SOURCE: Marin Software

Marin Software

August 04, 2016 16:15 ET

Marin Software Announces Second Quarter 2016 Financial Results

SAN FRANCISCO, CA--(Marketwired - August 04, 2016) -

  • Reported second quarter net revenues of $25.8 million, as compared to $26.8 during the second quarter of 2015
  • Reported second quarter operating cash flows of $1.5 million, as compared to ($6.0) million during the second quarter of 2015

Marin Software Incorporated (NYSE: MRIN), a leading provider of cross-channel, cross-device, enterprise marketing software for advertisers and agencies, today announced financial results for the second quarter ended June 30, 2016.

"We have made solid progress in optimizing the efficiency of our business over the past year as demonstrated by the significant improvement in our operating margins and our third consecutive quarter of generating positive Adjusted EBITDA," said David A. Yovanno, chief executive officer of Marin Software. "We're encouraged by the progress we have made in unifying our search, social, and display advertising suite. Once complete, we expect to be in an attractive position to further extend our market-leading position."

Second Quarter 2016 Financial Highlights:

  • Net revenues totaled $25.8 million, a year-over-year decrease of 4%, when compared to $26.8 million in the second quarter of 2015.
  • GAAP gross profit was $16.9 million, resulting in a gross margin of 65%, compared to GAAP gross profit of $16.2 million during the second quarter of 2015. Non-GAAP gross profit was $18.3 million, resulting in a non-GAAP gross margin of 71%, compared to non-GAAP gross profit of $17.4 million during the second quarter of 2015.
  • GAAP income from operations was ($4.5) million, compared to ($11.7) million for the second quarter of 2015. GAAP operating margin was (17%), compared to (44%) during the second quarter of 2015. Non-GAAP income from operations was ($1.0) million, compared to ($6.8) million for the second quarter of 2015. Non-GAAP operating margin was (4%), compared to (25%) during the second quarter of 2015.
  • GAAP net income was ($4.4) million, or ($0.12) per share, based on 38.3 million weighted average shares outstanding. This compares to ($12.0) million, or ($0.33) per share, based upon 36.4 million weighted average shares outstanding during the second quarter of 2015. Non-GAAP net income was ($0.9) million, or ($0.02) per share, based upon 38.3 million weighted average shares outstanding. This compares to ($7.1) million, or ($0.20) per share, based on 36.4 million weighted average shares outstanding during the second quarter of 2015.
  • Adjusted EBITDA was $0.5 million, compared to ($5.1) million in the second quarter of 2015.
  • As of June 30, 2016, cash and cash equivalents totaled $35.4 million, compared to $37.3 million as of December 31, 2015.

A reconciliation of GAAP to non-GAAP financial measures has 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."

Second Quarter 2016 Product Release Highlights

  • Released full reporting and management capabilities for Google's recently updated ad format Expanded Text Ads, which is helping drive improved click-through and conversion rates for advertisers.
  • Introduced several product enhancements to its Shopping offering including product feed distribution, SKU level reporting, and enhanced bidding capabilities. Also released Smart Sync for Shopping, currently in alpha, which allows retailers to automatically build Facebook Dynamic Ads from their existing Google Shopping campaigns.
  • Released support for Facebook's Lead Ad format, with mass editing capabilities, and the ability to run reports within the app and through an application programming interface.
  • Introduced Dynamic Ads Prospecting, currently in beta, which enables advertisers running Facebook Dynamic Ads campaigns on Marin Social to have the ability to target prospects as well as re-market to existing customers who have visited their website or app.

