Beaverton, Ore. – April 28, 2021 – Digimarc Corporation (NASDAQ: DMRC), creator of the Digimarc Platform for digital identification and detection, reported financial results for the first quarter ended March 31, 2021.
First Quarter 2021 Financial Results
Revenue for the first quarter of 2021 increased eight percent to $6.7 million compared to $6.2 million in the first quarter of 2020. Service revenue increased one percent, reflecting growth in services to Commercial[1] customers, partially offset by a decrease in services to a Government customer as a result of timing of program work. Subscription revenue increased 19%, reflecting the impact of a new contract with a Commercial customer.
Operating expenses for the first quarter of 2021 decreased four percent to $12.6 million compared to $13.0 million in the same quarter a year-ago, reflecting lower travel, compensation and marketing costs.
Operating loss for the first quarter of 2021 decreased nine percent to $8.2 million compared to $9.1 million in the first quarter of 2020, due to higher revenue and lower operating expenses.
Net loss for the first quarter of 2021 decreased eight percent to $8.2 million or $(0.50) per diluted share compared to net loss of $8.9 million or $(0.74) per diluted share in the same quarter a year-ago.
At quarter-end, cash, cash equivalents, short- and long-term marketable securities totaled $70.7 million compared to $77.7 million at December 31, 2020.
Conference call
Digimarc will hold a conference call today (Wednesday, April 28, 2021) to discuss these results and provide an update on market conditions and execution of strategy. President and CEO Riley McCormack and CFO Charles Beck will host the call starting at 5:00 p.m. Eastern time (2:00 p.m. Pacific time). A question and answer session will follow management’s presentation.
The conference call will be broadcast live and available for replay here and in the investor section of the company's website. The conference call script will also be posted to the company's website shortly before the call.
For those who wish to call in via telephone to ask a question, please dial the number below at least five minutes before the scheduled start time:
Toll-Free Number: 866-562-9934
International Number: 706-679-0638
Conference ID: 9483867
If you have any difficulty connecting with the conference call, please contact Digimarc investor relations team at +1 503-469-4826.
Company contact:
Charles Beck
Chief Financial Officer
cbeck@digimarc.com
+1 503-469-4721
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About Digimarc
Digimarc Corporation (NASDAQ: DMRC) is a pioneer in the automatic identification of media, including packaging, other commercial print, digital images, audio and video. The Digimarc Platform takes industry beyond the barcode, providing innovative and comprehensive automatic identification software and services to simplify search and transform information discovery through unparalleled reliability, efficiency and security. The Digimarc Platform enables applications that benefit retailers and consumer brands, national and state government agencies, media and entertainment industries, and others. Digimarc is based in Beaverton, Oregon, with a growing supplier network around the world. Visit us at digimarc.com on LinkedIN and follow us on Twitter @digimarc to learn more about The Barcode of Everything®.
Forward-looking statements
Except for historical information contained in this release, the matters described in this release contain various “forward-looking statements.” These forward-looking statements include statements identified by terminology such as “will,” “should,” “expects,” “estimates,” “predicts” and “continue” or other derivations of these or other comparable terms. These forward-looking statements are statements of management's opinion and are subject to various assumptions, risks, uncertainties and changes in circumstances. Actual results may vary materially from those expressed or implied from the statements in this release as a result of changes in economic, business and regulatory factors. More detailed information about risk factors that may affect actual results are outlined in the company's Form 10-K for the year ended December 31, 2020, and in subsequent periodic reports filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's opinions only as of the date of this release. Except as required by law, Digimarc undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this release.
[1] Commercial includes customers previously categorized as Retail and Media as well as a small number of customers previously categorized as Government. The change in categorization was made to better align with the structure of our sales and delivery organization and is a more accurate representation of how we view and manage our business. Management will provide comparative information under the new and old reporting structure for each quarter of fiscal 2021 and 2020, along with additional bookings disclosure not historically provided, in the earnings call transcripts, starting with this quarter. These transcripts are posted on our website.
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