Digimarc(US:DMRC)2025-02-26 21:05Revenue Performance - Annual recurring revenue (ARR) decreased to $20.0 million as of December 31, 2024, down from $22.3 million as of December 31, 2023, primarily due to a $5.8 million decrease from a commercial contract expiration[3]. - Subscription revenue for Q4 2024 decreased to $5.0 million compared to $5.6 million in Q4 2023, reflecting the impact of the contract expiration[4]. - Total revenue for Q4 2024 decreased to $8.7 million, down from $9.3 million in Q4 2023[5]. - Subscription revenue for fiscal year 2024 increased to $22.4 million from $19.0 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 $34.9 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) per share, an improvement from a net loss of $10.6 million or ($0.52) per share in Q4 2023[8]. - GAAP gross profit for Q4 2024 was $5,267 thousand, a decrease from $5,829 thousand in Q4 2023, while non-GAAP gross profit was $6,691 thousand compared to $7,342 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 $45,959 thousand in 2023[30]. - Non-GAAP net loss for the year ended December 31, 2024, was $21,386 thousand, compared to $26,423 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 $27.2 million at the end of 2023[15]. - Cash and cash equivalents decreased to $12,365 thousand in 2024 from $21,456 thousand in 2023[28]. - Total current assets increased to $39,331 thousand in 2024 from $37,080 thousand in 2023, driven by an increase in marketable securities[28]. - Total liabilities decreased to $14,407 thousand in 2024 from $18,625 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) 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) thousand in 2023[30]. - Aggregate cash, cash equivalents, and marketable securities totaled $28,730 thousand at the end of 2024, up from $27,182 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].