Slide 1: Second 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 Second Quarter 2024 Results August 1, 2024
Slide 2: Disclaimers: Forward-Looking Statements
8/1/2024©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: Q2'24 Highlights
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 Q2’24 Highlights
Slide 4: Business Highlights and Q2 Financial Highlights
Business Highlights Other Business Highlights Signed new license agreement with Google Won UK appeal against Lenovo; increased royalty due by $55 million to a total of $240 million Won injunction against Lenovo cellular devices in Germany Increased cumulative value of new contracts to > $2.8
Slide 5: Q2'24 Results
8/1/2024©2024 InterDigital, Inc. All Rights Reserved. 5 Q2’24 Results aNon-GAAP Measure / Please see appendix for GAAP to Non-GAAP reconciliations Revenue +120% Adj. EBITDAa +194% Non-GAAP EPSa +252% $102M $223M $0 $50 $100 $150 $200 $250 Q2'23 Q2'24 $54M $158M $0 $50 $100 $150 $200 $250 $300 Q2'23
Slide 6: Q2'24 Revenue By Program
8/1/2024©2024 InterDigital, Inc. All Rights Reserved. 6 Q2’24 Revenue By Program $89M $199M 0 50 100 150 200 Q2'23 Q2'24 Recurring Catch Up $12M $24M 0 5 10 15 20 25 30 35 40 Q2'23 Q2'24 Recurring Catch Up Smartphone +125% CE, IoT/Auto +91%
Slide 7: Financial Results vs. Outlook
8/1/2024©2024 InterDigital, Inc. All Rights Reserved. 7 Financial Results vs. Outlook Q2’24 Outlook Q2’24 Results Revenue $93M - $97M $223.5M Adjusted EBITDAa $35.5M - $38.0M $157.7M Diluted EPS $0.20 - $0.30 $3.93 Non-GAAP EPSa $0.70 - $0.80 $4.57 a Non-GAAP Measure / Please see appendix for GAAP t
Slide 8: FY24 Q3 and Annual Guidance
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 FY24 Q3 and Annual Guidance
Slide 9: Company Raises Full Year 2024 Guidance
8/1/2024©2024 InterDigital, Inc. All Rights Reserved. 9 Company Raises Full Year 2024 Guidance As of August 1, 2024 Q3’24 Outlook FY24 Current Outlook FY24 Prior Outlook Revenue $94M - $98M $690M - $740M $620M - $670M Adjusted EBITDAa $36M - $39M $378M - $416M $310M - $345M Diluted EPS $0.20 - $0.30
Slide 10: Upcoming Events
Investor Day September 10 / New York City Conferences Bank of America SMID Conference August 6 & 7 / Virtual BWS Conference August 20 / New York City Jefferies Semi, IT Hardware & Communications Technology Summit August 27 / Chicago Evercore Semi, IT Hardware & Networking Conference August 28 / Chic
Slide 11: Background on InterDigital
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 Background on InterDigital As of August 1, 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. 8/1/2024©2024 InterDigital, Inc. All Rights Reserved. 13 $Research & Innovation Patent Portfolio Licensing Product Implementer Technology
Slide 14: Over Five Decades of Wireless & Video Innovation
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 8/1/2024©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 8/1/2024©2024 InterDigital, Inc. All Rights Reserved. 16 JVT Cellular & WiFi Standards Video Standards RAN2 Chair CT Chair SAI Vice Chair PDL Vice Chair ETSI Board Member ISAC ISG Chair RIS ISG Chair Steering Committee Co-chair SA Board of Gove
Slide 17: Recognized Global Innovation Leader
8/1/2024©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 filings)
8/1/2024©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 8/1/2024©2024 Int
Slide 20: InterDigital Ranks Among the Highest in Patent Quality
Average Competitive Impact InterDigital Ranks Among the Highest in Patent Quality for 5G and Video Codec Patents1 8/1/2024©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 8/1/2024©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
8/1/2024©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 > $2.8B of contract value 8/1/2024©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 licen
Slide 24: Revenue Growth
$352M $353M $467M $40M $24M $68M $104M $81M $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 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) 30% growth expected in 2024 at guidan
Slide 25: Strong Financials and Robust 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 Strong Financials and Robust Return of Capital 8/1/2024 25 $319M
Slide 26: Appendix
I N N O V A T I N G T O D A Y E M P O W E R I N G T O M O R R O W Appendix
Slide 27: Non-GAAP Reconciliation
8/1/2024©2024 InterDigital, Inc. All Rights Reserved. 27 Non-GAAP Reconciliation (In millions) 2019 2020 2021 2022 2023 Q2'24 Q2'23 Q2'24 Q2'23 Q3'24 Current Full Year 2024 Prior Full Year 2024 Net income attributable to InterDigital, Inc. 21$ 45$ 55$ 94$ 214$ 110$ 22$ 191$ 127$ $6 - 9 $205 - 238 $1
Slide 28: Non-GAAP Reconciliation (per share data)
8/1/2024©2024 InterDigital, Inc. All Rights Reserved. 28 Non-GAAP Reconciliation (In millions, except per share data) 2019 2020 2021 2022 2023 Q2'24 Q2'23 Q2'24 Q2'23 Q3'24 Current Full Year 2024 Prior Full Year 2024 Net income attributable to InterDigital, Inc. 21$ 45$ 55$ 94$ 214$ 110$ 22$ 191$ 12
Slide 29: Non-GAAP Financial Measures
8/1/2024©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