Slide 1: 14th Annual East Coast IDEAS Investor Conference
14 Annual East Coast IDEAS Investor th Conference June 12, 2024 Rich Brezski, CFO
Slide 2: Disclaimers
Disclaimers Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 21E of the Exchange Act. Such statements include information regarding our current beliefs, plans and expectations, including, without limitation, the matters set forth below. W
Slide 3: Why IDCC?
Large Market Opportunity $650M+ recurring revenue target in device markets. Expanding into greenfield of video streaming and cloud services opportunities Deep Industry Expertise Five decades of pioneering wireless and video innovation. Highest concentration of inventors Why Differentiated Patent Por
Slide 4: InterDigital Business Model
InterDigital Business Model We are a foundational R&D company. We share our innovation through standard process and monetize our technology through IP licensing. Patent Licensing Portfolio Research & Product Innovation $ Implementer Standard Technology Development Sharing ©2024 InterDigital, Inc. Al
Slide 5: Over Five Decades of Wireless & Video Innovation
Over Five Decades of Wireless & Video Innovation Of our engineers… Pioneering research ~90% integral to the evolution of cellular wireless and video innovation since 1972 hold advanced degrees We reinvest ~half our recurring revenue into research and portfolio ~90% ~Over half are inventors developme
Slide 6: Management Team of Industry Veterans
Management Team of Industry Veterans Liren Chen Richard Brezski Eeva Hakoranta Rajesh Pankaj President & CEO EVP, CFO EVP, CLO EVP, CTO Previously SVP, Global More than 20 years at Previously SVP, Head of IP Previously SVP & Head of Head of IP; Qualcomm InterDigital, CFO since and Litigation & GC; N
Slide 7: >100 Leadership Positions in Wireless & Video Standards
>100 Leadership Positions in Wireless & Video Standards Cellular & WiFi Standards RAN2 CT ETSI Board RIS ISG PDL SAI Steering Committee SA Board of AIML Standing Internet WG Chair Vice Chair Member Chair Vice Chair Vice Chair Board Member Governers Committee Vice Chair ISAC ISG Chair Policy & Chair
Slide 8: Recognized Global Innovation Leader
Recognized Global Innovation Leader For the third year in a row, LexisNexis recognized InterDigital amongst the World’s 100 Most Innovative Businesses. Innovation Momentum 2024: The Global Top 100, “represents the world’s leading patent owners with the highest innovation momentum.” ©2024 InterDigita
Slide 9: Recognized Global Innovation Leader
Recognized Global Innovation Leader InterDigital was among the top 25 patent filers with the European Patent Office (EPO) in 2023 Innovation momentum drove 40% YoY increase in patent filings with the EPO *Boxes present the proportion of direct European applications vs international (PCT) application
Slide 10: Increasingly Diverse Patent Portfolio
Increasingly Diverse Patent Portfolio Our patent portfolio grew >60% between 2017 & 2023 with the addition of video & DTV related technologies and continuing growth of wireless assets 2017 2023 ~19,000 Assets >30,000 Assets Wireless Video Implementation DTV Broadcast & Home Network ©2024 InterDigita
Slide 11: InterDigital Ranks Among the Highest in Patent Quality for 5G and Video Codec Patents
InterDigital Ranks Among the Highest in Patent Quality for 5G and Video Codec Patents1 Average Competitive Impact 5G Patent Holders Video Codec Patent Holders 0 4 8 12 0 2 4 6 8 InterDigital Company #1 Company #1 Company # 2 Company #2 InterDigital Company #3 Company # 4 Company #4 Company # 5 Compa
Slide 12: Our Licensing Principles
Our Licensing Principles Well-established Vast majority of Patents repeatedly Past enforcement licensing programs agreements found to be valid, actions resulted in rooted in reached through essential to license agreements transparency bilateral standards and and fair practices negotiations infringed
Slide 13: Target: $650M ARR; 60% Adj EBITDA Margin
Target: $650M ARR; 60% Adj EBITDA Margin + Additional opportunity from Streaming and Cloud Services MARKETS SMARTPHONES CE, IoT/AUTO STREAMING & CLOUD SERVICES $500M $150M+ Greenfield Opportunity ~$500 Billion TAMb Revenue Per Yeara Revenue Per Yeara PORTFOLIO >30,000 PATENT ASSETS RESEARCH WIRELESS
Slide 14: Recent Progress Toward our Target
Recent Progress Toward our Target Over 35 licenses signed in past 3 years driving almost $2.7B of contract value 2021 2022 2023 2024 #1 Chinese Licensee Largest license in Smartphone vendor since 1995a company history #1 Television Top-10 TV vendor Major CE/IoT License Court wins result in vendor ce
Slide 15: Revenue Growth
Revenue Growth Double-digit CAGR in both Smartphone and CE, IoT/Auto licensing programs (’19-’23) 17% growth expected in 2024 assuming the midpoint of previously-issued guidance* $800 $700 $645M $600 $550M $500 $458M $81M $425M $400 $359M $104M $68M $319M $24M $300 15% CAGR $40M $200 $267M $323M
Slide 16: Revenue Growth and Opex Leverage Drive Profit, Margins and Robust Return of Capital
Revenue Growth and Opex Leverage Drive Profit, Margins and Robust Return of Capital Revenue Non-GAAP EPSa 15% CAGR 4X growth $9.23 $550M $425M $458M $319M $359M $5.08 $3.73 $2.32 $2.27 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 $500M Adjusted EBITDAa 70% $2,000M Return of Capital 63% > 2.5X g
Slide 17: Recent Business Highlights
Q1 Financial Highlights Revenue of $263.5 million above high end of guidance CE, IoT/Auto revenue a record high at $182.5 million Adjusted EBITDAa of $130.4 million at high end of guidance Non-GAAP EPSa of $3.58 at high end of guidance Recent Return of capital of $39.2 million Reaffirmed
Slide 18: Appendix
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Slide 19: Non-GAAP Reconciliation
Non-GAAP Reconciliation For The Year Ended December 31, Three Months Ended, Outlook Full Year 2019 2020 2021 2022 2023 Q1'24 Q1'23 Q1'24 Q2'24 (In millions) 2024 Net income attributable to InterDigital, Inc. $ 21 $ 45 $ 55 $ 94 $ 214 $ 82 $ 105 $68 - 83 $5.5 - 8.0 $140 - 175 Net loss attributable to
Slide 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation Full Year Three months ended, Outlook 2019 2020 2021 2022 2023 Q1'24 Q1'23 Q1'24 Q2'24 Full Year 2024 (In millions, except per share data) Net income attributable to InterDigital, Inc. $ 21 $ 45 $ 55 $ 94 $ 214 $ 82 $ 105 $68 - 83 $5.5 - 8.0 $140 - 175 Share-based compensatio
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted EBITDA and Adjusted EBITDA margin are supplemental non-GAAP financial measures that InterDigital believes provide investors with important insight into the Company's ongoing business performance. InterDigital defines Adjusted EBITDA as net income attributable to