Digimarc (DMRC) 10-Q 26 Apr 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	Apr. 20, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
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		11,847,280

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 48,449	$ 40,823
Marketable securities	15,219	26,915
Trade accounts receivable, net	3,790	6,404
Other current assets	1,888	2,171
Total current assets	69,346	76,313
Property and equipment, net	4,103	4,236
Intangibles, net	6,478	6,381
Goodwill	1,114	1,114
Other assets	324	326
Total assets	81,365	88,370
Current liabilities:
Accounts payable and other accrued liabilities	1,464	1,914
Deferred revenue	2,839	3,124
Total current liabilities	4,303	5,038
Deferred rent and other long-term liabilities	941	985
Total liabilities	5,244	6,023
Commitments and contingencies (Note 12)
Shareholders’ equity:
Preferred stock (par value $0.001 per share, 2,500 authorized, 10 shares issued and outstanding at March 31, 2018 and December 31, 2017)	50	50
Common stock (par value $0.001 per share, 50,000 authorized, 11,847 and 11,651 shares issued and outstanding at March 31, 2018 and December 31, 2017, respectively)	12	12
Additional paid-in capital	157,540	155,793
Accumulated deficit	(81,481)	(73,508)
Total shareholders’ equity	76,121	82,347
Total liabilities and shareholders’ equity	$ 81,365	$ 88,370

Consolidated Balance Sheets (U3

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares shares in Thousands	Mar. 31, 2018	Dec. 31, 2017
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	11,847	11,651
Common stock, shares outstanding	11,847	11,651

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenue:
Service	$ 3,507	$ 3,696
Subscription	1,578	1,445
License	528	950
Total revenue	5,613	6,091
Cost of revenue:
Service	1,563	1,635
Subscription	482	556
License	140	118
Total cost of revenue	2,185	2,309
Gross profit	3,428	3,782
Operating expenses:
Sales and marketing	4,887	3,992
Research, development and engineering	3,947	3,459
General and administrative	2,632	2,385
Intellectual property	315	392
Total operating expenses	11,781	10,228
Operating loss	(8,353)	(6,446)
Other income, net	252	118
Loss before income taxes	(8,101)	(6,328)
Benefit (provision) for income taxes	(11)	110
Net loss	$ (8,112)	$ (6,218)
Earnings (loss) per common share:
Loss per common share — basic	$ (0.72)	$ (0.61)
Loss per common share — diluted	$ (0.72)	$ (0.61)
Weighted average common shares outstanding — basic	11,266	10,161
Weighted average common shares outstanding — diluted	11,266	10,161

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]	Accumulated Deficit [Member]
Balance at Dec. 31, 2016	$ 73,334	$ 50	$ 11	$ 120,985	$ (47,712)
Balance, shares at Dec. 31, 2016		10	10,523
Exercise of stock options	177	$ 0	$ 0	177	0
Exercise of stock options, shares		0	19
Issuance of restricted common stock	0	$ 0	$ 0	0	0
Issuance of restricted common stock, shares		0	178
Forfeiture of restricted common stock	0	$ 0	$ 0	0	0
Forfeiture of restricted common stock, shares		0	(2)
Purchase and retirement of common stock	(583)	$ 0	$ 0	(583)	0
Purchase and retirement of common stock, shares		0	(23)
Stock-based compensation	1,548	$ 0	$ 0	1,573	(25)
Net loss	(6,218)	0	0	0	(6,218)
Balance at Mar. 31, 2017	68,258	$ 50	$ 11	122,152	(53,955)
Balance, shares at Mar. 31, 2017		10	10,695
Balance at Dec. 31, 2017	82,347	$ 50	$ 12	155,793	(73,508)
Balance, shares at Dec. 31, 2017		10	11,651
Exercise of stock options	$ 560	$ 0	$ 0	560	0
Exercise of stock options, shares	46	0	46
Issuance of restricted common stock	$ 0	$ 0	$ 0	0	0
Issuance of restricted common stock, shares		0	178
Forfeiture of restricted common stock	0	$ 0	$ 0	0	0
Forfeiture of restricted common stock, shares		0	(10)
Purchase and retirement of common stock	(528)	$ 0	$ 0	(528)	0
Purchase and retirement of common stock, shares		0	(18)
Stock-based compensation	1,715	$ 0	$ 0	1,715	0
Cumulative effect of the adoption of the new revenue standard, net of tax	139	0	0	0	139
Net loss	(8,112)	0	0	0	(8,112)
Balance at Mar. 31, 2018	$ 76,121	$ 50	$ 12	$ 157,540	$ (81,481)
Balance, shares at Mar. 31, 2018		10	11,847

