Marin Software and Google have entered into a three-year revenue-share deal that extends through September 30, 2021.
The deal aims to help Marin further develop the company's enterprise technology platform and software products.
The 8-K U.S. Securities and Exchange Commission filing states that Marin will receive payments from Google based on "revenue generated on the company's tech platform in connection with the company's clients' spend on search ads” that only appear on Google Search during a relevant calendar quarter. It also will receive revenue generated on the company’s tech platform in connection with its clients’ spend on Search Ads that serve up on “eligible search engines” as defined in the agreement and exclude Google Search.
Chris Lien, CEO at Marin, believes the support from Google will lead to increased search innovation through ads based on machine learning and other innovative technologies.
Along with the announcement and as a result of the deal with Google, Marin updated its fourth-quarter earning guidance. The company now expects revenue of between $14.6 million and $15.1 million, rather than $11.6 million and $12.1 million. Marin also anticipates an adjusted operating loss of between $2.4 million and $2.9 million, rather than a loss of between $5.4 million and $5.9 million.
The SEC filing states that the companies can terminate or renew the agreement at least three months prior to the expiration date.
Google may terminate the agreement under certain circumstances, such as the companies breaching the confidentiality and publicity provisions of the agreement, or if either company experiences a change of control, as defined in the Agreement.
Marketwatch reported on Monday that Marin’s stock jumped on the news. “Marin Software shares rallied 60% after hours, following a 16% drop to close the regular session at $2.56,” per the media outlet.