Marin Software Incorporated (NASDAQ:MRIN) Q3 2023 Earnings Call Transcript

Our non-GAAP operating loss was $2.9 million for the third quarter of 2023 as compared to a $4.5 million loss for the third quarter of 2022. The $2.9 million non-GAAP operating loss in Q3 beat the high end of our guidance by approximately $0.3 million. The decrease in operating loss as compared to Q3 2022 and is primarily attributable to realized savings from our restructuring plan implemented during the quarter, which were partially offset by lower revenue in the current period as compared to last year. Our non-GAAP operating expenses in Q3 2023 of $5.3 million represents a 23% decrease when compared to the year ago quarter. The decrease is attributable to the implementation of our restructuring plan, which was nearly complete as of the end of the third quarter.

We ended the quarter with 116 total head count globally versus 173 a year ago. The decrease in head count year-over-year is due to the reduction in force that was commenced in July as part of our restructuring plan. About half of our remaining team is in technology roles, which we believe allows us to continue to deliver new products, features and functionality to drive results for leading brands and their agencies. As I have mentioned, we commenced the implementation of a restructuring plan in July of 2023. The restructuring plan is expected to reduce our pretax cost structure by approximately $10 million to $13 million on an annualized basis. Close to $10 million of the estimated annualized cost savings is expected to come from the reduction in force, which will reduce our workforce globally by approximately 61 positions as well as approximately 15 full-time equivalent contractor roles.

The reduction in force was substantially complete by the end of the third quarter, and we expect the remaining reductions to be completed by the end of this year. We expect to incur approximately $1.8 million in restructuring costs, substantially all of which relates to severance and other time termination benefits. We began to realize the associated savings during the third quarter of 2023, and we expect to realize all of the estimated savings next year. This restructuring helps to bring our expense base more in line with our current revenues. In terms of our balance sheet, we ended the quarter with a total cash balance of $13.6 million as compared to $19 million at the end of the previous quarter. We incurred approximately $1.7 million of the total estimated $1.8 million and onetime restructuring costs during the third quarter.

Moving on to our outlook. For Q4 2023, we expect revenue to be in the range of $4.1 million to $4.4 million and our non-GAAP operating loss is expected to be in the range of $2.3 million to $2 million. This concludes our call for today. Thank you for your time, and we look forward to updating you again during our Q4 2023 earnings call.

Operator: