Marin Software Announces Second Quarter 2015 Financial Results
SAN FRANCISCO, CA -- (Marketwired) -- 08/05/15 -- Marin Software Incorporated (NYSE: MRIN)
- Second quarter net revenues of $26.8 million, up 12% year-over-year and 18% on a constant currency basis
- Second quarter active advertiser count of 853, up from 820 in the first quarter of 2015
Marin Software Incorporated (NYSE: MRIN), provider of a leading cross-channel performance advertising cloud for advertisers and agencies, today announced financial results for the second quarter ended June 30, 2015.
"Marin Software delivered another solid quarter with 18% revenue growth in constant currency, and we are encouraged by the growing interest in our multi-channel advertising cloud across social, search and display," said David A. Yovanno, Chief Executive Officer of Marin. "Importantly, we are taking a renewed and disciplined approach to efficiency in the business and remain on track to achieving Adjusted EBITDA breakeven in the fourth quarter of 2015.
"I am also pleased with the addition of two new leaders in our finance group. As recently announced, Catriona Fallon has joined us as Chief Financial Officer, and brings to Marin proven financial leadership, strategic planning skills and execution capabilities. In addition, we recently brought on a seasoned professional, Jason Starr, to lead our investor relations efforts. I am confident that we now have the skill set and expertise needed to drive Marin's strategic initiatives and to improve and articulate our value to shareholders."
Second Quarter 2015 Financial Highlights:
- Net Revenues: Net revenues totaled $26.8 million, a year-over-year increase of 12% when compared to $23.9 million in the second quarter of 2014. On a non-GAAP constant currency basis, revenues increased year-over-year by 18% when compared to the second quarter of 2014.
- Gross profit: GAAP gross profit was $16.2 million, resulting in a gross margin of 60%, compared to the GAAP gross margin of 63% during the second quarter of 2014. Non-GAAP gross profit was $17.4 million, resulting in a non-GAAP gross margin of 65%, compared to non-GAAP gross margin of 66% during the second quarter of 2014.
- Loss from operations: GAAP loss from operations was ($11.7) million, compared to ($8.9) million for the second quarter of 2014. GAAP operating margin was (44%), compared to (37%) during the second quarter of 2014. Non-GAAP loss from operations was ($6.8) million, compared to ($6.8) million for the second quarter of 2014. Non-GAAP operating margin was (25%), compared to (29%) during the second quarter of 2014.
- Net loss: Net loss was ($12.0) million or ($0.33) per share based on 36.4 million weighted average shares outstanding. This compares to a net loss of ($6.8) million or ($0.20) per share based upon 33.8 million weighted average shares outstanding for the second quarter of 2014.
- Non-GAAP net loss: Non-GAAP net loss was ($7.1) million or ($0.20) per share based upon 36.4 million weighted average shares outstanding. This compares to ($7.3) million or ($0.22) per share based on 33.8 million weighted average shares outstanding during the second quarter of 2014.
- Adjusted EBITDA: Adjusted EBITDA was a loss of ($5.1) million, as compared to a loss of ($5.5) million for the second quarter of 2014.
- Balance Sheet: As of June 30, 2015, cash and cash equivalents totaled $41.5 million, compared to $68.3 million as of December 31, 2014.
A reconciliation of GAAP to non-GAAP financial measures has 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."
Second Quarter 2015 Business Highlights
- Completed the first phase of data integration between the Marin and SocialMoov platforms, allowing multi-channel advertisers to gain cross-channel reporting insights and take advantage of Marin's open platform and extensive list of certified revenue integrations.
- Launched support for Facebook's Dynamic Product Ads to allow advertisers to re-engage website visitors with strong purchase intent and scale their advertising programs.
- Released support for Facebook Engagement Targeting for video ad formats, which allows advertisers to re-engage users with strong brand affinity and scale their video advertising spend.
- Introduced Smart Sync, which provides search advertisers the ability to extend advertising across various publishers without having to create and manage campaigns separately.
- Launched Budget Optimizer, a tool designed to help marketers accurately predict daily and monthly search spend levels, forecast their business revenue at various levels of investment, and optimize budgets across their paid search portfolios.
- Launched the Google Upgraded URLs customer migration portal to assist Marin clients to efficiently upgrade to Google's new required URL format.
- Released major enhancements to Marin's URL Builder product, designed to allow advertisers to set-up, troubleshoot, and manage their Yahoo! Gemini and Google Upgraded URLs together in the same interface and launch new campaigns faster.
