Xperi Inc. · NYSE:XPER
Xperi — Q4 2022 Earnings Presentation
22 slides from Xperi's earnings presentation, Feb 21, 2023
Slide 1: Q4 and Full Year 2022 Earnings
Q4 and Full Year 2022 Earnings February 21, 2023
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: Mission, Vision, Solutions, Brands
MISSION VISION SOLUTIONS BRANDS WHAT WHY WHERE WHO Xperi invents, Smarter technology = Pay-TV DTS® develops, and delivers Extraordinary experiences Consumer Electronics HD Radio™ technologies that enable Connected Car IMAX® Enhanced1 extraordinary experiences Media Platform TiVo® 1 IMAX Enhanced is
Slide 4: Q4 2022 Highlights
Q4 2022 Highlights Continued execution on Xperi’s long-term growth strategy Fiscal Q4 revenue of $136M represents a 9% increase from the year ago period Full year 2022 revenue of $502M represents a 3% increase from the prior year Continue to execute on strategic priorities in our key growth in
Slide 5: Markets and Product Lines
Markets and Product Lines Growth Solutions Core Solutions Video Over Broadband (IPTV streaming) Search & Discovery Classic Guides Pay-TV Consumer Hardware Subs DTS:X Consumer IMAX Enhanced1 Audio Electronics Imaging DTS AutoStage (in-car infotainment) HD Radio DTS AutoSense (in-cabin monitoring) Mus
Slide 6: We Compete in Four Key Industry Growth Areas
We Compete in Four Key Industry Growth Areas Connected TV Advertising 1 In-Vehicle Infotainment 2 30 40 17.3% 10.4% 25 CAGR $28B CAGR $38B 30 20 $ Billions $ Billions 15 20 $20B 10 $12B Platform Monetization 10 DTS AutoStage 5 Currently ~8% of revenue Currently <1% of revenue 0 0 2021 2026 2021 2027
Slide 7: Connected TV Ad Monetization
Connected TV Ad Monetization For specific ad-supported content, we receive a portion of the ad slots… …which we fill Consumers purchase Consumers connect to with ads through smart TVs powered by the internet and watch programmatic TiVo (w/TiVo OS). ad-supported content. and/or direct sales. $ $ A po
Slide 8: Connected TV Ad Monetization
Connected TV Ad Monetization Third-party research shows the average Connected TV Advertising household views ~20 hours of ad-supported 30 17.3% content per month, with an average of 16 25 CAGR $28B 20 ads per hour $ Billions 15 10 $12B We expect to grow our Powered by TiVo Smart 5 TV footprint to 7M
Slide 9: IPTV – Streaming Video over Broadband
IPTV – Streaming Video over Broadband We offer a best-in-breed, cloud-based Global IPTV entertainment platform to video and broadband service providers 140 17.8% 120 CAGR Our content-agnostic platform provides end- 100 $115B users with a superior engagement experience by aggregating content in a per
Slide 10: Connected Car – Infotainment and Safety Platform
Connected Car – Infotainment and Safety Platform In-Vehicle Infotainment 40 10.4% Significant long-term growth opportunity CAGR $38B 30 $ Billions 20 At FY22 year end, we had more than $300M of $20B committed business, with a growing pipeline 10 of new opportunities 0 2021 2027 HD Radio plus other i
Slide 11: Execution Expected to Drive Meaningful Growth
Execution Expected to Drive Meaningful Growth Connected TV Video over DTS AutoStage Monetization Broadband (IPTV) + DTS AutoSense Today 3 Yrs Today 3 Yrs Today 3 Yrs Active Footprint <1M >7M ~1.2M >2.8M <2M >10M+ 60M >5B 1.4B 5.4B Streaming Hours - - Hours Hours Hours Hours ARPU <$10 $20-$30 ~$30 $4
Slide 12: Q4 2022 Revenue Breakdown
Q4 2022 Revenue Breakdown Market ($ in millions) Q4 2022 Change Y/Y Change Y/Y Pay-TV 66.6 0.4 1% Consumer Electronics 27.2 2.8 11% Connected Car 23.4 1.0 4% Media Platform 18.3 6.6 57% TOTAL 135.5 10.8 9% 12 © 2023 Xperi Inc. All rights reserved.
Slide 13: Full Year Fiscal 2022 Revenue Breakdown
Full Year Fiscal 2022 Revenue Breakdown Market ($ in millions) FY 2022 Change Y/Y Change Y/Y Pay-TV 249.5 (13.5) -5% Consumer Electronics 128.4 28.9 +29% Connected Car 84.2 (4.1) -5% Media Platform 40.2 4.5 +13% TOTAL 502.3 15.8 +3% 13 © 2023 Xperi Inc. All rights reserved.
Slide 14: Q4 2022 Financial Results
Q4 2022 Financial Results ($ in millions, except per share amounts) Q4 2022 GAAP Q4 2022 Non-GAAP Revenue 135.5 135.5 Cost of Revenue 1 37.3 36.6 Gross Margin Percent 73% 73% Adjusted Operating Expense 2 397.3 3 103.7 Operating Income / (Loss) (299.1) (4.7) Adjusted EBITDA N/A 3.6 Earnings/(Loss) pe
Slide 15: Financial Outlook for FY 2023
Financial Outlook for FY 2023 Category ($ in millions) GAAP Outlook Non-GAAP Outlook Revenue 510 to 540 510 to 540 Adjusted EBITDA n/a 6% to 10% See discussion of "Non-GAAP Financial Measures" below 15 © 2023 Xperi Inc. All rights reserved.
Slide 16: Reconciliation Tables
Reconciliation Tables
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), the Company’s presentation contains non-GAAP financial measures adjusted for either one-time or ongoing non- cash acquired intangibles amortizat
Slide 18: GAAP to Non-GAAP Net Income Reconciliation
GAAP to Non-GAAP Net Income Reconciliation XPERI INC. GAAP TO NON-GAAP RECONCILIATIONS (in thousands) (unaudited) Net income attributable to the Company: Three Months Ended December 31, 2022 GAAP net loss attributable to the Company $ (297,030) Adjustments to GAAP net loss attributable to the Compan
Slide 19: GAAP to Non-GAAP EPS Reconciliation
GAAP to Non-GAAP EPS Reconciliation XPERI INC. GAAP TO NON-GAAP RECONCILIATIONS (in thousands, except per share amounts) (unaudited) Diluted earnings per share attributable to the Company: Three Months Ended December 31, 2022 GAAP loss per share attributable to the Company $ (7.06) Adjustments to GA
Slide 20: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation XPERI INC. GAAP TO NON-GAAP RECONCILIATIONS (in thousands) (unaudited) Three Months Ended December 31, 2022 GAAP Loss before taxes $ (296,956) Interest expense 839 Depreciation expense 4,804 Amortization of intangible assets 16,044 Amortization of capitalized cloud com
Slide 21: Adjusted Operating Expense Reconciliation
Adjusted Operating Expense Reconciliation XPERI INC. GAAP TO NON-GAAP RECONCILIATIONS (in thousands) (unaudited) Three Months Ended December 31, 2022 Total Operating Expense $ 434,604 Less: Cost of revenue, excluding depreciation and amortization of intangible assets 37,258 Adjusted Operating Expens
Slide 22: Thank You
Thank You