San Francisco, CA(November 2, 2023) – Marin Software Incorporated (NASDAQ: MRIN) (“Marin”,"Marin Software" or the “Company”),a leading provider of digital marketing software for performance-driven advertisers and agencies, today announced financial results for the third quarter ended September 30, 2023.

“We’re excited to continue our innovations to address the most pressing issues marketers face today – complete and timely insights and the ability to make the smartest decisions and to act on them quickly,” said Chris Lien, MarinSoftware’s Chairman and CEO. “Our new offerings, Connect and Ascend, are built to provide marketers with a robust platform to unite data from the entire customer journey with an AI-powered optimization engine to maximize performance across media channels.”

Third Quarter 2023 Product Highlights:

Launched two new editions of Marin to address the needs of different segments of the market:

• Connect: Helps marketers to collect, aggregate, and share campaign, conversion, and first-party data. Connect can push data to data warehouses, Excel/GoogleSheets, and BI Tools. In addition to streamlining and automating the “marketing data pipeline,” Connect provides tools to analyze campaign performance.
• Ascend: Building on the data foundation provided by Connect, Ascend leverages the power of predictive AI to improve the performance of your marketing investment. Ascend determines where the next marginal dollar will have the most impact and continually adjusts budget allocation and targets to maximize performance.
• MarinOne: Our flagship product includes everything in Ascend, plus a robust set of automation tools and world-class strategic support from digital marketing experts.

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• Deepened our CRM integrations by adding HubSpot, enabling our customers to optimize against the entire customer journey, including downstream and offline conversions.
• Introduced the Automation Summary Dashboard, which enables Marin users to see the impact of automations taken on their behalf in MarinOne. It allows marketers to clearly quantify the ROI on the Marin platform by presenting a historical record of system recommendations for bids and budgets.
• Enhanced support forLinkedIn, TikTok, Apple Search Ads, and Taboola to include Marin’s proprietary forecasts in budget models and simulations.
• Improved Search Ad Preview to provide MarinOne and external users with transparent visual previews, including ad copy, logos, and extensions.
• Strengthened GooglePerformance Max support by adding asset group reporting and automated status changes based on pre-set criteria. Marketers can better manage volume across a portfolio of Google accounts and other publishers with consolidated automation in MarinOne.
• Enabled import ofGoogle Labels into Marin to allow new customers to quickly adopt MarinDimensions, adding a hierarchy to Google Labels.
• Upgraded Client Tags so users can report on aggregate performance data across Marin accounts.Customers use this ‘roll up’ functionality to group Marin client accounts by categories like region, brand, or industry and can view near real-time performance data.
• We now offer AutomaticPreview for all campaigns linked to MarinOne and offer marketers the ability to derive more granular recommendations and forecasts by mapping campaigns to a dedicated strategy.

Third Quarter2023 Financial Updates:

• Net revenues totaled$4.4 million, a year-over-year decrease of 11% when compared to $5.0 million for the third quarter of 2022.
• GAAP loss from operations was ($5.1) million, resulting in a GAAP operating margin of (115%),as compared to a GAAP loss from operations of ($5.8) million and a GAAP operating margin of (117%) for the third quarter of 2022.
• Non-GAAP loss from operations was ($2.9) million, resulting in a non-GAAP operating margin of(65%), as compared to a non-GAAP loss from operations of ($4.5) million and anon-GAAP operating margin of (91%) for the third quarter of 2022.
• Cash and cash equivalents were $13.6 million as of September 30, 2023.

Reconciliations of GAAP to non-GAAP financial measures have been provided in the financial statement tables included in this press release. An explanation of these measures is also included below, under the heading “Non-GAAP Financial Measures.”

FinancialOutlook:

Marin is providing guidance for its fourth quarter of 2023 as follows:

Non-GAAP loss from operations excludes the effects of stock-based compensation expense, amortization of internally developed software, impairment of long-lived assets, capitalization of internally developed software, non-recurring costs associated withrestructurings, and certain professional fees that the Company has incurred in responding to third-party subpoenas that the Company has received related togovernmental investigations of Google and Facebook.

