Digimarc (DMRC) 10-Q 27 Jul 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Jul. 21, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Trading Symbol	DMRC
Entity Registrant Name	Digimarc CORP
Entity Central Index Key	1,438,231
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		11,267,308

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 34,242	$ 11,638
Marketable securities	33,513	44,496
Trade accounts receivable, net	3,897	5,078
Other current assets	1,858	1,695
Total current assets	73,510	62,907
Marketable securities	0	4,392
Property and equipment, net	3,846	3,570
Intangibles, net	6,416	6,422
Goodwill	1,114	1,114
Other assets	281	331
Total assets	85,167	78,736
Current liabilities:
Accounts payable and other accrued liabilities	1,731	1,523
Deferred revenue	2,121	2,923
Total current liabilities	3,852	4,446
Deferred rent and other long-term liabilities	1,029	956
Total liabilities	4,881	5,402
Commitments and contingencies (Note 13)
Shareholders’ equity:
Preferred stock (par value $0.001 per share, 2,500 authorized, 10 shares issued and outstanding at June 30, 2017 and December 31, 2016)	50	50
Common stock (par value $0.001 per share, 50,000 authorized, 11,263 and 10,523 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively)	11	11
Additional paid-in capital	141,123	120,985
Accumulated deficit	(60,898)	(47,712)
Total shareholders’ equity	80,286	73,334
Total liabilities and shareholders’ equity	$ 85,167	$ 78,736

Consolidated Balance Sheets (U3

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares shares in Thousands	Jun. 30, 2017	Dec. 31, 2016
Statement Of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	2,500	2,500
Preferred stock, shares issued	10	10
Preferred stock, shares outstanding	10	10
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	50,000	50,000
Common stock, shares issued	11,263	10,523
Common stock, shares outstanding	11,263	10,523

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Revenue:
Service	$ 3,253	$ 3,148	$ 6,949	$ 6,398
Subscription	1,420	1,494	2,865	2,957
License	914	815	1,864	1,682
Total revenue	5,587	5,457	11,678	11,037
Cost of revenue:
Service	1,464	1,401	3,099	2,833
Subscription	534	594	1,090	1,256
License	122	99	240	195
Total cost of revenue	2,120	2,094	4,429	4,284
Gross profit	3,467	3,363	7,249	6,753
Operating expenses:
Sales and marketing	3,997	2,856	7,989	5,811
Research, development and engineering	3,936	3,379	7,395	6,684
General and administrative	2,239	1,976	4,624	4,146
Intellectual property	345	462	737	896
Total operating expenses	10,517	8,673	20,745	17,537
Operating loss	(7,050)	(5,310)	(13,496)	(10,784)
Other income, net	116	42	234	88
Loss before income taxes	(6,934)	(5,268)	(13,262)	(10,696)
Benefit (provision) for income taxes	(9)	(15)	101	(22)
Net loss	$ (6,943)	$ (5,283)	$ (13,161)	$ (10,718)
Earnings (loss) per common share:
Loss per common share—basic	$ (0.68)	$ (0.62)	$ (1.29)	$ (1.25)
Loss per common share—diluted	$ (0.68)	$ (0.62)	$ (1.29)	$ (1.25)
Weighted average common shares outstanding—basic	10,266	8,587	10,214	8,560
Weighted average common shares outstanding—diluted	10,266	8,587	10,214	8,560

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Preferred Stock [Member]	Common Stock [Member]	Additional Paid In Capital [Member]	Retained Earnings (Accumulated Deficit) [Member]
Balance at Dec. 31, 2015	$ 51,458	$ 50	$ 9	$ 77,439	$ (26,040)
Balance, shares at Dec. 31, 2015		10	8,919
Exercise of stock options	309	$ 0	$ 0	309	0
Exercise of stock options, shares		0	32
Issuance of restricted common stock	0	$ 0	$ 0	0	0
Issuance of restricted common stock, shares		0	177
Forfeiture of restricted common stock	0	$ 0	$ 0	0	0
Forfeiture of restricted common stock, shares		0	(3)
Purchase and retirement of common stock	(1,104)	$ 0	$ 0	(1,104)	0
Purchase and retirement of common stock, shares		0	(40)
Stock-based compensation	2,782	$ 0	$ 0	2,782	0
Net loss	(10,718)	0	0	0	(10,718)
Balance at Jun. 30, 2016	42,727	$ 50	$ 9	79,426	(36,758)
Balance, shares at Jun. 30, 2016		10	9,085
Balance at Dec. 31, 2016	73,334	$ 50	$ 11	120,985	(47,712)
Balance, shares at Dec. 31, 2016		10	10,523
Issuance of common stock, net of issuance costs	17,702	$ 0	$ 0	17,702	0
Issuance of common stock, net of issuance costs, shares		0	500
Exercise of stock options	$ 568	$ 0	$ 0	568	0
Exercise of stock options, shares	59	0	59
Issuance of restricted common stock	$ 0	$ 0	$ 0	0	0
Issuance of restricted common stock, shares		0	236
Forfeiture of restricted common stock	0	$ 0	$ 0	0	0
Forfeiture of restricted common stock, shares		0	(7)
Purchase and retirement of common stock	(1,348)	$ 0	$ 0	(1,348)	0
Purchase and retirement of common stock, shares		0	(48)
Stock-based compensation	3,191	$ 0	$ 0	3,216	(25)
Net loss	(13,161)	0	0	0	(13,161)
Balance at Jun. 30, 2017	$ 80,286	$ 50	$ 11	$ 141,123	$ (60,898)
Balance, shares at Jun. 30, 2017		10	11,263

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities:
Net loss	$ (13,161)	$ (10,718)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation, amortization and write-off of property and equipment	664	688
Amortization and write-off of intangibles	486	639
Stock-based compensation	3,093	2,707
Changes in operating assets and liabilities:
Trade accounts receivable	1,181	2,139
Other current assets	(163)	52
Other assets	50	36
Accounts payable and other accrued liabilities	336	109
Deferred revenue	(835)	(917)
Net cash used in operating activities	(8,349)	(5,265)
Cash flows from investing activities:
Purchase of property and equipment	(938)	(755)
Capitalized patent costs	(406)	(436)
Maturity of marketable securities	28,636	22,467
Purchase of marketable securities	(13,261)	(8,819)
Net cash provided by investing activities	14,031	12,457
Cash flows from financing activities:
Issuance of common stock, net of issuance costs	17,702	0
Exercise of stock options	568	309
Purchase of common stock	(1,348)	(1,104)
Net cash provided by (used) in financing activities	16,922	(795)
Net increase in cash and cash equivalents	22,604	6,397
Cash and cash equivalents at beginning of period	11,638	3,160
Cash and cash equivalents at end of period	34,242	9,557
Supplemental disclosure of cash flow information:
Cash paid for income taxes, net	25	14
Supplemental schedule of non-cash investing activities:
Property and equipment and patent costs in accounts payable	(22)	61
Stock-based compensation capitalized to software and patent costs	$ 98	$ 75

