Digimarc posts earnings beat, revenue exceeds forecasts

Digimarc Corp. reported adjusted earnings per share that exceeded market forecasts by $0.25, while revenue topped analyst estimates in its latest quarterly results.

The company, which specializes in digital watermarking and identification technology, said adjusted earnings per share came in at $0.45, compared with the $0.20 expected by analysts surveyed by Refinitiv. Revenue totaled $28.7 million, above the $27.5 million forecast.

Digimarc attributed the outperformance to stronger demand for its digital watermarking solutions, particularly in the retail and consumer goods sectors. The company also noted continued growth in its licensing agreements, which contributed to the revenue beat.

Chief Executive Officer Riley McCormack highlighted the company’s progress in expanding its customer base and operational efficiency. "We are seeing increasing adoption of our technology across multiple industries, which is driving both top-line growth and profitability improvements," McCormack said in a statement.

For the current quarter, Digimarc provided guidance that fell short of some analyst expectations. The company expects revenue between $27 million and $29 million, with adjusted earnings per share ranging from $0.30 to $0.40. Analysts had projected revenue of $30.1 million and earnings per share of $0.42.

Shares of Digimarc were down 3% in after-hours trading following the release of the results and guidance.