Digimarc (DMRC) 10-Q 31 Oct 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Oct. 25, 2019
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Trading Symbol	DMRC
Entity Registrant Name	Digimarc CORP
Entity Central Index Key	0001438231
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Current Reporting Status	Yes
Entity File Number	001-34108
Entity Tax Identification Number	26-2828185
Entity Address, Address Line One	9405 SW Gemini Drive
Entity Address, City or Town	Beaverton
Entity Address, State or Province	OR
Entity Address, Postal Zip Code	97008
City Area Code	503
Local Phone Number	469-4800
Entity Common Stock, Shares Outstanding		12,428,028
Title of 12(b) Security	Common Stock, $0.001 Par Value Per Share
Security Exchange Name	NASDAQ
Entity Incorporation, State or Country Code	OR
Document Transition Report	false
Document Quarterly Report	true
Entity Interactive Data Current	Yes

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 16,414	$ 27,278
Marketable securities	24,921	16,378
Trade accounts receivable, net	3,570	3,888
Other current assets	2,882	2,100
Total current assets	47,787	49,644
Marketable securities	1,497	0
Property and equipment, net	3,594	3,955
Intangibles, net	6,723	6,649
Goodwill	1,114	1,114
Other assets	2,871	425
Total assets	63,586	61,787
Current liabilities:
Accounts payable and other accrued liabilities	2,615	1,092
Deferred revenue	2,391	3,226
Total current liabilities	5,006	4,318
Lease liability and other long-term liabilities	2,739	854
Total liabilities	7,745	5,172
Commitments and contingencies (Note 13)
Shareholders’ equity:
Preferred stock (par value $0.001 per share, 2,500 authorized, 10 shares issued and outstanding at September 30, 2019 and December 31, 2018)	50	50
Common stock (par value $0.001 per share, 50,000 authorized, 12,429 and 11,891 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively)	12	12
Additional paid-in capital	185,811	162,428
Accumulated deficit	(130,032)	(105,875)
Total shareholders’ equity	55,841	56,615
Total liabilities and shareholders’ equity	$ 63,586	$ 61,787

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares shares in Thousands	Sep. 30, 2019	Dec. 31, 2018
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	12,429	11,891
Common stock, shares outstanding	12,429	11,891

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenue:
Total revenue	$ 5,828	$ 4,914	$ 17,668	$ 15,965
Cost of revenue:
Total cost of revenue	1,918	1,935	6,237	6,325
Gross profit	3,910	2,979	11,431	9,640
Operating expenses:
Sales and marketing	4,839	4,741	14,876	14,385
Research, development and engineering	4,105	4,069	12,124	12,074
General and administrative	2,656	2,447	8,194	7,495
Intellectual property	342	328	1,093	948
Total operating expenses	11,942	11,585	36,287	34,902
Operating loss	(8,032)	(8,606)	(24,856)	(25,262)
Other income, net	259	273	727	799
Loss before income taxes	(7,773)	(8,333)	(24,129)	(24,463)
Benefit (provision) for income taxes	12	(9)	(28)	(29)
Net loss	$ (7,761)	$ (8,342)	$ (24,157)	$ (24,492)
Earnings (loss) per common share:
Loss per common share — basic	$ (0.65)	$ (0.73)	$ (2.07)	$ (2.16)
Loss per common share — diluted	$ (0.65)	$ (0.73)	$ (2.07)	$ (2.16)
Weighted average common shares outstanding — basic	11,924	11,394	11,693	11,333
Weighted average common shares outstanding — diluted	11,924	11,394	11,693	11,333
Service [Member]
Revenue:
Total revenue	$ 3,003	$ 2,787	$ 10,167	$ 9,630
Cost of revenue:
Total cost of revenue	1,287	1,301	4,371	4,412
Subscription [Member]
Revenue:
Total revenue	2,273	1,532	5,924	4,554
Cost of revenue:
Total cost of revenue	459	480	1,369	1,470
License [Member]
Revenue:
Total revenue	552	595	1,577	1,781
Cost of revenue:
Total cost of revenue	$ 172	$ 154	$ 497	$ 443

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, 2017	$ 82,347	$ 50	$ 12	$ 155,793	$ (73,508)
Balance, shares at Dec. 31, 2017		10	11,651
Exercise of stock options	1,064	$ 0	$ 0	1,064	0
Exercise of stock options, shares		0	82
Issuance of restricted common stock	0	$ 0	$ 0	0	0
Issuance of restricted common stock, shares		0	233
Forfeiture of restricted common stock	0	$ 0	$ 0	0	0
Forfeiture of restricted common stock, shares		0	(20)
Purchase and retirement of common stock	(1,689)	$ 0	$ 0	(1,689)	0
Purchase and retirement of common stock, shares		0	(58)
Stock-based compensation	5,475	$ 0	$ 0	5,475	0
Cumulative effect of the adoption of the new revenue standard, net of tax	139	0	0	0	139
Net loss	(24,492)	0	0	0	(24,492)
Balance at Sep. 30, 2018	62,844	$ 50	$ 12	160,643	(97,861)
Balance, shares at Sep. 30, 2018		10	11,888
Balance at Jun. 30, 2018	69,703	$ 50	$ 12	159,160	(89,519)
Balance, shares at Jun. 30, 2018		10	11,876
Exercise of stock options	150	$ 0	$ 0	150	0
Exercise of stock options, shares		0	10
Issuance of restricted common stock	0	$ 0	$ 0	0	0
Issuance of restricted common stock, shares		0	23
Forfeiture of restricted common stock	0	$ 0	$ 0	0	0
Forfeiture of restricted common stock, shares		0	(1)
Purchase and retirement of common stock	(569)	$ 0	$ 0	(569)	0
Purchase and retirement of common stock, shares		0	(20)
Stock-based compensation	1,902	$ 0	$ 0	1,902	0
Net loss	(8,342)	0	0	0	(8,342)
Balance at Sep. 30, 2018	62,844	$ 50	$ 12	160,643	(97,861)
Balance, shares at Sep. 30, 2018		10	11,888
Balance at Dec. 31, 2018	56,615	$ 50	$ 12	162,428	(105,875)
Balance, shares at Dec. 31, 2018		10	11,891
Issuance of common stock, net of issuance costs	19,615	$ 0	$ 0	19,615	0
Issuance of common stock, net of issuance costs, shares		0	336
Exercise of stock options	$ 293	$ 0	$ 0	293	0
Exercise of stock options, shares	23	0	23
Issuance of restricted common stock	$ 0	$ 0	$ 0	0	0
Issuance of restricted common stock, shares		0	292
Forfeiture of restricted common stock	0	$ 0	$ 0	0	0
Forfeiture of restricted common stock, shares		0	(47)
Purchase and retirement of common stock	(2,753)	$ 0	$ 0	(2,753)	0
Purchase and retirement of common stock, shares		0	(66)
Stock-based compensation	6,228	$ 0	$ 0	6,228	0
Net loss	(24,157)	0	0	0	(24,157)
Balance at Sep. 30, 2019	55,841	$ 50	$ 12	185,811	(130,032)
Balance, shares at Sep. 30, 2019		10	12,429
Balance at Jun. 30, 2019	$ 62,402	$ 50	$ 12	184,611	(122,271)
Balance, shares at Jun. 30, 2019		10	12,433
Exercise of stock options, shares	0
Issuance of restricted common stock	$ 0	$ 0	$ 0	0	0
Issuance of restricted common stock, shares		0	19
Forfeiture of restricted common stock	0	$ 0	$ 0	0	0
Forfeiture of restricted common stock, shares		0	(1)
Purchase and retirement of common stock	(885)	$ 0	$ 0	(885)	0
Purchase and retirement of common stock, shares		0	(22)
Stock-based compensation	2,085	$ 0	$ 0	2,085	0
Net loss	(7,761)	0	0	0	(7,761)
Balance at Sep. 30, 2019	$ 55,841	$ 50	$ 12	$ 185,811	$ (130,032)
Balance, shares at Sep. 30, 2019		10	12,429

