MRIN - Earnings call 4 2023 | Marin Software Incorporated

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Operator

Greetings, and welcome to the Marin Software Fourth Quarter 2023 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Bob Bertz. Thank you.

You may begin.

Robert Bertz

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

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

impact and restructuring and savings product and in future other our historical statements market, for activity retention suggest grow business; on for in relationships spending, trends our results advertising expected the our strategy; These progress product cost XXXX statements publishers expectations parties with expectations technology, or business our for our investments our include business, our and financial about customer outlook our customer cash use befits our expectations QX efforts, and digital and results. capabilities economic development improve our costs ability advertising efforts product and future digital to expected and bookings the to resources, of sustain services, expenses from expectations and that and forward-looking adoption on and may about our restructuring business new our of and

make disclaim them. XXXX, any and these duty February update statements XX, We to of as

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

Christopher Lien

Thank our provide for Bob XXXX quarter for observations you, share of Bob. and on results initiatives afternoon, fourth call the on provide quarter my and our the joining today. additional thank full year grow an you update to XXXX. our on and our first quarter for detail year Good full everyone, I'll then business. and our outlook and will

Marin shareholder to remain I returning call, on committed value. As each we growth discuss maximizing and to

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

decline to encouraging our continue did from new on Our basis. our is I'm and fees as we strategy efforts revenue in are we that customer pleased to believe share last on receive sound report continue that moderation a and I on focused agencies. business offerings growing we our as call, to on our ongoing our year-over-year And brands

were Marin's previously but QX, with at today's revenues sequential our was $X.X published in for guidance prior basis, the from QX. still slightly million, in in came just a line release, revenues of the high year. QX On from QX down end down announced As which earnings in

our in Our quarter revenue our lower our and high QX operating of non-GAAP investment the the continued team. was loss end also and despite Marin-One above for guidance

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

our with will investments cost continue been balance we practice, has management. to As

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and of Connect, you these Marin, Ascend X will our varying now website MarinOne. on see marketers meet needs www.marinsoftware.com, the better offerings from and to learnings part As of digital at

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budget compelling budgeting continue believe provide with uses to for I'm both and their It for return channels and rules proprietary and is for volume per a encouraging publisher this expand the an for Ascend to Marin's opportunity and platform for range Ascend optimization time TikTok, customer we to Marin forecasting maximize are results and management an a in saved as financial functionality. increased investment. our by forecast Ventures what will not XX% ad agency machine QX, other intelligent budget alumni dynamic functionality, platform advance feasible simulations. lead Using add value. And that to and we publishers. support with time Search to an This advertisers LinkedIn, help as Tabula functionality and revenue customer offering. impractical of with lead a enduring and allocation. Marin's our enhanced report models lift XX% Creating include Marin Ascend quarter, on reduced supports optimization pacing functionality ads pacing initial marketing is with combined and Apple see Marin area and Marin's our with savings. doubled pleased budget by we our independent for customizable optimization cost for for and just learning this publishers to

looking functionality. are more testimonials to customer-specific to We months as studies add case the forward and to in we Ascent sharing coming continue

has as various as well renewals in business already a role customer wins. Ascend new played

to XX% Internet data In using the media We customer XXX% past to for time the Marin's Marin hub. ads. expand brands Microsoft programs, continued support our tools also Marin's Customer life examples with Amazon lift. and increased uniting past management and driving by the seek for enabling Google quarter by revenue sync for savings complement in by cycle quarter, large Yodle include revenue revenue to financial and publisher paid at scale increased

sales and reporting. across revenue to greater product level more e-commerce both in-app organic transparency enhanced cost Amazon comprehensive team shopping include for and data paid Our and revenue

We Spotlight management brand to platform. critical types brand sponsored Amazon's deliver also more video, Amazon campaign support for awareness enabled Stores on ad and to drive comprehensive

supplement reducing outlooks staffing business many their managed companies self-service our provide to ready and flexibly facing to uncertain capabilities With Marin platform. stands SaaS levels, services

publishers experienced resonating ability staffing the in-house digital new marketers agencies is levels important in become marketplace. pressure, teams increased Marin's As supplement brands under at and with and more full-time come RIM's

