Digimarc(US:DMRC)2024-11-14 21:05Revenue Performance - Annual recurring revenue (ARR) decreased to $18.7 million as of September 30, 2024, down from $19.6 million as of September 30, 2023, reflecting a $0.9 million decrease due to delayed contract renewals [3] - Subscription revenue for Q3 2024 increased to $5.3 million, compared to $4.8 million in Q3 2023, primarily driven by higher revenue from new and existing contracts [4] - Total revenue for Q3 2024 increased to $9.4 million, up from $9.0 million in Q3 2023, indicating a growth of approximately 4.4% year-over-year [5] Profitability Metrics - Gross profit margin for Q3 2024 improved to 62%, compared to 58% in Q3 2023, with subscription gross profit margin rising to 86% from 85% [6] - Non-GAAP gross profit margin for Q3 2024 increased to 78%, compared to 76% in Q3 2023, reflecting improved operational efficiency [6] - GAAP gross profit for Q3 2024 was $5,897,000, up from $5,223,000 in Q3 2023, representing a 12.9% increase [18] Operating Expenses and Losses - Operating expenses for Q3 2024 increased to $17.3 million, up from $16.4 million in Q3 2023, primarily due to severance costs and changes in labor costs [7] - Net loss for Q3 2024 was $10.8 million, or ($0.50) per share, compared to a net loss of $10.7 million, or ($0.53) per share, in Q3 2023 [8] - Non-GAAP net loss for Q3 2024 was $6,117,000, compared to $5,936,000 in Q3 2023, indicating a slight increase in losses [18] Cash and Assets - Cash, cash equivalents, and marketable securities totaled $33.7 million as of September 30, 2024, compared to $27.2 million at December 31, 2023 [8] - Total current assets increased to $44,794,000 as of September 30, 2024, compared to $37,080,000 at December 31, 2023, reflecting a 20.5% growth [19] - Cash and cash equivalents, along with marketable securities, totaled $33,686,000 at the end of Q3 2024, up from $27,182,000 at the beginning of the period [21] Liabilities and Equity - Total liabilities decreased to $14,864,000 as of September 30, 2024, from $18,625,000 at December 31, 2023, a reduction of 20.0% [20] - Shareholders' equity increased to $70,160,000 as of September 30, 2024, compared to $61,927,000 at December 31, 2023, reflecting a 13.4% increase [20] Future Outlook - The company anticipates significant future opportunities, despite current revenue not reflecting this potential [2] - Digimarc's partnership with global central banks continues to support its market position in digital watermarking technologies [13] Cash Flow - The company reported a net cash used in operating activities of $22,337,000 for the nine months ended September 30, 2024, compared to $16,679,000 for the same period in 2023 [21] - The company issued common stock net of issuance costs amounting to $32,218,000 during the nine months ended September 30, 2024 [21]