# EDGAR Filing Document

**Accession Number:** 0001389002
**File Stem:** 0000950170-23-004141
**Filing Date:** 2023-2
**Character Count:** 34332
**Document Hash:** 18d0164fc919edfd734f75c5dee85961
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000950170-23-004141.hdr.sgml**: 20230223

**ACCESSION NUMBER**: 0000950170-23-004141

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20230223

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230223

**DATE AS OF CHANGE**: 20230223

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** MARIN SOFTWARE INC
- **CENTRAL INDEX KEY:** 0001389002
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-COMPUTER PROCESSING & DATA PREPARATION [7374]
- **IRS NUMBER:** 204647180
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-35838
- **FILM NUMBER:** 23660050

**BUSINESS ADDRESS:**
- **STREET 1:** 123 MISSION ST
- **STREET 2:** 25TH FLOOR
- **CITY:** SAN FRANCISCO
- **STATE:** CA
- **ZIP:** 94105
- **BUSINESS PHONE:** 415-399-2580

**MAIL ADDRESS:**
- **STREET 1:** 123 MISSION ST
- **STREET 2:** 25TH FLOOR
- **CITY:** SAN FRANCISCO
- **STATE:** CA
- **ZIP:** 94105

?xml version="1.0" encoding="ASCII"? 8-K

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, DC 20549**

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**FORM** 8-K

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**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported):** February 23, 2023

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Marin Software Incorporated

**(Exact name of Registrant as Specified in Its Charter)**

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| | | |
|:---|:---|:---|
| Delaware | 001-35838 | 20-4647180 |
| **(State or Other Jurisdiction**<br>**of Incorporation)** | **(Commission File Number)** | **(IRS Employer**<br>**Identification No.)** |
| 845 Market Street**,** Suite 450<br>San Francisco**,** California **94103** |  | 94103 |
| **(Address of Principal Executive Offices)** |  | **(Zip Code)** |

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**(**415**)** 399-2580

**Registrant's Telephone Number, Including Area Code**

**(Former Name or Former Address, if Changed Since Last Report)**

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common stock, par value $0.001 per share | MRIN | The Nasdaq Stock Market LLC |

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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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**Item 2.02 Results of Operations and Financial Condition.**

On February 23, 2023, Marin Software Incorporated (the "Company") issued a press release announcing its financial results for the quarter and year ended December 31, 2022. The press release is being furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein.

The information in this Current Report on Form 8-K and Exhibit 99.1 attached hereto are being furnished pursuant to Item 2.02 of Form 8-K and will not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor will it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in such filing.

**Item 9.01 Financial Statements and Exhibits.**

(d) Exhibits.

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| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 99.1 | [<u>Press release issued by Marin Software Incorporated on February 23, 2023.</u>](mrin-ex99_1.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

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| | | |
|:---|:---|:---|
|  | Marin Software Incorporated | Marin Software Incorporated |
| Date: February 23, 2023 | By: | /s/ Robert Bertz |
|  |  | **Robert Bertz** |
|  |  | **Chief Financial Officer** |

---

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## Ex-99

**Exhibit 99.1**

**Marin Software Announces Fourth Quarter and Full Year 2022 Financial Results**

**San Francisco, CA (February 23, 2023)** – Marin Software Incorporated (NASDAQ: MRIN), a leading provider of digital marketing software for performance-driven advertisers and agencies, today announced financial results for the fourth quarter and full year ended December 31, 2022.

