Slide 1: Fourth Quarter and Full Year 2023 Results
Fourth Quarter and Full Year 2023 Results February 15, 2024
Slide 2: Disclaimers: Forward-Looking Statements
2/15/2024©2024 InterDigital, Inc. All Rights Reserved. 2 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, incl
Slide 3: Q4'23 Highlights
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Slide 4: Recent Business Highlights and Q4 Financial Highlights
Recent Business Highlights Other Business Highlights ✓ Completed new license agreement with Samsung covering digital TVs and computer monitors ✓ Renewed license agreements with Panasonic ✓ Awarded injunction against Oppo, Realme and OnePlus by a German court ✓ Hired Ken Kaskoun as Chief Growth Offic
Slide 5: Q4'23 Results
2/15/2024©2024 InterDigital, Inc. All Rights Reserved. 5 Q4’23 Results aNon-GAAP Measure / Please see appendix for GAAP to Non-GAAP reconciliations $117M $106M Q4'22 Q4'23 $65M $53M 0 20 40 60 80 100 120 Q4'22 Q4'23 Revenue <10%> Adj. EBITDAa <18%> Non-GAAP Diluted EPSa <13%> $1.62 $1.41 $0.00 $0.20
Slide 6: Q4'23 Revenue By Program
2/15/2024©2024 InterDigital, Inc. All Rights Reserved. 6 Q4’23 Revenue By Program $89M $88M 0 10 20 30 40 50 60 70 80 90 Q4'22 Q4'23 Recurring Catch Up $28M $17M 0 5 10 15 20 25 30 35 40 45 50 Q4'22 Q4'23 Recurring Catch Up Smartphone <1%> CE, IoT/Auto <39%>
Slide 7: Financial Results vs. Guidance
2/15/2024©2024 InterDigital, Inc. All Rights Reserved. 7 Financial Results vs. Guidance Quarterly Results and Guidance Q4’23 Guidance Q4’23 Results Revenue $102M - $106M $105.5M Operating Expenses $77M - $79M $80.2M Net Income $18M - $21M $39.1M Adjusted EBITDAa $49M - $52M $53.3M Diluted earnings p
Slide 8: FY23 Highlights
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Slide 9: FY23 Business Highlights
FY23 Business Highlights Leadership ✓ Hired Skip Maloney as new Chief People Officer ✓ Samir Armaly joined the Board of Directors Licensing ✓ Entered into 8 new license agreements, including cellular and HEVC licenses with Lenovo, cellular agreement with TCL and two agreements with Panasonic ✓ Renew
Slide 10: Full Year 2023 Results
2/15/2024©2024 InterDigital, Inc. All Rights Reserved. 10 $458M $550M FY22 FY23 Revenue +20% Full Year 2023 Results $255M $345M FY22 FY23 Adj.EBITDAa +36% aNon-GAAP Measure / Please see appendix for GAAP to Non-GAAP reconciliations $5.08 $9.23 FY22 FY23 Non-GAAP Diluted EPSa +82%
Slide 11: Full Year 2023 Revenue By Program
2/15/2024©2024 InterDigital, Inc. All Rights Reserved. 11 Full Year 2023 Revenue By Program $353M $467M FY22 FY23 Smartphone +32% Recurring Catch Up $104M $81M $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 FY22 FY23 CE, IoT/Auto <22%> Recurring Catch Up
Slide 12: FY24 Q1 and Full Year Guidance
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Slide 13: Guidance As of February 15, 2024
2/15/2024©2024 InterDigital, Inc. All Rights Reserved. 13 Guidance As of February 15, 2024 Quarterly Results and Guidance Q1’24 Guidance FY24 Guidance Revenue $245M - $255M $620M - $670M Adjusted EBITDAa $116M - $131M $310M - $345M Diluted earnings per shareb $2.40 - $2.95 $4.95 - $6.15 Non-GAAP dil
Slide 14: Background on InterDigital
Background on InterDigital As of February 15, 2024
Slide 15: Why IDCC?
