Slide 1: First Quarter 2024 Results
First Quarter 2024 Results May 2, 2024
Slide 2: Disclaimers: Forward-Looking Statements
5/2/2024©2024 InterDigital, Inc. All Rights Reserved. 2 Disclaimers Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 21E of the Exchange Act. Such statements include information regarding our current beliefs, plans and expectations, inclu
Slide 3: Q1'24 Highlights
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Slide 4: Recent Business Highlights and Q1 Financial Highlights
Recent Business Highlights Other Business Highlights ✓ New landmark CE agreement with Samsung ✓ Completed seven license agreements, increased cumulative value to almost $2.7B over the last three years ✓ Awarded an injunction against Lenovo by a German court ✓ Received positive decisions against Oppo
Slide 5: Q1'24 Results
5/2/2024©2024 InterDigital, Inc. All Rights Reserved. 5 Q1’24 Results aNon-GAAP Measure / Please see appendix for GAAP to Non-GAAP reconciliations Revenue +30% Adj. EBITDAa <16%> Non-GAAP EPSa <15%> $202M $264M $0 $50 $100 $150 $200 $250 $300 Q1'23 Q1'24 $155M $130M $0 $50 $100 $150 $200 $250 $300 Q
Slide 6: Q1'24 Revenue By Program
5/2/2024©2024 InterDigital, Inc. All Rights Reserved. 6 Q1’24 Revenue By Program $186M $80M 0 20 40 60 80 100 120 140 160 180 200 Q1'23 Q1'24 Recurring Catch Up $16M $183M 0 20 40 60 80 100 120 140 160 180 200 Q1'23 Q1'24 Recurring Catch Up Smartphone <57%> CE, IoT/Auto +1,035%
Slide 7: Financial Results vs. Outlook
5/2/2024©2024 InterDigital, Inc. All Rights Reserved. 7 Financial Results vs. Outlook Q1’24 Outlook Q1’24 Results Revenue $245M - $255M $263.5M Adjusted EBITDAa $116M - $131M $130.4M Diluted EPS $2.40 - $2.95 $2.88 Non-GAAP EPSa $3.02 - $3.58 $3.58 a Non-GAAP Measure / Please see appendix for GAAP t
Slide 8: FY24 Q2 and Full Year Guidance
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Slide 9: Company Reaffirms Full Year 2024 Guidance
5/2/2024©2024 InterDigital, Inc. All Rights Reserved. 9 Company Reaffirms Full Year 2024 Guidance As of May 2, 2024 Q2’24 Outlook FY24 Outlook Revenue $93M - $97M $620M - $670M Adjusted EBITDAa $35.5M - $38.0M $310M - $345M Diluted EPS $0.20 - $0.30 $4.95 - $6.15 Non-GAAP EPSa $0.70 - $0.80 $7.45 -
Slide 10: Upcoming Events
Bank of America Global Tech Conference San Francisco William Blair Growth Stock Conference Chicago Annual Shareholder Meeting Virtual IDEAS Investor Conference New York City Roth 10th Annual London Conference London Upcoming Events 5/2/2024©2024 InterDigital, Inc. All Rights Reserved. 10 06/04 06/04
Slide 11: Background on InterDigital
Background on InterDigital As of May 2, 2024
Slide 12: Why IDCC?
Why IDCC? Strong Financial Performance Double-digit revenue growth, exceptional margins, robust return of capital Large Market Opportunity $650M+ recurring revenue target in device markets. Expanding into greenfield of video streaming and cloud services opportunities Licensing Momentum Experienced l
Slide 13: InterDigital Business Model
InterDigital Business Model We are a foundational R&D company. We share our innovation through standard process and monetize our technology through IP licensing. 5/2/2024©2024 InterDigital, Inc. All Rights Reserved. 13 $ Research & Innovation Patent Portfolio Licensing Product Implementer Technology
Slide 14: Pioneering research in wireless and video innovation since 1972
Pioneering research integral to the evolution of cellular wireless and video innovation since 1972 We reinvest ~half our recurring revenue into research and portfolio development Over Five Decades of Wireless & Video Innovation 5/2/2024©2024 InterDigital, Inc. All Rights Reserved. 14 ~Over half of o
Slide 15: Management Team of Industry Veterans
Management Team of Industry Veterans Liren Chen President & CEO Previously SVP, Global Head of IP; Qualcomm Inc. Richard Brezski EVP, CFO More than 20 years at InterDigital, CFO since 2012 Eeva Hakoranta EVP, CLO Previously SVP, Head of IP and Litigation & GC; Nokia Technologies Rajesh Pankaj EVP, C
Slide 16: >100 Leadership Positions in Wireless & Video Standards
>100 Leadership Positions in Wireless & Video Standards 5/2/2024©2024 InterDigital, Inc. All Rights Reserved. 16 JVT Cellular & WiFi Standards Video Standards RAN2 Chair CT Vice Chair SAI Vice Chair PDL Vice Chair ETSI Board Member ISAC ISG Chair RIS ISG Chair Steering Committee Board Member SA Boar
