provision for income taxes, CARES Act employee retention credit, other income, net, non-recurring costs associated with restructurings, and certain professional fees that the Company has incurred in responding to third-party subpoenas that the Company has received related to governmental investigations of Google and Facebook. These amounts are often excluded by other companies to help investors understand the operational performance of their business. The Company uses Adjusted EBITDA as a measurement of its operating performance because it assists in comparing the operating performance on a consistent basis by removing the impact of certain non-cash and non-operating items. Adjusted EBITDA reflects an additional way of viewing aspects of the operations that Marin believes, when viewed with the GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting its business.

Forward-Looking Statements

This press release contains forward-looking statements including, among other things, statements regarding Marin’s business, impact of investments in product and technology on future operating results, progress on product development efforts, product capabilities, advertiser and customer behavior, effects of the COVID-19 pandemic, and future financial results, including its outlook for the fourth quarter of 2022. These forward-looking statements are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risk factors, including but not limited to any lingering effects of the global outbreak of COVID-19 on demand for our products and services; the amount of digital advertising spend managed by our customers using our products; the extent of customer acceptance and adoption of our MarinOne platform; the productivity of our personnel and other aspects of our business; our ability to maintain or grow sales to new and existing customers; any adverse changes in our relationships with and access to publishers and advertising agencies and strategic business partners, including any adverse changes in our revenue sharing agreement with Google; our ability to raise additional capital; our ability to manage expenses; the success of any increased investments that we may make in our engineering and sales and marketing teams; our ability to retain and attract qualified management, technical and sales and marketing personnel; any delays in the release of updates to our product platform or new features or delays in customer deployment of any such updates or features; competitive factors, including but not limited to pricing pressures, entry of new competitors and new applications; quarterly fluctuations in our operating results due to a number of factors; inability to adequately forecast our future revenues, expenses, Adjusted EBITDA, cash flows or other financial metrics; delays, reductions or slower growth in the amount spent on online and mobile advertising and the development of the market for cloud-based software; progress in our efforts to update our software platform; level of usage and advertising spend managed on our platform; our ability to maintain or expand sales of our solutions in channels other than search advertising; any slow-down in the search advertising market generally; any shift in customer digital advertising budgets from search to segments in which we are not as deeply penetrated; the development of the market for digital advertising; acceptance and continued usage of our platform and services by customers and our ability to provide high-quality technical support to our customers; material defects in our platform including those resulting from any updates we introduce to our platform, service interruptions at our single third-party data center or breaches in our security measures; our ability to develop enhancements to our platform; our ability to protect our intellectual property; our ability to manage risks associated with international operations; the impact of fluctuations in currency exchange rates, particularly an increase in the value of the dollar; near term changes in sales of our software services or spend under management may not be immediately reflected in our results due to our subscription business model; and adverse changes in general economic or market conditions. These forward-looking statements are based on current expectations and are subject to uncertainties and changes in condition, significance, value and effect as well as other risks detailed in documents filed with the Securities and Exchange Commission, including our most recent report on Form 10-K, recent reports on Form 10-Q and current reports on Form 8-K, which we may file from time to time, and all of which are available free of charge at the SEC’s website at www.sec.gov. Any of these risks could cause actual results to differ materially from expectations set forth in the forward-looking statements. All forward-looking statements in this press release reflect Marin’s expectations as of November 3, 2022. 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)

 

2022

 

 

2021

 

Assets:

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

31,476

 

 

$

46,842

 

Restricted cash

 

 

215

 

 

 

215

 

Accounts receivable, net

 

 

4,241

 

 

 

4,633

 

Prepaid expenses and other current assets

 

 

2,052

 

 

 

2,324

 

Total current assets

 

 

37,984

 

 

 

54,014

 

Property and equipment, net

 

 

3,205

 

 

 

3,622

 

Right-of-use assets, operating leases

 

 

4,240

 

 

 

1,660

 

Other non-current assets

 

 

583

 

 

 

535

 

Total assets

 

$

46,012

 

 

$

59,831

 

Liabilities and Stockholders' Equity:

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

710

 

