Digimarc Corporation Stock Fair Value – DIGIMARC CORPORATION Reports 12.6% Increase in Q2 Earnings of USD 8.7 Million for FY2023
August 7, 2023
☀️Earnings Overview
On August 2, 2023, Digimarc Corporation ($NASDAQ:DMRC) reported their Q2 FY2023 earnings results, showing total revenue of USD 8.7 million, a 12.6% increase from the same period a year ago. Net income for the quarter was USD -10.6 million, an improvement from -14.6 million in the prior year’s quarter.
Analysis – Digimarc Corporation Stock Fair Value
GoodWhale provides an in-depth analysis of DIGIMARC CORPORATION‘s fundamentals. Our proprietary Valuation Line estimates the fair value of DIGIMARC CORPORATION’s share to be $27.6. Currently, DIGIMARC CORPORATION stock is trading at $29.3, which is 6.2% overvalued than the estimated fair price. This suggests that the current market price of DIGIMARC CORPORATION stock may be slightly elevated given its fundamental performance. Investors should take caution when considering buying the stock at its current price. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Digimarc Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 31.61 | -52.04 | -163.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Digimarc Corporation. More…
| Operations | Investing | Financing |
| -35.23 | 13.02 | 1.97 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Digimarc Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 98.32 | 19.68 | 3.87 |
Key Ratios Snapshot
Some of the financial key ratios for Digimarc Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.9% | – | -167.7% |
| FCF Margin | ROE | ROA |
| -114.0% | -40.1% | -33.7% |
Peers
The company specializes in watermarking and barcode technology. Digimarc was founded in 1995 and has a long history of providing innovative solutions to its customers. The company’s products are used by governments, businesses, and individuals around the world. Digimarc’s competitors include Everbridge, Inc, TaskUs, Inc, and Bambuser AB.
– Everbridge Inc ($NASDAQ:EVBG)
As of 2022, Everbridge Inc has a market cap of 1.31B and a Return on Equity of -19.17%. The company provides critical communication and enterprise safety applications that enable customers to automate and accelerate the response to critical events in order to improve organizational resiliency and business continuity.
– TaskUs Inc ($NASDAQ:TASK)
TaskUs Inc is a provider of business process outsourcing services. The company has a market cap of 2.18B as of 2022 and a Return on Equity of 9.34%. The company offers a range of services including customer support, human resources, accounting, and IT services.
– Bambuser AB ($OTCPK:BSKZF)
Bambuser AB is a Swedish company that provides live video streaming solutions. The company has a market capitalization of 94.17 million as of 2022 and a return on equity of -23.04%. The company’s products and services are used by a variety of customers, including media organizations, broadcasters, and brands.
Summary
Investing in Digimarc Corporation has been volatile since the company reported their Q2 earnings results for FY2023, showing total revenue of USD 8.7 million and a net income of USD -10.6 million. This represents a 12.6% increase in revenue, but net income decreased from the same period in the prior year. In response to the news, the company’s stock price fell on the same day. While the revenue increase is a good sign, investors should remain cautious until further analysis of Digimarc Corporation’s financials can be done.
