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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.
Digimarc
Digimarc
Digimarc Revenue by Segment
Revenue by Segment
Subscription Revenue
CapyFin.comService Revenue
CapyFin.com 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