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Dec 31, 2024
Digimarc Q4 2024 Earnings Report
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.
Key Takeaways
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.
Revenue by Segment
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.
Positive Outlook
- 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.
Challenges Ahead
- No specific negative forward guidance was provided in the report, only a focus on strategic shifts to improve future performance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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