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net loss	$ (8,112)	$ (6,218)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation, amortization and write-off of property and equipment	380	299
Amortization and write-off of intangibles	146	257
Stock-based compensation	1,671	1,503
Changes in operating assets and liabilities:
Trade accounts receivable	2,614	1,274
Other current assets	304	70
Other assets	44	55
Accounts payable and other accrued liabilities	(420)	128
Deferred revenue	(219)	(498)
Net cash used in operating activities	(3,592)	(3,130)
Cash flows from investing activities:
Purchase of property and equipment	(302)	(605)
Capitalized patent costs	(208)	(200)
Maturity of marketable securities	18,657	16,399
Purchase of marketable securities	(6,961)	(10,561)
Net cash provided by investing activities	11,186	5,033
Cash flows from financing activities:
Exercise of stock options	560	177
Purchase of common stock	(528)	(583)
Net cash provided by (used in) financing activities	32	(406)
Net increase in cash and cash equivalents	7,626	1,497
Cash and cash equivalents at beginning of period	40,823	11,638
Cash and cash equivalents at end of period	48,449	13,135
Supplemental disclosure of cash flow information:
Cash received (paid) for income taxes, net	113	(13)
Supplemental schedule of non-cash investing activities:
Property and equipment and patent costs in accounts payable	(64)	(120)
Stock-based compensation capitalized to software and patent costs	$ 44	$ 45

Description of Business and Sig

Description of Business and Significant Accounting Policies	3 Months Ended
	Mar. 31, 2018
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, banks and businesses around the world to automatically and reliably identify and interact with virtually any media. The Company has pioneered the Digimarc® Intuitive Computing Platform (ICP TM Interim Consolidated Financial Statements Our significant accounting policies are detailed in "Note 1: Description of Business and Summary of Significant Accounting Policies" of our Annual Report on Form 10-K for the year ended December 31, 2017. Significant changes to our accounting policies as a result of adopting Accounting Standards Codification (“ASC”) 606, “ Revenue from Contracts with Customers 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, 2017, which was filed with the SEC on February 22, 2018. 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 Accounting Pronouncements Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “ Revenue from Contracts with Customers (Topic 606) In August 2016, the FASB issued ASU No. 2016-15, “ Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments (Topic 230). Accounting Pronouncements Issued But Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, “ Leases (Topic 842) Topic 840, Leases

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2018
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 March 31, 2018 and December 31, 2017, respectively, was as follows: March 31, 2018 Level 1 Level 2 Level 3 Total Money market securities $ 1,082 $ — $ — $ 1,082 Commercial paper — 50,997 — 50,997 Federal agency notes — 5,006 — 5,006 Corporate notes — 3,744 — 3,744 U.S. treasuries — 2,000 — 2,000 Total $ 1,082 $ 61,747 $ — $ 62,829 December 31, 2017 Level 1 Level 2 Level 3 Total Money market securities $ 2,197 $ — $ — $ 2,197 Commercial paper — 49,834 — 49,834 Federal agency notes — 10,715 — 10,715 U.S. treasuries — 1,996 — 1,996 Corporate notes — 1,934 — 1,934 Total $ 2,197 $ 64,479 $ — $ 66,676 The fair value maturities of the Company’s cash equivalents and marketable securities as of March 31, 2018 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 $ 62,829 $ 62,829 $ — $ — $ — 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 $47,610 and $39,761 at March 31, 2018 and December 31, 2017, respectively. Cash equivalents are carried at cost or amortized cost, which approximates fair value.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Mar. 31, 2018
Revenue Recognition [Abstract]
Revenue Recognition	3. Revenue Recognition The Company adopted ASC 606 “ Revenue from Contracts with Customers” Revenue Recognition Software. ASC 606 Effective January 1, 2018, revenue is recognized in accordance with ASC 606 by applying the following steps: Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize when (or as) the entity satisfies a performance obligation. The Company derives its revenue primarily from professional services, subscriptions and licensing of its intellectual property. Applicable revenue recognition criteria are considered separately for each performance obligation as follows: • Service revenue consists primarily of software development and consulting services. The majority of service revenue arrangements are structured as time and materials consulting agreements. 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 includes revenue derived from the sale of Digimarc Discover, Digimarc Barcode and Guardian products and services, is generally recurring, paid in advance and recognized over the term of the subscription, which is generally one to three years. • License revenue originates primarily from licensing the Company’s intellectual property where the Company receives license fees and/or royalties as its income stream. License fees are recognized when the customer has the right to the intellectual property and the license period has begun and royalties are recognized in the quarter in which the royalty was earned. Some customer arrangements contain multiple performance obligations such as professional services, software licenses, and maintenance and support fees. The Company accounts for individual products and services separately if they are distinct. The consideration is allocated between distinct products and services based on their stand-alone selling prices. For items that are not sold separately, the Company estimates the standalone selling price based on reasonably available information, including market conditions, specific factors affecting the Company, and information about the customer. ASC 605 and ASC 985 For the comparative periods, revenue was recognized under ASC 605 and ASC 985 when the following four criteria were met: (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. All revenue recognized in the Consolidated Statements of Operations is considered to be revenue from contracts with customers. The following table provides information about disaggregated revenue by major product line in the Company’s single reporting segment: Three Months Ended March 31, 2018 Service $ 3,507 Subscription Guardian 989 Digimarc Discover and Digimarc Barcode 589 License 528 Total $ 5,613 The Company has contract assets from contracts with customers that are classified as “trade accounts receivables.” Financial information about trade accounts receivable is included in Note 7. The Company has contract liabilities from contracts with customers which are classified as “deferred revenue.” Deferred revenue consists of billings in advance for professional services, subscriptions and licenses for which the performance obligation has not been satisfied. The following table provides information about contract liabilities from contracts with customers: March 31, December 31, 2018 2017 Deferred revenue, current $ 2,839 $ 3,124 Deferred revenue, long term 32 42 Total $ 2,871 $ 3,166 In addition to deferred revenue, the Company has backlog of $23,905 representing the transaction price from contractual obligations that are unsatisfied or partially unsatisfied as of March 31, 2018.