 

$

975

 

Accrued expenses and other current liabilities

 

 

4,574

 

 

 

6,176

 

Note payable, current

 

 

 

 

 

2,226

 

Operating lease liabilities

 

 

1,620

 

 

 

2,006

 

Total current liabilities

 

 

6,904

 

 

 

11,383

 

Note payable, net of current

 

 

 

 

 

1,094

 

Operating lease liabilities, non-current

 

 

2,620

 

 

 

 

Other long-term liabilities

 

 

947

 

 

 

1,096

 

Total liabilities

 

 

10,471

 

 

 

13,573

 

Stockholders’ equity:

 

 

 

 

 

 

Common stock, $0.001 par value

 

 

16

 

 

 

15

 

Additional paid-in capital

 

 

353,702

 

 

 

351,394

 

Accumulated deficit

 

 

(317,216

)

 

 

(304,107

)

Accumulated other comprehensive loss

 

 

(961

)

 

 

(1,044

)

Total stockholders’ equity

 

 

35,541

 

 

 

46,258

 

Total liabilities and stockholders’ equity

 

$

46,012

 

 

$

59,831

 

 

 

 

 

 

 

 

 

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)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Revenues, net

 

$

4,977

 

 

$

6,155

 

 

$

14,858

 

 

$

18,557

 

Cost of revenues

 

 

3,181

 

 

 

3,175

 

 

 

9,712

 

 

 

9,591

 

Gross profit

 

 

1,796

 

 

 

2,980

 

 

 

5,146

 

 

 

8,966

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

1,660

 

 

 

1,266

 

 

 

5,035

 

 

 

3,780

 

Research and development

 

 

3,034

 

 

 

2,677

 

 

 

8,931

 

 

 

7,743

 

General and administrative

 

 

2,923

 

 

 

2,312

 

 

 

7,937

 

 

 

6,176

 

Total operating expenses

 

 

7,617

 

 

 

6,255

 

 

 

21,903

 

 

 

17,699

 

Loss from operations

 

 

(5,821

)

 

 

(3,275

)

 

 

(16,757

)

 

 

(8,733

)

Other income, net

 

 

190

 

 

 

298

 

 

 

3,889

 

 

 

846

 

Loss before income taxes

 

 

(5,631

)

 

 

(2,977

)

 

 

(12,868

)

 

 

(7,887

)

Income tax provision (benefit)

 

 

105

 

 

 

153

 

 

 

241

 

 

 

(44

)

Net loss

 

$

(5,736

)

 

$

(3,130

)

 

$

(13,109

)

 

$

(7,843

)

Net loss per common share, basic and diluted

 

$

(0.36

)

 

$

(0.22

)

 

$

(0.83

)

 

$

(0.66

)

Weighted-average shares outstanding, basic and diluted

 

 

16,030

 

 

 

14,500

 

 

 

15,741

 

 

 

11,956

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marin Software Incorporated

 

 

 

 

 

 

Condensed Consolidated Statements of Cash Flows

 

 

 

 

 

 

(On a GAAP basis)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30,

 

(Unaudited; in thousands)

 

2022

 

 

2021

 

Operating activities:

 

 

 

 

 

 

Net loss

 

$

(13,109

)

 

$

(7,843

)

Adjustments to reconcile net loss to net cash used in operating activities

 

 

 

 

 

 

Depreciation

 

 

435

 

 

 

670

 

Amortization of internally developed software

 

 

1,392

 

 

 

1,806

 

Amortization of deferred costs to obtain and fulfill contracts

 

 

260

 

 

 

364

 

Forgiveness of Paycheck Protection Program loan

 

 

(3,117

)

 

 

 

Interest expense

 

 

 

 

 

6

 

Loss on disposals of property and equipment and right-of-use assets

 

 

29

 

 

 

30

 

Unrealized foreign currency losses

 

 

111

 

 

 

43

 

Stock-based compensation related to equity awards

 

 

2,612

 

 

 

1,273

 

Provision for bad debts

 

 

(50

)

 

 

(102

)

Net change in operating leases

 

 

(346

)

 

 

(396

)

Deferred income tax benefits

 

 

(72

)

 

 

 

Changes in operating assets and liabilities

 

 

 

 

 

 

Accounts receivable

 

 

486

 

 

 

551

 

Prepaid expenses and other assets

 

 

55

 

 

 

(173

)

Accounts payable

 

 

(257

)

 

 

(137

)

Accrued expenses and other liabilities

 

 

(1,717

)

 

 

(1,351

)

Net cash used in operating activities

 

 

(13,288

)

 

 

(5,259

)

Investing activities:

 

 

 

 

 

 

Purchases of property and equipment

 

 

(17

)

 

 

(6

)

Capitalization of internally developed software

 

 

(1,343

)

 

 

(971

)

Net cash used in investing activities

 

 

(1,360

)

 

 

(977

)

Financing activities:

 

 

 

 

 

 

Proceeds from issuance of common shares through at-the-market offering, net of offering costs

 

 

 

 

 

41,888

 

Payment of principal on finance lease liabilities

 

 

 

 

 

(15

)

Repayment of Paycheck Protection Program loan

 

 

(203

)

 

 

 

Employee taxes paid for withheld shares upon equity award settlement

 

 

(394

)

 

 

(280

)

Proceeds from employee stock purchase plan, net

 

 

37

 

 

 

29

 

Net cash (used in) provided by financing activities

 

 

(560

)

 

 

41,622

 

Effect of foreign exchange rate changes on cash and cash equivalents and restricted cash

 

 

(158

)

 

 

(48

)

Net (decrease) increase in cash and cash equivalents and restricted cash

 

 

(15,366

)

 

 

35,338

 

Cash and cash equivalents and restricted cash:

 

 

 

 

 

 

Beginning of period

 

 

47,057

 

 

 

14,820

 

End of the period

 

$

31,691

 

 

$

50,158

 

 

 

 

 

 

 

 

 

Marin Software Incorporated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of GAAP to Non-GAAP Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

Year Ended

 

 

 

Three Months Ended

 

 

 

 

Mar 31,

 

 

Jun 30,

 

 

Sep 30,

 

 

Dec 31,

 

 

 

Dec 31,

 

 

 

Mar 31,

 

 

Jun 30,

 

 

Sep 30,

 

 

(Unaudited; in thousands)

 

2021

 

 

2021

 

 

2021

 

 

2021

 

 

 

2021

 

 

 

2022

 

 

2022

 

 

2022

 

 

Sales and Marketing (GAAP)

 

$

1,246

 

 

$

1,268

 

 

$

1,266

 

 

$

1,702

 

 

 

$

5,482

 

 

 

$

1,787

 

 

$

1,588

 

 

$

1,660

 

 

Less Stock-based compensation

 

 

(66

)

 

 

(70

)

 

 

(122

)

 

 

(150

)

 

 

 

(408

)

 

 

 

(175

)

 

 

(157

)

 

 

(99

)

 

Less Restructuring related expenses

 

 

2

 

 

 

 

 

 

 

 

 

(136

)

 

 

 

(134

)

 

 

 

 

 

 

 

 

 

 

 

Plus CARES Act employee retention credit

 

 

42

 

 

 

42

 

 

 

60

 

 

 

 

 

 

 

144

 

 

 

 

 

 

 

 

 

 

 

 

Sales and Marketing (Non-GAAP)

 

$

1,224

 

 

$

1,240

 

 

$

1,204

 

 

$

1,416

 

 

 

$

5,084

 

 

 

$

1,612

 

 

$

1,431

 

 

$

1,561

 

 

Research and Development (GAAP)

 

$

2,399

 

 

$

2,667

 

 

$

2,677

 

 

$

3,045

 

 

 

$

10,788

 

 

 

$

2,917

 

 

$

2,980

 

 

$

3,034

 

 

Less Stock-based compensation

 

 

(98

)

 

 

(133

)

 

 

(159

)

 

 

(204

)

 

 

 

(594

)

 

 

 

(224

)

 

 

(213

)

 

 

(303

)

 

Less Restructuring related expenses

 

