Marin Software Incorporated (NASDAQ: MRIN) (“Marin”, “Marin Software” or the “Company”), a leading provider of digital marketing software for performance-driven advertisers and agencies, today announced financial results for the third quarter ended September 30, 2023.
“We’re excited to continue our innovations to address the most pressing issues marketers face today – complete and timely insights and the ability to make the smartest decisions and to act on them quickly,” said Chris Lien, Marin Software’s Chairman and CEO. “Our new offerings, Connect and Ascend, are built to provide marketers with a robust platform to unite data from the entire customer journey with an AI-powered optimization engine to maximize performance across media channels.”
Third Quarter 2023 Product Highlights:
- Launched two new editions of Marin to address the needs of different segments of the market:
- Connect: Helps marketers to collect, aggregate, and share campaign, conversion, and first-party data. Connect can push data to data warehouses, Excel/Google Sheets, and BI Tools. In addition to streamlining and automating the “marketing data pipeline,” Connect provides tools to analyze campaign performance.
- Ascend: Building on the data foundation provided by Connect, Ascend leverages the power of predictive AI to improve the performance of your marketing investment. Ascend determines where the next marginal dollar will have the most impact and continually adjusts budget allocation and targets to maximize performance.
- MarinOne: Our flagship product includes everything in Ascend, plus a robust set of automation tools and world-class strategic support from digital marketing experts.
- Deepened our CRM integrations by adding HubSpot, enabling our customers to optimize against the entire customer journey, including downstream and offline conversions.
- Introduced the Automation Summary Dashboard, which enables Marin users to see the impact of automations taken on their behalf in MarinOne. It allows marketers to clearly quantify the ROI on the Marin platform by presenting a historical record of system recommendations for bids and budgets.
- Enhanced support for LinkedIn, TikTok, Apple Search Ads, and Taboola to include Marin’s proprietary forecasts in budget models and simulations.
- Improved Search Ad Preview to provide MarinOne and external users with transparent visual previews, including ad copy, logos, and extensions.
- Strengthened Google Performance Max support by adding asset group reporting and automated status changes based on pre-set criteria. Marketers can better manage volume across a portfolio of Google accounts and other publishers with consolidated automation in MarinOne.
- Enabled import of Google Labels into Marin to allow new customers to quickly adopt Marin Dimensions, adding a hierarchy to Google Labels.
- Upgraded Client Tags so users can report on aggregate performance data across Marin accounts. Customers use this ‘roll up’ functionality to group Marin client accounts by categories like region, brand, or industry and can view near real-time performance data.
- We now offer Automatic Preview for all campaigns linked to MarinOne and offer marketers the ability to derive more granular recommendations and forecasts by mapping campaigns to a dedicated strategy.
Third Quarter 2023 Financial Updates:
- Net revenues totaled $4.4 million, a year-over-year decrease of 11% when compared to $5.0 million for the third quarter of 2022.
- GAAP loss from operations was ($5.1) million, resulting in a GAAP operating margin of (115%), as compared to a GAAP loss from operations of ($5.8) million and a GAAP operating margin of (117%) for the third quarter of 2022.
- Non-GAAP loss from operations was ($2.9) million, resulting in a non-GAAP operating margin of (65%), as compared to a non-GAAP loss from operations of ($4.5) million and a non-GAAP operating margin of (91%) for the third quarter of 2022.
- Cash and cash equivalents were $13.6 million as of September 30, 2023.
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 2023 as follows:
|
Forward-Looking Guidance |
|||||||||
|
(In millions) |
|||||||||
|
|
|
Range of Estimate |
|
|
|||||
|
|
|
From |
|
|
To |
|
|
||
|
Three Months Ending December 31, 2023 |
|
|
|
|
|
|
|
||
|
Revenues, net |
|
$ |
4.1 |
|
|
$ |
4.4 |
|
|
|
Non-GAAP loss from operations |
|
|
(2.3 |
) |
|
|
(2.0 |
) |
|
Non-GAAP loss from operations excludes the effects of stock-based compensation expense, 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, 2023, and its outlook for the future. To access the call, please dial (800) 954-0684 in the United States or (212) 231-2929 internationally with reference to conference ID 13742110. A live webcast of the conference call will be accessible at https://viavid.webcasts.com/starthere.jsp?ei=1622870&tp_key=b8014ed5de. Following the completion of the call through 11:59 p.m. Eastern Time on November 9, 2023, 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 13742110.
For more such updates, follow us on Google News Martech News