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2018
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 United States (“U.S.”) and in non-U.S. countries through its sales and licensing personnel and channel partners. Revenue by geographic area, based upon the “bill-to” location, was as follows: Three Three Months Months Ended Ended March 31, March 31, 2018 2017 Domestic $ 1,451 $ 1,501 International (1) 4,162 4,590 Total $ 5,613 $ 6,091 (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 per Regulation S-K, Item 101(c)(1)(vii) are as follows: Three Three Months Months Ended Ended March 31, March 31, 2018 2017 Central Banks 67 % 62 % 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	3 Months Ended
	Mar. 31, 2018
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 stock 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 Valuation and Amortization Method. The Company estimates the fair value of stock options on the date of grant (measurement date) using the Black-Scholes option valuation model. The Company amortizes the fair value of all awards on a straight-line basis over the requisite service periods, which are generally the vesting periods. Expected Life. The expected life of awards granted represents the period of time that they are expected to be outstanding. The Company determines the expected life based on historical experience with similar awards, giving consideration to the contractual terms and vesting schedules of the awards. Stock options granted generally vest over three years and have contractual terms of ten years. Expected Volatility. The Company estimates the volatility of its common stock at the date of grant based on the historical volatility of its common stock based on historical prices over the most recent period commensurate with the expected life of the award. Risk-Free Interest Rate. The Company determines the risk-free interest rate using current U.S. treasury yields for bonds with a maturity commensurate with the expected life of the award. Expected Dividend Yield. The expected dividend yield is derived by the Company’s expected annual dividend rate over the expected term divided by the fair value of the Company’s common stock at the grant date. There were no stock options granted during the three months ended March 31, 2018 and 2017. 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. Restricted stock awards granted generally vest over three to four years for employee grants and one to three years for director grants. Stock-based Compensation Three Three Months Months Ended Ended March 31, March 31, 2018 2017 Stock-based compensation: Cost of revenue $ 155 $ 176 Sales and marketing 345 368 Research, development and engineering 298 308 General and administrative 801 573 Intellectual property 72 78 Stock-based compensation expense 1,671 1,503 Capitalized to software and patent costs 44 45 Total stock-based compensation $ 1,715 $ 1,548 The following table sets forth total unrecognized compensation cost related to non-vested stock-based awards granted under all equity compensation plans: As of As of March 31, December 31, 2018 2017 Total unrecognized compensation costs $ 17,072 $ 13,669 Total unrecognized compensation costs will be adjusted for any future forfeitures if and when they occur. The Company expects to recognize the total unrecognized compensation costs as of March 31, 2018 for stock options and restricted stock over weighted average periods through March 2022 as follows: Stock Restricted Options Stock Weighted average period 1.37 years 1.58 years As of March 31, 2018, under all of the Company’s stock-based compensation plans, equity awards to purchase an additional 783 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 March 31, 2018: Options Price Fair Value Value Outstanding at December 31, 2017 515 $ 25.13 $ 11.64 Granted — — Exercised (46 ) 12.30 6.84 Forfeited or expired — — — Outstanding at March 31, 2018 469 $ 26.38 $ 12.10 $ 992 Exercisable at March 31, 2018 302 $ 24.10 $ 992 Unvested at March 31, 2018 167 $ 30.50 $ — The aggregate intrinsic value is based on the closing price of $23.95 per share of Digimarc common stock on March 31, 2018, which would have been received by the optionees had all of the options with exercise prices less than $23.95 per share been exercised on that date. Restricted Stock Activity The following table reconciles the unvested balance of restricted stock: Weighted Average Number Grant Date Three months ended March 31, 2018: Shares Fair Value Unvested balance, December 31, 2017 426 $ 28.44 Granted 178 $ 30.30 Vested (42 ) $ 28.80 Forfeited (10 ) $ 28.39 Unvested balance, March 31, 2018 552 $ 29.01 The following table indicates the fair value of all restricted stock awards that vested during the three months ended March 31, 2018 and 2017: Three Three Months Months Ended Ended March 31, March 31, 2018 2017 Fair value of restricted stock awards vested $ 1,256 $ 1,277