Financial Outlook:

As of August 4, 2016, Marin is initiating guidance for its third quarter 2016 as follows:

Forward-Looking Guidance
In millions, except per share data
                   
    Range of Estimate    
    From     To    
Three Months Ending September 30, 2016                  
 Revenues, net   $ 23.4     $ 23.9    
 Non-GAAP loss from operations   $ (2.9 )   $ (2.4 )  
 Non-GAAP net loss per share   $ (0.08 )   $ (0.07 )  
 Weighted-average shares outstanding     38.5            

Non-GAAP loss from operations and non-GAAP net loss per share excludes the effects of stock-based compensation, amortization of internally developed software, amortization of intangible assets, noncash expenses related to warrants, non-recurring costs associated with acquisitions and restructurings, and capitalization of internally developed software.

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, 2016, and its outlook for the future. To access the call, please dial (855) 327-6837 in the U.S. or (778) 327-3988 internationally with reference to the company name and conference title. A live webcast of the conference call will be accessible from Marin Software's website at: http://investor.marinsoftware.com/. Following the completion of the call through 11:59 p.m. Eastern Time on August 11, 2016, a recording will be available for replay at: http://investor.marinsoftware.com/ and a telephone replay will be available by dialing (877) 870-5176 in the U.S. or (858) 384-5517 internationally with the recording access code 10001445.

About Marin Software

Marin Software Incorporated's (NYSE: MRIN) mission is to give advertisers the power to drive higher efficiency, effectiveness, and transparency in their paid marketing programs that run on the world's largest publishers. Marin provides industry leading enterprise marketing software for advertisers and agencies to measure, manage, and optimize more than $7.8 billion in annualized ad spend across the web and mobile devices. Offering an integrated SaaS ad management platform for search, social, and display advertising, Marin helps digital marketers improve financial performance, save time, and make better decisions. Advertisers use Marin to create, target, and convert precise audiences based on recent buying signals from users' search, social, and display interactions. Headquartered in San Francisco, with offices in eight countries, Marin's technology powers marketing campaigns around the globe. For more information about Marin Software, please visit: http://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 expense, the amortization of intangible assets, the capitalization of internally developed software, noncash expenses related to the issuance of warrants, the amortization of internally developed software and the non-recurring costs associated with acquisitions and restructurings. Non-GAAP net loss per share is calculated as non-GAAP net loss divided by the weighted average shares outstanding that are adjusted to assume the conversion of outstanding preferred shares to common shares as of the beginning of the period.

Adjusted EBITDA. Marin defines Adjusted EBITDA as net income (loss), adjusted for stock-based compensation expense, depreciation, the amortization of internally developed software, the amortization of intangible assets, the capitalization of internally developed software, interest expense, net, the benefit from or provision for income taxes, other income or expenses, net and the non-recurring costs associated with acquisitions and restructurings. 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 and for bonus compensation purposes, 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.

Forward-Looking Statements

This press release contains forward-looking statements including, among other things, statements regarding Marin's business, growth, benefits of investment in Marin's software platform, progress on product development efforts, customer adoption of our products, product capabilities and future financial results, including its outlook for the third quarter of 2016. 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 our ability to grow sales to new and existing customers; our ability to expand our sales and marketing capabilities; our ability to retain and attract qualified management and technical personnel; delays in the release of updates to our product platform or new 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; adverse changes in our relationships with and access to publishers and advertising agencies; level of usage and advertising spend managed on our platform; our ability to expand sales of our solutions in channels other than search advertising; any slow-down in the search advertising market generally; 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 the ability to acquire and integrate other businesses, including our acquisitions of Perfect Audience and SocialMoov. 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, 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 4, 2016. 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 Inc.                
Condensed Consolidated Balance Sheets                
(On a GAAP basis)                
                 
