Marin Software (MRIN) AI Stock Analysis

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Marin Software

(NASDAQ:MRIN)

Rating:45Neutral

Price Target:―

Marin Software's overall score reflects its significant financial challenges, underscored by declining revenues and persistent losses. Technical analysis suggests mixed signals, with potential for oversold conditions. Valuation concerns arise from a negative P/E ratio and lack of dividend yield. The earnings call provided some positive developments in operational efficiency, but financial constraints remain a key concern.

Marin Software (MRIN) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$2.54M

Dividend YieldN/A

Average Volume (3M)3.25M

Price to Earnings (P/E)―

Beta (1Y)-0.46

Revenue Growth-9.89%

EPS Growth47.46%

CountryUS

Employees104

SectorTechnology

Sector Strength83

IndustrySoftware - Application

Share Statistics

EPS (TTM)-3.94

Shares Outstanding3,188,518

10 Day Avg. Volume48,598

30 Day Avg. Volume3,250,604

Financial Highlights & Ratios

PEG Ratio-0.02

Price to Book (P/B)0.57

Price to Sales (P/S)0.00

P/FCF Ratio-0.56

Enterprise Value/Market Cap-0.13

Enterprise Value/Revenue>-0.01

Enterprise Value/Gross Profit-0.03

Enterprise Value/Ebitda<0.01

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Marin Software Business Overview & Revenue Model

Company DescriptionMarin Software Incorporated, together with its subsidiaries, provides enterprise marketing software for advertisers and agencies in the United States, the United Kingdom, and internationally. It offers MarinOne, a search, social, and eCommerce advertising platform; Marin Search to manage advertising campaigns for advertisers and agencies; and Marin Social that enables advertisers to manage their Facebook, Instagram, and Twitter advertising, as well as managed services. The company markets and sells its solutions to advertisers directly, and through advertising agencies that use its platform on behalf of their customers. Marin Software Incorporated was incorporated in 2006 and is headquartered in San Francisco, California.

How the Company Makes MoneyMarin Software generates revenue primarily through subscription fees for its MarinOne platform. Clients, including advertisers and agencies, pay for access to the platform's suite of digital marketing tools, which help them manage and optimize their advertising campaigns. The company may also earn revenue from related services such as training and support. Strategic partnerships with major digital advertising platforms like Google, Facebook, and Amazon enhance Marin Software's offerings and attract a broad client base looking to streamline their advertising efforts across multiple channels. Additionally, the company's focus on continuous innovation and integration of advanced technologies, such as artificial intelligence and machine learning, contributes to its ability to offer competitive solutions in the dynamic digital marketing landscape.

Marin Software Earnings Call Summary

Earnings Call Date:May 01, 2025

(Q3-2024)

% Change Since: 31.15%|

Next Earnings Date:Jul 31, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mix of positive and negative developments. While revenue exceeded guidance and strategic partnerships were renewed, the company continues to face financial challenges, including a year-over-year revenue decline and a decrease in cash balance. The sentiment is balanced with notable improvements in operational efficiency and product offerings countered by financial constraints and restructuring efforts.

Q3-2024 Updates

Positive Updates

Revenue Exceeds Guidance

Q3 2024 revenues came in above guidance at $4.3 million, representing a moderation in revenue decline to 4% year-over-year.

Operating Loss Improvement

The non-GAAP operating loss was reduced by $1.1 million year-over-year, benefiting from a restructuring and reduction in force plan initiated in July 2023.

Renewal of Strategic Partnership with Google

Marin Software renewed its strategic partnership agreement with Google for another 3 years, maintaining the same minimum quarterly payments.

Introduction of New Product Features

New budget floor controls in Ascend and enhanced Reddit integration in MarinOne were introduced, offering improved campaign management and budget compliance.

Successful Customer Outcomes

Fusion 92 improved budget compliance from 9% to 96% using Marin's budgeting platform, saving over 15 hours of manual work per week.

Negative Updates

Decrease in Cash Balance

The total cash balance decreased to $5.6 million from $7.9 million at the end of the previous quarter.

Headcount Reduction

A 26% headcount reduction was implemented to align costs with current revenues, projected to save approximately $3.6 million annually.

Continued Revenue Decline

Despite moderation, revenue still declined by 4% year-over-year with existing customer churn outpacing new bookings.

Exploration of Financing and Strategic Transactions

The company is exploring opportunities to raise additional financing and potential strategic transactions, with no assurances on completion.

Company Guidance

During Marin Software's Q3 2024 earnings call, the company reported a revenue of $4.3 million, which exceeded their guidance range, although it marked a 4% year-over-year decline. The non-GAAP operating loss for the quarter was $1.8 million, $0.1 million better than the high end of their guidance, primarily due to realized savings from the restructuring plan initiated in July 2023. Marin's cash balance at the end of Q3 was $5.6 million. The company announced a 26% headcount reduction in October, projected to save $3.6 million annually. They renewed their strategic partnership with Google for another three years. For Q4 2024, Marin forecasts revenue between $4.0 million and $4.2 million, with a non-GAAP operating loss ranging from $1.4 million to $1.1 million.

