Slide 1: Q1 2024 Earnings
XPERI. Q1 2024 Earnings May 8, 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: Q1 Financial Highlights
Q1 Financial Highlights ▪ Q1 revenue of $119M, down 6% year over year (Q1 2023 revenue was $127M, including $4.5M from AutoSense and related imaging solutions) ▪ Total GAAP operating expenses, including cost of revenue, decreased 6% year over year primarily due to the AutoSense and related imaging d
Slide 5: 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 6: 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 7: Media Platform
Media Platform Additional Japanese global brand expected to launch smart TVs “Powered by TiVo” across Europe & U.K. prior to UEFA Euro 2024 Argos, a major U.K. retailer, is selling TVs “Powered by TiVo” online and in stores now, under their “Bush” house brand Vestel is now shipping TVs “Powered by T
Slide 8: Connected Car
Connected Car HD Radio adoption has steadily expanded to 58% of all cars produced for North America Hyundai and Genesis have made HD Radio standard across North American models DTS AutoStage now deployed in more than six million vehicles worldwide AutoStage Video Service, Powered by TiVo, now deploy
Slide 9: Pay TV
Pay TV Ended Q1 2024 with over 2M Video-over-Broadband (IPTV) subscriber households, continuing the trend of consecutive quarters of double-digit subscriber growth Expanded TiVo Broadband with the signing of three new operators in the quarter – Midco, Bluepeak, and Buckeye Broadband 9 © 2024 Xperi I
Slide 10: Consumer Electronics
Consumer Electronics Disney+ announced “Queen Rock Montreal” and 18 fan-favorite Marvel films will be available for streaming in the IMAX® Enhanced1 format with DTS:X immersive sound Completed several DTS:X license renewals with major U.S. consumer electronics manufacturers, including TCL, Hisense,
Slide 11: Strategic review with Centerview Partners is progressing
The Company’s strategic review, with the assistance of Centerview Partners, is progressing and expected to be completed by the end of summer Perceive continues to generate revenue, has significantly reduced its cash burn, and remains on track to deliver technology to a big tech partner for commercia
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 with a
Slide 13: Q1 2024 Revenue Breakdown
Q1 2024 Revenue Breakdown Y/Y Excl. Y/Y % Excl. AutoSense/ AutoSense/ Market Y/Y Y/Y % Q1 2023 Q1 2024 Imaging Imaging ($ in thousands) Change Change from Q1 from Q1 2023 2023 Pay TV 60,294 56,806 (3,488) -6% (3,488) -6% Consumer 36,735 26,128 (10,607) -29% (6,934) -21% Electronics Connected Car 20,
Slide 14: Q1 2024 Summary Financial Results
Q1 2024 Summary Financial Results ($ in thousands, except per share amounts) Q1 2024 GAAP Q1 2024 Non-GAAP3 Revenue 118,844 118,844 Cost of revenue1 29,756 28,528 Adjusted operating expense2 121,415 91,187 Operating income/(loss) (32,327) (871) Adjusted EBITDA n/a 5,405 Other non-op expense/(income)
Slide 15: Financial Outlook for FY 2024
Financial Outlook for FY 2024 The Company reaffirms its fiscal 2024 outlook ranges as of May 8, 2024: 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 Non-GAAP Ta
Slide 16: 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 16 © 2023 Xperi. All rights reserved.
Slide 17: Q&A
Q&A
Slide 18: Thank You
Thank You
Slide 19: Reconciliation Tables
Reconciliation Tables
Slide 20: 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 21: 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) Three Months Ended March 31, (unaudited) 2024 2023 GAAP net loss attributable to the Company $ (13,120) $ (32,000) Adjustments to GAAP net loss attributable to the C
Slide 22: 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) Net (loss) income per share attributable to the Company: Three Months Ended March 31, 2024 2023 GAAP net loss per share attributable to the Company
Slide 23: Operating (Loss) Income Reconciliation
Operating (Loss) Income Reconciliation XPERI INC. GAAP TO NON-GAAP RECONCILIATIONS (in thousands) (unaudited) Three Months Ended March 31, 2024 2023 GAAP operating loss $ (32,327) $ (33,601) Adjustments to GAAP operating loss: Stock-based compensation 14,757 15,968 Amortization of intangible assets
Slide 24: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation XPERI INC. GAAP TO NON-GAAP RECONCILIATIONS (in thousands) (unaudited) Three Months Ended March 31, 2024 2023 GAAP net loss $ (13,371) $ (32,939) Adjustments to GAAP net loss: Interest expense 851 772 Provision for (benefit from) income taxes 4,272 (294) Stock-based co
Slide 25: 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 March 31, 2024 2023 Total operating expenses $ 151,171 $ 160,440 Less: Cost of revenue, excluding depreciation and amortization of i