Slide 17: Recognized Global Innovation Leader
5/2/2024©2024 InterDigital, Inc. All Rights Reserved. 17 Recognized Global Innovation Leader For the third year in a row, LexisNexis recognized InterDigital amongst the World’s 100 Most Innovative Businesses. Innovation Momentum 2024: The Global Top 100, “represents the world’s leading patent owners
Slide 18: Recognized Global Innovation Leader: EPO Top 25 Filer
5/2/2024©2024 InterDigital, Inc. All Rights Reserved. 18 Recognized Global Innovation Leader InterDigital was among the top 25 patent filers with the European Patent Office (EPO) in 2023 Innovation momentum drove 40% YoY increase in patent filings with the EPO *Boxes present the proportion of direct
Slide 19: Increasingly Diverse Patent Portfolio
Wireless Video Implementation DTV Broadcast & Home Network 2017 ~19,000 Assets 2023 >30,000 Assets Increasingly Diverse Patent Portfolio Our patent portfolio grew >60% between 2017 & 2023 with the addition of video & DTV related technologies and continuing growth of wireless assets 5/2/2024©2024 Int
Slide 20: Average Competitive Impact: Patent Quality for 5G and Video Codec
Average Competitive Impact InterDigital Ranks Among the Highest in Patent Quality for 5G and Video Codec Patents1 5/2/2024©2024 InterDigital, Inc. All Rights Reserved. 20 0 4 8 12 InterDigital Company #1 Company #2 Company #3 Company #4 Company #5 Company #6 Company #7 Company #8 Company #9 0 2 4 6
Slide 21: Our Licensing Principles
Our Licensing Principles 5/2/2024©2024 InterDigital, Inc. All Rights Reserved. 21 Well-established licensing programs rooted in transparency and fair practices Vast majority of agreements reached through bilateral negotiations Patents repeatedly found to be valid, essential to standards and infringe
Slide 22: Target: $650M ARR; 60% Adj EBITDA Margin
5/2/2024©2024 InterDigital, Inc. All Rights Reserved. 22 Target: $650M ARR; 60% Adj EBITDA Margin + Additional opportunity from Streaming and Cloud Services ARTIFICIAL INTELLIGENCE $500M Revenue Per Yeara $150M+ Greenfield Opportunity ~$500 Billion TAMb SMARTPHONES CE, IoT/AUTO STREAMING & CLOUD SER
Slide 23: Recent Progress Toward our Target
Recent Progress Toward our Target Over 35 licenses signed in past 3 years driving almost $2.7B of contract value 5/2/2024©2024 InterDigital, Inc. All Rights Reserved. 23 2021 a Currently in binding arbitration to set license rate 2024 #1 Chinese Smartphone vendor 2022 2023 Top-10 TV vendor Largest l
Slide 24: Revenue Growth
$352M $353M $467M $264M (Q1 actual) $40M $24M $68M $104M $81M $0 $100 $200 $300 $400 $500 $600 $700 $800 2019 2020 2021 2022 2023 2024 Guidance Smartphone CE, IoT/Auto Other Revenue Growth ✓ Double-digit CAGR in both Smartphone and CE, IoT/Auto licensing programs (’19-’23) ✓ 17% growth expected in 2
Slide 25: Revenue Growth and Opex Leverage Drive Profit, Margins and Return of Capital
$0M $500M $1,000M $1,500M $2,000M 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Dividends Repurchases $131M $155M $208M $255M $345M 41% 43% 49% 56% 63% 0% 10% 20% 30% 40% 50% 60% 70% $0M $100M $200M $300M $400M $500M Revenue Growth and Opex Leverage Drive Profit, Margins and Robus
Slide 26: Appendix
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Slide 27: Non-GAAP Reconciliation
5/2/2024©2024 InterDigital, Inc. All Rights Reserved. 27 Non-GAAP Reconciliation (In millions) 2019 2020 2021 2022 2023 Q1'24 Q1'23 Q1'24 Q2'24 Full Year 2024 Net income attributable to InterDigital, Inc. 21$ 45$ 55$ 94$ 214$ 82$ 105$ $68 - 83 $5.5 - 8.0 $140 - 175 Net loss attributable to non-contr
Slide 28: Non-GAAP Reconciliation (per share data)
5/2/2024©2024 InterDigital, Inc. All Rights Reserved. 28 Non-GAAP Reconciliation (In millions, except per share data) 2019 2020 2021 2022 2023 Q1'24 Q1'23 Q1'24 Q2'24 Full Year 2024 Net income attributable to InterDigital, Inc. 21$ 45$ 55$ 94$ 214$ 82$ 105$ $68 - 83 $5.5 - 8.0 $140 - 175 Share-based
Slide 29: Non-GAAP Financial Measures
5/2/2024©2024 InterDigital, Inc. All Rights Reserved. 29 Non-GAAP Financial Measures Adjusted EBITDA and Adjusted EBITDA margin are supplemental non-GAAP financial measures that InterDigital believes provide investors with important insight into the Company's ongoing business performance. InterDigit