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8-K - 8-K FOR THE QUARTERLY REPORTING PERIOD ENDING MARCH 31, 2018 - MARIN SOFTWARE INCmrin-8k_20180510.htm

Exhibit 99.1

Marin Software Announces First Quarter 2018 Financial Results

San Francisco, CA (May 10, 2018) – 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 p.m. 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.

Investor Relations Contact:

Investor Relations, Marin Software

ir@marinsoftware.com

Media Contact:

Wesley MacLaggan

Marketing, Marin Software

(415) 399-2586

press@marinsoftware.com


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 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

)