Slide 1: Q4 and Full Year 2023 Earnings
Q4 and Full Year 2023 Earnings February 28, 2024
Slide 2: Safe Harbor
Safe Harbor This presentation contains "forward-looking statements" within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on in
Slide 3: Mission, Vision, Markets, Solutions
MISSION VISION MARKETS SOLUTIONS WHAT WHY WHERE WHO Xperi invents, Smarter technology = Media Platform TiVo® develops, and delivers Extraordinary experiences Connected Car DTS® technologies that enable Pay TV HD Radio extraordinary experiences Consumer Electronics IMAX® Enhanced1 1 IMAX® Enhanced is
Slide 4: Q4 Financial Highlights
Q4 Financial Highlights ▪ Q4 revenue of $137M, up 1% year over year ▪ Total GAAP operating expenses, including cost of revenue, decreased 62% primarily due to goodwill impairment in the prior year ▪ Non-GAAP* operating expenses, excluding cost of revenue, decreased 6% ▪ GAAP net loss attributable to
Slide 5: AutoSense and related imaging business sale to Tobii
AutoSense and related imaging business sale to Completed January 31, 2024 5 © 2024 Xperi Inc. All rights reserved.
Slide 6: Markets and Product Lines
Growth Solutions Core Solutions Media Platform TiVo OS (Connected TV Advertising) Markets and Product Lines HD Radio Connected Car DTS AutoStage (in-cabin entertainment) Music Metadata Search & Discovery Pay TV Video-Over-Broadband (IPTV Classic Guides streaming) Consumer Hardware & Subs Consumer DT
Slide 7: Execution Expected to Drive Meaningful Growth – Year-End '23 Update
Execution Expected to Drive Meaningful Growth – Year-End ‘23 Update Connected TV / Video-over- DTS AutoStage Media Platform Broadband (IPTV) FY23 2 Yrs FY23 2 Yrs FY23 2 Yrs Active Footprint <1M >7M 1.9M >2.8M ~5M >10M Streaming Hours 140M >5B 3.0B ~5.4B - - ARPU <$10 $20-$30 $32 ~$40 ~$1 >$2 Revenu
Slide 8: Monetizable Footprint = ~10M Devices/Households + ~10M Cars Exiting '25
Monetizable Footprint = ~10M Devices/Households + ~10M Cars Exiting ‘25 Combining Home + Car illustrates the breadth of our expected monetization reach HOME CAR Connected TV / Video-over- DTS AutoStage Media Platform Broadband (IPTV) FY23 2 Yrs FY23 2 Yrs FY23 2 Yrs Active Footprint <1M >7M 1.9M >2.
Slide 9: Media Platform
Media Platform Skyworth, a Top 10 global Smart TV OEM, to integrate TiVo OS into 2024 Smart TV lineup Vestel shipping TVs Powered by TiVo into seven European countries, including the U.K. and Germany, and is expected to continue expanding into additional European countries under more than a dozen br
Slide 10: Connected Car
Connected Car BMW deploying DTS AutoStage Video Service across select new cars in production and certain late-model vehicles already on the road via an over-the-air update BMW plans to expand AutoStage Video rollout to their Mini brand Won three new DTS AutoStage contracts with major Asian and Europ
Slide 11: Pay TV
Pay TV Ended 2023 with 1.9M Video- over-Broadband (IPTV) subscribers generating $60M in revenue Launched TiVo Video-over- Broadband service across multiple new service providers, including Hawaii Telecom and EverFast Fiber Launched TiVo Broadband, a streaming-based service for broadband-only custome
Slide 12: Consumer Electronics
Consumer Electronics Signed several multi-year IMAX® Enhanced1 license agreements with major CE manufacturers, including Hisense and Xgimi Signed a new DTS:X decoder agreement with major U.S. retailer for their house brand of certain consumer electronics products Signed a major DTS:X decoder renewal
Slide 13: Advanced compression technology relevant to LLM market
Advanced compression technology highly relevant to Large Language Model (LLM) market deployment at the edge Hired Centerview Partners LLC to explore strategic alternatives for this business 13 © 2024 Xperi Inc. All rights reserved.
