Digimarc Corporation (NASDAQ:DMRC) Q2 2020 Earnings Conference Call - Final Transcript

Jul 30, 2020 • 05:00 pm ET

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Digimarc Corporation (NASDAQ:DMRC) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good afternoon, and thank you for participating in today's conference call. Now I will turn the call over to Chairman and CEO of Digimarc, Mr. Bruce Davis. Please proceed, sir.

Executive
Bruce Davis

Thank you. Good afternoon. Welcome to our conference call. Charles Beck, our CFO, is with me. On the call today, we'll review Q2 financial results, discuss significant business developments and market conditions and provide an update on progress and execution of strategy. We have posted these prepared remarks in the Investor Relations section of our website and will archive this webcast there later.

Please note that we may make certain forward-looking statements in this call and in the prepared remarks we filed with the SEC and posted on our website under the heading Safe Harbor Statement, regarding revenue recognition matters, results of operations, investments, initiatives, perspectives on business partners, customers, prospects, industry trends and growth strategies.

We also will discuss from time-to-time information provided to us by partners and actual or potential customers. We are providing this information as we understand it was represented to us. We do not verify nor vouch for such information. All such statements and information are subject to many assumptions, risk, uncertainties and changes in circumstances. Any assumptions we share about future performance represent a point-in-time estimate. Actual results may vary materially from those expressed or implied by such statements. We expressly disclaim any obligation to revise or update statements or other information that we provide during this call to reflect events or circumstances that may arise after the date of this conference call.

For more information about risk factors that may cause actual results to differ from expectations, please see the company's filings with the SEC, including the Form 10-Q that we expect to file shortly.

Any links included in our prepared remarks are provided for general information and context only. The content reference is not incorporated by reference and you should not consider it part of this presentation. We do not verify nor vouch for such information.

Charles will now comment on our financial results, then I'll discuss significant business developments, market conditions and execution of strategy. Charles?

Executive
Charles Beck

Thanks, Bruce. Good afternoon, everyone. Revenue for the second quarter was $6.5 million, an increase of $300,000 or 5% from Q2 last year. Service revenue increased 9% due to growth in services provided to government and retail customers.

Subscription revenue was flat year-over-year. Subscription revenue would have increased $250,000, if not for the renegotiated contract with our supplier partner that we discussed on our Q1 earnings call.

Revenue from retail was up 10% to $1.6 million, driven by growth in service revenue. Revenue from government was up 5% to $4.1 million, also driven by growth in service revenue, while revenue from media was essentially flat at $900,000.

Retail bookings in Q2 were $1.1 million, down from $1.8 million in Q2 last year. Bookings in Q2 last year included a large multiyear committed contract, which accounts for most of the variance. Bookings in Q2 this year included