MRIN - Earnings call transcript Q4 2020 | Marin Software Incorporated

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Operator

Greetings, and welcome to the Marin Software's Fourth Quarter 2020 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, Bob Bertz. Thank you, Mr. begin. may you Bertz,

Bob Bertz

Chris of afternoon, earnings earnings welcome website is this conference CFO. a The will a today I'm Good you By fourth have can short the which should call that that also at our investors.marinsoftware.com. Bob hours. our Marin crossed of release on quarter Marin's advised received and Call Relations is me within ago. joining Investor recorded time XXXX call. the be being of And a Marin's everyone, obtained audio conference is you. purposes, CEO. on to for now, few are our and copy participants Software's Bertz, Lien, be section website release, Thank made My playback wire name available recording the the

predict our our pandemic economic activity, migrating note we our to suggest may These spending business, and expectations ad potential our our in Securities publishers of our partners capabilities, QX resources, our our development manage and to and may the that continue effects from the our ability We discussion like our the progress and today of our customers meaning and strategy, that continuing business to on Exchange Note of any product and recent pandemic cost cash product results. our potential future improve to COVID-XX this expected Act and of in uncertain to about to considering advertising the and and to ability relationships I'd product bookings new historical XXXX at Securities which extent expected Before technology, to the as to include the XXXX, MarinOne of return statements for our COVID-XX market XX, time expectations the global business digital disclaim evolving is results other that these savings our February including trends update global with customer and about platform, our business estimated statements make impact plan, statements the statements in and of restructuring trends the include investments Act landscape. begin, retention difficult financial for duty within to outlook forward-looking them. the impact will forward-looking efforts, and XXXX. expenses growth, and

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

Chris Lien

maximize growth update our quarter return for to Marin to on observations joining provide on and an and call the on Thank initiatives return our our our Marin afternoon, to Bob remain growth. then quarter provide and and value. today. shareholder share first you you, quarter. outlook We Good the fourth I'll for additional committed Bob. thank will to everyone, to detail my

call time from leading to delivers offering and MarinOne. on to to brands investments. performance, are and enable making and focused is next-generation this optimize cross-channel this returns We achieve to their customers grow that our advertising And agencies encouraging migrating savings online progress platform plan business delivering Our better this platform we a management advertising their insights.

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

new return encouraging some in which and improvements sufficient are to track. if an to to there upturn the Additionally, are even We've that believe Marin us yet retention, right present, lead in not business seen growth. we on signs activity

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

million $X.X QX guidance. low above end our slightly operating of the loss Our was

total our was end just support to Our with of QX headcount $XX.X our Marin end providing we pursue results At team last the was customers. team roles, our brands and of at our About million, that cash team leading to XXX quarter, delivering the resources in of agencies. for the the technology fourth global strategy to and balance implemented reflecting our products summer. their in drive members, investment over half reflecting is reduction significant the

As will management. monitor use has been closely, cash practice, cost balancing we continue investments to our our with

manage and dots all connect traverse gardens for own. and as at an walled driving the engage money we revenues, view channels, to together, publisher discussed publisher. performance, advertiser customer from brands a a highlighted, individual Tools understandably and to digital this As a these publisher their on not enable Marin independent supplement have of prospects measure, insights. to spend Amazon journey. measurement and the to optimize time a be online points and silos. objective before, advertising need investments, their well the seek Google, how of online of ads And Facebook and Marin purchase. advertising their capability do play agencies. an online we have performance to investments more helps provide the a of to not platform as customers the Brands Marin Customers cross-channel leaving advertising world's and performance. and focused ally business in of on focused the serves their path better Marketers publishers layer to devices range to their savings on that advertisers brands on seeks publishers from given particular leading on to

Our e-commerce from our this focus platform. is MarinOne, search, our advertising to add doing and brands Key value for online maximize investments social to cross-channel is their next-generation the to returns across channels.

more of customers We revenue to platform. our continue and migrate to new our

positive, today, the functional new of and online this been performance insights. later their more that from them our of to As customers platform running the on half extract balance time unlocking to revenue quarter. and is enables migrate like of investments, while and saving and customers feedback has about business very expect our we advertising MarinOne, greater MarinOne's

to needed enhance and and quickly. tasks program continue more their to functionality, We platform's including the enabling expand understand complete better digital the to marketer

also we MarinOne Advanced front, setup newest machine performance better calculations. learning designed the and through algorithms simplify On faster improved launched clustering Marin's bid bidding accuracy. powered optimization deliver algorithm bidding, performance to

for Our also improved industry-leading. benchmarking XX% This average accounts. bidding, is already bid shown faster prior larger of XX% technology which bids and intraday processing Marin's performance enables to was versus

level. ability continue our to of part bid predict Marin and support trends developed less tools. to bidding, to on based clicks, at in will historical future This conversions, budget and which revenue, in profit of data. we allows performance the the As invest strategy in forecast introduced customers investments is our cost forecasting in the future publisher pacing,

added pipes As ad Marin a cross-channel Amazon, campaigns. brand on platform, supports leading sponsored and reporting support sinking, expand support brands, we video invest Recall Ads. bidding our the to sponsored products for three campaigns. that continue and We to for display Amazon Amazon-sponsored sponsored

support support for of our our to to process within Amazon headline, publisher We products more Wizard, MarinOne. grid. sorting and simplifies introducing and operate attributes, Linking what's Amazon which allow image, Attributes accounts include new to creatives keyword ratings, and filtering Amazon more allow added above we in These enhanced tool. extended to and to We makes attributes of functionality. expansion also improved it our the To efficiently, beyond Amazon easier advertisers available price, the review identify by go availability. advertisers which Amazon adding our ad,

we data and delays. way faster the process cost Amazon for revenue efficient allowing upgraded and data data, also fewer more downloads We and

API our Facebook be these ad has solution. mirror functionality customer Attribution, online the we to Amazon expanded As an journey, the traffic If conversions on part now of the Amazon Amazon to advertiser focus product Facebook. sending revenue cross-channel store page, capabilities tracked using Attribution can introducing of or an support for page and

solution We TikTok, Media, Verizon and Snapchat, also API publishers, others. LinkedIn, Twitter, the as such Amazon to include Attribution enhanced YouTube, Reddit additional

actions scheduled days Facebook their As Marin our we when the our to hours continue its robust they set tools. note, introduced Of specific we of be investments add or to in social allowing complement Social to capabilities like that active MarinOne, to would in provides functionality part advertisers to or ads paused. in

is tracker continuing cookie-based and on XXXX, normalized in platform the compliant, of accurately continues QX where is for Redshift, interest brands offering, choice. with Data to Marin's particular, flux. tracking brands in browser, Marin data example, with conversions BI an to are our include assumed both make others. always has support UK's Marin supports growing ICO is BI cookie-based own BI During Studio, able challenge efforts Marin which thought and in which in In or to good world enables Apples' server-to-server lead also to capabilities BI or easy for import to via that push business automatically Safari enables Marin tracking, approaches. a Google their platform Marin to Connect Leading Marin's Amazon's and in measure export among intelligence and the using advertisers for be a privacy to Connect privacy that tracking open standard which platforms leading it Tableau data. we

brands and the the levels take at in do Our enjoys backdrop and as investigations foresee their not the of the relationships antitrust EU against we of with leading relationships. active leading and digital federal in well activities advertising publishers publisher, agencies coopetition these in significant as of businesses to an place Marin support the market. changes state

despite As I've shared burden advertising as that I ahead. our a opportunity the view, and COVID believe COVID-XX, accelerator challenges tremendous additional trends. has current existing In of in an continue the digital to Marin has of past, served our

most Over the we a few verticals. ad industry across seen months, past spend recovery have in

expect will in to continue financial ad vaccinated, quarter the our review population especially and travel XXXX. spend As outlook And we quarter now all our of first and in-person recover, activities. to verticals in results other the and is tourism fourth of for more Bob

Bob Bertz

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

primarily adjusted $XXX,XXX, resulting Marin revenue. amendment due revenue approximately of to of business end result for of guidance being $X.X generated in XX% XXXX quarter for down revised quarter compared Audience impact the of XXXX, by of or Google fourth timing our sale XXXX. a million the under the revenue, high was when fourth strategic of revenue the when approximately search for quarter with higher to Perfect from a the revenue our XXXX and For agreement revenue XX% of Fourth quarter of the in the the as late QX recognition signed total

result agreement QX For when pandemic. strategic a resulting was Audience XXXX revenues the Revenue the revenue signed our revenue a the in approximately quarter for by COVID-XX of adjusted under timing decline to $XX decrease and impact compared XX% the totaled sale and with fourth of year, late Google in XXXX. business XX% a XXXX million, the the million the both in the Perfect negatively as revised year or full of $XX impacted of XXXX year-over-year a of global as recognition for from full of amendment

most continue at has will have uncertain that impact levels the we extent Although believe a time. business to spend returned across in impact seen to in verticals, near but most negative customer have term, not and is yet on industries. our improvement this We pre-pandemic the spend the in of COVID-XX duration

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

U.S. XX% and full the international. year, the XX% geographic was For split

results. onto Moving operating our

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

was discretionary not by our following end have our of non-GAAP $X.X XXXX. quarter approximately loss loss bonus guidance. bonus Our to of $XXX,XXX non-GAAP the of $X.X accrual, high a quarter that of Directors million of Board approved includes the as fourth million operating was loss beat of compared we fourth $X.X million in expense in was operating would the considering The for QX for the our XXXX XXXX that the guidance. contemplated end Without

year full as operating $XX.X compared was million non-GAAP XXXX in Our to loss an loss $XX.X XXXX. million

a expenses comparison. ended year-over-year on the for were in full XX% XXX ago. year XXX year Our total a down the and basis with QX XX% headcount year operating down non-GAAP We versus

ended from under our $X.X increase of net $XX.X in balance million, In a our the issuance cash in by representing quarter. of largely cash in terms our balance net $X.X sheet, at-the-market million a which with increase we resulted QX shares fourth was quarter the cash proceeds program, of of of The driven balance. during offering total million the

by During added of stock quarter facility. X.X the we million an million balance first to shares at-the-market selling our of sheet XXXX, $X.X utilizing additional common our our

quarter outlook of our the onto for first Moving XXXX.

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

our of call your impact for quarter. This forward the reflects anticipated we time, next earnings on our QX the and again our estimate for today. results Thank updating XXXX Our concludes call. our you of during guidance financial look pandemic the current you COVID-XX for to

Operator

This teleconference. concludes today's

You participation, have your and for lines now. Thank day. you wonderful may disconnect your a

Bob Bertz	Chief Financial Officer
Chris Lien	Chief Executive Officer

Marin Software (MRIN) 27 Feb 212020 Q4 Earnings call transcript