Company: DMRC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001437749-25-026996
Chunk: 37

Company: Digimarc CORP
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 37
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 decrease in subscription gross profit margin, excluding amortization expense on acquired intangible assets, for the six months ended June 30, 2025, compared to the corresponding six months ended June 30, 2024, primarily reflects lower subscription revenue. 

The increase in service gross profit margin, excluding amortization expense on acquired intangible assets, for the three months ended June 30, 2025, compared to the corresponding three months ended June 30, 2024, primarily reflects a more favorable mix of service revenue.

The increase in service gross profit margin, excluding amortization expense on acquired intangible assets, for the six months ended June 30, 2025, compared to the corresponding six months ended June 30, 2024, primarily reflects a more favorable mix of service revenue.

       24

Operating expenses

Sales and marketing

      Three Months Ended June 30, 

      Dollar 

      Percent 

      Six Months Ended June 30, 

      Dollar 

      Percent 

      2025 

      2024 

      Increase/(Decrease) 

      Increase/(Decrease) 

      2025 

      2024 

      Increase/(Decrease) 

      Increase/(Decrease) 

      Sales and marketing 
      
     $
     3,231

     $
     5,616

     $
     (2,385
     )

     (42
     )%
      
     $
     8,309

     $
     11,152

     $
     (2,843
     )

     (25
     )%

      Sales and marketing (as % of total revenue) 

     40
     %

     54
     %

     48
     %

     55
     %

Sales and marketing expenses consist primarily of:

      • 
      compensation, benefits, incentive compensation in the form of cash and stock-based compensation and related costs of our sales, marketing, product, operations and customer support personnel; 

      • 
      travel and market research costs, and costs associated with marketing programs, such as trade shows, public relations and new product launches; 

      • 
      professional services and outside contractor costs for sales and marketing and product initiatives; and 

      • 
      the allocation of facilities and information technology costs. 

The $2.4 million decrease in sales and marketing expenses for the three months ended June 30, 2025, compared to