MRIN - Earnings call transcript Q2 2022 | Marin Software Incorporated

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Operator

Good afternoon, ladies and gentlemen, and welcome to the Marin Software Second Quarter 2022 Financial Results Conference Call.

During the presentation, all participants will be in a listen-only mode. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the call over to Bob Bertz, CFO. Please go ahead.

Bob Bertz

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

our Before to within today meaning our of to historical our technology, in trends growth, and we impact MarinOne like forward-looking product will and may and suggest relationships to parties update activity business them. economic customer cash publishers digital our market, statements for and in to and our include duty and Exchange any as XXXX, expectations of of digital business, development that investments manage disclaim Act statements platform, customer resources, discussion and to return begin, that these advertising with our our on product capabilities, the our These and outlook future our product about other of future efforts, to expectations We our statements advertising expected spending, to results the for strategy, make about Securities I'd progress note business Securities and of results. and QX financial August expenses bookings retention X, the for improve our forward-looking expectations the XXXX XXXX. include new Act ability use statements and the adoption and ability

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

Chris Lien

afternoon, and I’ll everyone, detail Marin of to XXXX. you, an for quarter on for XXXX second joining Thank on Bob. outlook Good growth. our then the third and provide the observations my provide quarter initiatives our to today. on for our and thank results will update our you additional return Bob share call quarter

highlight we remain return I call, value. growth each and Marin to As shareholder to maximize committed to

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

customer MarinOne to in moderation on This report we a quarter, year-over-year our as in revenue continue to on our focused and basis. growth, is retention saw return good sound that are we efforts Our believe we share Marin’s a improvement in an to and to decline we new strategy we past attention that increasing that our the more the rest received, encouraging activities year given marketing brands to customer have feedback of and bring their business the this are activity. And agencies. I’m of pleased investment across

from our prior in the in our for from still observed digital spending pullback our for we to return a other customers downturn, $X.X factor adjustment. can year. we and last. the which QX previous will a QX, resumption and channels. can was managed economic drive the and came via We ad MarinOne at that relative spending the revenues crystal advertising in a Marin, previously multi-month reduced headwinds. our quarter a is relatively we decline trackable published in highly quickly have be to believe saw pullback digital at investments the advertising million the compared times pullbacks QX was but release, As [indiscernible] that spending, spending a don’t the acquisition. evaluated the In businesses downturns, contractual digital for announced in second basis, example, results in is today’s the of revenue In as the in current we don’t long spend down then when A guidance advertising economic of measurable to we middle due in or have saw given key earnings on advertising longer XXXX, brands which given to spending performance-oriented have that will as so ball platform, these we lead commitments digital view existing revenue for and But how expenses nature spending customer for channels existing or that results saw economic transitory of customer be in know

observing this for pullback Our customers. spend ad for our that are guidance across QX accounts we

to team. of loss the our even our lower revenue guidance operating quarter MarinOne the in for at continue we as end and QX due invest was Our low to our

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

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

well of on cross-channel of platform traverse Marketers engage devices calls, I’ve past the and path to range channels, points and need Marin of ally publishers Customers And better As publishers helps other do and digital at a an manage a journey. for measure, of online advertisers as not brands to online highlighted, and insights. brands these world’s the be seeks to agencies. Marin purchase. in business Amazon optimize discussed performance, the all on and walled driving connect this savings time leading Facebook, advertising play together, and dots. their customer prospects to their we leaving the have investments, gardens their Google,

investments We platform channels, digital performance supplement team can our that across provides experienced customers. spend These to retail experts e-commerce to I’m Our complement MarinOne to a focused rapidly social tools The its improve across publishers MarinOne the from opportunities to tools a our reallocate support media of of of publisher layer navigate greater highlight robust but don’t performance who advertising. marketing drive and brands as with publishers. brands more publisher unified a the generally publisher the understandably ad platform performance don’t from advertising are that encourage devices publisher. tools rewarding channels, to MarinOne search, layer, referring help online including don’t their digital to growing publishers with journey view a is spend of advertising the to on promote publishers, world and the complex compare to across By returns each each channel. across units of and performance to customer’s enable and brands