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Net loss	$ (24,157)	$ (24,492)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation, amortization and write-off of property and equipment	1,098	1,167
Amortization and write-off of intangibles	533	437
Stock-based compensation	6,094	5,345
Changes in operating assets and liabilities:
Trade accounts receivable	318	3,447
Other current assets	(782)	(261)
Other assets	263	(148)
Accounts payable and other accrued liabilities	1,086	(299)
Deferred revenue	(735)	(1,225)
Lease liability and other long-term liabilities	(481)	(75)
Net cash used in operating activities	(16,763)	(16,104)
Cash flows from investing activities:
Purchase of property and equipment	(692)	(1,023)
Capitalized patent costs	(524)	(571)
Maturity of marketable securities	27,997	30,179
Purchase of marketable securities	(38,037)	(18,904)
Net cash provided by (used in) investing activities	(11,256)	9,681
Cash flows from financing activities:
Issuance of common stock, net of issuance costs	19,615	0
Exercise of stock options	293	1,064
Purchase of common stock	(2,753)	(1,689)
Net cash provided by (used in) financing activities	17,155	(625)
Net decrease in cash and cash equivalents	(10,864)	(7,048)
Cash and cash equivalents at beginning of period	27,278	40,823
Cash and cash equivalents at end of period	16,414	33,775
Supplemental disclosure of cash flow information:
Cash received for income taxes, net	89	92
Supplemental schedule of non-cash activities:
Property and equipment and patent costs in accounts payable	(6)	(39)
Stock-based compensation capitalized to software and patent costs	134	130
Right of use assets obtained in exchange for lease obligations	$ 2,709	$ 0

Description of Business and Sig

Description of Business and Significant Accounting Policies	9 Months Ended
	Sep. 30, 2019
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, retailers, consumer brands and other businesses around the world to automatically and reliably identify and interact with virtually any form of media. The Company has developed the Digimarc Platform, a comprehensive set of technologies for identifying, discovering and interacting with digitally-enhanced media. The platform includes Digimarc Barcode, a proprietary method for imperceptibly enhancing packaging, print, images, thermal labels, audio and other objects with data that is detected by enabled devices, such as smart phones, computers, barcode scanners and machine-vision equipment. Digimarc Discover software enables an ecosystem of connected devices to easily identify content or materials and deliver information. 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, 2018. Significant changes to our accounting policies as a result of adopting Accounting Standards Codification (“ASC”) 842, “ Leases 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, 2018, which was filed with the SEC on February 22, 2019. 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. Accounting Pronouncements Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, “ Leases (ASC 842) , Leases (ASC 840) Leases (ASC 842) Targeted Improvements Leases (ASC 842) Codification Improvements

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2019
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’s marketable securities are classified as held-to-maturity and are reported at amortized cost, which approximates fair value. The Company’s fair value hierarchy for its cash equivalents and marketable securities was as follows: September 30, 2019 Level 1 Level 2 Level 3 Total Money market securities $ 1,001 $ — $ — $ 1,001 Commercial paper — 29,776 — 29,776 Corporate notes — 7,318 — 7,318 U.S. treasuries — 4,020 — 4,020 Total $ 1,001 $ 41,114 $ — $ 42,115 December 31, 2018 Level 1 Level 2 Level 3 Total Money market securities $ 1,472 $ — $ — $ 1,472 Commercial paper — 28,343 — 28,343 Corporate notes — 12,106 — 12,106 Total $ 1,472 $ 40,449 $ — $ 41,921 The fair value maturities of the Company’s cash equivalents and marketable securities as of September 30, 2019, 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 $ 42,115 $ 40,618 $ 1,497 $ — $ — 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 commercial paper and money market funds totaling $15,697 and $25,543 at September 30, 2019 and December 31, 2018, respectively. Cash equivalents are carried at either cost or amortized cost depending on the type of security, which approximates fair value.