Earnings Per Common Share

Earnings Per Common Share	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
Earnings Per Common Share	6. 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 months ended March 31, 2018 and 2017: Three Three Months Months Ended Ended March 31, March 31, 2018 2017 Basic Earnings (Loss) per Common Share: Numerator: Net loss $ (8,112 ) $ (6,218 ) Distributed earnings to common shares — — Distributed earnings to participating securities — — Total distributed earnings — — Undistributed loss allocable to common shares (8,112 ) (6,218 ) Undistributed earnings allocable to participating securities — — Total undistributed loss (8,112 ) (6,218 ) Loss to common shares — basic $ (8,112 ) $ (6,218 ) Denominator Weighted average common shares outstanding — basic 11,266 10,161 Basic earnings (loss) per common share $ (0.72 ) $ (0.61 ) Three Three Months Months Ended Ended March 31, March 31, 2018 2017 Diluted Earnings (Loss) per Common Share: Numerator: Loss to common shares — basic $ (8,112 ) $ (6,218 ) Undistributed earnings allocated to participating securities — — Undistributed earnings reallocated to participating securities — — Loss to common shares — diluted $ (8,112 ) $ (6,218 ) Denominator Weighted average common shares outstanding — basic 11,266 10,161 Dilutive effect of stock options — — Weighted average common shares outstanding — diluted 11,266 10,161 Diluted earnings (loss) per common share $ (0.72 ) $ (0.61 ) There were 0 and 175 common stock equivalents related to stock options that were anti-dilutive and excluded from diluted earnings per common share calculations for the three months ended March 31, 2018 and 2017, respectively, because their exercise prices were higher than the average market price of the underlying common stock for the periods. There were 0 and 119 common stock equivalents related to stock options that were anti-dilutive and excluded from diluted earnings per common share calculations for the three months ended March 31, 2018 and 2017, respectively, because the Company incurred a net loss for the periods.

Trade Accounts Receivable

Trade Accounts Receivable	3 Months Ended
	Mar. 31, 2018
Receivables [Abstract]
Trade Accounts Receivable	7. Trade Accounts Receivable Trade Accounts Receivable Trade accounts receivable are recorded at the invoiced amount. March 31, December 31, 2018 2017 Trade accounts receivable $ 3,805 $ 6,419 Allowance for doubtful accounts (15 ) (15 ) Trade accounts receivable, net $ 3,790 $ 6,404 Unpaid deferred revenue included in trade accounts receivable $ 909 $ 2,217 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 The following customers accounted for 10% or more of trade accounts receivable, net: March 31, December 31, 2018 2017 Central Banks 60 % 47 %

Property and Equipment

Property and Equipment	3 Months Ended
	Mar. 31, 2018
Property Plant And Equipment [Abstract]
Property and Equipment	8. 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. March 31, December 31, 2018 2017 Office furniture and fixtures $ 1,558 $ 1,551 Software 3,227 3,068 Equipment 4,473 4,390 Leasehold improvements 1,718 1,720 Gross property and equipment 10,976 10,729 Less accumulated depreciation and amortization (6,873 ) (6,493 ) Property and equipment, net $ 4,103 $ 4,236

Intangibles

Intangibles	3 Months Ended
	Mar. 31, 2018
Goodwill And Intangible Assets Disclosure [Abstract]
Intangibles	9. 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. No impairment charges were recorded for the three months ended March 31, 2018 and 2017. 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 March 31, December 31, (years) 2018 2017 Capitalized patent costs 17-20 $ 8,200 $ 7,978 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 11,470 11,248 Accumulated amortization (4,992 ) (4,867 ) Intangibles, net $ 6,478 $ 6,381

Joint Ventures and Related Part

Joint Ventures and Related Party Transactions	3 Months Ended
	Mar. 31, 2018
Related Party Transactions [Abstract]
Joint Ventures and Related Party Transactions	10. Joint Ventures and Related Party Transactions In March 2012, Digimarc and The Nielsen Company (“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. Neither Digimarc nor Nielsen has contributed any capital to the joint venture upon reactivation. Digimarc and Nielsen continue 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 three months ended March 31, 2018 and 2017. The Company’s investment in each joint venture was $0 as of March 31, 2018 and December 31, 2017.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Income Taxes	11. Income Taxes The benefit (provision) for income taxes for the three months ended March 31, 2018 and 2017 reflects current taxes, deferred taxes, and withholding taxes. The effective tax rates for the three months ended March 31, 2018 and 2017 were 0% and 2%, respectively. The valuation allowance against net deferred tax assets as of March 31, 2018 was $35,337, an increase of $3,012 from $32,325 as of December 31, 2017. The Company adopted the provisions of ASU No. 2016-09, “ Compensation – Stock Compensation (Topic 718),” The U.S. enacted tax reform legislation on December 22, 2017 commonly known as the Tax Cuts and Jobs Act, (“the Act”), resulting in significant modifications to existing U.S. tax law. The provisions of the Act effective in 2018 have been recorded as applicable as of March 31, 2018.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2018
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	12. 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. Such 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, the Company does not believe that the resolution of any such matters will have a material adverse effect on its financial position, results of operations or cash flows.

