Digimarc Corporation · NASDAQ:DMRC
Digimarc — Investor Presentation (May 2015)
26 slides from Digimarc's investor presentation, May 2015
Slide 1: Company Overview
Company Overview May 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 • Building and demonstrating elements of comprehensive platform fo
Slide 4: Evolution of Computer-Assisted Shopping
Evolution of Computer-Assisted Shopping Andrew Appel, president and chief executive officer of IRI. “By 2020, 90% of digital access will be mobile and the average person who saw 500 ads per day years ago will see 5,000 ads.” 1973 – UPC (barcode) 1992 – Digimarc 1994 – Denso QR Code Amazon 1998 – Goo
Slide 5: Digimarc and the Evolution of Auto ID
Digimarc and the Evolution of Auto ID • Barcode was a transformative technology • Digimarc Barcode does everything barcode does better • Digimarc Barcode can be applied to audio as well as images • Reliable, efficient, economical, and scalable • Three level system architecture: Identify, Discover, E
Slide 6: Billions in Efficiency Gains for Retailers
Billions in Efficiency Gains for Retailers • Much faster and more reliable scanning at POS • Massive potential labor costs savings • Preliminary savings estimate: every additional item/minute in checkout throughput could save top 120 global retailers up to $500 million per year • GS1 manages global
Slide 7: Billions of Mobile Sensors Seeking Discovery
Billions of Mobile Sensors Seeking Discovery — Slide 7 — ©2015 Digimarc Corporation
Slide 8: Empowering Modern Mobile-centric Shopper's Journey
Empowering Modern 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 — Slide 8 — ©
Slide 9: Visual Shazam for Consumers
Visual Shazam for Consumers • 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 identification first • Expanding
Slide 10: Recent Developments
Recent Developments • Retailers and brands • Wegmans is our first retail customer • Walmart is conducting market tests • Many prospects in funnel • Industry infrastructure • Datalogic is moving rapidly to full line support for Digimarc Barcode. • Other leading retail scanner vendors are expected to
Slide 11: Business Model
Business Model Patent Licensing • Licensing market in doldrums Subscriptions and Services • Counterfeit deterrence system • Guardian for images, e-books, other media • Integration and customization Digimarc Barcode • $50/code annual subscriptions • Similar to GS1 model of annual subscriptions with r
Slide 12: 2015 Priorities
2015 Priorities • Lay foundation for revenue growth, optimize investments, prove the business model • Build direct sales force and expand Channel Partners program • Expand distribution • Retailers and brands • POS scanners • Encoding • Discovery and engagement • Globalization • Expedite adoption and
Slide 13: Investment Highlights
Investment Highlights Investing in growth • TTM Revenues: $24mm / R&D: $13mm / EBITDAS: ($9mm) • Working capital: $37mm 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 14: August 2008 • Bruce Davis
// August 2008 • Bruce Davis ©2010 Digimarc Corporation | Company Confidential
Slide 15: Digimarc Discover for TV
Digimarc® Discover for TV CLICK TO WATCH 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 15 — ©20
Slide 16: 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 17: 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 17 — ©2015 Digimarc Corporation
Slide 18: Digimarc Discover at Home and On the Go
Digimarc® Discover at Home and On the Go 31'-0" Receiver/Blu-Ray/TV Back Back Outward Inward CENTER Inward Outward Front Front 3 feet 6 feet 32'-4 7/8" 9 feet 12 feet 2 2 1 1 1 4S 4 4 iPad2 iPad2 15 feet 2'-6" DESK In-Home & Lab Test Environments In-Car & Multiple Driving Conditions A Decade of Rigo
Slide 19: 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 – CLICK TO PLAY AUDIO Bus-Shelters & Other Brand experience enabled with Signage heavy ambient street noise — Slide 19 — ©2015 Digimarc Co
Slide 20: Coming Soon: Digimarc Discover for Live Events
Coming Soon: Digimarc® Discover for Live Events CLICK TO WATCH VIDEO Engage Fans During the Match with Audio IDs — Slide 20 — ©2015 Digimarc Corporation
Slide 21: 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 21 — ©2015 Digimarc Corporation
Slide 22: Signs and Posters
Signs and Posters • JCDecaux – number one outdoor advertising company in the world, testing Digimarc for outdoor advertising in South America — Slide 22 — ©2015 Digimarc Corporation
Slide 23: Digimarc Discover for Indoor Location Services
Digimarc® Discover for Indoor Location Services CLICK TO WATCH VIDEO • Use existing audio infrastructure to deliver location specific services to mobile shoppers • Nationwide testing underway — Slide 23 — ©2015 Digimarc Corporation
Slide 24: Faster Scanning at Point of Sale
Faster Scanning at Point of Sale CLICK TO WATCH VIDEO — Slide 24 — ©2015 Digimarc Corporation
Slide 25: 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 26: 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 26 — ©2015 Digimarc Corporation