UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): November 5, 2020

 

Marin Software Incorporated

(Exact name of Registrant as Specified in Its Charter)

 

 

 

Delaware

001-35838

20-4647180

(State or Other Jurisdiction

of Incorporation)

(Commission File Number)

(IRS Employer

Identification No.)

 

 

 

123 Mission Street, 27th Floor

San Francisco, California 94105

 

94105

(Address of Principal Executive Offices)

 

(Zip Code)

 

(415) 399-2580

Registrant’s Telephone Number, Including Area Code

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock, par value $0.001 per share

MRIN

The Nasdaq Global Market

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

 

 

 

 


 

Item 2.02     Results of Operations and Financial Condition.

On November 5, 2020, Marin Software Incorporated (the “Company”) issued a press release announcing its financial results for the quarter ended September 30, 2020. The press release is being furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein.

The information in this Current Report on Form 8-K and Exhibit 99.1 attached hereto are being furnished pursuant to Item 2.02 of Form 8-K and will not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor will it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in such filing.

Item 9.01     Financial Statements and Exhibits.

(d) Exhibits.

 

Exhibit No.

 

Description

99.1

 

Press release issued by Marin Software Incorporated on November 5, 2020.

 

1


 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

 

Marin Software Incorporated

 

 

 

 

Date: November 5, 2020

 

By:

/s/ Robert Bertz

 

 

 

Robert Bertz

 

 

 

Chief Financial Officer

 

2

mrin-ex991_6.htm

Exhibit 99.1

Marin Software Announces Third Quarter Financial Results

San Francisco, CA (November 5, 2020) – Marin Software Incorporated (NASDAQ: MRIN), a leading provider of digital marketing software for performance-driven advertisers and agencies, today announced financial results for the third quarter ended September 30, 2020.

“The increase in online commerce that has been generally observed since the beginning of the COVID-19 pandemic combined with the upcoming Q4 retail season both highlight the importance of Amazon as part of a digital marketing strategy. Marin’s integration with Amazon Attribution unlocks what is currently a black box for many advertisers and helps them better understand the full value of their Google and Facebook investment. Without such insights, advertisers are flying blind and likely undervaluing their performance.” said Chief Executive Officer Chris Lien.

Third Quarter 2020 Business and Product Release Highlights:

Launched reporting for Google Smart Shopping campaign types.

Enhanced bulk editing and creation support for Amazon in MarinOne.

Simplified linking of Amazon accounts with information about Amazon Campaign Type designation in the Linking Wizard.

Introduced product title on the product-level grids in Marin Search and MarinOne. 

Expanded Amazon-specific columns to enable Buy Box Monitoring, Sponsored Brand performance by asset and evaluation of bid modifiers by placements for Sponsored Products. 

Added management support for Bing Responsive Search ad formats in Marin Search and MarinOne.

Released a Client View and Dashboard widget to easily view performance across brands, lines of business or geographies in a single place.

Enhanced Cross-Client Reports in MarinOne to support client-level columns for dimensions, custom columns, conversion types, and currency.

Expanded automation with Automated Rules for Social allowing advertisers to trigger workflows based on campaign performance and other criteria.

Added support for new Facebook ad types in Marin Social, including Marketplace, Search, and Instagram Explore ads.

Added support for Facebook Housing, Employment and Credit Audiences in Marin Social, providing better protection against potential discrimination by advertisers.

Released support for Facebook’s Value Optimization bid strategy in Marin Social.

Third Quarter 2020 Financial Updates:

Net revenues totaled $6.8 million, a year-over-year decrease of 42% when compared to $11.7 million in the third quarter of 2019.

GAAP loss from operations was ($4.3) million, resulting in a GAAP operating margin of (63%), as compared to a GAAP loss from operations of ($4.1) million and a GAAP operating margin of (35%) for the third quarter of 2019.

Non-GAAP loss from operations was ($2.8) million, resulting in a non-GAAP operating margin of (42%), as compared to a non-GAAP loss from operations of ($2.9) million and a non-GAAP operating margin of (25%) for the third quarter of 2019.

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.”

During the third quarter ended September 30, 2020, the Company commenced the implementation of a restructuring and reduction-in-force plan to reduce the Company’s operating costs and address the impact of the COVID-19 pandemic. The plan is expected to ultimately result in the reduction of the Company’s global workforce by approximately 60 employees, approximately half of which are located outside of the United States. The Company completed the majority of these actions during the third quarter of 2020 and incurred $1.1 million in restructuring costs during the quarter.