Description of Business and S19

Description of Business and Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2018
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, banks and businesses around the world to automatically and reliably identify and interact with virtually any media. The Company has pioneered the Digimarc® Intuitive Computing Platform (ICP TM
Interim Consolidated Financial Statements	Interim Consolidated Financial Statements Our significant accounting policies are detailed in "Note 1: Description of Business and Summary of Significant Accounting Policies" of our Annual Report on Form 10-K for the year ended December 31, 2017. Significant changes to our accounting policies as a result of adopting Accounting Standards Codification (“ASC”) 606, “ Revenue from Contracts with Customers 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, 2017, which was filed with the SEC on February 22, 2018. 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
Accounting Pronouncements	Accounting Pronouncements Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “ Revenue from Contracts with Customers (Topic 606) In August 2016, the FASB issued ASU No. 2016-15, “ Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments (Topic 230). Accounting Pronouncements Issued But Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, “ Leases (Topic 842) Topic 840, Leases
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 Instr20

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2018
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 March 31, 2018 and December 31, 2017, respectively, was as follows: March 31, 2018 Level 1 Level 2 Level 3 Total Money market securities $ 1,082 $ — $ — $ 1,082 Commercial paper — 50,997 — 50,997 Federal agency notes — 5,006 — 5,006 Corporate notes — 3,744 — 3,744 U.S. treasuries — 2,000 — 2,000 Total $ 1,082 $ 61,747 $ — $ 62,829 December 31, 2017 Level 1 Level 2 Level 3 Total Money market securities $ 2,197 $ — $ — $ 2,197 Commercial paper — 49,834 — 49,834 Federal agency notes — 10,715 — 10,715 U.S. treasuries — 1,996 — 1,996 Corporate notes — 1,934 — 1,934 Total $ 2,197 $ 64,479 $ — $ 66,676
Summary of Fair Value Maturities for Financial Asset	The fair value maturities of the Company’s cash equivalents and marketable securities as of March 31, 2018 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 $ 62,829 $ 62,829 $ — $ — $ —

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Mar. 31, 2018
Revenue Recognition [Abstract]
Schedule of Disaggregated Revenue By Major Product Line in Single Reporting Segment	The following table provides information about disaggregated revenue by major product line in the Company’s single reporting segment: Three Months Ended March 31, 2018 Service $ 3,507 Subscription Guardian 989 Digimarc Discover and Digimarc Barcode 589 License 528 Total $ 5,613
Schedule of Contract Liabilities from Contracts with Customers	The following table provides information about contract liabilities from contracts with customers: March 31, December 31, 2018 2017 Deferred revenue, current $ 2,839 $ 3,124 Deferred revenue, long term 32 42 Total $ 2,871 $ 3,166

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
Geographical Segment Revenue	Revenue by geographic area, based upon the “bill-to” location, was as follows: Three Three Months Months Ended Ended March 31, March 31, 2018 2017 Domestic $ 1,451 $ 1,501 International (1) 4,162 4,590 Total $ 5,613 $ 6,091 (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 Per Regulation S-K	Customers per Regulation S-K, Item 101(c)(1)(vii) are as follows: Three Three Months Months Ended Ended March 31, March 31, 2018 2017 Central Banks 67 % 62 %

