NASDAQ$DMRC

Digimarc Corporation · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Digimarc reported a decrease in total revenue and net loss for Q4 2024, with a focus on authentication use cases and a path to positive free cash flow by fiscal year 2026.

Digimarc's Q4 2024 results showed a decrease in total revenue to $8.7 million from $9.3 million in Q4 2023. The company reported a net loss of $8.6 million, an improvement from $10.6 million in the prior year. Digimarc is prioritizing authentication use cases and aims for positive non-GAAP net income by Q4 2025 and positive free cash flow by fiscal year 2026.

  • Total revenue for Q4 2024 decreased to $8.7 million from $9.3 million in Q4 2023.
  • Net loss for Q4 2024 improved to $8.6 million or ($0.40) per share, compared to $10.6 million or ($0.52) per share in Q4 2023.
  • Non-GAAP net loss for Q4 2024 was $4.7 million or ($0.22) per share, an improvement from $5.6 million or ($0.28) per share in Q4 2023.
  • Annual recurring revenue (ARR) as of December 31, 2024, decreased to $20.0 million from $22.3 million as of December 31, 2023, primarily due to a commercial contract expiration.

Headline financials

Total Revenue

$8.66M

Previous: $9.28M-6.7%
EPS (adj)

-$0.22

Previous: -$0.28+21.4%
Gross Profit Margin

61.0%

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

77.0%

Previous: 79.0%-2.5%
Operating Expenses

$14.4M

Previous: $16.8M-14.7%
Non-GAAP OpEx

$11.9M

Previous: $13.4M-11.6%
Annual Recurring Revenue

$20M

Previous: $22.3M-10.3%
Capital Expenditures

-$131K

Previous: -$237K+44.7%
Net Income

-$8.65M

Previous: -$10.6M+18.4%
Operating Income

-$9.1M

Previous: -$7.5M-21.3%
Gross Profit

$5.27M

Previous: $5.86M-10.1%
R&D Expense

$6.34M

Previous: $6.28M+0.9%

Revenue & EPS history

Digimarc · Revenue · Quarterly

$8.66M

Q4 2024-6.7%vs Q4 2023
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

Digimarc is prioritizing authentication use cases and expects to achieve positive non-GAAP net income no later than Q4 2025, leading to meaningfully positive free cash flow in fiscal year 2026 and beyond.

Tailwinds

  • Prioritizing authentication Go-To-Market efforts for near-term opportunities.
  • Reorganized the company to reflect the near-term focus on authentication.
  • Expect to achieve positive non-GAAP net income no later than Q4 2025.
  • Set up to deliver meaningfully positive free cash flow in Fiscal Year 2026 and beyond.
  • Digital watermarks excel at identification and authentication of physical goods and digital assets.

Headwinds

  • No specific negative forward guidance was provided in the report, only a focus on strategic shifts to improve future performance.

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 Q4 2024

Historical avgQ4 2024

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro