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.
