Slide 1: Q2 2023 Earnings
Q2 2023 Earnings August 9, 2023
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, Solutions, Brands
MISSION VISION SOLUTIONS BRANDS 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: Q2 2023 Financial Highlights
Q2 2023 Financial Highlights Fiscal Q2 revenue of $127M, up 1% from the year ago period. Excluding Q2'22 CE one-time revenue benefit, year-over-year growth was greater than 10%. GAAP Gross Margin and Non-GAAP Gross Margin of 76%, a decline of approx. 300bps from the prior year primarily due to a
Slide 5: Markets and Product Lines
Growth Solutions Core Solutions TiVo OS (Connected TV Advertising) Media Platform Markets and Product Lines DTS AutoStage (in-cabin entertainment) HD Radio Connected Car DTS AutoSense (in-cabin monitoring) Music Metadata IPTV Streaming (Video Over Broadband) Search & Discovery Pay TV Classic Guides
Slide 6: Media Platform
Media Platform Announced Sharp as second TV OEM with plans to ship TVs starting in Europe next year Signed third Smart TV OEM to integrate TiVo OS Expect to have TV distribution in both Europe and U.S. next year Vestel plans to ship TVs Powered by TiVo this holiday season Sony to deploy our content
Slide 7: Connected Car
Connected Car DTS AutoStage now deployed in over 4M cars from five automotive brands globally Signed over 4,000 radio stations to broadcast additional metadata to enhance the AutoStage experience Won new DTS AutoSense program with Top-3 car manufacturer HD Radio launched in >10 new models this quart
Slide 8: Pay TV
Pay TV Continued double-digit IPTV subscriber growth; signed seven new broadband service providers across the Americas TiVo+ is now available across 25 additional video service providers in the quarter Search-and-recommendation technology deployed by a Top-5 U.S. video service provider, reaching mil
Slide 9: Consumer Electronics
Consumer Electronics Signed several multi-year license renewals for our DTS Audio and Play-Fi Wireless solutions Celebrated 30 years of immersive audio experiences in June 9 © 2023 Xperi Inc. All rights reserved.
Slide 10: Expect first revenue this year
Expect first revenue this year Advanced compression technology highly relevant to large language models Conversations with strategic players are ongoing 10 © 2023 Xperi Inc. All rights reserved.
Slide 11: © 2023 Xperi Inc. All rights reserved.
11 © 2023 Xperi Inc. All rights reserved.
Slide 12: Q2 2023 Revenue Breakdown
Q2 2023 Revenue Breakdown Y/Y Market ($ in thousands) Q2 2022 Q2 2023 Change Y/Y Change Pay TV 60,371 58,031 (2,340) -4% Consumer Electronics 39,493 31,716 (7,777) -20% Connected Car 20,855 23,474 2,619 +13% Media Platform 5,484 13,651 8,167 +149% TOTAL 126,203 126,872 669 +1% 12 © 2023 Xperi Inc. A
Slide 13: First-Half 2023 Revenue Breakdown
First-Half 2023 Revenue Breakdown Market ($ in Y/Y Q1’22 Q2’22 1H’22 Q1’23 Q2’23 1H’23 thousands) Change Pay TV 64,154 60,371 124,525 60,294 58,031 118,325 -5% Consumer 28,090 39,493 67,583 36,735 31,716 68,451 +1% Electronics Connected 19,719 20,855 40,574 20,548 23,474 44,022 +9% Car Media 6,926 5
Slide 14: Q2 2023 Summary Financial Results
Q2 2023 Summary Financial Results (in thousands, except per share amounts) Q2 2023 GAAP Q2 2023 Non-GAAP3 Revenue 126,872 126,872 Cost of Revenue 1 30,856 29,912 Gross Margin1 96,016 96,960 Adjusted Operating Expense 2 131,198 98,196 Operating Income / (Loss) (35,182) (1,236) Adjusted EBITDA n/a 5,1
Slide 15: Financial Outlook for FY 2023
Financial Outlook for FY 2023 – As of August 9, 2023 Category ($ in millions) GAAP Outlook Non-GAAP Outlook Revenue 510 to 540 510 to 540 Adjusted EBITDA Margin1,2 n/a 6% to 10% 1 See discussion of "Non-GAAP Financial Measures" below. 2 With respect to Adjusted EBITDA Margin, the Company has determi
Slide 16: Reconciliation Tables
Reconciliation Tables
Slide 17: 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 18: 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 loss attributable to the Company: Three Months Ended June 30, 2023 GAAP net loss attributable to the Company $ (38,395) Adjustments to GAAP net loss attributa
Slide 19: 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) Loss per share attributable to the Company: Three Months Ended June 30, 2023 GAAP loss per share attributable to the Company $ (0.90) Adjustments to GAAP lo
Slide 20: Operating Income/(Loss) Reconciliation
Operating Income/(Loss) Reconciliation XPERI INC. GAAP TO NON-GAAP RECONCILIATIONS (in thousands) (unaudited) Three Months Ended June 30, 2023 2022 GAAP operating loss $ (35,182) $ (22,293) Adjustments to GAAP operating loss: Stock-based compensation expense: Cost of revenue, excluding depreciation
Slide 21: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation XPERI INC. GAAP TO NON-GAAP RECONCILIATIONS (in thousands) (unaudited) Three Months Ended June 30, 2023 2022 GAAP loss before taxes $ (34,274) $ (22,583) Interest expense 795 — Depreciation expense 4,202 5,144 Amortization of intangible assets 14,798 14,760 Amortizatio
Slide 22: 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 June 30, 2023 2022 Total operating expenses $ 162,054 $ 148,496 Less: Cost of revenue, excluding depreciation and amortization of in
Slide 23: Thank You
Thank You