Marin Software Incorporated (NASDAQ: MRIN), a leading provider of digital marketing software for performance-driven advertisers and agencies, today announced financial results for the second quarter ended June 30, 2020. Morgan Stanley wants to add roughly 50 advisors and bring more credibility to the National Football League Players Association program after a $43 million investment loss was revealed in 2016. MetaProp, a proptech-focused venture capital fund, set out to raise $100 million last year. It’s only halfway there even though it’s just announced plans for another fund.
SAN FRANCISCO , Aug. 7, 2020 /PRNewswire/ — Marin Software Incorporated (NASDAQ: MRIN), a leading provider of digital marketing software for performance-driven advertisers and agencies, today announced financial results for the second quarter ended June 30, 2020 .
“In the second quarter, Marin continued to help advertisers drive performance during the COVID-19 pandemic, adjusting their online marketing investments to reflect changing market dynamics and customer behavior. Via MarinOne, our next generation, cross-channel platform, Marin clients were able to leverage all client views and dashboards to easily spot and react to changes across all lines of business. Marin also expanded our performance reporting for devices to provide advertisers with fine-grained analytics and control of their online advertising investments across smartphones, tablets, and PCs, especially as customer behavior adjusts with the new patterns of work from home and remote learning,” said Chief Executive Officer Chris Lien .
Second Quarter 2020 Business and Product Release Highlights:
Launched reporting for Google Smart Shopping campaign types.
Enhanced bulk editing and creation support for Amazon in MarinOne.
Simplified linking of Amazon accounts with information about Amazon Campaign Type designation in the Linking Wizard.
Introduced product title on the product-level grids in Marin Search and MarinOne.
Expanded Amazon-specific columns to enable Buy Box Monitoring, Sponsored Brand performance by asset and evaluation of bid modifiers by placements for Sponsored Products.
Added management support for Bing Responsive Search ad formats in Marin Search and MarinOne.
Released an All Clients View and Dashboard widgets to easily view performance across brands, lines of business or geographies in a single place.
Enhanced Cross-Client Reports in MarinOne to support client-level columns for dimensions, custom columns, conversion types, and currency.
Expanded automation with Automated Rules for Social allowing advertisers to trigger workflows based on campaign performance and other criteria.
Added support for new Facebook ad types in Marin Social, including Marketplace, Search, and Instagram Explore ads.
Added support for Facebook Housing, Employment and Credit Audiences in Marin Social, providing better protection against potential discrimination by advertisers.
Released support for Facebook’s Value Optimization bid strategy in Marin Social.
Second Quarter 2020 Financial Updates:
Net revenues totaled $7.3 million , a year-over-year decrease of 42% when compared to $12.5 million in the second quarter of 2019.
GAAP loss from operations was ($4.5) million , resulting in a GAAP operating margin of (62%), as compared to a GAAP loss from operations of ($4.5) million and a GAAP operating margin of (36%) for the second quarter of 2019.
Non-GAAP loss from operations was ($3.6) million , resulting in a non-GAAP operating margin of (49%), as compared to a non-GAAP loss from operations of ($2.6) million and a non-GAAP operating margin of (21%) for the second quarter of 2019.
Received $3.3 million in proceeds from a loan under the Paycheck Protection Program.
Reconciliations of GAAP to non-GAAP financial measures have been provided in the financial statement tables included in this press release. An explanation of these measures is also included below, under the heading “Non-GAAP Financial Measures.”
In July 2020 , after the second quarter ended June 30, 2020 , the Company commenced the implementation of a restructuring and reduction in force plan to reduce the Company’s operating costs and address the impact of the COVID-19 pandemic, which is expected to result in the reduction of the Company’s global workforce by approximately 60 employees, approximately half of which are located outside of the United States . The Company estimates that the restructuring plan and other planned cost savings that the Company plans to implement in 2020 will result in estimated pre-tax annualized cost savings of approximately $11.0 million to $12.0 million , of which approximately $8.0 million to $9.0 million is related to the restructuring plan. The Company expects to begin realizing the savings from the reduction in force in the third quarter of 2020 and that it will incur approximately $1.5 million to $2.0 million in cash expenditures in connection with the restructuring plan, substantially all of which relates to severance costs.
