Slide 1: InterDigital
InterDigital 26th Annual Needham Growth Conference | January 18, 2024
Slide 2: Disclaimers
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, including, without limitation, the matters set forth below. W
Slide 3: We invent the technologies that make life boundless
Large Market Opportunity $650M+ recurring revenue target in device markets. Expanding into greenfield of video streaming and cloud services opportunities Deep Industry Expertise Five decades of pioneering wireless and video innovation. Highest We invent the concentration of inventors technologies Di
Slide 4: 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. ©2024 InterDigital, Inc. All Rights Reserved. 1/17/2024 4
Slide 5: Over Five Decades of Wireless & Video Innovation
Over Five Decades of Wireless & Video Innovation Of our engineers… Pioneering research ~90% integral to the evolution of cellular wireless and video innovation since 1972 hold advanced degrees We reinvest ~half our recurring revenue into research and portfolio ~90% Over half are inventors developmen
Slide 6: Management Team of Industry Veterans
Management Team of Industry Veterans Liren Chen Richard Brezski Eeva Hakoranta Rajesh Pankaj President & CEO EVP, CFO EVP, CLO EVP, CTO Previously SVP, Global More than 20 years at Previously SVP, Head of IP Previously SVP & Head of Head of IP; Qualcomm InterDigital, CFO since and Litigation & GC; N
Slide 7: >100 Leadership Positions in Wireless & Video Standards
>100 Leadership Positions in Wireless & Video Standards Cellular & WiFi Standards RAN2 CT ETSI Board RIS ISG PDL SAI Steering Committee SA Board of AIML TIG Chair Internet WG Chair Vice Chair Member Chair Vice Chair Vice Chair Board Member Governers Vice Chair ISAC ISG Chair Policy & Procedures C/SA
Slide 8: Recognized Global Innovation Leader
Recognized Global Innovation Leader For the 2nd year in a row, LexisNexis recognized InterDigital amongst the World’s 100 Most Innovative Businesses. Innovation Momentum 2023: The Global Top 100, “represents the world’s leading patent owners with the highest innovation momentum.” ©2024 InterDigital,
Slide 9: Increasingly Diverse Patent Portfolio
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 2017 2023 ~19,000 Assets >30,000 Assets Wireless Video Implementation DTV Broadcast & Home Network ©2024 InterDigita
Slide 10: InterDigital Ranks Among the Highest in Patent Quality for 5G and Video Codec Patents
InterDigital Ranks Among the Highest in Patent Quality for 5G and Video Codec Patents1 Average Competitive Impact 5G Patent Holders Video Codec Patent Holders 0 4 8 12 0 2 4 6 8 InterDigital Company #1 Company #1 Company # 2 Company #2 InterDigital Company #3 Company # 4 Company #4 Company # 5 Compa
Slide 11: Our Licensing Principles
We have well-established licensing programs and lead the industry in transparency and fair licensing practices Our We complete the vast majority of our licensing agreements through bilateral negotiations Licensing On the rare occasions we had to enforce our rights in Principles court, our patents ha
Slide 12: Target: $650M ARR; 60% Adj EBITDA Margin
Target: $650M ARR; 60% Adj EBITDA Margin + Additional opportunity from Streaming and Cloud Services MARKETS SMARTPHONES CE, IoT/AUTO STREAMING & CLOUD SERVICES $500M $150M+ Greenfield Opportunity ~$500 Billion TAMb Revenue Per Yeara Revenue Per Yeara PORTFOLIO >30,000 PATENT ASSETS RESEARCH WIRELESS
Slide 13: Recent Progress Toward our Target
Recent Progress Toward our Target Over 30 licenses signed in past 3 years driving > $2.5B of contract value; 2021 2022 2023 2024 #1 Chinese Largest license in #1 Smartphone Smartphone vendor company history vendor a #1 Television Top-10 TV vendor Major CE/IoT License Court wins result in vendor cell
Slide 14: Revenue Growth
Revenue Growth Double-digit growth in both Smartphone and CE, IoT/Auto licensing programs $549M $80M 19% CAGR $458M $425M $104M $359M $68M $319M $24M $40M $468M 15% CAGR $267M $323M $352M $353M 2019 2020 2021 2022 2023E a Smartphone CE, IoT/Auto Other a Based on Preliminary Results published Jan 16,
Slide 15: Revenue Growth and Cost Control drive Expanding Margins
Revenue Growth and Cost Control drive Expanding Margins Revenue15% CAGR Expenses 4% CAGR $549M $425M $458M $319M $359M $354M $329M $281M $304M $307M a 2019 2020 2021 2022 2023E a 2019 2020 2021 2022 2023E Diluted EPS >10X growth Adjusted EBITDAb > 2.5X growth $500M 63% 70% 56% 60% $400M 49% 43% 50%
Slide 16: Increasing Momentum Into 2024
Increasing Momentum Into 2024 $250M $2.75 $105M $1.20 Revenue Diluted EPS Q4 2023 Preliminary Results (published Jan 16, 2024) Q1 2024 Guidance Midpoint (published Jan 16, 2024) ©2024 InterDigital, Inc. All Rights Reserved. 1/17/2024 16
Slide 17: Robust Return of Capital
Robust Return of Capital $378M Cash Returned to Shareholders Dividends Paid Shares Repurchased ~$852M since 2019 $241M Stock Buyback ~$639M in share repurchases since 2019 ~24% net reduction in basic share count $117M Dividends $73M ~$212M in dividends paid since 2019 $43M 14% increase in Sep ‘23 20
Slide 18: We invent the technologies that make life boundless
Large Market Opportunity $650M+ recurring revenue target in device markets. Expanding into greenfield of video streaming and cloud services opportunities Deep Industry Expertise Five decades of pioneering wireless and video innovation. Highest We invent the concentration of inventors technologies Di
Slide 19: Questions?
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Slide 20: Appendix
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Slide 21: Non-GAAP Reconciliations
Non-GAAP Reconciliations For The Year Ended December 31, (In Millions) 2019 2020 2021 2022 2023E a Net income (loss) attributable to InterDigital, Inc. $ 21 $ 45 $ 55 $ 94 $ 209 Add: Net loss attributable to non-controlling interest (6) (7) (13) (2) a (3) Add: Income tax (prov ision) benefit 11 (7)