Digimarc Corporation has recently released its 10-Q report, providing insights into its financial performance and operations for the three and six-month periods ended June 30, 2024. The company, based in Beaverton, Oregon, is a leader in providing automatic identification solutions to commercial and government customers globally. Its offerings include Digimarc Validate protects, Digimarc Engage, and Digimarc Recycle, which are used in various applications such as sorting consumer-packaged goods in recycling streams.
In the Management’s Discussion and Analysis of Financial Condition and Results of Operations, Digimarc Corporation highlighted its total revenue for the three-month period ended June 30, 2024, which increased by $1.6 million to $10.4 million compared to the corresponding period in 2023. This increase was primarily driven by higher subscription revenue from new and existing commercial contracts, partially offset by lower service revenue.
For the six-month period ended June 30, 2024, the total revenue increased by $3.7 million to $20.3 million compared to the same period in 2023. This increase was primarily attributed to higher subscription revenue from new and existing commercial contracts and higher service revenue.
The company's operating expenses for the three-month period ended June 30, 2024, increased by $0.7 million to $16.8 million compared to the corresponding period in 2023. The increase was primarily driven by higher compensation costs and consulting and contractor costs, partially offset by lower lease impairment expense.
In contrast, the total operating expenses for the six-month period ended June 30, 2024, decreased by $1.2 million to $33.9 million compared to the same period in 2023. This decrease was primarily due to lower compensation costs and lease impairment expense, partially offset by higher consulting and contractor costs.
Digimarc's revenue by geography showed that its international revenue for the three-month period ended June 30, 2024, increased by $1.03 million to $6.91 million compared to the same period in 2023. The domestic revenue also increased by $0.62 million to $3.47 million compared to the corresponding period in 2023.
As a result of these announcements, the company's shares have moved -16.3% on the market, and are now trading at a price of $24.15. For more information, read the company's full 10-Q submission here.
