Company: DMRC
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001437749-25-005471
Chunk: 81

Company: Digimarc CORP
Filing Date: 2025-02-27
Form: 10-K
Item: Item 1
Chunk 81
---
 acquisition. 

Gross profit

      Year Ended December 31, 

      Dollar 

      Percent 

      2024 

      2023 

      Increase/(Decrease) 

      Increase/(Decrease) 

      Gross Profit: 

      Subscription (1) 
      
     $
     19,459

     $
     15,998

     $
     3,461

     22
     %

      Service (1) 

     9,372

     8,626

     746

     9
     %

      Amortization expense on acquired intangible assets 

     (4,592
     )

     (4,459
     )

     (133
     )

     (3
     )%

      Total 
      
     $
     24,239

     $
     20,165

     $
     4,074

     20
     %

      Gross Profit Margin: 

      Subscription (1) 

     87
     %

     84
     %

      Service (1) 

     59
     %

     54
     %

      Total 

     63
     %

     58
     %

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

The $4.1 million increase in total gross profit for the twelve months ended December 31, 2024, compared to the corresponding twelve months ended December 31, 2023, was primarily due to $3.4 million of higher subscription revenue and $0.6 million of lower cost of service revenue. 

The increase in subscription gross profit margin, excluding amortization expense on acquired intangible assets, for the twelve months ended December 31, 2024, compared to the corresponding twelve months ended December 31, 2023, was primarily due to higher subscription revenue combined with a more favorable mix of subscription revenue.

The increase in service gross profit margin, excluding amortization expense on acquired intangible assets, for the twelve months ended December 31, 2024, compared to the corresponding twelve months ended December 31, 2023, was primarily due to a more favorable mix of service revenue.

Operating expenses

Sales and marketing

     Year Ended December 31,

     Dollar

     Percent

      2024 

      2023 

      Increase/(Decrease) 

      Increase/(Decrease)