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Digimarc Q1 2025 Earnings Report
Digimarc reported its first quarter 2025 financial results, with revenues slightly down but gross profit margin increasing.
Key Takeaways
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.
Digimarc
Digimarc
Digimarc Revenue by Segment
Revenue by Segment
Subscription Revenue
CapyFin.comService Revenue
CapyFin.com 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.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income