 

(2

)

 

 

 

 

 

 

 

 

 

 

 

 

(2

)

 

 

 

(36

)

 

 

(59

)

 

 

(76

)

 

Plus CARES Act employee retention credit

 

 

252

 

 

 

238

 

 

 

245

 

 

 

 

 

 

 

735

 

 

 

 

 

 

 

 

 

 

 

 

Plus Capitalization of internally developed software

 

 

434

 

 

 

238

 

 

 

362

 

 

 

343

 

 

 

 

1,377

 

 

 

 

512

 

 

 

408

 

 

 

449

 

 

Research and Development (Non-GAAP)

 

$

2,985

 

 

$

3,010

 

 

$

3,125

 

 

$

3,184

 

 

 

$

12,304

 

 

 

$

3,169

 

 

$

3,116

 

 

$

3,104

 

 

General and Administrative (GAAP)

 

$

1,869

 

 

$

1,995

 

 

$

2,312

 

 

$

3,151

 

 

 

$

9,327

 

 

 

$

2,469

 

 

$

2,545

 

 

$

2,923

 

 

Less Stock-based compensation

 

 

(63

)

 

 

(130

)

 

 

(248

)

 

 

(287

)

 

 

 

(728

)

 

 

 

(334

)

 

 

(340

)

 

 

(405

)

 

Less Restructuring related expenses

 

 

(2

)

 

 

 

 

 

 

 

 

 

 

 

 

(2

)

 

 

 

 

 

 

 

 

 

(78

)

 

Plus CARES Act employee retention credit

 

 

70

 

 

 

66

 

 

 

67

 

 

 

 

 

 

 

203

 

 

 

 

 

 

 

 

 

 

 

 

Less Third-party subpoena-related expenses

 

 

 

 

 

 

 

 

(87

)

 

 

(405

)

 

 

 

(492

)

 

 

 

(72

)

 

 

(99

)

 

 

(198

)

 

General and Administrative (Non-GAAP)

 

$

1,874

 

 

$

1,931

 

 

$

2,044

 

 

$

2,459

 

 

 

$

8,308

 

 

 

$

2,063

 

 

$

2,106

 

 

$

2,242

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marin Software Incorporated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of GAAP to Non-GAAP Measures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

Year Ended

 

 

 

Three Months Ended

 

 

 

Mar 31,

 

 

Jun 30,

 

 

Sep 30,

 

 

Dec 31,

 

 

 

Dec 31,

 

 

 

Mar 31,

 

 

Jun 30,

 

 

Sep 30,

 

(Unaudited; in thousands)

 

2021

 

 

2021

 

 

2021

 

 

2021

 

 

 

2021

 

 

 

2022

 

 

2022

 

 

2022

 

Gross Profit (GAAP)

 

$

3,067

 

 

$

2,919

 

 

$

2,980

 

 

$

2,569

 

 

 

$

11,535

 

 

 

$

1,833

 

 

$

1,517

 

 

$

1,796

 

Plus Stock-based compensation

 

 

35

 

 

 

46

 

 

 

103

 

 

 

107

 

 

 

 

291

 

 

 

 

124

 

 

 

90

 

 

 

148

 

Plus Amortization of internally developed software

 

 

624

 

 

 

596

 

 

 

586

 

 

 

550

 

 

 

 

2,356

 

 

 

 

542

 

 

 

431

 

 

 

419

 

Plus Restructuring related expenses

 

 

1

 

 

 

 

 

 

 

 

 

42

 

 

 

 

43

 

 

 

 

17

 

 

 

 

 

 

 

Less CARES Act employee retention credit

 

 

(175

)

 

 

(179

)

 

 

(174

)

 

 

 

 

 

 

(528

)

 

 

 

 

 

 

 

 

 

 

Gross Profit (Non-GAAP)

 

$

3,552

 

 

$

3,382

 

 

$

3,495

 

 

$

3,268

 

 

 

$

13,697

 

 

 

$

2,516

 

 

$

2,038

 

 

$

2,363

 

Operating Loss (GAAP)

 

$

(2,447

)