Marin is providing guidance for its third quarter of 2020 as follows:
Range of Estimate
Three Months Ending September 30, 2020
Non-GAAP loss from operations
Non-GAAP loss from operations excludes the effects of stock-based compensation, amortization of internally developed software and intangible assets, impairment of goodwill and long-lived assets, capitalization of internally developed software and non-recurring costs associated with restructurings and divestitures.
Additionally, the Company does not reconcile its forward-looking non-GAAP loss from operations, due to variability between revenues and non-cash items such as stock-based compensation. The GAAP loss from operations includes stock-based compensation expense, which is affected by hiring and retention needs, as well as the future price of Marin’s stock. As a result, a reconciliation of the forward-looking non-GAAP financial measures to the corresponding GAAP measures cannot be made without unreasonable effort.
Quarterly Results Conference Call
Marin Software will host a conference call today at 2:00 PM Pacific Time ( 5:00 PM Eastern Time ) to review the Company’s financial results for the quarter ended June 30, 2020 , and its outlook for the third quarter of 2020. To access the call, please dial (877) 705-6003 in the United States or (201) 493-6725 internationally with reference to the company name and conference title. A live webcast of the conference call will be accessible at http://public.viavid.com/index.php?id=140978. Following the completion of the call through 11:59 p.m. Eastern Time on August 14, 2020 , a recorded replay will be available on the Company’s website at http://investor.marinsoftware.com/ and a telephone replay will be available by dialing (844) 512-2921 in the United States or (412) 317-6671 internationally with the recording access code 13707543.
About Marin Software
Marin Software Incorporated’s (NASDAQ: MRIN) mission is to give advertisers the power to drive higher efficiency and transparency in their paid marketing programs that run on the world’s largest publishers. Marin Software provides enterprise marketing software for advertisers and agencies to integrate, align, and amplify their digital advertising spend across the web and mobile devices. Marin Software offers a unified SaaS advertising management platform for search, social, and eCommerce advertising. The Company helps digital marketers convert precise audiences, improve financial performance, and make better decisions. Headquartered in San Francisco with offices worldwide, Marin Software’s technology powers marketing campaigns around the globe. For more information about Marin Software, please visit www.marinsoftware.com .
Non-GAAP Financial Measures
Marin uses certain non-GAAP financial measures in this release. Marin uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating its ongoing operational performance. Marin believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures to investors. Non-GAAP financial measures that Marin uses may differ from measures that other companies may use.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. A reconciliation of the non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included below in this press release. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures.
Non-GAAP expenses, measures and net loss per share. Marin defines non-GAAP sales and marketing, non-GAAP research and development, non-GAAP general and administrative, non-GAAP gross profit, non-GAAP operating loss and non-GAAP net loss as the respective GAAP balances, adjusted for stock-based compensation, amortization of internally developed software and intangible assets, impairment of goodwill and long-lived assets, non-cash expenses related to debt agreements, capitalization of internally developed software and non-recurring costs associated with restructurings and divestitures. Non-GAAP net loss per share is calculated as non-GAAP net loss divided by the weighted average shares outstanding.
Adjusted EBITDA. Marin defines Adjusted EBITDA as net loss, adjusted for stock-based compensation expense, depreciation, amortization of internally developed software and intangible assets, capitalization of internally developed software, impairment of goodwill and long-lived assets, benefit from or provision for income taxes, other income, net and non-recurring costs associated with restructurings and divestitures. These amounts are often excluded by other companies to help investors understand the operational performance of their business. The Company uses Adjusted EBITDA as a measurement of its operating performance because it assists in comparing the operating performance on a consistent basis by removing the impact of certain non-cash and non-operating items. Adjusted EBITDA reflects an additional way of viewing aspects of the operations that Marin believes, when viewed with the GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting its business.
