MRIN - Earnings call transcript Q2 2024 | Marin Software Incorporated

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Operator

Greetings, and welcome to the Marin Software Second Quarter 2024 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, Marin's Chief Financial Officer. Thank you, Bob.

You may begin.

Robert Bertz

Thank you. welcome Software and earnings quarter everyone, call. conference afternoon, to second 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 few Call advised Investor website be will made audio on the that of is our conference call hours. recording participants recorded that for a the section are Relations within of being playback the this purposes and available

results update statements and August negotiate future with expected efforts, efforts, costs XXXX, and in restructuring expected as technology, complete economic QX restructuring our from to and these begin, within transactions the we product duty and on Google, to for our the forward-looking disclaim suggest retention services, of for our our our XXXX. additional other or for to in discussion any with X, today that our ability results. We outlook and trends business, about about or savings impact of Before and expected statements expectations our strategic customer capabilities of and under business, efforts to expectations business our cash I'd our make digital of spending, and the expectations future note our revenue improve financial to and investments and use customer bookings sustain the activity and of that business These and cost like development progress adoption may will benefits, and them. XXXX include relationships expenses digital our raise product expectations forward-looking advertising and Securities and financing our potential strategic Act advertising include our about Securities publishers parties resources, statements grow product Exchange the market to of statements our meaning Act new strategy, partnership historical and XXXX our agreement

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

Christopher Lien

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

shareholder to quarter, to efforts committed and highlight our are value. grow our we sustain and business we As to maximize each

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

moderates our earnings revenue in X% QX decline year-over-year guidance As revenues with down as announced improving within at release, today's customer retention our in new progress million, $X and in range bookings. about came

guidance. our non-GAAP high Our the beat loss QX operating of end

the on plan. lower reduction July operating in a Our benefits year-over-year our reflecting materially force and basis, of XXXX non-GAAP loss was restructuring

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

has XX, paid to minimum payments This the renewed needs the X, publishers, that their of it search partnership innovation the ensuring partnership search enable and the XXXX, and payments September meets current XXXX. current with our us Software week, agreement. on this under to platform campaigns. Consistent quarterly to Marin managed providing earlier advance another agreement total years, Marin platform, agreement announced to on on based Google Google and for scheduled with we underscores As paid its other the continue advertisers. with search will spend pleased managing Google commitment our agreement through X our with search advertisers as October including make is optimizing world's to evolving for Google that our strategic Marin helps across This same leading expire tools I'm fostering share commencing to unparalleled

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to with warehouses, over their their user-friendly As a brands marketing. needs focused collect advertising reliable particular reminder, agencies our your cross-channel sell we've data spreadsheets. them by data the of data comprehensive give looking and solution quarters to enabling agencies, spending is advertising performance tools unifying performance of more business To performance a digital marketers of we variety ad reporting digital that marketers and revenue offer been a address your cost and and Marin platform, reporting needs. past a world is to one primary and via management to varying the to a fragmented the investing format understanding advertisers in marketing for X sources offering. of addresses from send Step BI unified Connect have products. Connect provides

builds the data provided Ascend by on foundation Connect.

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from advertising Forecasting best is identifying of the software and is investment need the marginal investment advertising a return return. pace for the frequency given what to to likely is online the online deliver and dollar reallocate

bidding increased publishers enables to channels. and decreased budgeting well and decisions manual of provide kinds Ascend use optimization is potentially management to is to methodologies from optimal powerful to budgeting able approach. or the have and budgeting compliance pacing marketers approaches, done ability Historically, support spend Google's as of Marin's providing flexible a decisions advertising a been these Smart and what automate range leverage as highly if AI-based a with our forecasting and for error-prone UI budget spreadsheets marketers solution spend these Marin across that to campaigns, understand understand deliver to with budget and while allocation to controls including Bidding.

Amazon, Apple X, as LinkedIn, which addition and Twitter was formerly Meta. channels, Taboola to supports Ads, Google Ascend of Reddit, range Search a and publishers and in including TikTok, known

budgets monitoring fine optimization In to the control Ascend. past targets campaigns ad pacing feature now Our adjusted intervention. we campaign managing are with manual maximize budgets charts platforms the of setting performance make that quarter, dynamically introduced upgraded allow strategy without This tools panel and the side ensures in-grid to and/or easier. of and grain to posting

to and are optimal complements Marin in-channel bidding robust alternative agencies passing growing an compared benefiting our as to each and well advertising and Ascend advertisers and we see investment, from the results Ascend. savings Ascend With encouraged means allocate measure we evaluating as quarter, time independent online approaches. delivering financial and significant manual publisher as provides in pace more interest

