Xperi Inc. · NYSE:XPER
Xperi — Q2 2024 Earnings Presentation
27 slides from Xperi's earnings presentation, Aug 5, 2024
Slide 1: Q2 2024 Earnings
Q2 2024 Earnings August 5, 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: Q2 Financial Highlights
Q2 Financial Highlights ▪ Q2 revenue of $120M, down 6% year over year (Q2 2023 revenue was $127M, including $4.5M from AutoSense and related imaging solutions) ▪ Total GAAP operating expenses, including cost of revenue, decreased 13% year over year primarily due to the AutoSense and related imaging
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 Signed seventh TiVo OS partner, a Top 5 supplier of Smart TVs into the U.S. market, with plans to launch TVs “Powered by TiVo” in the U.S. in spring of 2025 Smart TVs “Powered by TiVo” now in 15 European countries, under 17 different brands TiVo OS production volumes increasing and da
Slide 8: Connected Car
Connected Car Awarded multi-year program with Asia-based Tier 1 auto supplier to integrate DTS codec into cars HD Radio penetration continues to increase and is being deployed in additional models from Ford, GM, Audi, Volvo, Acura, Mazda, and Lotus DTS AutoStage now deployed in more than seven milli
Slide 9: Pay TV
Pay TV Ended Q1 2024 with over 2.25M 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 – Service Electric Cablevision, HTC, and Eastlink Classic Guides rene
Slide 10: Consumer Electronics
Consumer Electronics Signed multiple license agreements with HP, Inc. to integrate DTS:X decoder into additional laptops/PCs, and expand our Headphone:X solution in HP’s HyperX brand Signed license agreement with Tencent Music Entertainment to provide encoded content and post-processing technology t
Slide 11: Perceive update and strategic review
Perceive, our subsidiary focused on edge inference hardware and software technologies, remains on track to deliver technology to a big tech partner The Company's strategic review of Perceive continues to progress 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 with a
Slide 13: Q2 2024 Revenue Breakdown
Q2 2024 Revenue Breakdown Y/Y Excl. Y/Y % Excl. AutoSense/ AutoSense/ Market Y/Y Y/Y % Q2 2023 Q2 2024 Imaging Imaging ($ in thousands) Change Change from Q2 from Q2 2023 2023 Pay TV 58,031 60,752 2,721 +5% 2,721 +5% - Core Pay TV1 44,940 41,768 (3,172) -7% (3,172) -7% - IPTV 13,091 18,984 5,893 +45
Slide 14: 1H 2024 Revenue Breakdown
1H 2024 Revenue Breakdown Y/Y Excl. Y/Y % Excl. AutoSense/ AutoSense/ Market Y/Y Y/Y % 1H 2023 1H 2024 Imaging Imaging ($ in thousands) Change Change from 1H from 1H 2023 2023 Pay TV 118,325 117,558 (767) -1% (767) -1% - Core Pay TV1 92,137 80,410 (11,727) -13% (11,727) -13% - IPTV 26,188 37,148 10,
Slide 15: Q2 2024 Summary Financial Results
Q2 2024 Summary Financial Results ($ in thousands, except per share amounts) Q2 2024 GAAP Q2 2024 Non-GAAP3 Revenue 119,591 119,591 Cost of revenue1 28,953 28,051 Adjusted operating expense2 112,545 83,206 Operating income/(loss) (21,907) 8,334 Adjusted EBITDA n/a 14,618 Other non-op expense/(income
Slide 16: Financial Outlook for FY 2024 – as of August 5, 2024
Financial Outlook for FY 2024 – as of August 5, 2024 The Company makes no change to the outlook ranges previously provided Category GAAP Outlook Non-GAAP Outlook Revenue ($ in millions) $500 to $530 $500 to $530 Adjusted EBITDA Margin1, 2 n/a 12% to 14% Additional Information Operating Cash Flow $20
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 adjusted for either one-time or ongoing non- cash acquired intangibles amortiz
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) Net income (loss) attributable to the Company: Three Months Ended June 30, 2024 2023 GAAP net loss attributable to the Company $ (30,299) $ (38,395) Adju
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) Net income (loss) per share attributable to the Company: Three Months Ended June 30, 2024 2023 GAAP net loss per share attributable to the Company
Slide 24: Operating (Loss) Income Reconciliation
Operating (Loss) Income Reconciliation XPERI INC. GAAP TO NON-GAAP RECONCILIATIONS (in thousands) (unaudited) Three Months Ended June 30, 2024 2023 GAAP operating loss $ (21,907) $ (35,182) Adjustments to GAAP operating loss: Stock-based compensation 15,303 18,091 Amortization of intangible assets 1
Slide 25: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation XPERI INC. GAAP TO NON-GAAP RECONCILIATIONS (in thousands) (unaudited) Three Months Ended June 30, 2024 2023 GAAP net loss $ (30,631) $ (39,364) Adjustments to GAAP net loss: Interest expense 925 795 Provision for income taxes 9,266 5,090 Stock-based compensation 15,30
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 June 30, 2024 2023 Total operating expenses $ 141,498 $ 162,054 Less: Cost of revenue, excluding depreciation and amortization of in
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 ($ in thousands) Pay TV 60,294 58,031 60,319 66,064 56,806 60,752 - Core Pay TV1 47,197 44,940 43,155 49,391 38,642 41,768 - IPTV 13,097 13,091 17,164 16,673 18,164 18,984 1 Includes Classic Guides, Discovery (s