Digimarc Corporation · NASDAQ:DMRC
Digimarc — Investor Presentation (January 2015)
31 slides from Digimarc's investor presentation, January 2015
Slide 1: Company Overview
Company Overview January 2015 ©2015 Digimarc Corporation
Slide 2: Safe Harbor Statement
Safe Harbor Statement Before we proceed, please note that during the course of this presentation we will be making certain forward-looking statements. These statements are subject to many assumptions, risks, uncertainties and changes in circumstances. Any assumptions we offer about future performanc
Slide 3: Overview
Overview Twenty Years of R&D • R&D: digital watermarking; automatic ID of media; patent licensing • Security: currency; government-issued IDs; movies, digital images, e-books • Marketing: audience measurement for television and radio Core Strengths/Competitive Advantage • Signal processing experts;
Slide 4: Pre-1998: The marketing funnel
Pre-1998: The marketing funnel 1973 – UPC (barcode) 1992 – Digimarc 1994 – Denso QR Code Amazon — Slide 4 — ©2015 Digimarc Corporation
Slide 5: 1998: Desktop search gives rise to online shopping
1998: Desktop search gives rise to online shopping 1973 – UPC (barcode) 1992 – Digimarc 1994 – Denso QR Code Amazon 1998 – Google MediaBridge — Slide 5 — ©2015 Digimarc Corporation
Slide 6: 2007: Smartphone and dawn of mobile shopping
2007: Smartphone and dawn of mobile shopping 1973 – UPC (barcode) 1992 – Digimarc 1994 – Denso QR Code Amazon 1998 – Google MediaBridge 2005 – ScanLife 2007 – Apple iPhone 2008 – Digimarc ICP Kooaba RedLaser Shazam 2009 – Layar Amazon Flow — Slide 6 — ©2015 Digimarc Corporation
Slide 7: 2010: Digimarc Discover
2010: Digimarc Discover 1973 – UPC (barcode) 1992 – Digimarc 1994 – Denso QR Code Amazon 1998 – Google MediaBridge 2005 – ScanLife 2007 – Apple iPhone 2008 – Digimarc ICP Kooaba RedLaser Shazam 2009 – Layar Amazon Flow 2010 – Digimarc® Discover 2011 – Blippar Vuforia — Slide 7 — ©2015 Digimarc Corpo
Slide 8: 2011-2013: Digimarc Discover adds barcodes, QR, audio IDs
2011-2013: Digimarc Discover adds barcodes, QR, audio IDs 1973 – UPC (barcode) 1992 – Digimarc 1994 – Denso QR Code Amazon 1998 – Google MediaBridge 2005 – ScanLife 2007 – Apple iPhone 2008 – Digimarc ICP Kooaba RedLaser Shazam 2009 – Layar Amazon Flow 2010 – Digimarc® Discover 2011 – Blippar Vufori
Slide 9: 2014: Amazon advances in mobile auto ID; Shazam licenses Digimarc Discover
2014: Amazon advances in mobile auto ID Shazam licenses Digimarc Discover platform g 1973 – UPC (barcode) 1992 – Digimarc 1994 – Denso QR Code Amazon 1998 – Google MediaBridge 2005 – ScanLife 2007 – Apple iPhone 2008 – Digimarc ICP Kooaba RedLaser Shazam 2009 – Layar Amazon Flow 2010 – Digimarc® Dis
Slide 10: Recognize and Engage with the World via Digimarc SDK
Recognize and Engage with the World via Digimarc SDK • Shazam mobile app recognizes music, TV, movies in theaters, and in-store audio • Over 100 million monthly active users • More than 12 billion identifications • Platform soon to be enhanced via collaboration with Digimarc • Adding visual identifi
Slide 11: Digimarc Discover Empowers Mobile-centric Shopper's Journey
Digimarc® Discover Empowers Mobile-centric Shopper’s Journey • Pervasive, intuitive virtual interface between brands and mobile-centric consumers • Effortless discovery across all touchpoints of Shopper’s Journey • Capture impressions for increased engagement • Impulse purchase or save for later • D
Slide 12: Digimarc Barcode: Billions in Savings to Retailers?