    June 30,     December 31,  
(Unaudited; in thousands, except par value)   2016     2015  
Assets                
Current assets                
 Cash and cash equivalents   $ 35,442     $ 37,326  
 Accounts receivable, net     22,963       21,718  
 Prepaid expenses and other current assets     4,290       4,186  
  Total current assets     62,695       63,230  
Property and equipment, net     21,088       21,817  
Goodwill     19,512       19,417  
Intangible assets, net     8,785       10,405  
Other noncurrent assets     1,684       1,323  
  Total assets   $ 113,764     $ 116,192  
Liabilities and Stockholders' Equity                
Current liabilities                
 Accounts payable   $ 2,971     $ 1,710  
 Accrued expenses and other current liabilities     10,384       11,185  
 Deferred revenues     1,082       1,430  
 Current portion of long-term debt     768       1,384  
  Total current liabilities     15,205       15,709  
Long-term debt, less current portion     1,537       1,557  
Other long-term liabilities     4,451       4,795  
  Total liabilities     21,193       22,061  
Stockholders' equity                
 Common stock, $0.001 par value     38       37  
 Additional paid-in capital     282,773       275,604  
 Accumulated deficit     (188,564 )     (179,733 )
 Accumulated other comprehensive loss     (1,676 )     (1,777 )
  Total stockholders' equity     92,571       94,131  
  Total liabilities and stockholders' equity   $ 113,764     $ 116,192  
                 
                 
Marin Software Inc.                                
Condensed Consolidated Statements of Operations                                
(On a GAAP basis)                                
                                 
    Three Months Ended June 30,     Six Months Ended June 30,  
(Unaudited; in thousands, except per share data)   2016     2015     2016     2015  
Revenues, net   $ 25,753     $ 26,775     $ 52,941     $ 53,188  
Cost of revenues (1) (2) (3)     8,894       10,599       18,084       20,308  
 Gross profit     16,859       16,176       34,857       32,880  
Operating expenses (1) (2) (3)                                
Sales and marketing     9,285       13,064       18,392       25,221  
Research and development     7,044       9,194       15,053       17,678  
General and administrative     5,018       5,655       9,987       11,375  
 Total operating expenses     21,347       27,913       43,432       54,274  
 Loss from operations     (4,488 )     (11,737 )     (8,575 )     (21,394 )
Interest expense, net     (34 )     (8 )     (52 )     (19 )
Other income (expenses), net     411       (164 )     444       80  
 Loss before provision for income taxes     (4,111 )     (11,909 )     (8,183 )     (21,333 )
Provision for income taxes     (307 )     (138 )     (648 )     (374 )
 Net loss   $ (4,418 )   $ (12,047 )   $ (8,831 )   $ (21,707 )
Net loss per common share, basic and diluted   $ (0.12 )   $ (0.33 )   $ (0.23 )   $ (0.60 )
Weighted-average shares outstanding, basic and diluted     38,280       36,389       38,023       36,028  
                                 
(1) Includes stock-based compensation expense as follows:                                
 Cost of revenues   $ 309     $ 322     $ 730     $ 551  
 Sales and marketing     422       954       921       1,669  
 Research and development     1,275       2,340       3,297       3,967  
 General and administrative     933       1,323       1,813       2,247  
  Total   $ 2,939     $ 4,939     $ 6,761     $ 8,434  
                                 
(2) Includes amortization of intangible assets as follows:                                
 Cost of revenues   $ 263     $ 276     $ 534     $ 491  
 Sales and marketing     240       247       488       427  
 Research and development     263       276       534       492  
 General and administrative     28       37       64       72  
  Total   $ 794     $ 836     $ 1,620     $ 1,482  
                                 
(3) Includes restructuring related expenses as follows:                                
 Cost of revenues   $ 151     $ -     $ 151     $ -  
 Sales and marketing     211       -       211       -  
 Research and development     48       -       48       -  
 General and administrative     15       -       15       -  
  Total   $ 425     $ -     $ 425     $ -  
         
         
Marin Software Inc.                
Condensed Consolidated Statements of Cash Flows                
(On a GAAP basis)                
                 
