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)
|
☐
|
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))
|
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
|
Exhibit No.
|
|
Description
|
99.1
|
|
|
|
Marin Software Incorporated
|
|
|
|
|
|
Date: August 8, 2019
|
|
By:
|
/s/ Bradley W. Kinnish
|
|
|
|
Bradley W. Kinnish
|
|
|
|
Chief Financial Officer
|
●
|
Expanded Amazon Sponsored Brand support with a new campaign creation tool and added algorithmic bidding capability.
|
●
|
Built a Linking Wizard for seamless onboarding of new Amazon Sponsored Products campaigns.
|
●
|
Released an Intelligent Tracking Prevention impact analysis tool, which will estimate missing conversion data on the Safari browser.
|
●
|
Added support for LinkedIn reporting, which helps marketers looking to leverage LinkedIn’s audience data to measure performance alongside other media channels, resulting in smarter cross-channel budget
allocation.
|
●
|
Launched Cross-Channel Audience Hub, which gives users the ability to automatically sync CRM Audience Lists across Google and Facebook within the same workflow.
|
●
|
Released Keyword-by-Device reporting in MarinOne, which provides a detailed understanding of mobile ad effectiveness.
|
●
|
Added bidding support for Apple Search Ads, which allows Marin customers to leverage a full-funnel view with Marin’s cross-channel reporting tool and allocate spend to the most efficient marketing channels.
|
●
|
Net revenues totaled $12.5 million, a year-over-year decrease of 12% when compared to $14.3 million in the second quarter of 2018.
|
●
|
GAAP loss from operations was ($4.5) million, resulting in a GAAP operating margin of (36%), as compared to a GAAP loss from operations of ($8.4) million and a GAAP operating margin of (59%) for the
second quarter of 2018.
|
●
|
Non-GAAP loss from operations was ($2.6) million, resulting in a non-GAAP operating margin of (21%), as compared to a non-GAAP loss from operations of ($6.3) million and a non-GAAP operating margin of
(44%) for the second quarter of 2018.
|
●
|
Cash, cash equivalents and restricted cash totaled $10.9 million as of June 30, 2019, as compared to $11.5 million as of December 31, 2018.
|
Range of Estimate
|
||||||||
|
From
|
To
|
||||||
Three Months Ending September 30, 2019
|
||||||||
Revenues, net
|
$
|
10.8
|
$
|
11.3
|
||||
Non-GAAP loss from operations
|
(3.5
|
)
|
(3.0
|
)
|
|
June 30,
|
December 31,
|
||||||
(Unaudited; in thousands, except par value)
|
2019
|
2018
|
||||||
Assets
|
||||||||
Current assets
|
||||||||
Cash and cash equivalents
|
$
|
9,886
|
$
|
10,210
|
||||
Restricted cash
|
971
|
1,293
|
||||||
Accounts receivable, net
|
9,983
|
12,906
|
||||||
Prepaid expenses and other current assets
|
3,773
|
4,642
|
||||||
Total current assets
|
24,613
|
29,051
|
||||||
Property and equipment, net
|
9,985
|
11,815
|
||||||
Right-of-use assets, operating leases
|
10,410
|
—
|
||||||
Goodwill
|
1,936
|
1,943
|
||||||
Intangible assets, net
|
938
|
