Company: DMRC
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001437749-25-005471
Chunk: 78

Company: Digimarc CORP
Filing Date: 2025-02-27
Form: 10-K
Item: Item 1
Chunk 78
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5 million on an annualized basis. We have also identified approximately $5.5 million of other annualized cash cost savings. We expect to incur approximately $3.0 million in one-time reorganization costs in the first quarter of 2025.

Revenue

      Year Ended December 31, 

      Dollar 

      Percent 

      2024 

      2023 

      Increase/(Decrease) 

      Increase/(Decrease) 

      Revenue: 

      Subscription 
      
     $
     22,418

     $
     18,973

     $
     3,445

     18
     %

      Service 

     16,000

     15,878

     122

     1
     %

      Total 
      
     $
     38,418

     $
     34,851

     $
     3,567

     10
     %

      Revenue (as % of total revenue): 

      Subscription 

     58
     %

     54
     %

      Service 

     42
     %

     46
     %

      Total 

     100
     %

     100
     %

Subscription. Subscription revenue consists primarily of revenue earned from subscription fees for access to our SaaS platform and products and, to a lesser extent, licensing fees for our software products. The majority of subscription contracts are recurring, paid in advance and recognized over the term of the subscription, which is typically one to three years.

The $3.4 million increase in subscription revenue 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 from new and existing commercial contracts, partially offset by the expiration of a commercial contract in June 2024. 

Service. Service revenue consists primarily of revenue earned from the performance of software development services and, to a lesser extent, professional services. The majority of software development contracts are structured as time and materials agreements. Revenue for services is generally recognized as the services are performed. Billing for services rendered generally occurs within one month after the services are provided. Service contracts can range from days to several years in length. Our contract with the Central Banks, which accounts for the majority of our service revenue, has a contract term through December 31, 2029. The contract is subject to work plans that are reviewed and agreed upon quarterly. The contract provides for