Slide 1: Fourth Quarter 2024 Results
I N N O V A T I N G T O D A Y E M P O W E R I N G T O M O R R O W TM Fourth Quarter 2024 Results February 6, 2025
Slide 2: Disclaimers
2/6/2025©2025 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: Q4'24 Highlights
Q4’24 Highlights 2/6/2025 3©2025 InterDigital, Inc. All Rights Reserved.
Slide 4: Q4 Financial Highlights
2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 4 Q4 Financial Highlights Revenue up 140% y/y to $253 million and Adj. EBITDAa up 272% y/y to $198 million, both above the top end of the outlook Recurring revenue up 13% y/y to $117 million Smartphone recurring revenue up 10% y/y to $95 mi
Slide 5: Q4 Business Highlights
2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 5 Q4 Business Highlights Signed new license agreement with Oppo Renewed license agreement with ZTE Signed a binding arbitration agreement to finalize the terms of a new license with Lenovo Won Fierce Network Innovation Award for AI Reco
Slide 6: License Agreement With OPPO Group
2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 6 License Agreement With OPPO Group Oppo group is one of the largest smartphone manufacturers based in China License covers global sales of Oppo, realme and OnePlus branded mobile devices All pending litigations between the parties has been
Slide 7: Q4'24 Results
2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 7 Q4’24 Results a Non-GAAP Measure / Please see appendix for GAAP to Non-GAAP reconciliations Revenue +140% Adj. EBITDAa +272% Non-GAAP EPSa +265% $106M $253M $0 $50 $100 $150 $200 $250 $300 Q4'23 Q4'24 $53M $198M $0 $50 $100 $150 $200 $250 $300
Slide 8: Q4'24 Revenue By Program
2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 8 Q4’24 Revenue By Program $88M $231M 0 50 100 150 200 250 Q4'23 Q4'24 Recurring Catch Up $17M $22M 0 5 10 15 20 25 30 35 40 45 50 Q4'23 Q4'24 Recurring Catch Up Smartphone +162% CE, IoT/Auto +28%
Slide 9: Financial Results vs. Outlook
2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 9 Financial Results vs. Outlook Q 4 ’ 2 4 R E S U L T S Q 4 ’ 2 4 O U T L O O K * F Y 2 4 R E S U L T S F Y 2 4 O U T L O O K * Revenue $252.8M $239M - $249M $868.5M $855M - $865M Adjusted EBITDAa $198.1M $180M - $190M $551.0M $533M - $543M Dilut
Slide 10: FY24 Highlights
FY24 Highlights 2/6/2025 10©2025 InterDigital, Inc. All Rights Reserved.
Slide 11: FY24 Financial Highlights
2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 11 FY24 Financial Highlights Record revenue of $869 million, up 58% y/y Record adjusted EBITDAa of $551 million, up 60% y/y Record non-GAAP EPSa of $14.97, up 62% y/y Adj. EBITDA margina of 63% CE, IoT/Auto recurring revenue of $89 mill
Slide 12: FY24 Business Highlights
2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 12 FY24 Business Highlights Signed 14 new license agreements with Oppo, Google, ZTE, Samsung TV, TPV and more Increased cumulative value of new contracts to more than $3.3 billion since the start of 2021 Held an Investor Day and announced a
Slide 13: FY24 Results
2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 13 FY24 Results a Non-GAAP Measure / Please see appendix for GAAP to Non-GAAP reconciliations Revenue +58% Adj. EBITDAa +60% Non-GAAP EPSa +62% $550M $869M $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 FY23 FY24 $345M $551M $0 $100 $200
Slide 14: FY24 Revenue By Program
2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 14 FY24 Revenue By Program $467M $598M 0 100 200 300 400 500 600 FY23 FY24 Recurring Catch Up $81M $269M 0 100 200 300 400 500 600 FY23 FY24 Recurring Catch Up Smartphone +28% CE, IoT/Auto +232%
Slide 15: FY25 Guidance
FY25 Guidance 2/6/2025 15©2025 InterDigital, Inc. All Rights Reserved.