This press release contains forward-looking statements including, among other things, statements regarding Marin’s business, impact of investments in product and technology on future operating results, progress on product development efforts, product capabilities, advertiser and customer behavior, effects of the COVID-19 pandemic, planned cost savings measures and estimated cost savings, and future financial results, including its outlook for the third quarter of 2020. These forward-looking statements are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risk factors, including but not limited to the effects of the continuing global outbreak of COVID-19 on demand for our products and services, the amount of digital advertising spend managed by our customers using our products, the productivity of our personnel and other aspects of our business; our ability to maintain or grow sales to new and existing customers; any adverse changes in our relationships with and access to publishers and advertising agencies and strategic business partners, including any adverse changes in our revenue sharing agreement with Google; our ability to manage expenses and liquidity and raise additional capital; our ability complete successfully our recent restructuring plan and realize cost savings; our ability to retain and attract qualified management, technical and sales and marketing personnel; any default under or required repayment of our indebtedness or any delays or reductions in forgiveness of such indebtedness; delays in the release of updates to our product platform or new features or delays in customer deployment of any such updates or features; competitive factors, including but not limited to pricing pressures, entry of new competitors and new applications; quarterly fluctuations in our operating results due to a number of factors; inability to adequately forecast our future revenues, expenses, Adjusted EBITDA, cash flows or other financial metrics; delays, reductions or slower growth in the amount spent on online and mobile advertising and the development of the market for cloud-based software; progress in our efforts to update our software platform; level of usage and advertising spend managed on our platform; our ability to maintain or expand sales of our solutions in channels other than search advertising; any slow-down in the search advertising market generally; any shift in customer digital advertising budgets from search to segments in which we are not as deeply penetrated; the development of the market for digital advertising; acceptance and continued usage of our platform and services by customers and our ability to provide high-quality technical support to our customers; material defects in our platform including those resulting from any updates we introduce to our platform, service interruptions at our single third-party data center or breaches in our security measures; our ability to develop enhancements to our platform; our ability to protect our intellectual property; our ability to manage risks associated with international operations; the impact of fluctuations in currency exchange rates, particularly an increase in the value of the dollar; near term changes in sales of our software services or spend under management may not be immediately reflected in our results due to our subscription business model; adverse changes in general economic or market conditions; and our ability to acquire and integrate other businesses or sell business assets. These forward-looking statements are based on current expectations and are subject to uncertainties and changes in condition, significance, value and effect as well as other risks detailed in documents filed with the Securities and Exchange Commission, including our most recent report on Form 10-K, recent reports on Form 10-Q and current reports on Form 8-K, which we may file from time to time, and all of which are available free of charge at the SEC’s website at www.sec.gov . Any of these risks could cause actual results to differ materially from expectations set forth in the forward-looking statements. All forward-looking statements in this press release reflect Marin’s expectations as of August 7, 2020 . Marin assumes no obligation to, and expressly disclaims any obligation to update any such forward-looking statements after the date of this release.
Marin Software Incorporated
Condensed Consolidated Balance Sheets
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Morgan Stanley joins NFLPA’s financial advisor network to help players manage money
The headquarters of Morgan Stanley in New York.
Shannon Stapleton | Reuters
Morgan Stanley has joined the National Football League Players Association’s financial planning network, the two sides announced on Friday.
Morgan Stanley’s head of Global Sports and Entertainment division, Sandra Richards, will lead the firm’s advisors entering the program, which is designed to offer NFL players assistance with expanding their finances and investments beyond their playing days.
Morgan Stanley will use its long-standing partnership with the NFLPA to continue to build awareness for its wealth management division via the union’s Financial Advisors Registration Program.
The pact is an affiliation-like agreement with no upfront fees attached and grants Morgan Stanley more access to the NFLPA’s network of players and events.
