Marin Software Announces Fourth Quarter and Full Year 2016 Financial Results
SAN FRANCISCO, CA -- (Marketwired) -- 02/28/17 -- 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 fourth quarter and full year ended December 31, 2016.
"Given the financial discipline we showed, Marin Software was able to deliver $2.4 million of Adjusted EBITDA for the full year, and exit 2016 with $35.7 million in cash and cash equivalents and restricted cash," said Chris Lien, chief executive officer of Marin Software. "This provides us the financial resources to support a return to growth, including enabling us to continue to invest in product innovation to meet the advertising needs of the world's leading brands. With our new product innovation, along with improvements in our execution, we expect to return to growth as we deliver on our open, independent, cross-channel performance advertising platform vision."
Fourth Quarter 2016 Financial Highlights:
- Net revenues totaled $22.9 million, a year-over-year decrease of 21%, when compared to $29.0 million in the fourth quarter of 2015.
- GAAP gross profit was $14.5 million, resulting in a gross margin of 63%, compared to GAAP gross profit of $19.6 million and a gross margin of 67% during the fourth quarter of 2015. Non-GAAP gross profit was $15.8 million, resulting in a non-GAAP gross margin of 69%, compared to non-GAAP gross profit of $21.0 million and a non-GAAP gross margin of 72% during the fourth quarter of 2015.
- GAAP loss from operations was ($4.1) million, compared to ($2.1) million for the fourth quarter of 2015. GAAP operating margin was (18%), compared to (7%) during the fourth quarter of 2015. Non-GAAP loss from operations was ($1.4) million, compared to Non-GAAP income from operations of $1.7 million for the fourth quarter of 2015. Non-GAAP operating margin was (6%), compared to 6% during the fourth quarter of 2015.
- GAAP net loss was ($4.6) million, or ($0.12) per share, based upon 38.7 million weighted average shares outstanding. This compares to ($2.1) million, or ($0.06) per share, based upon 37.2 million weighted average shares outstanding during the fourth quarter of 2015.
- Non-GAAP net loss was ($1.9) million, or ($0.05) per share, based upon 38.7 million weighted average shares outstanding. This compares to Non-GAAP net income of $1.7 million, or $0.04 per share, based upon 37.2 million weighted average shares outstanding during the fourth quarter of 2015.
- Adjusted EBITDA was $0.03 million, compared to $3.5 million in the fourth quarter of 2015.
- As of December 31, 2016, cash and cash equivalents and restricted cash totaled $35.7 million, compared to $37.3 million as of December 31, 2015.
Full Year 2016 Financial Highlights:
- Net revenues totaled $99.9 million, a year-over-year decrease of 8%, when compared to $108.5 million in 2015.
- GAAP gross profit was $64.7 million, resulting in a gross margin of 65%, compared to GAAP gross profit of $68.4 million and a gross margin of 63% during 2015. Non-GAAP gross profit was $70.2 million, resulting in a non-GAAP gross margin of 70%, compared to non-GAAP gross profit of $73.3 million and a non-GAAP gross margin of 68% during 2015.
- GAAP loss from operations was ($15.9) million, compared to ($32.4) million in 2015. GAAP operating margin was (16%), compared to (30%) during 2015. Non-GAAP loss from operations was ($3.7) million, compared to ($14.9) million during 2015. Non-GAAP operating margin was (4%), compared to (14%) during 2015.
- GAAP net loss was ($16.5) million, or ($0.43) per share, based upon 38.3 million weighted average shares outstanding. This compares to ($33.3) million, or ($0.91) per share, based upon 36.6 million weighted average shares outstanding in 2015.
- Non-GAAP net loss was ($4.2) million, or ($0.11) per share, based upon 38.3 million weighted average shares outstanding. This compares to Non-GAAP net loss of ($15.7) million, or ($0.43) per share, based upon 36.6 million weighted average shares outstanding during 2015.
- Adjusted EBITDA was $2.4 million, compared to ($7.9) million in 2015.
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."
Fourth Quarter 2016 Business and Product Release Highlights:
- Debuted a proprietary global media plan functionality to support larger, more complex social campaigns with multiple objectives.
- Launched support for the Store Visits objective, giving marketers a better view of the impact of Facebook advertising on offline store traffic.