Description of Business and Sig

Description of Business and Significant Accounting Policies	6 Months Ended
	Jun. 30, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Description of Business and Significant Accounting Policies	1. Description of Business and Significant Accounting Policies Description of Business Digimarc Corporation (“Digimarc” or the “Company”), an Oregon corporation, enables governments and enterprises around the world to give digital identities to media and objects that computers can sense and recognize, and to which they can react. The Company has developed Digimarc Discover ® ™ Interim Consolidated Financial Statements The Company has adhered to the accounting policies set forth in its Annual Report on Form 10-K for the year ended December 31, 2016 in preparing the accompanying interim consolidated financial statements. The accompanying interim consolidated financial statements have been prepared from the Company’s records without audit and, in management’s opinion, include all adjustments (consisting of only normal recurring adjustments) necessary to fairly reflect the financial condition and the results of operations for the periods presented. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, which was filed with the SEC on February 23, 2017. The results of operations for the interim periods presented in these consolidated financial statements are not necessarily indicative of the results for the full year. Reclassifications Certain prior period amounts in the accompanying consolidated financial statements and notes thereto have been reclassified to conform to current period presentation. These reclassifications had no material effect on the results of operations or financial position for any period presented. Contingencies The Company evaluates all pending or threatened contingencies or commitments, if any, that are reasonably likely to have a material adverse effect on the Company’s operations or financial position. The Company assesses the probability of an adverse outcome and determines if it is remote, reasonably possible or probable as defined in accordance with the provisions of ASC 450 “ Contingencies. Goodwill The Company tests goodwill for impairment annually in June and whenever events or changes in circumstances indicate that the carrying value may exceed the fair value. The Company operates as a single reporting unit. The Company estimated the fair value of its single reporting unit using a market approach, which takes into account the Company’s market capitalization plus an estimated control premium. In connection with the Company’s annual impairment test of goodwill as of June 30, 2017 and 2016, it was concluded that there was no impairment to goodwill as the estimated fair value of the Company’s reporting unit substantially exceeded the carrying value. Accounting Pronouncements Adopted In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, “ Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting (Topic 718). In January 2017, the FASB issued ASU No. 2017-04, “ Intangibles – Goodwill and Other (Topic 350). Accounting Pronouncements Issued But Not Yet Adopted In May 2014, the FASB issued ASU No. 2014-09, “ Revenue from Contracts with Customers (Topic 606) In February 2016, the FASB issued ASU No. 2016-02, “ Leases (Topic 842) In August 2016, the FASB issued ASU No. 2016-15, “ Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments (Topic 230).

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	2. Fair Value of Financial Instruments The estimated fair values of the Company’s financial instruments, which include cash equivalents, accounts receivable, accounts payable and other accrued liabilities approximate their carrying values due to the short-term nature of these instruments. The Company records marketable securities at amortized cost, which approximates fair value. The Company’s fair value hierarchy for its cash equivalents and marketable securities as of June 30, 2017 and December 31, 2016, respectively, was as follows: June 30, 2017 Level 1 Level 2 Level 3 Total Money market securities $ 561 $ — $ — $ 561 Commercial paper — 30,776 — 30,776 Federal agency notes — 20,090 — 20,090 Corporate notes — 7,826 — 7,826 Pre-refunded municipal bonds (1) — 2,509 — 2,509 Total $ 561 $ 61,201 $ — $ 61,762 December 31, 2016 Level 1 Level 2 Level 3 Total Money market securities $ 1,218 $ — $ — $ 1,218 Federal agency notes — 16,810 — 16,810 Commercial paper — 16,757 — 16,757 Corporate notes — 15,753 — 15,753 Pre-refunded municipal bonds (1) — 6,716 — 6,716 U.S. treasuries — 2,515 — 2,515 Total $ 1,218 $ 58,551 $ — $ 59,769 (1) Pre-refunded municipal bonds are collateralized by U.S. treasuries. The fair value maturities of the Company’s cash equivalents and marketable securities as of June 30, 2017 are as follows: Maturities by Period Total Less 1 year 1-5 years 5 - 10 years More than 10 years Cash equivalents and marketable securities $ 61,762 $ 61,762 $ — $ — $ — The Company considers all highly liquid marketable securities with original maturities of 90 days or less at the date of acquisition to be cash equivalents. Cash equivalents include money market funds and commercial paper totaling $28,249 and $10,881 at June 30, 2017 and December 31, 2016, respectively. Cash equivalents are carried at cost or amortized cost, which approximates fair value.

Revenue Recognition

Revenue Recognition	6 Months Ended
	Jun. 30, 2017
Revenue Recognition [Abstract]
Revenue Recognition	3. Revenue Recognition The Company derives its revenue primarily from professional services, subscriptions and licensing of its intellectual property: • Service revenue consists primarily of software development and consulting services. The majority of service revenue arrangements are structured as time and materials consulting agreements. • Subscription revenue includes Digimarc Discover, Digimarc Barcode and Guardian products and services, is generally recurring, paid in advance and recognized over the term of the subscription. • License revenue originates primarily from licensing the Company’s intellectual property, where the Company receives license fees and/or royalties as its income stream. Revenue is recognized in accordance with ASC 605 “ Revenue Recognition Software (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred, (iii) the fee is fixed or determinable, and (iv) collection is reasonably assured or probable. Some customer arrangements encompass multiple deliverables, such as professional services, software licenses, and maintenance and support fees. For arrangements that include multiple deliverables, the Company identifies separate units of accounting at inception based on the consensus reached under ASC 605-25 “ Multiple-Element Arrangements, The relative selling price method allocates the consideration based on the Company’s specific assumptions rather than assumptions of a marketplace participant, and allocates any discount in the arrangement proportionally to each deliverable on the basis of each deliverable’s selling price. Applicable revenue recognition criteria are considered separately for each separate unit of accounting as follows: • Service revenue is generally determined based on time and materials. Revenue for development and consulting services is recognized as the services are performed. Billing for services rendered generally occurs within one month after the services are provided. • Subscription revenue, which includes revenue from the sale of Digimarc Discover, Digimarc Barcode and Guardian products and services, is generally paid in advance and recognized over the term of the subscription, which is generally one to three years. • License revenue is recognized when amounts owed to the Company have been earned, are fixed or determinable (within the Company’s normal 30 to 60 day payment terms), and collection is reasonably assured. If the payment terms extend beyond the normal 30 to 60 days, the fee may not be considered to be fixed or determinable, and the revenue would then be recognized when installments are due. • The Company records revenue from certain license agreements upon cash receipt as a result of collectability not being reasonably assured. • The Company’s standard payment terms for license arrangements are 30 to 60 days. Extended payment terms on patent license arrangements are not considered to be fixed or determinable if payments are due beyond the Company’s standard payment terms, primarily because of the risk of substantial modification present in the Company’s patent licensing business. As such, revenue on license arrangements with extended payment terms is recognized as fees become fixed or determinable. Deferred revenue consists of billings in advance for professional services, subscriptions and licenses for which revenue has not been earned.