    Six Months Ended June 30,  
(Unaudited; in thousands)   2016     2015  
Operating activities                
Net loss   $ (8,831 )   $ (21,707 )
Adjustments to reconcile net loss to net cash provided by (used in) operating activities                
 Depreciation     3,207       3,305  
 Amortization of internally developed software     1,400       1,167  
 Amortization of intangible assets     1,620       1,482  
 (Gain) loss on disposal of property and equipment     (1 )     9  
 Unrealized foreign currency gains     (344 )     (229 )
 Noncash interest expense related to warrants issued in connection with debt     13       17  
 Stock-based compensation related to equity awards and restricted stock     6,761       8,434  
 Provision for bad debts     368       309  
 Deferred income tax benefits     -       (80 )
 Excess tax benefits from stock-based award activities     -       (9 )
 Changes in operating assets and liabilities, net of effect of acquisitions                
  Accounts receivable     (1,323 )     (733 )
  Prepaid expenses and other current assets     (16 )     (1,797 )
  Other assets     (341 )     405  
  Accounts payable     1,275       (1,498 )
  Deferred revenues     (334 )     (1,043 )
  Accrued expenses and other current liabilities     (1,224 )     2,216  
   Net cash provided by (used in) operating activities     2,230       (9,752 )
Investing activities                
Purchases of property and equipment     (617 )     (5,459 )
Proceeds from disposal of property and equipment     3       -  
Capitalization of internally developed software     (2,900 )     (2,424 )
Acquisitions of businesses, net of cash acquired     -       (7,509 )
   Net cash used in investing activities     (3,514 )     (15,392 )
Financing activities                
Repayment of notes payable     (989 )     (2,376 )
Payment of contingent consideration for prior acquisition     (93 )     -  
Repurchase of unvested shares     -       (2 )
Proceeds from exercise of common stock options     189       1,028  
Proceeds from employee stock purchase plan, net     430       185  
Stock issuance costs     -       (51 )
Excess tax benefits from stock-based award activities     -       9  
   Net cash used in financing activities     (463 )     (1,207 )
    Effect of foreign exchange rate changes on cash and cash equivalents     (137 )     (432 )
   Net decrease in cash and cash equivalents     (1,884 )     (26,783 )
Cash and cash equivalents                
Beginning of period     37,326       68,253  
End of period   $ 35,442     $ 41,470  
Supplemental disclosure of noncash investing and financing activities                
Acquisition of equipment through capital leases   $ 339     $ -  
Purchases of property and equipment recorded in accounts payable and accrued expenses     24       1,341  
Issuance of common stock under employee stock purchase plan     328       548  
Issuance of common stock in connection with acquisitions of businesses     -       4,337  
         
         

Marin Software Inc.
Reconciliation of GAAP to Non-GAAP Expenses (1)

                                                             
    Three Months Ended       Year Ended       Three Months Ended  
(Unaudited; in thousands)  
 
March 31,
2015
 
 
 
 
June 30,
2015
 
 
 
 
September 30,
2015
 
 
 
 
December 31,
2015
 
 
 
 
 
 
December 31,
2015
 
 
 
 
 
 
March 31,
2016
 
 
 
