MRIN - Earnings call transcript Q1 2018 | Marin Software Incorporated

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Operator

Greetings, and welcome to the Marin Software First Quarter 2018 Financial Results Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Brad Kinnish, Chief Financial Officer from Marin Software. Thank you. Mr. begin. may you Kinnish,

Brad Kinnish

afternoon, earnings welcome is conference Marin's Good first Brad Marin quarter CFO. XXXX call. everyone, you. to and Software's Kinnish, Thank My name

should Marin's today release, earnings the time By Chris me short crossed a Lien, a Joining now, of is which you ago. have wire our received copy CEO.

for find the need Call recorded participants version. our a release, purposes audio hours. If is few electronic this playback of you call please go section within website this be advised that that an the copy to of conference a the of investors.marinsoftware.com recording to available made and are Investor being will Relations on

our the Exchange statements about that These we discussion historical within include investments to to trends include development today Securities capabilities I'd for Act forward-looking may our results. XXXX duty statements growth, and outlook XX, on will business statements of results statements of XXXX, future any product We efforts, Act the May technology, and of that in impact disclaim and product to product Before suggest of begin, as financial them. XXXX. ability progress Securities to return these note strategy, and make update and our forward-looking our meaning like business, expectations about the of

on call well SEC. entitled in our calculations to forward-looking the report most in contains GAAP as to non-GAAP most to With the actual For you that from reconciliation more statements measures in earnings information XXXX the in available certain Risk Form these regarding or risks our of quantitative measures those release. be with other Chris. in XX-K are these filings accordance the made general, Factors financial from me our different presentation and different our uncertainties differ business financial calculated the materially results that, directly these measures from refer or and financial GAAP, comparable could other first by cause A and quarter over relating other sections let and recent performance that This we companies. may with is measures turn risks expressed to financial implied measures as to

Christopher Lien

everyone, outlook Brad Thank Product Brad. the initiatives for of additional shareholder the will and I'll you provide afternoon, and the maximize returned cofounder our the Since second and Good with update Wister our return growth call for and provide to joining then thank Walcott, remains Marin at you, quarterly review our our has goal an role growth. to my to detail EVP to and and quarter CEO on of I to quarter. our results return XXXX, and Technology, along on end August Marin to value. today. been

provide customers, focused are seek we our they place an of discussed, will investments. and have and putting to meeting we return world's to these position As I'm growth. the we Working partners, grow from to to returns been Marin that update our members leading we've their online on advertising the various advertisers in initiatives believe their and the needs pleased as team agencies, optimize on activities. with

return update continue top the growth today's we financials While quarters. be Marin coming will making are challenged, the highlight line progress our in to to to

was prior QX guidance the from release, but still of in above at our of million, high came earnings $XX.X revenues which today's announced As in end the $XX.X year. million, down

balance $XX.X million. the end QX Our cash of was at

agencies the of bang as dollars brands strategically a deliver leading fail the take to to QX, leadership With want these performance I and that regarding spend advertisers core for price. publishers to more will compelling will to customer's marketing of believe highlight value. shareholder The we where the right journey a be and at as require positioning. embrace for going changes. right pursuing in devices Marin's able to at their into and digital journey the commerce can that who online will determine specifics best who goes to a and lose advertising Brands brands those to the the a in and ally we right show vision online, to agencies embrace their and strategic ad competency integrate advantage source key positions future online seek increase that delivers The buck. Before time, meaningful help point online them across the competitive moment those are of both solution an channels,

which XX% "Half Wanamaker, and solve money their John today leveraging modern to command advertising deliver trouble spend Advertisers XX% of I time on wasted. the leading As than more half." Google the Wanamaker's know is, Internet and a Marin's platform publishers. don't the online dollars. is operate for where superior marketer, important advertising famous advertising of channels performance than I dilemma commented, and mission Facebook our efficiency across all is all to The most and merchant, world more in

of seeks thrive is connect enable Marin's approach optimize from the to As Google product prospects that advertising. they and connect gardens for buying to the of best garden, in particular walled publishers advertising in leading manage measure, ally evaluation be to to management of the a ever best-in-class turn an more online an for spend world's may the importance an of publishers the may and sets can doesn't another willing where and Yet as online wherever programs guide a students to We buying are time their their and their look of strategy, actions. over their see and incremental as marketers the tell advertisers to how world future may unified investments publishers in and believe performance publishers the omnichannel grade are to to point online role, us live are, and layers your to embrace need will dominate and the more half understandably can to one for interest number advertiser-focused to a play advertising these digital if important. a Facebook becomes We marketers the of publisher key online in homework, of third-parties on on a or The yet to agencies performers properties, surprising advertiser. same advertising spend not advertising referees starting to publisher which in maximize objective, haircut. platform ask not Each unlikely the one media platform where barber growing world, the own tool meet Amazon, a it's seek don't marketers an and Marin's of searches, media their players they independent tools have leading budget all to where tools. for not want than tagline walled an priorities. When another respective measure advertiser shift customers or dollars one are those positions publisher. digital