Richards said she wants to get players to “operate differently” when it comes to their finances, using the Covid-19 pandemic as “a living example of what can happen in terms of the unexpected besides a trade or God forbid an injury,” she said.
“This moment is a teaching lesson,” Richards said. “This moment should be the wake-up call.
The NFLPA’s program had its wake-up call in 2016 when it was revealed an advisor was the culprit behind a $43 million loss after bad investments were made on electron bingo machines.
Dana Shuler, NFLPA senior director of player affairs and development, said the union went through a “constant state of making enhancements to the program” after the loss.
Changes included requiring advisors to hold a CFP or CFA and more insurance requirements to include fidelity bonding (insurance protection against advisors who commit fraud).
“That’s a huge difference,” Shuler said, adding the additions ensure advisors are committed to “holistic financial planning and not just coming in to sell products. We wanted comprehensive financial planning for the players.”
Shuler said the NFLPA is only offering eight slots to more prominent firms, four of which have already been occupied with Goldman Sachs, Alliancebernstein, Bessemer Trust, and now Morgan Stanley. Shuler said the NFLPA doesn’t expect to fill the remaining four slots for “some time.”
Asked if the players are more trusting or the NFLPA’s program after what occurred in 2016, Shuler said early feedback is “they like it.”
“The institutions that are participating, they’re highly reputable, and a number of them have made their mark in working with professional athletes, so I think that’s another thing that bodes well for the players,” she added.
Sandra Richards, Head of Morgan Stanley Global Sports & Entertainment
Source: Morgan Stanley
Some players have already opted out of the 2020 season due to concerns about Covid-19. Preserving funds will be important over the new year for those sitting out. In addition, Richards notes more athletes are “being more creative about building out additional revenue sources” using a recent equity deal, like Kansas City Chiefs quarterback Patrick Mahomes’ new equity agreement, as an example.
Richards said the Global Sports and Entertainment division, which has has more than $100 billion under management, will add about 50 advisors to the NFLPA’s program.
With players involved in more endorsement and equity deals as name, image, and likeness continues to increase revenue for athletes, Richards said having a trusted advisor is an “important seat to have at that table if you’re going to maximize your brand and your visibility.
“We’re in a different time and a different age,” she said. “There is so much opportunity out here that you can no longer be satisfied with what you have.”
Updated to clarify Richard’s division has more than $100 billion under management.
Author: Jabari Young
MetaProp Set out to raise $100M for Proptech Investing. It’s been slow going – The Real Deal
Photo illustration of MetaProp partners Zach Aarons and Aaron Block (iStock)
Fifteen months ago, MetaProp, one of the early venture-capital players in proptech, set itself an ambitious goal: raise $100 million to back the next generation of startups.
But in a regulatory filing last month, the firm disclosed it was just halfway to that target, a rate of fundraising that industry players said lags behind the norm. According to the filing, MetaProp raised $51.1 million from 56 investors as of July 2 for MetaProp Ventures III, with the first chunk of money flowing in December 2019.
Meanwhile, MetaProp is launching another, larger fund to make bigger investments in more mature startups, as The Real Deal first reported Wednesday. The new fund, dubbed MetaProp Growth Select I, has a target raise of $200 million, regulatory filings show.
MetaProp, which has backed startups such as Spruce and Side and bills itself “the most active early-stage PropTech investor in the United States,” declined to comment on its fundraising efforts. Sources said its raise might be complicated by a number of factors, including a more crowded field of venture firms vying for investor cash and MetaProp’s reliance on real estate LPs – not to mention Covid.
“If you raised your fund from real estate capital, you’re going to have a huge amount of difficulty raising from them now,” said one investor, speaking on the condition of anonymity. “They are trying to conserve capital. They are not looking to deploy capital into illiquid investments.”
