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, 2021.
“With the holiday season fast approaching, the improvements we’ve made this quarter to the MarinOne ecommerce module will help ensure our advertisers get the most from their marketing investments across retail media, search and social,” said Chris Lien, CEO of Marin Software.
Third Quarter 2021 Product Highlights:
- Added new Insights, including Amazon Keyword Expansion, Amazon Negative Keyword Expansion, Top Performing Amazon Ads, Amazon Keyword Match Type Expansion, Low Volume Bid Strategies, and Bid Changes Preview.
- Integrated SEO data from Google Search Console to improve revenue and ROAS by focusing investment on those targets that can benefit the most.
- Expanded the eCommerce module to include Instacart, Google Shopping, Microsoft Shopping, and Criteo Retail, enabling a comprehensive view across publishers including Amazon.
- Added reporting support for Amazon Sponsored Display Audience targets.
- Introduced support for keyword recommendations on new Amazon groups, allowing advertisers with no existing keywords to get started quickly.
- Introduced ad extension reporting across Google Sitelinks, Call Extensions, Callout Extensions, and Mobile App Extensions. An “All Extensions toggle” allows users to switch conveniently between just those extensions with traffic, or the complete list.
- Introduced client-level forecasting charts into the Dashboard to streamline decisions.
- Added optimization support for Google Dynamic Search Ads, to increase revenue and/or ROAS.
- Introduced the ability to apply Bid Overrides via the multi-edit workflow.
- Added the ability to roll up data by publishers and campaigns, allowing users to compare performance across publishers (i.e. Google vs. Microsoft vs. Facebook).
- Introduced Client Tags in MarinOne, which allows users who run multi-client reports with Client Tags to do their reporting in MarinOne.
- Added additional options to the ‘More’ menu in MarinOne Engine, including History, Settings history, and Settings link.
- Introduced an Activity Log for MarinOne Social for users to see the status of their work more easily.
- Added the Sync button to MarinOne Social, allowing users to bring down changes from Facebook more easily.
- Enhanced the Help experience, serving guided tours, support center results, certification, What’s New content, and access to the support team from a comprehensive, in-app menu.
Third Quarter 2021 Financial Updates:
- Net revenues totaled $6.2 million, a year-over-year decrease of 9% when compared to $6.8 million in the third quarter of 2020.
- GAAP loss from operations was ($3.3) million, resulting in a GAAP operating margin of (53%), as compared to a GAAP loss from operations of ($4.3) million and a GAAP operating margin of (63%) for the third quarter of 2020.
- Non-GAAP loss from operations was ($3.0) million, resulting in a non-GAAP operating margin of (48%), as compared to a non-GAAP loss from operations of ($2.8) million and a non-GAAP operating margin of (42%) for the third quarter of 2020.
- 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.”
- Cash, cash equivalents and restricted cash were $50.2 million in the aggregate at September 30, 2021.
- Raised net proceeds of $38.8 million from issuances and sales of common stock under the Company’s “at-the-market” securities offering facility, at a weighted average sales price of $9.27 per share.
- Filed a new $100.0 million shelf registration statement with the SEC, which includes a $50.0 million “at-the-market” securities offering facility, pursuant to which we may be able to issue and sell additional shares of our common stock.
- Entered into a new three-year revenue share agreement with Google.
Financial Outlook:
Marin is providing guidance for its fourth quarter of 2021 as follows:
| Forward-Looking Guidance | |||||||||
| In millions | |||||||||
| Range of Estimate | |||||||||
| From | To | ||||||||
| Three Months Ending December 31, 2021 | |||||||||
| Revenues, net | $ | 5.6 | $ | 6.1 | |||||
| Non-GAAP loss from operations | (4.5) | (4.0) |
The Q4 revenue guidance includes estimated Q4 revenues under the new Google revenue share agreement, under which the Company expects to earn quarterly revenue commencing October 1, 2021 that will be approximately $0.5 million less than the average quarterly revenue recognized under the expiring agreement with Google during the first three quarters of 2021. Non-GAAP loss from operations includes the impact of a non-recurring charge of approximately $0.7 million related to incentive-based compensation for achievements expected to occur in the fourth quarter and 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, CARES Act employee retention credits 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, 2021, 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 conference ID 13723659. A live webcast of the conference call will be accessible at http://public.viavid.com/index.php?id=146754 . Following the completion of the call through 11:59 p.m. Eastern Time on November 11, 2021, 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 13723659.
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