the continue In strategy advertisers We and and the premium time, themselves their among to to publishers, Marin data agencies brands the believe fact, growth. to don't of their will to need interoperate performance. this tools the connections Facebook return put publisher most independent Marin's At for a programs. to advertising on sustainable among major Amazon cross-channel API unwilling we as and open, benefit advantages share leading and lead are competitive to serve same who and transition out period ride digital position world's and of Google,

the informed vision to our will this new be as remains and ahead inertia Over cross-channel approach highlighted the rewarded uniquely independent brands is believe growing advertising leadership, demand, thought category many state. Marin to technology on our but lack time, with who open, structure, status this positioned this for I we of its quo. As become limitations meet last and organization agencies call, we online management will the from Marin of new evolves and suffer standard, believe leadership

direct Our incremental opportunities coming in past build marketing new and XX return both Better engagement for In a team, customer-success marketing sales to that and of indicator with Also, better is social, delivery good our our market. in about which have X of success, in the using more past direct of and measurable our monthly we recurring our search deals our increased sales growth which areas: execution; on vision expect quarter, product to on customer few bookings In efforts months. efforts resonate focused based and to have revenue program. have customer-facing to included our we the is execution; brand our months, Marin's lead the value, innovation. beginning produced more in to is progress continued X relationships,

intent search adoption Marin's continue We and see ongoing of to offerings. TruePath

value and the as improving Our retention Marin's expanding efforts are to focused Current adoption derive platform. that can using on to higher on social, adoption of highlighting Marin's from leads both efforts for bidding platform advertisers and both a renew. bidding search likelihood meaningfully Marin's focused by of use are

in areas these algorithm of efforts. product optimization many New guides the our social dynamic clustering, of innovation audience and budget

to recurring our representing search about revenue. are management. I'm that functionality. Marin share greater in product-based social, pleased progress X also next-generation open, XX driving past visits approximately quarter, advertising ads We in SmartFeed excited representing for call and our leveraging share auto-segmentation product, for adoption am platform that now of the X, In and we also of to boarded platform Marin's both for to on XX% our cross-channel support Marin X, monthly independent I we customers store

representing to Marin's to Marin we launch metrics which customizable QX, and with social on to envisions key the dashboards, access close our a and debuted new customers customers view. of advertisers single monthly half campaign current by the preparing search past end all In the to X of approximately our recurring end quarter, XX% plan are in of QX, running cross-channel Marin provide X of We by revenue.

also have quarter, from to reporting, campaigns that advertising. advertisers view unified We launched social for am which enables seen and interest Amazon publishers in cross-channel growing better across I and past prospects single to share also a in search all we customers insights. the pleased see in

key to Amazon with a represented In recent leading over-the-counter a support fact, Marin's products. company ability a pharmaceutical on renewal its in component for advertising

invest Amazon and efficiency value will for further brands. performance Marin's cross-publisher and to continue for in We deliver our cross-channel, ads enhance support leading to

compliance our harmonize our strengthen with to and solutions the issue, to EU's Marin's provide data Regulation, XX, for Data not Before call over expect its with of want rule been protection part XXXX. GDPR GDPR, announced General and May our support, With Protection impact Marin's functionality implemented and this update the no European Union. ability efforts, materially Marin I effect Google have across DCM its approach data this tested will since customers' last into platform. preparing user referred on general this, intended turn to continue on for which This regulations privacy week to using leverage as GDPR to Consistent integration to DoubleClick prior revised Brad, Marin customers provide to of the goes has to we enables readiness statements globally, longer I Related IDs regulation as to on third-parties. DoubleClick's is Google's with an that a does Marin sharing Google's as new revenue XXXX. as supported part a that and

independent about to one the As on Facebook now of Marin engage third-party an or or that leading these that publisher vision, cooperate to in can course, Amazon is publishers Google, to their the needs and it brands are leaves thinks as such understand future. silos customers, unlikely deliver with of group no for important of benefit particularly this advertisers. connect This, the of individual to given looking

adopted have top both has Marin of platform and publishers Marin's in publishers. calls, mindset tools, we and highlighted our on a building As with value recognizing will work of that interoperating the our with the customers their in past

and future product independent replicating your Focusing open, approach. Marin drive publisher commitment resides to the ally replacing to tools shifts this in add brands serve performance Marin's and on and present in our can where value for focus and as cross-channel efficiency digital. from

opportunity tremendous And in various foundation our discussed continues for to financial for best and challenged, first our I has initiatives that lie highly our for Marin outlook Brad our is days have I ahead. progress with And past, differentiated results continue quarter. return as growth, Although a review revenue believe lay good our second the quarter our outlook a the to marketers. to to making on the that leading be Marin now will and offering