- Announced a new product integration that allows users of HubSpot's platform to align their inbound marketing activities and paid online display advertising by syncing HubSpot landing pages and contact lists with Marin's Perfect Audience display solution.
- Increased the number of active advertisers leveraging the Marin platform. During the second quarter, 853 active advertisers utilized the Marin platform, representing an increase of 33 active advertisers quarter-over-quarter. Marin defines active advertisers as an advertiser from whom Marin recognized revenues in excess of $2,000 in at least one month during the quarter.
Financial Outlook:
As of August 5, 2015, Marin is initiating guidance for its third quarter and updating guidance for the full year 2015:
Forward-Looking Guidance
In millions, except per share data
Range of Estimate
From To
--------- ---------
Three Months Ending September 30, 2015
Revenues, net $ 25.5 $ 26.0
Non-GAAP loss from operations $ (6.4) $ (5.9)
Non-GAAP net loss per share $ (0.18) $ (0.16)
Weighted-average shares outstanding 37.0
Year Ending December 31, 2015
Revenues, net $ 105.0 $ 106.5
Non-GAAP loss from operations $ (21.0) $ (20.0)
Non-GAAP net loss per share $ (0.60) $ (0.57)
Weighted-average shares outstanding 36.6
Non-GAAP loss from operations and non-GAAP net loss per share excludes the effects of stock-based compensation, amortization of internally developed software, amortization of intangible assets, noncash expenses related to warrants, non-recurring costs associated with acquisitions, benefit from income taxes related to acquisitions and capitalization of internally developed software.
At current spot rates, our guidance assumes a 4% negative impact to revenue growth for both the third quarter and the full year 2015 as compared to the same periods in 2014.
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, 2015, and its outlook for the future. To access the call, please dial (877) 705-6003 in the U.S. or (201) 493-6725 internationally with reference to the company name and conference title. A live webcast of the conference call will be accessible from Marin Software's website at: http://investor.marinsoftware.com/. Following the completion of the call through 11:59 p.m. EST on August 12, 2015, a recording will be available for replay at: http://investor.marinsoftware.com/ and a telephone replay will be available by dialing (877) 870-5176 in the U.S. or (858) 384-5517 internationally with the recording access code 13613414.
About Marin Software
Marin Software Incorporated (NYSE: MRIN) provides a leading cross-channel performance advertising cloud for advertisers and agencies to measure, manage and optimize more than $7.2 billion as of December 2014 in annualized ad spend across the web and mobile devices. Offering an integrated SaaS platform for search, display and social 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 nine countries, Marin's technology powers marketing campaigns around the globe. For more information about Marin's products, please visit: http://www.marinsoftware.com/solutions/overview.
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 expense, the amortization of intangible assets, the capitalization of internally developed software, noncash expenses related to the issuance of warrants, the amortization of internally developed software, the benefit from income taxes related to acquisition and the non-recurring costs associated with acquisitions. Non-GAAP net loss per share is calculated as non-GAAP net loss divided by the weighted average shares outstanding that are adjusted to assume the conversion of outstanding preferred shares to common shares as of the beginning of the period.
Adjusted EBITDA. Marin defines Adjusted EBITDA as net loss, adjusted for stock-based compensation expense, depreciation, the amortization of internally developed software, the amortization of intangible assets, the capitalization of internally developed software, interest expense, net, the benefit from or provision for income taxes, other income or expenses, net and the non-recurring costs associated with acquisitions. 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.
Non-GAAP constant currency revenues and growth. Marin defines non-GAAP constant currency revenues as total revenues excluding the impact of foreign exchange rate movements, and uses it to determine the constant currency revenue growth on a year-over-year basis. Non-GAAP constant currency revenues are calculated by translating current quarter or year-to-date revenues using the average prior period exchange rates. Constant currency revenue growth (expressed as a percentage) is calculated by determining the increase in current quarter and year-to-date revenues over prior period revenues, where current quarter international revenues are translated using prior period exchange rates. The Company considers non-GAAP constant currency revenues and growth as useful metrics as they facilitate management's internal comparison to historical performance, because they exclude the effects of foreign currency volatility that are not indicative of the Company's operating results. Marin believes they provide useful supplemental information to investors about the financial performance of the business, enable a comparison of financial results between periods where certain items may vary independent of business performance and allow for greater transparency with respect to key metrics used by management in operating the business.
