Slide 1: Q3 2024 Earnings
Q3 2024 Earnings November 6, 2024
Slide 2: Safe Harbor
Safe Harbor This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this presentation that do not relate to matters of historical fact should be considered forward-looking statements, including wi
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: Q3 Financial Highlights
Q3 Financial Highlights ▪ Q3 revenue of $133M, up 2% year over year (Q3 2023 revenue was $130M, including $5.3M from AutoSense and related imaging solutions) ▪ Total GAAP operating expenses, including cost of revenue, decreased 6% year over year primarily due to the streamlining of our business ▪ No
Slide 5: Markets and Product Lines
Growth Solutions Core Solutions Media Platform TiVo OS (Connected TV Advertising) Smart TV Middleware 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 Hardwar
Slide 6: Monetizable Footprint Goal of 10M Devices/Households + 10M Cars
Monetizable Footprint = Goal1 of 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
Slide 7: Media Platform
Media Platform TiVo OS footprint approaching one million active Smart TVs Smart TVs “Powered by TiVo” are now generally available across Europe from Panasonic, Argos, Sharp and numerous Vestel brands With partner activity ramping, we remain on track to achieve two million Smart TVs by year end 7 © 2
Slide 8: Connected Car
Connected Car Awarded second DTS AutoStage with Video Win with Japanese car OEM for deployments expected next year AutoStage now actively integrated into more than 8 million vehicles across 146 countries, with more than 5 million vehicles in North America utilizing both HD Radio and AutoStage Signed
Slide 9: Pay TV
Pay TV Ended Q3 2024 with over 2.4M Video- over-Broadband (IPTV) subscriber households, continuing the trend of consecutive quarters of double-digit subscriber growth Executed agreement for new Broadband TV solution with NCTC, providing a low- cost OTT content bundle for operators Expanded TiVo Broa
Slide 10: Consumer Electronics
Consumer Electronics Launched DTS Clear Dialogue, a new AI-based audio processing solution to improve dialogue intelligibility for TVs At the IFA Berlin tradeshow, DTS Clear Dialogue won two Best of IFA awards Signed multiple DTS codec renewals, including with existing customers Vestel, Honor, and M
Slide 11: Announced sale to Amazon.com Services LLC
Announced sale to Amazon.com Services LLC on August 19, 2024 for gross proceeds of $80 million in cash Transaction closed October 2, 2024 With additional tax planning, net proceeds now expected to be ~$60 million 11 © 2024 Xperi Inc. All rights reserved.
Slide 12: 2024 Key Growth Initiative Milestones
2024 Key Growth Initiative Milestones Media Platform Pay TV Connected Car TiVo OS Video-Over-Broadband AutoStage ➢ TiVo OS in all 5 major * European countries + U.S. ➢ Drive >10 additional TiVo ➢ 3 Additional AutoStage market * Broadband wins design wins... ➢ Sign at least 1 additional ➢ End year wi
Slide 13: Q3 2024 Revenue Breakdown
Q3 2024 Revenue Breakdown Y/Y Excl. Y/Y % Excl. AutoSense/ AutoSense/ Market Y/Y Y/Y % Q3 2023 Q3 2024 Imaging Imaging ($ in thousands) Change Change from Q3 from Q3 2023 2023 Pay TV 60,319 81,676 21,357 +35% 21,357 +35% - Core Pay TV1 43,155 61,079 17,924 +42% 17,924 +42% - IPTV 17,164 20,597 3,433
Slide 14: Q3 YTD 2024 Revenue Breakdown
Q3 YTD 2024 Revenue Breakdown Y/Y Excl. Y/Y % Excl. AutoSense/ AutoSense/ Market Q1-Q3 Q1-Q3 Y/Y Y/Y % Imaging Imaging ($ in thousands) 2023 2024 Change Change from Q1-Q3 from Q1-Q3 2023 2023 Pay TV 178,644 199,234 20,590 +12% 20,590 +12% - Core Pay TV1 135,292 141,489 6,197 +5% 6,197 +5% - IPTV 43,
Slide 15: Q3 2024 Summary Financial Results
Q3 2024 Summary Financial Results ($ in thousands, except per share amounts) Q3 2024 GAAP Q3 2024 Non-GAAP3 Revenue 132,891 132,891 Cost of revenue1 27,484 26,120 Adjusted operating expense2 123,962 82,251 Operating income/(loss) (18,555) 24,520 Adjusted EBITDA n/a 31,440 Other non-op expense/(incom
Slide 16: Financial Outlook for FY 2024
Financial Outlook for FY 2024 – as of November 6, 2024 The Company updates the outlook ranges previously provided as follows: Category Original Outlook Revised Outlook Revenue ($ in millions) $500 to $530 $490 to $505 Adjusted EBITDA Margin1, 2 12% to 14% 14% to 16% Additional Information Original O
Slide 17: 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 17 © 2023 Xperi. All rights reserved.
Slide 18: Q&A
Q&A
Slide 19: Thank You
Thank You
Slide 20: Reconciliation Tables
Reconciliation Tables
Slide 21: 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, including Non-GAAP Operating Income/(Loss), Non-GAAP Net Income/(Loss) attrib
Slide 22: GAAP to Non-GAAP Net (Loss) Income Reconciliation
GAAP to Non-GAAP Net (Loss) Income Reconciliation XPERI INC. GAAP TO NON-GAAP RECONCILIATIONS (in thousands, except per share amounts) (unaudited) Three Months Ended September 30, 2024 2023 Reconciliation of net income (loss) attributable to the Company: GAAP net loss attributable to the Company $ (
Slide 23: GAAP to Non-GAAP (Loss) Income per Share Reconciliation
GAAP to Non-GAAP (Loss) Income per Share Reconciliation XPERI INC. GAAP TO NON-GAAP RECONCILIATIONS (in thousands, except per share amounts) (unaudited) Three Months Ended September 30, 2024 2023 Reconciliation of net income (loss) per share attributable to the Company: GAAP net loss attributable to
Slide 24: Operating (Loss) Income Reconciliation
Operating (Loss) Income Reconciliation XPERI INC. GAAP TO NON-GAAP RECONCILIATIONS (in thousands) (unaudited) Three Months Ended September 30, 2024 2023 GAAP operating loss $ (18,555) $ (31,051) Adjustments to GAAP operating loss: Stock-based compensation 15,249 17,622 Amortization of intangible ass
Slide 25: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation XPERI INC. GAAP TO NON-GAAP RECONCILIATIONS (in thousands) (unaudited) Three Months Ended September 30, 2024 2023 GAAP net loss $ (19,831) $ (42,072) Adjustments to GAAP net loss: Interest expense 1,123 770 Provision for income taxes 2,899 9,685 Stock-based compensatio
Slide 26: 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 September 30, 2024 2023 Total operating expenses $ 151,446 $ 161,441 Less: Cost of revenue, excluding depreciation and amortization
Slide 27: Supplemental Disclosure on Pay TV
Supplemental Disclosure on Pay TV Pay TV Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 ($ in thousands) Pay TV 60,294 58,031 60,319 66,064 56,806 60,752 81,676 - Core Pay TV1 47,197 44,940 43,155 49,391 38,642 41,768 61,079 - IPTV 13,097 13,091 17,164 16,673 18,164 18,984 20,597 1 Includes