Slide 1: Q3 2022 Earnings
Better Ideas. Better Entertainment. Q3 2022 Earnings November 9, 2022 1 © 2022 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: Adeia at Nasdaq
Adeia at Nasdaq Adeia Inc. Nasdaq: ADEA Adeia Turns Ideas Into Innovations 3 © 2022 Adeia | All rights reserved.
Slide 4: At-a-Glance
At-a-Glance Leading IP Licensing business with improved visibility, customer diversification and scale 9,500+ patent assets Media portfolio covering Semiconductor portfolio fundamental aspects of the video covering fundamental hybrid experience across all platforms bonding, advanced packaging and pr
Slide 5: Strategy for Success
Strategy for Success Extend Grow Execute Extend the adoption of Adeia’s Grow patent portfolios in size Utilize our diversified IP innovations and the licensing of and relevance through ongoing portfolios to drive new and its intellectual property across investments that are principally improved agre
Slide 6: Q3 2022 Highlights
Q3 2022 Successfully completed spin-off of the product business, positioning ourselves as a leading independent IP licensing company Highlights Signed new multi-year deal with Philo, a leading entertainment focused Pay-TV streaming service Signed a multi-year license renewal with Foxtel, Australia’s
Slide 7: Current Media Addressable Markets
Current U.S. Pay-TV International Pay-TV + Adjacent Market Mkt Size: ~$101B (2021); CAGR -3.1% Mkt Size: ~$61B (2021); CAGR +1.3% Opportunities Media Addressable ~10% Markets Ad-tech ~50% ~50% Current Revenue Contribution ~90% Automotive Potential Revenue Opportunity Gaming OTT Consumer Electronics
Slide 8: Current Semiconductor Addressable Markets
Current Image Sensors* DRAM* Logic* Semiconductor Mkt Size: ~$21B (2020); CAGR +7.2% Mkt Size: ~$94B (2021); CAGR +3.2% Mkt Size: ~$150B (2021); CAGR +7% Addressable ~ 5% ~ 10% Markets ~ 25% ~ 75% ~ 95% ~ 90% Licensed Unlicensed RF Front End* NAND* Logic (Advanced Nodes) Mkt Size: ~$15B (2020); CAGR
Slide 9: IP Platform + Growth Opportunities
IP Platform + Growth Opportunities Growth Opportunities Adjacent Markets New Verticals Large Remaining Significant Growing Unlicensed Industry Trend Addressable Market in International Pay-TV Toward use of hybrid bonding OTT & New Media Operators and advanced processing nodes New Media International
Slide 10: Q3 2022 Results – Combined Company
Q3 2022 Results – Combined Company Category (in millions) Q3 ‘22 GAAP Q3 ‘22 NON-GAAP Revenue $210.9 $210.9 Cost Of Revenue $31.6 $30.4 Operating Expenses $555.6 $127.2 Interest Expense $13.2 $13.2 Other Income (Expense) $0.5 $0.5 Income Tax Expense $0.8 $5.9 Basic Shares Outstanding 104.5 104.5 Dil
Slide 11: Adeia Standalone Non-GAAP Income Statements
Adeia Standalone Non-GAAP Income Statements Category (in millions) Q1 ‘21 Q2 ‘21 Q3 ‘21 Q4 ‘21 Q1 ‘22 Q2 ‘22 Q3 ‘22 Revenue $98.0 $101.8 $101.6 $89.7 $138.5 $107.8 $89.3 Operating Expenses 21.1 20.7 19.9 28.4 24.4 28.4 30.4 Operating Income 76.9 81.1 81.7 61.3 114.2 79.4 58.9 Interest Expense 11.3 1
Slide 12: Q4 2022 Outlook
Q4 2022 Outlook Category (in millions, except tax rate) Q4’22 GAAP Outlook Q4’22 Non-GAAP Outlook Revenue $95 to 110 $95 to 110 Operating Costs and Expenses $70 to 74 $35 to 39 Interest Expense $15 to 17 $15 to 17 Other Income (Expense) ~$0.5 ~$0.5 Tax Rate (14)% 23% Basic Shares Outstanding 106 106
Slide 13: Capital Allocation Strategy
Capital Organic investment Expand IP portfolio through continued innovation Allocation Strategy Strengthening our balance sheet Proactively paydown term loan to manage leverage ratios Disciplined Capital Allocation Strategy Drives Long Term Revenue Growth and Shareholder Value Return of capital to s
Slide 14: Question & Answer
Question & Better Ideas. Better Entertainment. Answer 14 © 2022 Adeia | All rights reserved.
Slide 15: Thank you!
Better Ideas. Better Entertainment. Thank you! 15 © 2022 Adeia | All rights reserved.
Slide 16: Appendix
Better Ideas. Better Entertainment. Appendix 16 © 2022 Adeia | All rights reserved.
Slide 17: 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), this presentation contains non-GAAP financial measures adjusted for either one-time or ongoing non-cash acquired intangibles amortization charge
Slide 18: GAAP to Non-GAAP Net Income Reconciliation
Three Months Ended GAAP to GAAP net loss attributable to the Company September 30, 2022 $ (388,929) Non-GAAP Adjustments to GAAP net loss attributable to the Company: Net Income Stock-based compensation expense: Cost of revenue 778 Reconciliation Research, development and other 5,951 (in thousands,
Slide 19: GAAP to Non-GAAP EPS Reconciliation
GAAP to Diluted earnings per share attributable to the Company: Non-GAAP EPS Three Months Ended September 30, 2022 Reconciliation (unaudited) GAAP diluted loss per share attributable to the Company $ (3.72) Adjustments to GAAP diluted loss per share attributable to the Company: (2) The number of sha
Slide 20: Adeia Standalone GAAP to Non-GAAP Income Before Taxes Reconciliation
Adeia Standalone GAAP to Non-GAAP Income Before Taxes Reconciliation (in thousands) (unaudited) Three Months Ended Three Months Ended Three Months Ended Three Months Ended Three Months Ended Three Months Ended Three Months Ended March 31, 2021 June 30, 2021 September 30, 2021 December 31, 2021 March
Slide 21: GAAP to Non-GAAP Operating Expenses Outlook Reconciliation
GAAP to Non-GAAP Operating Expenses Outlook Reconciliation (in thousands) (unaudited) Three Months Ended December 31, 2022 Low High GAAP operating expenses $ 70.0 $ 74.0 Stock-based compensation expense (3.0) (3.0) Merger, integration and separation-related expense -- SG&A (8.0) (8.0) Amortization e