Marin Software Inc (NASDAQ:MRIN) has released their 2018 third quarter financial results for the month ended September which shows an 82% increase in managed expenditure. The company has also announced that they are signing an agreement for revenue sharing with Google that will last for three years in a bid to boost the development of their software products as well as the Enterprise tech platform.
According to CEO, Chris Lien, they are pleased to announce that the company has been on an upward trajectory in the Amazon Ads business. Lien indicates that the growth is a result of the robust adoption of stories ad format in social media sites Instagram and Facebook where advertisers have been pushing their budget towards getting and engaging in the new ad format. The CEO indicated that it was boosting to have online advertisers embrace the MariOne vision which is an autonomous platform for ads unifying e-commerce and social spend.
Financial for the third quarter
According to the released report, the net revenues for the year over year stood at $13.2 million which was a 28% decreases from $18.2 million that the company posted in 2017. GAAP operating margins were around $21.7 million compared to the third quarter of 2017 where the operational loss was $7.3 which is almost 165% and the operational losses for the 2018 quarter are a result of the inclusion of the $14.7 million benevolence impairment charge.
However, the non-GAAP operational loss was $4.7 million in 2018 which results from the 36% non-GAAP operating margins when compared to 2017 where the non-GAAP loss was $5.1 from a 28% margin. Restricted cash and Cash equivalents in 2018 were $14.7 million when compared to the whole of last year when they were $28.8 million. Nevertheless in the press releases the company has indicated that GAAP and Non-GAAP reconciliations were equally provided in the financial statements.
On non-GAAP loss operations, the company indicated that they do not project future non-GAAP operation losses because of the differences between the non-cash equivalents and revenue relative to stock compensation.
The stock has been rising significantly on good volumes in the last couple of trading session. It surged 7.67% to close at $7.15 with 8.5 million shares traded. It has breached its 200-Days MA of $4.88.
Agreement with Google
The revenue sharing agreement with Google is expected to run for three years until 2020 when it shall be renewed or terminated. According to the CEO, Mr. Lien, the revenue agreement stresses the importance of a healthy and autonomous environment that enables brands to get maximum results from their channels of marketing expenditure. He adds that with an increase in investment with the help of Google, they expect that prominent advertiser to experience more innovations from the company that is aimed at bettering services that include learning on the new machine based ad formats as well as innovative posts.
Business and product updates
The reports for 2018 financial results indicate that the company has increased the advertising spend of Amazon by 82% in the third quarter. They have equally made progress with their Facebook stories Ads as this has provided advertisers with access to Facebook which is their major growth avenue. Similarly, the Certification of their Marin tracker on Google’s accelerated delivery page is expected to enable users to have a better experience regarding quick load times. The company equally indicated that they had upgraded their support for the Bing Dynamic Search Ads which is expected to enable advertisers to pull ad formats that are longer. In similar developments of enhancing their products, the company has released a budget tracking capabilities that are expected to allow advertisers to manage and track their various Facebook budgets using periods and customization of their goals.