"Every advertiser faces two fundamental questions: how much should I be spending and where should I spend?" said Chris Lien, Marin Software's Chairman and CEO. "The new Budget Optimizer in MarinOne aims to help advertisers answer these questions and get the most out of their investment in an increasingly fragmented landscape."<br>

**<u>Fourth Quarter 2022 Product Highlights:</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Launched MarinOne Budget Optimizer, designed to help customers automate hitting their spending targets. Powerful machine learning combined with customizable rules helps advertisers maximize the return on their marketing investment. The pacing dashboards and alerts in Budget Optimizer help advertisers stay on plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Introduced support for Walmart Connect, allowing brands and agencies to manage their Walmart retail media programs in MarinOne. The integration includes full campaign management, editing budgets and bids, cost and revenue reporting, and more.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Introduced support for Amazon Portfolios, which allow users to group and organize their Sponsored Products and Sponsored Brand campaigns into collections that mirror the structure of their business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Updated our Apple Search Ads support to include creating and updating keywords via bulk and support for search term campaigns and search tab campaigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Expanded MarinOne Insights with four new recommendations – Conversion latency, Dedicated group landing pages, Group restructure opportunities, and Single-use landing pages. We also introduced one-click implementation support for additional Insights, bringing the total list to 21 Insights that can be implemented in a single click.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Added MarinOne support for Scheduled Actions, which allow users to pause or resume campaigns, groups, or ads at a specific time in the future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Introduced a new keyword expansion tool to help users identify new keywords and negative keywords for Amazon, Google, and Microsoft publisher accounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Rolled out additional bulk upload options natively in MarinOne, including geo targets, multi-client uploads, actions by dimensions, app extensions, and dynamic targets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Added new filters within Strategies, allowing users to apply filters for the objects housed within a Strategy, including Campaigns, Groups, Keywords, Product Groups, and Dynamic Targets.

**<u>Fourth Quarter 2022 Financial Updates:</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Net revenues totaled $5.2 million, a year-over-year decrease of 12% when compared to $5.9 million in the fourth quarter of 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•GAAP loss from operations was ($5.2) million, resulting in a GAAP operating margin of (102%), as compared to a GAAP loss from operations of ($5.3) million and a GAAP operating margin of (91%) for the fourth quarter of 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Non-GAAP loss from operations was ($4.2) million, resulting in a non-GAAP operating margin of (82%), as compared to a non-GAAP loss from operations of ($3.8) million and a non-GAAP operating margin of (65%) for the fourth quarter of 2021.

**<u>Full Year 2022 Financial Updates:</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Net revenues totaled $20.0 million, a year-over-year decrease of 18% when compared to $24.4 million in 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•GAAP loss from operations was ($22.0) million, resulting in a GAAP operating margin of (110%), as compared to a GAAP loss from operations of ($14.1) million and a GAAP operating margin of (58%) for 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Non-GAAP loss from operations was ($17.7) million, resulting in a non-GAAP operating margin of (88%), as compared to a non-GAAP loss from operations of ($12.0) million and a non-GAAP operating margin of (49%) for 2021.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Cash and cash equivalents were $28.0 million in the aggregate at December 31, 2022.

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."

**<u>Financial Outlook:</u>**

Marin is providing guidance for its first quarter of 2023 as follows:

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| | | |
|:---|:---|:---|
| **Forward-Looking Guidance** | **Forward-Looking Guidance** | **Forward-Looking Guidance** |
| **In millions** | **In millions** | **In millions** |
|  | **Range of Estimate** | **Range of Estimate** |
|  | **From** | **To** |
| **Three Months Ending March 31, 2023** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Revenues, net | $4.0 | $4.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-GAAP loss from operations | (5.3) | (4.8) |

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Non-GAAP loss from operations excludes the effects of stock-based compensation, amortization of internally developed software, impairment of long-lived assets, capitalization of internally developed software, non-recurring costs associated with restructurings, and certain professional fees that the Company has incurred in responding to third-party subpoenas that the Company has received related to governmental investigations of Google and Facebook.

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.

**<u>Quarterly Results Conference Call</u>**

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 and full year ended December 31, 2022, and its outlook for the future. To access the call, please dial (877) 704-4453 in the United States or (201) 389-0920 internationally with reference to conference ID 13736046. A live webcast of the conference call will be accessible at https://viavid.webcasts.com/starthere.jsp?ei=1596066&tp_key=5b4b430b71. Following the completion of the call through 11:59 p.m. Eastern Time on March 2, 2023, 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 13736046.