- Developed Search Intent Harvesting tools that allow marketers to leverage search signals in social campaigns to maximize performance of cross channel initiatives.
- Invited select customers to participate in the Platform Beta program, which delivers improved scale, faster data loading and application speed, combined with significant usability improvements.
- Continued to update optimization tools, further enhancing Marin Software's ability to deliver performance for marketers. Improvements include: faster bid calculations, easier bidding setup with advanced clustering technology, device-specific goals, forecasting, and budget allocation tools.
Financial Outlook:
As of February 28, 2017, Marin is initiating guidance for its first quarter 2017 as follows:
Forward-Looking Guidance
In millions, except per share data
Range of Estimate
From To
--------- ---------
Three Months Ending March 31, 2017
Revenues, net $ 19.0 $ 19.5
Non-GAAP loss from operations $ (5.6) $ (5.1)
Non-GAAP net loss per share $ (0.14) $ (0.13)
Weighted-average shares outstanding 39.1
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 and restructurings, and capitalization of internally developed software.
Additionally, the Company does not reconcile its forward-looking non-GAAP financial measures, non-GAAP loss from operations and non-GAAP net loss per share, due to variability between revenues and non-cash items such as stock-based compensation. The GAAP measures, loss from operations and net loss per share, include stock-based compensation expense, which is affected by hiring and retention needs, as well as the future price of Marin Software's stock. As a result, 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 and full year ended December 31, 2016, 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 at: http://public.viavid.com/index.php?id=122920. Following the completion of the call through 11:59 p.m. Eastern Time on March 7, 2017, a recording will be available for replay at the Company's website at: http://investor.marinsoftware.com/ and a telephone replay will be available by dialing (844) 512-2921 in the U.S. or (412) 317-6671 internationally with the recording access code 13654971.
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 an integrated SaaS ad 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 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 and the non-recurring costs associated with acquisitions and restructurings. 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 income (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 and 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 and for bonus compensation purposes, 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 first quarter of 2017. 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 February 28, 2017. 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)
December 31, December 31,
(Unaudited; in thousands, except par value) 2016 2015
------------ ------------
Assets
Current assets
Cash and cash equivalents $ 34,420 $ 37,326
Restricted cash 1,293 -
Accounts receivable, net 18,761 21,718
Prepaid expenses and other current assets 3,808 4,186
------------ ------------
Total current assets 58,282 63,230
Property and equipment, net 20,581 21,817
Goodwill 19,318 19,417
Intangible assets, net 7,325 10,405
Other noncurrent assets 1,587 1,323
------------ ------------
Total assets $ 107,093 $ 116,192
============ ============
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable $ 2,434 $ 1,710
Accrued expenses and other current liabilities 8,362 11,185
Deferred revenues 795 1,430
Current portion of long-term debt 1,015 1,384
------------ ------------
Total current liabilities 12,606 15,709
Long-term debt, less current portion 2,381 1,557
Other long-term liabilities 4,508 4,795
------------ ------------
Total liabilities 19,495 22,061
------------ ------------
Stockholders' equity
Common stock, $0.001 par value 39 37
Additional paid-in capital 286,659 275,604
Accumulated deficit (196,213) (179,733)
Accumulated other comprehensive loss (2,887) (1,777)
------------ ------------
Total stockholders' equity 87,598 94,131
------------ ------------
Total liabilities and stockholders' equity $ 107,093 $ 116,192
============ ============
Marin Software Inc.