Forward-Looking Statements
This press release contains forward-looking statements including, among other things, statements regarding Marin's business, growth, position in the industry, product capabilities, market acceptance of Marin's social and display products, search industry trends and adjusted EBITDA projections and other future financial results, including its outlook for the third quarter of 2015 and fiscal year 2015. 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; 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; delays, reductions or slower growth in the amount spent on online and mobile advertising and the development of the market for cloud-based software; 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 or revenue acquisition management; 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, 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, including our acquisitions of Perfect Audience and SocialMoov. 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 August 5, 2015. 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 Inc.
Condensed Consolidated Balance Sheets
(On a GAAP basis)
June 30, December 31,
(Unaudited; in thousands, except par value) 2015 2014
------------- -------------
Assets
Current assets
Cash and cash equivalents $ 41,470 $ 68,253
Accounts receivable, net 20,345 18,726
Prepaid expenses and other current assets 6,573 4,751
------------- -------------
Total current assets 68,388 91,730
Property and equipment, net 19,686 16,274
Goodwill 19,619 11,527
Intangible assets, net 12,058 7,399
Other noncurrent assets 893 1,287
------------- -------------
Total assets $ 120,644 $ 128,217
============= =============
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable $ 2,066 $ 3,737
Accrued expenses and other current
liabilities 13,044 12,053
Deferred revenues 1,008 2,052
Current portion of long-term debt 1,877 2,587
------------- -------------
Total current liabilities 17,995 20,429
Long-term debt, less current portion 15 621
Other long-term liabilities 4,609 1,050
------------- -------------
Total liabilities 22,619 22,100
------------- -------------
Stockholders' equity
Common stock, $0.001 par value 37 35
Additional paid-in capital 267,447 253,221
Accumulated deficit (168,099) (146,392)
Accumulated other comprehensive loss (1,360) (747)
------------- -------------
Total stockholders' equity 98,025 106,117
------------- -------------
Total liabilities and stockholders' equity $ 120,644 $ 128,217
============= =============
Marin Software Inc.
Condensed Consolidated Statements of Operations
(On a GAAP basis)
Three Months Ended Six Months Ended
June 30, June 30,
-------------------- --------------------
(Unaudited; in thousands, except
per share data) 2015 2014 2015 2014
--------- --------- --------- ---------
Revenues, net $ 26,775 $ 23,853 $ 53,188 $ 46,669
Cost of revenues (1) (2) 10,599 8,763 20,308 17,146
--------- --------- --------- ---------
Gross profit 16,176 15,090 32,880 29,523
--------- --------- --------- ---------
Operating expenses (1) (2)
Sales and marketing 13,064 11,978 25,221 23,966
Research and development 9,194 6,627 17,678 12,710
General and administrative 5,655 5,368 11,375 9,786
--------- --------- --------- ---------
Total operating expenses 27,913 23,973 54,274 46,462
--------- --------- --------- ---------
Loss from operations (11,737) (8,883) (21,394) (16,939)
Interest expense, net (8) (62) (19) (128)
Other (expenses) income, net (164) (286) 80 (281)
--------- --------- --------- ---------
Loss before (provision for)
benefit from income taxes (11,909) (9,231) (21,333) (17,348)
(Provision for) benefit from
income taxes (138) 2,440 (374) 2,252
--------- --------- --------- ---------
Net loss $ (12,047) $ (6,791) $ (21,707) $ (15,096)
========= ========= ========= =========
Net loss per common share, basic
and diluted $ (0.33) $ (0.20) $ (0.60) $ (0.45)
========= ========= ========= =========
Weighted-average shares
outstanding, basic and diluted 36,389 33,771 36,028 33,563
--------- --------- --------- ---------
(1) Includes stock-based
compensation expense as
follows:
Cost of revenues $ 322 $ 192 $ 551 $ 403
Sales and marketing 954 449 1,669 852
Research and development 2,340 649 3,967 1,086
General and administrative 1,323 651 2,247 1,097
--------- --------- --------- ---------
Total $ 4,939 $ 1,941 $ 8,434 $ 3,438
========= ========= ========= =========
(2) Includes amortization of
intangible assets as follows:
Cost of revenues $ 276 $ 57 $ 491 $ 57
Sales and marketing 247 37 427 37
Research and development 276 57 492 57
General and administrative 37 11 72 11
--------- --------- --------- ---------
Total $ 836 $ 162 $ 1,482 $ 162
========= ========= ========= =========
Marin Software Inc.
