Notes from the Marin Software IPO Filing

Marin Software just filed their S-1 (SEC doc) to go public and sell $75mm worth of shares. Marin makes an advertising and pay-per-click (PPC) Software-as-a-Service (SaaS) management platform for online marketing, or Revenue Acquisition Management, as they put it. I remember first hearing about Marin several years ago when the PPC bid management world was heating up, so it’s great to see how far they’ve come.

Here are a few notes from the Marin Software IPO filing:

  • Platform works with Baidu, Bing, Facebook, Google, Yahoo! and more (pg. 1)
  • Revenues (pg. 2):
    2009 – $7.5mm
    2010 – $19mm
    2011 – $36.1mm
    2012 first 9 months – $42.5mm
  • Business benefits (pg. 3)
    Financial lift
    Efficiences and time savings
    Better business decision making
  • Key strengths (pg. 3)
    Robust and flexible integration
    Big data analytics
    Real-time, cross-publisher campaign management
    Predictive bid management and optimization
    Intuitive interface offering visibility and control
    Experienced team committed to customer success
    Highly-scalable and extensible cloud-based architecture
  • Losses (pg. 8)
    2009 – $9.7mm
    2010 – $11.9mm
    2011 – $17.4mm
    2012 first 9 months – $19.2mm
  • Accumulated deficit – $70.1mm (pg. 11)
  • Fees are calculated as a percentage of customers’ advertising spend managed on the platform (pg. 12)
  • Substantial majority of spend is through Google using the Google AdWords API (pg. 12)
  • Sales cycle is typically one to nine months (pg. 15)
  • Employee count (pg. 23)
    2011 – 285
    2012 – 386
  • 181 day lock-up period for shareholders (pg. 31)
  • 26% of total revenue came from advertisers outside the U.S. (pg. 44)
  • 502 active customers on September 20, 2012 (pg. 45)
  • 58% 2012 gross margin (pg. 49)
  • Total amount raised from investors: $105.7mm (pg. 56)
  • Equity ownership percentages (pg. 114)
    Benchmark Capital – 16.4%
    DAG Ventures – 16.1%
    Temasek Capital – 10.1%
    Focus Ventures – 6.5%
    Crosslink Ventures – 5.8%
    Founder – 8.8%
    Co-founder – 2.8%
    Co-founder – 3%

Marin Software looks to have the makings of a successful IPO based on being a modern SaaS platform growing incredibly fast at scale.

What else? What are some other thoughts on the Marin Software IPO filing?

2 thoughts on “Notes from the Marin Software IPO Filing

  1. The push is a growth story. Internet advertising is a growing industry and will be even stronger with a decent REAL economic recovery.

    The fact that they’ve burned through 20 million in the first 9 months of 2012 is another, pretty good reason.

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