MRIN - Earnings call transcript Q1 2020 | Marin Software Incorporated

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Operator

Good day and welcome to the Marin Software First Quarter 2020 Financial Results Conference Call. All participants will be listen-only mode. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Bob Bertz. Please go ahead.

Bob Bertz

you. Thank and Software's everyone, earnings quarter to call. conference welcome afternoon, first Marin XXXX Good Bob Marin's Bertz, me is name My I'm Chris Marin's today CFO Lien, CEO. is joining and

the our short time advised The should a have our By obtained also ago. which Call website now, Wire be purposes this copy Relations at release on you investors.marinsoftware.com. the is playback of the call the our of of crossed earnings within Investor for conference few be received and audio made on can release, are recording website will that recorded being that hours. participants available section a

Before within the Act of we discussion statements the our meaning that XXXX. of Securities Exchange Act like begin, and to the note XXXX forward-looking today will include Securities I'd of

about forward-looking under and trends business global COVID-XX about to of results expectations may Protection retention our include improve These strategy, our effect ability that potential including of loan outlook statements Paycheck receipt our our the the our statements new business, the cash growth; historical development of and the to as of customer funds financial to and any expectations our them. in XXXX for pandemic, Program, the business for on and disclaim investments resources; progress and results. duty product update technology, impact make efforts, our expenses product and these statements bookings product return manage to capabilities, suggest We and future ability May Xth,

evolving pandemic uncertain impact this to at predict the Note difficult that to COVID-XX landscape. business our time the extent particularly is the rapidly may which and global considering

as in business in well reports most Form recent our Form Factors sections you our Risk materially these those actual risks XX-K XX-Q as these as forward-looking results the other as risks expressed general, and our or For to uncertainties that and SEC and in regarding could other on more to relating entitled well filings. statements implied to cause refer from differ information we

financial be financial performance in other certain earnings from to quarter GAAP in non-GAAP contains directly is also release. financial or presentation measures are with measures reconciliation A from companies. different these our measures by different of the calculations measures comparable most This may the that financial measures accordance available similar and first quantitative calculated GAAP used XXXX

let that, over With to the me Chris. turn call

Chris Lien

thank outlook you, everyone quarter. Thank an and Bob. additional provide first the to joining Bob second call provide then on our initiatives Good growth. review for our afternoon today. the for and I'll detail our you Marin on and our update to will quarter return quarter

Marin remain have we discussed shareholder to before, As on focused maximizing value. we returning growth and

platform is MarinOne. their Our optimize returns plan platform advertising enable investments. a agencies leading We from management advertising and call cross-channel to achieve this to this grow to delivering online on and focused their brands

us growth to under Marin of be is any return the to quarters. results taking efforts have Our longer At continue pressure. the will show we preferred revenues believe our strategy in are that would and to our initiatives our coming that and sound time, than to continue same

yet not sufficient return are there to signs if to some even encouraging Marin Additionally, present growth.

compelling deliver is view follow. product a that as will market, more we results good our Our then to

marketer. development to the product substantial of we in a meet the such, to better needs invest As amount digital continue

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

for our loss beat also QX. guidance We for forecasted operating our

our $X.X was the million, total to cash costs. Our QX end of reflecting commitment manage at ongoing balance

We with and will our to products continue investments savings. cash used our monitor closely, balancing cost

economic it and which that with Bob remotely a and is health for are entire we first a the COVID-XX, global is both world emergency call earnings as me conducting This and grapples disrupter.

late until in significant financial As arise effects were quarter, COVID-XX. significantly the did Marin's by first results impacted quarter first COVID-XX not from not

significant are felt second our effects more in quarter. now being However,

to business be XX% COVID is our in verticals to although see spend in pre-COVID pre-COVID point, down, from anticipate that remains low we overall down we've Overall, some as encouraged expected about begun our recovery business QX spend below to from levels. most level. share our even I'm

accountability Given our acquire the the trackability platform as that and to advertising drive Marin believe of and customers to customers. of spend; digital well-positioned to use coronavirus impact revenue weather we is our

verticals on As certain one ecommerce person. as an might in has take seen impact of those on parts spending. activities time, in well the travel guess, as heavily COVID fallen we've increase vertical place At the of including most that same the

is on non-digital COVID overall believe certain the a which conservative verticals more a increase in in that relative level. a we spend to uncertainty, budget in than spend. reduction negative business investment the to Overall, Marin's basis, better leads due advertising advertising On should business fare digital and