**<u>About Marin Software</u>**

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.

**<u>Non-GAAP Financial Measures</u>**

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

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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, CARES Act employee retention credit, non-recurring costs associated with restructurings, and certain professional fees that the Company has incurred in responding to third-party subpoenas that the Company has received related to governmental investigations of Google and Facebook. 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, CARES Act employee retention credit, other income, net, non-recurring costs associated with restructurings, and certain professional fees that the Company has incurred in responding to third-party subpoenas that the Company has received related to governmental investigations of Google and Facebook. 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.

**<u>Forward-Looking Statements</u>**

**Investor Relations, Marin Software**

ir@marinsoftware.com

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**Media Contact**

Wesley MacLaggan

Marketing, Marin Software

(415) 399-2580

press@marinsoftware.com

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| | | |
|:---|:---|:---|
| **Marin Software Incorporated** |  |  |
| **Condensed Consolidated Balance Sheets** |  |  |
| **(On a GAAP basis)** |  |  |
|  | **December 31,** | **December 31,** |
| **(Unaudited; in thousands, except par value)** | **2022** | **2021** |
| **Assets:** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $27957 | $46842 |
| &nbsp;&nbsp;&nbsp;Restricted cash |  | 215 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 4521 | 4633 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 2016 | 2324 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 34494 | 54014 |
| Property and equipment, net | 3213 | 3622 |
| Right-of-use assets, operating leases | 3844 | 1660 |
| Other non-current assets | 533 | 535 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $42084 | $59831 |
| **Liabilities and Stockholders' Equity:** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $1011 | $975 |
| &nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | 3513 | 6176 |
| &nbsp;&nbsp;&nbsp;Note payable, current |  | 2226 |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities | 1645 | 2006 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 6169 | 11383 |
| Note payable, net of current |  | 1094 |
| Operating lease liabilities, non-current | 2199 |  |
| Other long-term liabilities | 1002 | 1096 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 9370 | 13573 |
| Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;Common stock, $0.001 par value | 17 | 15 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 355996 | 351394 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (322334) | (304107) |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (965) | (1044) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 32714 | 46258 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $42084 | $59831 |

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| | | | | |
|:---|:---|:---|:---|:---|
| **Marin Software Incorporated** |  |  |  |  |
| **Condensed Consolidated Statements of Operations** |  |  |  |  |
| **(On a GAAP basis)** |  |  |  |  |
|  | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| **(Unaudited; in thousands, except per share data)** | **2022** | **2021** | **2022** | **2021** |
| Revenues, net | $5161 | $5863 | $20019 | $24420 |
| Cost of revenues | 3083 | 3294 | 12795 | 12885 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross profit | 2078 | 2569 | 7224 | 11535 |
| **Operating expenses:** |  |  |  |  |
| Sales and marketing | 1962 | 1702 | 6997 | 5482 |
| Research and development | 2901 | 3045 | 11832 | 10788 |
| General and administrative | 2459 | 3151 | 10396 | 9327 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 7322 | 7898 | 29225 | 25597 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss from operations | (5244) | (5329) | (22001) | (14062) |
| Other income, net | 190 | 138 | 4079 | 984 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss before income taxes | (5054) | (5191) | (17922) | (13078) |
| Income tax provision (benefit) | 64 | (90) | 305 | (134) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss | $(5118) | $(5101) | $(18227) | $(12944) |
| Net loss per common share, basic and diluted | $(0.31) | $(0.33) | $(1.15) | $(1.01) |
| Weighted-average shares outstanding, basic and diluted | 16337 | 15513 | 15891 | 12846 |