Condensed Consolidated Statements of Operations
(On a GAAP basis)
Three Months Ended Year Ended December
December 31, 31,
-------------------- --------------------
(Unaudited; in thousands, except
per share data) 2016 2015 2016 2015
--------- --------- --------- ---------
Revenues, net $ 22,924 $ 29,015 $ 99,878 $ 108,530
Cost of revenues (1) (2) (3) 8,451 9,454 35,203 40,137
--------- --------- --------- ---------
Gross profit 14,473 19,561 64,675 68,393
--------- --------- --------- ---------
Operating expenses (1) (2) (3)
Sales and marketing 6,916 9,076 32,889 45,132
Research and development 6,520 7,478 27,841 33,318
General and administrative 5,168 5,134 19,890 22,391
--------- --------- --------- ---------
Total operating expenses 18,604 21,688 80,620 100,841
--------- --------- --------- ---------
Loss from operations (4,131) (2,127) (15,945) (32,448)
Interest expense, net (38) (36) (129) (118)
Other income, net 366 356 998 222
--------- --------- --------- ---------
Loss before provision for
income taxes (3,803) (1,807) (15,076) (32,344)
Provision for income taxes (793) (331) (1,404) (1,005)
--------- --------- --------- ---------
Net loss $ (4,596) $ (2,138) $ (16,480) $ (33,349)
========= ========= ========= =========
Net loss per common share, basic
and diluted $ (0.12) $ (0.06) $ (0.43) $ (0.91)
========= ========= ========= =========
Weighted-average shares
outstanding, basic and diluted 38,699 37,212 38,318 36,580
--------- --------- --------- ---------
(1) Includes stock-based
compensation expense as
follows:
Cost of revenues $ 299 $ 371 $ 1,314 $ 1,171
Sales and marketing 198 433 1,281 2,537
Research and development 840 1,687 4,989 7,518
General and administrative 366 1,088 2,711 4,393
--------- --------- --------- ---------
Total $ 1,703 $ 3,579 $ 10,295 $ 15,619
========= ========= ========= =========
(2) Includes amortization of
intangible assets as follows:
Cost of revenues $ 247 $ 271 $ 1,027 $ 1,033
Sales and marketing 223 247 934 921
Research and development 247 271 1,027 1,034
General and administrative 13 37 92 146
--------- --------- --------- ---------
Total $ 730 $ 826 $ 3,080 $ 3,134
========= ========= ========= =========
(3) Includes restructuring
related expenses as follows:
Cost of revenues $ 9 $ 68 $ 184 $ 173
Sales and marketing 135 59 348 718
Research and development - - 44 53
General and administrative 3 6 20 270
--------- --------- --------- ---------
Total $ 147 $ 133 $ 596 $ 1,214
========= ========= ========= =========
Marin Software Inc.
Condensed Consolidated Statements of Cash Flows
(On a GAAP basis)
Year Ended December
31,
--------------------
(Unaudited; in thousands) 2016 2015
--------- ---------
Operating activities
Net loss $ (16,480) $ (33,349)
Adjustments to reconcile net loss to net cash provided
by (used in) operating activities
Depreciation 6,035 6,993
Amortization of internally developed software 2,988 2,550
Amortization of intangible assets 3,080 3,134
(Gain) loss on disposal of property and equipment (3) 19
Unrealized foreign currency gains (419) (216)
Noncash interest expense related to debt agreements 27 42
Stock-based compensation related to equity awards
and restricted stock 10,295 15,619
Provision for bad debts 2,328 1,210
Deferred income tax benefits (305) (177)
Excess tax benefits from stock-based award
activities - (3)
Payment of contingent consideration for prior
acquisition (93) -
Changes in operating assets and liabilities, net of
effect of acquisitions
Accounts receivable 795 (2,986)
Prepaid expenses and other current assets 546 575
Other assets (346) 348
Accounts payable 741 (1,597)
Deferred revenues (628) (625)
Accrued expenses and other current liabilities (2,842) 1,433
--------- ---------
Net cash provided by (used in) operating
activities 5,719 (7,030)
--------- ---------
Investing activities
Purchases of property and equipment (1,207) (8,584)
Proceeds from disposal of property and equipment 5 -
Capitalization of internally developed software (4,712) (5,568)
Acquisitions of businesses, net of cash acquired - (7,738)
--------- ---------
Net cash used in investing activities (5,914) (21,890)
--------- ---------
Financing activities
Repayment of notes payable (1,436) (3,649)
Debt issuance costs - (53)
Repurchase of unvested shares - (2)
Proceeds from exercise of common stock options 390 1,439
Proceeds from employee stock purchase plan, net 663 968
Stock issuance costs - (51)
Excess tax benefits from stock-based award activities - 3
--------- ---------
Net cash used in financing activities (383) (1,345)
--------- ---------
Effect of foreign exchange rate changes on
cash and cash equivalents and restricted cash (1,035) (662)
Net decrease in cash and cash equivalents and
restricted cash (1,613) (30,927)
Cash and cash equivalents and restricted cash
Beginning of period 37,326 68,253
--------- ---------
End of period $ 35,713 $ 37,326
--------- ---------
Supplemental disclosure of noncash investing and
financing activities
Acquisition of equipment through capital leases $ 1,864 $ 2,350
Purchases of property and equipment recorded in
accounts payable and accrued expenses 5 -
Issuance of common stock under employee stock purchase
plan 547 1,035
Issuance of common stock in connection with
acquisitions of businesses - 4,338
Marin Software Inc.
