Company: DMRC
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001437749-25-014773
Chunk: 24

Company: Digimarc CORP
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 8
Chunk 24
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 $
     4,570

     $
     5,015

     $
     (445
     )

     (9
     )%

      Service (1) 

     2,647

     2,337

     310

     13
     %

      Amortization expense on acquired intangible assets 

     (1,132
     )

     (1,140
     )

     8

     1
     %

      Total 
      
     $
     6,085

     $
     6,212

     $
     (127
     )

     (2
     )%

      Gross Profit Margin: 

      Subscription (1) 

     86
     %

     87
     %

      Service (1) 

     65
     %

     56
     %

      Total 

     65
     %

     63
     %

      (1) 
      Gross Profit and Gross Profit Margin for Subscription and Service excludes Amortization expense on acquired intangible assets. 

The $0.1 million decrease in total gross profit for the three month period ended March 31, 2025, compared to the corresponding three month period ended March 31, 2024, primarily reflects $0.6 million of lower revenue, partially offset by $0.4 million of lower cost of service revenue.

The decrease in subscription gross profit margin, excluding amortization expense on acquired intangible assets, for the three month period ended March 31, 2025, compared to the corresponding three month period ended March 31, 2024, primarily reflects lower subscription revenue. 

The increase in service gross profit margin, excluding amortization expense on acquired intangible assets, for the three month period ended March 31, 2025, compared to the corresponding three month period ended March 31, 2024, primarily reflects a more favorable mix of service revenue in 2025 than 2024.

       24

Operating expenses

Sales and marketing

      Three Months Ended March 31, 

      Dollar 

      Percent 

      2025 

      2024 

      Increase/(Decrease) 

      Increase/(Decrease) 

      Sales and marketing 
      
     $
     5,078

     $
     5,536

     $
     (458
     )

     (8
     )%

      Sales and marketing (