Marin Software Incorporated (NASDAQ: MRIN), a leading provider of digital marketing software for performance-driven advertisers and agencies, today announced financial results for the second quarter ended June 30, 2022.
“Having the right automation and optimization tools is increasingly important for advertisers to outperform the competition,” said Chris Lien, Marin Software’s Chairman and CEO. “This quarter, we expanding our industry-leading automation tools with improvements to our Rules Engine and Dynamic Actions.”
Second Quarter 2022 Product Highlights:
- Recognized as a Strong Performer in The Forrester Wave™: B2B Advertising Solutions, Q3 2022 , and cited as “best in class” for B2B search and social advertising.
- Achieved verified partner status from Amazon Ads with our team of specialists that are certified in Amazon Ads topics. Being part of the Partner Network enables Marin to further develop our Amazon Ads capabilities and engage more deeply with Amazon Advertising with access to select beta programs and tailored training on campaign strategies and new product releases.
- Upgraded our support for Google’s newest campaign formats, including Performance Max, Universal App, Discovery, and Video (YouTube) Campaigns. We also launched support for Yahoo! Japan Responsive Ads for Search (RAS).
- Completed the rollout of MarinOne Bidding, unlocking better performance and improved accuracy with dynamic clustering and improved intraday optimizations for all customers.
- Introduced MarinOne support for ad scheduling (dayparting) via multi-edit, allowing advertisers to improve the performance of their ads by adjusting when they are (and are not) shown.
- Significantly improved our Dimensions aggregation tools by introducing campaign-level rollup views, view Dimension over time, and the ability to segment Dimension data by device, match type, and publisher. These changes further reduce the need for offline data analysis.
- Introduced two new Insights, including RSA Coverage, which identifies groups without any Responsive Search Ads, and First Page Minimum Bid, which identifies objects performing below the Bid Strategy efficiency goal and whose bids are artificially raised to publisher first-page minimum bids.
- Made it easier to amplify organic posts by adding the ability to duplicate Message Booster rules.
- Launched the Social Rules Engine to help automate key workflows. With the Rules Engines, users can set triggers based on any aspect of campaign performance that will adjust bid, status, messaging, and more.
- Enhanced our Dynamic Actions automation features to allow changes to additional objects, including Project Targets and Dynamic Targets based on internal or external data signals.
- Streamlined the onboarding of new users, allowing advertisers to get new hires up and running on MarinOne more quickly and efficiently.
- Introduced chat functionality directly in MarinOne, so it is possible for customers to reach our customer support team and ask for help without ever having to navigate away from their own account.
Second Quarter 2022 Financial Updates:
- Net revenues totaled $4.7 million, a year-over-year decrease of 23% when compared to $6.1 million in the second quarter of 2021.
- GAAP loss from operations was ($5.6) million, resulting in a GAAP operating margin of (119%), as compared to a GAAP loss from operations of ($3.0) million and a GAAP operating margin of (49%) for the second quarter of 2021.
- Non-GAAP loss from operations was ($4.6) million, resulting in a non-GAAP operating margin of (98%), as compared to a non-GAAP loss from operations of ($2.8) million and a non-GAAP operating margin of (46%) for the second 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 third quarter of 2022 as follows:
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 June 30, 2022, and its outlook for the future. To access the call, please dial (877) 256-3669 in the United States or (201) 231-2913 internationally with reference to conference ID 22019624. A live webcast of the conference call will be accessible at https://viavid.webcasts.com/starthere.jsp?ei=1559041&tp_key=3bf131ecde. Following the completion of the call through 11:59 p.m. Eastern Time on August 11, 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 22019624.
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