Marin Software, Inc. (MRIN), an online advertising company, is enjoying a negative trend in its stock since the last few days. Since it last gained 52 weeks high share price of $24.14, the share price is continuously decreasing. On Friday, the company’s share price stood at $8.28.MRIN stock is currently changing hands at $7.06 in the aftermarket, a decrease of 14.73%.
Announcement of Q2 results
On Friday, the company announced the financial results for the second quarter, which ended on 30th June. According to the results, the net revenues generated by the company during the quarter stand at $6.1 million, which is 16% less than what the company achieved during the same time period in 2020. This news is imparting its influence over the aftermarket, as evident from the current decrease in MRIN share price.
In May, the first quarter financial results of 2021 were announced by Marin Software, Inc. According to the press release, the company announced revenue of $6.3 million during the course of the quarter, a decrease of 27% when compared with the revenues attained during the same quarter in 2020. The company had predicted its revenue target for Q2 to stand between $5.5 million to $6 million, which was less than what the company actually achieved.
A volatile stock
Past few weeks have proven to be mercurial as far as the performance of MRIN stock is concerned. On the 23rd of June, the company integrated the Instacart ads, an online grocery platform, with MarinOne platform. That caused a massive surge within the company’s share price. On the 6th of July, MRIN share price soared up to $24.14, the highest it has achieved during the last three years. Since that surge, MIRN stock is showing volatility, as depicted from the loss of momentum after enjoying glorious times in the early week of July
Impact of pandemic
COVID-19 pandemic caused an impact upon the business of the company. It could be highlighted from the fact that during the Q3 of 2019, the company got some $11.7 million in revenues, while during the same period in 2020; it brought in $6.8 million. Because of that, the company was forced to reduce its operating cost, ultimately affecting its business to an extent. But with gradual ease in government policies, the company’s business seems well on track to flourish in near future.
Future outlook for MIRN stock
As far as the future performance of MRIN stock is concerned, being a digital enterprise, it is hoped that its operations would remain stable during coming times. In the case of near-term targets, the company hopes to generate revenue between $5.5 million to $6 million during Q3 of 2021. Besides, the company’s EPS is estimated to grow by some 20% during the next five years. Hence, it should be hoped that future times hold something great in store for Marin software. Potential investors should keep a close watch on MRIN stock in the near future.