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
Segment Information	4. Segment Information Geographic Information The Company derives its revenue from a single reporting segment: media management solutions. Revenue is generated in this segment through development services, subscriptions and licensing of intellectual property. The Company markets its products in the U.S. and in non-U.S. countries through its sales and licensing personnel. Revenue by geographic area, based upon the “bill-to” location, was as follows: Three Three Six Six Months Months Months Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2017 2016 2017 2016 Domestic $ 1,253 $ 1,151 $ 2,754 $ 2,284 International (1) 4,334 4,306 8,924 $ 8,753 Total $ 5,587 $ 5,457 $ 11,678 $ 11,037 (1) Revenue from the Central Banks, consisting of a consortium of central banks around the world, is classified as international revenue. Reporting revenue by country for this customer is not practicable. Major Customers Customers who accounted for 10% or more of the Company’s revenue are as follows: Three Three Six Six Months Months Months Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2017 2016 2017 2016 Central Banks 63 % 63 % 63 % 63 % Long-lived assets by geographical area The Company’s long-lived assets are all domestic, domiciled in the U.S.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-Based Compensation	5. Stock-Based Compensation Stock-based compensation includes expense charges for all stock-based awards to employees and directors. These awards include option grants and restricted stock awards. Stock-based compensation expense related to internal labor is capitalized to software and patents based on direct labor hours charged to capitalized software and patent costs. Determining Fair Value Stock Options The Company estimates the fair value of stock options granted using the Black-Scholes option valuation model. The fair value of stock options is determined on the date of the grant (measurement date), and is amortized on a straight-line method over the requisite service periods, which are generally the vesting periods. There were no stock options granted during the three and six months ended June 30, 2017 and 2016. Restricted Stock The fair value of restricted stock awarded is based on the fair market value of the Company’s common stock on the date of the grant (measurement date), and is recognized over the vesting period of the award using the straight-line method. Stock-based Compensation Three Three Six Six Months Months Months Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2017 2016 2017 2016 Stock-based compensation: Cost of revenue $ 175 $ 184 $ 351 $ 357 Sales and marketing 342 238 710 450 Research, development and engineering 354 379 662 704 General and administrative 637 544 1,210 1,045 Intellectual property 82 79 160 151 Stock-based compensation expense 1,590 1,424 3,093 2,707 Capitalized to software and patent costs 53 43 98 75 Total stock-based compensation $ 1,643 $ 1,467 $ 3,191 $ 2,782 The following table sets forth total unrecognized compensation cost related to non-vested stock-based awards granted under all equity compensation plans, including stock options and restricted stock: As of As of June 30, December 31, 2017 2016 Total unrecognized compensation costs $ 12,577 $ 9,728 Total unrecognized compensation costs will be adjusted for any future forfeitures. The Company expects to recognize the unrecognized compensation costs as of June 30, 2017 for stock options and restricted stock over weighted average periods through June 2021 as follows: Stock Restricted Options Stock Weighted average period 0.0 years 1.52 years As of June 30, 2017, under all of the Company’s stock-based compensation plans, equity awards to purchase an additional 1,144 shares were authorized for future grants under the plans. The Company issues new shares upon option exercises. Stock Option Activity The following table reconciles the outstanding balance of stock options: Weighted Weighted Average Average Aggregate Exercise Grant Date Intrinsic Three months ended June 30, 2017: Options Price Fair Value Value Outstanding at March 31, 2017 402 $ 19.49 $ 9.13 Granted — — — Exercised (40 ) 9.64 6.30 Forfeited or expired — — — Outstanding at June 30, 2017 362 $ 20.60 $ 9.45 $ 7,071 Weighted Weighted Average Average Aggregate Exercise Grant Date Intrinsic Six months ended June 30, 2017: Options Price Fair Value Value Outstanding at December 31, 2016 421 $ 19.06 $ 9.01 Granted — — — Exercised (59 ) 9.64 6.30 Forfeited or expired — — — Outstanding at June 30, 2017 362 $ 20.60 $ 9.45 $ 7,071 Exercisable at June 30, 2017 362 $ 20.60 $ 7,071 The aggregate intrinsic value is based on the closing price of $40.15 per share of Digimarc common stock on June 30, 2017, which would have been received by the optionees had all of the options with exercise prices less than $40.15 per share been exercised on that date. Restricted Stock Activity The following table reconciles the unvested balance of restricted stock: Weighted Average Number of Grant Date Three months ended June 30, 2017: Shares Fair Value Unvested balance, March 31, 2017 511 $ 25.91 Granted 58 $ 30.39 Vested (72 ) $ 17.40 Forfeited (5 ) $ 26.35 Unvested balance, June 30, 2017 492 $ 27.67 Weighted Average Number Grant Date Six months ended June 30, 2017: Shares Fair Value Unvested balance, December 31, 2016 385 $ 26.28 Granted 236 $ 26.43 Vested (122 ) $ 21.08 Forfeited (7 ) $ 24.32 Unvested balance, June 30, 2017 492 $ 27.67 The following table indicates the fair value of all restricted stock awards that vested during the three and six months ended June 30, 2017 and 2016: Three Three Six Six Months Months Months Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2017 2016 2017 2016 Fair value of restricted stock awards vested $ 2,214 $ 1,839 $ 3,491 $ 3,117

Shareholders_ Equity

Shareholders’ Equity	6 Months Ended
	Jun. 30, 2017
Equity [Abstract]
Shareholders' Equity	6. Shareholders’ Equity During the three months ended June 30, 2017, the Company sold 500 shares of its common stock in a registered direct offering to a certain investor at a price of $35.55 per share. The offering was made without an underwriter or placement agent. The Company received $17,775 of cash proceeds from the offering, and paid $72 in stock issuance costs.

