Overview
Anti-counterfeiting solutions provider's Q1 revenue fell yr/yr due to contract expirations
Net loss narrowed in Q1, helped by lower compensation and severance costs
Subscription gross profit margin improved to 90%, while service margin declined
Outlook
Company did not provide specific financial guidance for future quarters or the full year
Result Drivers
CONTRACT EXPIRATIONS - Lower subscription and total revenue primarily due to expiration of two commercial contracts
SERVICE REVENUE DECLINE - Lower service revenue mainly due to completion of HolyGrail 2.0 recycling projects
OPERATING COST REDUCTION - Operating expenses fell due to lower headcount and reduced severance costs
Company press release: ID:nBw2tSNFha
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
$7.58 mln
$7.03 mln (2 Analysts)
Q1 Net Income
-$6.97 mln
Q1 Adjusted Gross Margin
83.00%
Q1 Gross Profit
$4.54 mln
Q1 Operating Income
-$7.14 mln
Q1 Pretax Profit
-$6.97 mln
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Digimarc Corp is $8.00, about 10.6% below its May 11 closing price of $8.95
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)