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

or legal related fees on not Although to these in official party responding has in than QX to are we lawsuits investigations, received requests any target conjunction to various Marin Marin a investigations. in with spent $XXX,XXX less that these

activity at in expect coming that we similar on We to response information primarily which various subpoenas. legal in the seeing, providing are is spend quarter to based the levels

in shared has I've tremendous believe a Marin I opportunity. calls, As prior

creating to consumer online more Marin advertising spend manage revenue longer and required more and and and acquire development dollars than for follow drive ad these an them. efforts fragmented benefit investments taken to MarinOne can brands originally customers time landscape. increasingly optimize increasing as measure, Our have need projected. outcomes in online investment

We advertising leading financial seeing interest interest with fourth will Marin full digital growing efforts. review And digital MarinOne Bob approach optimization and and quarter including quarter support experts agencies a our Marin's of and in brands the now our first is team cross-channel brands early XXXX. results well to call in [indiscernible]. taking investments, for our year which positioned their outlook of and to their these in functionality, our advertising we are budget platform

Robert Bertz

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

Revenue generated to quarter quarter the compared fourth our guidance. high $X.X XX% million XXXX. was was end revenue for XXXX, which revenue, Marin down approximately the of the fourth at when For of total of in

of revenue full a the in is as decrease which million, compared XXXX. $XX.X million XXXX, to XX% For $XX totaled year year-over-year

XX% approximately and full geographic split U.S. revenue XXXX. year international for XX% QX of the Our both and was for

operating Moving on our results. to

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

the realize We restructuring as of relates an during which reduction the cost and well incurred estimated on by year. positions plan As as structure in The XXXX. pretax XXXX approximately previous and the force approximately benefits. We severance savings reduction commenced the savings to termination the to restructuring restructuring in from substantially savings XX calls, I've of implementation which our $XX approximately million on come we realize the reduce to complete of fully in million $XX expected plan million other equivalent end Close the of $X.X expect associated costs, a workforce all of of July is full-time XXXX. expected million to $XX force we quarter globally in XX annualized cost The of reduced began to annualized by onetime roles. to basis. to third was our is discussed the contractor estimated as in

line in our more This base current revenues. with restructuring bring helps to our expense

by loss high Our non-GAAP was in implementation fourth end was compared $X.X QX $XXX,XXX. for operating XXXX non-GAAP $X.X offset partially loss of beat as decrease the restructuring to loss loss of guidance the the approximately quarter compared of to a lower XXXX. in fourth XXXX million is quarter million our The $X.X of million for plan, by which The as our attributable to the QX operating revenue. operating

year which $XX.X XXXX XXXX. a to revenue. was operating restructuring, by in the year-over-year expense to of full non-GAAP Our loss $XX.X in as in million a the of half also compared offset as second The the is lower loss year partially attributable decrease loss savings was result million

of compared we were to the of XXXX. million, a Our is when commenced We decrease quarter operating -- in the XXXX. non-GAAP the restructuring to expenses QX quarter plan which $X.X the decrease third fourth represents attributable XX%

year expenses the For again, of the full primarily decrease XXXX, a plan XX% represents operating year, to in million implementation $XX.X third the with were approximately our quarter. XXX XXX headcount as a versus of ended We non-GAAP year restructuring our compared total due to which the ago.

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

monitor to our continue levels. carefully will cash We

outlook the for of quarter to on our XXXX. first Moving

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

for on Our time, customers. earnings to advertising guidance environment our updating today. Thank both economic you of by the you we prospective reflects estimate continued again call forward existing during and for our of look revenue impact concludes QX spend our This your and call. XXXX the uncertain

Operator

you. Thank

lines. your participation. disconnect You may now for your Thank you

Marin Software (MRIN) 22 Feb 242023 Q4 Earnings call transcript