Why Marin Software Inc. Shares Popped Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Marin Software Inc. (NYSE: MRIN  ) jumped as much as 10% early Thursday, then settled to close up around 4% after the ad revenue management specialist turned in solid first-quarter results and announced a CEO transition.

So what: Marin's revenue growth accelerated to its highest rate since Q4 of 2012, with sales increasing 33% year over year, to $22.8 million. That translated to a narrower adjusted net loss of $0.21 per share. Analysts, on average, were looking for a larger loss of $0.27 per share on sales of $21.64 million.

Better yet, Marin raised its full-year 2014 guidance, which now calls for revenue of $96.8 million to $98.0 million, with an adjusted net loss per share of $0.90 to $0.87. The midpoint of both ranges is well ahead of Wall Street's expectations, which currently model a 2014 loss of $0.92 per share on sales of $95.79 million.

In addition, Marin announced its founding CEO will assume a new role as executive chairman. Stepping in as CEO is David Yovanno, who most recently served as executive vice president, technology solutions at Conversant.

Now what: It's hard to blame the market for bidding up shares today given Marin Software's solid results. However, I personally remain hesitant considering Marin still expects to lose $28 million this year -- and that's on a non-GAAP basis. In the end, Marin Software has plenty of cash to hold it over while it strives to achieve sustained profitability; but for now. I prefer keeping it on my watch list to track its progress as it closes the gap in the coming quarters.

Warren Buffett just bought nearly 9 million shares of this company
Not all companies are striving to achieve profits. Imagine a company, for example, that rents a very specific and valuable piece of machinery for $41,000... per hour. (That's almost as much as the average American makes in a year!) And Warren Buffett is so confident in this company's can't-live-without-it business model, he just loaded up on 8.8 million shares. An exclusive, brand-new Motley Fool report details this company that already has over 50% market share. Just click HERE to discover more about this industry-leading stock... and join Buffett in his quest for a veritable landslide of profits!

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2950329, ~/Articles/ArticleHandler.aspx, 9/5/2015 6:47:04 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Steve Symington

Technology and consumer goods specialist for the Fool. Steve looks for responsible businesses which positively shape our lives. Then, he invests accordingly. Enjoy his work? Connect with him on Twitter & Facebook so you don't miss a thing.

Today's Market

updated 9 hours ago Sponsored by:
DOW 16,102.38 -272.38 -1.66%
S&P 500 1,921.22 -29.91 -1.53%
NASD 4,683.92 -49.58 -1.05%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/4/2015 4:02 PM
MRIN $3.50 Down -0.05 -1.41%
Marin Software CAPS Rating: No stars
CNVR $0.00 Down +0.00 +0.00%
Conversant, Inc. CAPS Rating: *****