1,938
|
||||||
Other non-current assets
|
1,549
|
2,045
|
||||||
Total assets
|
$
|
49,431
|
$
|
46,792
|
||||
Liabilities and Stockholders’ Equity
|
||||||||
Current liabilities
|
||||||||
Accounts payable
|
$
|
1,911
|
$
|
2,699
|
||||
Accrued expenses and other current liabilities
|
9,719
|
10,632
|
||||||
Operating lease liabilities
|
5,423
|
—
|
||||||
Total current liabilities
|
17,053
|
13,331
|
||||||
Operating lease liabilities, non-current
|
6,524
|
—
|
||||||
Other long-term liabilities
|
2,299
|
4,090
|
||||||
Total liabilities
|
25,876
|
17,421
|
||||||
Stockholders’ equity
|
||||||||
Common stock, $0.001 par value
|
7
|
6
|
||||||
Additional paid-in capital
|
297,903
|
295,116
|
||||||
Accumulated deficit
|
(273,322
|
)
|
(264,713
|
)
|
||||
Accumulated other comprehensive loss
|
(1,033
|
)
|
(1,038
|
)
|
||||
Total stockholders’ equity
|
23,555
|
29,371
|
||||||
Total liabilities and stockholders’ equity
|
$
|
49,431
|
$
|
46,792
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
(Unaudited; in thousands, except per share data)
|
2019
|
2018
|
2019
|
2018
|
||||||||||||
Revenues, net
|
$
|
12,476
|
$
|
14,251
|
$
|
25,924
|
$
|
29,653
|
||||||||
Cost of revenues
|
5,929
|
6,963
|
11,740
|
14,535
|
||||||||||||
Gross profit
|
6,547
|
7,288
|
14,184
|
15,118
|
||||||||||||
Operating expenses
|
||||||||||||||||
Sales and marketing
|
4,087
|
6,154
|
8,721
|
13,535
|
||||||||||||
Research and development
|
4,660
|
5,817
|
9,555
|
11,972
|
||||||||||||
General and administrative
|
2,277
|
3,766
|
5,498
|
7,143
|
||||||||||||
Total operating expenses
|
11,024
|
15,737
|
23,774
|
32,650
|
||||||||||||
Loss from operations
|
(4,477
|
)
|
(8,449
|
)
|
(9,590
|
)
|
(17,532
|
)
|
||||||||
Other income, net
|
532
|
377
|
1,072
|
672
|
||||||||||||
Loss before provision for income taxes
|
(3,945
|
)
|
(8,072
|
)
|
(8,518
|
)
|
(16,860
|
)
|
||||||||
Provision for income taxes
|
58
|
204
|
91
|
528
|
||||||||||||
Net loss
|
$
|
(4,003
|
)
|
$
|
(8,276
|
)
|
$
|
(8,609
|
)
|
$
|
(17,388
|
)
|
||||
Net loss per common share, basic and diluted
|
$
|
(0.65
|
)
|
$
|
(1.44
|
)
|
$
|
(1.42
|
)
|
$
|
(3.02
|
)
|
||||
Weighted-average shares outstanding, basic and diluted
|
6,201
|
5,767
|
6,074
|
5,751
|
Six Months Ended June 30,
|
||||||||
(Unaudited; in thousands)
|
2019
|
2018
|
||||||
Operating activities
|
||||||||
Net loss
|
$
|
(8,609
|
)
|
$
|
(17,388
|
)
|
||
Adjustments to reconcile net loss to net cash used in operating activities
|
||||||||
Depreciation
|
981
|
1,557
|
||||||
Amortization of internally developed software
|
1,705
|
1,943
|
||||||
Amortization of intangible assets
|
1,000
|
1,341
|
||||||
Loss on disposals of property and equipment and right-of-use assets
|
14
|
—
|
||||||
Amortization of deferred costs to obtain and fulfill contracts
|
881
|
1,145
|
||||||
Unrealized foreign currency gains
|
(15
|
)
|
(25
|
)
|
||||
Stock-based compensation related to equity awards and restricted stock
|
1,447
|
2,058
|
||||||