Reconciliation of GAAP to Non-GAAP Expenses
(1)
----------
Year
Three Months Ended Ended
------------------------------------- --------
March June September December December
31, 30, 30, 31, 31,
(Unaudited; in thousands) 2015 2015 2015 2015 2015
------- ------- --------- -------- --------
Sales and Marketing (GAAP) $12,157 $13,064 $ 10,835 $ 9,076 $ 45,132
Less Stock-based
compensation (715) (954) (435) (433) (2,537)
Less Amortization of
intangible assets (180) (247) (247) (247) (921)
Less Restructuring
related expenses - - (659) (59) (718)
------- ------- --------- -------- --------
Sales and Marketing (Non-
GAAP) $11,262 $11,863 $ 9,494 $ 8,337 $ 40,956
Research and Development
(GAAP) $ 8,484 $ 9,194 $ 8,162 $ 7,478 $ 33,318
Less Stock-based
compensation (1,627) (2,340) (1,864) (1,687) (7,518)
Less Amortization of
intangible assets (216) (276) (271) (271) (1,034)
Less Restructuring
related expenses - - (53) - (53)
Plus Capitalization of
internally developed
software 827 1,597 1,683 1,461 5,568
------- ------- --------- -------- --------
Research and Development
(Non-GAAP) $ 7,468 $ 8,175 $ 7,657 $ 6,981 $ 30,281
General and Administrative
(GAAP) $ 5,720 $ 5,655 $ 5,882 $ 5,134 $ 22,391
Less Stock-based
compensation (924) (1,323) (1,058) (1,088) (4,393)
Less Amortization of
intangible assets (35) (37) (37) (37) (146)
Less Acquisition related
expenses (408) (128) (68) (9) (613)
Less Restructuring
related expenses - - (264) (6) (270)
------- ------- --------- -------- --------
General and Administrative
(Non-GAAP) $ 4,353 $ 4,167 $ 4,455 $ 3,994 $ 16,969
----------
----------
Year
Three Months Ended Ended
------------------------------------- --------
March June September December December
31, 30, 30, 31, 31,
(Unaudited; in thousands) 2016 2016 2016 2016 2016
------- ------- --------- -------- --------
Sales and Marketing (GAAP)$ 9,107 $ 9,285 $ 7,581 $ 6,916 $ 32,889
Less Stock-based
compensation (499) (422) (162) (198) (1,281)
Less Amortization of
intangible assets (248) (240) (223) (223) (934)
Less Restructuring
related expenses - (211) (2) (135) (348)
------- ------- --------- -------- --------
Sales and Marketing (Non-
GAAP) $ 8,360 $ 8,412 $ 7,194 $ 6,360 $ 30,326
Research and Development
(GAAP) $ 8,009 $ 7,044 $ 6,268 $ 6,520 $ 27,841
Less Stock-based
compensation (2,022) (1,275) (852) (840) (4,989)
Less Amortization of
intangible assets (271) (263) (246) (247) (1,027)
Less Restructuring
related expenses - (48) 4 - (44)
Plus Capitalization of
internally developed
software 1,493 1,407 1,150 662 4,712
------- ------- --------- -------- --------
Research and Development
(Non-GAAP) $ 7,209 $ 6,865 $ 6,324 $ 6,095 $ 26,493
General and Administrative
(GAAP) $ 4,969 $ 5,018 $ 4,735 $ 5,168 $ 19,890
Less Stock-based
compensation (880) (933) (532) (366) (2,711)
Less Amortization of
intangible assets (36) (28) (15) (13) (92)
Less Acquisition related
expenses (9) (20) - (11) (40)
Less Restructuring
related expenses - (15) (2) (3) (20)
------- ------- --------- -------- --------
General and Administrative
(Non-GAAP) $ 4,044 $ 4,022 $ 4,186 $ 4,775 $ 17,027
----------
(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)
----------
Year
Three Months Ended Ended
-------------------------------------- --------
March September December December
31, June 30, 30, 31, 31,
(Unaudited; in thousands) 2015 2015 2015 2015 2015
------- -------- --------- -------- --------
Gross Profit (GAAP) $16,704 $ 16,176 $ 15,952 $ 19,561 $ 68,393
Plus Stock-based
compensation 229 322 249 371 1,171
Plus Amortization of
internally developed
software 542 625 683 700 2,550