Marin Software Financial Statement Overview

Summary

Marin Software is facing significant financial challenges marked by declining revenues, persistent losses, and negative cash flows. Despite a strong equity position and controlled leverage, profitability issues and cash flow challenges pose risks. Improvements in operational efficiency and revenue growth are essential for financial health.

Income Statement

Negative

Marin Software has been experiencing a consistent decline in total revenue over the past years, with a significant drop from $49.04M in 2019 to $16.71M in TTM 2024. Gross profit margin in TTM is approximately 60.5%, which is a positive aspect. However, the company is struggling with profitability as shown by its negative net profit margin and EBIT margin. Although there is a slight improvement in EBITDA margin from 2023 to TTM 2024, the overall profitability remains weak.

Balance Sheet

Neutral

The company has managed to maintain a relatively low debt-to-equity ratio, indicating prudent leverage management. The equity ratio is around 63.0% in TTM 2024, suggesting a strong equity base relative to its assets. However, the return on equity is negative due to consistent losses, which is a concern for potential investors.

Cash Flow

Negative

Marin Software's cash flow is under pressure, with both operating and free cash flows being negative in TTM 2024. The free cash flow growth rate has shown improvement from 2023 to TTM 2024, but remains negative, indicating cash flow challenges. The ratios of cash flow to net income reflect the ongoing struggle with cash generation relative to net income.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
16.71M	17.73M	20.02M	24.42M	29.98M	49.04M
	Gross Profit
10.11M	6.10M	7.22M	11.54M	12.04M	26.19M
	EBIT
-7.40M	-22.81M	-22.00M	-14.06M	-16.30M	-17.93M
	EBITDA
-6.01M	-16.28M	-19.74M	-10.86M	-11.29M	-13.44M
	Net Income Common Stockholders
-12.02M	-21.92M	-18.23M	-12.94M	-14.05M	-12.41M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.56M	11.36M	27.96M	46.84M	14.28M	11.13M
	Total Assets
16.61M	19.32M	42.08M	59.83M	37.01M	42.29M
	Total Debt
1.61M	1.91M	3.84M	5.33M	11.93M	8.97M
	Net Debt
-7.95M	-9.45M	-24.11M	-41.52M	-2.35M	-2.17M
	Total Liabilities
5.02M	5.68M	9.37M	13.57M	21.19M	21.23M
	Stockholders Equity
11.58M	13.64M	32.71M	46.26M	15.81M	21.06M
Cash Flow		Free Cash Flow
-7.89M	-16.39M	-19.90M	-9.24M	-7.56M	-3.90M
	Operating Cash Flow
-7.59M	-14.58M	-18.14M	-7.94M	-5.67M	-1.24M
	Investing Cash Flow
-296.00K	-1.81M	-1.76M	-1.30M	-1.88M	1.61M
	Financing Cash Flow
-123.00K	-209.00K	740.00K	41.48M	10.23M	260.00K

Marin Software Technical Analysis

Technical Analysis Sentiment

Negative

Last Price0.80

Price Trends

50DMA

0.90

Negative

100DMA

1.36

Negative

200DMA

1.78

Negative

Market Momentum

MACD

-0.05

Positive

RSI

44.39

Neutral

STOCH

36.46

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MRIN, the sentiment is Negative. The current price of 0.8 is below the 20-day moving average (MA) of 0.92, below the 50-day MA of 0.90, and below the 200-day MA of 1.78, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 44.39 is Neutral, neither overbought nor oversold. The STOCH value of 36.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MRIN.

Marin Software Risk Analysis

Marin Software disclosed 52 risk factors in its most recent earnings report. Marin Software reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 3 New Risks

There is substantial doubt about our ability to continue as a going concern, which may hinder our ability to obtain further financing and may require us to pursue a dissolution and liquidation. Q3, 2024

Our reported financial results may be adversely affected by changes in GAAP. Q3, 2024

If we do not complete a strategic transaction, or do not secure sufficient additional financing, we are highly likely to pursue dissolution and liquidation. Q3, 2024

Marin Software Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SEMR	72 Outperform	$1.53B	222.37	2.81%	―	22.75%	-47.45%
DSP	70 Outperform	$910.34M	483.39	4.15%	―	30.64%	―
PUBM	70 Outperform	$580.46M	142.22	1.94%	―	3.62%	-53.21%
Sector *	62 Neutral	$11.80B	10.37	-7.29%	2.91%	7.39%	-7.96%
LAW	59 Neutral	$270.59M	―	-33.75%	―	3.84%	-76.01%
BMBL	56 Neutral	$548.48M	―	-46.57%	―	-2.39%	-2961.26%
MRIN	45 Neutral	$2.54M	―	-91.75%	―	-9.89%	47.46%

* Technology Sector Average

Performance Comparison

MRIN

Marin Software

0.80

-1.68

-67.74%

PUBM

PubMatic

12.06

-9.08

-42.95%

DSP

Viant Technology

14.55

5.32

57.64%

BMBL

Bumble

5.31

-5.67

-51.64%

SEMR

SEMrush Holdings

10.34

-4.61

-30.84%

LAW

CS Disco

4.45

-1.48

-24.96%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.