 
June 30,
2016
 
 
Sales and Marketing (GAAP)   $ 12,157     $ 13,064     $ 10,835     $ 9,076       $ 45,132       $ 9,107     $ 9,285  
 Less Stock-based compensation     (715 )     (954 )     (435 )     (433 )       (2,537 )       (499 )     (422 )
 Less Amortization of intangible assets     (180 )     (247 )     (247 )     (247 )       (921 )       (248 )     (240 )
 Less Restructuring related expenses     -       -       (659 )     (59 )       (718 )       -       (211 )
Sales and Marketing (Non-GAAP)   $ 11,262     $ 11,863     $ 9,494     $ 8,337       $ 40,956       $ 8,360     $ 8,412  
Research and Development (GAAP)   $ 8,484     $ 9,194     $ 8,162     $ 7,478       $ 33,318       $ 8,009     $ 7,044  
 Less Stock-based compensation     (1,627 )     (2,340 )     (1,864 )     (1,687 )       (7,518 )       (2,022 )     (1,275 )
 Less Amortization of intangible assets     (216 )     (276 )     (271 )     (271 )       (1,034 )       (271 )     (263 )
 Less Restructuring related expenses     -       -       (53 )     -         (53 )       -       (48 )
Plus Capitalization of internally developed software     827       1,597       1,683       1,461         5,568         1,493       1,407  
Research and Development (Non-GAAP)   $ 7,468     $ 8,175     $ 7,657     $ 6,981       $ 30,281       $ 7,209     $ 6,865  
General and Administrative (GAAP)   $ 5,720     $ 5,655     $ 5,882     $ 5,134       $ 22,391       $ 4,969     $ 5,018  
 Less Stock-based compensation     (924 )     (1,323 )     (1,058 )     (1,088 )       (4,393 )       (880 )     (933 )
 Less Amortization of intangible assets     (35 )     (37 )     (37 )     (37 )       (146 )       (36 )     (28 )
 Less Acquisition related expenses     (408 )     (128 )     (68 )     (9 )       (613 )       (9 )     (20 )
 Less Restructuring related expenses     -       -       (264 )     (6 )       (270 )       -       (15 )
General and Administrative (Non-GAAP)   $ 4,353     $ 4,167     $ 4,455     $ 3,994       $ 16,969       $ 4,044     $ 4,022  
                                                             

(1) The sum of the quarterly financial information may vary from full year financial information due to rounding.

 
 
Marin Software Inc.
Reconciliation of GAAP to Non-GAAP Measures (1)
                                                             
    Three Months Ended       Year Ended       Three Months Ended  
(Unaudited; in thousands)  
 
March 31,
2015
 
 
 
 
June 30,
2015
 
 
 
 
September 30,
2015
 
 
 
 
December 31,
2015
 
 
 
 
 
 
December 31,
2015
 
 
 
 
 
 
March 31,
2016
 
 
 
 
June 30,
2016
 
 
Gross Profit (GAAP)   $ 16,704     $ 16,176     $ 15,952     $ 19,561       $ 68,393       $ 17,998     $ 16,859  
 Plus Stock-based compensation     229       322       249       371         1,171         421       309  
 Plus Amortization of internally developed software     542       625       683       700         2,550         681       719  
 Plus Amortization of intangible assets     215       276       271       271         1,033         271       263  
 Plus Restructuring related expenses     -       -       105       68         173         -       151  
Gross Profit (Non-GAAP)   $ 17,690     $ 17,399     $ 17,260     $ 20,971       $ 73,320       $ 19,371     $ 18,301  
Operating Loss (GAAP)   $ (9,657 )   $ (11,737 )   $ (8,927 )   $ (2,127 )     $ (32,448 )     $ (4,087 )   $ (4,488 )
 Plus Stock-based compensation     3,495       4,939       3,606       3,579         15,619         3,822       2,939  
 Plus Amortization of internally developed software     542       625       683       700         2,550         681       719  
 Plus Amortization of intangible assets     646       836       826       826         3,134         826       794  
 Plus Acquisition related expenses     408       128       68       9         613         9       20  
 Plus Restructuring related expenses     -       -       1,081       133         1,214         -       425  
 Less Capitalization of internally developed software     (827 )     (1,597 )     (1,683 )     (1,461 )       (5,568 )       (1,493 )     (1,407 )
Operating (Loss) Income (Non-GAAP)   $ (5,393 )   $ (6,806 )   $ (4,346 )   $ 1,659       $ (14,886 )     $ (242 )   $ (998 )
Net Loss (GAAP)   $ (9,660 )   $ (12,047 )   $ (9,504 )   $ (2,138 )     $ (33,349 )     $ (4,413 )   $ (4,418 )
 Plus Stock-based compensation     3,495       4,939       3,606       3,579         15,619         3,822       2,939  
 Plus Amortization of internally developed software     542       625       683       700         2,550         681       719  
 Plus Amortization of intangible assets     646       836       826       826         3,134         826       794  
 Plus Noncash expenses related to warrants     9       8       19       6         42         7       6  
 Plus Acquisition related expenses     408       128       68       9         613         9       20  
 Plus Restructuring related expenses     -       -       1,081       133         1,214         -       425  
 Less Capitalization of internally developed software     (827 )     (1,597 )     (1,683 )     (1,461 )       (5,568 )       (1,493 )     (1,407 )
Net (Loss) Income (Non-GAAP)   $ (5,387 )   $ (7,108 )   $ (4,904 )   $ 1,654       $ (15,745 )     $ (561 )   $ (922 )
                                                             

