Investor OverviewMarch 2014
2
Safe Harbor
This presentation contains forward-looking statements including, among other things, statements regarding our business, momentum, growth and future plans. 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 (i) adverse changes in general economic or market conditions; (ii) delays, reductions or slower growth in the amount spent on online and mobile advertising and the development of the market for cloud-based software; (iii) competitive factors, including but not limited to pricing pressures, entry of new competitors and new applications; (iv) adverse changes in our relationships with and access to publishers and advertising agencies; (v) level of usage and advertising spend managed on our platform; (vi) our ability to expand sales of our solutions in channels other than search advertising; (vii) our ability to expand our sales and marketing capabilities and manage our growth effectively; (viii) the development of the market for digital advertising or revenue acquisition management; (ix) acceptance and continued usage of our platform and services by customers and our ability to provide high-quality technical support to our customers; (x) material defects in our platform, service interruptions at our data center or breaches in our security measures; (xi) our ability to develop enhancements to our platform; (xii) our ability to protect our intellectual property; (xiii) our ability to manage risks associated with international operations; and (xiv) our ability to retain and attract qualified management and technical personnel.
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 in the section entitled “Risk Factors” in our quarterly report on Form 10-K for the year ended December 31, 2013, and our other filings with the SEC, which are available free of charge at the Investor Center section of our website at http://investor.marinsoftware.com/, all of which could cause actual results to differ materially from expectations set forth in the forward-looking statements. All forward-looking statements in this presentation reflect Marin’s expectations as of February 11, 2014. Marin assumes no obligation to, and expressly disclaims any obligation to update any such forward-looking statements after the date of this presentation.
SaaS Platform for Digital Ad Management
Better Decisions Time Savings Financial Lift
Measure Manage Optimize
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4
Revenue Acquisition Management Leader
Annual Revenue ($MM)
$7.5
$19.0
$36.1
$59.6
2009 2010 2011 2012 2013
673 active advertisers
6.3 billion ad units managed
Campaigns in 160 countries
$6.0BN of annualized ad spend in Q4 2013
$77.3
5
Investment Highlights
Serving Large and Fast Growing Digital Ads Market
Leader in Revenue Acquisition Management
Comprehensive Analytical and Transactional Platform
High Growth SaaS Model with Participatory Economics
Proven Results for Blue-Chip Customers
Search Display
Social Mobile
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Large, Fast-Growing Digital Advertising Market
Source: Magna Global, Digital Media Forecasts, December 2013. $ in billions *CAGR 2013-2018
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Increasing Digital Marketing Challenges
Complexity Fragmentation Scale
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Day in the Life of a Digital Marketer
Operational Tasks Optimizations Strategic Opportunities
Format tracking codes
Stitch cost and revenue data
Pivot and trend data in excel
Build reports for management
Format bulk sheets for upload
Refine keywords and targeting
Test creative and landing pages
Geo and device targeting
Adjust and optimize bids
Day-part campaigns
Allocate budgets
Launch new products and offers
Test new channels and publishers
Forecast volume, profit and cost
Adjust to budget variances
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Revenue Acquisition Management Platform
Publisher Data Revenue & Conversion Data
Search
Display
Social
Mobile
AdServers
Analytics
MarinTracker
OfflineData
Measure Manage Optimize
Optimization
CampaignManagement
Reporting& Analytics
10
RAM Platform: Powerful & Easy To Use
Analytics to Action Interface
11
Applied Big Data & Customer-Focused Innovation
6.3 BillionAd units under management
3 MillionQueries per month
80 MillionCampaign changes per day
250+ TerabytesStored across 50DB
1 Code BaseMulti-tenant architecture
11 Major Releases AnnuallyIterative development
Key Online Ad Trends Favor a Platform
Move from keywords to audiences
Proliferation of channels, devices, publishers, and ad units
Multi-channel bidding and attribution
Focus on customers (and lifetime value) not transactions via CRM data
Integrate and leverage disparate data sources
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Marin’s Product Vision
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Open platform with access to any number of marketing applications in an integrated manner (App Store)
Advertisers will want a platform that connects with all their disparate data sources to ensure decisions are made using all their data.