positive MarinOne the enhance We customer feedback. continue accuracy intraday and MarinOne’s of improved rollout we optimizations unlocking and clustering better to In functionality to with QX, and completed for all Bidding, dynamic customers. improved expand performance

performance a the allowing of their We MarinOne adjusting dayparting advertisers to by also or improve not are by introduced shown. scheduling multi-edit, support when they for are ad ads and

aggregation needs dimensions type campaign-level and and device, our metadata time dimension publisher. These roll-up view improved by views reduce that tags tools. These programs data publishers. the and significantly the a configurable user and analysis dimension changes data their match the also need further brands We segment their view are to fits to views, not the over predefined enable by way off-line of ability introducing in flexible for advertising business

identify including strategy performing two bids. which we RSAs bid artificially responsive below new goal without and insights, search raised first-page ads objects first-page any RSA identifies bids introduced efficiency are whose publisher minimum coverage, bid, the which to groups addition, and minimum In or

up to introduced hires functionality MarinOne users, efficiently, we chat We advertisers and of on and also more new allowing MarinOne. quickly in new streamlined the directly onboarding running and get

possible to navigate it’s having without our reach from to away customers for support So customer own ever for help team account. ask their and

enhancements and other the the program All compared of advertising drive and these as improve to tools when improving ability MarinOne offerings. well better of to publishers’ competitive as efficiency usability performance

launched we the workflows. key Engine publishers, social Social automate to help For Rules

to duplicate users to posts we on triggers the booster set performance status, made organic rules. With messaging campaign can will easier bid, Engines, the that of by adding ability aspect any amplify Rules and and more, adjust it message based

ads. to cross-channel support a to expand continue our Amazon As invest platform, we for

an for brands Amazon this agencies support e-commerce this breadth planned of ads and quarter for Amazon and to was webinar growing supporting status, Amazon highlight recently depth also robust publisher. their later given fast and capability potential Marin’s Marin partner verified acknowledging have Marin’s We of the for ads.

once in ads search to held support placements placements for ad downloads Apple App season we Apple of in the in Apple live highlight this continue these customer app slots an ads the to the which cross-channel Apple’s year. in App customers. the to part acquisition. gave currently QX, store the Store and ads on Apple to later customers API, our official go before more We support advertisers, of search marketers their offers two webinar who is to search apps one Marin partner, an As will results. one tab recently an Apple’s with search that the opportunity engage as holiday expected announced Store invest use which benefit us campaign and

provide App on discovery will stores the their to app new and and today two These prospects. for individual additional additional bring ad app Now placements homepage more app one will brands ads slots, opportunities Store pages. one

call, in for from There coming trackable that billion digital general, historically digital some with we in a industry years. talk or TikTok made shifting mentioned XXXX publisher. was digital recently such Analysts as ad In quarter’s As dollars and this spend partner channels budgets TikTok, will data. brands for budgets Marin behavior less ads advertising that one ads that also fast-growing we the in the are but forecast is social growth limited our pulled another estimate ad in are channels non-digital $XX measurable. not on have global strong an are last seeing from TikTok, the

Wave billion highly and the authentically with power engaged TikTok opportunity active Manager BXB and pleased recognized the Solutions of and Ad connect to as insights X MarinOne shared evaluation provides based experience. better strong search the integration was gives BXB social in by their QX share Forrester of TikTok’s Forrester XXXX I’m Advertising machine for recently best-in-class With of learning performance to and the users monthly through brands thorough that Marin with the as consumers our Our a a through performer brands automation. cited advertising and improves platform. on TikTok passionate globally, campaigns news

to Forrester able and providers the is a in this market advisory access technology a is third-party and role given space. review respected firm, highly in leading

of the our sign importance validation channels a of marketers coordinating strategy to of a cross-channel Forrester’s for across BXB is reach messaging prospects. brand’s

more BXB of for marketers marketing result needs MarinOne expect as to recognition. this We their a consider