 

$

(3,011

)

 

$

(3,275

)

 

$

(5,329

)

 

 

$

(14,062

)

 

 

$

(5,340

)

 

$

(5,596

)

 

$

(5,821

)

Plus Stock-based compensation

 

 

262

 

 

 

379

 

 

 

632

 

 

 

748

 

 

 

 

2,021

 

 

 

 

857

 

 

 

800

 

 

 

955

 

Plus Amortization of internally developed software

 

 

624

 

 

 

596

 

 

 

586

 

 

 

550

 

 

 

 

2,356

 

 

 

 

542

 

 

 

431

 

 

 

419

 

Plus Restructuring related expenses

 

 

3

 

 

 

 

 

 

 

 

 

178

 

 

 

 

181

 

 

 

 

53

 

 

 

59

 

 

 

154

 

Less CARES Act employee retention credit

 

 

(539

)

 

 

(525

)

 

 

(546

)

 

 

 

 

 

 

(1,610

)

 

 

 

 

 

 

 

 

 

 

Less Capitalization of internally developed software

 

 

(434

)

 

 

(238

)

 

 

(362

)

 

 

(343

)

 

 

 

(1,377

)

 

 

 

(512

)

 

 

(408

)

 

 

(449

)

Plus Third-party subpoena-related expenses

 

 

 

 

 

 

 

 

87

 

 

 

405

 

 

 

 

492

 

 

 

 

72

 

 

 

99

 

 

 

198

 

Operating Loss (Non-GAAP)

 

$

(2,531

)

 

$

(2,799

)

 

$

(2,878

)

 

$

(3,791

)

 

 

$

(11,999

)

 

 

$

(4,328

)

 

$

(4,615

)

 

$

(4,544

)

Net Loss (GAAP)

 

$

(2,212

)

 

$

(2,501

)

 

$

(3,130

)

 

$

(5,101

)

 

 

$

(12,944

)

 

 

$

(1,999

)

 

$

(5,374

)

 

$

(5,736

)

Plus Stock-based compensation

 

 

262

 

 

 

379

 

 

 

632

 

 

 

748

 

 

 

 

2,021

 

 

 

 

857

 

 

 

800

 

 

 

955

 

Plus Amortization of internally developed software

 

 

624

 

 

 

596

 

 

 

586

 

 

 

550

 

 

 

 

2,356

 

 

 

 

542

 

 

 

431

 

 

 

419

 

Plus Restructuring related expenses

 

 

3

 

 

 

 

 

 

 

 

 

178

 

 

 

 

181

 

 

 

 

53

 

 

 

59

 

 

 

154

 

Less CARES Act employee retention credit

 

 

(539

)

 

 

(525

)

 

 

(546

)

 

 

 

 

 

 

(1,610

)

 

 

 

 

 

 

 

 

 

 

Less Capitalization of internally developed software

 

 

(434

)

 

 

(238

)

 

 

(362

)

 

 

(343

)

 

 

 

(1,377

)

 

 

 

(512

)

 

 

(408

)

 

 

(449

)

Plus Third-party subpoena-related expenses

 

 

 

 

 

 

 

 

87

 

 

 

405

 

 

 

 

492

 

 

 

 

72

 

 

 

99

 

 

 

198

 

Less Forgiveness and repayment of Paycheck Protection Program loan

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,320

)

 

 

 

 

 

 

Net Loss (Non-GAAP)

 

$

(2,296

)

 

$

(2,289

)

 

$

(2,733

)

 

$

(3,563

)

 

 

$

(10,881

)

 

 

$

(4,307

)

 

$

(4,393

)

 

$

(4,459

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marin Software Incorporated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Calculation of Non-GAAP Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

Year Ended

 

 

 

Three Months Ended

 

 

 

 

Mar 31,

 

 

Jun 30,

 

 

Sep 30,

 

 

Dec 31,

 

 

 

Dec 31,

 

 

 

Mar 31,

 

 

Jun 30,

 

 

Sep 30,

 

 

(Unaudited; in thousands, except per share data)

 

2021

 

 

2021

 

 