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Allocation of Stock-Based Compensation	Stock-based Compensation Three Three Months Months Ended Ended March 31, March 31, 2018 2017 Stock-based compensation: Cost of revenue $ 155 $ 176 Sales and marketing 345 368 Research, development and engineering 298 308 General and administrative 801 573 Intellectual property 72 78 Stock-based compensation expense 1,671 1,503 Capitalized to software and patent costs 44 45 Total stock-based compensation $ 1,715 $ 1,548
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: As of As of March 31, December 31, 2018 2017 Total unrecognized compensation costs $ 17,072 $ 13,669
Weighted Average Period for Recognition of Unrecognized Compensation Cost for Stock Options and Restricted Stock	The Company expects to recognize the total unrecognized compensation costs as of March 31, 2018 for stock options and restricted stock over weighted average periods through March 2022 as follows: Stock Restricted Options Stock Weighted average period 1.37 years 1.58 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 March 31, 2018: Options Price Fair Value Value Outstanding at December 31, 2017 515 $ 25.13 $ 11.64 Granted — — Exercised (46 ) 12.30 6.84 Forfeited or expired — — — Outstanding at March 31, 2018 469 $ 26.38 $ 12.10 $ 992 Exercisable at March 31, 2018 302 $ 24.10 $ 992 Unvested at March 31, 2018 167 $ 30.50 $ —
Reconciliation of Unvested Balance of Restricted Stock	The following table reconciles the unvested balance of restricted stock: Weighted Average Number Grant Date Three months ended March 31, 2018: Shares Fair Value Unvested balance, December 31, 2017 426 $ 28.44 Granted 178 $ 30.30 Vested (42 ) $ 28.80 Forfeited (10 ) $ 28.39 Unvested balance, March 31, 2018 552 $ 29.01
Fair Value of Restricted Stock Awards Vested	The following table indicates the fair value of all restricted stock awards that vested during the three months ended March 31, 2018 and 2017: Three Three Months Months Ended Ended March 31, March 31, 2018 2017 Fair value of restricted stock awards vested $ 1,256 $ 1,277

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	3 Months Ended
	Mar. 31, 2018
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 months ended March 31, 2018 and 2017: Three Three Months Months Ended Ended March 31, March 31, 2018 2017 Basic Earnings (Loss) per Common Share: Numerator: Net loss $ (8,112 ) $ (6,218 ) Distributed earnings to common shares — — Distributed earnings to participating securities — — Total distributed earnings — — Undistributed loss allocable to common shares (8,112 ) (6,218 ) Undistributed earnings allocable to participating securities — — Total undistributed loss (8,112 ) (6,218 ) Loss to common shares — basic $ (8,112 ) $ (6,218 ) Denominator Weighted average common shares outstanding — basic 11,266 10,161 Basic earnings (loss) per common share $ (0.72 ) $ (0.61 ) Three Three Months Months Ended Ended March 31, March 31, 2018 2017 Diluted Earnings (Loss) per Common Share: Numerator: Loss to common shares — basic $ (8,112 ) $ (6,218 ) Undistributed earnings allocated to participating securities — — Undistributed earnings reallocated to participating securities — — Loss to common shares — diluted $ (8,112 ) $ (6,218 ) Denominator Weighted average common shares outstanding — basic 11,266 10,161 Dilutive effect of stock options — — Weighted average common shares outstanding — diluted 11,266 10,161 Diluted earnings (loss) per common share $ (0.72 ) $ (0.61 )

Trade Accounts Receivable (Tabl

Trade Accounts Receivable (Tables)	3 Months Ended
	Mar. 31, 2018
Receivables [Abstract]
Summary of Trade Accounts Receivable	Trade accounts receivable are recorded at the invoiced amount. March 31, December 31, 2018 2017 Trade accounts receivable $ 3,805 $ 6,419 Allowance for doubtful accounts (15 ) (15 ) Trade accounts receivable, net $ 3,790 $ 6,404 Unpaid deferred revenue included in trade accounts receivable $ 909 $ 2,217
Customers Accounted for 10% or More of Trade Accounts Receivable, Net	The following customers accounted for 10% or more of trade accounts receivable, net: March 31, December 31, 2018 2017 Central Banks 60 % 47 %

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2018
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. March 31, December 31, 2018 2017 Office furniture and fixtures $ 1,558 $ 1,551 Software 3,227 3,068 Equipment 4,473 4,390 Leasehold improvements 1,718 1,720 Gross property and equipment 10,976 10,729 Less accumulated depreciation and amortization (6,873 ) (6,493 ) Property and equipment, net $ 4,103 $ 4,236

Intangibles (Tables)

Intangibles (Tables)	3 Months Ended
	Mar. 31, 2018
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 March 31, December 31, (years) 2018 2017 Capitalized patent costs 17-20 $ 8,200 $ 7,978 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 11,470 11,248 Accumulated amortization (4,992 ) (4,867 ) Intangibles, net $ 6,478 $ 6,381

Description of Business and S28

Description of Business and Significant Accounting Policies - Additional Information (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Increase to opening retained earnings	$ 139
ASU No. 2014-09 [Member]
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Increase to opening retained earnings	$ 139

Fair Value of Financial Instr29

Fair Value of Financial Instruments - Summary of Fair Value Hierarchy for Financial Assets (Detail) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	$ 62,829
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	62,829	$ 66,676
Fair Value, Measurements, Recurring [Member] | Money Market Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	1,082	2,197
Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	50,997	49,834
Fair Value, Measurements, Recurring [Member] | Federal Agency Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	5,006	10,715
Fair Value, Measurements, Recurring [Member] | U.S. Treasuries [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	2,000	1,996
Fair Value, Measurements, Recurring [Member] | Corporate Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	3,744	1,934
Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	1,082	2,197
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	1,082	2,197
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] | U.S. Treasuries [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 2 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	61,747	64,479
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	50,997	49,834
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	5,006	10,715
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	2,000	1,996
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	3,744	1,934
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] | U.S. Treasuries [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

