Digimarc Corporation reported its financial results for the three and nine months ended September 30, 2024, showing notable changes in revenue and profitability compared to the same periods in 2023. Total revenue for the third quarter increased to $9.443 million, up from $8.994 million, while revenue for the nine-month period rose to $29.760 million from $25.567 million. The growth in revenue was primarily driven by a 9% increase in subscription revenue, which reached $5.252 million for the quarter and $17.394 million for the nine months, reflecting a 30% increase year-over-year.
Despite the revenue growth, Digimarc reported an operating loss of $(11.369) million for the third quarter, slightly higher than the $(11.156) million loss in the same period last year. The net loss for the quarter was $(10.754) million, compared to $(10.723) million in 2023. For the nine months, the net loss decreased to $(30.362) million from $(35.386) million, indicating a 14% improvement.
The company’s gross profit for the third quarter was $5.897 million, a 13% increase from $5.223 million in 2023. The gross profit margin for subscriptions improved due to higher revenue and lower costs. Operating expenses for the third quarter rose to $17.3 million, up from $16.4 million, primarily due to increased sales and marketing expenses, which included cash severance costs.
On the balance sheet, total current assets increased to $44.794 million as of September 30, 2024, from $37.080 million at the end of 2023. Cash and cash equivalents also rose to $25.560 million, up from $21.456 million. The company’s total assets increased to $85.024 million, while total liabilities decreased to $9.382 million, resulting in total shareholders' equity of $70.160 million, up from $61.927 million.
Strategically, Digimarc completed a registered direct offering in February 2024, issuing 929 thousand shares at $35.00 per share, generating gross proceeds of $32.5 million. This capital is intended to support growth initiatives and potential acquisitions. The company also filed a new shelf registration statement, allowing it to sell up to $100 million in securities, with $67.5 million remaining available as of September 30, 2024.
Overall, Digimarc's performance reflects a focus on expanding its subscription revenue while managing operating losses and enhancing its financial position through strategic capital raises.
About Digimarc CORP
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