Slide 14: 2024 Key Growth Initiative Milestones
2024 Key Growth Initiative Milestones Media Platform Pay TV Connected Car TiVo OS Video-Over-Broadband AutoStage ➢ TiVo OS in all 5 major European countries + U.S. ➢ Drive >10 additional TiVo ➢ 3 Additional AutoStage market Broadband wins design wins... ➢ Sign at least 1 additional TV ➢ End year wit
Slide 15: Q4 2023 Revenue Breakdown
Q4 2023 Revenue Breakdown Y/Y Market ($ in thousands) Q4 2022 Q4 2023 Change Y/Y Change Pay TV 66,553 66,064 (489) -1% Consumer Electronics 27,251 31,606 4,355 +16% Connected Car 23,403 27,449 4,046 +17% Media Platform 18,324 12,113 (6,211) -34% TOTAL 135,531 137,233 1,701 +1% 15 © 2024 Xperi Inc. A
Slide 16: Full Year 2023 Revenue Breakdown
Full Year 2023 Revenue Breakdown Market ($ in thousands) FY 2022 FY 2023 Y/Y Change Y/Y Change Pay TV 249,457 244,708 (4,749) -2% - Core Pay TV* 205,899 184,683 (21,216) -10% - Video-over-Broadband (IPTV) 43,558 60,025 16,467 +38% Consumer Electronics 128,395 132,355 3,960 +3% Connected Car 84,201 9
Slide 17: Q4 2023 Summary Financial Results
Q4 2023 Summary Financial Results ($ in thousands, except per share amounts) Q4 2023 GAAP Q4 2023 Non-GAAP3 Revenue 137,233 137,233 Cost of revenue1 33,567 32,203 Adjusted operating expense2 133,469 97,896 Operating income/(loss) (29,803) 7,134 Adjusted EBITDA n/a 13,393 Other non-op expense/(income
Slide 18: Trended FY23 Revenue
Trended FY23 Revenue ($ in thousands) As Reported Q1'23 Q2'23 Q3'23 Q4'23 FY2023 Pay TV 60,294 58,031 60,319 66,064 244,708 Consumer Electronics 36,735 31,716 32,298 31,606 132,355 Connected Car 20,548 23,474 23,393 27,449 94,864 Media Platforms 9,262 13,651 14,380 12,114 49,407 Total Revenue 126,83
Slide 19: Financial Outlook for FY 2024
Financial Outlook for FY 2024 The Company’s fiscal 2024 outlook ranges as of February 28, 2024, are as follows: Category ($ in millions) GAAP Outlook Non-GAAP Outlook Revenue $500 to $530 $500 to $530 Adjusted EBITDA Margin1, 2 n/a 12% to 14% Additional Information Operating Cash Flow $20M to $30M N
Slide 20: We create extraordinary experiences at home, in the car, and on the go
Connected Car We create extraordinary experiences at home, in the car, and on the go Consumer Pay TV Electronics for millions of consumers around the world. Media Platform 20 © 2023 Xperi. All rights reserved.
Slide 21: Thank You
Thank You
Slide 22: Reconciliation Tables
Reconciliation Tables
Slide 23: Non-GAAP Financial Measures
Non-GAAP Financial Measures In addition to disclosing financial results calculated in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"), the Company’s presentation contains non-GAAP financial measures adjusted for either one-time or ongoing non- cash acquired intangibles amortiz
Slide 24: GAAP to Non-GAAP Net Loss Reconciliation
GAAP to Non-GAAP Net Loss Reconciliation XPERI INC. GAAP TO NON-GAAP RECONCILIATIONS (in thousands, except per share amounts) (unaudited) Net income attributable to the Company: Three Months Ended Year Ended December 31, December 31, 2023 2022 2023 GAAP net loss attributable to the Company $ (24,792
Slide 25: GAAP to Non-GAAP Loss per Share Reconciliation
GAAP to Non-GAAP Loss per Share Reconciliation XPERI INC. GAAP TO NON-GAAP RECONCILIATIONS (in thousands, except per share amounts) (unaudited) Net income per share attributable to the Company: Three Months Ended Year Ended December 31, December 31, 2023 2022 2023 GAAP net loss per share attributabl
Slide 26: Operating Income/(Loss) Reconciliation
Operating Income/(Loss) Reconciliation XPERI INC. GAAP TO NON-GAAP RECONCILIATIONS (in thousands) (unaudited) Three Months Ended Year Ended December 31, December 31, 2023 2022 2023 GAAP operating loss $ (29,803) $ (299,073) $ (129,637) Adjustments to GAAP operating loss: Stock-based compensation 17,
Slide 27: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation XPERI INC. GAAP TO NON-GAAP RECONCILIATIONS (in thousands) (unaudited) Three Months Ended Year Ended December 31, December 31, 2023 2022 2023 GAAP net loss $ (25,313) $ (298,046) $ (139,688) Adjustments to GAAP net loss: Interest expense 767 839 3,104 (Benefit from) pr
Slide 28: Adjusted Operating Expense Reconciliation
Adjusted Operating Expense Reconciliation XPERI INC. GAAP TO NON-GAAP RECONCILIATIONS (in thousands) (unaudited) Non-GAAP adjusted operating expense Three Months Ended December 31, 2023 2022 Total operating expenses $ 167,036 $ 434,604 Less: Cost of revenue, excluding depreciation and amortization o