Slide 16: FY25 Guidance
2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 16 FY25 Guidance As of February 6, 2025 Q 1 ’ 2 5 O U T L O O K F Y 2 5 O U T L O O K Revenue $112M - $116M $660M - $760M Adjusted EBITDAa $53M - $60M $400M - $495M Diluted EPS $0.58 - $0.79 $6.79 - $9.67 Non-GAAP EPSa $1.19 - $1.42 $9.69 - $12.9
Slide 17: Upcoming Investor Events
Upcoming Investor Events 2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 17 March 17 Roth Conference Dana Point, CA March 19-20 Sidoti Conference Virtual
Slide 18: Background on InterDigital
Background on Interdigital 2/6/2025 18©2025 InterDigital, Inc. All Rights Reserved. As of February 6, 2025
Slide 19: InterDigital: Innovating Today, Empowering Tomorrow
2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 19 Premier Team Essential Technology Development Company Introduction Long-term Growth Strategy Accelerating Business Momentum 01 0304 0205 InterDigital Innovating Today, Empowering Tomorrow
Slide 20: InterDigital Pioneering Wireless, Video and AI Research
©2025 InterDigital, Inc. All Rights Reserved. 20 InterDigital Pioneering Wireless, Video and AI Research 63% Adj. EBITDA Margina TOP CUSTOMERS: ~$1B Cash 2024 F inancial Resul ts $869M Revenue H I G H L I G H T S Driving foundational research in wireless, video & AI since 1972 World-class team Led b
Slide 21: World-Class Leadership Team
World-Class Leadership Team Robert S. Stien Chief Communications & Public Policy Officer Ken Kaskoun Chief Growth Officer Joshua Schmidt Chief Legal Officer Michael Cortino Chief Information Officer Skip Maloney Chief People Officer Rich Brezski CFO Eeva Hakoranta Chief Licensing Officer 2/6/2025 21
Slide 22: Business Model: A Virtuous Cycle of Innovation
Business Model: A Virtuous Cycle of Innovation We are a foundational R&D company. We share our innovation through the standards process and monetize our technology through IP licensing. 2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 22 $ RESEARCH & INNOVATION PATENT PORTFOLIO LICENSING PRODUC
Slide 23: We Focus on Foundational Technologies
We Focus on Foundational Technologies 2/6/2025 23©2025 InterDigital, Inc. All Rights Reserved. W I R E L E S S Cellular wireless - 4G/5G/6G WiFi and wireless local area networks V I D E O Video compression, transport and enhancement Immersive media compression, transport and enhancement A I Using AI
Slide 24: InterDigital Tech Underpins Surging Mobile Traffic
InterDigital Tech Underpins Surging Mobile Traffic 2/6/2025 24 2017 2022 2027 50 100 150 200 250 3000 10.8 EB 90.4 EB 282.8 EB Video Drives Surge in Mobile Data Traffic Estimated global media traffic by application category (in exabytes per month)* * One exabyte equals one million terabytes. Source:
Slide 25: Our Innovations Help Drive Video Codec Evolution
2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 25 Our Innovations Help Drive Video Codec Evolution 4K Movie 130-Minute Run Time (1) http://www.iam-media.com/litigation/what-will-tv-cost-you-putting-price-hevc-licences (2) Approximated based on the result from 3GPP document https://www.3gpp.or
Slide 26: The Power of the Global Standards System
The Power of the Global Standards System 2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 26 C O N S U M E R S A global system of standards helps ensure interoperability I M P L E M E N T E R S Standards like 5G lower barriers to entry for new entrants into a market like smartphones and benefit
Slide 27: InterDigital Drives Standard Development