Earnings Per Common Share

Earnings Per Common Share	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Earnings Per Common Share	7. Earnings Per Common Share The Company calculates basic and diluted earnings per common share in accordance with ASC 260 “ Earnings Per Share, Basic earnings per common share excludes dilution and is calculated by dividing earnings to common shares by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing earnings to common shares by the weighted-average number of common shares, as adjusted for the potentially dilutive effect of stock options. The following table reconciles earnings (loss) per common share for the three and six months ended June 30, 2017 and 2016: Three Three Six Six Months Months Months Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2017 2016 2017 2016 Basic Earnings (Loss) per Common Share: Numerator: Net loss $ (6,943 ) $ (5,283 ) $ (13,161 ) $ (10,718 ) Distributed earnings to common shares — — — — Distributed earnings to participating securities — — — — Total distributed earnings — — — — Undistributed loss allocable to common shares (6,943 ) (5,283 ) (13,161 ) (10,718 ) Undistributed earnings allocable to participating securities — — — — Total undistributed loss (6,943 ) (5,283 ) (13,161 ) (10,718 ) Loss to common shares—basic $ (6,943 ) $ (5,283 ) $ (13,161 ) $ (10,718 ) Denominator Weighted average common shares outstanding— basic 10,266 8,587 10,214 8,560 Basic earnings (loss) per common share (0.68 ) $ (0.62 ) (1.29 ) $ (1.25 ) Three Three Six Six Months Months Months Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2017 2016 2017 2016 Diluted Earnings (Loss) per Common Share: Numerator: Loss to common shares—basic $ (6,943 ) $ (5,283 ) $ (13,161 ) $ (10,718 ) Undistributed earnings allocated to participating securities — — — — Undistributed earnings reallocated to participating securities — — — — Loss to common shares—diluted $ (6,943 ) $ (5,283 ) $ (13,161 ) $ (10,718 ) Denominator Weighted average common shares outstanding— basic 10,266 8,587 10,214 8,560 Dilutive effect of stock options — — — — Weighted average common shares outstanding— dilutive 10,266 8,587 10,214 8,560 Diluted earnings (loss) per common share (0.68 ) $ (0.62 ) (1.29 ) $ (1.25 ) There were 0 and 75 common stock equivalents related to stock options that were anti-dilutive and excluded from diluted earnings per common share calculations for the three and six months ended June 30, 2017, respectively, because their exercise prices were higher than the average market price of the underlying common stock for the periods. There were 75 and 0 common stock equivalents related to stock options that were anti-dilutive and excluded from diluted earnings per common share calculations for the three and six months ended June 30, 2016, respectively, because their exercise prices were higher than the average market price of the underlying common stock for the periods. There were 131 and 125 common stock equivalents related to stock options that were anti-dilutive and excluded from diluted earnings per common share for the three and six months ended June 30, 2017, respectively, as the Company incurred a net loss for the periods. There were 169 and 188 common stock equivalents related to stock options that were anti-dilutive and excluded from diluted earnings per common share for the three and six months ended June 30, 2016, respectively, as the Company incurred a net loss for the periods.

Trade Accounts Receivable

Trade Accounts Receivable	6 Months Ended
	Jun. 30, 2017
Receivables [Abstract]
Trade Accounts Receivable	8. Trade Accounts Receivable Trade Accounts Receivable Trade accounts receivable are recorded at the invoiced amount. June 30, December 31, 2017 2016 Trade accounts receivable $ 3,912 $ 5,093 Allowance for doubtful accounts (15 ) (15 ) Trade accounts receivable, net $ 3,897 $ 5,078 Unpaid deferred revenue included in trade accounts receivable $ 747 $ 2,245 Allowance for doubtful accounts The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing trade accounts receivable. The Company determines the allowance based on historical write-off experience and current information. The Company reviews its allowance for doubtful accounts each reporting period. Account balances are charged against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Unpaid deferred revenue The unpaid deferred revenue that is included in trade accounts receivable is billed in accordance with the provisions of the contracts with the Company’s customers. Unpaid deferred revenue from the Company’s cash-basis customers is not included in trade accounts receivable nor deferred revenue. Major customers Customers who accounted for 10% or more of trade accounts receivable, net are as follows: June 30, December 31, 2017 2016 Central Banks 55 % 57 %

Property and Equipment

Property and Equipment	6 Months Ended
	Jun. 30, 2017
Property Plant And Equipment [Abstract]
Property and Equipment	9. Property and Equipment Property and equipment are stated at cost. Repairs and maintenance are charged to expense when incurred. Depreciation on property and equipment is calculated using the straight-line method over the estimated useful lives of the assets, generally two to ten years. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful life or the lease term. June 30, December 31, 2017 2016 Office furniture and fixtures $ 1,194 $ 1,168 Software 2,661 2,146 Equipment 4,366 4,071 Leasehold improvements 1,620 1,617 Gross property and equipment 9,841 9,002 Less accumulated depreciation and amortization (5,995 ) (5,432 ) Property and equipment, net $ 3,846 $ 3,570

Intangibles

Intangibles	6 Months Ended
	Jun. 30, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
Intangibles	10. Intangibles Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Amortization of capitalized patent costs associated with the application and award of patents in the U.S. and various other countries are capitalized and amortized on a straight-line basis over the term of the patents as determined at the award date, which varies depending on the pendency period of the application, generally approximating seventeen years. Amortization of intangible assets acquired is calculated using the straight-line method over the estimated useful lives of the assets. Estimated Life June 30, December 31, (years) 2017 2016 Capitalized patent costs 17-20 $ 7,650 $ 7,281 Intangible assets acquired: Purchased patents and intellectual property 3-10 250 250 Existing technology 5 1,560 1,560 Customer relationships 7 290 290 Backlog 2 760 760 Tradenames 3 290 290 Non-solicitation agreements 1 120 120 Gross intangible assets 10,920 10,551 Accumulated amortization (4,504 ) (4,129 ) Intangibles, net $ 6,416 $ 6,422

Joint Ventures and Related Part

Joint Ventures and Related Party Transactions	6 Months Ended
	Jun. 30, 2017
Related Party Transactions [Abstract]
Joint Ventures and Related Party Transactions	11. Joint Ventures and Related Party Transactions In March 2012, Digimarc and Nielsen reduced the investments in their two joint ventures, TVaura LLC (in which Digimarc holds a 51% ownership interest) and TVaura Mobile LLC (in which Digimarc holds a 49% ownership interest), to minimal levels while assessing alternative approaches to achieving each of their goals in the emerging market opportunity of synchronized second screen television. In October 2015, Digimarc and Nielsen reactivated the TVaura Mobile LLC joint venture to develop solutions for programmers and advertisers to engage with consumers on second screens and otherwise provide enhanced flexibility to brand strategies targeting modern consumers. The enhanced cooperation represents another building block in developing the market for Digimarc Discover and Digimarc Barcode. Neither Digimarc nor Nielsen has contributed any capital to the joint venture upon reactivation. As of June 30, 2017, both Digimarc and Nielsen continued to assess the market opportunities of the TVaura LLC joint venture. Summarized financial information for the joint ventures has not been provided because the disclosures are immaterial to the Company’s filing. TVaura LLC and TVaura Mobile LLC had no revenue or expenses for the six months ended June 30, 2017 and 2016. The Company’s investment in each joint venture was $0 as of June 30, 2017 and December 31, 2016.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Income Taxes	12. Income Taxes The benefit (provision) for income taxes for the six months ended June 30, 2017 and 2016 reflects current taxes, deferred taxes, and withholding taxes. The effective tax rate for the six months ended June 30, 2017 and 2016 was 1% and 0%, respectively. The valuation allowance against net deferred tax assets as of June 30, 2017 was $36,937, an increase of $12,049 from $24,888 as of December 31, 2016. The Company adopted the provisions of ASU No. 2016-09 effective January 1, 2017. Deferred tax assets of $6,219 were recorded for previously unrecognized excess tax benefits as of December 31, 2016, which were offset by $6,219 of valuation allowance. Excess tax benefits of $923 and $1,101 were recognized in the provision for income taxes for the three and six months ended June 30, 2017, respectively, which were offset by $923 and $1,101 of valuation allowance, respectively.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2017
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	13. Commitments and Contingencies Certain of the Company’s product license and services agreements include an indemnification provision for claims from third parties relating to the Company’s intellectual property. These indemnification provisions are accounted for in accordance with ASC 450 “ Contingencies. The Company is subject from time to time to other legal proceedings and claims arising in the ordinary course of business. At this time, we do not believe that the resolution of any such matters will have a material adverse effect on our financial position, results of operations or cash flows.