Condensed Consolidated Statements of Cash Flows
(On a GAAP basis)
Six Months Ended
June 30,
--------------------
(Unaudited; in thousands) 2015 2014
--------- ---------
Operating activities
Net loss $ (21,707) $ (15,096)
Adjustments to reconcile net loss to net cash used in
operating activities
Depreciation 3,305 2,717
Amortization of internally developed software 1,167 910
Amortization of intangible assets 1,482 162
Loss on disposal of property and equipment 9 14
Unrealized foreign currency gain (229) --
Noncash interest expense related to warrants issued
in connection with debt 17 92
Stock-based compensation related to equity awards
and restricted stock 8,434 3,438
Provision for bad debt 309 287
Deferred income tax benefits (80) (2,802)
Excess tax benefits from stock-based award
activities (9) (65)
Changes in operating assets and liabilities, net of
effect of acquisition
Accounts receivable (733) (1,645)
Prepaid expenses and other current assets (1,797) (803)
Other assets 405 252
Accounts payable (1,498) 524
Deferred revenues (1,043) (1,061)
Accrued expenses and other current liabilities 2,216 (1,167)
--------- ---------
Net cash used in operating activities (9,752) (14,243)
--------- ---------
Investing activities
Purchases of property and equipment (5,459) (1,405)
Capitalization of internally developed software (2,424) (1,346)
Acquisition of businesses, net of cash acquired (7,509) (4,151)
--------- ---------
Net cash used in investing activities (15,392) (6,902)
--------- ---------
Financing activities
Repayment of notes payable (2,376) (1,657)
Repurchase of unvested shares (2) (6)
Proceeds from exercise of common stock options 1,028 1,532
Proceeds from employee stock purchase plan 185 726
Stock issuance costs (51) --
Excess tax benefits from stock-based award activities 9 65
--------- ---------
Net cash (used in) provided by financing
activities (1,207) 660
--------- ---------
Effect of foreign exchange rate changes on
cash and cash equivalents (432) --
Net decrease in cash and cash equivalents (26,783) (20,485)
Cash and cash equivalents
Beginning of period 68,253 104,407
--------- ---------
End of period $ 41,470 $ 83,922
--------- ---------
Supplemental disclosure of noncash investing and
financing activities
Purchases of property and equipment recorded in
accounts payable and accrued expenses $ 1,341 $ 110
Issuance of common stock under employee stock purchase
plan 548 715
Issuance of common stock in connection with business
combination 4,337 11,195
Shares withheld to cover payroll taxes related to the
vesting of restricted stock units 513 --
Marin Software Inc.
Reconciliation of GAAP to Non-GAAP Expenses (1)
Three Months Ended
--------------------------------------------------
(Unaudited; in March 31, June 30, September December
thousands) 2014 2014 30, 2014 31, 2014
----------- ----------- ----------- -----------
Sales and Marketing
(GAAP) $ 11,989 $ 11,978 $ 12,186 $ 11,563
Less Stock-based
compensation (403) (449) (530) (513)
Less Amortization of
intangible assets -- (37) (112) (112)
----------- ----------- ----------- -----------
Sales and Marketing
(Non-GAAP) $ 11,586 $ 11,492 $ 11,544 $ 10,938
Research and Development
(GAAP) $ 6,083 $ 6,627 $ 7,824 $ 8,217
Less Stock-based
compensation (437) (649) (1,362) (1,337)
Less Amortization of
intangible assets -- (57) (170) (170)
Plus Capitalization of
internally developed
software 617 729 1,035 765
----------- ----------- ----------- -----------
Research and Development
(Non-GAAP) $ 6,263 $ 6,650 $ 7,327 $ 7,475
General and
Administrative (GAAP) $ 4,416 $ 5,368 $ 5,682 $ 5,791
Less Stock-based
compensation (446) (651) (851) (849)
Less Amortization of
intangible assets -- (11) (32) (32)
Less Acquisition
related expenses -- (217) (8) (125)
----------- ----------- ----------- -----------
General and
Administrative (Non-
GAAP) $ 3,970 $ 4,489 $ 4,791 $ 4,785
-------------
Year Ended Three Months Ended
----------- ------------------------
(Unaudited; in December March 31, June 30,
thousands) 31, 2014 2015 2015
----------- ----------- -----------
Sales and Marketing
(GAAP) $ 47,716 $ 12,157 $ 13,064
Less Stock-based
compensation (1,895) (715) (954)
Less Amortization of
intangible assets (261) (180) (247)
----------- ----------- -----------
Sales and Marketing
(Non-GAAP) $ 45,560 $ 11,262 $ 11,863
Research and Development
(GAAP) $ 28,751 $ 8,484 $ 9,194
Less Stock-based
compensation (3,785) (1,627) (2,340)
Less Amortization of
intangible assets (397) (216) (276)
Plus Capitalization of
internally developed
software 3,146 827 1,597
----------- ----------- -----------
Research and Development
(Non-GAAP) $ 27,715 $ 7,468 $ 8,175
General and
Administrative (GAAP) $ 21,257 $ 5,720 $ 5,655
Less Stock-based
compensation (2,797) (924) (1,323)
Less Amortization of
intangible assets (75) (35) (37)
Less Acquisition
related expenses (350) (408) (128)
----------- ----------- -----------
General and
Administrative (Non-
GAAP) $ 18,035 $ 4,353 $ 4,167
-------------
(1) The sum of the quarterly financial information may vary from full year
financial information due to rounding.