The future is targeting audiences with added insights driven by search intent and attribution.
Single platform and user interface for all marketing channels and devices
Independent, Open Platform for Cross-Channel Revenue Acquisition
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Audience Connect: Using Data to Drive Performance
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■ Audience Analytics■ Look-Alike Modeling for Audience
Expansion
■ Intent-based Remarketing■ Audience-based Bidding for
Search Optimization
Blue Kai / Exelate / Lotame / Etc.
Audience Connect: Distribution and Optimization
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Revenue Connect: Optimize Using Your Own Data
True Revenue Valuation Offline Conversion Tracking Forecasting Lifetime Value Flexible Revenue Capture Certified Revenue Partner
Ecosystem
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Report and Optimize Across Your Portfolio of Channels
Cross Channel Management Integrated Reporting and Analytics Flexible Revenue Tracking Automated Bid Calculations For Any
Publisher, Any Goal Attribution Across Publishers
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Publisher data for reporting and optimization Twitter and Yandex debut by end of Q2 2014
Channel Connect: More Options for RAM
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Context Connect: Action Via External Data Sources
Connect any contextual data source Smarter decisions with greater insight Dynamically adjust campaign objects More intelligent bid optimization Customizable through Marin Labs
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Optimize Using Data That Impacts Your Business
DYNAMIC ACTIONS
Schedule automated actions based on performance, attributes, and settings: Adjust bids based on Dimension values Pause objects based on conversion rate Increase budgets based on ROI Update landing pages based on CTR
Build complex actions to address marketing sophistication
CONTEXT CONNECTIONS
A flexible onramp for integrating and reporting on contextual data sources: Weather Stocks Sport scores Nielsen Rating
View external data sources alongside marketing performance
Drive smarter optimization strategies
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Open: BoostCTR Integration
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Independent, Open, Extensible RAM Platform
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Industry Leaders Grow Facebook Programs With Marin
Rapidly scale programs
Acquire high LTV customers
Drive mobile ROI
Raise CTR’s and extend campaign life
Meet any financial or social objective
Global service and support
“Marin has dramatically changed the way we advertise on Facebook and
has made it one of our most effective performance marketing channels”
- Chase Wells, Director of Marketing at Webtrends
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Competitive Landscape
Competition Marin
Publisher Tools Independent, trusted 3rd party
Cross publisher workflow and reporting
Advanced bidding and optimization tools
Technology Providers Ability to manage complexity and scale
Open, extensible platform; enterprise-class data import and export capabilities
Expert service teams with global reach
Internal Build Leading combination of power and ease of use
Support for new publisher innovation
Software as a service pricing model
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Large, Underpenetrated Market
2017$174BN
Digital Advertising Market
20178,500+ Enterprise
Opportunities>$100K / Month
2012$98BN
Digital AdvertisingMarket
20125,500+ Enterprise
Opportunities>$100K / Month
Source: Magna Global, Marin Internal
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Multiple Growth Drivers
Expand Internationally
Add Platform Modules
Support New Publishers
Acquire New Customers
Grow Existing Ad Spend
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Experienced Management Team
Customer-Centric, Team-Oriented Culture
Finance Overview
