Supplier of corporate marketing software for advertisers and agencies, Marin Software Incorporated (MRIN) boasts of clients such as Dell Technologies Inc. (DELL), Square, Inc. (SQ) and International Business Machines Corporation (IBM). According to an 8-K file from September 21, the company entered into a revenue sharing agreement with Alphabet Inc. (GOOGL) Google LLC to develop its enterprise technology platform and software products.
Shares of MRIN climbed to their 52-week high of $ 27.26 on July 6, mainly due to social media hype. However, it has lost 15% in the past three months to close yesterday’s trading session at $ 9.12. It is currently trading 66.5% below its 52 week high. Its current volume of 5.34 million is significantly lower than its average volume of 16.13 million, implying less liquidity. In addition, it recorded a loss in the second quarter. Thus, the short-term outlook for MRIN appears uncertain.
Here are the factors that could shape MRIN’s performance over the coming months:
MRIN announced on August 19 an integration with Criteo’s Commerce Media platform, allowing brands to easily manage and optimize Criteo Marketing Solution and Retail Media campaigns within the MarinOne platform. Additionally, in June 2021, MRIN added the ability to manage Instacart ads to its MarinOne platform, making it easier for brands to connect with customers right at the point of sale.
For the second quarter ended June 30, 2021, MRIN’s revenue decreased 16.2% year-over-year to $ 6.09 million. However, its gross margin increased 8.5% year-on-year to $ 2.92 million, and its total operating expenses decreased 18% year-on-year to $ 5.93 million. Again, its operating loss amounted to $ 3.01 million in the quarter, compared to $ 4.54 million for the period a year earlier. While its net loss declined 28.2% year-on-year to $ 2.50 million, its loss per share declined 54% year-over-year to $ 0.23.
In terms of gross profit margin over the past 12 months, MRIN’s 47.44% is 3.3% lower than the industry average of 49.04%. Likewise, the action over 12 months EBITDA margin and net profit margin are negative compared to industry averages of 14.68% and 6.20%, respectively. In addition, its ROCE, ROTC and ROTA over the past 12 months are negative compared to industry averages of 8.31%, 4.86% and 3.59%, respectively.
POWR Ratings Reflect Uncertain Short-Term Outlook
MRIN has an overall rating of C which equates to Neutral in our POWR odds system. POWR scores are calculated taking into account 118 different factors, each factor being weighted to an optimal degree.
Our proprietary scoring system also rates each stock against eight different categories. MRIN has a C grade for quality, in line with its profitability ratios below those of the industry.
The stock has a C rating for value, consistent with its past 12-month EV / S of 5.25x, above the industry average of 4.36x. Additionally, MRIN has an F rating for stability.
In addition to the POWR ratings I just outlined, we also rated MRIN for growth, momentum, and sentiment. Get all MRIN notes here.
MRIN is ranked n ° 97 out of 151 shares in the Software application industry.
Microcap MRIN is a lesser-known software company. Even though its shares soared in July due to the hype on social media and recently due to the deal with Google, it recorded a loss in the last quarter. In addition, the company also expects to report a non-GAAP operating loss in the third quarter. So, it might be wise to wait until his bottom line improves before recovering his shares.
How does Marin Software (MRIN) compare to its peers?
Although MRIN has an overall POWR rating of C, you may want to consider investing in the following software application stocks with an A (strong buy) rating: Open Text Corporation (OTEX), Commvault Systems, Inc. (CVLT) and National Instruments Corporation (NATI).
Shares of MRIN were trading at $ 8.59 per share on Friday afternoon, down $ 0.53 (-5.81%). Year-to-date, MRIN has gained 325.25%, compared to a 16.36% increase for the benchmark S&P 500 over the same period.
About the Author: Manisha Chatterjee
Since she was young, Manisha has had a strong interest in the stock market. She majored in economics in college and has a passion for writing, which led her to her career as a research analyst. Following…