Marin Software Incorporated
Q1 2021 Earnings Call Transcript

Published: 9 May 2021

[Operator:]

Greetings, and welcome to Marin Software's First Quarter 2021 Financial Results Conference Call. It is now my pleasure to introduce your host, Bob Bertz. Thank you, Mr. Bertz. You may begin.

[Robert Bertz:]

Thank you. Good afternoon, everyone, and welcome to Marin Software's First Quarter 2021 Earnings Call. My name is Bob Bertz. I'm Marin's CFO. And joining me today is Chris Lien, Marin's CEO. By now, you should have received a copy of our earnings release, which crossed the wire a short time ago. The release can also be obtained on our website at investors.marinsoftware.com. Call participants are advised that the audio of this conference call is being recorded for playback purposes and that the recording will be made available on the Investor Relations section of our website within a few hours.

[Christopher Lien:]

Thank you, Bob. Good afternoon, everyone, and thank you for joining our call today. I'll share my observations on the quarter and provide an update on our initiatives to return Marin to growth. Bob will then provide additional detail on our first quarter and our outlook for the second quarter.

[Robert Bertz:]

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 in revenue, beating the high end of our guidance by approximately $300,000, primarily due to higher search revenue as a result of improved 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, as most verticals, spend has not yet returned to prepandemic levels in most industries. Our geographic split for revenue in the first quarter was approximately 76% U.S. and 24% international. Moving on to our operating results. As a reminder, 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 $400,000. Our non-GAAP operating loss excludes $500,000 in savings from an employee retention credit under the CARES Act that we recorded in the current quarter. We expect to record a credit of a similar amount in the second quarter as well.

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