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| | | |
|:---|:---|:---|
| **Marin Software Incorporated** |  |  |
| **Condensed Consolidated Statements of Cash Flows** |  |  |
| **(On a GAAP basis)** |  |  |
|  | **Year Ended December 31,** | **Year Ended December 31,** |
| **(Unaudited; in thousands)** | **2022** | **2021** |
| **Operating activities:** |  |  |
| Net loss | $(18227) | $(12944) |
| Adjustments to reconcile net loss to net cash used in operating activities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 447 | 851 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of internally developed software | 1810 | 2356 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred costs to obtain and fulfill contracts | 352 | 305 |
| &nbsp;&nbsp;&nbsp;&nbsp;Forgiveness of Paycheck Protection Program loan | (3117) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense |  | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on disposals of property and equipment and right-of-use assets | 28 | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized foreign currency losses | 80 | 50 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation related to equity awards | 3555 | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for bad debts | 16 | (131) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change in operating leases | (345) | (531) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax benefits | 48 | (12) |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 73 | 563 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | (102) | 353 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 31 | 47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other liabilities | (2786) | (907) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (18137) | (7942) |
| **Investing activities:** |  |  |
| Purchases of property and equipment | (24) | (6) |
| Capitalization of internally developed software | (1740) | (1290) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (1764) | (1296) |
| **Financing activities:** |  |  |
| Proceeds from issuance of common shares through at-the-market offering, net of offering costs | 1333 | 41888 |
| Payment of principal on finance lease liabilities |  | (15) |
| Repayment of Paycheck Protection Program loan | (203) |  |
| Employee taxes paid for withheld shares upon equity award settlement | (424) | (428) |
| Proceeds from employee stock purchase plan, net | 34 | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 740 | 41479 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effect of foreign exchange rate changes on cash and cash equivalents and restricted cash | 61 | (4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net (decrease) increase in cash and cash equivalents and restricted cash | (19100) | 32237 |
| **Cash and cash equivalents and restricted cash:** |  |  |
| Beginning of year | 47057 | 14820 |
| End of the year | $27957 | $47057 |

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Marin Software Incorporated** |  |  |  |  |  |  |  |  |  |  |
| **Reconciliation of GAAP to Non-GAAP Expenses** |  |  |  |  |  |  |  |  |  |  |
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Year Ended** |
|  | **Mar 31,** | **Jun 30,** | **Sep 30,** | **Dec 31,** | **Dec 31,** | **Mar 31,** | **Jun 30,** | **Sep 30,** | **Dec 31,** | **Dec 31,** |
| **(Unaudited; in thousands)** | **2021** | **2021** | **2021** | **2021** | **2021** | **2022** | **2022** | **2022** | **2022** | **2022** |
| Sales and Marketing (GAAP) | $1246 | $1268 | $1266 | $1702 | $5482 | $1787 | $1588 | $1660 | $1962 | $6997 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less Stock-based compensation | (66) | (70) | (122) | (150) | (408) | (175) | (157) | (99) | (165) | (596) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less Restructuring related expenses | 2 |  |  | (136) | (134) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plus CARES Act employee retention credit | 42 | 42 | 60 |  | 144 |  |  |  |  |  |
| Sales and Marketing (Non-GAAP) | $1224 | $1240 | $1204 | $1416 | $5084 | $1612 | $1431 | $1561 | $1797 | $6401 |
| Research and Development (GAAP) | $2399 | $2667 | $2677 | $3045 | $10788 | $2917 | $2980 | $3034 | $2901 | $11832 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less Stock-based compensation | (98) | (133) | (159) | (204) | (594) | (224) | (213) | (303) | (256) | (996) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less Restructuring related expenses | (2) |  |  |  | (2) | (36) | (59) | (76) |  | (171) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plus CARES Act employee retention credit | 252 | 238 | 245 |  | 735 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plus Capitalization of internally developed software | 434 | 238 | 362 | 343 | 1377 | 512 | 408 | 449 | 397 | 1766 |
| Research and Development (Non-GAAP) | $2985 | $3010 | $3125 | $3184 | $12304 | $3169 | $3116 | $3104 | $3042 | $12431 |
| General and Administrative (GAAP) | $1869 | $1995 | $2312 | $3151 | $9327 | $2469 | $2545 | $2923 | $2459 | $10396 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less Stock-based compensation | (63) | (130) | (248) | (287) | (728) | (334) | (340) | (405) | (403) | (1482) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less Restructuring related expenses | (2) |  |  |  | (2) |  |  | (78) |  | (78) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plus CARES Act employee retention credit | 70 | 66 | 67 |  | 203 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less Third-party subpoena-related expenses |  |  | (87) | (405) | (492) | (72) | (99) | (198) | (72) | (441) |
| General and Administrative (Non-GAAP) | $1874 | $1931 | $2044 | $2459 | $8308 | $2063 | $2106 | $2242 | $1984 | $8395 |