(1) The sum of the quarterly financial information may vary from full year financial information due to rounding.

 
 
Marin Software Inc.
Calculation of Non-GAAP Earnings Per Share (1)
                                                             
    Three Months Ended       Year Ended       Three Months Ended  
(Unaudited; in thousands, except per share data)  
 
March 31,
2015
 
 
 
 
June 30,
2015
 
 
 
 
September 30,
2015
 
 
 
 
December 31,
2015
 
 
 
 
 
 
December 31,
2015
 
 
 
 
 
 
March 31,
2016
 
 
 
 
June 30,
2016
 
 
Net (Loss) Income (Non-GAAP)   $ (5,387 )   $ (7,108 )   $ (4,904 )   $ 1,654       $ (15,745 )     $ (561 )   $ (922 )
Weighted-average shares outstanding, basic and diluted     35,745       36,389       36,953       37,212         36,580         37,767       38,280  
Non-GAAP net (loss) income per common share, basic and diluted   $ (0.15 )   $ (0.20 )   $ (0.13 )   $ 0.04       $ (0.43 )     $ (0.01 )   $ (0.02 )
                                                             
                               

Marin Software Inc.
Reconciliation of Net Income (Loss) to Adjusted EBITDA (1)

                                                             
    Three Months Ended       Year Ended       Three Months Ended  
(Unaudited; in thousands)  
 
March 31,
2015
 
 
 
 
June 30,
2015
 
 
 
 
September 30,
2015
 
 
 
 
December 31,
2015
 
 
 
 
 
 
December 31,
2015
 
 
 
 
 
 
March 31,
2016
 
 
 
 
June 30,
2016
 
 
Net Loss   $ (9,660 )   $ (12,047 )   $ (9,504 )   $ (2,138 )     $ (33,349 )     $ (4,413 )   $ (4,418 )
 Depreciation     1,630       1,675       1,861       1,827         6,993         1,665       1,542  
 Amortization of internally developed software     542       625       683       700         2,550         681       719  
 Amortization of intangible assets     646       836       826       826         3,134         826       794  
 Interest expense, net     11       8       63       36         118         18       34  
 Provision for income taxes     236       138       300       331         1,005         341       307  
EBITDA   $ (6,595 )   $ (8,765 )   $ (5,771 )   $ 1,582       $ (19,549 )     $ (882 )   $ (1,022 )
 Stock-based compensation     3,495       4,939       3,606       3,579         15,619         3,822       2,939  
 Capitalization of internally developed software     (827 )     (1,597 )     (1,683 )     (1,461 )       (5,568 )       (1,493 )     (1,407 )
 Acquisition related expenses     408       128       68       9         613         9       20  
 Restructuring related expenses     -       -       1,081       133         1,214         -       425  
 Other (income) expenses, net     (244 )     164       214       (356 )       (222 )       (33 )     (411 )
Adjusted EBITDA   $ (3,763 )   $ (5,131 )   $ (2,485 )   $ 3,486       $ (7,893 )     $ 1,423     $ 544  
                                                             

(1) The sum of the quarterly financial information may vary from full year financial information due to rounding.

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