Beaverton, Ore. — February 26, 2020 — Digimarc Corporation (NASDAQ: DMRC), creator of the Digimarc Platform for digital identification and detection, reported financial results for the fourth quarter and full year ended December 31, 2019.
Fourth Quarter 2019 Financial Results
Revenue for the fourth quarter of 2019 increased two percent to $5.3 million compared to $5.2 million in the fourth quarter of 2018. The increase in revenue was primarily due to higher subscription revenue, partially offset by lower service revenue due to timing of program work.
Operating expenses for the fourth quarter of 2019 increased nine percent to $12.4 million compared to $11.4 million in the same quarter a year-ago. The increase in operating expenses was primarily due to routine annual compensation and benefits adjustments for employees and increased headcount.
Operating loss for the fourth quarter of 2019 increased seven percent to $8.9 million compared to $8.3 million in the fourth quarter of 2018. The increased operating loss was primarily due to higher operating expenses.
Net loss for the fourth quarter of 2019 increased eight percent to $8.7 million or $(0.73) per diluted share compared to net loss of $8.0 million or $(0.70) per diluted share in the same quarter a year-ago.
At quarter-end, cash, cash equivalents and marketable securities totaled $36.8 million compared to $42.8 million at September 30, 2019.
Full Year 2019 Financial Results
Revenue for the full year 2019 increased eight percent to $23.0 million, compared to $21.2 million in 2018. The increase in revenue was primarily due to higher subscription revenue reflecting higher Digimarc Discover and Digimarc Barcode revenue, partially offset by lower Digimarc Guardian revenue.
Operating expenses for the full year 2019 increased five percent to $48.7 million compared to $46.3 million in 2018. The increase in operating expenses was primarily due to routine annual compensation and benefits adjustments for employees.
Operating loss for the full year 2019 increased one percent to $33.7 million compared to an operating loss of $33.5 million in 2018. The increased operating loss was primarily due to higher operating expenses, partially offset by higher revenue.
Net loss for the full year 2019 increased one percent to $32.8 million or $(2.79) per diluted share, compared to a net loss of $32.5 million or $(2.86) per diluted share in 2018.
Digimarc will hold a conference call today (Wednesday, February 26, 2020) to discuss these results, as well as provide an update on market conditions and execution of strategy. Chairman and CEO Bruce Davis and CFO Charles Beck will host the call starting at 5:00 p.m. Eastern time (2:00 p.m. Pacific time). A question and answer session will follow management’s presentation.
The conference call will be broadcast live and available for replay here and in the investor section of the company's website. The conference call script will also be posted to the company’s website shortly before the call.
For those who wish to listen to the call via telephone, please dial the number below at least five minutes prior to the scheduled start time:
Toll-Free Number: 866-562-9934
International Number: 706-679-0638
Conference ID: 2985885
If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 949-574-3860.
Digimarc Corporation (NASDAQ: DMRC) is a pioneer in the automatic identification of media, including packaging, other commercial print, digital images, audio and video. The Digimarc Platform provides innovative and comprehensive automatic recognition software and services to simplify search, and transform information discovery through unparalleled reliability, efficiency and security. The Digimarc Platform enables applications that benefit retailers and consumer brands, national and state government agencies, media and entertainment industries, and others. Digimarc is based in Beaverton, Oregon with a growing supplier network around the world. Visit digimarc.com and follow us @digimarc to learn more about The Barcode of Everything®.
With the exception of historical information contained in this release, the matters described in this release contain various “forward-looking statements.” These forward-looking statements include statements identified by terminology such as “will,” “should,” “expects,” “estimates,” “predicts” and “continue” or other derivations of these or other comparable terms. These forward-looking statements are statements of management's opinion and are subject to various assumptions, risks, uncertainties and changes in circumstances. Actual results may vary materially from those expressed or implied from the statements in this release as a result of changes in economic, business and/or regulatory factors. More detailed information about risk factors that may affect actual results are set forth in the company's Form 10-K for the year ended December 31, 2018 and in subsequent periodic reports filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's opinions only as of the date of this release. Except as required by law, Digimarc undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this release.
Chief Financial Officer
Gateway Investor Relations
Investor Relations for Digimarc