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Key Financial Highlights
Strong Track Record of Growth
100% SaaS Subscription Model
Increasing Ad Spend and Consistent Advertiser Growth
Growth Through New and Existing Advertisers
Highly Diversified Revenue Mix
Significant Long-Term Operating Leverage
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Annual Revenue ($MM)
Quarterly Revenue ($MM)
2010 2011 2012 20132009
$7.5
$19.0
$36.1
$59.6
$1.0 $1.4$2.3 $2.9 $3.4
$4.6 $5.0$6.0
$7.1$8.1
$9.5$11.4
$13.0$14.0
$15.5$17.1 $17.2 $18.2
2009 2010 2011 2012 2013
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
$20.1
$77.3
$21.8
Q4
Strong Track Record of Growth
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100% SaaS Subscription Model
Jan Feb Mar
Ad Spend $0 $240,000 $500,000
Rate 3.50% 3.50% 3.00%
Fee - % of Spend - $8,400 $15,000
Monthly Minimum $7,500 $7,500 $7,500
Marin Revenue $7,500 $8,400 $15,000
100% SaaS-Based Subscription Model
Revenue Based on % of Monthly Ad Spend
Shared Customer Success – Virtuous Cycle
Example Customer
Direct
Channel Leverage
1-2 year fixed-rate contracts
Generally 12 month terms
Minimum Fees – 50-70% of projected monthly revenues
Agency
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Total Active Advertisers
50 79100 116 134 151
195 223 240280
337390
436487 502
531 542584
2009 2010 2011 2012 2013
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Annualized Advertising Spend Under Management ($BN)
2010 2011 2012 20132009
$0.6
$1.7
$3.2
$4.7
Q3
610
Note: Annualized spend based on last month of the period. Active Advertisers based on Advertisers with $2,000 in revenue in at least one month of the quarter
Increasing Advertisers and Ad Spend
$6.0
Q4
673
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Highly Diversified Revenue Mix
Note: All metrics based on FY 2013; Other includes Automotive, Healthcare, Real Estate, Industrial / Manufacturing and Government.
Diversified Advertiser Base Global Presence
Balanced Revenue Mix
% Revenue
Retail
Travel
B2B
Education
Other
21%
17%
10%
7%
18%
International31%U.S.
69%
Agency48%
Direct52%
Technology 14%
Finance 13%
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Q4 Highlights & 2014 Guidance
Note: Guidance as of February 11, 2014. See Q4-13 Earnings Release dated February 11, 2014 for Non-GAAP definition and reconciliation to GAAP metrics.
Guidance
Q1: $21.4 to $21.8 million
2014: $95.0 to $96.6 million
Revenue
Q1: ($8.9) to ($8.5) million
2014: ($30.5) to ($28.9) million
Non-GAAP Operating Loss
Q1: ($0.28) to ($0.26)
2014: ($0.94) to ($0.90)
Non-GAAP Net Loss per Share
Strong Q4 performance, beating our guidance
Total cash on balance sheet as of December 2013: $104.4 million
Improved gross margins
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Investment Highlights
Serving Large and Fast Growing Digital Ads Market
Leader in Revenue Acquisition Management
Comprehensive Analytical and Transactional Platform
High Growth SaaS Model with Participatory Economics
Proven Results for Blue-Chip Customers
Search Display
Social Mobile
Appendix
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GAAP to Non-GAAP Reconciliation
FY2012 FY2013 Q4’12 Q4’13
Gross Profit (GAAP) $ 34.8 $46.2 $10.0 $13.7Plus Stock-based Compensation 0.4 0.9 0.1 0.2Plus Amortization of Cap'd R&D 0.5 1.2 0.2 0.4Less Capitalized R&D costs (0.0) - (0.0) -
Gross Profit (Non-GAAP) $35.7 $48.2 $10.3 $14.3
Operating loss (GAAP) ($25.3) ($34.3) ($6.8) ($7.9)Plus Stock-based Compensation 4.9 5.2 0.7 1.3Plus Amortization of Cap'd R&D 0.5 1.2 0.2 0.4Plus Noncash expense related to warrants 0.1 - - -Less Capitalized R&D costs (1.7) (3.2) (0.5) (0.7)
Operating loss (Non-GAAP) ($21.5) ($31.2) ($6.4) ($6.9)
Net Loss (GAAP) ($26.5) ($35.9) ($7.3) ($8.1)Plus Stock-based Compensation 4.9 5.2 0.7 1.3Plus Amortization of Cap'd R&D 0.5 1.2 0.2 0.4Plus Noncash expense related to warrants 0.6 0.5 0.2 0.1Less Capitalized R&D costs (1.7) (3.2) (0.5) (0.7)
Net Loss (Non-GAAP) ($22.2) ($32.2) ($6.6) ($7.0)
Year Ended December 31
(in millions)