U N I T I N G P R I N C I P L E S Strong belief in global standards Focus on technology merits and neutral on product implementation decisions S T R O N G L E A D E R S H I P Participate in 100+ standard development organizations (SDO) Hold more than 100 leadership positions in these SDOs B R O A D
Slide 28: We Have Many Standard Development Leadership Positions
JVT 2/6/2025 28 We Have Many Standard Development Leadership Positions Cellular & WiFi Standards Video Standards Sphere of Influence Growing: More than 100 Leadership Positions in Wireless & Video Standards RAN2 Chair SA6 Chair ETSI Board Member ISAC ISG Chair RIS ISG Chair PDL Vice Chair SAI Vice C
Slide 29: Recognized Global Innovation Leader
2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 29 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 30: Innovation Engine Fuels Evergreen IP Portfolio
~19,000 Assets >33,000 Assets Innovation Engine Fuels Evergreen IP Portfolio Our patent portfolio grew > 70% between 2017 & 2024 with the addition of video & DTV related technologies and continuing growth of wireless assets 2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 30 2 0 1 7 : 2 0 2 4 :
Slide 31: Highest in Patent Quality for 5G, Video Codec, and WiFi
Average Competitive Impact InterDigital Ranks Among the Highest in Patent Quality for 5G, Video Codec, and WiFi Patents 2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 31 Video Codec Patent Holders 5G Patent Holders Source: LexisNexis PatentSight Jan 2025, top 10 Patent Asset Index owners 5G =
Slide 32: Accelerating Business Momentum
Accelerating Business Momentum 2/6/2025 32©2025 InterDigital, Inc. All Rights Reserved.
Slide 33: Licensing Success
Licensing Success Over 40 licenses worth > $3.3B closed since the start of 2021 2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 33 2021 2024 #1 Chinese Smartphone vendor 2022 2023 Top-10 TV vendor Largest license in company history Major CE/IoT License 80% of 4G connected car market under lice
Slide 34: Strong Revenue Growth, Margins and Return of Capital
$155M $208M $255M $345M $551M 43% 49% 56% 63% 63% 0% 10% 20% 30% 40% 50% 60% 70% $0M $100M $200M $300M $400M $500M $600M $359M $425M $458M $550M $869M $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 2020 2021 2022 2023 2024 Strong Revenue Growth, Margins and Return of Capital 2/6/2025 34 2020 2021 2
Slide 35: Long-term Growth Strategy
Long-term Growth Strategy 2/6/2025 35©2025 InterDigital, Inc. All Rights Reserved.
Slide 36: Our Technologies Benefit the Economy and the World
2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 36 Our Technologies Benefit the Economy and the World Source: GSMA The Mobile Economy 2024 5.6 billion people globally subscribed to a mobile service, including 4.7 billion who used the mobile internet Mobile technologies and services generate $5
Slide 37: We Address Three Attractive Markets
2/6/2025 37 We Address Three Attractive Markets Sources: Counterpoint Research, OMDIA 1 Includes only value for Consumer Electronics and IoT Devices Market 2025E TAM Key Market Dynamic ’25 – ’28E CAGR Significant Customers CONTENT & CLOUD SERVICES ~$430B High growth with increasing focus on profitab
Slide 38: Clear Pathway to Growth
2/6/2025 38 Clear Pathway to Growth 2024 2030 SMARTPHONE I n c r e a s e p e n e t r a t i o n E n h a n c e v a l u a t i o n d u r i n g r e n e w a l s CE, IOT/AUTO I n c r e a s e p e n e t r a t i o n E x p a n d m a r k e t c o v e r a g e S T R E A M I N G & C L O U D S E R V I C E S G r o w
Slide 39: Strong Runway for Continued Smartphone Growth
~70%~25% ~5% Strong Runway for Continued Smartphone Growth 1.3B global device shipments 2025 Long Tail Primary Opportunity Licensed1 Long Tail 1. Samsung and Lenovo in binding arbitration • Large global market, projected to grow with 3% CAGR 2025-28 • Revenue growth from licensing remaining top OEMs
