Q1 2021 Marin Software Inc Earnings Call
Index, which gives our customers powerful and flexible analysis capabilities, using intraday data fractional conversions and device level segmentation.
I mentioned on our last call that as part of the <unk> rollout. We also launched Marin one bidding Marin.
The newest machine learning powered optimization algorithms designed to deliver better performance through improved accuracy.
It does clustering algorithms simplify billing setup and faster bid calculations.
Our benchmarking has shown an average of 10% to 20% improved performance versus Marines prior of bidding, which already was industry leading.
This technology also enables faster bid processing for intra day did and larger accounts and recent head to have good trials versus Google's <unk> hundred 60 bidding newness delivered better results reinforcing the rems positioning for performance driven advertisers.
Britain one bidding also now supports the Google smart bidding to provide more choices for our customers and for those advertisers wanting to leverage google's AI and ml optimization capabilities.
Marine customers are able to set targets CPA and target return on advertising spend goals in the Marin one UI as well as the upload third party revenue to Google.
Brent the overlay functionality supporting Google Smart bidding enables advertisers and their agencies to leverage these capabilities at scale versus the native offerings from Google.
I also am pleased to provide an update on our ongoing investment in Wynn intake, which are automated data driven insights to drive better performance for the marine customers.
This library of Leverages machine learning the highlight opportunities for financial lift and management of scale for the modern marketer, including our landing page checker bid strategy opportunity suggestions disapproved add summaries and duplicate keyword placement.
We will continue to expand this elaborated bring more efficiency to marketers and their agencies.
As part of our focus on cross channel capabilities to mirror the online customer journey, we expanded our support for Apple search ads and maintain marketing solutions and added to our investment in <unk> display advertising, including bidding both management and reporting.
We also are adding initial support this quarter for <unk> newest offering which is called <unk> retail media, a leading network of retail partners. All of these publishers provide advertisers and agencies with more opportunities to find prospects and customers across the internet.
As part of our investment in the enrollment we continue to add to our social capabilities to complement the robust functionality that Facebook provides the tools of note. We introduced budget management rules and Marin social providing advertisers with the enhanced budgeting functionality to complement the bidding capabilities and Facebook ads.
Business manager.
We also have this past quarter debuted in ecommerce modular tab in the RIN one to provide retail marketers of dedicated experienced for the management of their online AD programs. In this Tam Marin brings together disparate information sources Meyer the publisher Apis to give marketers more insight and control of their advertising investments for.
For example, green brings together of dose and consensus metrics from Amazon, along with Amazon by box and reading and review of information.
These data points, helping for marketing decisions on the <unk> platform for Amazon advertisers.
Advertisers and the agencies continue to seek signal of the digital noise investing in data analytics and the underlying enabling technologies. The goal is to drive learnings to drive better advertising performance.
The connect offering enables brands to automatically push normalized data for Marin for the business intelligence or bi platform of your choice.
As the stock to be an open platform with capabilities that make it easy the import export data.
Moving to the AD platforms that Marin supports ibi connect include Google data studio tableau, and Amazon's redshift among others.
Leading customers leverage the action Act as part of the Marin one subscription.
Since our last call Apple has deployed its iOS for $14 five update which asks the tumors to opt into tracking versus the opt out of change that is expected to significantly curtail at least tracking.
Moving continues to lead in our efforts to support advertisers in the world, where privacy and cookie based tracking of our influx in particular rent on tracker Marin tracker enabled server to server traffic, which is for privacy compliance and also was able to accurately measure conversions on Apple Safari browser, which is a growing challenge for our leading <unk>.
Brands using cookie based tracking approaches.
Despite our current challenges and the additional burden of COVID-19, I continue to believe that Marin is of tremendous opportunity ahead.
Our view COVID-19 has served as an accelerator of the existing digital advertising trends.
Over the past few months, we've seen ongoing recovery in AD spend across most industry verticals as more of the population of vaccinated, we expect AD spend in all verticals to continue to figure of recover, especially the tourism and travel and other in person activities.
We believe the balance of 2021, we'll see an uptick in overall economic activity with digital advertising investment, earning its fair share as businesses seek to engage with consumer and business customers across search social and e-commerce channels.
<unk> with its more than one platform deployed should benefit from these expected trends.
And now Bob will review, our first quarter financial results and our outlook for the second quarter of 2021.
Thank you Chris I'll provide an overview of our first quarter results and then share our forecast for the second quarter of 2021, I'll begin with a review of our income statement.
For the first quarter of 2021, Marin generated $6 $3 million of revenue exceeding the high end of our guidance by <unk>.
Approximately $300000, primarily due to higher search revenue as a result of improved of retention.
First quarter revenue was down 27% when compared to total revenue for the first quarter of 2020.
Revenue for the first quarter was negatively impacted by the COVID-19 global pandemic, although we have seen improvement in customer spend across most verticals spend has not yet returned to pre pandemic levels in most industries.
Our geographic split for revenue in the first quarter was approximately 76% U S and 24% international.
Moving onto our operating results as a reminder of our financial statements and a reconciliation of our GAAP to non-GAAP financial measures can be found in our earnings release issued earlier today.
Our non-GAAP operating loss was $2 5 million for the first quarter of 2021 as compared to a $3 $5 million loss for the first quarter of 2020.
The $2 $5 million non-GAAP operating loss in Q1 beat the high end of our guidance by $400000.
Our non-GAAP operating loss excludes $500000 in savings from an employee retention credit under the cares Act that we recorded in the current quarter, we expect to record of credit of a similar amount in the second quarter as well.
Our non-GAAP operating expenses were down 22% in Q1 on a year over year basis.
We ended the quarter with the 157 total head count versus 219, a year ago.
We'll continue to carefully monitor our operating expense base.
In terms of our balance sheet, we ended the quarter with a total cash balance of $15 2 million.
Representing the net increase in cash of $400000 from our Q4 of balance.
During the first quarter, we sold one 2 million shares of our common stock utilizing our at the market facility, which resulted in an approximately $3 1 million in net proceeds.
Moving onto our outlook for the second quarter.
For Q2, 2021, we expect revenues to be in the range of five and a half to $6 million and our non-GAAP operating losses expected to be in the range of $3 four to $2 $9 million.
Our guidance reflects our current estimate of the anticipated impact of the COVID-19 pandemic on our financial results for the next quarter.
It excludes the estimated $500000 savings from the employee retention credit expected for the second quarter.
This concludes our call for today. Thank you for your time and we look forward to updating you again during our Q2 2021 earnings call.
This concludes today's call.
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