Brad Kinnish

Chris. our an you, I'll upcoming and I'll results Thank begin a our income statement. our then review share provide for overview quarter. with forecast of of the

our of million revenues versus 'XX. $XX.X QX high For generated Marin $XXX,XXX. revenues, end the first leading 'XX down the for the XXXX, QX guidance quarter by in of were XX% quarter

business, marketing during our Our remains largest channel the which quarter. experience to pressure continued search

our new decline. high the and quarter, social in strong search exhibited bookings customer driven which to remained the reduced spend led churn an overall during within to and exceeded Although increased QX, were churn business customer growth by which year. our was prior bookings, business Meanwhile, as compared customer

we social when up addition, our than to In was when sequentially compared and quarter cross-channel more the at and look the customers, for was revenue prior from QX. search XX% also up year,

In terms geographic XX% in generated direct split of generated our revenues agencies. were revenues XX% internationally. of of direct quarter, and And first via XX% were terms for customer in XX% the and U.S. relationships versus our from of generated agency,

Moving on the operating results. to

results. comments be focus non-GAAP financials, non-GAAP My Our reconciliation financials, will found earnings including in now a to our on GAAP release. primarily our of can

For gross of of XX% a non-GAAP profit resulting to the gross was non-GAAP quarter a during of the margin quarter, XXXX. margin gross $X.X million, first compared non-GAAP first in XX%

margin first was $X the loss operating guidance non-GAAP of delivered first negative of than was million. operating of the our first for for a margin a operating For of $X million loss XX%, which XXXX. a better quarter to $X quarter, of compared The the quarter million non-GAAP million XXXX. loss by as $X.X during compared to quarter negative We XX% the non-GAAP

This upon loss high X.X of share. average beat by non-GAAP For in weighted of shares. end XXXX, EPS the per count share per $X.XX the $X first million, of guidance of loss resulting a quarter million share our net was $X.XX based a

split-adjusted purposes, comparison XXXX. share of X.X count we a average per and generated loss weighted $X.X in of quarter non-GAAP million For net first reverse share of shares million loss upon EPS of $X.XX non-GAAP a based the

cash with of cash In $XX.X million and balance $X.X equivalents, sheet, burn the of cash the terms reflects quarter. ended quarter during our of we million which

forecast our Our amongst well cash to was burn as in and and areas, payments. reflects, our related outlay line severance cash as internal losses other bonuses with annual operating

positive plan Our period. outlays change against January our of operating in as announcement costs cash to provided to offset during an better during have reduce XX, inflow a substantially the capital the working cash expenses we Further, on completed served restructuring with designed and to align quarter our the revenues.

XX% and our $XXX,XXX severance-related As global head by count restructuring, part of this reduced of primarily we incurred approximately costs.

we $X $X restructuring, to million. this expect of result of a As annualized savings million

operate with financial are and narrow discipline We and continuing look operating mindful to to burn will of cash losses throughout XXXX.

outlook. our to on moving Now

During QX, performance. to see were encouraged bookings we improved

remainder focused of our For we to will strategies the as to financial execution performance. QX continue customer retention key as the and bookings XXXX, on be well improve as

retention will and launch benefit expect a of X be our efforts of our the over We Marin sales XXXX. to remainder

measures guidance. provide both as Going and We investors. forward, operating will to metrics view loss X we the key revenue these helpful most

non-GAAP second expect of quarter revenues to longer no the for million in that result, range With mind, provide thank going of to With expected XXXX, I call. $XX.X we XXXX guidance of the $X.X be to and will loss million, concludes range want be for a non-GAAP This forward. your that, million. $X.X As to you loss per in quarterly QX time. is share our on million we the to $XX conference in operating

End of Q&A

today's teleconference. concludes This

participation. this time. may You at lines Thank your you your for disconnect

Marin Software (MRIN) 10 May 182018 Q1 Earnings call transcript