Ascend customers management are months. Marin's shared, is X/X platform. At third functionality helping I've cross-channel and Ascend's in and further our flagship we using As coming offering both adoption this Marin's business is expect just new time, MarinOne, advertising renewals. the of already under drive

campaigns. functionality by Ads. This their Apple lift. is MarinOne enhanced for to analyze, goal more per cost their search Australian designed pioneer tools Search XX% their Our customer XX% XX% our at and per And cost conversions a paid Performance include in support Marin's publisher Marin publisher listing group management digital time all an Ad I marketing campaigns, available financial Google to Microsoft create groups and functionality in across enable the automate Performance gaming, empower Max to conversion who automations by and success MarinOne driving programs, to leveraged optimizations large media and reduce by with increasing click optimize users core campaigns not while for online effectively. Marin to highlight want past with listing is savings platforms. advertisers to paid Easygo, story powerful and can and edit Max and quarter, with scale complement recent

reports gains are helps language promising focus business and begins as large use tangible how and efficiency issues in practices how with benefits significant a marketer apply time his set the TeamMate campaigns. daily from modern digital With you and to ChatGPT-powered to Marin Advizer see can to weekly to a marketers to up best and to live deviations trained best models the Advizer outliers. on personal designed format troubleshooting now platform also our transform enabling such campaign in your and lives easy-to-understand address delivered These capabilities. identify review for Marin's ], developed, [ client ChatGPT-powered Marin-specific account are new delivered in We the in of to powerful or a customers fortunate or release Marin turns AI. basis, team learning her program anomaly AI, of via initial advertising detection digital results content. a and e-mail to the on and reports business. Marin AI campaign Marin, to deliver performance practices, debuted of linking concise performance an to quickly. advise on to Marin marketing or summarize The apply marketing

to expects innovations to optimize and in intends team expand the to market of online advertising to bring quarters. additional the Our application AI coming

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

our As these more on and as I for with creating latest time optimize outcomes. dollars benefit encouraging increasing our brands and to early customers can last customers call, acquire but prospects. efforts needs manage online follow them, revenue and we to consumers resonating signs spend see drive and ad investments measure, more mentioned Marin are that

financial below growing on leading Amazon, see Apple online advertising fragmentation we and outside investments, the in TikTok, will share publishers, at of cross-channel outlook their a XXXX. our digital for of third review With management Search scale approach increasing or Meta interest Google to results and optimization. And XX% advertising Ads, brands now, digital second X quarter taking be and of quarter our these of cross-channel reporting, combined the budget advertising leveraging Reddit and it Marin's LinkedIn, the Bob

Robert Bertz

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

the low the of toward quarter For million guidance. our revenue, XXXX, generated in second of $X Marin end

Second a is revenue quarter compared that to attributable when new revenue revenue our compared The decline was year-over-year of fact when for existing decrease X% indicating the outpaced prior total revenue quarters. down bookings. of to XXXX, primarily to churn second moderation in the customer approximately quarter

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

Moving operating on results. to our

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

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

are of As target. our achieve track savings QX on we end to XXXX, the of

XXXX, for Our compared The non-GAAP a the to as as quarter in primarily end $X.X in loss of the revenue restructuring second loss $X.X of quarter to our $X.X to realized is Difficulty] attributable million in during guidance by of decrease offset as lower XXXX second $X.X which to expenses. the loss non-operating for loss second compared plan implemented better high QX of than million QX from year. compared [Technical savings partially million the period current operating were was million, last The XXXX the operating was half XXXX.

remaining in the force of is prior expenses quarter. us when year a to XX% restructuring XXX the in to ended roles, represents allows our that total plan. We decrease The implementation is plan. of brands $X.X functionalities our operating in in technology to drive year which team for a products, decrease the decrease XXXX results believe half versus due Our the to to non-GAAP compared was our restructuring headcount to globally of attributable agencies. About and quarter in QX their with is million part July headcount commenced year-over-year ago. XXX and as deliver of new we reduction leading features continue XXXX The

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

such provide strategic assurances disclosed recent we but we raise timing have financing we transactions, exploring additional are of the or filings, as about opportunities As in our to SEC well cannot potential as any terms transactions. any

with the above, the October Chris agreement Google Google agreement is as from expire our scheduled revenue the renewed terms X. an Under quarterly to additional we payments agreement, term recognize XX. As partnership July in agreement the September mentioned X-year that strategic for under of we expect new and new on current to on will commence same the

our able to from the levels. addition to the payments revenue specified In agreement also we incremental quarterly be earn payments, Google expected may under if spend new exceeds managed

outlook. our to on Moving

operating be to loss in the again we our non-GAAP million. This for $X.X for of revenue million to XXXX, time and call we you Thank call. your to QX expected $X.X $X For look forward and updating our is concludes $X.X our earnings you during today. range in range QX be of million XXXX expect million to the to

Operator

This concludes today's teleconference.

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

Marin Software (MRIN) 1 Aug 242024 Q2 Earnings call transcript