Marin Software closed 2016 with quarterly revenues of $22.9m, down 21% from the period 12 months beforehand and missing earlier analyst forecasts, with the company attributing the downturn in its fortunes to client churn and softer spending habits of those that it was able to retain.
Net revenues for 2016 as a whole totaled $99.9m, a year-over-year decrease of 8%, when compared to $108.5m in 2015, according to the numbers released earlier today (February 28).
GAAP gross profit was $14.5m resulting in a gross margin of 63%, but this is compared to GAAP gross profit of $19.6m equating to a gross margin of 67% 12 months earlier.
Marin’s leadership used the call to level the usual criticisms at the duopoly of Facebook and Google, adding that its own offering provides greater transparency, efficiency and ROI for customers, with the company’s chief executive officer Chris Lien promising it would use the above warnings to prospective clients to retain and win new clients.
He went on to voice his expectation that Marin will return to growth over 2017, with the company’s leadership team also noting that this is unlikely to occur immediately given the seasonal dip in media spend between the final quarter of a year and opening the opening of the following one.
"This provides us the financial resources to support a return to growth, including enabling us to continue to invest in product innovation to meet the advertising needs of the world's leading brands. With our new product innovation, along with improvements in our execution, we expect to return to growth as we deliver on our open, independent, cross-channel performance advertising platform vision,” added Lin in a company statement.
A more in-depth view of the company numbers can be seen here.