Marin is world. for operating remotely now around given shelter-in-place the office the various orders locations

needed. and if indefinitely believe can we health we priority operate Our team on that is our remotely

Fortunately, our our our able is globally advance that, MarinOne. to to and team continue support without customers disruption especially to products

leaving Amazon the And to well gardens Marin and do we Google, and Facebook, journey. platform be prospects a range diverse points need have play to for walled agencies. their the in engage as a the of channels, and their cross-channel path to purchase. we Marketers to have highlighted, digital online this an dots world's and own. their brands on Customers As to together, not ally before, on devices, seeks connect discussed in publishers leading customer all brands of

to acquire advertisers and manage, drive customers, help to results, revenue. Marin to these their online investments optimize advertising measure, maximize and their to

focus understandably that publishers and a supplement capability from Marin advertising publisher. the performance layer to to an ads provide performance. of independent from their particular on advertiser objective money serves on spend given more as a to measurement enable how to Tools

informing previous you a dollars toolset or that can advertiser on As discussions, we've marginal a imagine in his platform, be her highlighted publisher invested should competitor's an

agencies time, ahead we our shared as online this evolves who not the state. remains make Over demand, this advertising are its growing to but will new yet before, rewarded standard this believe ready category new will and uniquely approach positioned be Marin have become change. vision is Marin leadership brands and management many Marin's to as meet we the of for that to

As and for select in their agencies we're product invest reasons we compelling brands to more innovation, Marin. creating

We invest continue in the to platforms. cross-channel development of adoption next and generation our advertising MarinOne,

now is MarinOne. focus that Our customers spend so our in day-to-day activities majority sufficient of on adding their functionality the can

including During custom enhancements strategy a wizard side the and complete past Google. to we for MarinOne released MarinOne, quarter, panel, column, bid linking several

grid. Marin's customers and to as functionality, is We in their provided control also added campaigns more enhancements meta-tagging flexible support than prominence additional the the metrics, These Marin's of give transparency device's which well dimensions, an as for tools. historical is what publisher data

made dashboards in advertisers their significant track robust our of our social to social performing functionality complement Facebook to in provides enhanced the part MarinOne, to how investments campaigns capability enable KPI. As Marin we pacing its that the against advances in are tools.

are based and able expected daily shift their expected them project's timeframe, their target alongside data better to Customers to gain current insight more allowing on into campaigns. performing into results money

Explore. for Search, support and additional Instagram added also placements, including Facebook Marketplace, Marin

competitor COVID-XX Facebook social more advertisers As time placement new with advertising. areas on that placements entirely new of overrun offer spend media in lockdown, during the these not options are people

within or social rules they ROIs, budgets such day, their automated in as expanded or the are that advertisers for allowing also throughout tasks within offload checking to there KPIs. ROAs MarinOne, they that regularly CPAs, targets campaigns We are perform

day, continue In to lower bid e-commerce, Dayparting XX-minute and for launch Amazon-sponsored Dayparting support higher advertising, enables down invest we to to the throughout product our Amazon and if in campaigns. intervals desired. for advertisers

for to from widespread In as we take activity, This on daypart addition, by have the weekdays bid useful is online shelter-in-place example, which work day new also more all patterns to during especially aggressively week, advertisers home impacted shopping can campaigns behavior. versus of adjust weekends. scheduled functionality,

use for campaigns. performance and quarter, introduced In full campaign and time Amazon can automated of and more sites, management for Amazon functionality brands display bulk each campaign them the past now advertisers also savings. advertising bidding Amazon-sponsored we giving the Marin sponsored

with Amazon marketing into Marin Amazon outside which work shopping participants I insights mentioned quarter, their the how As last contribute in beta, investments Amazon. on to provides continues attribution activity advertisers with to of

conversions channels a the how them investments. Facebook, Google, Brands many giving Amazon, advertising those on and accurate on ROI of on other understanding occurred more and see

analytics Title, that to past quarter campaigns This our support to Product advertising, action investments Smart ongoing to Google advertising. quarter or Marin's Amazon e-commerce. information, reporting also Shopping campaign last recall marketer shared that Walmart and improved his of added which her gives addition for display insight we you'll Marin for expand and into In now more support also product including the we

