Digimarc Corporation · NASDAQ:DMRC
Digimarc — Needham Growth Conference 2014
23 slides from Digimarc's conference presentation, February 2014
Slide 1: Company Overview
Company Overview February 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 Vision and Mission • Enable mobile devices to see, hear, and understand by providing digital identities for all media objects Legacy • R&D: digital watermarking; automatic ID of media • Patent licensing • Security: currency; government-issued IDs; movies, digital images, e-books Mobile Disc
Slide 4: Delivering Value to Shareholders
Delivering Value to Shareholders • Financial Performance • Strong growth but lumpy revenues • Surplus cash; no debt; quarterly dividend • Legacy of rapid growth and shareholder rewards • 1999-2008: $1mm to $120mm • August 2008: Sale of ID Systems division for $310mm cash • 2008-2013: $19mm to $35mm
Slide 5: Digimarc ICP Facilitates Internet of Everything (IOE)
Digimarc ICP Facilitates 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 knowledge can
Slide 6: IOE Requirements: Accuracy, Efficiency, Ease of Use
IOE Requirements: Accuracy, Efficiency, Ease of Use • Accuracy of “known-item” search: likelihood that correct identity is returned as first result of search (Mean Reciprocal Rank=1). Incorrect identification of objects impedes transactions and increases cognitive load of the user. • Cognitive Load
Slide 7: Fragmentation in Mobile Discovery
Fragmentation in Mobile Discovery TV Radio In-Store Publications Packaging Vendor Technology Audio Fingerprinting Audio Fingerprinting Low Powered Bluetooth Image Recognition QR Codes Mobile App Multiple Apps — Slide 7 — ©2014 Digimarc Corporation
Slide 8: Digimarc Omni-Channel Engagement Platform
Digimarc Omni-Channel Engagement Platform Messaging Campaign/Channel & Assets Specific Analytics TV Radio In-Store Publications Packaging Vendor Image Watermarking Audio Fingerprinting Audio Fingerprinting Low Powered Bluetooth Image Recognition QR Codes Technology Audio Watermarking Audio Watermark
Slide 9: Digimarc High Performance Barcode
Digimarc High Performance Barcode GUINNESS WORLD RECORD! • Industry average throughput (general merchandise): ~24 items/min. • Previous world record for checking and bagging 50 items: ~40 items/min. (75 secs.) • Digimarc’s new world record: ~62 items/min. (48 secs.) — Slide 9 — ©2014 Digimarc Corpor
Slide 10: Introducing the Digimarc Barcode
Introducing the Digimarc® Barcode — Slide 10 — ©2014 Digimarc Corporation
Slide 11: Digimarc Barcodes Will Deliver Billions in Savings to Retailers
Digimarc Barcodes Will Deliver Billions in Savings to Retailers • Barcode is most prevalent means of auto ID in the world • GS1 manages global barcode system to reliably and uniquely identify physical things in well-articulated standardized taxonomy • Two million companies in 150 countries are regis
Slide 12: Digimarc Virtual Payment Card: Light Waves Not Radio Waves
Digimarc Virtual Payment Card: Light Waves Not Radio Waves • Another element of Digimarc ICP Shopper’s Journey enablement • Proof of concept stage • US Bank, major payment network operation, other payment providers • Intuitive and compelling opportunity for consumers to transition to a virtual walle
Slide 13: Digimarc Barcode Launch at NRF 2014
Digimarc Barcode Launch at NRF 2014 • Launched Shopper’s Journey comprehensive engagement platform at retail industry’s biggest trade show, January 2014 – 30,000 attendees • Showcased Digimarc Barcode for consumer packaging • Invisible redundantly encoded over entire surface of package • Fully integ
Slide 14: Digimarc Discover System
Digimarc Discover System • Technical and commercial feasibility of Intuitive Computing Platform (ICP) established • DMRC tech deployed in television, radio, movies, music, digital images, banknotes, identification documents, stamps, magazines, and books • Major system components completed • Encoding
Slide 15: Digimarc Discover Empowers Mobile-centric Shopper's Journey
Digimarc Discover Empowers Mobile-centric Shopper’s Journey • Only supplier in world with comprehensive solution • Pervasive intuitive virtual interface between brands and consumers • Effortless discovery across all touch points of Shopper’s Journey • Capture impressions for increased engagement • I
Slide 16: Retail Industry IT Trends: 2014
Retail Industry IT Trends: 2014 • 11th Annual Retail Info Systems News/IHL Store Systems Study • 2014 is shaping up to be a year for innovation and growth • Retailers are making plans to invest more dollars in innovative technologies this year than ever before • Viewing their next POS as their last
Slide 17: Employees
Heavy Investment in Growth Leading Up to Major Product Launch in 2014 Employees — Slide 17 — ©2014 Digimarc Corporation
Slide 18: Patent Portfolio Growth: 1998-2013
Patent Portfolio Growth: 1998-2013 • 1260 total patent assets • 836 patents issued • 424 applications pending • Exponential patent growth since inception • Recent significant increases in R&D and patent department staffing • Escalating rate of patent filings • Majority of mature patents licensed to
Slide 19: Intuitive Computing Platform (ICP)
Intuitive Computing Platform (ICP) • ICP was invented in 2008 to capture critical IP and enable the Digimarc Discover application • “Seeing & Hearing” devices can engage user/wearer at point of inspiration during daily life • ICP mobile platform extends our senses, allowing anyone to assign and leve
Slide 20: ICP Business Model
ICP Business Model • Patent Licensing • IV patent license profit participation • 2nd wave license fees • Professional Services • Counterfeit deterrence system • Guardian for images, e-books, other media • Integration and customization • Registration and Encoding • Price/watermark with ceilings; annu
Slide 21: Opportunities and Risk Management
Opportunities and Risk Management • Opportunities • Engagement with Tier 1 retailers and brands • Partnerships with leading infrastructure owners • POS scanners – Datalogic: #1 • Packaging and printing vendors – Amcor: #1; HP: #1 • Mobile devices – Qualcomm: 50% smartphone app processor market • Ban
Slide 22: Investment Highlights
Investment Highlights • Solid financial position • 2013 Q1-Q3 revenues: $28mm / EPS: $0.09 / EBITDAS: $6mm / R&D: $9mm • Strong balance sheet (9/30/13): $38mm cash and investments / no debt / current ratio: 9.3:1 • History of delivering value to shareholders • Over $300 million cash returned to shar
Slide 23: I August 2008 • Bruce Davis
I August 2008 • Bruce Davis ©2010 Digimarc Corporation | Company Confidential