Revenue Recognition

Revenue Recognition	9 Months Ended
	Sep. 30, 2019
Revenue Recognition [Abstract]
Revenue Recognition	3. Revenue Recognition 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 revenue received from 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 Digimarc Guardian products and services, is generally recurring, paid in advance and recognized over the term of the subscription, which is typically one to three years. • License revenue includes revenue from licensing the Company’s intellectual property where the Company receives license fees and/or royalties. License fees are typically paid in advance and recognized when the customer has the right to the intellectual property and the license period has begun, and royalties are typically billed in arrears and 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. To determine the transaction price, the Company considers the terms of the contract and the Company’s customary business practices. Some contracts may contain variable consideration. In those cases, the Company estimates the amount of variable consideration based on the sum of probability-weighted amounts in a range of possible consideration amounts. As part of this assessment, the Company will evaluate whether any of the variable consideration is constrained, and if it is the Company will not include it in the transaction price. 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 stand-alone selling price based on reasonably available information, including market conditions, specific factors affecting the Company and information about the customer. For distinct products and services, the Company typically recognizes the revenue associated with these performance obligations as they are delivered to the customer. For performance obligations that are not considered distinct, the Company typically recognizes revenue over the term of the contract as the customer simultaneously receives and consumes the goods and services as the Company performs them. 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 Three Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2019 2018 2019 2018 Service $ 3,003 $ 2,787 $ 10,167 $ 9,630 Subscription Digimarc Guardian 784 904 2,489 2,781 Digimarc Discover and Digimarc Barcode 1,489 628 3,435 1,773 License 552 595 1,577 1,781 Total $ 5,828 $ 4,914 $ 17,668 $ 15,965 The Company has contract assets from contracts with customers that are classified as “trade accounts receivable.” Financial information about trade accounts receivable is included in Note 8. The Company has contract liabilities from contracts with customers that 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: September 30, December 31, 2019 2018 Deferred revenue, current $ 2,391 $ 3,226 Deferred revenue, long term 146 46 Total $ 2,537 $ 3,272 The aggregate amount of transaction prices from contractual obligations that are unsatisfied or partially unsatisfied was $15,770 and $17,496 as of September 30, 2019 and December 31, 2018, respectively.

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2019
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 and channel partners. Revenue by geographic area, based upon the “bill-to” location, was as follows: Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2019 2018 2019 2018 Domestic $ 2,136 $ 1,387 $ 5,225 $ 4,127 International (1) 3,692 3,527 12,443 11,838 Total $ 5,828 $ 4,914 $ 17,668 $ 15,965 (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 The following customers accounted for 10% or more of revenue: Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2019 2018 2019 2018 Central Banks 57 % 62 % 62 % 65 % Walmart Inc. 14 % * * * * Less than 10% Long-Lived Assets by Geographical Area The Company’s long-lived assets are all domiciled in the U.S.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2019
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 patent costs 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. Stock options valuation assumptions: Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2019 2018 2019 2018 Expected life (years) 3.20 4.50 3.20 4.50 Expected volatility 58.68 % 57.11 % 58.68 % 57.11 % Risk-free interest rate 1.51 % 2.77 % 1.51 % 2.77 % Expected dividend yield 0 % 0 % 0 % 0 % 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 Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2019 2018 2019 2018 Stock-based compensation: Cost of revenue $ 163 $ 134 $ 524 $ 456 Sales and marketing 459 442 1,467 1,198 Research, development and engineering 366 367 1,077 1,015 General and administrative 984 846 2,823 2,461 Intellectual property 69 76 203 215 Stock-based compensation expense 2,041 1,865 6,094 5,345 Capitalized to software and patent costs 44 37 134 130 Total stock-based compensation $ 2,085 $ 1,902 $ 6,228 $ 5,475 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 September 30, December 31, 2019 2018 Total unrecognized compensation costs $ 15,473 $ 14,055 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 September 30, 2019 for stock options and restricted stock over weighted average periods through September 30, 2023 as follows: Stock Restricted Options Stock Weighted average period 1.20 years 1.45 years As of September 30, 2019, under all of the Company’s stock-based compensation plans, equity awards to purchase an additional 1,276 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 September 30, 2019: Options Price Fair Value Value Outstanding at June 30, 2019 490 $ 29.26 $ 13.40 Granted 100 39.54 16.40 Exercised — — — Forfeited or expired — — — Outstanding at September 30, 2019 590 $ 31.00 $ 13.91 $ 4,817 Weighted Weighted Average Average Aggregate Exercise Grant Date Intrinsic Nine months ended September 30, 2019: Options Price Fair Value Value Outstanding at December 31, 2018 513 $ 28.52 $ 13.10 Granted 100 39.54 16.40 Exercised (23 ) 12.77 6.81 Forfeited or expired — — — Outstanding at September 30, 2019 590 $ 31.00 $ 13.91 $ 4,817 Exercisable at September 30, 2019 357 $ 28.97 $ 3,608 Unvested at September 30, 2019 233 $ 34.10 $ 1,209 The aggregate intrinsic value is based on the closing price of $39.09 per share of Digimarc common stock on September 30, 2019, the last trading day before the end of the third fiscal quarter, which would have been received by the optionees had all of the options with exercise prices less than $39.09 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 September 30, 2019: Shares Fair Value Unvested balance, June 30, 2019 525 $ 26.61 Granted 19 $ 40.29 Vested (55 ) $ 27.27 Forfeited (1 ) $ 26.68 Unvested balance, September 30, 2019 488 $ 27.06 Weighted Average Number of Grant Date Nine months ended September 30, 2019: Shares Fair Value Unvested balance, December 31, 2018 426 $ 28.85 Granted 292 $ 24.96 Vested (183 ) $ 27.87 Forfeited (47 ) $ 27.12 Unvested balance, September 30, 2019 488 $ 27.06 The following table indicates the fair value of all restricted stock awards that vested: Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2019 2018 2019 2018 Fair value of restricted stock awards vested $ 2,195 $ 1,432 $ 7,427 $ 4,704

Shareholders' Equity

Shareholders' Equity	9 Months Ended
	Sep. 30, 2019
Equity [Abstract]
Shareholders' Equity	6 . Shareholders’ Equity In May 2019, the Company entered into an Equity Distribution Agreement, whereby the Company may sell from time to time through Wells Fargo Securities, LLC, as its sales agent, the Company’s common stock having an aggregate offering price of up to $30,000. For the nine months ended September 30, 2019, the Company sold 336 shares at an average price of $60.61 under this Equity Distribution Agreement totaling $20,349 of cash proceeds, less $483 of commissions and $251 of stock issuance costs, for net cash proceeds of $19,615.

