Twitter

Link your Twitter Account to Market Wire News


When you linking your Twitter Account Market Wire News Trending Stocks news and your Portfolio Stocks News will automatically tweet from your Twitter account.


Be alerted of any news about your stocks and see what other stocks are trending.



home / news releases / DMRC - Digimarc Reports Fourth Quarter and Fiscal Year 2021 Financial Results


DMRC - Digimarc Reports Fourth Quarter and Fiscal Year 2021 Financial Results

PR Newswire

BEAVERTON, Ore. , March 2, 2022 /PRNewswire/ -- Digimarc Corporation (NASDAQ: DMRC) reported financial results for the fourth quarter and fiscal year ended December 31, 2021 .

Fourth Quarter 2021 Financial Results
Revenue for the fourth quarter of 2021 increased 28% to $7.1 million compared to $5.6 million in the fourth quarter of 2020, reflecting higher subscription revenue, primarily related to the sale of 10 non-core patents from our patent portfolio, and higher service revenue, primarily related to increased HolyGrail 2.0 activities.

Operating expenses for the fourth quarter of 2021 increased 13% to $13.2 million compared to $11.7 million in the fourth quarter of 2020, reflecting $1.0 million of non-recurring legal and accounting costs incurred for the acquisition of EVRYTHNG Limited. Excluding these non-recurring costs, operating expenses increased $0.4 million, or 4%, to $12 .1 million, reflecting higher consulting, travel and marketing costs.

Operating loss for the fourth quarter of 2021 increased 5% to $8.2 million compared to $7.8 million in the fourth quarter of 2020, due to higher operating expenses partially offset by higher revenue.

Net loss for the fourth quarter of 2021 increased 5% to $8.2 million or $(0.50) loss per common share compared to $7.8 million or $(1.27) loss per common share in the fourth quarter of 2020. The loss per common share in the fourth quarter of 2020 was impacted by an $11.4 million adjustment representing the intrinsic value of the Series B Convertible Preferred Stock issued to TCM|Strategic Partners LLP that converted to common stock in December 2020 .

Fiscal Year 2021 Financial Results
Revenue for fiscal year 2021 increased 11% to $26.5 million compared to $24.0 million in fiscal year 2020, reflecting higher subscription revenue, primarily related to the sale of 10 non-core patents from our patent portfolio and from contracts with new customers, and higher service revenue, primarily related to increased HolyGrail 2.0 activities.

Operating expenses for fiscal year 2021 increased 18% to $57.6 million compared to $48.9 million in fiscal year 2020, reflecting $6 .2 million of non-recurring cost incurred under the Separation Agreement and General Release we entered into with our former chief executive officer in April 2021 upon his retirement and $1.1 million of non-recurring legal and accounting costs incurred for the acquisition of EVRYTHNG Limited. Excluding these non-recurring costs, operating expenses increased $1.4 million, or 3%, to $50 .3 million, reflecting higher consulting and recruiting costs, partially offset by lower compensation costs.

Operating loss for fiscal year 2021 increased 21% to $39.9 million compared to $32.8 million in fiscal year 2020, due to higher operating expenses partially offset by higher revenue.

Other income, net for fiscal year 2021 was $5.1 million , reflecting a $5.1 million gain realized on the forgiveness of our Paycheck Protection Program loan in September 2021 .

Net loss for fiscal year 2021 increased 7% to $34.8 million or $(2.11) loss per common share compared to a net loss of $32.5 million or $(3.41) loss per common share in fiscal year 2020. The loss per common share in fiscal year 2020 was impacted by the same $11.4 million adjustment noted above.

At December 31, 2021 , cash, cash equivalents, short- and long-term marketable securities totaled $41.6 million compared to $77.7 million at December 31, 2020 .

Conference call
Digimarc will hold a conference call today ( Wednesday, March 2, 2022 ) to discuss these results and provide an update on market conditions and execution of strategy. CEO Riley McCormack , CFO Charles Beck and CLO Robert Chamness 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 call in via telephone to ask a question, please dial the number below at least five minutes before the scheduled start time:

Toll-Free Number: 866-562-9934
International Number: 706-679-0638
Conference ID: 8569889

If you have any difficulty connecting with the conference call, please contact Lara Burhenn at +1 503-469-4704.

About Digimarc
Digimarc Corporation (NASDAQ: DMRC) is a pioneer and leader in digital watermarking solutions and the automatic identification of media, including packaging, commercial print, digital images, audio and video. Digimarc helps customers drive efficiency, accuracy and security across physical and digital supply chains. Visit us at digimarc.com on LinkedIn and follow us on Twitter @digimarc to learn more.

Forward-looking statements
Except for 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 regulatory factors. More detailed information about risk factors that may affect actual results are outlined in the company's Form 10-K for the year ended December 31, 2020 , 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.

