Slide 1: Q1 2023 Earnings
XPERI. Q1 2023 Earnings May 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 = Pay-TV TiVo® develops, and delivers Extraordinary experiences Consumer Electronics DTS® technologies that enable Connected Car HD Radio™ extraordinary experiences Media Platform IMAX® Enhanced1 1 IMAX Enhanced is
Slide 4: Q1 2023 Financial Highlights
Q1 2023 Financial Highlights Fiscal Q1 revenue of $127M represents 7% growth from the year ago period GAAP Gross Margin and non-GAAP Gross Margin expansion of over 110bps primarily due to revenue shift towards Consumer Electronics GAAP Adjusted Operating Expense1 declined 67% sequentially, non
Slide 5: Markets and Product Lines
Markets and Product Lines Growth Solutions Core Solutions Video Over Broadband (IPTV streaming) Search & Discovery Classic Guides Pay-TV Consumer Hardware Subs DTS:X Consumer IMAX Enhanced1 Audio Electronics Imaging DTS AutoStage (in-car infotainment) HD Radio DTS AutoSense (in-cabin monitoring) Mus
Slide 6: We Compete in Four Key Industry Growth Areas
We Compete in Four Key Industry Growth Areas Connected TV Advertising 1 In-Vehicle Infotainment 2 30 40 17.3% 10.4% 25 CAGR $28B CAGR $38B 30 20 $ Billions $ Billions 15 20 $20B 10 $12B Platform Monetization 10 DTS AutoStage 5 Currently ~8% of revenue Currently <1% of revenue 0 0 2021 2026 2021 2027
Slide 7: Media Platform
Media Platform Signed second top- ten Smart TV OEM to integrate TiVo operating system This customer will ship TVs “Powered by TiVo” initially in Europe in 2024 7 © 2023 Xperi Inc. All rights reserved.
Slide 8: Connected Car
Connected Car Awarded new program with major Japanese automobile manufacturer This global program will integrate DTS AutoStage into vehicles in North America starting later this year, followed by Europe and Asia in 2024 8 © 2023 Xperi Inc. All rights reserved.
Slide 9: Pay-TV
Pay-TV Continued double-digit IPTV subscriber growth, supported by new roll-outs across the Americas Frndly TV, a leading affordable live TV provider for the whole family with 750K+ subscribers, selected TiVo as their personalized content and discovery platform for search, discovery, and recommendat
Slide 10: Consumer Electronics
Consumer Electronics Celebrating 30 years of immersive audio experiences Signed a series of major multi-year license renewals for our DTS Audio and Play-Fi solutions With the rapid expansion of smart homes and connected devices, our CE business is well positioned for the future 10 © 2023 Xperi Inc.
Slide 11: Large Language Models and Perceive technology
Large Language models have spurred discussions regarding widescale deployments and the challenges of scalability Perceive technology specifically targets power, performance, and scalability challenges 11 © 2023 Xperi Inc. All rights reserved.
Slide 12: Q1 2023 Revenue Breakdown
Q1 2023 Revenue Breakdown Y/Y Y/Y Market ($ in thousands) Q1 2022 Q1 2023 Change Change Pay-TV 64,154 60,294 (3,860) -6.0% Consumer 28,091 36,735 8,644 30.8% Electronics Connected Car 19,719 20,548 829 4.2% Media Platform 6,924 9,262 2,338 33.8% TOTAL 118,888 126,839 7,951 6.7% 12 © 2023 Xperi Inc.
Slide 13: Q1 2023 Summary Financial Results
Q1 2023 Summary Financial Results (in thousands, except per share amounts) Q1 2023 GAAP Q1 2023 Non-GAAP Revenue 126,839 126,839 Cost of Revenue 1 27,792 26,963 Adjusted Operating Expense 2 132,648 98,946 Operating Income / (Loss) (33,601) 930 Adjusted EBITDA n/a 6,778 Other Non-Op Income/(Expense)
Slide 14: Financial Outlook for FY 2023 – As of May 9, 2023
Financial Outlook for FY 2023 – As of May 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 determined
Slide 15: Reconciliation Tables
Reconciliation Tables
Slide 16: 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 amortizat
Slide 17: GAAP to Non-GAAP Net Income Reconciliation
GAAP to Non-GAAP Net Income Reconciliation XPERI INC. GAAP TO NON-GAAP RECONCILIATIONS (in thousands, except per share amounts) (unaudited) Net income attributable to the Company: Three Months Ended March 31, 2023 GAAP net loss attributable to the Company $ (32,000) Adjustments to GAAP net loss attr
Slide 18: GAAP to Non-GAAP EPS Reconciliation
GAAP to Non-GAAP EPS Reconciliation XPERI INC. GAAP TO NON-GAAP RECONCILIATIONS (in thousands, except per share amounts) (unaudited) Diluted earnings per share attributable to the Company: Three Months Ended March 31, 2023 GAAP loss per share attributable to the Company $ (0.76) Adjustments to GAAP
Slide 19: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation XPERI INC. GAAP TO NON-GAAP RECONCILIATIONS (in thousands) (unaudited) Three Months Ended March 31, 2023 2022 GAAP loss before taxes $ (33,233) $ (28,411) Interest expense 772 — Depreciation expense 4,093 5,563 Amortization of intangible assets 14,827 14,792 Amortizati
Slide 20: Operating Income/(Loss) Reconciliation
Operating Income/(Loss) Reconciliation XPERI INC. GAAP TO NON-GAAP RECONCILIATIONS (in thousands) (unaudited) Three Months Ended March 31, 2023 2022 GAAP operating loss $ (33,601) $ (28,926) Adjustments to GAAP operating loss: Stock-based compensation expense: Cost of revenue, excluding depreciation
Slide 21: Adjusted Operating Expense Reconciliation
Adjusted Operating Expense Reconciliation XPERI INC. GAAP TO NON-GAAP RECONCILIATIONS (in thousands) (unaudited) Three Months Ended March 31, 2023 2022 Total operating expenses $ 160,440 $ 147,814 Less: Cost of revenue, excluding depreciation and amortization of intangible assets (27,792) (27,407) A
Slide 22: Thank You
Thank You