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Marin Software Incorporated** |  |  |  |  |  |  |  |  |  |  |
| **Reconciliation of GAAP to Non-GAAP Measures** |  |  |  |  |  |  |  |  |  |  |
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Year Ended** |
|  | **Mar 31,** | **Jun 30,** | **Sep 30,** | **Dec 31,** | **Dec 31,** | **Mar 31,** | **Jun 30,** | **Sep 30,** | **Dec 31,** | **Dec 31,** |
| **(Unaudited; in thousands)** | **2021** | **2021** | **2021** | **2021** | **2021** | **2022** | **2022** | **2022** | **2022** | **2022** |
| Gross Profit (GAAP) | $3067 | $2919 | $2980 | $2569 | $11535 | $1833 | $1517 | $1796 | $2078 | $7224 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plus Stock-based compensation | 35 | 46 | 103 | 107 | 291 | 124 | 90 | 148 | 119 | 481 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plus Amortization of internally developed software | 624 | 596 | 586 | 550 | 2356 | 542 | 431 | 419 | 418 | 1810 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plus Restructuring related expenses | 1 |  |  | 42 | 43 | 17 |  |  |  | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less CARES Act employee retention credit | (175) | (179) | (174) |  | (528) |  |  |  |  |  |
| Gross Profit (Non-GAAP) | $3552 | $3382 | $3495 | $3268 | $13697 | $2516 | $2038 | $2363 | $2615 | $9532 |
| Operating Loss (GAAP) | $(2447) | $(3011) | $(3275) | $(5329) | $(14062) | $(5340) | $(5596) | $(5821) | $(5244) | $(22001) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plus Stock-based compensation | 262 | 379 | 632 | 748 | 2021 | 857 | 800 | 955 | 943 | 3555 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plus Amortization of internally developed software | 624 | 596 | 586 | 550 | 2356 | 542 | 431 | 419 | 418 | 1810 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plus Restructuring related expenses | 3 |  |  | 178 | 181 | 53 | 59 | 154 |  | 266 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less CARES Act employee retention credit | (539) | (525) | (546) |  | (1610) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less Capitalization of internally developed software | (434) | (238) | (362) | (343) | (1377) | (512) | (408) | (449) | (397) | (1766) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plus Third-party subpoena-related expenses |  |  | 87 | 405 | 492 | 72 | 99 | 198 | 72 | 441 |
| Operating Loss (Non-GAAP) | $(2531) | $(2799) | $(2878) | $(3791) | $(11999) | $(4328) | $(4615) | $(4544) | $(4208) | $(17695) |
| Net Loss (GAAP) | $(2212) | $(2501) | $(3130) | $(5101) | $(12944) | $(1999) | $(5374) | $(5736) | $(5118) | $(18227) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plus Stock-based compensation | 262 | 379 | 632 | 748 | 2021 | 857 | 800 | 955 | 943 | 3555 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plus Amortization of internally developed software | 624 | 596 | 586 | 550 | 2356 | 542 | 431 | 419 | 418 | 1810 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plus Restructuring related expenses | 3 |  |  | 178 | 181 | 53 | 59 | 154 |  | 266 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less CARES Act employee retention credit | (539) | (525) | (546) |  | (1610) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less Capitalization of internally developed software | (434) | (238) | (362) | (343) | (1377) | (512) | (408) | (449) | (397) | (1766) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plus Third-party subpoena-related expenses |  |  | 87 | 405 | 492 | 72 | 99 | 198 | 72 | 441 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less Forgiveness and repayment of Paycheck Protection Program loan |  |  |  |  |  | (3320) |  |  |  | (3320) |
| Net Loss (Non-GAAP) | $(2296) | $(2289) | $(2733) | $(3563) | $(10881) | $(4307) | $(4393) | $(4459) | $(4082) | $(17241) |

