MRIN - Earnings call transcript Q3 2024 | Marin Software Incorporated

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings, and welcome to Marin Software's Third 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, Chief Financial Officer of Marin Software. Thank you.

You may begin.

Robert Bertz

you. Thank and Software's everyone, Earnings Quarter to Call. Conference welcome afternoon, Third Marin XXXX Good Bob Marin's Bertz, is name My I'm CFO. And joining Marin's Lien, me today is Chris CEO.

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

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

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

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

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

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

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

Christopher Lien

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

As we we value. quarter, shareholder to and are business highlight maximizing sustaining each committed and growing our

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

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

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

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

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

breakeven. Marin difficult took by the align closer to revenues is head $X.X savings quarter, annualized we The the and our mid-October, costs step in our count to We XX%. projected this reduced of million. subsequent with better to end In current of to approximately reduction move to result

is share fostering on search Marin quarterly pleased to their substantially advertisers October minimum to similar our and X agreement payments. expired partnership with agreement with with commitment The providing This the strategic that campaigns. another XX, agreement last underscores I Software we quarter, same optimizing managing has September innovation paid commencing and the Google on renewal for its including am announced to share years, As unparalleled XXXX, Google tools that X, for revenue renewed XXXX.

As I've their and channels, seeks TikTok, do an The at Google, a Snap play digital engage ally this in well to Marin shared path the online not before, leading for world's range brands to Facebook, of walled the in together. traverses and publishers, be devices of all agencies. and to the points gardens purchase need other Amazon and LinkedIn, customer and journey, Marketers including publishers.

platforms to the tools customers. to tools platform walled garden. platform online to layer each these that measure, connect its advertisers their the the offered of driving We as These insights. ad complements Marin more do must their this encouraged brands performance, and better spend serving performance optimize manage investments, business and dots. ad advertising that focused a on understandably in Brands helps are by savings time the provides and ad within units each

promote platform ad to performance across nor don't tools of generally highlight channels opportunities platforms. advertising do They view spending unified customer's devices. performance and a The improve a they across across don't reallocate to platforms compare journey

of products. software our our the varying experienced digital brands digital of advertising. marketers agencies, we team of supplement help can support their digital the primary but navigate X experts complex who with needs To offer rewarding from We marketing and world address

collect is performance with and advertisers marketers looking Connect cost tools spreadsheets. via Marin data BI performance send and data their solution to sources focused warehouses, to unified revenue data reporting offering. for provides from our and Connect a ad it marketing various

It and methodologies our understand optimal compliance, understand Marin's deliver AI-based budget budget data advertising decreased Building and optimization spend across pacing channels. allocation publishers forecasting Ascend what increased leverage or campaigns, on if from the foundation to Connect, provided to by spend and solution. enables marketers is management

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

manual performance intervention. maximize ensures dynamically campaign budgets without adjusted are Ascend that to

independent delivering optimal significant pace alternative manual investment, advertising to and bidding the results savings allocate robust compared financial in-channel measure an complements and means time Ascend and online provides to approaches. publisher and

a campaigns due enhancements all maintain management spend budget across to automated users This introduced floor publishers. impact adheres minimum Ascend, in provide with These ensuring underperformance maximize minimum past to budget quarter shortfalls. budget that and campaigns avoid and both thresholds controls, to we and maximum new

with over XX offices saving And to of compliance X% hours to a budget In just over I months, under outstanding client, they want week. dental work budget manual from who customer nationwide. organization results services highlight XX%, of really XX, compliance improved Midwest's X X,XXX platform media to independent per one Ascend the agencies, budgeting a with story their transform Fusion for recent largest utilize Marin's success

encouraged well see from as We to interest Marin Ascend. agencies advertisers in are benefiting and more Ascend growing as evaluating

and new both As Ascend is I've already renewals. helping shared, drive business

Marin's flagship advertising platform. third cross-channel our MarinOne, offering management is

to Our effectively. goal marketing designed to MarinOne digital is savings their scale paid campaigns financial publisher management is time for with tools MarinOne and to complement more driving media large optimize at and advertisers automate enable lift. analyze, programs,

reporting apply their the pleased of supports our same on omnichannel can enhanced budgeting, ease precision to part they existing across full automation Reddit of now MarinOne, campaign announce As which integration, top Marin. campaigns Reddit Marketers our I'm including with publishers manage forecasting in capabilities. and other management, and

users that a open and AI-powered an I'm this, calls, marketing on with way, can AI is to knowledge with teammate. prior in share collective their best work unlocking Marin's virtual entirely simple With work the mentioned thought to pleased interact Marin prompt. practices Marin's platform and the of continue we leaders advance I've with digital new which putting Advisor, to

and marketers their integrated to knowledge assistant actionable virtual AI-powered by real-time within tasks platform. step-by-step analysis, streamline allows Advisor recommended Marin's new optimize with actions and Marin's automating directly entire receiving and Our by their users campaigns Powered center, helping OpenAI provides workflow guidance, performance insights.

easy-to-understand a second delivered Advisor performance weekly enabling or format deviations These performance detection anomaly is ChatGPT-powered and to AI in significant offering and Marin's designed a identify to in via e-mail on quickly. review basis, address reports are campaign our daily outliers. marketers reports following summarize concise,

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

our and to advertising of investigations the on support and an discussed take governmental at publishers past calls, of state federal the in role in the possibility an place independent digital agencies we've As as antitrust brands against the and management leading of activities legislation leading conduct active EU. There levels of to publishers, is ad of market benefit Marin's backdrop the also their businesses the platform. regulate federal the could which

November Any further decision In tech pending in hearings ruling by particular, Google subject closing will judge XXXX, case be and likely is beginning XX, the arguments a with from that judge expected XXXX. there will to QX ad the hear appeals. antitrust a

see term. near resonating that do we changes share with are calls, heard in on leading but more significant efforts Marin the customers have And latest relationships enjoys and relationships prospects. in encouraging the early as signs coopetition prior we with not me these and expect you publishers, our

can spend time need customers acquire for follow drive as dollars outcomes. brands them, Marin creating ad manage benefit investments more online to consumers optimize to and and and these measure, increasing revenue

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

our third quarter financial fourth and for quarter our review And the results now will of Bob outlook XXXX.

Robert Bertz

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

XXXX, $X.X above guidance. in of end million quarter the Marin high generated $X.X was of revenue, third the For our which million

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

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

to on operating our Moving results.

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

Our third $X.X XXXX was quarter of third to XXXX. non-GAAP for for quarter operating compared a loss the loss the million of $X.X million as

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

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

October commenced $X.X of in reduction an further XXXX. basis, structure come the in force. to plan We expected which approximately a cost expected from million implementation by to is restructuring our all restructuring This reduce plan of is new pretax a on annualized of

equivalent positions contractor in full-time reduction approximately by globally roles. workforce approximately as our force reduce as The X will well

by in completed restructuring termination We $X.X other all year, end be expect to which the of we restructuring and relates substantially onetime benefits. incur of and to costs, million approximately to the expect severance this

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

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

to on our outlook. Moving

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

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

Operator

This teleconference. concludes today's

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

Marin Software (MRIN) 31 Oct 242024 Q3 Earnings call transcript