Description of Business and S20

Description of Business and Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Description of Business	Description of Business Digimarc Corporation (“Digimarc” or the “Company”), an Oregon corporation, enables governments and enterprises around the world to give digital identities to media and objects that computers can sense and recognize, and to which they can react. The Company has developed Digimarc Discover ® ™
Interim Consolidated Financial Statements	Interim Consolidated Financial Statements The Company has adhered to the accounting policies set forth in its Annual Report on Form 10-K for the year ended December 31, 2016 in preparing the accompanying interim consolidated financial statements. The accompanying interim consolidated financial statements have been prepared from the Company’s records without audit and, in management’s opinion, include all adjustments (consisting of only normal recurring adjustments) necessary to fairly reflect the financial condition and the results of operations for the periods presented. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, which was filed with the SEC on February 23, 2017. The results of operations for the interim periods presented in these consolidated financial statements are not necessarily indicative of the results for the full year.
Reclassifications	Reclassifications Certain prior period amounts in the accompanying consolidated financial statements and notes thereto have been reclassified to conform to current period presentation. These reclassifications had no material effect on the results of operations or financial position for any period presented.
Contingencies	Contingencies The Company evaluates all pending or threatened contingencies or commitments, if any, that are reasonably likely to have a material adverse effect on the Company’s operations or financial position. The Company assesses the probability of an adverse outcome and determines if it is remote, reasonably possible or probable as defined in accordance with the provisions of ASC 450 “ Contingencies.
Goodwill	Goodwill The Company tests goodwill for impairment annually in June and whenever events or changes in circumstances indicate that the carrying value may exceed the fair value. The Company operates as a single reporting unit. The Company estimated the fair value of its single reporting unit using a market approach, which takes into account the Company’s market capitalization plus an estimated control premium. In connection with the Company’s annual impairment test of goodwill as of June 30, 2017 and 2016, it was concluded that there was no impairment to goodwill as the estimated fair value of the Company’s reporting unit substantially exceeded the carrying value.
Accounting Pronouncements	Accounting Pronouncements Adopted In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, “ Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting (Topic 718). In January 2017, the FASB issued ASU No. 2017-04, “ Intangibles – Goodwill and Other (Topic 350). Accounting Pronouncements Issued But Not Yet Adopted In May 2014, the FASB issued ASU No. 2014-09, “ Revenue from Contracts with Customers (Topic 606) In February 2016, the FASB issued ASU No. 2016-02, “ Leases (Topic 842) In August 2016, the FASB issued ASU No. 2016-15, “ Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments (Topic 230).
Earnings Per Share	The Company calculates basic and diluted earnings per common share in accordance with ASC 260 “ Earnings Per Share,

Fair Value of Financial Instr21

Fair Value of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Summary of Fair Value Hierarchy for Financial Assets	The Company’s fair value hierarchy for its cash equivalents and marketable securities as of June 30, 2017 and December 31, 2016, respectively, was as follows: June 30, 2017 Level 1 Level 2 Level 3 Total Money market securities $ 561 $ — $ — $ 561 Commercial paper — 30,776 — 30,776 Federal agency notes — 20,090 — 20,090 Corporate notes — 7,826 — 7,826 Pre-refunded municipal bonds (1) — 2,509 — 2,509 Total $ 561 $ 61,201 $ — $ 61,762 December 31, 2016 Level 1 Level 2 Level 3 Total Money market securities $ 1,218 $ — $ — $ 1,218 Federal agency notes — 16,810 — 16,810 Commercial paper — 16,757 — 16,757 Corporate notes — 15,753 — 15,753 Pre-refunded municipal bonds (1) — 6,716 — 6,716 U.S. treasuries — 2,515 — 2,515 Total $ 1,218 $ 58,551 $ — $ 59,769 (1) Pre-refunded municipal bonds are collateralized by U.S. treasuries.
Summary of Fair Value Maturities for Financial Asset	The fair value maturities of the Company’s cash equivalents and marketable securities as of June 30, 2017 are as follows: Maturities by Period Total Less 1 year 1-5 years 5 - 10 years More than 10 years Cash equivalents and marketable securities $ 61,762 $ 61,762 $ — $ — $ —

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
Geographical Segment Revenue	Revenue by geographic area, based upon the “bill-to” location, was as follows: Three Three Six Six Months Months Months Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2017 2016 2017 2016 Domestic $ 1,253 $ 1,151 $ 2,754 $ 2,284 International (1) 4,334 4,306 8,924 $ 8,753 Total $ 5,587 $ 5,457 $ 11,678 $ 11,037 (1) Revenue from the Central Banks, consisting of a consortium of central banks around the world, is classified as international revenue. Reporting revenue by country for this customer is not practicable.
Customers Who Accounted for 10% or More of Company's Revenue	Customers who accounted for 10% or more of the Company’s revenue are as follows: Three Three Six Six Months Months Months Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2017 2016 2017 2016 Central Banks 63 % 63 % 63 % 63 %

