Here’s why Marin Software shares are up 75% on Wednesday
- Marin Software entered into a revenue share agreement with Google LLC.
- The contract between the two companies will take effect on October 1st.
- Shares of the online advertising firm jumped about 75% on Wednesday.
Marin Software Inc (NASDAQ: MRIN) said late on Tuesday it had entered into an agreement with Google LLC to develop its enterprise technology platform and software products. The revenue share agreement will take effect after the online advertising company’s existing contract with Google terminates on 30th September.
Marin Software jumped about 75% in the stock market on Wednesday morning to $10.50 a share. The $147 million company is still down nearly 60% from its year-to-date high in early July.
What does Marin Software do?
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Founded in 2006 and based in San Francisco, California – Marin Software offers a cloud-based digital marketing software to advertisers that help them manage several channels, including search, display, social, and mobile, via a single platform.
Advertisers and agencies use its integrative SaaS solution to enhance financial performance and realise efficiencies to make better business decisions.
Details of the agreement
Under the terms of the agreement, Google will make a baseline revenue payment to Marin Software. On top of that, the latter will also be eligible for incremental revenue payments.
According to Marin Software, it will reinvest part of the baseline revenue payments to drive tech platform innovation. A “fixed percentage” of the incremental revenue payments will also be dedicated to the growth, development, innovation, and expansion of its enterprise tech business.
The two companies will consider extending or renewing the partnership at least three months before the agreement terminates on 30th September 2024.