Digimarc Corporation · NASDAQ:DMRC
Digimarc — Investor Presentation (October 2014)
17 slides from Digimarc's investor presentation, October 2014
Slide 1: Company Overview
Company Overview October 2014 ©2014 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 • Security: currency; government-issued IDs; movies, digital images, e-books • Marketing: audience measurement for television and radio • Patent licensing Core Strengths/Competitive Advantage • Signal processing experts;
Slide 4: Core Business Composition and Trends
Core Business Composition and Trends ($’s in 000’s) Q3-13 Q4-13 Q1-14 Q2-14 Subscription $1,424 $1,350 $1,412 $1,496 Services $3,030 $2,650 $2,988 $2,716 Licensing $2,971 $2,826 $2,805 $1,451 • Subscription and Services • Payments • Banknote counterfeit deterrence – R&D, maintenance, training and co
Slide 5: Strong Patent Position
Strong Patent Position • 1276 total patent assets • 848 patents issued • 428 applications pending • Exponential patent growth since inception • Majority of mature patents licensed to IV in 2010 • Recent significant increases in R&D and patent department staffing • Escalating rate of patent filings •
Slide 6: Major Growth Initiative: Intuitive Computing Platform (ICP)
Major Growth Initiative: Intuitive Computing Platform (ICP) • Digimarc pioneered ICP in 2008, enabling the Digimarc® Discover application and the capture of critical IP before this trend gathered momentum • “Seeing & Hearing” devices can engage user/wearer at point of inspiration during daily life •
Slide 7: Future of Search is Discovery in the Internet of Everything (IOE)
Future of Search is Discovery in the Internet of Everything (IOE) • Virtually everything will be connected to the Internet • Every object that can have a network identity should have one • ID is the foundation of knowledge • Knowledge motivates and directs actions • ID must be reliable or derived kn
Slide 8: 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 9: Digimarc ICP Anticipated Evolution of Search to Mobile
Digimarc ICP Anticipated Evolution of Search to Mobile PREFERRED PATH TO PURCHASE (Accurate & Easy) TIMELINE: eBay/Red Laser 1973 Universal Product Code (barcode) 1D Barcode (2B/day) ICP State Machine 1992 Digimarc Services WM Content Network • mCommerce (Avails) Engine 1994 Denso QR Code ACCURACY •
Slide 10: Digimarc High Performance Barcode
Digimarc High Performance Barcode GUINNESS WORLD RECORD! • Industry average throughput (general merchandise): ~24 items/min. (125 sec.) • Previous world record for checking and bagging 50 items: ~40 items/min. (75 sec.) • Digimarc’s new world record: ~62 items/min. (48 sec.) — Slide 10 — ©2014 Digim
Slide 11: Digimarc Barcode Demonstration
Digimarc® Barcode Demonstration To watch the video, visit http://www.digimarc.com/products/discover/barcode#barcodeDemo — Slide 11 — ©2014 Digimarc Corporation
Slide 12: Digimarc Barcode: Billions in Savings to Retailers?
Digimarc® Barcode: Billions in Savings to Retailers? • GS1 manages global barcode system to reliably and uniquely identify physical things in well-articulated standardized taxonomy • Nonprofit trade association with $400 million annual revenues • Two million companies in 150 countries are registered
Slide 13: Digimarc Barcode Rollout
Digimarc® Barcode Rollout POS Scanners • Retailers beginning process of transitioning stores from laser to imaging scanners • World leader, Datalogic, launch platform • Other manufacturers to follow as delivery of imaging scanners expands Retailers • Start with Digimarc-enabling retailer private lab
Slide 14: 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 15: 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 16: Investment Highlights
Investment Highlights Investing in growth • TTM Revenues: $27mm / EBITDAS: ($6mm) / R&D: $14mm • Working capital (6/30/14): $28mm cash and investments / no debt / current ratio: 8:1 • $100mm shelf registration; $30mm at-the-market offering managed by Wells Fargo Delivering fruits of Investments in g
Slide 17: August 2008 • Bruce Davis
// August 2008 • Bruce Davis ©2010 Digimarc Corporation | Company Confidential