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Allocation of Stock-Based Compensation	Stock-based Compensation Three Three Six Six Months Months Months Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2017 2016 2017 2016 Stock-based compensation: Cost of revenue $ 175 $ 184 $ 351 $ 357 Sales and marketing 342 238 710 450 Research, development and engineering 354 379 662 704 General and administrative 637 544 1,210 1,045 Intellectual property 82 79 160 151 Stock-based compensation expense 1,590 1,424 3,093 2,707 Capitalized to software and patent costs 53 43 98 75 Total stock-based compensation $ 1,643 $ 1,467 $ 3,191 $ 2,782
Unrecognized Compensation Cost Related to Non-Vested Stock-Based Awards Granted	The following table sets forth total unrecognized compensation cost related to non-vested stock-based awards granted under all equity compensation plans, including stock options and restricted stock: As of As of June 30, December 31, 2017 2016 Total unrecognized compensation costs $ 12,577 $ 9,728
Weighted Average Period for Recognition of Unrecognized Compensation Cost for Stock Options and Restricted Stock	The Company expects to recognize the unrecognized compensation costs as of June 30, 2017 for stock options and restricted stock over weighted average periods through June 2021 as follows: Stock Restricted Options Stock Weighted average period 0.0 years 1.52 years
Reconciliation of Outstanding Balance of Stock Options	The following table reconciles the outstanding balance of stock options: Weighted Weighted Average Average Aggregate Exercise Grant Date Intrinsic Three months ended June 30, 2017: Options Price Fair Value Value Outstanding at March 31, 2017 402 $ 19.49 $ 9.13 Granted — — — Exercised (40 ) 9.64 6.30 Forfeited or expired — — — Outstanding at June 30, 2017 362 $ 20.60 $ 9.45 $ 7,071 Weighted Weighted Average Average Aggregate Exercise Grant Date Intrinsic Six months ended June 30, 2017: Options Price Fair Value Value Outstanding at December 31, 2016 421 $ 19.06 $ 9.01 Granted — — — Exercised (59 ) 9.64 6.30 Forfeited or expired — — — Outstanding at June 30, 2017 362 $ 20.60 $ 9.45 $ 7,071 Exercisable at June 30, 2017 362 $ 20.60 $ 7,071
Reconciliation of Unvested Balance of Restricted Stock	The following table reconciles the unvested balance of restricted stock: Weighted Average Number of Grant Date Three months ended June 30, 2017: Shares Fair Value Unvested balance, March 31, 2017 511 $ 25.91 Granted 58 $ 30.39 Vested (72 ) $ 17.40 Forfeited (5 ) $ 26.35 Unvested balance, June 30, 2017 492 $ 27.67 Weighted Average Number Grant Date Six months ended June 30, 2017: Shares Fair Value Unvested balance, December 31, 2016 385 $ 26.28 Granted 236 $ 26.43 Vested (122 ) $ 21.08 Forfeited (7 ) $ 24.32 Unvested balance, June 30, 2017 492 $ 27.67
Fair Value of Restricted Stock Awards Vested	The following table indicates the fair value of all restricted stock awards that vested during the three and six months ended June 30, 2017 and 2016: Three Three Six Six Months Months Months Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2017 2016 2017 2016 Fair value of restricted stock awards vested $ 2,214 $ 1,839 $ 3,491 $ 3,117

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Summary of Reconciliation of Earnings (Loss) Per Common Share	The following table reconciles earnings (loss) per common share for the three and six months ended June 30, 2017 and 2016: Three Three Six Six Months Months Months Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2017 2016 2017 2016 Basic Earnings (Loss) per Common Share: Numerator: Net loss $ (6,943 ) $ (5,283 ) $ (13,161 ) $ (10,718 ) Distributed earnings to common shares — — — — Distributed earnings to participating securities — — — — Total distributed earnings — — — — Undistributed loss allocable to common shares (6,943 ) (5,283 ) (13,161 ) (10,718 ) Undistributed earnings allocable to participating securities — — — — Total undistributed loss (6,943 ) (5,283 ) (13,161 ) (10,718 ) Loss to common shares—basic $ (6,943 ) $ (5,283 ) $ (13,161 ) $ (10,718 ) Denominator Weighted average common shares outstanding— basic 10,266 8,587 10,214 8,560 Basic earnings (loss) per common share (0.68 ) $ (0.62 ) (1.29 ) $ (1.25 ) Three Three Six Six Months Months Months Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2017 2016 2017 2016 Diluted Earnings (Loss) per Common Share: Numerator: Loss to common shares—basic $ (6,943 ) $ (5,283 ) $ (13,161 ) $ (10,718 ) Undistributed earnings allocated to participating securities — — — — Undistributed earnings reallocated to participating securities — — — — Loss to common shares—diluted $ (6,943 ) $ (5,283 ) $ (13,161 ) $ (10,718 ) Denominator Weighted average common shares outstanding— basic 10,266 8,587 10,214 8,560 Dilutive effect of stock options — — — — Weighted average common shares outstanding— dilutive 10,266 8,587 10,214 8,560 Diluted earnings (loss) per common share (0.68 ) $ (0.62 ) (1.29 ) $ (1.25 )

Trade Accounts Receivable (Tabl

Trade Accounts Receivable (Tables)	6 Months Ended
	Jun. 30, 2017
Receivables [Abstract]
Summary of Trade Accounts Receivable	Trade accounts receivable are recorded at the invoiced amount. June 30, December 31, 2017 2016 Trade accounts receivable $ 3,912 $ 5,093 Allowance for doubtful accounts (15 ) (15 ) Trade accounts receivable, net $ 3,897 $ 5,078 Unpaid deferred revenue included in trade accounts receivable $ 747 $ 2,245
Customers Who Accounted for 10% or More of Trade Accounts Receivable, Net	Customers who accounted for 10% or more of trade accounts receivable, net are as follows: June 30, December 31, 2017 2016 Central Banks 55 % 57 %

Property and Equipment (Tables)

Property and Equipment (Tables)	6 Months Ended
	Jun. 30, 2017
Property Plant And Equipment [Abstract]
Depreciation and Amortization on Property and Equipment Using the Straight-Line Method	Depreciation on property and equipment is calculated using the straight-line method over the estimated useful lives of the assets, generally two to ten years. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful life or the lease term. June 30, December 31, 2017 2016 Office furniture and fixtures $ 1,194 $ 1,168 Software 2,661 2,146 Equipment 4,366 4,071 Leasehold improvements 1,620 1,617 Gross property and equipment 9,841 9,002 Less accumulated depreciation and amortization (5,995 ) (5,432 ) Property and equipment, net $ 3,846 $ 3,570

Intangibles (Tables)

Intangibles (Tables)	6 Months Ended
	Jun. 30, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization of Intangible Assets Acquired	Amortization of intangible assets acquired is calculated using the straight-line method over the estimated useful lives of the assets. Estimated Life June 30, December 31, (years) 2017 2016 Capitalized patent costs 17-20 $ 7,650 $ 7,281 Intangible assets acquired: Purchased patents and intellectual property 3-10 250 250 Existing technology 5 1,560 1,560 Customer relationships 7 290 290 Backlog 2 760 760 Tradenames 3 290 290 Non-solicitation agreements 1 120 120 Gross intangible assets 10,920 10,551 Accumulated amortization (4,504 ) (4,129 ) Intangibles, net $ 6,416 $ 6,422