Earnings Per Common Share

Earnings Per Common Share	9 Months Ended
	Sep. 30, 2019
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 dilutive effect of stock options is determined using the treasury stock method. The following table reconciles earnings (loss) per common share: Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2019 2018 2019 2018 Basic Earnings (Loss) per Common Share: Numerator: Net loss $ (7,761 ) $ (8,342 ) $ (24,157 ) $ (24,492 ) Distributed earnings to common shares — — — — Distributed earnings to participating securities — — — — Total distributed earnings — — — — Undistributed loss allocable to common shares (7,761 ) (8,342 ) (24,157 ) (24,492 ) Undistributed earnings allocable to participating securities — — — — Total undistributed loss (7,761 ) (8,342 ) (24,157 ) (24,492 ) Loss to common shares — basic $ (7,761 ) $ (8,342 ) $ (24,157 ) $ (24,492 ) Denominator Weighted average common shares outstanding — basic 11,924 11,394 11,693 11,333 Basic earnings (loss) per common share $ (0.65 ) $ (0.73 ) $ (2.07 ) $ (2.16 ) Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2019 2018 2019 2018 Diluted Earnings (Loss) per Common Share: Numerator: Loss to common shares — basic $ (7,761 ) $ (8,342 ) $ (24,157 ) $ (24,492 ) Undistributed earnings allocated to participating securities — — — — Undistributed earnings reallocated to participating securities — — — — Loss to common shares — diluted $ (7,761 ) $ (8,342 ) $ (24,157 ) $ (24,492 ) Denominator Weighted average common shares outstanding — basic 11,924 11,394 11,693 11,333 Dilutive effect of stock options — — — — Weighted average common shares outstanding — diluted 11,924 11,394 11,693 11,333 Diluted earnings (loss) per common share $ (0.65 ) $ (0.73 ) $ (2.07 ) $ (2.16 ) The following table indicates the common stock equivalents related to stock options that were anti-dilutive and excluded from diluted earnings per common share calculations: Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2019 2018 2019 2018 Anti-dilutive shares due to: Exercise prices higher than the average market price — 375 100 375 Net loss 95 — 39 —

Trade Accounts Receivable

Trade Accounts Receivable	9 Months Ended
	Sep. 30, 2019
Receivables [Abstract]
Trade Accounts Receivable	8 . Trade Accounts Receivable Trade Accounts Receivable Trade accounts receivable are recorded at the invoiced amount. September 30, December 31, 2019 2018 Trade accounts receivable $ 3,585 $ 3,903 Allowance for doubtful accounts (15 ) (15 ) Trade accounts receivable, net $ 3,570 $ 3,888 Unpaid deferred revenue included in trade accounts receivable $ 857 $ 2,030 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. Major Customers The following customers accounted for 10% or more of trade accounts receivable, net: September 30, December 31, 2019 2018 Central Banks 52 % 48 % Customer B 11 % * * Less than 10%

Property and Equipment

Property and Equipment	9 Months Ended
	Sep. 30, 2019
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. September 30, December 31, 2019 2018 Office furniture and fixtures $ 1,636 $ 1,626 Software 4,098 3,686 Equipment 4,939 4,814 Leasehold improvements 1,721 1,721 Gross property and equipment 12,394 11,847 Less accumulated depreciation and amortization (8,800 ) (7,892 ) Property and equipment, net $ 3,594 $ 3,955

Intangibles

Intangibles	9 Months Ended
	Sep. 30, 2019
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. No impairment charges were recorded for the nine months ended September 30, 2019 and 2018. 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 17 years. Amortization of intangible assets acquired is calculated using the straight-line method over the estimated useful lives of the assets. Estimated Life September 30, December 31, (years) 2019 2018 Capitalized patent costs 17-20 $ 9,254 $ 8,757 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 12,524 12,027 Accumulated amortization (5,801 ) (5,378 ) Intangibles, net $ 6,723 $ 6,649

Leases

Leases	9 Months Ended
	Sep. 30, 2019
Leases [Abstract]
Leases	11 . Leases The Company adopted ASC 842, “ Leases The Company leases office spaces in Beaverton, Oregon and San Mateo, California. In July 2015, the Company entered into an amendment with the landlord of its corporate offices in Beaverton, Oregon to extend the lease term through March 2024 with remaining rent payments as of September 30, 2019 totaling $4,054, payable in monthly installments. In February 2015, the Company entered into a new facilities lease agreement in San Mateo, California with a lease term through March 2020, with remaining rent payments as of September 30, 2019 totaling $234, payable in monthly installments. The Company currently subleases this facility to a third party with a lease term through March 2020. All of the Company’s leases are operating leases. The following table provides additional details of leases presented in the balance sheets: September 30, 2019 Right of use assets $ 2,376 Lease liabilities, current $ 678 Lease liabilities, long-term $ 2,593 Weighted-average remaining life 4.5 years Weighted-average discount rate 8.20 % The carrying value of the right of use assets is included in “Other assets” and the current and long-term lease liabilities are included in “Accounts payable and other accrued liabilities” and “Lease liability and other long-term liabilities,” respectively, in the consolidated balance sheets. Operating lease expense is included in cost of revenue and operating expenses in the consolidated statements of operations and in cash flows from operating activities on the consolidated statements of cash flows. The operating leases include variable lease costs which are not material and are included in operating lease costs. Additional details of the Company’s operating leases are presented in the following table: Three Nine Months Months Ended Ended September 30, September 30, 2019 2019 Operating lease expense $ 251 $ 772 Cash paid for operating leases $ 322 $ 1,014 The table below reconciles the undiscounted cash payment obligations for the first five years and total of the remaining years for the operating lease liability recorded in the consolidated balance sheet as of September 30, 2019: Cash Payment Year ending December 31: Obligations 2019 (remaining) $ 259 2020 870 2021 838 2022 862 2023 867 Thereafter 218 Total lease payments 3,914 Imputed interest (643 ) Total minimum lease payments $ 3,271

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	12 . Income Taxes The provision for income taxes for the nine months ended September 30, 2019 and 2018 reflects current taxes, deferred taxes, and withholding taxes. The effective tax rate for each of the nine months ended September 30, 2019 and 2018 was 0%. The valuation allowance against net deferred tax assets as of September 30, 2019 was $50,072, an increase of $7,723 from $42,349 as of December 31, 2018. Excess tax benefits of $707 and $2,751 were recognized in the provision for income taxes for the three and nine months ended September 30, 2019, respectively, which were offset by $707 and $2,751 of valuation allowance, respectively. Excess tax benefits of $51 and $762 were recognized in the provision for income taxes for the three and nine months ended September 30, 2018, respectively, which were offset by $51 and $762 of valuation allowance, respectively.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2019
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. Such indemnification provisions are accounted for in accordance with ASC 450 “ Contingencies The Company is subject from time to time to 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 S_2

