Quarterly Earnings Snapshot
First Quarter 2024
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Safe Harbor Statement
This presentation includes "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, which reflect management's current view regarding future events and performance.
Although we believe these statements are based on reasonable expectations and beliefs, they are subject to risks and uncertainties that are difficult to predict and, often, beyond our control. These risks include, but are not limited to, the risk factors set forth in Part I, Item 1A of our latest Annual Report on Form 10-K and the risks detailed in our other filings with the U.S. Securities and Exchange Commission.
We believe that these risk factors could affect our future performance and cause our actual results to differ materially from those expressed or implied by forward-looking statements made by us or on our behalf.
All forward-looking statements made by us or by persons acting on our behalf apply only as of the date of this presentation. We expressly disclaim any obligation to update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this presentation or a change in our views or expectations, or otherwise.
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Business Overview |
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About Digimarc
Digimarc is the pioneer and global leader in digital watermarking technologies.
For nearly 30 years, Digimarc has been deployed in solutions built upon two things that we do better than anyone else: the identification and the authentication of physical and digital items.
F E A T U R E S
Imperceptible | Ubiquitous | Redundant | Secure | Adaptable |
Identification + Authentication
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Trending Use Cases | Identification and Authentication
Digimarc technology has successfully been used for:
Brand Protection | Anti Counterfeit
Protect consumers from counterfeits, fraud, or misinformation
Consumer Engagement
Enable advanced consumer engagement & redirection
Industrial Automation
Automate error-prone manufacturing, fulfillment, & distribution
Retail Experience
Improve in-store or supply chain efficiency including checkout
Sustainability
Increase the quality and quantity of recycled materials
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Digimarc Illuminate Platform
Scalable SaaS products powered by extensible and enterprise-scale product digitization platform
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Commercial Go-to-Market Motions
Traditional SaaS
Products: Digimarc Engage, Digimarc Validate, Digimarc Automate, new products
GTM: Traditional SaaS GTM; large cross sell and
upsell opportunities (accretive value for every product added)
Initial Deal Size: $
($50K to $1M+ ARR)
Initial Deal Term: 1-3years
Traditional PaaS
Product: Digimarc Illuminate Platform
GTM: Traditional PaaS GTM; large upsell opportunities (capacity and functionality)
Initial Deal Size: $$
($250K to $5M+ ARR)
Initial Deal Term: 3-5years
Ecosystem Driven
Opportunities
Products: Digimarc Recycle, Digimarc Validate (Media), Digimarc Retail Experience, new products
GTM: Industry-wide or country-wide deployments; sometimes driven by a regulatory component; timing can be unpredictable/uncontrollable, but uber-rapid and scalable adoption once market is opened
Market Size: $$$$
(Varied)
Initial Deal Term: N/A (de-facto market standard)
Power of Partners: Revenue Ramp Acceleration + Massive Operating Leverage
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Three Pillars of Shareholder Value
Government Business: | Commercial Business: | Commercial Business: |
Central Banks | Traditional SaaS & PaaS | Ecosystem Driven Opportunities |
• 4.8% CAGR since the ID |
Systems spin-out in 2008 |
• ~60% Gross profit margin with |
minimal operating expenses |
• Inflation protected |
• 25-year relationship, current |
• Extremely high growth (see | • Extremely high growth potential |
current ARR and commercial | (not yet reflected in current ARR |
revenue growth rates) | and commercial revenue) |
- 90%+ incremental gross profit margin
- Massive operating leverage/high operating margin potential
contract runs through Dec |
31 2029 |
• No counter-party risk (world's |
central banks) |
• Keep intellectual property for |
application in the commercial |
business; profitable R&D |
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- Digimarc Engage: Consumer engagement for physical products and digital assets; see morehere
- Digimarc Validate: Anti- counterfeit for physical products; see morehere
- Digimarc Automate: Automation at manufacturing, fulfillment and distribution centers; official product launch coming soon
- Digimarc Recycle: Active on multiple continents; see more hereand here
TAM: ~$1/capita/year
- Digimarc Retail Experience: Platform and Product opportunity; see morehere
TAM: > $1 Billion
- Digimarc Validate (Media): Digital watermarks included in multiple GenAI regulation bills; see morehereandhere
TAM: TBD - provide tools for free, product upsell (freemium model); see more here
Growing Commercial Product Suite
The product pipeline has expanded. New product categories are helping grow ARR.
- Note: Pipeline graphic is for illustrative purposes only and is not proportionate to any company-reported metric. The graphic serves solely to demonstrate pipeline growth over time.
ARR Growth Characteristics
Digimarc's pipeline is expanding but incremental ARR can be lumpy
- Deals can be significant with the ability to generate 8-figure ARR over multiple years
- $32M+ contract in May 2023 extended Digimarc Illuminate functionality (Security Solutions and Deposit Return Systems)
- Several large deals in the sales pipeline, some of which are for new products/functionality
85% YoY
Growth
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Disclaimer
Digimarc Corporation published this content on 02 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 May 2024 20:35:15 UTC.