Digimarc Corp Up 3.67% To $28.94 After Earnings Beat

Digimarc Corp (DMRC) beat out earnings estimates for Q3 2023 this afternoon.

Digimarc Corp's earnings came in at an EPS loss of $0.29 per share, 15.00% higher than estimates for an EPS loss of $0.34 per share. The firm's loss per share narrowed by 38% since reporting a loss of $0.47 per share a year ago. Remember, earnings reported were on an adjusted basis, so they may not be comparable to prior reports and/or analyst estimates.

Analyst projections for Digimarc Corp revenue came in at a consensus of $8.8 million. Third-Quarter revenues surpassed estimates for $8.9 million by $184 thousand (2%). The company achieved 14% growth year-over-year compared to the firm's revenue of $7.8 million from the year-ago quarter. The higher earnings growth relative to revenue signals Digimarc Corp has improved its profit margin.

The stock is up 3.67% to $28.94 after the report.

The firm's lower revenue growth to earnings signals that the firm has been able to reduce costs and improve its profit margin overall.

Wall Street Analysts had an average rating of Hold on the stock prior to the report.

Trading in the five days leading up to the report earned Digimarc Corp a Bullish Sentiment Rank from InvestorsObserver.

Prior to the report, InvestorsObserver gave the stock an overall score of 60. Meanwhile, the average Wall Street analyst rated the stock a Hold.

Digimarc Corp provides automatic identification solutions to commercial and government customers and license technology and patented inventions to solution providers. Its Digimarc Platform applies a unique identifier to virtually all media objects including product packaging, commercial print, audio and video that can be automatically identified by an enabled ecosystem of industrial scanners, smartphones and other interfaces. The company generates revenue through commercial and government applications of its technology. It serves three primary markets: Government, Retail, and Media. The company derives its revenue primarily from software development services, subscriptions for products and related services, and licensing of patents.