Description of Business and Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2019
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, retailers, consumer brands and other businesses around the world to automatically and reliably identify and interact with virtually any form of media. The Company has developed the Digimarc Platform, a comprehensive set of technologies for identifying, discovering and interacting with digitally-enhanced media. The platform includes Digimarc Barcode, a proprietary method for imperceptibly enhancing packaging, print, images, thermal labels, audio and other objects with data that is detected by enabled devices, such as smart phones, computers, barcode scanners and machine-vision equipment. Digimarc Discover software enables an ecosystem of connected devices to easily identify content or materials and deliver information.
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, 2018. Significant changes to our accounting policies as a result of adopting Accounting Standards Codification (“ASC”) 842, “ Leases 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, 2018, which was filed with the SEC on February 22, 2019. 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.
Accounting Pronouncements	Accounting Pronouncements Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, “ Leases (ASC 842) , Leases (ASC 840) Leases (ASC 842) Targeted Improvements Leases (ASC 842) Codification Improvements
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 Instr_2

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2019
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 was as follows: September 30, 2019 Level 1 Level 2 Level 3 Total Money market securities $ 1,001 $ — $ — $ 1,001 Commercial paper — 29,776 — 29,776 Corporate notes — 7,318 — 7,318 U.S. treasuries — 4,020 — 4,020 Total $ 1,001 $ 41,114 $ — $ 42,115 December 31, 2018 Level 1 Level 2 Level 3 Total Money market securities $ 1,472 $ — $ — $ 1,472 Commercial paper — 28,343 — 28,343 Corporate notes — 12,106 — 12,106 Total $ 1,472 $ 40,449 $ — $ 41,921
Summary of Fair Value Maturities for Financial Asset	The fair value maturities of the Company’s cash equivalents and marketable securities as of September 30, 2019, 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 $ 42,115 $ 40,618 $ 1,497 $ — $ —

Revenue Recognition (Tables)

Revenue Recognition (Tables)	9 Months Ended
	Sep. 30, 2019
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 Three Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2019 2018 2019 2018 Service $ 3,003 $ 2,787 $ 10,167 $ 9,630 Subscription Digimarc Guardian 784 904 2,489 2,781 Digimarc Discover and Digimarc Barcode 1,489 628 3,435 1,773 License 552 595 1,577 1,781 Total $ 5,828 $ 4,914 $ 17,668 $ 15,965
Schedule of Contract Liabilities from Contracts with Customers	The following table provides information about contract liabilities from contracts with customers: September 30, December 31, 2019 2018 Deferred revenue, current $ 2,391 $ 3,226 Deferred revenue, long term 146 46 Total $ 2,537 $ 3,272

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2019
Segment Reporting [Abstract]
Geographical Segment Revenue	Revenue by geographic area, based upon the “bill-to” location, was as follows: Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2019 2018 2019 2018 Domestic $ 2,136 $ 1,387 $ 5,225 $ 4,127 International (1) 3,692 3,527 12,443 11,838 Total $ 5,828 $ 4,914 $ 17,668 $ 15,965 (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 Accounted for 10% or More of Revenue	The following customers accounted for 10% or more of revenue: Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2019 2018 2019 2018 Central Banks 57 % 62 % 62 % 65 % Walmart Inc. 14 % * * * * Less than 10%

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock Option Valuation Assumptions	Stock options valuation assumptions: Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2019 2018 2019 2018 Expected life (years) 3.20 4.50 3.20 4.50 Expected volatility 58.68 % 57.11 % 58.68 % 57.11 % Risk-free interest rate 1.51 % 2.77 % 1.51 % 2.77 % Expected dividend yield 0 % 0 % 0 % 0 %
Allocation of Stock-Based Compensation	Stock-Based Compensation Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2019 2018 2019 2018 Stock-based compensation: Cost of revenue $ 163 $ 134 $ 524 $ 456 Sales and marketing 459 442 1,467 1,198 Research, development and engineering 366 367 1,077 1,015 General and administrative 984 846 2,823 2,461 Intellectual property 69 76 203 215 Stock-based compensation expense 2,041 1,865 6,094 5,345 Capitalized to software and patent costs 44 37 134 130 Total stock-based compensation $ 2,085 $ 1,902 $ 6,228 $ 5,475
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 September 30, December 31, 2019 2018 Total unrecognized compensation costs $ 15,473 $ 14,055
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 September 30, 2019 for stock options and restricted stock over weighted average periods through September 30, 2023 as follows: Stock Restricted Options Stock Weighted average period 1.20 years 1.45 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 September 30, 2019: Options Price Fair Value Value Outstanding at June 30, 2019 490 $ 29.26 $ 13.40 Granted 100 39.54 16.40 Exercised — — — Forfeited or expired — — — Outstanding at September 30, 2019 590 $ 31.00 $ 13.91 $ 4,817 Weighted Weighted Average Average Aggregate Exercise Grant Date Intrinsic Nine months ended September 30, 2019: Options Price Fair Value Value Outstanding at December 31, 2018 513 $ 28.52 $ 13.10 Granted 100 39.54 16.40 Exercised (23 ) 12.77 6.81 Forfeited or expired — — — Outstanding at September 30, 2019 590 $ 31.00 $ 13.91 $ 4,817 Exercisable at September 30, 2019 357 $ 28.97 $ 3,608 Unvested at September 30, 2019 233 $ 34.10 $ 1,209
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 September 30, 2019: Shares Fair Value Unvested balance, June 30, 2019 525 $ 26.61 Granted 19 $ 40.29 Vested (55 ) $ 27.27 Forfeited (1 ) $ 26.68 Unvested balance, September 30, 2019 488 $ 27.06 Weighted Average Number of Grant Date Nine months ended September 30, 2019: Shares Fair Value Unvested balance, December 31, 2018 426 $ 28.85 Granted 292 $ 24.96 Vested (183 ) $ 27.87 Forfeited (47 ) $ 27.12 Unvested balance, September 30, 2019 488 $ 27.06
Fair Value of Restricted Stock Awards Vested	The following table indicates the fair value of all restricted stock awards that vested: Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2019 2018 2019 2018 Fair value of restricted stock awards vested $ 2,195 $ 1,432 $ 7,427 $ 4,704

