Based on its valuation and growth profile, Marin Software — a provider of a cloud-based digital advertising management platform — could be an attractive buyout target for a larger player in the online marketing space.
At the recent market cap of $373 million, Marin’s forward revenue multiple of 3.9 times the 2014 consensus estimate of $95.8 million (within the company’s guidance range of $95 million to $96.6 million) is reasonable given expected growth of nearly 24 percent.
Marin is a so-called busted IPO because the shares trade below the March 2013 offering price of $14. In fact, Marin shares have been on a downward trek ever since the first trading session: they opened at $18.95 and hit a post-IPO high of $19.95 on the same day. While the stock has recovered a bit from the November low of $8.50, it’s still 18 percent short of the IPO price.
Measuring Ad Spend
Advertisers are increasingly focused on performance-based marketing, so they’re always looking for ways to pull together and analyze data about the effectiveness of digital ads in order to run more targeted and impactful campaigns. Marin’s Revenue Acquisition Management (RAM) platform is used by advertisers and ad agencies to measure, manage and optimize digital ad spending across search, display, social and mobile channels.
Using the RAM platform, customers can measure the effectiveness of their ad campaigns via its reporting and analytics capabilities; manage and execute campaigns (including ad creation and bidding across multiple publishers and channels); and optimize campaigns in real-time based on market and business data to achieve desired revenue outcomes using predictive bid management technology.
About the Author
Robert DeFrancesco is a seasoned tech-stock analyst, who, for 13 years, covered the technology sector for Louis Rukeyser's Wall Street newsletter. In 2003, he launched Tech-Stock Prospector, a unique investment research service utilizing a combination of fundamental and technical analysi
David Yovanno, Christopher Lien, Paul Auvil, and Bruce Dunlevie between August 13-15th spend $1 million buying MRIN between $7.50 and $8.06. Now we are seeing the stock trading between $6.62 and $7.20 and they will not touch it with a 10 foot pole.
Each quarter the stock drops a $1-$2. They will probably wait until MRIN is at $4 before they buy more. Sad to see insiders buying ECOM and MRIN insiders saying that a market cap of $225 to $250k is too much. Guess a market cap of $150 million is what David, Chris, Paul and Bruce are waiting to see before they touch shares.
No wonder the 1/31/2015 short position ramped up. This turkey is cooked!