NASDAQ$DMRC

Digimarc Corporation · Q1 2025 earnings

Q1 2025 earnings · · After market close · Investor relations

Briefing

Digimarc reported its first quarter 2025 financial results, with revenues slightly down but gross profit margin increasing.

Digimarc reported first quarter 2025 financial results, with total revenue decreasing to $9.4 million from $9.9 million in the prior year. Despite the revenue dip, the company saw an increase in gross profit margin to 65% from 63%. Net loss for the quarter was $11.7 million, or ($0.55) per share.

  • Total revenue for Q1 2025 decreased to $9.4 million from $9.9 million in Q1 2024.
  • Gross profit margin increased to 65% in Q1 2025, up from 63% in Q1 2024.
  • Net loss for Q1 2025 was $11.7 million, or ($0.55) per share, compared to $10.3 million, or ($0.50) per share, in Q1 2024.
  • Annual recurring revenue (ARR) as of March 31, 2025, was $20.0 million, down from $23.9 million as of March 31, 2024.

Headline financials

Total Revenue

$9.37M

Previous: $9.94M-5.7%
EPS (adj)

-$0.40

Previous: -$0.50+20.0%
Gross Profit Margin

65.0%

Previous: 63.0%+3.2%
Non-GAAP Gross Margin

80.0%

Previous: 78.0%+2.6%
Operating Expenses

$18.2M

Previous: $17.1M+6.4%
Non-GAAP OpEx

$16.5M

Previous: $13.8M+19.3%
Annual Recurring Revenue

$20M

Previous: $23.9M-16.3%
Capital Expenditures

-$55K

Previous: -$106K+48.1%
Net Income

-$11.7M

Previous: -$10.3M-13.5%
Operating Income

-$12.1M

Previous: -$10.9M-11.3%
Gross Profit

$6.09M

Previous: $6.21M-2.0%

Revenue & EPS history

Digimarc · Revenue · Quarterly

$9.37M

Q1 2025-5.7%vs Q1 2024
Beat estimate in 6 of 13 quarters(46%)
ActualEstimate

Revenue by segment

Digimarc · $9M total across 2 segments · Q3 2023

  • Subscription
    $4.8M+17.5%
  • Service
    $4.2M+12.4%

Forward guidance

The company is focused on executing its strategy to drive results in tighter focus areas while also benefiting from historical work outside these specific areas.

Tailwinds

  • Q1 results came in above internal plan.
  • Demonstrating ability to drive results in tighter focus areas.
  • Positioned to benefit from historical work outside specific areas.
  • Excited to continue executing against the strategy laid out on February 26, 2025 conference call.
  • Aiming to realize the full value of innovative technology.

Headwinds

  • Annual recurring revenue decreased due to expiration of a commercial contract.
  • Subscription revenue decreased due to expiration of a commercial contract.
  • Service revenue decreased due to lower government service revenue and timing of program work.
  • Higher cash severance costs incurred due to reorganization.
  • Higher professional services costs.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2025

Historical avgQ1 2025

+0.2%

Avg return

Earnings day

+2.2%

Avg return

5 days after

+2.1%

Avg return

30 days after

48%

31 / 64 earnings

Positive

+60.9%

Q1 2019

Best reaction

-43.1%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+19.4%+4.4%
Q4 2025+18.6%+10.9%+0.5%
Q3 2025+6.8%-3.2%-14.2%
Q1 2025-8.9%-8.2%+0.5%
Q4 2024-43.1%-45.3%-51.0%
Q3 2024-13.6%+2.9%+10.0%
Q2 2024-14.8%-8.1%+1.3%
Q1 2024+4.8%+5.3%+23.0%
Q4 2023-15.9%-18.9%-34.8%
Q3 2023+1.0%+7.6%+18.4%
Q2 2023+18.4%+19.4%+14.4%
Q1 2023+31.5%+42.4%+50.2%
Q4 2022-4.5%+3.6%-3.6%
Q3 2022+19.9%+44.7%+46.8%
Q2 2022+9.5%+17.6%+5.6%
Q1 2022-6.9%-8.8%-16.4%
Q4 2021-16.3%-22.7%-9.7%
Q3 2021-3.7%-7.1%-16.0%
Q2 2021+8.9%+6.8%+19.2%
Q1 2021-0.3%-16.2%-9.0%
Q4 2020-16.7%-6.9%-22.1%
Q3 2020+13.3%+2.7%+39.5%
Q2 2020-0.9%+14.6%+18.6%
Q1 2020-0.1%-1.6%+2.5%
Q4 2019-19.1%-23.0%-53.2%
Q3 2019-15.4%-18.6%-23.1%
Q2 2019+14.0%+12.2%-9.7%
Q1 2019+60.9%+84.4%+76.4%
Q4 2018+18.8%+23.5%+30.1%
Q3 2018-4.5%-23.1%-25.0%
Q2 2018-5.6%-5.1%-1.8%
Q1 2018-0.8%+11.0%+11.0%
Q4 2017-15.8%-15.8%-19.3%
Q3 2017+4.0%+5.2%+13.0%
Q2 2017+1.0%+3.8%-6.1%
Q1 2017-1.3%-3.4%+21.1%
Q4 2016+3.3%+1.8%-3.1%
Q3 2016-4.2%+0.2%-4.5%
Q2 2016-6.1%-1.8%-0.2%
Q1 2016+8.2%
Q4 2015+5.2%
Q3 2015-27.5%
Q2 2015+16.5%
Q1 2015+1.3%
Q4 2014-0.7%
Q3 2014+5.6%
Q2 2014+2.6%
Q1 2014-9.6%
Q4 2013-3.3%
Q3 2013-6.4%
Q2 2013-0.2%
Q1 2013+12.4%
Q4 2012-11.4%
Q3 2012+1.1%
Q2 2012-11.4%
Q1 2011-13.0%
Q1 2012+1.9%
Q4 2009+1.0%
Q4 2011+1.0%
Q3 2010-0.8%
Q3 2011-0.8%
Q4 2010+2.4%
Q2 2011+2.4%
Q2 2010+2.4%

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