Fair Value of Financial Instr30

Fair Value of Financial Instruments - Summary of Fair Value Maturities for Financial Asset (Detail) $ in Thousands	Mar. 31, 2018USD ($)
Fair Value Disclosures [Abstract]
Cash equivalents and marketable securities, Maturities by Period, Total	$ 62,829
Cash equivalents and marketable securities, Maturities by Period, Less than 1 year	62,829
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	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Fair Value Disclosures [Abstract]
Highly liquid marketable securities with original maturities	90 days or less
Cash equivalents include money market funds and commercial paper	$ 47,610	$ 39,761

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)
Revenue Recognition [Abstract]
Period of revenue from services	1 month
Subscription revenue term, minimum	1 year
Subscription revenue term, maximum	3 years
Transaction price from contractual obligations	$ 23,905

Revenue Recognition - Schedule

Revenue Recognition - Schedule of Disaggregated Revenue By Major Product Line in Single Reporting Segment (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Disaggregation Of Revenue [Line Items]
Service	$ 3,507	$ 3,696
Subscription	1,578	1,445
License	528	950
Total revenue	5,613	$ 6,091
Guardian [Member]
Disaggregation Of Revenue [Line Items]
Subscription	989
Digimarc Discover and Digimarc Barcode [Member]
Disaggregation Of Revenue [Line Items]
Subscription	$ 589

Revenue Recognition - Schedul34

Revenue Recognition - Schedule of Contract Liabilities from Contracts with Customers (Detail) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Revenue Recognition [Abstract]
Deferred revenue, current	$ 2,839	$ 3,124
Deferred revenue, long term	32	42
Total	$ 2,871	$ 3,166

Segment Information - Additiona

Segment Information - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2018Segment
Segment Reporting [Abstract]
Number of reporting segment	1

Segment Information - Geographi

Segment Information - Geographical Segment Revenue (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenues from External Customers and Long-Lived Assets [Line Items]
Total	$ 5,613	$ 6,091
Domestic [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total	1,451	1,501
International [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total	$ 4,162	$ 4,590

Segment Information - Major Cus

Segment Information - Major Customers Per Regulation S-K (Detail)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Customer Concentration Risk [Member] | Sales [Member] | Central Banks [Member]
Revenue, Major Customer [Line Items]
Entity wide revenue major customers percentage	67.00%	62.00%

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - $ / shares	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted	0	0
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period for stock options and restricted stock	3 years
Contractual terms	10 years
Stock-based compensation plans, number of additional shares authorized for future grants	783,000
Closing price per share of Digimarc common stock	$ 23.95
Restricted Stock [Member] | Minimum [Member] | Employee [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period for stock options and restricted stock	3 years
Restricted Stock [Member] | Minimum [Member] | Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period for stock options and restricted stock	1 year
Restricted Stock [Member] | Maximum [Member] | Employee [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period for stock options and restricted stock	4 years
Restricted Stock [Member] | Maximum [Member] | Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period for stock options and restricted stock	3 years

Stock-Based Compensation - Allo

Stock-Based Compensation - Allocation of Stock-Based Compensation (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 1,671	$ 1,503
Capitalized to software and patent costs	44	45
Total stock-based compensation	1,715	1,548
Cost of Revenue [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	155	176
Sales and Marketing [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	345	368
Research, Development and Engineering [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	298	308
General and Administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	801	573
Intellectual Property [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 72	$ 78

Stock-Based Compensation - Unre

Stock-Based Compensation - Unrecognized Compensation Cost Related to Non-Vested Stock-Based Awards Granted (Detail) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Total unrecognized compensation costs	$ 17,072	$ 13,669

Stock-Based Compensation - Weig

Stock-Based Compensation - Weighted Average Period for Recognition of Unrecognized Compensation Cost for Stock Options and Restricted Stock (Detail)	3 Months Ended
	Mar. 31, 2018
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period	1 year 4 months 13 days
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period	1 year 6 months 29 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
	Mar. 31, 2018	Mar. 31, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Options, Outstanding at beginning	515,000
Options, Granted	0	0
Options, Exercised	(46,000)
Options, Forfeited or expired	0
Options, Outstanding at ending	469,000
Options, Exercisable at ending	302,000
Options, Unvested at ending	167,000
Weighted Average Exercise Price, Outstanding at beginning	$ 25.13
Weighted Average Exercise Price, Granted	0
Weighted Average Exercise Price, Exercised	12.30
Weighted Average Exercise Price, Forfeited or expired	0
Weighted Average Exercise Price, Outstanding at ending	26.38
Weighted Average Exercise Price, Exercisable at ending	24.10
Weighted Average Exercise Price, Unvested at ending	30.50
Weighted Average Grant Date Fair Value, Outstanding at beginning	11.64
Weighted Average Grant Date Fair Value, Granted	0
Weighted Average Grant Date Fair Value, Exercised	6.84
Weighted Average Grant Date Fair Value, Forfeited or expired	0
Weighted Average Grant Date Fair Value, Outstanding at ending	$ 12.10
Aggregate Intrinsic Value, Outstanding	$ 992
Aggregate Intrinsic Value, Exercisable	992
Aggregate Intrinsic Value, Unvested	$ 0

