Slide 1: Q4 & FY 2022 Earnings
Better Ideas. Better Entertainment. Q4 & FY 2022 Earnings February 22, 2023 1 © 2023 Adeia | Confidential. Do not distribute.
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: At-a-Glance
At-a-Glance Leading IP Licensing business with improved visibility, customer diversification and scale 9,750+ patent assets Media portfolio covering Semiconductor portfolio fundamental aspects of the video covering fundamental hybrid experience across all platforms bonding and advanced processing te
Slide 4: Q4 2022 Highlights
Q4 2022 Successfully completed first full quarter as an independent innovation and IP Highlights licensing company Closed 10 renewals and new license agreements covering multiple verticals including consumer electronics, Pay-TV, social media and semiconductors Exceeded midpoint of revenue guidance.
Slide 5: Deal Momentum
Samsung signed a long-term license renewal to the Company’s Deal media portfolio for its Smart TVs and related offerings Momentum Altice signed an early renewal to extend their license, which supports their Optimum services Two leading social media companies signed multi-year license agreements to t
Slide 6: Horizontal Technology Approach
Horizontal Technology Approach Semi Advanced Node Hybrid Bonding Core Coding Networking Security Technology Computer Vision Natural Language Sensing Blocks Machine Learning Processing (NLP) User Interface Authentication Interactivity Rendering Cameras Navigation Search Applications Content Delivery
Slide 7: Measure of Success in 2023
Increase Long-Term Baseline Revenue Measure Continue to execute renewals and new customer agreements that will increase our annual baseline revenue over the long-term of Success in 2023 IP Portfolio Generation Increase patent portfolio 10% year over year with increased internal R&D and strategic acq
Slide 8: Q4 2022 Results
Q4 2022 Results Category (in millions) Q4 ‘22 GAAP Q4 ‘22 NON-GAAP Revenue $103.3 $103.3 Operating expenses $70.0 $28.8 Interest expense $15.0 $15.0 Other income $0.4 $1.2 Income tax expense (benefit) $(55.1) $14.0 Net income $73.8 $46.7 Adjusted EBITDA N/A $74.9 Diluted shares outstanding 113.4 113
Slide 9: FY 2022 Results
FY 2022 Results Category (in millions) FY ‘22 GAAP FY ‘22 NON-GAAP Revenue $438.9 $438.9 Operating expenses $285.9 $112.0 Interest expense $45.3 $45.3 Other income $2.0 $2.8 Income tax expense (benefit) $(28.6) $65.3 Income from continuing operations $138.4 $219.1 Loss from discontinued operations $
Slide 10: Quarterly Non-GAAP Income Statements
Quarterly Non-GAAP Income Statements Category Q1 ‘21 Q2 ‘21 Q3 ‘21 Q4 ‘21 Q1 ‘22 Q2 ‘22 Q3 ‘22 Q4 ‘22 (in millions) Revenue $98.0 $101.8 $101.6 $89.7 $138.5 $107.8 $89.3 $103.3 Operating expenses 21.1 20.7 19.9 28.4 24.4 28.4 30.4 28.8 Operating income 76.9 81.1 81.7 61.3 114.1 79.4 58.9 74.5 Intere
Slide 11: FY 2023 Outlook
FY 2023 Outlook Category (in millions, except tax rate) FY ’23 GAAP Outlook FY ’23 Non-GAAP Outlook Revenue $385.0 – 415.0 $385.0 – 415.0 Operating expenses $253.0 – 267.0 $135.0 – 145.0 Interest expense $64.0 – 67.0 $64.0 – 67.0 Other income (expense) $2.5 - 3.0 $2.5 - 3.0 Tax rate 23% - 25% 23% Ne
Slide 12: Value Proposition
Value Proposition Foundation Driven by Ongoing Innovation Focused Capital Strong Portfolios and and Capitalization of Allocation to Maximize Technology Offerings Market Trends Drive Shareholder Value Growth 9,750+ patents provide both Focused investments in depth and breadth to our Ongoing innovatio
Slide 13: Question & Answer
Question & Better Ideas. Better Entertainment. Answer 13 © 2023 Adeia | All rights reserved.
Slide 14: Thank you!
Better Ideas. Better Entertainment. Thank you! 14 © 2023 Adeia | All rights reserved.
Slide 15: Appendix
Better Ideas. Better Entertainment. Appendix 15 © 2023 Adeia | All rights reserved.
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, where applicable, for either one-time or ongoing non-cash acquired int
Slide 17: GAAP to Non-GAAP Net Income Reconciliation
GAAP to Non-GAAP Net Income Reconciliation (unaudited) Category (in millions) Q4 ‘22 FY ‘22 GAAP net income from continuing operations $73.8 $138.4 Adjustments to GAAP net income from continuing operations: Stock-based compensation expense: Research and development 0.4 1.6 Selling, general and admin
Slide 18: GAAP to Non-GAAP Diluted Income per Share Reconciliation
GAAP to Non-GAAP Diluted Income per Share Reconciliation (unaudited) Category (in millions) Q4 ‘22 FY ‘22 GAAP diluted income per share from continuing operations $0.65 $1.29 Adjustments to GAAP diluted income per share from continuing operations: Stock-based compensation expense: Research and devel
Slide 19: GAAP Net Income to Adjusted EBITDA Reconciliation
GAAP Net Income to Adjusted EBITDA Reconciliation (unaudited) Category (in millions) Q4 ‘22 GAAP net income from continuing operations $73.8 Adjustments to GAAP net income from continuing operations: Stock-based compensation expense: Research and development 0.4 Selling, general and administrative (
Slide 20: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations (unaudited) Category (in millions) Q1 ‘21 Q2 ‘21 Q3 ‘21 Q4 ‘21 Q1 ‘22 Q2 ‘22 Q3 ‘22 Q4 ‘22 GAAP income (loss) before taxes attributable to the Company $ 0.5 $ (4.7) $ (3.7) $ (22.6) $ 45.5 $ 15.7 $ (389.0) $ 73.7 Adjustments to GAAP income (loss) before taxes
Slide 21: GAAP to Non-GAAP Operating Expenses Outlook Reconciliation
GAAP to Non-GAAP Operating Expenses Outlook Reconciliation (unaudited) Category 2023 (in millions) Low High GAAP operating expenses $253.0 $267.0 Amortization expense 95.0 95.0 Stock-based compensation expense 14.0 16.0 Separation and related costs 9.0 11.0 Non-GAAP operating expenses $135.0 $145.0
Slide 22: GAAP to Non-GAAP Net Income Outlook Reconciliation
GAAP to Non-GAAP Net Income Outlook Reconciliation (unaudited) Category 2023 (in millions) Low High GAAP net income $52.5 $64.0 Amortization expense 95.0 95.0 Stock-based compensation expense 14.0 16.0 Separation and related costs 9.0 11.0 Non-GAAP tax adjustment (25.5) (27.0) Non-GAAP net income $1
Slide 23: Adjusted EBITDA Outlook Reconciliation
Adjusted EBITDA Outlook Reconciliation (unaudited) Category 2023 (in millions) Low High GAAP net income $52.5 $64.0 Stock-based compensation expense 14.0 16.0 Separation and related costs 9.0 11.0 Amortization expense 95.0 95.0 Depreciation expense 2.3 2.3 Interest expense 64.0 67.0 Other income (2.