Additionally, the Company doesnot reconcile its forward-looking non-GAAP loss from operations, due tovariability between revenues and non-cash items such as stock-basedcompensation. The GAAP loss from operations includes stock-based compensationexpense, which is affected by hiring and retention needs, as well as the futureprice of Marin’s stock. As a result, a reconciliation of the forward-lookingnon-GAAP financial measures to the corresponding GAAP measures cannot be madewithout unreasonable effort.

Quarterly Results Conference Call

Marin Software will host aconference call today at 2:00 PM Pacific Time (5:00 PM Eastern Time) to reviewthe Company’s financial results for the quarter ended September 30, 2023, andits outlook for the future. To access the call, please dial (800) 954-0684 inthe United States or (212) 231-2929 internationally with reference toconference ID 13742110. A live webcast of the conference call will be accessibleat https://viavid.webcasts.com/starthere.jsp?ei=1622870&tp_key=b8014ed5de. Following the completion of the call through 11:59 p.m.Eastern Time on November 9, 2023, a recorded replay will be available on theCompany’s website at http://investor.marinsoftware.com/ and a telephone replaywill be available by dialing (844) 512-2921 in the United States or (412)317-6671 internationally with the recording access code 13742110.

About MarinSoftware

Marin Software Incorporated’s(NASDAQ: MRIN) mission is to give advertisers the power to drive higherefficiency and transparency in their paid marketing programs that run on theworld’s largest publishers. Marin Software provides enterprise marketing softwarefor advertisers and agencies to integrate, align, and amplify their digitaladvertising spend across the web and mobile devices. Marin Software offers aunified SaaS advertising management platform for search, social, and eCommerceadvertising. The Company helps digital marketers convert precise audiences,improve financial performance, and make better decisions. Headquartered in SanFrancisco with offices worldwide, Marin Software’s technology powers marketingcampaigns around the globe. For more information about Marin Software, pleasevisit www.marinsoftware.com.

Non-GAAPFinancial Measures

Marin uses certain non-GAAPfinancial measures in this release. Marin uses these non-GAAP financialmeasures internally in analyzing its financial results and believes they areuseful to investors, as a supplement to GAAP measures, in evaluating its ongoingoperational performance. Marin believes that the use of these non-GAAPfinancial measures provides an additional tool for investors to use inevaluating ongoing operating results and trends and in comparing our financialresults with other companies in our industry, many of which present similarnon-GAAP financial measures to investors. Non-GAAP financial measures thatMarin uses may differ from measures that other companies may use.

Non-GAAP financial measuresshould not be considered in isolation from, or as a substitute for, financialinformation prepared in accordance with GAAP. A reconciliation of the non-GAAPfinancial measures to their most directly comparable GAAP measures has beenprovided in the financial statement tables included below in this pressrelease. Investors are encouraged to review the reconciliation of thesenon-GAAP financial measures to their most directly comparable GAAP financialmeasures.

Non-GAAP expenses, measures and net loss per share. Marin defines non-GAAP sales and marketing, non-GAAPresearch and development, non-GAAP general and administrative, non-GAAP grossprofit, non-GAAP operating loss and non-GAAP net loss as the respective GAAPbalances, adjusted for stock-based compensation expense, amortization ofinternally developed software and intangible assets, capitalization ofinternally developed software, non-recurring costs associated withrestructurings, and certain professional fees that the Company has incurred inresponding to third-party subpoenas that the Company has received related togovernmental investigations of Google and Facebook. Non-GAAP net loss per shareis calculated as non-GAAP net loss divided by the weighted average sharesoutstanding.

Adjusted EBITDA. Marindefines Adjusted EBITDA as net loss, adjusted for stock-based compensationexpense, depreciation, amortization of internally developed software andintangible assets, capitalization of internally developed software, benefitfrom or provision for income taxes, other income, net, non-recurring costsassociated with restructurings, and certain professional fees that the Companyhas incurred in responding to third-party subpoenas that the Company hasreceived related to governmental investigations of Google and Facebook. Theseamounts are often excluded by other companies to help investors understand theoperational performance of their business. The Company uses Adjusted EBITDA asa measurement of its operating performance because it assists in comparing theoperating performance on a consistent basis by removing the impact of certainnon-cash and non-operating items. Adjusted EBITDA reflects an additional way ofviewing aspects of the operations that Marin believes, when viewed with the GAAPresults and the accompanying reconciliations to corresponding GAAP financialmeasures, provide a more complete understanding of factors and trends affectingits business.

Forward-LookingStatements

This press release contains forward-looking statementsincluding, among other things, statements regarding Marin’s business, impact ofinvestments in product and technology on future operating results, theincreasing complexity in marketing, progress on product development efforts,product capabilities, advertiser and customer behavior, and future financialresults, including its outlook for the fourth quarter of 2023. Theseforward-looking statements are subject to the safe harbor provisions created bythe Private Securities Litigation Reform Act of 1995. Actual results coulddiffer materially from those projected in the forward-looking statements as aresult of certain risk factors, including but not limited to our ability tosuccessfully implement a restructuring plan that we commenced in July 2023 andthe expected costs and savings from the restructuring plan; the amount ofdigital advertising spend managed by our customers using our products; theextent of customer acceptance, adoption and usage of our MarinOne platform; theproductivity of our personnel and other aspects of our business; our ability tomaintain or grow sales to new and existing customers; any adverse changes inour relationships with and access to publishers and advertising agencies andstrategic business partners, including any adverse changes in our revenuesharing agreement with Google; our ability to raise additional capital; ourability to manage expenses; our ability to retain and attract qualifiedmanagement, technical and sales and marketing personnel; any delays in therelease of updates to our product platform or new features or delays incustomer deployment of any such updates or features; competitive factors,including but not limited to pricing pressures, entry of new competitors andnew applications; quarterly fluctuations in our operating results due to anumber of factors; any lingering effects of the global outbreak of COVID-19 ondemand for our products and services; inability to adequately forecast ourfuture revenues, expenses, Adjusted EBITDA, cash flows or other financialmetrics; delays, reductions or slower growth in the amount spent on online andmobile advertising and the development of the market for cloud-based software;progress in our efforts to update our software platform; our ability tomaintain or expand sales of our solutions in channels other than searchadvertising; any slow-down in the search advertising market generally; anyshift in customer digital advertising budgets from search to segments in whichwe are not as deeply penetrated; the development of the market for digitaladvertising; our ability to provide high-quality technical support to ourcustomers; material defects in our platform including those resulting from anyupdates we introduce to our platform, service interruptions at our singlethird-party data center or breaches in our security measures; our ability todevelop enhancements to our platform; our ability to protect our intellectualproperty; our ability to manage risks associated with international operations;the impact of fluctuations in currency exchange rates, particularly an increasein the value of the dollar; near term changes in sales of our software servicesor spend under management may not be immediately reflected in our results dueto our subscription business model; our ability to maintain the listing of ourcommon stock on the Nasdaq; and adverse changes in general economic or marketconditions. These forward-looking statements are based on current expectationsand are subject to uncertainties and changes in condition, significance, valueand effect as well as other risks detailed in documents filed with theSecurities and Exchange Commission, including our most recent report on Form10-K, recent reports on Form 10-Q and current reports on Form 8-K, which we mayfile from time to time, and all of which are available free of charge at theSEC’s website at www.sec.gov. Any of these risks could cause actual results todiffer materially from expectations set forth in the forward-lookingstatements. All forward-looking statements in this press release reflectMarin’s expectations as of November 2, 2023. Marin assumes no obligation to,and expressly disclaims any obligation to update any such forward-lookingstatements after the date of this release.

InvestorRelations, Marin Software

ir@marinsoftware.com

Media Contact

WesleyMacLaggan

Marketing, Marin Software

(415) 399-2580

press@marinsoftware.com

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