Digimarc Corporation

Consolidated Income Statement Information

(in thousands, except per share amounts)

(Unaudited)




Three Month Information



Twelve Month Information




December 31,



December 31,



December 31,



December 31,




2021



2020



2021



2020


Revenue:

















Service


$

3,499



$

2,899



$

15,006



$

13,881


Subscription



3,626




2,654




11,514




10,109


Total revenue



7,125




5,553




26,520




23,990


Cost of revenue:

















Service



1,584




1,136




6,299




5,827


Subscription



586




559




2,478




2,107


Total cost of revenue



2,170




1,695




8,777




7,934


Gross profit:

















Service



1,915




1,763




8,707




8,054


Subscription



3,040




2,095




9,036




8,002


Total gross profit



4,955




3,858




17,743




16,056


Gross profit margin:

















Service



55%




61%




58%




58%


Subscription



84%




79%




78%




79%


Total gross profit margin



70%




69%




67%




67%



















Operating expenses:

















Sales and marketing



4,568




4,428




20,433




18,845


Research, development and engineering



4,612




4,011




17,542




17,314


General and administrative



4,023




3,253




19,634




12,710


Total operating expenses



13,203




11,692




57,609




48,869



















Operating loss



(8,248)




(7,834)




(39,866)




(32,813)


Other income:

















Gain on extinguishment of note payable









5,094





Other income (loss)



3




20




29




277


Other income, net



3




20




5,123




277



















Loss before income taxes



(8,245)




(7,814)




(34,743)




(32,536)


Benefit (provision) for income taxes



1




(2)




(16)




(1)


Net loss


$

(8,244)



$

(7,816)



$

(34,759)



$

(32,537)


Beneficial conversion feature






(11,443)







(11,443)


Net loss attributable to common shares


$

(8,244)



$

(19,259)



$

(34,759)



$

(43,980)



















Earnings (loss) per common share:

















Loss per common share - basic


$

(0.50)



$

(1.27)



$

(2.11)



$

(3.41)


Loss per common share - diluted


$

(0.50)



$

(1.27)



$

(2.11)



$

(3.41)


Weighted average common shares outstanding - basic



16,565




15,222




16,463




12,906


Weighted average common shares outstanding - diluted



16,565




15,222




16,463




12,906


Digimarc Corporation

Consolidated Balance Sheet Information

(in thousands)

(Unaudited)




December 31,



December 31,




2021



2020


Assets









Current assets:









Cash and cash equivalents (1)


$

13,789



$

19,696


Marketable securities (1)



19,537




58,032


Trade accounts receivable, net



6,368




3,907


Loan receivable from related party



2,001





Other current assets



2,316




2,197


Total current assets



44,011




83,832


Marketable securities (1)



8,292





Property and equipment, net



2,875




3,272


Intangibles, net



6,611




6,612


Goodwill



1,114




1,114


Other assets



1,973




2,198


Total assets


$

64,876



$

97,028











Liabilities and Shareholders' Equity









Current liabilities:









Accounts payable and other accrued liabilities


$

4,727



$

2,827


Deferred revenue



2,989




3,002


Note payable, current






3,947


Total current liabilities



7,716




9,776


Lease liability and other long-term liabilities



1,780




2,295


Note payable, long-term






1,118


Total liabilities



9,496




13,189











Commitments and contingencies


















Shareholders' equity:









Preferred stock



50




50


Common stock



17




17


Additional paid-in capital



261,324




255,024


Accumulated deficit



(206,011)




(171,252)


Total shareholders' equity



55,380




83,839











Total liabilities and shareholders' equity


$

64,876



$

97,028




















(1) Aggregate cash, cash equivalents, short- and long-term marketable securities was $41,618 and $77,728 at December 30, 2021
and 2020, respectively.


Digimarc Corporation

Consolidated Cash Flow Information

(in thousands)

(Unaudited)




Twelve Month Information




December 31,



December 31,




2021



2020


Cash flows from operating activities:









Net loss


$

(34,759)



$

(32,537)


Adjustments to reconcile net loss to net cash used in operating activities:









Depreciation, amortization and write-off of property and equipment



1,370




1,531


Amortization and write-off of intangibles



678




771


Amortization of right of use assets under operating leases



493




470


Amortization of net premiums (discounts) on marketable securities



650




204


Gain on extinguishment of note payable



(5,032)





Stock-based compensation



11,936




9,115


Changes in operating assets and liabilities:









Trade accounts receivable



(2,647)




114


Other current assets



(119)




259


Other assets



(83)




(8)


Accounts payable and other accrued liabilities



2,078




512


Deferred revenue



(10)




(199)


Lease liability and other long-term liabilities



(671)




(170)


Net cash used in operating activities



(26,116)




(19,938)











Cash flows from investing activities:









Loan to related party



(2,000)





Purchase of property and equipment



(966)




(1,020)


Capitalized patent costs



(606)




(612)


Maturities of marketable securities



82,076




42,951


Purchases of marketable securities



(52,523)




(75,583)


Net cash provided by (used in) investing activities



25,981




(34,264)











Cash flows from financing activities:









Issuance of common stock, net of issuance costs






38,603


Issuance of preferred stock, net of issuance costs






16,888


Exercise of stock options






5,922


Proceeds from note payable






5,032


Purchase of common stock



(5,772)




(3,760)


Net cash provided by (used in) financing activities



(5,772)




62,685











Net increase (decrease) in cash and cash equivalents (2)


$

(5,907)



$

8,483




















Cash, cash equivalents and marketable securities at beginning of period



77,728




36,817


Cash, cash equivalents and marketable securities at end of period



41,618




77,728


(2) Net increase (decrease) in cash, cash equivalents and marketable securities


$

(36,110)



$

40,911


SOURCE Digimarc Corporation

Stock Information

Company Name: Digimarc Corporation
Stock Symbol: DMRC
Market: NASDAQ
Website: digimarc.com

Menu

DMRC DMRC Quote DMRC Short DMRC News DMRC Articles DMRC Message Board
Get DMRC Alerts

News, Short Squeeze, Breakout and More Instantly...