Stock-Based Compensation - Re43

Stock-Based Compensation - Reconciliation of Unvested Balance of Restricted Stock (Detail) - Restricted Stock [Member] shares in Thousands	3 Months Ended
	Mar. 31, 2018$ / sharesshares
Number of Shares
Unvested, beginning balance | shares	426
Granted | shares	178
Vested | shares	(42)
Forfeited | shares	(10)
Unvested, ending balance | shares	552
Weighted Average Grant Date Fair Value
Unvested, beginning balance | $ / shares	$ 28.44
Granted | $ / shares	30.30
Vested | $ / shares	28.80
Forfeited | $ / shares	28.39
Unvested, ending balance | $ / shares	$ 29.01

Stock-Based Compensation - Fair

Stock-Based Compensation - Fair Value of Restricted Stock Awards Vested (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of restricted stock awards vested	$ 1,256	$ 1,277

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
	Mar. 31, 2018	Mar. 31, 2017
Basic Earnings (Loss) per Common Share:
Net loss	$ (8,112)	$ (6,218)
Distributed earnings to common shares	0	0
Distributed earnings to participating securities	0	0
Total distributed earnings	0	0
Undistributed loss allocable to common shares	(8,112)	(6,218)
Undistributed earnings allocable to participating securities	0	0
Total undistributed loss	(8,112)	(6,218)
Loss to common shares — basic	$ (8,112)	$ (6,218)
Weighted average common shares outstanding — basic	11,266	10,161
Basic earnings (loss) per common share	$ (0.72)	$ (0.61)
Diluted Earnings (Loss) per Common Share:
Loss to common shares — basic	$ (8,112)	$ (6,218)
Undistributed earnings allocated to participating securities	0	0
Undistributed earnings reallocated to participating securities	0	0
Loss to common shares — diluted	$ (8,112)	$ (6,218)
Weighted average common shares outstanding — basic	11,266	10,161
Dilutive effect of stock options	0	0
Weighted average common shares outstanding — diluted	11,266	10,161
Diluted earnings (loss) per common share	$ (0.72)	$ (0.61)

Earnings Per Common Share - Add

Earnings Per Common Share - Additional Information (Detail) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
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	119
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	175

Trade Accounts Receivable - Sum

Trade Accounts Receivable - Summary of Trade Accounts Receivable (Detail) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Accounts Receivable Net Current [Abstract]
Trade accounts receivable	$ 3,805	$ 6,419
Allowance for doubtful accounts	(15)	(15)
Trade accounts receivable, net	3,790	6,404
Unpaid deferred revenue included in trade accounts receivable	$ 909	$ 2,217

Trade Accounts Receivable - Add

Trade Accounts Receivable - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2018
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 Accounted for 10% or More of Trade Accounts Receivable, Net (Detail)	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Accounts Receivable [Member] | Credit Concentration Risk [Member] | Central Banks [Member]
Concentration Risk [Line Items]
Percentage of trade accounts receivable of major customers	60.00%	47.00%

Property and Equipment - Additi

Property and Equipment - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2018
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	Mar. 31, 2018	Dec. 31, 2017
Property Plant And Equipment [Abstract]
Office furniture and fixtures	$ 1,558	$ 1,551
Software	3,227	3,068
Equipment	4,473	4,390
Leasehold improvements	1,718	1,720
Gross property and equipment	10,976	10,729
Less accumulated depreciation and amortization	(6,873)	(6,493)
Property and equipment, net	$ 4,103	$ 4,236

Intangibles - Additional Inform

Intangibles - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Impairment charges on intangible	$ 0	$ 0
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	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Capitalized patent costs	$ 8,200	$ 7,978
Intangible assets acquired:
Gross intangible assets	11,470	11,248
Accumulated amortization	(4,992)	(4,867)
Intangibles, net	$ 6,478	6,381
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 Pa54

Joint Ventures and Related Party Transactions - Additional Information (Detail)	1 Months Ended	3 Months Ended
	Mar. 31, 2012JointVenture	Mar. 31, 2018USD ($)	Mar. 31, 2017USD ($)	Dec. 31, 2017USD ($)
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
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Line Items]
Deferred tax assets, valuation allowance	$ 35,337		$ 32,325
Effective tax rates	0.00%	2.00%
Change in valuation allowance	$ 3,012
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	$ 525	$ 179