NASDAQ$DMRC

Digimarc Corporation · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Digimarc's revenue remained consistent with the previous year, while operating and net losses increased due to severance costs.

Digimarc reported third quarter 2020 financial results with revenue of $5.8 million, unchanged from the third quarter of 2019. The company experienced an increased operating loss of $8.4 million and a net loss of $8.4 million, primarily due to non-recurring severance costs. TCM|Strategic Partners invested $53.5 million in Digimarc, with $36.5 million received before the quarter ended, boosting cash reserves.

  • Revenue for Q3 2020 was $5.8 million, matching Q3 2019.
  • Service revenue increased by six percent, driven by growth in Government services.
  • Subscription revenue decreased by ten percent due to a renegotiated contract with a Retail supplier.
  • Operating loss increased to $8.4 million, impacted by $0.8 million in severance costs.

Headline financials

Total Revenue

$5.75M

Previous: $5.83M-1.3%
EPS (adj)

-$0.61

Previous: -$0.65+6.2%
Capital Expenditures

-$694K

Previous: -$692K-0.3%
Free Cash Flow

-$9.05M

Previous: -$8.45M-7.0%
Net Income

-$8.35M

Previous: -$7.76M-7.6%
Operating Income

-$8.39M

Previous: -$8.03M-4.4%
Gross Profit

$3.82M

Previous: $3.91M-2.2%
Cash & Equivalents

$45.5M

Previous: $16.4M+177.0%
Total Assets

$81.5M

Previous: $63.6M+28.2%
Stock-Based Comp

$2.63M

Previous: $2.04M+28.7%

Revenue & EPS history

Digimarc · Revenue · Quarterly

$5.75M

Q3 2020-1.3%vs Q3 2019
Beat estimate in 4 of 16 quarters(25%)
ActualEstimate

Revenue by segment

Digimarc · $5.75M total across 2 segments · Q3 2020

  • Service
    $3.35M+6.1%
  • Subscription
    $2.4M-10.1%

Forward guidance

Digimarc will hold a conference call today, October 28, 2020, to discuss these results and provide an update on market conditions and execution of strategy.

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 Q3 2020

Historical avgQ3 2020

+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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