Marin Software Announces Third Quarter 2013 Financial Results
“We were pleased to record another quarter of strong growth, producing results above our guidance on both the top and bottom line,” said Chris Lien, Founder and Chief Executive Officer of Marin. "We continue to innovate on behalf of advertisers and agencies worldwide to address their digital marketing challenges, enabling them to better measure, manage, and optimize their online advertising campaigns across search, display, social, and mobile channels."
Third Quarter 2013 Financial Highlights:
- Net Revenues: Net revenues totaled $20.1 million, a year-over-year increase of 30% when compared to $15.5 million in the prior year period.
- Gross profit: GAAP gross profit was $12.2 million, resulting in gross margin of 61%, compared to GAAP gross margin of 58% during the third quarter of 2012. Non-GAAP gross profit was $12.7 million, resulting in non-GAAP gross margin of 63%, compared to non-GAAP gross margin of 60% during the third quarter of 2012.
- Loss from operations: GAAP loss from operations was ($7.9) million, compared to ($6.4) million for the third quarter of 2012. GAAP operating margin was (39%), compared to (41%) during the third quarter of 2012. Non-GAAP loss from operations was ($7.2) million, compared to ($5.9) million for the third quarter of 2012. Non-GAAP operating margin was (36%), compared to (38%) during the third quarter of 2012.
- Net loss: Net loss was ($8.2) million or ($0.25) per share based on 32.5 million weighted average shares outstanding. This compares to a net loss of ($6.6) million or ($1.51) per share based upon 4.4 million weighted average shares outstanding for the third quarter of 2012.
- Non-GAAP net loss: Non-GAAP net loss was ($7.4) million or ($0.23) per share based upon 32.5 million weighted average shares outstanding. This compares to ($6.1) million or ($0.28) per share based on 21.7 million weighted average shares outstanding during the third quarter of 2012, which assumes our convertible preferred stock was converted to common stock for the full quarter.
- Adjusted EBITDA: Adjusted EBITDA was a loss of ($5.9) million, as compared to a loss of ($5.2) million for the third quarter of 2012.
- Balance Sheet: As of September 30, 2013, cash and cash equivalents totaled $111.7 million, compared to $31.5 million as of December 31, 2012. Marin received $109.4 million in proceeds, net of issuance costs paid, from its initial public offering, including exercise of the over-allotment option, during the nine months ended September 30, 2013.
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."
Third Quarter 2013 Business Highlights
- Achieved $5 billion in annualized spend under management, becoming the first provider within our industry to do so. For the first time, greater than 25% was targeted to mobile devices (tablets and smartphones). Customers used the Marin platform to manage over 6 billion ad units around the globe.
- Expanded the capability and flexibility of its platform with the release of Marin Channel Connect. Through Channel Connect, advertisers can incorporate data from multiple publishers, including new and smaller publisher networks as well as search engine optimization into the Marin platform. Marketers gain a single source from which to measure performance, track revenue, and optimize bidding.
- Augmented support for Google Enhanced Campaigns, adding additional reporting and bidding capabilities for mobile campaigns. Through Marin, customers are able to generate group- and keyword-level reports by type of device, improving campaign visibility and allowing advertisers to optimize accordingly. To further maximize mobile marketers' return on investment, Marin now provides bid recommendations for mobile ads based on specific end-user conversion events, such as a store location or product detail view. Marin supports new Enhanced Campaign ad extensions, including Locations and Calls. Marin also developed further support for Yahoo! Japan Unified Campaigns. Expanded its Facebook offering, adding additional ad types to the Marin Campaign Wizard, enabling marketers to create thousands of ads and target audience combinations in minutes with a variety of bidding options.
- Increased the number of active advertisers leveraging the Marin platform. During the third quarter, 610 active advertisers utilized the Marin platform, compared to 502 during the third quarter of 2012. Marin defines active advertisers as an advertiser from whom Marin recognized revenues in excess of $2,000 in at least one month during the quarter.
As of November 6th, 2013, Marin is updating guidance for its fourth quarter and the full year 2013 as follows:
|In millions, except per share data|
|Range of Estimate|
|Three Months Ending December 31, 2013|
|Non-GAAP loss from operations||$||(7.4||)||$||(7.0||)|
|Non-GAAP net loss per share||$||(0.24||)||$||(0.22||)|
|Weighted average shares outstanding||33.0|
|Year Ending December 31, 2013|
|Non-GAAP loss from operations||$||(31.6||)||$||(31.2||)|
|Non-GAAP net loss per share||$||(1.08||)||$||(1.06||)|
|Weighted average shares outstanding||30.6|
SOURCE: BUSINESS WIRE