with labor market digital needs some Marin’s mentioned meet services activities. tight which able Marin’s to managed is capabilities them media Advertisers strong Marin their support basis. an our this flexible during to level to to combined in help of buying are and continue often on experienced on As economic last we provides whereby now have interest I business need call, customers their see a especially marketers interim for to uncertainty staff, services

the significant the coopetition management leading changes support legislation federal in brands enjoys term. relationships as near publishers, of the an advertising antitrust of conduct to EU these the to and publishers role the also not of active at as the federal take and levels do platform. the of relationships ad against activities the regulate in as and digital in in Our place with independent investigations market. we backdrop There state agencies publishers the their government is well that Marin’s of leading potential expect leading Marin an could businesses benefit

any benefits to approximately to lawsuits revenue believe and these as a Although to fees to time Marin acquire drive has Marin them, that dollars conjunction online ad received ahead. Marin with investigations. customers various requests investigations, legal in in responding related increasing follow on opportunity QX optimize spent official outcomes. that not party tremendous creating measure, I need and these we in Marin has a more continue these spend for consumer target or to $XXX,XXX manage to investments and brands are

taking support and Bob team and digital our third our in XXXX. of to now increasing MarinOne investments these experts and with to digital platform efforts. approach in is agencies of seeing their second Marin leading And a our results interest advertising outlook and advertising quarter brands well cross-channel will quarter We’re review brands our the positioned financial for their

Bob Bertz

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

For the of generated XXXX, Marin quarter $X.X our revenue, near second midpoint guidance. in of million the

down compared of the for revenue when XXXX. XX% total Second quarter second to revenue quarter was

quarter new for approximately is agreement X, As we on XXXX. revenue our have a revenue quarterly under agreement change QX three-year expired per of the the share previously Google agreement, down October with was under revenue XXXX the million The revenue compared share to new amount Google $X.X to when expected new QX commencing discussed, under for approximately be term versus we in renewed Adjusting recognized million approximately XX% our the XXXX. agreement. revenue $X.X

spend which attribute we Chris customers including to As factors, current mentioned, during lower-than-expected fears from we a previously existing of of the quarter some recession. second XXXX, macroeconomic saw

negatively the how pound. and also We the due spending by euro was British not for rates long exchange dollar the economic activity. advertiser know to of strengthening against revenue foreign affected uncertainty Our do current impact will the the U.S.

Our revenue XX% second XXXX. XX% U.S. was quarter the of international geographic split approximately for and for

operating results. Moving on our to

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

$X.X an operating sales non-GAAP end and The of operating XXXX is as in million XXXX. to as was lower guidance. combination million marketing operating $X.X non-GAAP the in was QX to loss at lower compared and $X.X the increase to loss development for our product investments for quarter Our quarter operating second a of of the The XXXX a and increase losses our in QX we compared make loss expenses of million efforts. attributable revenue second in

marketing along expenses Our we XXX sales headcount of a non-GAAP strategic professional result to as making slightly We increased year of our a the ended quarter XXX higher and operating and investments in quarter are the approximately fees. primarily as ago. versus product X% activities, compared with second that with XXXX, total development

in as and the headcount sales make teams. our marketing we to and expect increase continue We to engineering in near term investments additional our

the our of quarter we terms the total of end balance $XX.X $XX.X In to a with million sheet, at balance ended quarter. cash of million as compared previous the

our to will and carefully as levels sales efforts. product marketing development our we We and in continue monitor cash make investments

Moving for on to quarter. third outlook the our

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

loss advertising environment, non-GAAP teams. spend concludes includes expected updating operating guidance Our look impact for revenue uncertain guidance our today. our continued of earnings the customers you during call due to engineering reflects our economic we impact our on cost and the you forward of your by time, and best estimate call. our sales Thank XXXX in marketing to for again our investments and This and QX the

Operator

and this gentlemen, today’s Ladies concludes teleconference.

You a for day. your may Thank have disconnect wonderful you at lines participation this your time. and

Chris Lien	Chief Executive Officer
Bob Bertz	Chief Financial Officer

Marin Software (MRIN) 6 Aug 222022 Q2 Earnings call transcript