MetaProp’s founders are Zach Aarons, a longtime angel investor and former project manager at development firm Millennium Partners, where his father is a partner; Aaron Block, a former top producer and Chicago office manager at Cushman & Wakefield and a former executive at Russian e-commerce platform RuBay; and Clelia Peters, president of Warburg Realty, who came from Boston Consulting Group. Zak Schwarzman, formerly of Gotham Ventures, joined as a general partner in 2016, and Maureen Waters, a former president of Ten-X, joined last year after Peters left for Bain Capital Ventures.
After launching with an inaugural $5 million friends and family fund, MetaProp raised $40 million in 2018, blowing past its target of $25 million and pulling in money from big real estate names like Cushman, CBRE, JLL and RXR Realty. MetaProp also established an accelerator program at Columbia University, which gave startups 22 weeks of mentorship and up to $250,000 in funding. Aarons, in particular, became a notable speaker in the proptech world.
But since then, the field has gotten a lot more crowded.
Fifth Wall Ventures, the Los Angeles-based firm launched by Blackstone Group alumni Brad Greiwe and Brendan Wallace, has $1 billion under management and in February closed a $100 million retail fund in February. The firm is also raising a $200 million carbon impact fund. Several others have initiated new funds, including Navitas Capital, which disclosed a $100 million fund in January. Moderne Ventures and Camber Creek are both raising undisclosed amounts for new funds, filings show.
(RELATED: The REInterview: Real estate’s biggest VC on the industry’s existential shifts)
VC funds are amassing significant dry powder, or unspent cash waiting to be invested, according to a July report from Pitchbook and the National Venture Capital Association. U.S. VC funds raised $42.7 billion in the first half of 2020, compared to $53.6 billion in all of 2019.
But the report noted that the top 15 funds raised $22.7 billion, or more than half the total amount, shifting the balance of power away from smaller players.
“Much of the success of established VCs has to do with their positive historical performance and name recognition,” the report stated, especially “when no face-to-face meetings are taking place.”
As of Aug. 5, the average time to close a fund was 14.4 months, according to Pitchbook. Sources said a typical round can take up to 18 months to close, and some VC firms pre-seed rounds and line up investors so that they can bust out the gate with the ability to write checks.
According to Pitchbook, MetaProp had $91.1 million in assets under management as of mid-July, with $73 million in dry powder.
Known for backing seed- and early-stage companies, it has invested an average of $3 million in 95 companies. Some of the better-known companies it’s backed include Side, a firm that acts as the broker of record for top residential agents and has raised a total of $70 million, and Spruce, a title insurance startup that raised a $29 million Series B in May. (MetaProp did not participate in Spruce’s Series B.)
Founders said “the Zachs” helped them articulate how technology could benefit an industry that’s been notoriously resistant to change.
“Zach [Aarons] was a great advocate and a guide through the early stage,” said one founder, who said MetaProp bridges a critical gap in the capital markets. “That’s kind of how they pitch themselves, but it’s true. There are a lot of things that are unique to real estate investing that remain opaque to Silicon Valley.”
Sources said the growth fund is a natural progression for an early-stage investor. Some of MetaProp’s portfolio companies have graduated to that stage, which is typically less risky than earlier investments. But unless MetaProp participates in subsequent funding rounds, they risk seeing their stake diluted.
To date, MetaProp’s portfolio has seen 10 exits, Pitchbook data show.
Nine were M&A deals, and one — Irene, a startup that bought seniors’ homes and let them live there — went . Among the success stories was Dynasty Marketplace, an AI-powered leasing assistant acquired for $60 million by AppFolio, the cloud-based software company. Spacious, a restaurant co-working startup, was acquired by WeWork for $42.5 million, although WeWork subsequently shut it down as it scrambled to cut costs.
This week, MetaProp announced it led a $4.8 million seed round in Proper, an AI-powered accounting and bookkeeping startup for the multifamily industry. But during the early days of coronavirus, it focused on triaging existing portfolio companies.
“We wound up doing a lot of our defensive work pretty early,” Schwarzman told TRD in June.
Author: Alexis Manrodt