Provision for bad debts
|
(177
|
)
|
35
|
|||||
Net change in operating leases
|
(234
|
)
|
—
|
|||||
Changes in operating assets and liabilities
|
||||||||
Accounts receivable
|
3,103
|
2,438
|
||||||
Prepaid expenses and other assets
|
485
|
(1,199
|
)
|
|||||
Accounts payable
|
(777
|
)
|
(877
|
)
|
||||
Accrued expenses and other current liabilities
|
(217
|
)
|
(425
|
)
|
||||
Net cash used in operating activities
|
(413
|
)
|
(9,397
|
)
|
||||
Investing activities
|
||||||||
Purchases of property and equipment
|
(86
|
)
|
(200
|
)
|
||||
Capitalization of internally developed software
|
(870
|
)
|
(1,295
|
)
|
||||
Net cash used in investing activities
|
(956
|
)
|
(1,495
|
)
|
||||
Financing activities
|
||||||||
Proceeds from issuance of common shares through equity distribution agreement, net of offering costs
|
1,504
|
—
|
||||||
Payments of principal on finance lease liabilities
|
(682
|
)
|
(656
|
)
|
||||
Employee taxes paid for withheld shares upon equity award settlement
|
(190
|
)
|
(110
|
)
|
||||
Proceeds from employee stock purchase plan, net
|
80
|
165
|
||||||
Net cash provided by (used in) financing activities
|
712
|
(601
|
)
|
|||||
Effect of foreign exchange rate changes on cash and cash equivalents and restricted cash
|
11
|
(124
|
)
|
|||||
Net decrease in cash and cash equivalents and restricted cash
|
(646
|
)
|
(11,617
|
)
|
||||
Cash and cash equivalents and restricted cash
|
||||||||
Beginning of period
|
11,503
|
28,837
|
||||||
End of period
|
$
|
10,857
|
$
|
17,220
|
Three Months Ended
|
Year Ended
|
Three Months Ended
|
||||||||||||||||||||||||||
|
March 31,
|
June 30,
|
September 30,
|
December 31,
|
December 31,
|
March 31,
|
June 30,
|
|||||||||||||||||||||
(Unaudited; in thousands)
|
2018
|
2018
|
2018
|
2018
|
2018
|
2019
|
2019
|
|||||||||||||||||||||
Sales and Marketing (GAAP)
|
$
|
7,381
|
$
|
6,154
|
$
|
5,296
|
$
|
4,594
|
$
|
23,425
|
$
|
4,634
|
$
|
4,087
|
||||||||||||||
Less Stock-based compensation
|
(240
|
)
|
(271
|
)
|
(181
|
)
|
(265
|
)
|
(957
|
)
|
(180
|
)
|
(205
|
)
|
||||||||||||||
Less Amortization of intangible assets
|
(213
|
)
|
(184
|
)
|
(130
|
)
|
(131
|
)
|
(658
|
)
|
(64
|
)
|
—
|
|||||||||||||||
Less Restructuring related expenses
|
(497
|
)
|
(48
|
)
|
(113
|
)
|
(169
|
)
|
(827
|
)
|
(157
|
)
|
(66
|
)
|
||||||||||||||
Sales and Marketing (Non-GAAP)
|
$
|
6,431
|
$
|
5,651
|
$
|
4,872
|
$
|
4,029
|
$
|
20,983
|
$
|
4,233
|
$
|
3,816
|
||||||||||||||
Research and Development (GAAP)
|
$
|
6,155
|
$
|
5,817
|
$
|
5,471
|
$
|
5,007
|
$
|
22,450
|
$
|
4,895
|
$
|
4,660
|
||||||||||||||
Less Stock-based compensation
|
(339
|
)
|
(314
|
)
|
(339
|
)
|
(406
|
)
|
(1,398
|
)
|
(281
|
)
|
(269
|
)
|
||||||||||||||
Less Amortization of intangible assets
|
(237
|
)
|
(234
|
)
|
(234
|
)
|
(233
|
)
|
(938
|
)
|
(234
|
)
|
(234
|
)
|
||||||||||||||
Less Restructuring related expenses
|
(115
|
)
|
—
|
—
|
—
|
(115
|
)
|
—
|
—
|
|||||||||||||||||||
Plus Capitalization of internally developed software
