Digimarc Corporation (NASDAQ:DMRC) Q1 2022 Results Conference Call May 12, 2022 5:00 PM ET

Company Participants

Bob Chamness - Chief Legal Officer

Riley McCormack - President & CEO

Charles Beck - Executive VP, CFO & Treasurer

Conference Call Participants

Jim Ricchiuti - Needham & Company

Robin Knipp - Janney Montgomery

Operator

Good afternoon and thank you for participating in today's conference call.

Now I will turn the call over to Bob Chamness, Chief Legal Officer. Mr. Chamness, please proceed.

Bob Chamness

Thank you. Welcome to our Q1 conference call. Riley McCormack, our CEO; and Charles Beck, our CFO, are with me on the call.

On the call today, we will discuss Q1 financial results and provide a business update. This will be followed by a question-and-answer forum. We have posted our prepared remarks in the Investor Relations section of our website and will archive this webcast there.

Before we begin, let me remind everyone that today's discussion contains forward-looking statements that have risks and uncertainties. Please refer to our press release for more information on the specific risk factors that could cause actual results to differ materially.

Charles will now comment on our Q1 financial results.

Charles Beck

Thank you, Bob, and hello, everyone. As a reminder, the acquisition of EVRYTHNG closed January 3, 2022. In order to provide transparency, I will reference the impact the acquisition had on both of our revenue and expenses in Q1 2022.

We are also starting to report non-GAAP financial measures in our Form 10-Q and earnings release to improve comparability between periods. These non-GAAP financial measures include non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating expenses, non-GAAP net loss and non-GAAP net loss per common share.

We are introducing these non-GAAP measures given an increase in the number and magnitude of nonrecurring and noncash items that impact comparability between periods as well as level the underlying performance of our business.

These non-GAAP measures exclude noncash expenses like depreciation expense, amortization expense, stock-based compensation expense and asset impairments.

They also exclude nonrecurring items like transaction costs associated with business acquisitions and other nonrecurring items that may arise.

I will reference these non-GAAP results in my prepared remarks as well as specifically highlight the relevant amounts. While we believe these non-GAAP results provide the truest measure of the underlying performance of our business, we want to provide the information necessary for every investor to do their own analysis.