Why IDCC? Strong Financial Performance Double-digit revenue growth, exceptional margins, robust return of capital Large Market Opportunity $650M+ recurring revenue target in device markets. Expanding into greenfield of video streaming and cloud services opportunities Licensing Momentum Experienced l
Slide 16: 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. 2/15/2024©2024 InterDigital, Inc. All Rights Reserved. 16
Slide 17: Pioneering research in wireless and video innovation since 1972
Pioneering research integral to the evolution of cellular wireless and video innovation since 1972 We reinvest ~half our recurring revenue into research and portfolio development Over Five Decades of Wireless & Video Innovation 2/15/2024©2024 InterDigital, Inc. All Rights Reserved. 17 Over half of o
Slide 18: Management Team of Industry Veterans
Management Team of Industry Veterans Liren Chen President & CEO Previously SVP, Global Head of IP; Qualcomm Inc. Richard Brezski EVP, CFO More than 20 years at InterDigital, CFO since 2012 Eeva Hakoranta EVP, CLO Previously SVP, Head of IP and Litigation & GC; Nokia Technologies Rajesh Pankaj EVP, C
Slide 19: >100 Leadership Positions in Wireless & Video Standards
>100 Leadership Positions in Wireless & Video Standards 2/15/2024©2024 InterDigital, Inc. All Rights Reserved. 19 JVT Cellular & WiFi Standards Video Standards RAN2 Chair CT Vice Chair SAI Vice Chair PDL Vice Chair ETSI Board Member ISAC ISG Chair RIS ISG Chair Steering Committee Board Member SA Boa
Slide 20: Recognized Global Innovation Leader
2/15/2024©2024 InterDigital, Inc. All Rights Reserved. 20 Recognized Global Innovation Leader For the 2nd year in a row, LexisNexis recognized InterDigital amongst the World’s 100 Most Innovative Businesses. Innovation Momentum 2023: The Global Top 100, “represents the world’s leading patent owners
Slide 21: Increasingly Diverse Patent Portfolio
Wireless Video Implementation DTV Broadcast & Home Network 2017 ~19,000 Assets 2023 >30,000 Assets 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 2/15/2024©2024 In
Slide 22: Highest in Patent Quality for 5G and Video Codec Patents
Average Competitive Impact InterDigital Ranks Among the Highest in Patent Quality for 5G and Video Codec Patents1 2/15/2024©2024 InterDigital, Inc. All Rights Reserved. 22 0 4 8 12 InterDigital Company #1 Company #2 Company #3 Company #4 Company #5 Company #6 Company #7 Company #8 Company #9 0 2 4 6
Slide 23: Well-established licensing programs and fair licensing practices
We have well-established licensing programs and lead the industry in transparency and fair licensing practices Our Licensing Principles We complete the vast majority of our licensing agreements through bilateral negotiations On the rare occasions we had to enforce our rights in court, our patents ha
Slide 24: Target: $650M ARR; 60% Adj EBITDA Margin
2/15/2024©2024 InterDigital, Inc. All Rights Reserved. 24 Target: $650M ARR; 60% Adj EBITDA Margin + Additional opportunity from Streaming and Cloud Services ARTIFICIAL INTELLIGENCE $500M Revenue Per Yeara $150M+ Greenfield Opportunity ~$500 Billion TAMb SMARTPHONES CE, IoT/AUTO STREAMING & CLOUD SE
Slide 25: Recent Progress Toward our Target
Recent Progress Toward our Target Over 30 licenses signed in past 3 years driving > $2.5B of contract value; 2/15/2024©2024 InterDigital, Inc. All Rights Reserved. 25 2021 a Currently in binding arbitration to set license rate 2024 #1 Chinese Smartphone vendor 2022 2023 Top-10 TV vendor Largest lice
Slide 26: Revenue Growth
Revenue Growth Double-digit growth in both Smartphone and CE, IoT/Auto licensing programs $40M $24M $68M $104M $81M $267M 2019 $323M 2020 $352M 2021 $353M 2022 $467M 2023 $319M $359M $425M $458M $550M Smartphone CE, IoT/Auto Other 2/15/2024©2024 InterDigital, Inc. All Rights Reserved. 26 19% CAGR 15
Slide 27: Revenue Growth and Cost Control drive Expanding Margins
$131M $155M $208M $255M $345M 41% 43% 49% 56% 63% 0% 10% 20% 30% 40% 50% 60% 70% $0M $100M $200M $300M $400M $500M 2019 2020 2021 2022 2023 Revenue Growth and Cost Control drive Expanding Margins 2/15/2024 27 $319M $359M $425M $458M $550M 2019 2020 2021 2022 2023 $281M $304M $354M $307M $328M 2019 2
Slide 28: Robust Return of Capital
Robust Return of Capital Cash Returned to Shareholders ~$852M since 2019 Stock Buyback ~$641M in share repurchases since 2019 ~24% net reduction in basic share count Dividends ~$211M in dividends paid since 2019 14% increase declared in Sep ‘23 $43M 2019 2020 2021 2022 2023 $241M $73M $117M $379M Di
Slide 29: Appendix
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Slide 30: Non-GAAP Reconciliation
2/15/2024©2024 InterDigital, Inc. All Rights Reserved. 30 Non-GAAP Reconciliation (In millions) 2019 2020 2021 2022 2023 Q4'23 Q4'22 Q4'23 Q1'24 Full Year 2024 Net income (loss) attributable to InterDigital, Inc. 21$ 45$ 55$ 94$ 214$ 39$ 32$ $18 - 21 $68 - 83 $140 - 175 Net loss attributable to non-
Slide 31: Non-GAAP Reconciliation (per share data)
2/15/2024©2024 InterDigital, Inc. All Rights Reserved. 31 Non-GAAP Reconciliation (In millions, except per share data) 2019 2020 2021 2022 2023 Q4'23 Q4'22 Q4'23 Q1'24 Full Year 2024 Net income (loss) attributable to InterDigital, Inc. 21$ 45$ 55$ 94$ 214$ 39$ 32$ $18 - 21 $68 - 83 $140 - 175 Share-
Slide 32: Non-GAAP Financial Measures
2/15/2024©2024 InterDigital, Inc. All Rights Reserved. 32 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. InterDigi