|
693
|
602
|
398
|
436
|
2,129
|
482
|
388
|
|||||||||||||||||||||
Research and Development (Non-GAAP)
|
$
|
6,157
|
$
|
5,871
|
$
|
5,296
|
$
|
4,804
|
$
|
22,128
|
$
|
4,862
|
$
|
4,545
|
||||||||||||||
General and Administrative (GAAP)
|
$
|
3,377
|
$
|
3,766
|
$
|
2,921
|
$
|
3,049
|
$
|
13,113
|
$
|
3,221
|
$
|
2,277
|
||||||||||||||
Less Stock-based compensation
|
(245
|
)
|
(273
|
)
|
(195
|
)
|
(164
|
)
|
(877
|
)
|
(99
|
)
|
(146
|
)
|
||||||||||||||
Less Amortization of intangible assets
|
(3
|
)
|
—
|
—
|
—
|
(3
|
)
|
—
|
—
|
|||||||||||||||||||
Less Restructuring related expenses
|
(111
|
)
|
(36
|
)
|
(11
|
)
|
—
|
(158
|
)
|
—
|
—
|
|||||||||||||||||
General and Administrative (Non-GAAP)
|
$
|
3,018
|
$
|
3,457
|
$
|
2,715
|
$
|
2,885
|
$
|
12,075
|
$
|
3,122
|
$
|
2,131
|
Three Months Ended
|
Year Ended
|
Three Months Ended
|
||||||||||||||||||||||||||
March 31,
|
June 30,
|
September 30,
|
December 31,
|
December 31,
|
March 31,
|
June 30,
|
||||||||||||||||||||||
(Unaudited; in thousands)
|
2018
|
2018
|
2018
|
2018
|
2018
|
2019
|
2019
|
|||||||||||||||||||||
Gross Profit (GAAP)
|
$
|
7,830
|
$
|
7,288
|
$
|
6,694
|
$
|
9,665
|
$
|
31,477
|
$
|
7,637
|
$
|
6,547
|
||||||||||||||
Plus Stock-based compensation
|
204
|
172
|
160
|
203
|
739
|
125
|
142
|
|||||||||||||||||||||
Plus Amortization of internally developed software
|
957
|
986
|
928
|
903
|
3,774
|
750
|
955
|
|||||||||||||||||||||
Plus Amortization of intangible assets
|
237
|
233
|
234
|
234
|
938
|
234
|
234
|
|||||||||||||||||||||
Plus Restructuring related expenses
|
139
|
—
|
37
|
—
|
176
|
6
|
—
|
|||||||||||||||||||||
Gross Profit (Non-GAAP)
|
$
|
9,367
|
$
|
8,679
|
$
|
8,053
|
$
|
11,005
|
$
|
37,104
|
$
|
8,752
|
$
|
7,878
|
||||||||||||||
Operating Loss (GAAP)
|
$
|
(9,083
|
)
|
$
|
(8,449
|
)
|
$
|
(21,734
|
)
|
$
|
(2,985
|
)
|
$
|
(42,251
|
)
|
$
|
(5,113
|
)
|
$
|
(4,477
|
)
|
|||||||
Plus Impairment of goodwill
|
—
|
—
|
14,740
|
—
|
14,740
|
—
|
—
|
|||||||||||||||||||||
Plus Stock-based compensation
|
1,028
|
1,030
|
875
|
1,038
|
3,971
|
685
|
762
|
|||||||||||||||||||||
Plus Amortization of internally developed software
|
957
|
986
|
928
|
903
|
3,774
|
750
|
955
|
|||||||||||||||||||||
Plus Amortization of intangible assets
|
690
|
651
|
598
|
598
|
2,537
|
532
|
468
|
|||||||||||||||||||||
Plus Restructuring related expenses
|
862
|
84
|
161
|
169
|
1,276
|
163
|
66
|
|||||||||||||||||||||
Less Capitalization of internally developed software
|
(693
|
)
|
(602
|
)
|
(398
|
)
|
(436
|
)
|
(2,129
|
)
|
(482
|
)
|
(388
|
)
|
||||||||||||||
Operating Loss (Non-GAAP)
|
$
|
(6,239
|
)
|
$
|
(6,300
|
)
|
$
|
(4,830
|
)
|
$
|
(713
|
)
|
$
|
(18,082
|
)
|
$
|
(3,465
|
)
|
$
|
(2,614
|
)
|
|||||||
Net Loss (GAAP)
|
$
|
(9,112
|
)
|
$
|
(8,276
|
)
|
$
|
(21,494
|
)
|
$
|
(2,362
|
)
|
$
|
(41,244
|
)
|
$
|
(4,606
|
)
|
$
|
(4,003
|
)
|
|||||||
Plus Impairment of goodwill
|
—
|
—
|
14,740
|
—
|
14,740
|
—
|
—
|
|||||||||||||||||||||
Plus Stock-based compensation