Description of Business and S28

Description of Business and Significant Accounting Policies - Additional Information (Detail) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Impairment of goodwill	$ 0	$ 0
ASU No. 2016-09 [Member]
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Unrecognized excess tax benefits of deferred tax assets offset by valuation allowance			$ 6,219,000
ASU No. 2016-09 [Member] | Retained Earnings [Member]
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Adjustment to opening retained earnings	$ 25,000

Fair Value of Financial Instr29

Fair Value of Financial Instruments - Summary of Fair Value Hierarchy for Financial Assets (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	$ 61,762
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	61,762	$ 59,769
Fair Value, Measurements, Recurring [Member] | Money Market Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	561	1,218
Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	30,776	16,757
Fair Value, Measurements, Recurring [Member] | Federal Agency Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	20,090	16,810
Fair Value, Measurements, Recurring [Member] | Corporate Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	7,826	15,753
Fair Value, Measurements, Recurring [Member] | U.S. Treasuries [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total		2,515
Fair Value, Measurements, Recurring [Member] | Pre-refunded Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	2,509	6,716
Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	561	1,218
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Money Market Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	561	1,218
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	0	0
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Federal Agency Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	0	0
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	0	0
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Treasuries [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total		0
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Pre-refunded Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	0	0
Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	61,201	58,551
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Money Market Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	0	0
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	30,776	16,757
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Federal Agency Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	20,090	16,810
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	7,826	15,753
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Treasuries [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total		2,515
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Pre-refunded Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	2,509	6,716
Level 3 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	0	0
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Money Market Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	0	0
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	0	0
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Federal Agency Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	0	0
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	0	0
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Treasuries [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total		0
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Pre-refunded Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	$ 0	$ 0

Fair Value of Financial Instr30

Fair Value of Financial Instruments - Summary of Fair Value Maturities for Financial Asset (Detail) $ in Thousands	Jun. 30, 2017USD ($)
Fair Value Disclosures [Abstract]
Cash equivalents and marketable securities, Maturities by Period, Total	$ 61,762
Cash equivalents and marketable securities, Maturities by Period, Less than 1 year	61,762
Cash equivalents and marketable securities, Maturities by Period, 1-5 years	0
Cash equivalents and marketable securities, Maturities by Period, 5-10 years	0
Cash equivalents and marketable securities, Maturities by Period, More than 10 years	$ 0

Fair Value of Financial Instr31

Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Highly liquid marketable securities with original maturities	90 days or less
Cash equivalents include money market funds and commercial paper	$ 28,249	$ 10,881

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2017
Revenue Recognition [Abstract]
Period of revenue from services	1 month
Subscription revenue term, minimum	1 year
Subscription revenue term, maximum	3 years
License revenue recognized payment terms, maximum	60 days
License revenue recognized payment terms, minimum	30 days

Segment Information - Additiona

Segment Information - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2017Segment
Revenue, Major Customer [Line Items]
Number of reporting segment	1
Sales [Member] | Minimum [Member] | Customer Concentration Risk [Member]
Revenue, Major Customer [Line Items]
Revenue from segment	10.00%

Segment Information - Geographi

Segment Information - Geographical Segment Revenue (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]
Total	$ 5,587	$ 5,457	$ 11,678	$ 11,037
Domestic [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total	1,253	1,151	2,754	2,284
International [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total	$ 4,334	$ 4,306	$ 8,924	$ 8,753

Segment Information - Customers

Segment Information - Customers Who Accounted for 10% or More of Company's Revenue (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Customer Concentration Risk [Member] | Sales [Member] | Central Banks [Member]
Revenue, Major Customer [Line Items]
Entity wide revenue major customers percentage	63.00%	63.00%	63.00%	63.00%

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted	0	0	0	0
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation plans, number of additional shares authorized for future grants			1,144,000
Closing price per share of Digimarc common stock	$ 40.15		$ 40.15

Stock-Based Compensation - Allo

Stock-Based Compensation - Allocation of Stock-Based Compensation (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 1,590	$ 1,424	$ 3,093	$ 2,707
Capitalized to software and patent costs	53	43	98	75
Total stock-based compensation	1,643	1,467	3,191	2,782
Cost of Revenue [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	175	184	351	357
Sales and Marketing [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	342	238	710	450
Research, Development and Engineering [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	354	379	662	704
General and Administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	637	544	1,210	1,045
Intellectual Property [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 82	$ 79	$ 160	$ 151

Stock-Based Compensation - Unre

Stock-Based Compensation - Unrecognized Compensation Cost Related to Non-Vested Stock-Based Awards Granted (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Total unrecognized compensation costs	$ 12,577	$ 9,728

Stock-Based Compensation - Weig

Stock-Based Compensation - Weighted Average Period for Recognition of Unrecognized Compensation Cost for Stock Options and Restricted Stock (Detail)	6 Months Ended
	Jun. 30, 2017
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period	0 years
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period	1 year 6 months 7 days

Stock-Based Compensation - Reco

Stock-Based Compensation - Reconciliation of Outstanding Balance of Stock Options (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Options, Outstanding at beginning	402,000		421,000
Options, Granted	0	0	0	0
Options, Exercised	(40,000)		(59,000)
Options, Forfeited or expired	0		0
Options, Outstanding at ending	362,000		362,000
Options, Exercisable at ending	362,000		362,000
Weighted Average Exercise Price, Outstanding at beginning	$ 19.49		$ 19.06
Weighted Average Exercise Price, Granted	0		0
Weighted Average Exercise Price, Exercised	9.64		9.64
Weighted Average Exercise Price, Forfeited or expired	0		0
Weighted Average Exercise Price, Outstanding at ending	20.60		20.60
Weighted Average Exercise Price, Exercisable at ending	20.60		20.60
Weighted Average Grant Date Fair Value, Outstanding at beginning	9.13		9.01
Weighted Average Grant Date Fair Value, Granted	0		0
Weighted Average Grant Date Fair Value, Exercised	6.30		6.30
Weighted Average Grant Date Fair Value, Forfeited or expired	0		0
Weighted Average Grant Date Fair Value, Outstanding at ending	$ 9.45		$ 9.45
Aggregate Intrinsic Value, Outstanding	$ 7,071		$ 7,071
Aggregate Intrinsic Value, Exercisable	$ 7,071		$ 7,071

Stock-Based Compensation - Re41

Stock-Based Compensation - Reconciliation of Unvested Balance of Restricted Stock (Detail) - Restricted Stock [Member] - $ / shares shares in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017
Number of Shares
Unvested, beginning balance	511	385
Granted	58	236
Vested	(72)	(122)
Forfeited	(5)	(7)
Unvested, ending balance	492	492
Weighted Average Grant Date Fair Value
Unvested, beginning balance	$ 25.91	$ 26.28
Granted	30.39	26.43
Vested	17.40	21.08
Forfeited	26.35	24.32
Unvested, ending balance	$ 27.67	$ 27.67