seeking. consumers seen has that shopping no may announcement more at of listing, they're products You adding placements including cost the its have Google the assist that to find expanded to recent

post past Google enables search maximum by to of the to Product games Feed Marin's year. news Google functionality Ads for product as well Smart these in Amazon see We wants Amazon marketer as coverage. Dynamic offset both search products to ads the Facebook's seek to Shopping, product is and a

the that Marin third-party current our customers Marin forefront cookies required to to Marin latest we the the with This domains stay solution. of means upgraded can multiple disruption to site. measure same rapidly help continues at supports landscape. quarter, privacy which to to Chrome's past invest our Tracker changing In debuted offering, cross-site advertisers across requiring their with Tracker updates, label minimal customers privacy to where continue

of recent our COVID-XX, challenges and continue in to Marin shared a believe additional the I've and has I As tremendous the burden despite that current opportunity. past,

will and And outlook XXXX. second our for financial now, the results our quarter Bob of review first quarter

Bob Bertz

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

our when the but For in the for the of generated first to and revised end of or agreement million Google. in resulting down our at the business for guidance recognition $X.X total impact late the of audience of XX% of XXXX, revenue XXXX quarter when with perfect Marin the timing XXXX high quarter our first for XX% adjusted quarter, sale revenue strategic under revenue from revenue the compared

we for to removed after contract year. signed the with Google strategic agreement During that second Google terminate to right our amendment existing an the agreement the first quarter, the

the includes third our from a expected This the total revenue the as of agreement revenue that now amendment it total over recognizing year. the now year includes contract contract over expected increased term life the contract additional the we longer and are increases third

in the recognition under revenue recognized XXXX. period the first approximately $XXX,XXX, XXXX quarter effect as compared revenue quarter the longer agreement reducing have by first new the The of of to

high adjustments, would beat the than of accounting approximately lower by of as $XXX,XXX, anticipated this for result Absent a our we churn. revenue guidance have end XXXX primarily QX

began on impact our COVID-XX the half in first as result a during pandemic, revenue Although see spend, not the to March advertising a quarter the significant. of second reduction we was of

XX% and U.S. for revenue shift international. first quarter geographic was XX% Our the in approximately

to on operating Moving balance the and our results sheet.

a today. financial in a As our GAAP and issued of financial non reconciliation our our statements be earnings found to reminder, can earlier GAAP measures release

in million and non-GAAP the was of the Our revenue of the for impact high would quarter $XXX,XXX of which includes $X.X of our Google The $X.X the $XXX,XXX also high XXXX and end XXXX. under adjustment without million beat the in agreement, first both the our was timing guidance $XXX,XXX. guidance we QX XXXX of have recognition operating operating than loss approximately end better loss by

quarter, we to steps overall take continue meaningful cost the reduce During to our structure.

ended expenses year were headcount down our year-over-year a quarter ago. total XX% and result, with a a XXX we non-GAAP XXX operating on versus As the

seek align to breakeven. continue our to in will as we with operate at We revenue XXXX costs

in sheet, balance the of primarily was with decrease loss. cost ended total decrease in our cash from net and $X.X The software, $X.X balance. capitalized cash of our the terms the cash million In accrued representing to balance of attributable a in million, QX we reduction liabilities, a a of quarter net

time to the workforce SBA To and activities, pandemic business anticipated our continue and uncertainty loan our the applied we Protection under recent of our $X.X this Paycheck help to us a Program. of COVID-XX and for on maintain effects planned million business respond the during

the but been we received loan. yet has not funds this approved, application from have Our

receive We quarter the XXXX. second expect in the of to proceeds

Moving on to outlook. our

the in expected to is to be million. to and to operating of loss $X.X revenues of range $X million expect million in non-GAAP our the $X.X we $X.X range XXXX, QX be For million

the XX% of of of our the Our our guidance anticipated results financial a approximately quarter, pandemic including for reflects our current reduction on impact estimate of pre-COVID-XX from revenue the outlook. second COVID-XX

XXXX you today. again we and concludes for to our your call QX look updating Thank This forward time you our call. for during earnings

End of Q&A

now you today's The conference concluded. presentation. has Thank attending for

may now disconnect. You

Marin Software (MRIN) 10 May 202020 Q1 Earnings call transcript