|
1,028
|
1,030
|
875
|
1,038
|
3,971
|
685
|
762
|
|||||||||||||||||||||
Plus Amortization of internally developed software
|
957
|
986
|
928
|
903
|
3,774
|
750
|
955
|
|||||||||||||||||||||
Plus Amortization of intangible assets
|
690
|
651
|
598
|
598
|
2,537
|
532
|
468
|
|||||||||||||||||||||
Plus Restructuring related expenses
|
862
|
84
|
161
|
169
|
1,276
|
163
|
66
|
|||||||||||||||||||||
Less Capitalization of internally developed software
|
(693
|
)
|
(602
|
)
|
(398
|
)
|
(436
|
)
|
(2,129
|
)
|
(482
|
)
|
(388
|
)
|
||||||||||||||
Net Loss (Non-GAAP)
|
$
|
(6,268
|
)
|
$
|
(6,127
|
)
|
$
|
(4,590
|
)
|
$
|
(90
|
)
|
$
|
(17,075
|
)
|
$
|
(2,958
|
)
|
$
|
(2,140
|
)
|
Three Months Ended
|
Year Ended
|
Three Months Ended
|
||||||||||||||||||||||||||
|
March 31,
|
June 30,
|
September 30,
|
December 31,
|
December 31,
|
March 31,
|
June 30,
|
|||||||||||||||||||||
(Unaudited; in thousands, except per share data)
|
2018
|
2018
|
2018
|
2018
|
2018
|
2019
|
2019
|
|||||||||||||||||||||
Net Loss (Non-GAAP)
|
$
|
(6,268
|
)
|
$
|
(6,127
|
)
|
$
|
(4,590
|
)
|
$
|
(90
|
)
|
$
|
(17,075
|
)
|
$
|
(2,958
|
)
|
$
|
(2,140
|
)
|
|||||||
Weighted-average shares outstanding, basic and diluted
|
5,736
|
5,767
|
5,787
|
5,841
|
5,783
|
5,945
|
6,201
|
|||||||||||||||||||||
Non-GAAP net loss per common share, basic and diluted
|
$
|
(1.09
|
)
|
$
|
(1.06
|
)
|
$
|
(0.79
|
)
|
$
|
(0.02
|
)
|
$
|
(2.95
|
)
|
$
|
(0.50
|
)
|
$
|
(0.35
|
)
|
|||||||
Three Months Ended
|
Year Ended
|
Three Months Ended
|
||||||||||||||||||||||||||
|
March 31,
|
June 30,
|
September 30,
|
December 31,
|
December 31,
|
March 31,
|
June 30,
|
|||||||||||||||||||||
(Unaudited; in thousands)
|
2018
|
2018
|
2018
|
2018
|
2018
|
2019
|
2019
|
|||||||||||||||||||||
Net Loss
|
$
|
(9,112
|
)
|
$
|
(8,276
|
)
|
$
|
(21,494
|
)
|
$
|
(2,362
|
)
|
$
|
(41,244
|
)
|
$
|
(4,606
|
)
|
$
|
(4,003
|
)
|
|||||||
Depreciation
|
798
|
759
|
628
|
473
|
2,658
|
499
|
482
|
|||||||||||||||||||||
Amortization of internally developed software
|
957
|
986
|
928
|
903
|
3,774
|
750
|
955
|
|||||||||||||||||||||
Amortization of intangible assets
|
690
|
651
|
598
|
598
|
2,537
|
532
|
468
|
|||||||||||||||||||||
Provision for (benefit from) income taxes
|
324
|
204
|
96
|
(38
|
)
|
586
|
33
|
58
|
||||||||||||||||||||
Impairment of goodwill
|
—
|
—
|
14,740
|
—
|
14,740
|
—
|
—
|
|||||||||||||||||||||
Stock-based compensation
|
1,028
|
1,030
|
875
|
1,038
|
3,971
|
685
|
762
|
|||||||||||||||||||||
Capitalization of internally developed software
|
(693
|
)
|
(602
|
)
|
(398
|
)
|
(436
|
)
|
(2,129
|
)
|
(482
|
)
|
(388
|
)
|
||||||||||||||
Restructuring related expenses
|
862
|
84
|
161
|
169
|
1,276
|
163
|
66
|
|||||||||||||||||||||
Other income, net
|
(295
|
)
|
(377
|
)
|
(336
|
)
|
(585
|
)
|
(1,593
|
)
|
(540
|
)
|
(532
|
)
|
||||||||||||||
Adjusted EBITDA
|
$
|
(5,441
|
)
|
$
|
(5,541
|
)
|
$
|
(4,202
|
)
|
$
|
(240
|
)
|
$
|
(15,424
|
)
|
$
|
(2,966
|
)
|
$
|
(2,132
|
)
|
|||||||