Cost Reduction and Reorganization
The company announced a corporate reorganization that will reduce its cost base by approximately a quarter, translating to annualized cash savings of $16.5 million, plus an additional $5.5 million in other savings.
Focus on Authentication Use Cases
Digimarc is shifting its focus to authentication use cases, particularly in retail loss prevention and physical anti-counterfeit solutions, which are expected to drive significant ARR growth in 2025.
Gift Card Fraud Prevention Progress
Significant progress in securing gift cards with partnerships involving the two largest industry players, large retailers, and brands, with an immediate TAM of $900 million to $1.5 billion per year.
Positive Free Cash Flow Outlook
The company expects to achieve positive non-GAAP net income by no later than Q4 2025, with significant top-line growth anticipated in 2026.