Digimarc® Barcode: Billions in Savings to Retailers? • GS1 manages global barcode system to identify physical things in standardized taxonomy • Nonprofit trade association with $400 million annual revenues • Two million companies in 150 countries • 6 billion scans per day • Digimarc joined Solution
Slide 13: Recent Developments
Recent Developments • Customers • Wegmans is our first retail customer • Smithfield Foods is our first global consumer products customer • Walmart is conducting market tests • Industry infrastructure • Datalogic is moving rapidly to full line support for Digimarc Barcode. • Other leading retail scan
Slide 14: Billions of Mobile Sensors Seeking Discovery
Billions of Mobile Sensors Seeking Discovery — Slide 14 — ©2015 Digimarc Corporation
Slide 15: Business Model
Business Model Subscriptions and Services • Counterfeit deterrence system • Guardian for images, e-books, other media • Integration and customization Patent Licensing • IV patent license profit participation • 2nd wave monetization Registration and Encoding • Price/Digimarc® ID annual subscriptions
Slide 16: Opportunities and Risk Management
Opportunities and Risk Management Opportunities • Engagement with Tier 1 retailers and brands • Partnerships with leading infrastructure suppliers • Patent licensing and IP leverage • Entity level deals Risk Management • Inertia • Delays - our work, partners’ work, customer acquisition, market devel
Slide 17: 2015 Priorities
2015 Priorities • Grow revenues, optimize investments, prove the business model • Build sales force • Expand distribution • Retailers and brands • POS scanners • Encoding • Discovery and engagement • Globalization • Expedite adoption and publicize associated evidence of momentum for Digimarc® Discov
Slide 18: Investment Highlights
Investment Highlights Investing in growth • TTM Revenues: $27mm / R&D: $14mm / EBITDAS: ($7mm) • Working capital: $40mm cash and investments / no debt / current ratio: 10:1 Delivering fruits of Investments in growth • Consolidated R&D into licensable platform specification • Major “Shopper's Journey
Slide 19: August 2008 • Bruce Davis
// August 2008 • Bruce Davis ©2010 Digimarc Corporation | Company Confidential
Slide 20: Digimarc Discover for TV
Digimarc® Discover for TV Click here to watch the video • Robust – works in all media distribution paths (TV, AM, FM, YouTube, etc.) • Can identify campaign, channel, source, etc. • Support metrics by device and campaign • “Modeless” discovery, no need to switch between camera and microphone — Slide
Slide 21: Print to Mobile in Magazines
Print to Mobile in Magazines • In January 2013, Cooking Light became the first magazine to make every recipe scannable in a single issue – 79 in total. • Every issue since has leveraged Digimarc® Discover to connect readers to ingredient shopping lists, menu tips, videos, etc. • November 2014 issue
Slide 22: Weekly Sales Circulars in Newspapers and Catalogs
Weekly Sales Circulars in Newspapers and Catalogs • Walmart has begun market trials in Sunday circulars and catalogs — Slide 22 — ©2015 Digimarc Corporation
Slide 23: Digimarc Discover at Home and On the Go
Digimarc® Discover at Home and On the Go In-Home & Lab Test Environments In-Car & Multiple Driving Conditions A Decade of Rigorous Real-World Testing and Analysis with Partners — Slide 23 — ©2015 Digimarc Corporation
Slide 24: Digimarc Discover for Outdoor Advertising
Digimarc® Discover for Outdoor Advertising Outdoor Advertising (Digimarc Image ID) Digital Outdoor Ads (Digimarc Audio ID) Bogota Columbia Shinjuku Station Tokyo Bus-Shelters & Other Brand experience enabled with Signage heavy ambient street noise Click here to listen to the audio — Slide 24 — ©2015
Slide 25: Coming Soon: Digimarc Discover for Live Events
Coming Soon: Digimarc® Discover for Live Events Click here to watch the video Engage Fans During the Match with Audio IDs — Slide 25 — ©2015 Digimarc Corporation
Slide 26: Shopper Engagement with Packaging, Labels and Tags
Shopper Engagement with Packaging, Labels and Tags • Cooking Light – enabling packaged goods based on success in magazine • First retailer – Wegmans private brand products in stores • First global CPG – Smithfield Foods products to reach stores soon — Slide 26 — ©2015 Digimarc Corporation
Slide 27: Signs and Posters
Signs and Posters • JCDecaux – number one outdoor advertising company in the world, testing Digimarc for outdoor advertising in South America — Slide 27 — ©2015 Digimarc Corporation
Slide 28: Digimarc Discover for Indoor Location Services
Digimarc® Discover for Indoor Location Services Click here to watch the video • Use existing audio infrastructure to deliver location specific services to mobile shoppers • Nationwide testing underway — Slide 28 — ©2015 Digimarc Corporation
Slide 29: Faster Scanning at Point of Sale
Faster Scanning at Point of Sale Click here to watch the video — Slide 29 — ©2015 Digimarc Corporation
Slide 30: Age Restricted Sales – Digital Driver Licenses
Age Restricted Sales – Digital Driver Licenses • Retail checkout is the end of the Shopper’s Journey for most shoppers • Shoppers frequently complain about slow process and long lines • Age verification for age-controlled products is a slow manual process • Digimarc is working with MorphoTrust to im
Slide 31: Mobile Payments
Mobile Payments • Retail checkout has three phases: scan, bag, and tender [payment] • Digimarc Mobile Payment SDK intended to provide cost effective payment presentment • Beta phase — Slide 31 — ©2015 Digimarc Corporation