Slide 40: Good Momentum in CE - Large Opportunity Remains
Good Momentum in CE - Large Opportunity Remains Licensing coverage for PCs and Tablets based on HEVC - e.g. Amazon licensed for WLAN Licensing coverage for TVs based on our DTV patents – e.g. LG licensed for HEVC and VVC Deals with major OEMs such as Apple, Samsung, Lenovo, Sony, LG Licensed % globa
Slide 41: Strong Growth Opportunity in Automotive and IoT
Strong Growth Opportunity in Automotive and IoT Sources: Counterpoint Research, Omdia 2025E 2028E ~60 ~80 2025E 2028E Others Healthcare Enterprise Industrial PoS Smart Meters Asset Tracking ~250 ~350 2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 41 P A S S E N G E R V E H I C L E S H I P M E
Slide 42: SVoD and AVoD Are Our Focus Verticals
2/6/2025 42 SVoD and AVoD Are Our Focus Verticals Source: OMDIA 2025 TAM 2028 TAM TAM CAGR $270 B $160 B $190 B $180 B $170 B $18 B $21 B $5 B $6 B +13% +10% +5% +5% -1% SVoD AVoD GLOBAL PAY-TV VIDEO CONFERENCING CLOUD GAMING ©2025 InterDigital, Inc. All Rights Reserved. $360 B
Slide 43: Capital Allocation Priorities
Capital Allocation Priorities Strong cash flow maintains balance sheet strength, funds organic investment in research, and enables significant share reduction Maintain fortress balance sheet Financial strength is a strategic asset Organic investment in business Reinvest ~50% of recurring revenue int
Slide 44: Target Financial Model for 2030
Target Financial Model for 2030 2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 44 60%+ Powerful Operating Leverage drives Adjusted EBITDA Margina Target $1B+ Annual Recurring Revenue 14%+ Annual Growth Target High Margin Drives Strong Cash Flow $600M+ Adjusted EBITDAa Target Well positioned t
Slide 45: Key Takeaways
2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 45 Key Takeaways World-class leadership and functional teams across the board Accelerating momentum for R&I, standard development, patent portfolio creation and licensing driven by continuing investment and strong execution We have a clear strate
Slide 46: Appendix
Appendix 2/6/2025 46©2025 InterDigital, Inc. All Rights Reserved.
Slide 47: Non-GAAP Financial Measures
Non-GAAP Financial Measures 2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 47 Adjusted EBITDA and Adjusted EBITDA margin are supplemental non-GAAP financial measures that InterDigital believes provide investors with important insight into the Company's ongoing business performance. InterDigit
Slide 48: Non-GAAP Reconciliation
Non-GAAP Reconciliation 2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 48 (In millions) 2020 2021 2022 2023 2024 Q4'24 Q4'23 Q4'24 Full Year 2024 Q1'25 Full Year 2025 Net income attributable to InterDigital, Inc. 45$ 55$ 94$ 214$ 359$ 133$ 39$ $118 - $126 $343 - $351 $19 - $26 $224 - $319 Net
Slide 49: Non-GAAP Reconciliation
Non-GAAP Reconciliation 2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 49 (In millions, except per share data) 2020 2021 2022 2023 2024 Q4'24 Q4'23 Q4'24 Full Year 2024 Q1'25 Full Year 2025 Net income attributable to InterDigital, Inc. 45$ 55$ 94$ 214$ 359$ 133$ 39$ $118 - $126 $343 - $351 $1
Slide 50: Non-GAAP Reconciliation: Cash Flow Data
Non-GAAP Reconciliation 2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 50 Cash Flow Data: Q4 Full Year Net cash provided by operating activities 192$ 272$ Purchases of property and equipment (4) (6) Capitalized patent costs (19) (53) Free cash flow $ 169 $ 213 NOTE: Sums may not equal total d