Plus Amortization of
intangible assets 215 276 271 271 1,033
Plus Restructuring
related expenses - - 105 68 173
------- -------- --------- -------- --------
Gross Profit (Non-GAAP) $17,690 $ 17,399 $ 17,260 $ 20,971 $ 73,320
Operating Loss (GAAP) $(9,657) $(11,737) $ (8,927) $ (2,127) $(32,448)
Plus Stock-based
compensation 3,495 4,939 3,606 3,579 15,619
Plus Amortization of
internally developed
software 542 625 683 700 2,550
Plus Amortization of
intangible assets 646 836 826 826 3,134
Plus Acquisition
related expenses 408 128 68 9 613
Plus Restructuring
related expenses - - 1,081 133 1,214
Less Capitalization of
internally developed
software (827) (1,597) (1,683) (1,461) (5,568)
------- -------- --------- -------- --------
Operating (Loss) Income
(Non-GAAP) $(5,393) $ (6,806) $ (4,346) $ 1,659 $(14,886)
Net Loss (GAAP) $(9,660) $(12,047) $ (9,504) $ (2,138) $(33,349)
Plus Stock-based
compensation 3,495 4,939 3,606 3,579 15,619
Plus Amortization of
internally developed
software 542 625 683 700 2,550
Plus Amortization of
intangible assets 646 836 826 826 3,134
Plus Noncash expenses
related to warrants 9 8 19 6 42
Plus Acquisition
related expenses 408 128 68 9 613
Plus Restructuring
related expenses - - 1,081 133 1,214
Less Capitalization of
internally developed
software (827) (1,597) (1,683) (1,461) (5,568)
------- -------- --------- -------- --------
Net (Loss) Income (Non-
GAAP) $(5,387) $ (7,108) $ (4,904) $ 1,654 $(15,745)
----------
----------
Year
Three Months Ended Ended
------------------------------------- --------
March June September December December
31, 30, 30, 31, 31,
(Unaudited; in thousands) 2016 2016 2016 2016 2016
------- ------- --------- -------- --------
Gross Profit (GAAP) $17,998 $16,859 $ 15,345 $ 14,473 $ 64,675
Plus Stock-based
compensation 421 309 285 299 1,314
Plus Amortization of
internally developed
software 681 719 780 808 2,988
Plus Amortization of
intangible assets 271 263 246 247 1,027
Plus Restructuring
related expenses - 151 24 9 184
------- ------- --------- -------- --------
Gross Profit (Non-GAAP) $19,371 $18,301 $ 16,680 $ 15,836 $ 70,188
Operating Loss (GAAP) $(4,087) $(4,488) $ (3,239) $ (4,131) $(15,945)
Plus Stock-based
compensation 3,822 2,939 1,831 1,703 10,295
Plus Amortization of
internally developed
software 681 719 780 808 2,988
Plus Amortization of
intangible assets 826 794 730 730 3,080
Plus Acquisition
related expenses 9 20 - 11 40
Plus Restructuring
related expenses - 425 24 147 596
Less Capitalization of
internally developed
software (1,493) (1,407) (1,150) (662) (4,712)
------- ------- --------- -------- --------
Operating (Loss) Income
(Non-GAAP) $ (242) $ (998) $ (1,024) $ (1,394) $ (3,658)
Net Loss (GAAP) $(4,413) $(4,418) $ (3,053) $ (4,596) $(16,480)
Plus Stock-based
compensation 3,822 2,939 1,831 1,703 10,295
Plus Amortization of
internally developed
software 681 719 780 808 2,988
Plus Amortization of
intangible assets 826 794 730 730 3,080
Plus Noncash expenses
related to warrants 7 6 5 9 27
Plus Acquisition
related expenses 9 20 - 11 40
Plus Restructuring
related expenses - 425 24 147 596
Less Capitalization of
internally developed
software (1,493) (1,407) (1,150) (662) (4,712)
------- ------- --------- -------- --------
Net (Loss) Income (Non-
GAAP) $ (561) $ (922) $ (833) $ (1,850) $ (4,166)
----------
(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)
----------
Year
Three Months Ended Ended
------------------------------------- --------
March June September December December
(Unaudited; in thousands, 31, 30, 30, 31, 31,
except per share data) 2015 2015 2015 2015 2015
