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Digimarc Corp. (DMRC)
NASDAQ:DMRC
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Earnings Data
Report Date
Feb 26, 2025TBA Not Confirmed
Period Ending
2024 (Q4)Consensus EPS Forecast
-$0.48Last Year’s EPS
-$0.52Same Quarter Last Year
Moderate Buy
Based on 2 Analysts Ratings
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Earnings Call Summary
Earnings Call Date:Nov 14, 2024
|% Change Since: 22.58%
|Next Earnings Date:Feb 26, 2025
Earnings Call Sentiment|Neutral
While there is optimism surrounding a potentially transformational deal and growth in subscription revenue, significant financial impacts from a delayed contract and increased operating expenses create a mixed outlook.Company Guidance
During the Digimarc Corporation's Q3 2024 earnings call, the guidance highlighted the significant impact of a delayed commercial contract renewal, which affected several key financial metrics. The contract's delay resulted in a $900,000 decrease in ending ARR, reducing it to $18.7 million compared to $19.6 million in the previous year. Revenue for the quarter increased by 5% to $9.4 million, with subscription revenue growing by 9% to $5.3 million, accounting for 56% of total revenue. However, service revenue remained flat at $4.2 million. Subscription gross profit margins slightly improved to 86%, while service gross profit margins rose to 61%. Operating expenses increased by 5% to $17.3 million, with non-GAAP operating expenses up by 7% to $14.1 million. The net loss per share was $0.50, with a non-GAAP net loss per share of $0.29. The company ended the quarter with $33.7 million in cash and short-term investments, while free cash flow usage was $7.3 million, primarily due to the timing of cash receipts from the delayed contract. If the contract is signed and paid within Q4, free cash flow is expected to be significantly positive.Potential Transformational Deal
A delayed commercial contract is anticipated to significantly transform both the company's financial outlook and the broader industry it operates in. The company is willing to trade time-to-close for strategic scope and expects a large upsell.
Subscription Revenue Growth
Subscription revenue increased by 9% year-over-year from $4.8 million to $5.3 million, driven by new customer contracts and upsells on existing contracts.
Service Gross Profit Margin Improvement
Service gross profit margin improved from 54% in Q3 last year to 61% in Q3 this year, due to a favorable change in labor mix.
Gift Card Revenue Potential
Revenue from gift card opportunities was recorded in Q3, with expectations for more in Q4 and significant contribution in 2025.
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DMRC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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DMRC Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
| Nov 14, 2024 | $30.12 | $27.17 | -9.79% |
| Aug 13, 2024 | $28.84 | $24.15 | -16.26% |
| May 02, 2024 | $22.61 | $22.88 | +1.19% |
| Feb 28, 2024 | $39.97 | $35.06 | -12.28% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does Digimarc Corp. (DMRC) report earnings?
Digimarc Corp. (DMRC) is schdueled to report earning on Feb 26, 2025, TBA Not Confirmed.
What is Digimarc Corp. (DMRC) earnings time?
Digimarc Corp. (DMRC) earnings time is at Feb 26, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is DMRC EPS forecast?
DMRC EPS forecast for the fiscal quarter 2024 (Q4) is -$0.48.
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