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	9 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Summary of Reconciliation of Earnings (Loss) Per Common Share	The following table reconciles earnings (loss) per common share: Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2019 2018 2019 2018 Basic Earnings (Loss) per Common Share: Numerator: Net loss $ (7,761 ) $ (8,342 ) $ (24,157 ) $ (24,492 ) Distributed earnings to common shares — — — — Distributed earnings to participating securities — — — — Total distributed earnings — — — — Undistributed loss allocable to common shares (7,761 ) (8,342 ) (24,157 ) (24,492 ) Undistributed earnings allocable to participating securities — — — — Total undistributed loss (7,761 ) (8,342 ) (24,157 ) (24,492 ) Loss to common shares — basic $ (7,761 ) $ (8,342 ) $ (24,157 ) $ (24,492 ) Denominator Weighted average common shares outstanding — basic 11,924 11,394 11,693 11,333 Basic earnings (loss) per common share $ (0.65 ) $ (0.73 ) $ (2.07 ) $ (2.16 ) Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2019 2018 2019 2018 Diluted Earnings (Loss) per Common Share: Numerator: Loss to common shares — basic $ (7,761 ) $ (8,342 ) $ (24,157 ) $ (24,492 ) Undistributed earnings allocated to participating securities — — — — Undistributed earnings reallocated to participating securities — — — — Loss to common shares — diluted $ (7,761 ) $ (8,342 ) $ (24,157 ) $ (24,492 ) Denominator Weighted average common shares outstanding — basic 11,924 11,394 11,693 11,333 Dilutive effect of stock options — — — — Weighted average common shares outstanding — diluted 11,924 11,394 11,693 11,333 Diluted earnings (loss) per common share $ (0.65 ) $ (0.73 ) $ (2.07 ) $ (2.16 )
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The following table indicates the common stock equivalents related to stock options that were anti-dilutive and excluded from diluted earnings per common share calculations: Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2019 2018 2019 2018 Anti-dilutive shares due to: Exercise prices higher than the average market price — 375 100 375 Net loss 95 — 39 —

Trade Accounts Receivable (Tabl

Trade Accounts Receivable (Tables)	9 Months Ended
	Sep. 30, 2019
Receivables [Abstract]
Summary of Trade Accounts Receivable	Trade accounts receivable are recorded at the invoiced amount. September 30, December 31, 2019 2018 Trade accounts receivable $ 3,585 $ 3,903 Allowance for doubtful accounts (15 ) (15 ) Trade accounts receivable, net $ 3,570 $ 3,888 Unpaid deferred revenue included in trade accounts receivable $ 857 $ 2,030
Customers Accounted for 10% or More of Trade Accounts Receivable, Net	The following customers accounted for 10% or more of trade accounts receivable, net: September 30, December 31, 2019 2018 Central Banks 52 % 48 % Customer B 11 % * * Less than 10%

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Sep. 30, 2019
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. September 30, December 31, 2019 2018 Office furniture and fixtures $ 1,636 $ 1,626 Software 4,098 3,686 Equipment 4,939 4,814 Leasehold improvements 1,721 1,721 Gross property and equipment 12,394 11,847 Less accumulated depreciation and amortization (8,800 ) (7,892 ) Property and equipment, net $ 3,594 $ 3,955

Intangibles (Tables)

Intangibles (Tables)	9 Months Ended
	Sep. 30, 2019
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 September 30, December 31, (years) 2019 2018 Capitalized patent costs 17-20 $ 9,254 $ 8,757 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 12,524 12,027 Accumulated amortization (5,801 ) (5,378 ) Intangibles, net $ 6,723 $ 6,649

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2019
Leases [Abstract]
Additional Details of Leases Presented in Balance Sheets	All of the Company’s leases are operating leases. The following table provides additional details of leases presented in the balance sheets: September 30, 2019 Right of use assets $ 2,376 Lease liabilities, current $ 678 Lease liabilities, long-term $ 2,593 Weighted-average remaining life 4.5 years Weighted-average discount rate 8.20 %
Additional Details of Operating Lease Expense	Operating lease expense is included in cost of revenue and operating expenses in the consolidated statements of operations and in cash flows from operating activities on the consolidated statements of cash flows. The operating leases include variable lease costs which are not material and are included in operating lease costs. Additional details of the Company’s operating leases are presented in the following table: Three Nine Months Months Ended Ended September 30, September 30, 2019 2019 Operating lease expense $ 251 $ 772 Cash paid for operating leases $ 322 $ 1,014
Reconciliation of Undiscounted Cash Payment Obligations of Operating Lease Liability	The table below reconciles the undiscounted cash payment obligations for the first five years and total of the remaining years for the operating lease liability recorded in the consolidated balance sheet as of September 30, 2019: Cash Payment Year ending December 31: Obligations 2019 (remaining) $ 259 2020 870 2021 838 2022 862 2023 867 Thereafter 218 Total lease payments 3,914 Imputed interest (643 ) Total minimum lease payments $ 3,271

Description of Business and S_3

Description of Business and Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Jan. 01, 2019
Accounting Policies [Abstract]
Estimated right of use assets	$ 2,376	$ 2,709
Estimated lease liabilities	$ 3,271	3,792
Deferred rent liability		$ 1,083

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Summary of Fair Value Hierarchy for Financial Assets (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	$ 42,115
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	42,115	$ 41,921
Fair Value, Measurements, Recurring [Member] | Money Market Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	1,001	1,472
Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	29,776	28,343
Fair Value, Measurements, Recurring [Member] | Corporate Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	7,318	12,106
Fair Value, Measurements, Recurring [Member] | US Treasury Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	4,020
Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	1,001	1,472
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	1,001	1,472
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] | 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] | US Treasury Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	0
Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	41,114	40,449
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	29,776	28,343
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	7,318	12,106
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | US Treasury Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	4,020
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] | 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] | US Treasury Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	$ 0

Fair Value of Financial Instr_4

Fair Value of Financial Instruments - Summary of Fair Value Maturities for Financial Asset (Detail) $ in Thousands	Sep. 30, 2019USD ($)
Fair Value Disclosures [Abstract]
Cash equivalents and marketable securities, Maturities by Period, Total	$ 42,115
Cash equivalents and marketable securities, Maturities by Period, Less than 1 year	40,618
Cash equivalents and marketable securities, Maturities by Period, 1-5 years	1,497
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 Instr_5

Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Fair Value Disclosures [Abstract]
Highly liquid marketable securities with original maturities	90 days or less
Cash equivalents include commercial paper and money market funds	$ 15,697	$ 25,543

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Revenue Recognition [Abstract]
Period of revenue from services	1 month
Subscription revenue term, minimum	1 year
Subscription revenue term, maximum	3 years
Aggregate amount of transaction price from contractual obligations	$ 15,770	$ 17,496

