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Digimarc(DMRC) - 2024 Q4 - Annual Results
DMRCDigimarc(DMRC)2025-02-26 21:05

Revenue Performance - Annual recurring revenue (ARR) decreased to 20.0millionasofDecember31,2024,downfrom20.0 million as of December 31, 2024, down from 22.3 million as of December 31, 2023, primarily due to a 5.8milliondecreasefromacommercialcontractexpiration[3].−SubscriptionrevenueforQ42024decreasedto5.8 million decrease from a commercial contract expiration[3]. - Subscription revenue for Q4 2024 decreased to 5.0 million compared to 5.6millioninQ42023,reflectingtheimpactofthecontractexpiration[4].−TotalrevenueforQ42024decreasedto5.6 million in Q4 2023, reflecting the impact of the contract expiration[4]. - Total revenue for Q4 2024 decreased to 8.7 million, down from 9.3millioninQ42023[5].−Subscriptionrevenueforfiscalyear2024increasedto9.3 million in Q4 2023[5]. - Subscription revenue for fiscal year 2024 increased to 22.4 million from 19.0millioninfiscalyear2023,drivenbynewandexistingcontracts[9].−Totalrevenueforfiscalyear2024increasedto19.0 million in fiscal year 2023, driven by new and existing contracts[9]. - Total revenue for fiscal year 2024 increased to 38.4 million compared to 34.9millioninfiscalyear2023[11].ProfitabilityMetrics−GrossprofitmarginforQ42024decreasedto6134.9 million in fiscal year 2023[11]. Profitability Metrics - Gross profit margin for Q4 2024 decreased to 61% from 63% in Q4 2023, while non-GAAP gross profit margin decreased to 77% from 79%[6][7]. - Net loss for Q4 2024 was 8.6 million or (0.40)pershare,animprovementfromanetlossof0.40) per share, an improvement from a net loss of 10.6 million or (0.52)pershareinQ42023[8].−GAAPgrossprofitforQ42024was0.52) per share in Q4 2023[8]. - GAAP gross profit for Q4 2024 was 5,267 thousand, a decrease from 5,829thousandinQ42023,whilenon−GAAPgrossprofitwas5,829 thousand in Q4 2023, while non-GAAP gross profit was 6,691 thousand compared to 7,342thousand[26].−Non−GAAPgrossprofitmarginforQ42024was777,342 thousand[26]. - Non-GAAP gross profit margin for Q4 2024 was 77%, slightly down from 79% in Q4 2023[26]. - GAAP net loss for the year ended December 31, 2024, was 39,010 thousand, an improvement from a net loss of 45,959thousandin2023[30].−Non−GAAPnetlossfortheyearendedDecember31,2024,was45,959 thousand in 2023[30]. - Non-GAAP net loss for the year ended December 31, 2024, was 21,386 thousand, compared to 26,423thousandin2023[30].CashFlowandFinancialPosition−Cash,cashequivalents,andmarketablesecuritiestotaled26,423 thousand in 2023[30]. Cash Flow and Financial Position - Cash, cash equivalents, and marketable securities totaled 28.7 million as of December 31, 2024, compared to 27.2millionattheendof2023[15].−Cashandcashequivalentsdecreasedto27.2 million at the end of 2023[15]. - Cash and cash equivalents decreased to 12,365 thousand in 2024 from 21,456thousandin2023[28].−Totalcurrentassetsincreasedto21,456 thousand in 2023[28]. - Total current assets increased to 39,331 thousand in 2024 from 37,080thousandin2023,drivenbyanincreaseinmarketablesecurities[28].−Totalliabilitiesdecreasedto37,080 thousand in 2023, driven by an increase in marketable securities[28]. - Total liabilities decreased to 14,407 thousand in 2024 from 18,625thousandin2023,indicatingimprovedfinancialstability[28].−FreecashflowfortheyearendedDecember31,2024,was18,625 thousand in 2023, indicating improved financial stability[28]. - Free cash flow for the year ended December 31, 2024, was (27,215) thousand, compared to (22,735)thousandin2023,reflectingincreasedcashusage[30].−Thecompanyreportedanetcashusedinoperatingactivitiesof(22,735) thousand in 2023, reflecting increased cash usage[30]. - The company reported a net cash used in operating activities of (26,572) thousand for the year ended December 31, 2024, compared to (21,995)thousandin2023[30].−Aggregatecash,cashequivalents,andmarketablesecuritiestotaled(21,995) thousand in 2023[30]. - Aggregate cash, cash equivalents, and marketable securities totaled 28,730 thousand at the end of 2024, up from 27,182thousandattheendof2023[30].FutureOutlook−Thecompanyexpectstoachievepositivenon−GAAPnetincomebyQ42025andmeaningfulpositivefreecashflowinfiscalyear2026andbeyond[2].OperatingExpenses−Operatingexpensesforfiscalyear2024decreasedto27,182 thousand at the end of 2023[30]. Future Outlook - The company expects to achieve positive non-GAAP net income by Q4 2025 and meaningful positive free cash flow in fiscal year 2026 and beyond[2]. Operating Expenses - Operating expenses for fiscal year 2024 decreased to 65.5 million from $68.4 million in fiscal year 2023, primarily due to lower cash and stock compensation costs[13].