Since the end of the third quarter ended September 30, 2020, the Company has issued and sold 1,900,000 shares of its common stock, at a weighted average sales price of $3.30 per share, pursuant to the Company’s at-the-market offering program and related shelf registration statement filed with the Securities and Exchange Commission, netting proceeds to the Company of approximately $6.0 million.


Financial Outlook:

Marin is providing guidance for its fourth quarter of 2020 as follows:

 

Forward-Looking Guidance

In millions

 

 

 

 

 

 

 

 

 

 

 

 

Range of Estimate

 

 

 

 

From

 

 

To

 

 

Three Months Ending December 31, 2020

 

 

 

 

 

 

 

 

 

Revenues, net

 

$

6.3

 

 

$

6.8

 

 

Non-GAAP loss from operations

 

 

(2.4

)

 

 

(1.9

)

 

 

Non-GAAP loss from operations excludes the effects of stock-based compensation, amortization of internally developed software and intangible assets, impairment of goodwill and long-lived assets, capitalization of internally developed software and non-recurring costs associated with restructurings and divestitures.

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 September 30, 2020, and its outlook for the fourth quarter of 2020. 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=141617. Following the completion of the call through 11:59 p.m. Eastern Time on November 12, 2020, a recorded replay will be available on the Company’s website at http://investor.marinsoftware.com/ and a telephone replay will be available by dialing (844) 512-2921 in the United States or (412) 317-6671 internationally with the recording access code 13710848.

About Marin Software

Marin Software Incorporated’s (NASDAQ: MRIN) mission is to give advertisers the power to drive higher efficiency and transparency in their paid marketing programs that run on the world’s largest publishers. Marin Software provides enterprise marketing software for advertisers and agencies to integrate, align, and amplify their digital advertising spend across the web and mobile devices. Marin Software offers a unified SaaS advertising management platform for search, social, and eCommerce advertising. The Company helps digital marketers convert precise audiences, improve financial performance, and make better decisions. Headquartered in San Francisco with offices worldwide, Marin Software’s technology powers marketing campaigns around the globe. For more information about Marin Software, please visit 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 and intangible assets, impairment of goodwill and long-lived assets, non-cash expenses related to debt agreements, capitalization of internally developed software and non-recurring costs associated with restructurings and divestitures. 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 and intangible assets, capitalization of internally developed software, impairment of goodwill and long-lived assets, benefit from or provision for income taxes, other income, net and non-recurring costs associated with restructurings and divestitures.


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, impact of investments in product and technology on future operating results, progress on product development efforts, product capabilities, advertiser and customer behavior, effects of the COVID-19 pandemic, planned cost savings measures and estimated cost savings, and future financial results, including its outlook for the fourth quarter of 2020. 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 the effects of the continuing global outbreak of COVID-19 on demand for our products and services, the amount of digital advertising spend managed by our customers using our products, the productivity of our personnel and other aspects of our business; our ability to maintain or grow sales to new and existing customers; any adverse changes in our relationships with and access to publishers and advertising agencies and strategic business partners, including any adverse changes in our revenue sharing agreement with Google; our ability to manage expenses and liquidity and raise additional capital; our ability complete successfully our recent restructuring plan and realize cost savings; our ability to retain and attract qualified management, technical and sales and marketing personnel; any default under or required repayment of our indebtedness or any delays or reductions in forgiveness of such indebtedness; delays in the release of updates to our product platform or new features or delays in customer deployment of any such updates or 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; level of usage and advertising spend managed on our platform; our ability to maintain or expand sales of our solutions in channels other than search advertising; any slow-down in the search advertising market generally; any 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 our ability to acquire and integrate other businesses or sell business assets. 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, and 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 November 5, 2020. 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, Marin Software

ir@marinsoftware.com

Media Contact

Wesley MacLaggan

Marketing, Marin Software

(415) 399-2580

press@marinsoftware.com

 



Marin Software Incorporated

 

 

 

 

 

 

 

 

Condensed Consolidated Balance Sheets

 

 

 

 

 

 

 

 

(On a GAAP basis)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

 

December 31,

 

(Unaudited; in thousands, except par value)

 

2020

 

 

2019

 

Assets:

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

7,978

 

 

$

11,134

 

Restricted cash

 

 

972

 

 

 

971

 

Accounts receivable, net

 

 

5,432

 

 

 

8,939

 

Prepaid expenses and other current assets

 

 

3,029

 

 

 

3,522

 

Total current assets

 

 

17,411

 

 

 

24,566

 

Property and equipment, net

 

 

5,969

 

 

 

8,524

 

Right-of-use assets, operating leases

 

 

9,336

 

 

 

7,705

 

Intangible assets, net

 

 

 

 

 

95

 

Other non-current assets

 

 

913

 

 

 

1,403

 

Total assets

 

$

33,629

 

 

$

42,293

 

Liabilities and Stockholders' Equity:

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

1,194

 

 

$

1,679

 

Accrued expenses and other current liabilities

 

 

7,118

 

 

 

9,010

 

Note payable, current

 

 

2,033

 

 

 

-

 

Operating lease liabilities

 

 

6,820

 

 

 

3,786

 

Total current liabilities

 

 

17,165

 

 

 

14,475

 

Note payable, net of current

 

 

1,287

 

 

 

-

 

Operating lease liabilities, non-current

 

 

3,483

 

 

 

5,181

 

Other long-term liabilities

 

 

884

 

 

 

1,577

 

Total liabilities

 

 

22,819

 

 

 

21,233

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Common stock, $0.001 par value

 

 

7

 

 

 

7

 

Additional paid-in capital

 

 

300,490

 

 

 

299,263

 

Accumulated deficit

 

 

(288,636

)

 

 

(277,112

)

Accumulated other comprehensive loss

 

 

(1,051

)

 

 

(1,098

)

Total stockholders’ equity

 

 

10,810

 

 

 

21,060

 

Total liabilities and stockholders’ equity

 

$

33,629

 

 

$

42,293

 

 

 

 

 

 

 

 

 

 



Marin Software Incorporated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidated Statements of Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(On a GAAP basis)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(Unaudited; in thousands, except per share data)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Revenues, net

 

$

6,796

 

 

$

11,728

 

 

$

22,731

 

 

$

37,652

 

Cost of revenues

 

 

4,323

 

 

 

5,567

 

 

 

14,253

 

 

 

17,307

 

Gross profit

 

 

2,473

 

 

 

6,161

 

 

 

8,478

 

 

 

20,345

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

1,491

 

 

 

3,732

 

 

 

5,683

 

 

 

12,453

 

Research and development

 

 

3,106

 

 

 

3,872

 

 

 

9,881

 

 

 

13,427

 

General and administrative

 

 

2,131

 

 

 

2,631

 

 

 

6,123

 

 

 

8,129

 

Total operating expenses

 

 

6,728

 

 

 

10,235

 

 

 

21,687

 

 

 

34,009

 

Loss from operations

 

 

(4,255

)

 

 

(4,074

)

 

 

(13,209

)

 

 

(13,664

)

Other income, net

 

 

111

 

 

 

640

 

 

 

1,117

 

 

 

1,712

 

Loss before benefit from income taxes

 

 

(4,144

)

 

 

(3,434

)

 

 

(12,092

)

 

 

(11,952

)

Benefit from income taxes

 

 

(72

)

 

 

(161

)

 

 

(568

)

 

 

(70

)

Net loss

 

$

(4,072

)

 

$

(3,273

)

 

$

(11,524

)

 

$

(11,882

)

Net loss per common share, basic and diluted

 

$

(0.58

)

 

$

(0.49

)

 

$

(1.67

)

 

$

(1.90

)

Weighted-average shares outstanding, basic and diluted

 

 

7,017

 

 

 

6,631

 

 

 

6,916

 

 

 

6,262

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Marin Software Incorporated

 

 

 

 

 

 

 

 

Condensed Consolidated Statements of Cash Flows

 

 

 

 

 

 

 

 

(On a GAAP basis)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30,

 

(Unaudited; in thousands)

 

2020

 

 

2019

 

Operating activities:

 

 

 

 

 

 

 

 

Net loss

 

$

(11,524

)

 

$

(11,882

)

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation

 

 

1,661

 

 

 

1,475

 

Amortization of internally developed software

 

 

2,330

 

 

 

2,762

 

Amortization of intangible assets

 

 

95

 

 

 

1,468

 