Revenue Recognition - Schedule

Revenue Recognition - Schedule of Disaggregated Revenue By Major Product Line in Single Reporting Segment (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Disaggregation Of Revenue [Line Items]
Total	$ 5,828	$ 4,914	$ 17,668	$ 15,965
Service [Member]
Disaggregation Of Revenue [Line Items]
Total	3,003	2,787	10,167	9,630
Subscription Digimarc Guardian [Member]
Disaggregation Of Revenue [Line Items]
Total	784	904	2,489	2,781
Subscription Digimarc Discover And Digimarc Barcode [Member]
Disaggregation Of Revenue [Line Items]
Total	1,489	628	3,435	1,773
License [Member]
Disaggregation Of Revenue [Line Items]
Total	$ 552	$ 595	$ 1,577	$ 1,781

Revenue Recognition - Schedul_2

Revenue Recognition - Schedule of Contract Liabilities from Contracts with Customers (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Revenue Recognition [Abstract]
Deferred revenue, current	$ 2,391	$ 3,226
Deferred revenue, long term	146	46
Total	$ 2,537	$ 3,272

Segment Information - Additiona

Segment Information - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2019Segment
Revenue, Major Customer [Line Items]
Number of reporting segment	1
Customer Concentration Risk [Member] | Minimum [Member] | Sales [Member]
Revenue, Major Customer [Line Items]
Percentage of revenue from major customers	10.00%

Segment Information - Geographi

Segment Information - Geographical Segment Revenue (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 5,828	$ 4,914	$ 17,668	$ 15,965
Domestic [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	2,136	1,387	5,225	4,127
International [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 3,692	$ 3,527	$ 12,443	$ 11,838

Segment Information - Customers

Segment Information - Customers Accounted for 10% or More of Revenue (Detail) - Customer Concentration Risk [Member] - Sales [Member]	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Central Banks [Member]
Revenue, Major Customer [Line Items]
Entity wide revenue major customers percentage	57.00%	62.00%	62.00%	65.00%
Walmart Inc. [Member]
Revenue, Major Customer [Line Items]
Entity wide revenue major customers percentage	14.00%

Segment Information - Custome_2

Segment Information - Customers Accounted for 10% or More of Revenue (Parenthetical) (Detail) - Customer Concentration Risk [Member] - Sales [Member]	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Minimum [Member]
Revenue, Major Customer [Line Items]
Entity wide revenue major customers percentage			10.00%
Walmart Inc. [Member]
Revenue, Major Customer [Line Items]
Entity wide revenue major customers percentage	14.00%
Walmart Inc. [Member] | Maximum [Member]
Revenue, Major Customer [Line Items]
Entity wide revenue major customers percentage		10.00%	10.00%	10.00%

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) shares in Thousands	9 Months Ended
	Sep. 30, 2019$ / sharesshares
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 | shares	1,276
Closing price per share of Digimarc common stock | $ / shares	$ 39.09
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 - Stoc

Stock-Based Compensation - Stock Option Valuation Assumptions (Detail) - Stock Options [Member]	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life (years)	3 years 2 months 12 days	4 years 6 months	3 years 2 months 12 days	4 years 6 months
Expected volatility	58.68%	57.11%	58.68%	57.11%
Risk-free interest rate	1.51%	2.77%	1.51%	2.77%
Expected dividend yield	0.00%	0.00%	0.00%	0.00%

Stock-Based Compensation - Allo

Stock-Based Compensation - Allocation of Stock-Based Compensation (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 2,041	$ 1,865	$ 6,094	$ 5,345
Capitalized to software and patent costs	44	37	134	130
Total stock-based compensation	2,085	1,902	6,228	5,475
Cost of Revenue [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	163	134	524	456
Sales and Marketing [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	459	442	1,467	1,198
Research, Development and Engineering [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	366	367	1,077	1,015
General and Administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	984	846	2,823	2,461
Intellectual Property [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 69	$ 76	$ 203	$ 215

Stock-Based Compensation - Unre

Stock-Based Compensation - Unrecognized Compensation Cost Related to Non-Vested Stock-Based Awards Granted (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Total unrecognized compensation costs	$ 15,473	$ 14,055

Stock-Based Compensation - Weig

Stock-Based Compensation - Weighted Average Period for Recognition of Unrecognized Compensation Cost for Stock Options and Restricted Stock (Detail)	9 Months Ended
	Sep. 30, 2019
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period	1 year 2 months 12 days
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period	1 year 5 months 12 days

Stock-Based Compensation - Reco

Stock-Based Compensation - Reconciliation of Outstanding Balance of Stock Options (Detail) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019USD ($)$ / sharesshares	Sep. 30, 2019USD ($)$ / sharesshares
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Options, Outstanding at beginning | shares	490	513
Options, Granted | shares	100	100
Options, Exercised | shares	0	(23)
Options, Forfeited or expired | shares	0	0
Options, Outstanding at ending | shares	590	590
Options, Exercisable at ending | shares	357	357
Options, Unvested at ending | shares	233	233
Weighted Average Exercise Price, Outstanding at beginning	$ 29.26	$ 28.52
Weighted Average Exercise Price, Granted	39.54	39.54
Weighted Average Exercise Price, Exercised	0	12.77
Weighted Average Exercise Price, Forfeited or expired	0	0
Weighted Average Exercise Price, Outstanding at ending	31	31
Weighted Average Exercise Price, Exercisable at ending	28.97	28.97
Weighted Average Exercise Price, Unvested at ending	34.10	34.10
Weighted Average Grant Date Fair Value, Outstanding at beginning	13.40	13.10
Weighted Average Grant Date Fair Value, Granted	16.40	16.40
Weighted Average Grant Date Fair Value, Exercised	0	6.81
Weighted Average Grant Date Fair Value, Forfeited or expired	0	0
Weighted Average Grant Date Fair Value, Outstanding at ending	$ 13.91	$ 13.91
Aggregate Intrinsic Value, Outstanding | $	$ 4,817	$ 4,817
Aggregate Intrinsic Value, Exercisable | $	3,608	3,608
Aggregate Intrinsic Value, Unvested | $	$ 1,209	$ 1,209

Stock-Based Compensation - Re_2

Stock-Based Compensation - Reconciliation of Unvested Balance of Restricted Stock (Detail) - Restricted Stock [Member] - $ / shares shares in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Number of Shares
Unvested, beginning balance	525	426
Granted	19	292
Vested	(55)	(183)
Forfeited	(1)	(47)
Unvested, ending balance	488	488
Weighted Average Grant Date Fair Value
Unvested, beginning balance	$ 26.61	$ 28.85
Granted	40.29	24.96
Vested	27.27	27.87
Forfeited	26.68	27.12
Unvested, ending balance	$ 27.06	$ 27.06