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Marin Software Incorporated** |  |  |  |  |  |  |  |  |  |  |
| **Calculation of Non-GAAP Earnings Per Share** |  |  |  |  |  |  |  |  |  |  |
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Year Ended** |
|  | **Mar 31,** | **Jun 30,** | **Sep 30,** | **Dec 31,** | **Dec 31,** | **Mar 31,** | **Jun 30,** | **Sep 30,** | **Dec 31,** | **Dec 31,** |
| **(Unaudited; in thousands, except per share data)** | **2021** | **2021** | **2021** | **2021** | **2021** | **2022** | **2022** | **2022** | **2022** | **2022** |
| Net Loss (Non-GAAP) | $(2296) | $(2289) | $(2733) | $(3563) | $(10881) | $(4307) | $(4393) | $(4459) | $(4082) | $(17241) |
| Weighted-average shares outstanding, basic and diluted | 10300 | 11034 | 14500 | 15513 | 12846 | 15537 | 15651 | 16030 | 16337 | 15891 |
| Non-GAAP net loss per common share, basic and diluted | $(0.22) | $(0.21) | $(0.19) | $(0.23) | $(0.85) | $(0.28) | $(0.28) | $(0.28) | $(0.25) | $(1.08) |

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Marin Software Incorporated** |  |  |  |  |  |  |  |  |  |  |
| **Reconciliation of Net Loss to Adjusted EBITDA** |  |  |  |  |  |  |  |  |  |  |
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Year Ended** |
|  | **Mar 31,** | **Jun 30,** | **Sep 30,** | **Dec 31,** | **Dec 31,** | **Mar 31,** | **Jun 30,** | **Sep 30,** | **Dec 31,** | **Dec 31,** |
| **(Unaudited; in thousands)** | **2021** | **2021** | **2021** | **2021** | **2021** | **2022** | **2022** | **2022** | **2022** | **2022** |
| Net Loss | $(2212) | $(2501) | $(3130) | $(5101) | $(12944) | $(1999) | $(5374) | $(5736) | $(5118) | $(18227) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 240 | 223 | 207 | 181 | 851 | 179 | 199 | 57 | 12 | 447 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of internally developed software | 624 | 596 | 586 | 550 | 2356 | 542 | 431 | 419 | 418 | 1810 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for (benefit from) income taxes | 92 | (289) | 153 | (90) | (134) | 61 | 75 | 105 | 64 | 305 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 262 | 379 | 632 | 748 | 2021 | 857 | 800 | 955 | 943 | 3555 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CARES Act employee retention credit | (539) | (525) | (546) |  | (1610) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capitalization of internally developed software | (434) | (238) | (362) | (343) | (1377) | (512) | (408) | (449) | (397) | (1766) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restructuring related expenses | 3 |  |  | 178 | 181 | 53 | 59 | 154 | - | 266 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other income, net | (327) | (221) | (298) | (138) | (984) | (3402) | (297) | (190) | (190) | (4079) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Third-party subpoena-related expenses |  |  | 87 | 405 | 492 | 72 | 99 | 198 | 72 | 441 |
| Adjusted EBITDA | $(2291) | $(2576) | $(2671) | $(3610) | $(11148) | $(4149) | $(4416) | $(4487) | $(4196) | $(17248) |

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