Amortization of deferred costs to obtain and fulfill contracts

 

 

700

 

 

 

1,240

 

Loss on disposals of property and equipment and right-of-use assets

 

 

19

 

 

 

13

 

Interest expense

 

 

14

 

 

 

-

 

Unrealized foreign currency losses (gains)

 

 

(29

)

 

 

(52

)

Stock-based compensation expense related to equity awards

 

 

1,208

 

 

 

2,100

 

Provision for bad debts

 

 

(204

)

 

 

(47

)

Net change in operating leases

 

 

(294

)

 

 

(421

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

3,723

 

 

 

3,728

 

Prepaid expenses and other assets

 

 

289

 

 

 

1

 

Accounts payable

 

 

(482

)

 

 

(774

)

Accrued expenses and other liabilities

 

 

(1,994

)

 

 

737

 

Net cash (used in) provided by operating activities

 

 

(4,488

)

 

 

348

 

Investing activities:

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(14

)

 

 

(92

)

Capitalization of internally developed software

 

 

(1,442

)

 

 

(1,874

)

Net cash used in investing activities

 

 

(1,456

)

 

 

(1,966

)

Financing activities:

 

 

 

 

 

 

 

 

Proceeds from note payable

 

 

3,320

 

 

 

-

 

Proceeds from issuance of common shares through equity distribution agreement, net of offering costs of $9 and $203 for 2020 and 2019, respectively

 

 

179

 

 

 

1,504

 

Payment of principal on finance lease liabilities

 

 

(545

)

 

 

(986

)

Employee taxes paid for withheld shares upon equity award settlement

 

 

(220

)

 

 

(295

)

Proceeds from employee stock purchase plan, net

 

 

19

 

 

 

123

 

Net cash provided by financing activities

 

 

2,753

 

 

 

346

 

Effect of foreign exchange rate changes on cash and cash equivalents and restricted cash

 

 

36

 

 

 

(93

)

Net decrease in cash and cash equivalents and restricted cash

 

 

(3,155

)

 

 

(1,365

)

Cash and cash equivalents and restricted cash:

 

 

 

 

 

 

 

 

Beginning of period

 

 

12,105

 

 

 

11,503

 

End of period

 

$

8,950

 

 

$

10,138

 

 

 

 

 

 

 

 

 

 

 

 


Marin Software Incorporated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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,

 

 

June 30,

 

 

September 30,

 

(Unaudited; in thousands)

 

2019

 

 

2019

 

 

2019

 

 

2019

 

 

 

2019

 

 

 

2020

 

 

2020

 

 

2020

 

Sales and Marketing (GAAP)

 

$

4,634

 

 

$

4,087

 

 

$

3,732

 

 

$

3,383

 

 

 

$

15,836

 

 

 

$

2,312

 

 

$

1,880

 

 

$

1,491

 

Less Stock-based compensation

 

 

(180

)

 

 

(205

)

 

 

(155

)

 

 

(141

)

 

 

 

(681

)

 

 

 

(110

)

 

 

(149

)

 

 

(24

)

Less Amortization of intangible assets

 

 

(64

)

 

 

 

 

 

 

 

 

 

 

 

 

(64

)

 

 

 

 

 

 

 

 

 

 

Less Restructuring related expenses

 

 

(157

)

 

 

(66

)

 

 

 

 

 

(178

)

 

 

 

(401

)

 

 

 

(50

)

 

 

 

 

 

(214

)

Sales and Marketing (Non-GAAP)

 

$

4,233

 

 

$

3,816

 

 

$

3,577

 

 

$

3,064

 

 

 

$

14,690

 

 

 

$

2,152

 

 

$

1,731

 

 

$

1,253

 

Research and Development (GAAP)

 

$

4,895

 

 

$

4,660

 

 

$

3,872

 

 

$

4,418

 

 

 

$

17,845

 

 

 

$

3,437

 

 

$

3,338

 

 

$

3,106

 

Less Stock-based compensation

 

 

(281

)

 

 

(269

)

 

 

(266

)

 

 

(209

)

 

 

 

(1,025

)

 

 

 

(167

)

 

 

(217

)

 

 

(123

)

Less Amortization of intangible assets

 

 

(234

)

 

 

(234

)

 

 

(234

)

 

 

(173

)

 

 

 

(875

)

 

 

 

(48

)

 

 

 

 

 

 

Less Restructuring related expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(185

)

Plus Capitalization of internally developed software

 

 

482

 

 

 

388

 

 

 

1,004

 

 

 

182

 

 

 

 

2,056

 

 

 

 

540

 

 

 

418

 

 

 

484

 

Research and Development (Non-GAAP)

 

$

4,862

 

 

$

4,545

 

 

$

4,376

 

 

$

4,218

 

 

 

$

18,001

 

 

 

$

3,762

 

 

$

3,539

 

 

$

3,282

 

General and Administrative (GAAP)

 

$

3,221

 

 

$

2,277

 

 

$

2,631

 

 

$

2,317

 

 

 

$

10,446

 

 

 

$

1,981

 

 

$

2,011

 

 

$

2,131

 

Less Stock-based compensation

 

 

(99

)

 

 

(146

)

 

 

(105

)

 

 

(75

)

 

 

 

(425

)

 

 

 

(75

)

 

 

(72

)

 

 

(67

)

Less Restructuring related expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(123

)

General and Administrative (Non-GAAP)

 

$

3,122

 

 

$

2,131

 

 

$

2,526

 

 

$

2,242

 

 

 

$

10,021

 

 

 

$

1,906

 

 

$

1,939

 

 

$

1,941

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Marin Software Incorporated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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,

 

 

June 30,

 

 

September 30,

 

(Unaudited; in thousands)

 

2019

 

 

2019

 

 

2019

 

 

2019

 

 

 

2019

 

 

 

2020

 

 

2020

 

 

2020

 

Gross Profit (GAAP)

 

$

7,637

 

 

$

6,547

 

 

$

6,161

 

 

$

5,848

 

 

 

$

26,193

 

 

 

$

3,315

 

 

$

2,690

 

 

$

2,473

 

Plus Stock-based compensation

 

 

125

 

 

 

142

 

 

 

127

 

 

 

139

 

 

 

 

533

 

 

 

 

94

 

 

 

129

 

 

 

(19

)

Plus Amortization of internally developed software

 

 

750

 

 

 

955

 

 

 

1,057

 

 

 

1,142

 

 

 

 

3,904

 

 

 

 

864

 

 

 

818

 

 

 

648

 

Plus Amortization of intangible assets

 

 

234

 

 

 

234

 

 

 

234

 

 

 

173

 

 

 

 

875

 

 

 

 

47

 

 

 

 

 

 

 

Plus Restructuring related expenses

 

 

6

 

 

 

 

 

 

 

 

 

90

 

 

 

 

96

 

 

 

 

(7

)

 

 

 

 

 

529

 

Gross Profit (Non-GAAP)

 

$

8,752

 

 

$

7,878

 

 

$

7,579

 

 

$

7,392

 

 

 

$

31,601

 

 

 

$

4,313

 

 

$

3,637

 

 

$

3,631

 

Operating Loss (GAAP)

 

$

(5,113

)

 

$

(4,477

)

 

$

(4,074

)

 

$

(6,180

)

 

 

$

(19,844

)

 

 

$

(4,415

)

 

$

(4,539

)

 

$

(4,255

)

Plus Impairment of goodwill

 

 

 

 

 

 

 

 

 

 

 

1,910

 

 

 

 

1,910

 

 

 

 

 

 

 

 

 

 

 

Plus Stock-based compensation

 

 

685

 

 

 

762

 

 

 

653

 

 

 

564

 

 

 

 

2,664

 

 

 

 

446

 

 

 

567

 

 

 

195

 

Plus Amortization of internally developed software

 

 

750

 

 

 

955

 

 

 

1,057

 

 

 

1,142

 

 

 

 

3,904

 

 

 

 

864

 

 

 

818

 

 

 

648

 

Plus Amortization of intangible assets

 

 

532

 

 

 

468

 

 

 

468

 

 

 

346

 

 

 

 

1,814

 

 

 

 

95

 

 

 

 

 

 

 

Plus Restructuring related expenses

 

 

163

 

 

 

66

 

 

 

 

 

 

268

 

 

 

 

497

 

 

 

 

43

 

 

 

 

 

 

1,051

 

Less Capitalization of internally developed software

 

 

(482

)

 

 

(388

)

 

 

(1,004

)

 

 

(182

)

 

 

 

(2,056

)

 

 

 

(540

)