Marin Software Inc.
Reconciliation of GAAP to Non-GAAP Measures (1)
Three Months Ended
--------------------------------------------------
(Unaudited; in March 31, June 30, September December
thousands) 2014 2014 30, 2014 31, 2014
----------- ----------- ----------- -----------
Gross Profit (GAAP) $ 14,432 $ 15,090 $ 16,539 $ 17,679
Plus Stock-based
compensation 211 192 173 189
Plus Amortization of
internally developed
software 445 465 480 515
Plus Amortization of
intangible assets -- 57 171 171
----------- ----------- ----------- -----------
Gross Profit (Non-GAAP) $ 15,088 $ 15,804 $ 17,363 $ 18,554
Operating Loss (GAAP) $ (8,056) $ (8,883) $ (9,153) $ (7,892)
Plus Stock-based
compensation 1,497 1,941 2,916 2,888
Plus Amortization of
internally developed
software 445 465 480 515
Plus Amortization of
intangible assets -- 162 485 485
Plus Acquisition
related expenses -- 217 8 125
Less Capitalization of
internally developed
software (617) (729) (1,035) (765)
----------- ----------- ----------- -----------
Operating Loss (Non-
GAAP) $ (6,731) $ (6,827) $ (6,299) $ (4,644)
Net Loss (GAAP) $ (8,306) $ (6,791) $ (9,244) $ (8,830)
Plus Stock-based
compensation 1,497 1,941 2,916 2,888
Plus Amortization of
internally developed
software 445 465 480 515
Plus Amortization of
intangible assets -- 162 485 485
Plus Noncash expenses
related to warrants 46 46 22 9
Plus Acquisition
related expenses -- 217 8 125
Less Capitalization of
internally developed
software (617) (729) (1,035) (765)
Less Effects of income
taxes related to
acquisition -- (2,603) -- 318
----------- ----------- ----------- -----------
Net Loss (Non-GAAP) $ (6,935) $ (7,292) $ (6,368) $ (5,255)
-------------
Year Ended Three Months Ended
----------- ------------------------
(Unaudited; in December March 31, June 30,
thousands) 31, 2014 2015 2015
----------- ----------- -----------
Gross Profit (GAAP) $ 63,740 $ 16,704 $ 16,176
Plus Stock-based
compensation 765 229 322
Plus Amortization of
internally developed
software 1,905 542 625
Plus Amortization of
intangible assets 399 215 276
----------- ----------- -----------
Gross Profit (Non-GAAP) $ 66,809 $ 17,690 $ 17,399
Operating Loss (GAAP) $ (33,984) $ (9,657) $ (11,737)
Plus Stock-based
compensation 9,242 3,495 4,939
Plus Amortization of
internally developed
software 1,905 542 625
Plus Amortization of
intangible assets 1,132 646 836
Plus Acquisition
related expenses 350 408 128
Less Capitalization of
internally developed
software (3,146) (827) (1,597)
----------- ----------- -----------
Operating Loss (Non-
GAAP) $ (24,501) $ (5,393) $ (6,806)
Net Loss (GAAP) $ (33,171) $ (9,660) $ (12,047)
Plus Stock-based
compensation 9,242 3,495 4,939
Plus Amortization of
internally developed
software 1,905 542 625
Plus Amortization of
intangible assets 1,132 646 836
Plus Noncash expenses
related to warrants 123 9 8
Plus Acquisition
related expenses 350 408 128
Less Capitalization of
internally developed
software (3,146) (827) (1,597)
Less Effects of income
taxes related to
acquisition (2,285) -- --
----------- ----------- -----------
Net Loss (Non-GAAP) $ (25,850) $ (5,387) $ (7,108)
-------------
(1) The sum of the quarterly financial information may vary from full year
financial information due to rounding.