Stock-Based Compensation - Fair

Stock-Based Compensation - Fair Value of Restricted Stock Awards Vested (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of restricted stock awards vested	$ 2,214	$ 1,839	$ 3,491	$ 3,117

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Detail) - Common Stock [Member] $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2017USD ($)$ / sharesshares	Jun. 30, 2017$ / sharesshares
Shareholders Equity [Line Items]
Issuance of common stock | shares	500	500
Common stock price per share | $ / shares	$ 35.55	$ 35.55
Cash proceeds from sale of common stock	$ 17,775
Stock issuance cost	$ 72

Earnings Per Common Share - Sum

Earnings Per Common Share - Summary of Reconciliation of Earnings (Loss) Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Basic Earnings (Loss) per Common Share:
Net loss	$ (6,943)	$ (5,283)	$ (13,161)	$ (10,718)
Distributed earnings to common shares	0	0	0	0
Distributed earnings to participating securities	0	0	0	0
Total distributed earnings	0	0	0	0
Undistributed loss allocable to common shares	(6,943)	(5,283)	(13,161)	(10,718)
Undistributed earnings allocable to participating securities	0	0	0	0
Total undistributed loss	(6,943)	(5,283)	(13,161)	(10,718)
Loss to common shares—basic	$ (6,943)	$ (5,283)	$ (13,161)	$ (10,718)
Weighted average common shares outstanding—basic	10,266	8,587	10,214	8,560
Basic earnings (loss) per common share	$ (0.68)	$ (0.62)	$ (1.29)	$ (1.25)
Diluted Earnings (Loss) per Common Share:
Loss to common shares—basic	$ (6,943)	$ (5,283)	$ (13,161)	$ (10,718)
Undistributed earnings allocated to participating securities	0	0	0	0
Undistributed earnings reallocated to participating securities	0	0	0	0
Loss to common shares—diluted	$ (6,943)	$ (5,283)	$ (13,161)	$ (10,718)
Weighted average common shares outstanding—basic	10,266	8,587	10,214	8,560
Dilutive effect of stock options	0	0	0	0
Weighted average common shares outstanding— dilutive	10,266	8,587	10,214	8,560
Diluted earnings (loss) per common share	$ (0.68)	$ (0.62)	$ (1.29)	$ (1.25)

Earnings Per Common Share - Add

Earnings Per Common Share - Additional Information (Detail) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common stock equivalents related to stock options that were anti-dilutive and excluded from diluted net income per share	131	169	125	188
Higher Than Average Market Price [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common stock equivalents related to stock options that were anti-dilutive and excluded from diluted net income per share	0	75	75	0

Trade Accounts Receivable - Sum

Trade Accounts Receivable - Summary of Trade Accounts Receivable (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Accounts Receivable Net Current [Abstract]
Trade accounts receivable	$ 3,912	$ 5,093
Allowance for doubtful accounts	(15)	(15)
Trade accounts receivable, net	3,897	5,078
Unpaid deferred revenue included in trade accounts receivable	$ 747	$ 2,245

Trade Accounts Receivable - Add

Trade Accounts Receivable - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2017
Accounts Receivable [Member] | Minimum [Member] | Credit Concentration Risk [Member]
Concentration Risk [Line Items]
Percentage of trade accounts receivable of major customers	10.00%

Trade Accounts Receivable - Cus

Trade Accounts Receivable - Customers Who Accounted for 10% or More of Trade Accounts Receivable, Net (Detail)	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Accounts Receivable [Member] | Credit Concentration Risk [Member] | Central Banks [Member]
Concentration Risk [Line Items]
Percentage of trade accounts receivable of major customers	55.00%	57.00%

Property and Equipment - Additi

Property and Equipment - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2017
Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of the assets	2 years
Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of the assets	10 years

Property and Equipment - Deprec

Property and Equipment - Depreciation and Amortization on Property and Equipment Using the Straight-Line Method (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Property Plant And Equipment [Abstract]
Office furniture and fixtures	$ 1,194	$ 1,168
Software	2,661	2,146
Equipment	4,366	4,071
Leasehold improvements	1,620	1,617
Gross property and equipment	9,841	9,002
Less accumulated depreciation and amortization	(5,995)	(5,432)
Property and equipment, net	$ 3,846	$ 3,570

Intangibles - Additional Inform

Intangibles - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2017
Capitalized Patent Costs [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	17 years

Intangibles - Amortization of I

Intangibles - Amortization of Intangible Assets Acquired (Detail) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Capitalized patent costs	$ 7,650	$ 7,281
Intangible assets acquired:
Gross intangible assets	10,920	10,551
Accumulated amortization	(4,504)	(4,129)
Intangibles, net	$ 6,416	6,422
Capitalized Patent Costs [Member] | Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	17 years
Capitalized Patent Costs [Member] | Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	20 years
Purchased Patents and Intellectual Property [Member]
Intangible assets acquired:
Intangible assets amount	$ 250	250
Purchased Patents and Intellectual Property [Member] | Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	3 years
Purchased Patents and Intellectual Property [Member] | Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	10 years
Existing Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	5 years
Intangible assets acquired:
Intangible assets amount	$ 1,560	1,560
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	7 years
Intangible assets acquired:
Intangible assets amount	$ 290	290
Backlog [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	2 years
Intangible assets acquired:
Intangible assets amount	$ 760	760
Tradenames [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	3 years
Intangible assets acquired:
Intangible assets amount	$ 290	290
Non-solicitation Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	1 year
Intangible assets acquired:
Intangible assets amount	$ 120	$ 120

Joint Ventures and Related Pa53

Joint Ventures and Related Party Transactions - Additional Information (Detail)	1 Months Ended	6 Months Ended
	Mar. 31, 2012JointVenture	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Dec. 31, 2016USD ($)
Related Party Transaction [Line Items]
Number of joint venture agreements | JointVenture	2
TVaura LLC [Member]
Related Party Transaction [Line Items]
Equity method investment, ownership percentage	51.00%
Joint ventures revenue or expenses		$ 0	$ 0
Investment in joint venture		0		$ 0
TVaura Mobile LLC [Member]
Related Party Transaction [Line Items]
Equity method investment, ownership percentage	49.00%
Joint ventures revenue or expenses		0	$ 0
Investment in joint venture		$ 0		$ 0

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Income Tax Disclosure [Line Items]
Deferred tax assets, valuation allowance	$ 36,937	$ 36,937		$ 24,888
Effective tax rate		1.00%	0.00%
Change in valuation allowance		$ 12,049
ASU No. 2016-09 [Member]
Income Tax Disclosure [Line Items]
Unrecognized excess tax benefits of deferred tax assets offset by valuation allowance				$ 6,219
Excess tax benefits recognized in the provision for income taxes offset by valuation allowance	$ 923	$ 1,101