------- ------- --------- -------- --------
Net (Loss) Income (Non-
GAAP) $(5,387) $(7,108) $ (4,904) $ 1,654 $(15,745)
Weighted-average shares
outstanding, basic and
diluted 35,745 36,389 36,953 37,212 36,580
------- ------- --------- -------- --------
Non-GAAP net (loss) income
per common share, basic
and diluted $ (0.15) $ (0.20) $ (0.13) $ 0.04 $ (0.43)
======= ======= ========= ======== ========
----------
----------
Year
Three Months Ended Ended
------------------------------------- --------
March June September December December
(Unaudited; in thousands, 31, 30, 30, 31, 31,
except per share data) 2016 2016 2016 2016 2016
------- ------- --------- -------- --------
Net (Loss) Income (Non-
GAAP) $ (561) $ (922) $ (833) $ (1,850) $ (4,166)
Weighted-average shares
outstanding, basic and
diluted 37,767 38,280 38,520 38,699 38,318
------- ------- --------- -------- --------
Non-GAAP net (loss) income
per common share, basic
and diluted $ (0.01) $ (0.02) $ (0.02) $ (0.05) $ (0.11)
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Marin Software Inc.
Reconciliation of Net Income (Loss) to Adjusted
EBITDA (1)
----------
Year
Three Months Ended Ended
-------------------------------------- --------
March September December December
31, June 30, 30, 31, 31,
(Unaudited; in thousands) 2015 2015 2015 2015 2015
------- -------- --------- -------- --------
Net Loss $(9,660) $(12,047) $ (9,504) $ (2,138) $(33,349)
Depreciation 1,630 1,675 1,861 1,827 6,993
Amortization of
internally developed
software 542 625 683 700 2,550
Amortization of
intangible assets 646 836 826 826 3,134
Interest expense, net 11 8 63 36 118
Provision for (benefit
from) income taxes 236 138 300 331 1,005
------- -------- --------- -------- --------
EBITDA $(6,595) $ (8,765) $ (5,771) $ 1,582 $(19,549)
Stock-based
compensation 3,495 4,939 3,606 3,579 15,619
Capitalization of
internally developed
software (827) (1,597) (1,683) (1,461) (5,568)
Acquisition related
expenses 408 128 68 9 613
Restructuring related
expenses - - 1,081 133 1,214
Other (income)
expenses, net (244) 164 214 (356) (222)
------- -------- --------- -------- --------
Adjusted EBITDA $(3,763) $ (5,131) $ (2,485) $ 3,486 $ (7,893)
======= ======== ========= ======== ========
----------
----------
Year
Three Months Ended Ended
------------------------------------- --------
March June September December December
31, 30, 30, 31, 31,
(Unaudited; in thousands) 2016 2016 2016 2016 2016
------- ------- --------- -------- --------
Net Loss $(4,413) $(4,418) $ (3,053) $ (4,596) $(16,480)
Depreciation 1,665 1,542 1,403 1,425 6,035
Amortization of
internally developed
software 681 719 780 808 2,988
Amortization of
intangible assets 826 794 730 730 3,080
Interest expense, net 18 34 39 38 129
Provision for (benefit
from) income taxes 341 307 (37) 793 1,404
------- ------- --------- -------- --------
EBITDA $ (882) $(1,022) $ (138) $ (802) $ (2,844)
Stock-based
compensation 3,822 2,939 1,831 1,703 10,295
Capitalization of
internally developed
software (1,493) (1,407) (1,150) (662) (4,712)
Acquisition related
expenses 9 20 - 11 40
Restructuring related
expenses - 425 24 147 596
Other (income)
expenses, net (33) (411) (188) (366) (998)
------- ------- --------- -------- --------
Adjusted EBITDA $ 1,423 $ 544 $ 379 $ 31 $ 2,377
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(1) The sum of the quarterly financial information may vary from full year
financial information due to rounding.
Investor Relations Contact:Investor RelationsMarin [email protected] Contact:Wesley MacLagganMarketingMarin Software(415) [email protected]
Source: Marin Software