Company: DMRC
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001437749-25-034816
Chunk: 39

Company: Digimarc CORP
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 39
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34
     )%

      Sales and marketing (as % of total revenue) 

     37
     %

     60
     %

     45
     %

     56
     %

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, professional services 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 $2.8 million decrease in sales and marketing expenses for the three months ended September 30, 2025, compared to the corresponding three months ended September 30, 2024, primarily reflects:

      • 
      lower cash compensation costs of $2.5 million largely due to lower headcount; and 

      • 
      lower stock compensation costs of $0.1 million. 

The $5.6 million decrease in sales and marketing expenses for the nine months ended September 30, 2025, compared to the corresponding nine months ended September 30, 2024, primarily reflects:

      • 
      lower cash compensation costs of $5.4 million largely due to lower headcount;  

      • 
      lower stock compensation costs of $0.5 million; 

      • 
      lower other costs of $0.3 million; 

      • 
      lower allocation in for facilities and information technology costs of $0.3 million primarily due to lower allocable costs; and 

      • 
      lower professional services costs of $0.2 million; partially offset by 

      • 
      higher cash severance costs of $0.9 million incurred as a result of the reorganization﻿. 

Research, development and engineering

      Three Months Ended September 30, 

      Dollar 

      Percent 

      Nine Months Ended September 30, 

      Dollar 

      Percent 

      2025 

      2024 

      Increase/(Decrease) 

      Increase/(Decrease) 

      2025 

      2024 

      Increase/(Decrease) 

      Increase/(Decrease) 

      Research, development and engineering 
      
     $