Digimarc Reports Second Quarter 2024 Financial Results

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[{"type":"text","content":"\nAnnual Recurring Revenue(1) Increases 44%\n\n\nSubscription Gross Profit Margin(2) Expands to 89%\n\n\n BEAVERTON, Ore.--(BUSINESS WIRE)--\nDigimarc Corporation (NASDAQ: DMRC) reported financial results for the second quarter ended June 30, 2024.\n\n\n“Digimarc made significant progress on multiple fronts in Q2, highlighted by three exciting developments likely to have a profound impact on the second half of this year and beyond,” said Digimarc CEO Riley McCormack. “This progress provides further evidence that we believe Digimarc will not only unlock the massive total addressable markets (‘TAMs’) on which we are focused today, but also that new TAMs can develop incredibly rapidly based on our ability to identify and authenticate physical and digital assets where other means of identification and authentication don’t work well, or don’t work at all.”\n\n\nSecond Quarter Financial Results\n\n\nAnnual recurring revenue(1) as of June 30, 2024 increased to $23.9 million compared to $16.7 million as of June 30, 2023.\n\n\nSubscription revenue for the second quarter of 2024 increased to $6.4 million compared to $4.7 million for the second quarter of 2023, primarily reflecting higher subscription revenue from new and existing commercial contracts.\n\n\nService revenue for the second quarter of 2024 decreased to $4.0 million compared to $4.1 million for the second quarter of 2023, primarily reflecting lower service revenue from commercial customers.\n\n\nTotal revenue for the second quarter of 2024 increased to $10.4 million compared to $8.7 million for the second quarter of 2023.\n\n\nGross profit margin for the second quarter of 2024 increased to 66% compared to 56% for the second quarter of 2023. Excluding amortization expense on acquired intangible assets, subscription gross profit margin increased to 89% from 84% and service gross profit margin increased to 58% from 51% for the second quarter of 2024 compared to the second quarter of 2023.\n\n\nNon-GAAP gross profit margin for the second quarter of 2024 increased to 80% compared to 74% for the second quarter of 2023.\n\n\nOperating expenses for the second quarter of 2024 increased to $16.8 million compared to $16.1 million for the second quarter of 2023.\n\n\nNon-GAAP operating expenses for the second quarter of 2024 increased to $14.0 million compared to $12.9 million for the sec...

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