2021

 

 

2021

 

 

 

2021

 

 

 

2022

 

 

2022

 

 

2022

 

 

Net Loss (Non-GAAP)

 

$

(2,296

)

 

$

(2,289

)

 

$

(2,733

)

 

$

(3,563

)

 

 

$

(10,881

)

 

 

$

(4,307

)

 

$

(4,393

)

 

$

(4,459

)

 

Weighted-average shares outstanding, basic and diluted

 

 

10,300

 

 

 

11,034

 

 

 

14,500

 

 

 

15,513

 

 

 

 

12,846

 

 

 

 

15,537

 

 

 

15,651

 

 

 

16,030

 

 

Non-GAAP net loss per common share, basic and diluted

 

$

(0.22

)

 

$

(0.21

)

 

$

(0.19

)

 

$

(0.23

)

 

 

$

(0.85

)

 

 

$

(0.28

)

 

$

(0.28

)

 

$

(0.28

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marin Software Incorporated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Net Loss to Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

Year Ended

 

 

 

Three Months Ended

 

 

 

 

Mar 31,

 

 

Jun 30,

 

 

Sep 30,

 

 

Dec 31,

 

 

 

Dec 31,

 

 

 

Mar 31,

 

 

Jun 30,

 

 

Sep 30,

 

 

(Unaudited; in thousands)

 

2021

 

 

2021

 

 

2021

 

 

2021

 

 

 

2021

 

 

 

2022

 

 

2022

 

 

2022

 

 

Net Loss

 

$

(2,212

)

 

$

(2,501

)

 

$

(3,130

)

 

$

(5,101

)

 

 

$

(12,944

)

 

 

$

(1,999

)

 

$

(5,374

)

 

$

(5,736

)

 

Depreciation

 

 

240

 

 

 

223

 

 

 

207

 

 

 

181

 

 

 

 

851

 

 

 

 

179

 

 

 

199

 

 

 

57

 

 

Amortization of internally developed software

 

 

624

 

 

 

596

 

 

 

586

 

 

 

550

 

 

 

 

2,356

 

 

 

 

542

 

 

 

431

 

 

 

419

 

 

Provision for (benefit from) income taxes

 

 

92

 

 

 

(289

)

 

 

153

 

 

 

(90

)

 

 

 

(134

)

 

 

 

61

 

 

 

75

 

 

 

105

 

 

Stock-based compensation

 

 

262

 

 

 

379

 

 

 

632

 

 

 

748

 

 

 

 

2,021

 

 

 

 

857

 

 

 

800

 

 

 

955

 

 

CARES Act employee retention credit

 

 

(539

)

 

 

(525

)

 

 

(546

)

 

 

 

 

 

 

(1,610

)

 

 

 

 

 

 

 

 

 

 

 

Capitalization of internally developed software

 

 

(434

)

 

 

(238

)

 

 

(362

)

 

 

(343

)

 

 

 

(1,377

)

 

 

 

(512

)

 

 

(408

)

 

 

(449

)

 

Restructuring related expenses

 

 

3

 

 

 

 

 

 

 

 

 

178

 

 

 

 

181

 

 

 

 

53

 

 

 

59

 

 

 

154

 

 

Other income, net

 

 

(327

)

 

 

(221

)

 

 

(298

)

 

 

(138

)

 

 

 

(984

)

 

 

 

(3,402

)

 

 

(297

)

 

 

(190

)

 

Third-party subpoena-related expenses

 

 

 

 

 

 

 

 

87

 

 

 

405

 

 

 

 

492

 

 

 

 

72

 

 

 

99

 

 

 

198

 

 

Adjusted EBITDA

 

$

(2,291

)

 

$

(2,576

)

 

$

(2,671

)

 

$

(3,610

)

 

 

$

(11,148

)

 

 

$

(4,149

)

 

$

(4,416

)

 

$

(4,487

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investor Relations, Marin Software
ir@marinsoftware.com

Media Contact
Wesley MacLaggan
Marketing, Marin Software
(415) 399-2580
press@marinsoftware.com

Source: Marin Software Incorporated