Marin Software Inc.
Calculation of Non-GAAP Earnings Per Share (1)
Three Months Ended
--------------------------------------------------
(Unaudited; in
thousands, except per March 31, June 30, September December
share data) 2014 2014 30, 2014 31, 2014
----------- ----------- ----------- -----------
Net Loss (Non-GAAP) $ (6,935) $ (7,292) $ (6,368) $ (5,255)
Weighted-average shares
outstanding, basic and
diluted 33,112 33,771 34,849 35,060
----------- ----------- ----------- -----------
Non-GAAP net loss per
common share, basic and
diluted $ (0.21) $ (0.22) $ (0.18) $ (0.15)
=========== =========== =========== ===========
-------------
Year Ended Three Months Ended
----------- ------------------------
(Unaudited; in
thousands, except per December March 31, June 30,
share data) 31, 2014 2015 2015
----------- ----------- -----------
Net Loss (Non-GAAP) $ (25,850) $ (5,387) $ (7,108)
Weighted-average shares
outstanding, basic and
diluted 34,210 35,745 36,389
----------- ----------- -----------
Non-GAAP net loss per
common share, basic and
diluted $ (0.76) $ (0.15) $ (0.20)
=========== =========== ===========
-------------
Marin Software Inc.
Reconciliation of Net Loss to Adjusted EBITDA (1)
Three Months Ended
--------------------------------------------------
(Unaudited; in March 31, June 30, September December
thousands) 2014 2014 30, 2014 31, 2014
----------- ----------- ----------- -----------
Net Loss $ (8,306) $ (6,791) $ (9,244) $ (8,830)
Depreciation 1,350 1,367 1,428 1,524
Amortization of
internally developed
software 445 465 480 515
Amortization of
intangible assets -- 162 485 485
Interest expense, net 66 62 33 16
Provision for (benefit
from) income taxes 188 (2,440) 259 537
----------- ----------- ----------- -----------
EBITDA $ (6,257) $ (7,175) $ (6,559) $ (5,753)
Stock-based
compensation 1,497 1,941 2,916 2,888
Capitalization of
internally developed
software (617) (729) (1,035) (765)
Acquisition related
expenses -- 217 8 125
Other (income)
expenses, net (4) 286 (201) 385
----------- ----------- ----------- -----------
Adjusted EBITDA $ (5,381) $ (5,460) $ (4,871) $ (3,120)
=========== =========== =========== ===========
-------------
Year Ended Three Months Ended
----------- ------------------------
(Unaudited; in December March 31, June 30,
thousands) 31, 2014 2015 2015
----------- ----------- -----------
Net Loss $ (33,171) $ (9,660) $ (12,047)
Depreciation 5,669 1,630 1,675
Amortization of
internally developed
software 1,905 542 625
Amortization of
intangible assets 1,132 646 836
Interest expense, net 177 11 8
Provision for (benefit
from) income taxes (1,456) 236 138
----------- ----------- -----------
EBITDA $ (25,744) $ (6,595) $ (8,765)
Stock-based
compensation 9,242 3,495 4,939
Capitalization of
internally developed
software (3,146) (827) (1,597)
Acquisition related
expenses 350 408 128
Other (income)
expenses, net 466 (244) 164
----------- ----------- -----------
Adjusted EBITDA $ (18,832) $ (3,763) $ (5,131)
=========== =========== ===========
-------------
(1) The sum of the quarterly financial information may vary from full year
financial information due to rounding.
Marin Software Inc.
Non-GAAP Constant Currency Revenue Reconciliation (1)
Three Months Ended
------------------- --------------
June 30, June 30, Year-Over-Year
(Unaudited; in thousands) 2015 2014 Growth
--------- --------- --------------
Revenues, as reported $ 26,775 $ 23,853 12%
Foreign currency exchange impact on 2015
revenues using 2014 rates 1,253 -- --
--------- --------- --------------
Revenues, at constant currency $ 28,028 $ 23,853 18%
========= ========= ==============
(1) Constant currency excludes the impact of foreign currency fluctuations
and is computed by applying the average exchange rates from the three
months ended June 30, 2014, to the revenues during the corresponding
period in 2015.
Investor Relations Contact: Jason Starr Investor Relations Marin Software 415-906-8179 [email protected] Media Contact: John McNulty Marketing Marin Software 415-906-8165 [email protected]
Source: Marin Software