Stock-Based Compensation - Fair

Stock-Based Compensation - Fair Value of Restricted Stock Awards Vested (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of restricted stock awards vested	$ 2,195	$ 1,432	$ 7,427	$ 4,704

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Detail) - Common Stock [Member] - USD ($) $ / shares in Units, shares in Thousands	9 Months Ended
	Sep. 30, 2019	May 31, 2019
Issuance of common stock	336
Common stock price per share	$ 60.61
Cash proceeds from sale of common stock	$ 20,349,000
Sale of common stock, sales agent commissions	483,000
Stock issuance cost	251,000
Net cash proceeds from sale of common stock	$ 19,615,000
Maximum [Member]
Aggregate offering price of common stock		$ 30,000,000

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		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Basic Earnings (Loss) per Common Share:
Net loss	$ (7,761)	$ (8,342)	$ (24,157)	$ (24,492)
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	(7,761)	(8,342)	(24,157)	(24,492)
Undistributed earnings allocable to participating securities	0	0	0	0
Total undistributed loss	(7,761)	(8,342)	(24,157)	(24,492)
Loss to common shares — basic	$ (7,761)	$ (8,342)	$ (24,157)	$ (24,492)
Weighted average common shares outstanding — basic	11,924	11,394	11,693	11,333
Basic earnings (loss) per common share	$ (0.65)	$ (0.73)	$ (2.07)	$ (2.16)
Diluted Earnings (Loss) per Common Share:
Loss to common shares — basic	$ (7,761)	$ (8,342)	$ (24,157)	$ (24,492)
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	$ (7,761)	$ (8,342)	$ (24,157)	$ (24,492)
Weighted average common shares outstanding — basic	11,924	11,394	11,693	11,333
Dilutive effect of stock options	0	0	0	0
Weighted average common shares outstanding — diluted	11,924	11,394	11,693	11,333
Diluted earnings (loss) per common share	$ (0.65)	$ (0.73)	$ (2.07)	$ (2.16)

Earnings Per Common Share - Sch

Earnings Per Common Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Detail) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
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	95	0	39	0
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	375	100	375

Trade Accounts Receivable - Sum

Trade Accounts Receivable - Summary of Trade Accounts Receivable (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Accounts Receivable Net Current [Abstract]
Trade accounts receivable	$ 3,585	$ 3,903
Allowance for doubtful accounts	(15)	(15)
Trade accounts receivable, net	3,570	3,888
Unpaid deferred revenue included in trade accounts receivable	$ 857	$ 2,030

Trade Accounts Receivable - Add

Trade Accounts Receivable - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2019
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) - Accounts Receivable [Member] - Credit Concentration Risk [Member]	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Central Banks [Member]
Concentration Risk [Line Items]
Percentage of trade accounts receivable of major customers	52.00%	48.00%
Customer B [Member]
Concentration Risk [Line Items]
Percentage of trade accounts receivable of major customers	11.00%

Trade Accounts Receivable - C_2

Trade Accounts Receivable - Customers Accounted for 10% or More of Trade Accounts Receivable, Net (Parenthetical) (Detail) - Accounts Receivable [Member] - Credit Concentration Risk [Member]	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Minimum [Member]
Concentration Risk [Line Items]
Percentage of trade accounts receivable of major customers	10.00%
Customer B [Member]
Concentration Risk [Line Items]
Percentage of trade accounts receivable of major customers	11.00%
Customer B [Member] | Maximum [Member]
Concentration Risk [Line Items]
Percentage of trade accounts receivable of major customers		10.00%

Property and Equipment - Additi

Property and Equipment - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2019
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	Sep. 30, 2019	Dec. 31, 2018
Property Plant And Equipment [Abstract]
Office furniture and fixtures	$ 1,636	$ 1,626
Software	4,098	3,686
Equipment	4,939	4,814
Leasehold improvements	1,721	1,721
Gross property and equipment	12,394	11,847
Less accumulated depreciation and amortization	(8,800)	(7,892)
Property and equipment, net	$ 3,594	$ 3,955

Intangibles - Additional Inform

Intangibles - Additional Information (Detail) - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
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	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Capitalized patent costs	$ 9,254	$ 8,757
Intangible assets acquired:
Gross intangible assets	12,524	12,027
Accumulated amortization	(5,801)	(5,378)
Intangibles, net	$ 6,723	6,649
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

Leases - Additional Information

Leases - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended		9 Months Ended
	Jul. 31, 2015	Feb. 28, 2015	Sep. 30, 2019
Lessee Operating Lease [Line Items]
Remaining rent payments			$ 3,914
Beaverton, Oregon [Member]
Lessee Operating Lease [Line Items]
Existence of option to extend			true
Option to extend operating lease			extend the lease term through March 2024
Option to extend operating lease, month and year	2024-03
Remaining rent payments			$ 4,054
San Mateo, California [Member]
Lessee Operating Lease [Line Items]
Remaining rent payments			$ 234
Operating lease term, month and year		2020-03
Sublease term, month and year		2020-03

Leases - Additional Details of

Leases - Additional Details of Leases Presented in Balance Sheets (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Jan. 01, 2019
Leases [Abstract]
Right of use assets	$ 2,376	$ 2,709
Lease liabilities, current	678
Lease liabilities, long-term	$ 2,593
Weighted-average remaining life	4 years 6 months
Weighted-average discount rate	8.20%

Leases - Additional Details o_2

Leases - Additional Details of Operating Lease Expense (Detail) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Leases [Abstract]
Operating lease expense	$ 251	$ 772
Cash paid for operating leases	$ 322	$ 1,014

Leases - Reconciliation of Undi

Leases - Reconciliation of Undiscounted Cash Payment Obligations of Operating Lease Liability (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Jan. 01, 2019
Leases [Abstract]
2019 (remaining)	$ 259
2020	870
2021	838
2022	862
2023	867
Thereafter	218
Total lease payments	3,914
Imputed interest	(643)
Total minimum lease payments	$ 3,271	$ 3,792

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Income Tax Disclosure [Line Items]
Deferred tax assets, valuation allowance	$ 50,072		$ 50,072		$ 42,349
Effective tax rate			0.00%	0.00%
Change in valuation allowance			$ 7,723
ASU No. 2016-09 [Member]
Income Tax Disclosure [Line Items]
Excess tax benefits recognized in the provision for income taxes offset by valuation allowance	$ 707	$ 51	$ 2,751	$ 762