Company Overview
| Company Name |
MARIN SOFTWARE INC |
| Company Address |
123 MISSION ST
25TH FLOOR
SAN FRANCISCO, CA 94105 |
| Company Phone |
415-399-2580 |
| Company Website |
www.marinsoftware.com |
| CEO |
Christopher A. Lien |
| Employees (as of 12/31/2012) |
424 |
| State of Inc |
DE |
| Fiscal Year End |
12/31 |
| Status |
Priced (3/22/2013) |
| Proposed Symbol |
MRIN |
| Exchange |
New York Stock Exchange |
| Share Price |
$14.00 |
| Shares Offered |
7,500,000 |
| Offer Amount |
$105,000,000.00 |
| Total Expenses |
$2,900,000.00 |
| Shares Over Alloted |
0 |
| Shareholder Shares Offered |
-- |
| Shares Outstanding |
30,911,322 |
| Lockup Period (days) |
180 |
| Lockup Expiration |
9/18/2013 |
| Quiet Period Expiration |
5/1/2013 |
| CIK |
0001389002 |
We estimate that the net proceeds from the sale of shares of our common stock
that we are selling in this offering will be approximately $94.8 million,
based on the initial public offering price of $14.00 per share, and after
deducting estimated underwriting discounts and commissions and estimated
offering expenses payable by us. If the underwriters’ option to purchase
additional shares from us is exercised in full, we estimate that we will
receive additional net proceeds of $14.6 million.
The principal purposes of this offering are to create a public market for our
common stock, obtain additional capital, facilitate our future access to the
public equity markets, increase awareness of our company among advertisers and
improve our competitive position. Our management will have broad discretion
in the application of the net proceeds to us from this offering, and investors
will be relying on the judgment of our management regarding the application of
the proceeds. Pending their use, we plan to invest our net proceeds from this
offering in short-term, interest-bearing obligations, investment-grade
instruments, certificates of deposit or direct or guaranteed obligations of
the U.S. government.
As of the date of this prospectus, except as described above, we cannot
specify with certainty all of the other particular uses for the net proceeds
from this offering. We expect to use the remaining net proceeds from this
offering for working capital and other general corporate purposes. Additionally,
we may choose to expand our current business through acquisitions of, or
investments in, complementary businesses or technologies, using cash or shares
of our common stock. However, we have no commitments with respect to any such
acquisitions or investments at this time.
The overall market for digital advertising management solutions is rapidly
evolving, highly competitive, complex, fragmented, and subject to changing
technology and shifting customer needs. We face significant competition in
this market and we expect competition to intensify in the future. To maintain
and improve our competitive position, we must keep pace with the evolving
needs of our customers and continue to develop and introduce new modules,
features and services in a timely and efficient manner.
We currently compete with large, well-established companies, such as Adobe
Systems Incorporated and Google Inc. (through its wholly-owned subsidiary
DoubleClick), and privately-held companies, such as Acquisio Inc., which
focuses solely on agencies, and Kenshoo Ltd. We also compete with in-house
proprietary tools and custom solutions, including spreadsheets.
We believe the principal competitive factors in our market include the
following:
. solution quality, breadth, flexibility and functionality;
. tangible platform benefits;
. level of customer satisfaction and our ability to respond to customer needs
rapidly;
. breadth and quality of advertiser and agency relationships;
. ability to innovate and develop new or improved products and modules;
. ability to respond to changes in publishers’ APIs;
. brand awareness and reputation; and
. size of customer base.
We believe that we compete favorably with respect to the factors described
above. Our ability to remain competitive will largely depend on our ongoing
performance in the areas of our solution breadth and customer support.
Company Description
We provide a leading cloud-based digital advertising management platform that
enables advertisers and agencies to improve financial performance, realize
efficiencies and time savings, and make better business decisions. Our Revenue
Acquisition Management platform is a software-as-a-service, or
SaaS, analytics,
workflow, and optimization solution for marketing professionals, enabling them
to effectively manage their digital advertising spend across search, display,
social and mobile advertising channels. Our software solution is designed to
help our customers:
. measure the effectiveness of their advertising campaigns through our
proprietary reporting and analytics capabilities;
. manage and execute campaigns through our intuitive user interface and
underlying technology that streamlines and automates key functions, such as ad
creation and bidding, across multiple publishers and channels; and
. optimize campaigns across multiple publishers and channels in real time
based on market and business data to achieve desired revenue outcomes using
our predictive bid management technology.
Advertisers are increasingly focused on performance-based marketing and are
seeking ways to gather, analyze and leverage data about the effectiveness of
digital advertising to run more impactful and targeted campaigns. Our robust
and flexible platform integrates with leading publishers, such as Baidu, Bing,
Facebook, Google, Yahoo! and Yahoo! Japan, as well as leading web analytics
and ad-serving solutions, and key enterprise applications to enable marketers
to measure the return on investment of their marketing programs.
Our software platform serves as a system-of-record for advertising performance,
revenue and conversion data and allows advertisers to correlate advertising
spend to subsequent revenue outcomes or business events. Through a single,
intuitive interface, designed to meet the daily workflow requirements of online
marketers, we enable our customers to simultaneously run large-scale digital
advertising campaigns across multiple publishers and channels, making it easy
for marketers to create, publish, modify and optimize campaigns in real time.
Our predictive bid management and optimization technology also allows
advertisers to forecast outcomes and optimize campaigns across multiple
publishers and channels to achieve their business goals. Our optimization
technology enables advertisers to easily and rapidly increase spend on those
campaigns, publishers and channels that are performing while reducing
investment in those that are not.
In December 2012, our customers collectively managed $4.7 billion in annualized
advertising spend on our platform and for the quarter ended December 31, 2012,
we had 531 active advertisers using our solution globally across a wide range
of industries. We define an active advertiser as an advertiser from whom we
recognized revenues in excess of $2,000 in at least one month in a period. We
market and sell our solutions to advertisers directly and through leading
advertising agencies. We generate revenues from subscription contracts under
which we charge fees generally based upon the amount of advertising spend that
our customers manage through our platform. We have achieved 15 consecutive
quarters of revenue growth. For 2010, 2011 and 2012, our revenues were $19.0
million, $36.1 million and $59.6 million, representing period-over-period
growth of 152%, 90% and 65%, respectively. We had net losses of $10.9 million
in 2010, $17.4 million in 2011 and $26.5 million in 2012.
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We were incorporated in the State of Delaware in March 2006. Our principal
executive offices are located at 123 Mission Street, 25 th Floor, San
Francisco, California 94105, and our telephone number is (415) 399-2580. Our
website address is www.marinsoftware.com.